<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) November 1, 1996
--------------------------
United Cities Gas Company
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois & Virginia 0-12841 36-1801540
- --------------------------------------------------------------------------------
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
5300 Maryland Way, Brentwood, Tennessee 37027
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (615) 373-5310
--------------------------
<PAGE> 2
ITEM 5. OTHER EVENTS
Pursuant to Instruction F to Form 8-K, the information contained in
the press releases filed as Exhibit 99.1 and Exhibit 99.2 hereto is hereby
incorporated by reference in answer to Item 5 of this Form 8-K.
-2-
<PAGE> 3
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.
UNITED CITIES GAS COMPANY
Date: November 1, 1996 By /s/ James B. Ford
--------------------------------------
James B. Ford
Senior Vice President and Treasurer
-3-
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT SEQUENTIALLY
NUMBER DESCRIPTION OF EXHIBIT NUMBERED PAGE
<S> <C> <C>
99.1 Press release dated November 1, 1996 relating to third quarter earnings
and dividend declaration
99.2 Press release dated November 4, 1996 relating to agreement with
Southern Union
</TABLE>
E-1
<PAGE> 1
NEWS RELEASE
FOR RELEASE: CONTACT:
Immediately Linda A. Kelley
615-373-0104
Ext. 224
UNITED CITIES REPORTS THIRD QUARTER RESULTS
AND BOARD DECLARES QUARTERLY DIVIDEND
BRENTWOOD, TENN.--November 1, 1996--United Cities Gas Co., (NASDAQ:UCIT),
a multistate distributor of natural and propane gas, today announced a third
quarter loss of $6.5 million or $.49 per share compared to a loss of $6.9
million or $.55 per share for the same period in 1995. The company
traditionally reports a loss for both the second and third quarter of the year
since the company's primary revenues are derived during the heating season.
Year-to-date results show common stock earnings at $7.9 million or $.61 per
share compared with $2.4 million or $.21 per share for the same period in 1995.
Gene C. Koonce, United Cities' chairman, president and CEO, attributed the
improved earnings to more normal weather and rate increases that were
implemented in several of the states United Cities serves.
Koonce added that the company continues to enjoy strong economic growth in
its service areas and expects to add around 10,000 new customers this year.
The company also announced that its board of directors had declared a
dividend of $.255 per share for shareholders of record on November 29, 1996,
payable on December 13, 1996.
United Cities Gas Company distributes natural and propane gas to
approximately 335,000 customers in ten states. The company is also engaged in
other energy-related businesses.
See Attached Financial Data
[United Cities Gas Company Logo]
<PAGE> 2
CONDENSED CONSOLIDATED BALANCE SHEETS
United Cities Gas Company & Subsidiaries
<TABLE>
<CAPTION>
September 30,
------------------------
(Unaudited, in thousands) 1996 1995
==============================================================================
<S> <C> <C>
ASSETS
Utility Property - Net $297,932 $279,818
Nonutility Property - Net 54,812 49,758
Current Assets:
Cash and temporary investments 5,032 1,488
Accounts receivable, less allowances 21,522 14,597
Materials, supplies and gas in storage 37,334 30,570
Gas costs to be billed in the future 9,003 17,926
Other current assets 5,033 2,598
- ------------------------------------------------------------------------------
Total current assets 77,924 67,179
Deferred Charges and Other Assets 27,030 20,913
- ------------------------------------------------------------------------------
Total Assets $457,698 $417,668
==============================================================================
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock equity $150,419 $140,471
Long-term debt 157,492 137,088
- ------------------------------------------------------------------------------
Total capitalization 307,911 277,559
- ------------------------------------------------------------------------------
Current Liabilities:
Current portion of long-term obligations 5,424 8,757
Notes payable 40,900 36,548
Accounts payable 21,536 19,249
Other current liabilities 37,455 36,339
- ------------------------------------------------------------------------------
Total current liabilities 105,315 100,893
- ------------------------------------------------------------------------------
Deferred Credits 44,472 39,216
- ------------------------------------------------------------------------------
Total Capitalization and Liabilities $457,698 $417,668
==============================================================================
</TABLE>
SHAREHOLDER NOTES
==============================================================================
STOCK LISTING
NASDAQ symbol: UCIT
PRICE RANGE OF COMMON STOCK
The following table provides high and low trading prices for the common stock
of United Cities Gas Company for the quarters indicated:
<TABLE>
<CAPTION>
QUARTER ENDED HIGH LOW CLOSE
<S> <C> <C> <C>
September 30, 1996 24 1/4 14 3/4 22 7/16
June 30, 1996 17 5/8 14 3/4 15 1/8
March 31, 1996 19 15 3/4 17 3/4
December 31, 1995 19 3/4 15 5/8 18 3/4
September 30, 1995 16 3/4 14 3/4 16 1/2
</TABLE>
DIVIDENDS
Quarterly dividend amounts are considered by the company's board of directors
at regularly scheduled meetings held each quarter. Dividends are normally
payable on the 15th day of March, June, September and December.
ANNUAL DIVIDEND RATE PER SHARE
1992 $ .98
1993 $1.00
1994 $1.02
1995 $1.02
1996 $1.02
STOCK OWNERSHIP
As of September 30, 1996, the company had 13,174,794 shares of common stock
outstanding, owned by 8,156 holders of record in 49 states and four foreign
countries. Shareholders include individuals, brokers, nominees, custodians and
trustees, and institutions such as banks, insurance companies and pension
funds. Some of these hold large blocks of stock on behalf of other individuals
or firms.
<PAGE> 3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
United Cities Gas Company & Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
(Unaudited, in thousands, except per share amounts) 1996 1995 1996 1995 1996 1995
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
Utility Operating Revenues $ 39,953 $ 32,248 $245,360 $180,500 $336,720 $254,798
Natural gas cost 24,651 18,066 158,326 104,011 213,491 146,777
- -----------------------------------------------------------------------------------------------------------------------------
Utility Operating Margin 15,302 14,182 87,034 76,489 123,229 108,021
- -----------------------------------------------------------------------------------------------------------------------------
Other Utility Operating Expenses:
Operations and maintenance 15,578 16,139 46,925 45,903 62,848 59,773
Depreciation and amortization 4,202 3,765 12,370 11,137 16,352 14,569
Federal and state income taxes (4,190) (4,369) 2,612 79 6,583 2,790
Other taxes 2,767 2,731 9,385 9,128 12,557 11,807
- -----------------------------------------------------------------------------------------------------------------------------
Total other utility operating expenses 18,357 18,266 71,292 66,247 98,340 88,939
- -----------------------------------------------------------------------------------------------------------------------------
Utility Operating Income (Loss) (3,055) (4,084) 15,742 10,242 24,889 19,082
Other Utility Income, net of tax 155 298 389 471 574 385
- -----------------------------------------------------------------------------------------------------------------------------
(2,900) (3,786) 16,131 10,713 25,463 19,467
Utility Interest Expense 3,634 3,207 10,842 10,415 14,726 14,250
- -----------------------------------------------------------------------------------------------------------------------------
Utility Income (Loss) (6,534) (6,993) 5,289 298 10,737 5,217
Other Income (Loss):
Net income (loss) of UCG Energy Corporation (168) (113) 2,024 1,656 3,817 2,952
Net income of United Cities Gas Storage Company 230 190 626 495 871 667
- -----------------------------------------------------------------------------------------------------------------------------
Common Stock Earnings (Loss) $ (6,472) $ (6,916) $ 7,939 $ 2,449 $15,425 $ 8,836
=============================================================================================================================
Common Stock Earnings (Loss) Per Share $ (.49) $ (.55) $ .61 $ .21 $ 1.19 $ .79
=============================================================================================================================
Average Number of Shares 13,138 12,585 13,051 11,492 12,958 11,249
=============================================================================================================================
Dividends Per Share $ .255 $ .255 $ .765 $ .765 $ 1.02 $ 1.02
=============================================================================================================================
</TABLE>
OTHER INFORMATION
<TABLE>
<CAPTION>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Natural gas through-put (Mcf):*
Residential 1,321 1,274 17,008 14,285 25,624 20,766
Commercial 1,746 1,633 11,524 10,021 16,668 14,030
Industrial 3,755 3,770 13,287 13,906 18,625 18,870
Transportation 4,181 4,170 12,922 12,317 17,789 16,079
- -----------------------------------------------------------------------------------------------------------------------------
Total natural gas through-put 11,003 10,847 54,741 50,529 78,706 69,745
=============================================================================================================================
Customers (average for period):
Residential 272,632 262,972 276,049 265,827 274,199 265,060
Commercial 34,829 33,632 35,519 34,380 35,289 34,291
Industrial 637 640 636 650 635 651
- -----------------------------------------------------------------------------------------------------------------------------
Natural Gas 308,098 297,244 312,204 300,857 310,123 300,002
Propane 25,962 23,278 25,883 23,203 25,363 22,905
- -----------------------------------------------------------------------------------------------------------------------------
Total customers 334,060 320,522 338,087 324,060 335,486 322,907
=============================================================================================================================
Percent colder (warmer) than normal** *** *** 8.1% (9.6%) 8.7% (14.0%)
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
September 30,
1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Number of common shares outstanding (in thousands) 13,175 12,642
- -----------------------------------------------------------------------------------------------------------------------------
Book value per share $ 11.42 $ 11.11
- -----------------------------------------------------------------------------------------------------------------------------
Market value per share $ 22.44 $ 16.50
- -----------------------------------------------------------------------------------------------------------------------------
Employees 1,228 1,319
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* In thousands
** Based on system weighted average. Data for 1996 is preliminary.
*** Not meaningful for third quarter.
<PAGE> 1
NEWS RELEASE
[ATMOS AND UNITED CITIES GAS COMPANY LOGO'S]
DATE: Nov. 4, 1996 ATMOS MEDIA CONTACT: Margaret Watson
(972) 450-4050
FOR RELEASE: Immediately ATMOS INVESTOR/ANALYST
CONTACT: Jack Eversull
(972) 788-3729
UNITED CITIES CONTACT: Linda Kelley
(615) 373-0104, ext. 224
UNITED CITIES, ATMOS ENERGY REACH AGREEMENT
WITH SOUTHERN UNION REGARDING MERGER
Brentwood, Tenn., and Dallas, Texas -- United Cities Gas Company (NASDAQ:UCIT)
and Atmos Energy Corporation (NYSE:ATO) announced today that they have entered
into an agreement with Southern Union Company pursuant to which Southern Union
has agreed not to exercise dissenters' rights with respect to the United
Cities/Atmos merger and has agreed not to solicit United Cities shareholders to
exercise their dissenters' rights to vote against the merger. United Cities and
Atmos have agreed to stop contesting the legality of Southern Union's ownership
of United Cities shares and the Atmos shares into which those shares will be
converted in the merger.
The agreement also grants Southern Union a right of first offer in respect of
certain properties which Atmos may choose to dispose of during the two-year
period following the consummation of the merger. Atmos does not currently
contemplate the sale of any properties.
The United Cities and Atmos shareholders are scheduled to consider the proposed
merger at meetings to be held on Nov. 12.
United Cities Gas Company distributes natural gas and propane gas to
approximately 340,000 customers in 10 states. The company is also engaged in
other energy-related business.
Atmos Energy Corporation provides natural gas service to approximately 674,000
customers in Texas, Colorado, Kansas, Missouri, Louisiana and Kentucky through
its operating companies - Energas Company, Greeley Gas Company, Trans Louisiana
Gas Company and Western Kentucky Gas Company.
# # #
