-----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, RYVCSspuH6wDrU3/kPBnr4QgHVzEY2g0PdmI/+0u5qF7bfDs8nr/nZYoR5vtFD+E XfZaXlBBAtYu2U3mW+hPSQ== 0000092416-98-000035.txt : 19980729 0000092416-98-000035.hdr.sgml : 19980729 ACCESSION NUMBER: 0000092416-98-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980727 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980727 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: 98671947 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) July 27, 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 July 27, 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 June 30, 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 -- Second 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: July 27, 1998 /s/ EDWARD A. JANOV ----------------------------- Edward A. Janov Vice President/Controller and Chief Accounting Officer EX-99 2 FINANCIAL ANALYST REPORT SECOND QUARTER EXHIBIT 99 SOUTHWEST GAS CORPORATION SUMMARY STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED TWELVE MONTHS ENDED JUNE 30, JUNE 30, JUNE 30, --------------------- --------------------- --------------------- 1998 1997 1998 1997 1998 1997 --------- --------- --------- --------- --------- --------- Gas operating revenues $ 165,017 $ 107,740 $ 439,380 $ 319,304 $ 734,741 $ 574,600 Net cost of gas sold 73,768 36,723 194,755 121,322 282,771 193,745 --------- --------- --------- --------- --------- --------- Operating margin 91,249 71,017 244,625 197,982 451,970 380,855 Operations and maintenance expenses 52,181 49,407 103,031 97,855 206,335 200,748 Depreciation, amortization, and general taxes 27,519 25,814 54,793 51,426 107,288 99,171 --------- --------- --------- --------- --------- --------- Operating income (loss) 11,549 (4,204) 86,801 48,701 138,347 80,936 Net interest deductions 15,314 15,195 31,339 29,456 63,634 56,451 Preferred securities distribution 1,369 1,369 2,738 2,738 5,475 5,475 --------- --------- --------- --------- --------- --------- Pretax utility income (loss) (5,134) (20,768) 52,724 16,507 69,238 19,010 Utility income tax expense (benefit) (1,962) (8,112) 20,292 6,328 22,886 7,201 --------- --------- --------- --------- --------- --------- Net utility income (loss) (3,172) (12,656) 32,432 10,179 46,352 11,809 Other income (expense), net (54) (91) (1) (390) (7,885) (571) --------- --------- --------- --------- --------- --------- Contribution to net income (loss) - gas operations (3,226) (12,747) 32,431 9,789 38,467 11,238 Contribution to net income (loss) - construction services 712 (1) 1,008 (969) 2,621 1,240 --------- --------- --------- --------- --------- --------- Net income (loss) $ (2,514) $ (12,748) $ 33,439 $ 8,820 $ 41,088 $ 12,478 ========= ========= ========= ========= ========= ========= Earnings (loss) per share - gas operations $ (0.12) $ (0.47) $ 1.18 $ 0.36 $ 1.41 $ 0.42 Earnings (loss) per share - construction services 0.03 0.00 0.04 (0.03) 0.09 0.05 --------- --------- --------- --------- --------- --------- Basic earnings (loss) per share $ (0.09) $ (0.47) $ 1.22 $ 0.33 $ 1.50 $ 0.47 ========= ========= ========= ========= ========= ========= Diluted earnings (loss) per share $ (0.09) $ (0.47) $ 1.21 $ 0.33 $ 1.49 $ 0.46 ========= ========= ========= ========= ========= ========= Average outstanding common shares 27,570 27,002 27,509 26,910 27,366 26,733 Average shares outstanding (assuming dilution) -- -- 27,691 27,022 27,525 26,839 The summary statements of income 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). However, it 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. /TABLE SOUTHWEST GAS CORPORATION SUMMARY STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)
SIX MONTHS ENDED TWELVE MONTHS ENDED JUNE 30, JUNE 30, ----------------------- ----------------------- 1998 1997 1998 1997 - ----------------------------------------------------------------------------------------------------------------------------------- Gas operating revenues $ 439,380 $ 319,304 $ 734,741 $ 574,600 Net cost of gas sold 194,755 121,322 282,771 193,745 - ----------------------------------------------------------------------------------------------------------------------------------- Operating margin 244,625 197,982 451,970 380,855 Operations and maintenance expenses 103,031 97,855 206,335 200,748 Depreciation, amortization, and general taxes 54,793 51,426 107,288 99,171 - ----------------------------------------------------------------------------------------------------------------------------------- Operating income 86,801 48,701 138,347 80,936 Net interest deductions 31,339 29,456 63,634 56,451 Preferred securities distribution 2,738 2,738 5,475 5,475 - ----------------------------------------------------------------------------------------------------------------------------------- Pretax utility income 52,724 16,507 69,238 19,010 Utility income tax expense 20,292 6,328 22,886 7,201 - ----------------------------------------------------------------------------------------------------------------------------------- Net utility income 32,432 10,179 46,352 11,809 Other income (expense), net (1) (390) (7,885) (571) - ----------------------------------------------------------------------------------------------------------------------------------- Contribution to net income - gas operations 32,431 9,789 38,467 11,238 Contribution to net income - construction services 1,008 (969) 2,621 1,240 - ----------------------------------------------------------------------------------------------------------------------------------- Net income $ 33,439 $ 8,820 $ 41,088 $ 12,478 =================================================================================================================================== Earnings per share - gas operations $ 1.18 $ 0.36 $ 1.41 $ 0.42 Earnings (loss) per share - construction services 0.04 (0.03) 0.09 0.05 - ----------------------------------------------------------------------------------------------------------------------------------- Basic earnings per share $ 1.22 $ 0.33 $ 1.50 $ 0.47 =================================================================================================================================== Diluted earnings per share $ 1.21 $ 0.33 $ 1.49 $ 0.46 =================================================================================================================================== Average outstanding common shares 27,509 26,910 27,366 26,733 Average shares outstanding (assuming dilution) 27,691 27,022 27,525 26,839 See Notes to Summary Financial Statements. /TABLE
SOUTHWEST GAS CORPORATION SUMMARY BALANCE SHEET AT JUNE 30, 1998 (In thousands) (Unaudited) ASSETS UTILITY PLANT Gas plant, net of accumulated depreciation $ 1,364,094 Construction work in progress 36,898 ----------- Net utility plant 1,400,992 ----------- OTHER PROPERTY AND INVESTMENTS Investment in construction services subsidiary 26,047 Other 54,824 ----------- Total other property and investments 80,871 ----------- CURRENT AND ACCRUED ASSETS Cash, working funds and temporary cash investments 4,843 Receivables - less reserve of $1,557 for uncollectibles 37,226 Accrued utility revenue 21,500 Deferred purchased gas costs 63,302 Other 24,530 ----------- Total current and accrued assets 151,401 ----------- DEFERRED DEBITS Unamortized debt expense 18,707 Other deferred debits 28,248 ----------- Total deferred debits 46,955 ----------- TOTAL ASSETS $ 1,680,219 =========== CAPITALIZATION AND LIABILITIES CAPITALIZATION Common stockholders' equity Common stock equity, $1 par, 27,625 shares outstanding $ 394,332 Retained earnings 18,396 ----------- Total common stockholders' equity 412,728 33.1% Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.8 Long-term debt - NOTE 2 774,963 62.1 ----------- ------ Total capitalization 1,247,691 100.0% ----------- ====== CURRENT AND ACCRUED LIABILITIES Notes payable 75,900 Accounts payable 30,866 Customer deposits 22,459 Taxes accrued (including income taxes) 25,042 Other 58,698 ----------- Total current and accrued liabilities 212,965 ----------- DEFERRED CREDITS Deferred investment tax credits 17,705 Deferred income taxes 151,532 Other 50,326 ----------- Total deferred credits 219,563 ----------- TOTAL CAPITALIZATION AND LIABILITIES $ 1,680,219 =========== See Notes to Summary Financial Statements. /TABLE
SOUTHWEST GAS CORPORATION SUMMARY STATEMENT OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 1998 (In thousands) (Unaudited) CASH FLOWS FROM OPERATIONS: Net income $ 33,439 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 38,976 Change in receivables and payables 28,393 Change in gas cost related balancing items 23,389 Change in accrued taxes 23,150 Change in deferred taxes (5,048) Allowance for funds used during construction (929) Other 10,648 --------- Net cash provided by operating activities 152,018 --------- CASH FLOWS FROM INVESTING ACTIVITIES: Construction expenditures (78,972) Other (12,104) --------- Net cash used in investing activities (91,076) --------- CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from stock issuances 4,632 Dividends paid (11,274) Change in notes payable (66,100) Long-term debt issuances, net 3,300 --------- Net cash used in financing activities (69,442) --------- Change in cash and temporary cash investments (8,500) Cash at beginning of period 13,343 --------- Cash at end of period $ 4,843 ========= SUPPLEMENTAL INFORMATION: Interest paid, net of amounts capitalized $ 30,262 Income taxes, net of refunds $ 1,388 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 26,911 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 (6,948) --------- TOTAL LONG-TERM DEBT $ 774,963 ========= ESTIMATED CURRENT MATURITIES $ -- ========= /TABLE SOUTHWEST GAS CORPORATION SELECTED STATISTICAL DATA JUNE 30, 1998 FINANCIAL STATISTICS Market value to book value per share at quarter end 164% Twelve months to date return on equity -- total company 10.4% -- gas 10.2% Common stock dividend yield at quarter end 3.4% 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 21,350 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 SIX MONTHS ENDED TWELVE MONTHS ENDED JUNE 30, JUNE 30, --------------------------- -------------------------- (In dekatherms) 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Residential 39,760,871 32,420,431 57,895,319 49,373,150 Small commercial 16,426,936 14,490,813 26,596,665 24,257,249 Large commercial 4,117,306 4,044,736 7,726,751 7,610,136 Industrial / Other 5,898,152 3,659,318 10,842,440 6,057,093 Transportation 43,892,841 45,544,144 101,434,426 99,434,472 - ------------------------------------------------------------------------------------------------------------------------------------ Total system throughput 110,096,106 100,159,442 204,495,601 186,732,100 ==================================================================================================================================== HEATING DEGREE DAY COMPARISON - ------------------------------------------------------------------------------------------------------------------------------------ Actual 1,717 1,322 2,369 1,971 Ten-year average 1,420 1,398 2,044 2,020 ==================================================================================================================================== /TABLE -----END PRIVACY-ENHANCED MESSAGE-----