-----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, Pg5q+g3nCS54Tc3jDd7UTbu2tpu20otfjLIVfz/Be0XulTzvrRqM2Nxl5k7+QfqK muHWh7g8e3nWH4mTN0ttUA== 0000092416-98-000016.txt : 19980430 0000092416-98-000016.hdr.sgml : 19980430 ACCESSION NUMBER: 0000092416-98-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980429 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980429 SROS: NYSE SROS: PCX FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWEST GAS CORP CENTRAL INDEX KEY: 0000092416 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 880085720 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07850 FILM NUMBER: 98604603 BUSINESS ADDRESS: STREET 1: 5241 SPRING MOUNTAIN RD STREET 2: PO BOX 98510 CITY: LAS VEGAS STATE: NV ZIP: 89193-8510 BUSINESS PHONE: 7028767237 MAIL ADDRESS: STREET 1: 5241 SPRING MOUNTAIN RD STREET 2: PO BOX 98510 CITY: LAS VEGAS STATE: NV ZIP: 89193 8-K 1 FORM 8-K CURRENT REPORT - ------------------------------------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 29, 1998 SOUTHWEST GAS CORPORATION (Exact name of registrant as specified in its charter) California 1-7850 88-0085720 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification No.) 5241 Spring Mountain Road Post Office Box 98510 Las Vegas, Nevada 89193-8510 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (702) 876-7237 - ------------------------------------------------------------------------------ ITEM 5. OTHER EVENTS On April 29, 1998, Southwest Gas Corporation (the Company) released summary financial information to the general public, including the investment community, regarding the Company's operating performance and financial position for the quarter ended March 31, 1998. The financial information released is included herein. This information is summary in nature and should not be considered complete financial statements. ITEM 7. EXHIBITS 99 Financial Analyst Report -- First Quarter 1998 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SOUTHWEST GAS CORPORATION Date: April 29, 1998 /s/ EDWARD A. JANOV ----------------------------- Edward A. Janov Vice President/Controller and Chief Accounting Officer PAGE EX-99 2 FINANCIAL ANALYST REPORT FIRST QUARTER Exhibit 99 SOUTHWEST GAS CORPORATION SUMMARY STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED MARCH 31, MARCH 31, --------------------------- --------------------------- 1998 1997 1998 1997 ----------- ----------- ----------- ----------- Gas operating revenues $ 274,363 $ 211,564 $ 677,464 $ 569,573 Net cost of gas sold 120,987 84,599 245,726 193,710 ----------- ----------- ----------- ----------- Operating margin 153,376 126,965 431,738 375,863 Operations and maintenance expenses 50,850 48,448 203,561 199,601 Depreciation, amortization, and general taxes 27,274 25,612 105,583 97,078 ----------- ----------- ----------- ----------- Operating income 75,252 52,905 122,594 79,184 Net interest deductions 16,025 14,261 63,515 54,311 Preferred securities distribution 1,369 1,369 5,475 5,475 ----------- ----------- ----------- ----------- Pretax utility income 57,858 37,275 53,604 19,398 Utility income tax expense 22,254 14,440 16,736 7,028 ----------- ----------- ----------- ----------- Net utility income 35,604 22,835 36,868 12,370 Other income (expense), net 53 (299) (7,922) (774) ----------- ----------- ----------- ----------- Contribution to net income - gas operations 35,657 22,536 28,946 11,596 Contribution to net income - construction services 296 (968) 1,908 1,687 ----------- ----------- ----------- ----------- Net income $ 35,953 $ 21,568 $ 30,854 $ 13,283 =========== =========== =========== =========== Earnings per share - gas operations $ 1.30 $ 0.84 $ 1.06 $ 0.44 Earnings (loss) per share - construction services 0.01 (0.04) 0.07 0.06 ----------- ----------- ----------- ----------- Basic earnings per share $ 1.31 $ 0.80 $ 1.13 $ 0.50 =========== =========== =========== =========== Diluted earnings per share $ 1.30 $ 0.80 $ 1.13 $ 0.50 =========== =========== =========== =========== Average outstanding common shares 27,447 26,816 27,225 26,437 Average shares outstanding (assuming dilution) 27,605 26,939 27,358 26,527 See Notes to Summary Financial Statements. /TABLE
SOUTHWEST GAS CORPORATION SUMMARY BALANCE SHEET AT MARCH 31, 1998 (In thousands) (Unaudited) ASSETS UTILITY PLANT Gas plant, net of accumulated depreciation $ 1,340,043 Construction work in progress 37,325 ------------ Net utility plant 1,377,368 ------------ OTHER PROPERTY AND INVESTMENTS Investment in construction services subsidiary 25,335 Other 50,662 ------------ Total other property and investments 75,997 ------------ CURRENT AND ACCRUED ASSETS Cash, working funds and temporary cash investments 8,763 Receivables - less reserve of $2,162 for uncollectibles 67,038 Accrued utility revenue 33,500 Deferred purchased gas costs 86,351 Other 24,130 ------------ Total current and accrued assets 219,782 ------------ DEFERRED DEBITS Unamortized debt expense 18,915 Other deferred debits 29,761 ------------ Total deferred debits 48,676 ------------ TOTAL ASSETS $ 1,721,823 ============ CAPITALIZATION AND LIABILITIES CAPITALIZATION Common stockholders' equity Common stock equity, $1 par, 27,521 shares outstanding $ 392,042 Retained earnings 26,581 ------------ Total common stockholders' equity 418,623 33.4% Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.8 Long-term debt - NOTE 2 773,093 61.8 ------------ ------ Total capitalization 1,251,716 100.0% ------------ ====== CURRENT AND ACCRUED LIABILITIES Notes payable 78,000 Accounts payable 55,106 Customer deposits 22,496 Taxes accrued (including income taxes) 31,400 Other 65,326 ------------ Total current and accrued liabilities 252,328 ------------ DEFERRED CREDITS Deferred investment tax credits 17,922 Deferred income taxes 150,227 Other 49,630 ------------ Total deferred credits 217,779 ------------ TOTAL CAPITALIZATION AND LIABILITIES $ 1,721,823 ============ See Notes to Summary Financial Statements. /END TABLE
SOUTHWEST GAS CORPORATION SUMMARY STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 1998 (In thousands) (Unaudited) CASH FLOWS FROM OPERATIONS: Net income $ 35,953 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 19,301 Change in receivables and payables 11,058 Change in gas cost related balancing items 559 Change in accrued taxes 29,508 Change in deferred taxes 3,268 Allowance for funds used during construction (404) Other 6,807 ------------ Net cash provided by operating activities 106,050 ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Construction expenditures (36,658) Other (7,991) ------------ Net cash used in investing activities (44,649) ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from stock issuances 2,342 Dividends paid (5,623) Change in notes payable (64,000) Long-term debt issuances, net 1,300 ------------ Net cash used in financing activities (65,981) ------------ Change in cash and temporary cash investments (4,580) Cash at beginning of period 13,343 ------------ Cash at end of period $ 8,763 ============ SUPPLEMENTAL INFORMATION: Interest paid, net of amounts capitalized $ 15,054 Income taxes, net of refunds $ (613) See Notes to Summary Financial Statements. /TABLE
SOUTHWEST GAS CORPORATION NOTES TO SUMMARY FINANCIAL STATEMENTS (In thousands) (Unaudited) NOTE 1 - BASIS OF PRESENTATION: The summary financial statements have been prepared by Southwest Gas Corporation (the Company) using the equity method of accounting for its construction services subsidiary. This presentation is not in accordance with generally accepted accounting principles (GAAP), and certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted. The summary financial statement presentation in this report produces the same net income as the consolidated financial statements and, in management's opinion, is a fair representation of the operations and contributions to net income of the Company's operating segments. NOTE 2 - LONG-TERM DEBT: Term loan facility $ 200,000 Debentures and notes: Debentures, 9.75% series F, due 2002 100,000 Debentures, 7.50% series, due 2006 75,000 Debentures, 8% series, due 2026 75,000 Medium-term notes, 7.59% series, due 2017 25,000 Medium-term notes, 7.78% series, due 2022 25,000 Medium-term notes, 7.92% series, due 2027 25,000 Medium-term notes, 6.89% series, due 2007 17,500 Medium-term notes, 6.76% series, due 2027 7,500 Industrial development revenue bonds: Variable-rate bonds, Series A, due 2028 - net of funds held in trust 25,138 7.30% 1992 Series A, due 2027 30,000 7.50% 1992 Series B, due 2032 100,000 6.50% 1993 Series A, due 2033 75,000 Unamortized discount on long-term debt (7,045) ----------- TOTAL LONG-TERM DEBT $ 773,093 =========== ESTIMATED CURRENT MATURITIES $ -- =========== /TABLE SOUTHWEST GAS CORPORATION SELECTED STATISTICAL DATA MARCH 31, 1998 FINANCIAL STATISTICS Market value to book value per share at quarter end 137% Twelve months to date return on equity -- total company 7.9% -- gas segment 7.8% Common stock dividend yield at quarter end 3.9% GAS OPERATIONS SEGMENT
Authorized Authorized Authorized Return on Rate Base Rate of Common Rate Jurisdiction (In thousands) Return Equity - --------------------------- --------------- --------- --------- Arizona (1) $ 541,104 9.38% 11.25% Southern Nevada (1) 237,165 9.50 11.55 Northern Nevada (1) 63,986 9.67 11.55 Southern California 69,486 9.94 11.35 Northern California 19,910 10.02 11.35 Paiute Pipeline Company (1) 61,602 9.69 11.60 (1) Estimated amounts based on rate case settlements. SYSTEM THROUGHPUT BY CUSTOMER CLASS THREE MONTHS ENDED TWELVE MONTHS ENDED MARCH 31, MARCH 31, ---------------------------- ---------------------------- (In dekatherms) 1998 1997 1998 1997 - ---------------------------------------------------------------------------------------------------------------------------- Residential 27,948,401 24,174,330 54,328,952 48,957,887 Small commercial 10,305,324 9,412,867 25,552,999 24,093,705 Large commercial 2,057,455 2,037,777 7,673,862 7,741,028 Industrial / Other 2,376,968 1,954,350 9,026,219 5,561,016 Transportation 21,807,076 19,570,001 105,322,803 96,196,677 - ---------------------------------------------------------------------------------------------------------------------------- Total system throughput 64,495,224 57,149,325 201,904,835 182,550,313 ============================================================================================================================ HEATING DEGREE DAY COMPARISON - ---------------------------------------------------------------------------------------------------------------------------- Actual 1,292 1,093 2,174 1,983 Ten-year average 1,155 1,145 2,032 2,022 ============================================================================================================================ /TABLE -----END PRIVACY-ENHANCED MESSAGE-----