-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Foq3lJvvPGP1p5h1z7O7kGfxGBI7uqsK/2T+NNi1MTE8mEekqhCKrhRZpAO7eRd1 DqXtzyC11hFeLvXsdPgxig== 0000912057-97-017192.txt : 19970514 0000912057-97-017192.hdr.sgml : 19970514 ACCESSION NUMBER: 0000912057-97-017192 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970513 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOMINGUEZ SERVICES CORP CENTRAL INDEX KEY: 0000860673 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] IRS NUMBER: 330391161 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-18677 FILM NUMBER: 97602193 BUSINESS ADDRESS: STREET 1: 21718 S ALAMEDA STREET CITY: LONG BEACH STATE: CA ZIP: 90810 BUSINESS PHONE: 3108342625 MAIL ADDRESS: STREET 2: 21718 SOUTH ALAMEDA ST CITY: LONG BEACH STATE: CA ZIP: 90810 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------------------- F O R M 10 - Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 ------------------------------------------- MARCH 31, 1997 For Quarter Ended . . . . . . . . . . . . . . . . . . . . . on file No. 0-18677 DOMINGUEZ SERVICES CORPORATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Exact name of registrant as specified in its charter) CALIFORNIA 33-0391161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (State of other jurisdiction (I.R.S. Employer incorporation or organization) Identification No.) 21718 SOUTH ALAMEDA STREET, LONG BEACH, CALIFORNIA 90810 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Address of principal executive offices) (Zip Code) (310) 834-2625 Registrant's telephone number, including area code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. YES X . NO . --------- --------- (APPLICABLE ONLY TO CORPORATE ISSUERS): Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. Common stock (one class) - 1,004,370 DOMINGUEZ SERVICES CORPORATION INDEX ----- PAGE NO. -------- PART I - FINANCIAL INFORMATION Item 1. Financial Statements (a) Consolidated Income Statement for the 3 Three Months Ending March 31, 1997 and 1996 (b) Consolidated Income Statement for the 4 Twelve Months Ending March 31, 1997 and 1996 (c) Consolidated Balance Sheet as of 5 March 31, 1997 and Consolidated Balance Sheet as of December 31, 1996 (d) Consolidated Statements of Cash Flows 6 for the Three Months Ended March 31, 1997 and 1996 (e) Capitalization and Stockholders' Equity 7 as of March 31, 1997 (f) Notes to Consolidated Financial 8 Statements Item 2. Management's Discussion and Analysis of 8-9 Financial Condition and Results of Operation PART II - OTHER INFORMATION Item 1. Legal Proceedings 10 Item 6. Exhibits and Reports on Form 8-K 10 Signature 10 2 PART 1 - FINANCIAL INFORMATION Item 1. Financial Statements Company or group of companies for which report is filed: Dominguez Services Corporation, Dominguez Water Company, Antelope Valley Water Company, Kern River Valley Water Company (Consolidating Kernville Domestic Water Co. and Arden Water Co.) and DSC Investments. (a) Consolidated Income Statement (Unaudited) - Fiscal Quarter ending: For the For the Quarter Ending Quarter Ending March 31, 1997 March 31, 1996 -------------- -------------- Operating revenue $5,168,027 $5,225,268 Costs and expenses Operating expenses 4,580,072 4,692,437 Interest expenses 185,137 172,024 Other expenses, net 7,187 5,960 Total costs and expenses 4,772,396 4,870,421 Income from operations 395,631 354,847 Other income 77,103 96,974 Income before taxes on income 472,734 451,821 Provision for taxes on income 189,770 181,352 Net income $282,964 $270,469 Less preferred dividends --0-- 1,219 Net income applicable to common shares $282,964 $269,250 Earnings per common share $0.28 $0.27 Dividends per common share $0.325 $0.31 Average common shares outstanding 1,004,370 1,004,370 See accompanying notes to financial statements. 3 (b) Consolidated Income Statement (Unaudited) - Twelve Months Ending: For the Twelve For the Twelve Months Ending Months Ending March 31, 1997 March 31, 1996 -------------- -------------- Operating revenue $24,647,545 $25,690,049 Costs and expenses Operating expenses 21,080,642 22,055,526 Interest expenses 672,377 678,334 Other expenses, net 33,889 10,650 Total costs and expenses 21,786,908 22,744,510 Income from operations 2,860,637 2,945,539 Other income 455,543 247,823 Income before taxes on income 3,316,180 3,193,362 Provision for taxes on income 1,322,387 1,202,888 Net income $1,993,793 $1,990,474 Less preferred dividends --0-- 4,876 Net income applicable to common shares $1,993,793 $1,985,598 Earnings per common share $1.98 $1.98 Dividends per common share $1.255 $1.18 Average common shares outstanding 1,004,370 1,004,370 See accompanying notes to financial statements. 4 (d) Consolidated Balance Sheet (Unaudited) As of As of March 31, 1997 December 31, 1996 -------------- ----------------- ASSETS Plant and equipment $59,642,560 $59,652,271 Depreciation allowance (21,504,376) (21,079,569) Construction work in progress 909,952 427,280 ----------- ----------- Net utility plant 39,048,136 38,999,982 Non-utility property 569,865 530,461 Current and accrued assets 5,906,257 5,004,365 Deferred debits 2,328,304 2,339,991 ----------- ----------- $47,852,562 $46,874,799 ----------- ----------- ----------- ----------- LIABILITIES Capital stock: Class A preferred - par value $25 per share No outstanding shares in 1997 $--0-- $--0-- and 1996 Common - par value $1 per share Outstanding 1,004,370 shares 1,004,370 1,004,370 Surplus: Capital surplus 2,507,502 2,507,502 Earnings retained in business 12,071,171 12,114,573 ----------- ----------- Total capital 15,583,043 15,626,445 ----------- ----------- Long-term debt: First mortgage bonds 5,212,000 5,212,000 Other notes 1,835,474 1,838,637 ----------- ----------- Total long-term debt 7,047,474 7,050,637 ----------- ----------- Interim debt 1,500,000 800,000 Current portion long-term debt 834,000 834,000 Current and accrued liabilities 4,529,721 4,303,365 Deferred taxes 3,946,134 3,903,699 Advances for construction 5,407,964 5,405,329 Contribution in aid of construction 6,029,989 6,075,881 Deferred credits 2,974,237 2,875,443 ----------- ----------- $47,852,562 $46,874,799 ----------- ----------- ----------- ----------- See accompanying notes to financial statements. 5 (e) Consolidated Statements of Cash Flow (Unaudited) For the For the Quarter Ending Quarter Ending March 31, 1997 March 31, 1996 -------------- -------------- Cash Flow from Operating Activities: Net income $282,964 $270,469 Adjustments to reconcile net income to net cash provided by operation activities: Depreciation and amortization 380,948 354,063 Deferred income tax and ITC 42,435 22,435 Change in assets and liabilities: Customers receivable (113,884) 336,631 Other receivable (463,106) 690,070 Materials and supplies --0-- 8,447 Accounts payable (42,139) (590,658) Income taxes payable 119,493 238,210 Deferred credits 107,186 102,170 Other 177,689 49,732 ----------- ---------- Net Cash Provided by Operating Activities 491,586 1,481,569 ----------- ---------- Cash Flows from Investing Activities: Capital expenditures (472,969) (973,643) ----------- ---------- Net Cash used for Investing Activities (472,969) (973,643) ----------- ---------- Cash Flows from Financing Activities: Proceeds from contributions in aid of construction & advances 3,897 257,853 Repayment of long-term debt (3,163) (5,134) Dividends paid (326,421) (312,574) Preferred stock redemption --0-- (78,225) Proceeds from interim debt 700,000 --0-- ----------- ---------- Net Cash Used by Financing Activities 374,313 (138,080) ----------- ---------- Net Increase in Cash $392,930 $369,846 Cash at Beginning of Year 708,817 751,606 ----------- ---------- Cash at End of Year $1,101,747 $1,121,452 ----------- ---------- ----------- ---------- See accompanying notes to financial statements. 6 (f) Capitalization and Stockholders' Equity (Unaudited) As of March 31, 1997 -------------- Debt: Long-term debt $7,881,474 Current sinking fund requirements (834,000) ---------- Total debt maturing in more than twelve months $7,047,474 ---------- ---------- Deferred credits $2,974,237 ---------- ---------- Stockholder's equity: Shares issued or outstanding Amount ----------- ------ Common stock $1 par value 1,004,370 $1,004,370 Capital in excess of par value 2,507,502 Retained earnings: Balance at beginning of current fiscal year $12,114,628 Net income 282,964 Cash dividends: Common stock @ $0.325 (326,421) --------- Balance at end of interim period 12,071,171 ----------- Total stockholder's equity $15,583,043 ----------- ----------- See accompanying notes to financial statements. 7 (g) Notes to Consolidated Financial Statements (Unaudited) 1. In the opinion of management, information furnished herein reflects adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation. For the quarter ended March 31, 1997, earnings per share were $0.28, compared to $0.27 in the first quarter in 1996. Revenues for the quarter ended March 31, 1997 were $5,168,027 and net income was $282,964, compared to revenues of $5,225,268 and net income of $270,469 for the same period last year. For the twelve months ended March 31,1997, earnings per share were $1.98, compared to $1.98 for the same period in 1996. Revenues for the twelve months ended March 31, 1997 were $24,647,545 and net income was $1,993,793, compared to revenues of $25,690,049 and net income of $1,990,474 for the same period last year. The decline in sales was partially offset by higher rates in the South Bay, where Dominguez increased charges by approximately 1.6 percent to recover higher costs charged by our wholesale supplier. However, the water bills of Dominguez residential customers are still lower than those charged by other leading Southern California water utilities, according to industry data, which is an indication of our efficient operations and rigorous cost discipline. Water brokering income declined but was offset by the increase of income from Chemical Services Company. WATER QUALITY As previously reported, the federal Safe Drinking Water Act (SDWA) was re-authorized in 1996. Under the SDWA, the Company is subject to regulation by the United States Environmental Protection Agency (EPA) and the California Department of Health Services. The Company is required to complete monthly water sampling in a data acquisition program known as the Information Collection Rule (ICR). During the quarter, the Company determined that one of its Subsidiary water systems sources exceeded the state and federal standard for radioactivity. The Company has ceased using this water source and is providing customers with an alternative source. WATER SUPPLY 8 As of March 1997, the water supply outlook is favorable. California State Water Project (SWP) reservoirs remain full. MWD also indicates that a full compliment of Colorado River Water is available. Dominguez expects an ample supply of import water to be at hand for 1997. Dominguez anticipates that the West Basin Municipal Water District Recycle Project will be delivering recycled water to a limited number of South Bay customers in 1997. Dominguez' margins will remain equal to that of replaced potable sales. DIVIDEND INCREASED The Board of Directors has declared the Company's 137th consecutive quarterly dividend at $0.325 per share on common stock to be paid on June 15, 1997. 9 PART II - OTHER INFORMATION Item 1. LEGAL PROCEEDINGS - No legal proceedings have been filed against the registrant that have not been previously reported. Item 6. OTHER An 8-K report was not required for either. 1. Material unusual charges or credits to income during the most recently completed fiscal quarter, or 2. A change in independent accountants during the period. The information furnished reflects all adjustments which, in the opinion of management, are necessary to the fair statement of the results of the interim periods. DOMINGUEZ SERVICES CORPORATION Date:____________________________ By:_______________________________ John S. Tootle CFO, Vice-President Finance 10 EX-27 2 FDS
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDING MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 1,101,747 0 2,956,250 (304,181) 46,385 5,906,257 60,552,512 21,504,376 47,852,562 6,863,721 5,212,000 0 0 1,004,370 14,578,673 47,852,562 4,844,457 5,168,027 2,226,882 4,172,624 0 46,480 185,137 472,734 189,770 282,964 0 0 0 282,964 0.28 0.28
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