UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
F O R M 10K/A
AMENDMENT TO ANNUAL REPORT
Filed pursuant to Section 12, 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-7924
VALLEY RESOURCES, INC.
_____________________________________________________________
(Exact name of registrant as specified in charter)
AMENDMENT TO 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report for the fiscal year
ended August 31, 1996 on Form 10-K as set forth in the pages attached hereto.
Item 14 Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) 3. Exhibits
28. Additional Exhibits
Annual Report on Form 11-K of Valley Gas Company Employees
Savings Plan for the plan year ended December 31, 1996.
Annual Report on Form 11-K of Valley Gas Company Union
Employees Savings Plan for the plan year ended December 31,
1996.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
VALLEY RESOURCES, INC.
Date April 29, 1997 By S/K. W. Hogan
-----------------------------------
K. W. Hogan
Sr. Vice President, CFO & Secretary
<PAGE>
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
( ) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended______________________________________________________
OR
(X) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from January 1, 1996 to December 31, 1996
--------------- -----------------
Commission file number 1-7924
VALLEY GAS COMPANY
EMPLOYEES SAVINGS PLAN
_________________________
(Full Title of Plan)
VALLEY RESOURCES, INC.
__________________________________________________________
(Name of Issuer of the Securities held Pursuant to the Plan)
1595 Mendon Road
Cumberland, Rhode Island 02864
____________________________________
(Address of Principal Executive Officer)
<PAGE>
Financial Statements and Exhibits
- ---------------------------------
a) Financial Statements: Page Number
-----------
Report of Independent Certified Public
Accountants F-1
Statements of Financial Condition as of
December 31, 1996 and 1995 F-2 - F-3
Statements of Income and Changes in
Plan Equity for the years ended
December 31, 1996, 1995 and 1994 F-4 - F-6
Notes to Financial Statements F-7 - F-13
Schedules:
I - Investments - Other, See Note E of Notes
to Financial Statements
Schedules II and III have been omitted
because the required information is shown
in the financial statements
b) Exhibits:
24d) Consent of Independent Certified Public Accountants
<PAGE>
Report of Independent Certified Public Accounts
-----------------------------------------------
Administrator of the Valley Gas Company
Employees Savings Plan
We have audited the accompanying statements of financial condition of
Valley Gas Company Employees Savings Plan as of December 31, 1996 and 1995, and
the related statements of income and changes in plan equity for each of three
years in the period ended December 31, 1996. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial condition of the Valley Gas Company
Employees Savings Plan as of December 31, 1996 and 1995, and the income and
changes in plan equity for each of three years in the period ended December 31,
1996, in conformity with generally accepted accounting principles.
S/Grant Thornton LLP
GRANT THORNTON LLP
Boston, Massachusetts
April 7, 1997
F-1
<PAGE>
Valley Gas Company Employees Savings Plan
STATEMENTS OF FINANCIAL CONDITION
December 31, 1996
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
ASSETS FUND FUND FUND FUND TOTAL
- ------ --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments (Notes A and C)
Common Stock of
Valley Resources, Inc.
at Market Value 206,904
Shares (Cost $2,471,933.04) $2,327,670.00 $2,327,670.00
Other (Note E) $ 0.00 $ 0.00 $ 0.00 0.00 0.00
----------- ----------- ------------- ------------- -------------
Total Investments 0.00 0.00 0.00 2,327,670.00 2,327,670.00
Cash 257,467.79 281,964.29 1,269,479.20 4,304.33 1,813,215.61
Money Market 0.00 0.00 0.00 0.00 0.00
Interest Receivable 1,051.49 0.56 4.94 39.84 1,096.83
Dividends Receivable 0.00 1,268.74 0.00 37,759.98 39,028.72
Contributions Receivable 392.40 810.00 4,206.10 5,619.50 11,028.00
----------- ----------- ------------- ------------- -------------
Total Assets $258,911.68 $284,043.59 $1,273,690.24 $2,375,393.65 $4,192,039.16
=========== =========== ============= ============= =============
LIABILITIES AND EQUITY
Plan Equity - Including
Net Unrealized Deprecia-
tion or Appreciation of
Investments
(Notes A and F) $258,911.68 $284,043.59 $1,273,690.24 $2,375,393.65 $4,192,039.16
----------- ----------- ------------- ------------- -------------
Total Liabilities
and Equity $258,911.68 $284,043.59 $1,273,690.24 $2,375,393.65 $4,192,039.16
=========== =========== ============= ============= =============
</TABLE>
The accompanying Notes are an integral part of these statements.
F-2
<PAGE>
Valley Gas Company Employees Savings Plan
STATEMENTS OF FINANCIAL CONDITION
December 31, 1995
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
ASSETS FUND FUND FUND FUND TOTAL
- ------ ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments (Notes A and C)
Common Stock of
Valley Resources, Inc.
at Market Value 199,184
Shares (Cost $2,380,386.04) $2,166,126.00 $2,166,126.00
Other (Note E) $ 0.00 $265,528.61 $987,401.25 0.00 1,252,929.86
----------- ----------- ----------- ------------- -------------
Total Investments 0.00 265,528.61 987,401.25 2,166,126.00 3,419,055.86
Cash 327.00 216.40 579.70 693.90 1,817.00
Money Market 282,360.52 2,164.47 8,253.04 9,776.33 302,554.36
Interest Receivable 1,213.83 0.00 0.00 44.58 1,258.41
Dividends Receivable 0.00 1,266.07 36.54 35,853.12 37,155.73
Contributions Receivable 896.30 875.40 3,316.30 7,456.00 12,544.00
----------- ----------- ----------- ------------- -------------
Total Assets $284,797.65 $270,050.95 $999,586.83 $2,219,949.93 $3,774,385.36
=========== =========== =========== ============= =============
LIABILITIES AND EQUITY
Plan Equity - Including
Net Unrealized Deprecia-
tion or Appreciation of
Investments (Notes A
and F) $284,797.65 $270,050.95 $999,586.83 $2,219,949.93 $3,774,385.36
----------- ----------- ----------- ------------- -------------
Total Liabilities
and Equity $284,797.65 $270,050.95 $999,586.83 $2,219,949.93 $3,774,385.36
=========== =========== =========== ============= =============
</TABLE>
The accompanying Notes are an integral part of these statements.
F-3
<PAGE>
Valley Gas Company Employees Savings Plan
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For The Year Ended December 31, 1996
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
FUND FUND FUND FUND TOTAL
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Common Stock $ 0.00 $ 14,685.46 $ 143,770.36 $ 153,360.61 $ 311,816.43
Interest 13,407.17 114.64 599.60 900.93 15,022.34
----------- ----------- ------------- ------------- -------------
Total Investment Income 13,407.17 14,800.10 144,369.96 154,261.54 326,838.77
Net Realized Gain/(Loss) on
Disposition of
Investments (Note G) 0.00 (1,222.89) 286,735.22 (2,976.99) 282,535.34
----------- ----------- ------------- ------------- -------------
Unrealized Appreciation
(Depreciation) of
Investments (Notes A
and F) 0.00 (3,342.98) (220,435.03) 69,997.00 (153,781.01)
----------- ----------- ------------- ------------- -------------
Contributions (Note A)
Participants 25,566.40 28,091.60 144,000.30 119,794.70 317,453.00
Valley Gas Company 0.00 0.00 0.00 93,837.00 93,837.00
----------- ----------- ------------- ------------- -------------
Total Contributions 25,566.40 28,091.60 144,000.30 213,631.70 411,290.00
----------- ----------- ------------- ------------- -------------
Miscellaneous 0.00 1,471.39 8,557.10 0.00 10,028.49
----------- ----------- ------------- ------------- -------------
Total Net Additions 38,973.57 39,797.22 363,227.55 434,913.25 876,911.59
----------- ----------- ------------- ------------- -------------
Withdrawals (44,216.66) (868.37) (230,637.32) (183,535.44) (459,257.79)
----------- ----------- ------------- ------------- -------------
Total Deductions (44,216.66) (868.37) (230,637.32) (183,535.44) (459,257.79)
----------- ----------- ------------- ------------- -------------
Net Increase (Decrease) (5,243.09) 38,928.85 132,590.23 251,377.81 417,653.80
Plan Equity:
Beginning of Year 284,797.65 270,050.95 999,586.83 2,219,949.93 3,774,385.36
Inter-Plan/Inter-Fund
Transfers (20,642.88) (24,936.21) 141,513.18 (95,934.09) 0.00
----------- ----------- ------------- ------------- -------------
End of Year $258,911.68 $284,043.59 $1,273,690.24 $2,375,393.65 $4,192,039.16
=========== =========== ============= ============= =============
</TABLE>
The accompanying Notes are an integral part of these statements.
F-4
<PAGE>
Valley Gas Company Employees Savings Plan
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For The Year Ended December 31, 1995
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
FUND FUND FUND FUND TOTAL
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Common Stock $ 0.00 $ 16,891.62 $ 54,191.13 $ 135,770.33 $ 206,853.08
Interest 13,502.22 138.70 499.51 1,874.02 16,014.45
----------- ----------- ----------- ------------- ------------
Total Investment Income 13,502.22 17,030.32 54,690.64 137,644.35 222,867.53
Net Realized Gain/(Loss) on
Disposition of
Investments (Note G) 0.00 (1,637.11) 0.00 (3,119.99) (4,757.10)
----------- ----------- ----------- ------------- -------------
Unrealized Appreciation
(Depreciation) of
Investments (Notes A
and F) 0.00 15,447.03 178,176.74 (180,685.06) 12,938.71
----------- ----------- ----------- ------------- -------------
Contributions (Note A)
Participants 31,176.60 26,197.10 87,587.60 130,934.70 275,896.00
Valley Gas Company 0.00 0.00 0.00 91,669.00 91,669.00
----------- ----------- ----------- ------------- -------------
Total Contributions 31,176.60 26,197.10 87,587.60 222,603.70 367,565.00
----------- ----------- ----------- ------------- -------------
Miscellaneous 0.00 1,607.34 5,836.86 0.00 7,444.20
----------- ----------- ----------- ------------- -------------
Total Net Additions 44,678.82 58,644.68 326,291.84 176,443.00 606,058.34
----------- ----------- ----------- ------------- -------------
Withdrawals (1,994.82) (68,094.62) (500.55) (129,064.90) (199,654.89)
----------- ----------- ----------- ------------- -------------
Total Deductions (1,994.82) (68,094.62) (500.55) (129,064.90) (199,654.89)
----------- ----------- ----------- ------------- -------------
Net Increase (Decrease) 42,684.00 (9,449.94) 325,791.29 47,378.10 406,403.45
Plan Equity:
Beginning of Year 238,983.30 325,304.23 624,406.02 2,172,903.36 3,361,596.91
Inter-Plan/Inter-Fund
Transfers 3,130.35 (45,803.34) 49,389.52 (331.53) 6,385.00
----------- ----------- ----------- ------------- -------------
End of Year $284,797.65 $270,050.95 $999,586.83 $2,219,949.93 $3,774,385.36
=========== =========== =========== ============= =============
</TABLE>
The accompanying Notes are an integral part of these statements.
F-5
<PAGE>
Valley Gas Company Employees Savings Plan
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For The Year Ended December 31, 1994
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
FUND FUND FUND FUND TOTAL
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 0.00 $ 14,175.21 $ 24,890.64 $ 115,223.33 $ 154,289.18
Interest 8,738.42 116.64 321.60 1,907.22 11,083.88
----------- ----------- ----------- ------------- -------------
Total Investment Income 8,738.42 14,291.85 25,212.24 117,130.55 165,373.06
Net Realized Gain/(Loss) on
Disposition of
Investments (Note G) 0.00 0.00 532.45 0.00 532.45
----------- ----------- ----------- ------------- -------------
Unrealized Appreciation
(Depreciation) of
Investments (Notes A
and F) 0.00 (15,087.88) (19,898.30) (389,239.72) (424,225.90)
----------- ----------- ----------- ------------- -------------
Contributions (Note A)
Participants 22,745.00 28,884.40 79,936.70 148,534.90 280,101.00
Valley Gas Company 0.00 0.00 0.00 87,676.00 87,676.00
----------- ----------- ----------- ------------- -------------
Total Contributions 22,745.00 28,884.40 79,936.70 236,210.90 367,777.00
----------- ----------- ----------- ------------- -------------
Miscellaneous 0.00 1,675.47 4,436.27 (6,430.98) (319.24)
----------- ----------- ----------- ------------- -------------
Total Net Additions 31,483.42 29,763.84 90,219.36 (42,329.25) 109,137.37
----------- ----------- ----------- ------------- -------------
Withdrawals (781.41) 0.00 0.00 (15,524.54) (16,305.95)
----------- ----------- ----------- ------------- -------------
Total Deductions (781.41) 0.00 0.00 (15,524.54) (16,305.95)
----------- ----------- ----------- ------------- -------------
Net Increase (Decrease) 30,702.01 29,763.84 90,219.36 (57,853.79) 92,831.42
Plan Equity:
Beginning of Year 242,324.72 302,054.25 525,086.21 2,198,761.91 3,268,227.09
Inter-Plan/Inter-Fund
Transfers (34,043.43) (6,513.86) 9,100.45 31,995.24 538.40
----------- ----------- ----------- ------------- -------------
End of Year $238,983.30 $325,304.23 $624,406.02 $2,172,903.36 $3,361,596.91
----------- ----------- ----------- ------------- -------------
</TABLE>
The accompanying Notes are an integral part of these statements.
F-6
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1996, 1995 and 1994
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Valley Gas Company Employees Savings Plan (the
"Plan"), have been prepared in accordance with generally accepted accounting
principles as applied to Employee Benefit Plans. The following description of
The Valley Gas Company Employees Savings Plan provides only general information.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
General
- -------
The plan is a defined contribution plan covering all employees of Valley Gas
Company who are not members of the collective bargaining unit and satisfy the
eligibility requirements.
Contributions
- -------------
A member may authorize a Basic Employee Contribution from 1% to 12% with a
maximum contribution not to exceed $9,500 in any one year.
The employer shall contribute as of December 31, of each plan year from current
or accumulated net profits on behalf of each member participating of the Plan on
December 31, of each plan year, an amount equal to 50% of the employee
contribution made up to 4% of the employee's annual compensation.
Participant Accounts
- --------------------
Each participant's account is credited with the participant's contribution and
allocations of (a) the Company's contribution and, (b) plan earnings.
Allocations are based on participant earnings or account balances as defined.
The benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account. The plan administrator will pay
for substantially all expenses of the plan.
F- 7
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1996, 1995 and 1994
Vesting
- -------
Participants are immediately vested in their contribution plus actual earning
thereon. Vesting in the Company's matching and discretionary contribution
portion of their accounts plus actual earnings thereon is based on years of
continuous service. A participant is 100 percent vested after seven years of
credited service. If a participant terminates employment for any reason other
than disability or retirement, he will be entitled to the full amount of
contributions he has deposited plus a percentage of his account balance derived
from employer contributions based upon the following schedule:
Years of Service % Vested
---------------- --------
Less than 1 year -0-%
1 10
2 20
3 30
4 40
5 60
6 80
7 100
A member will become vested in the Company's matching contribution as a result
of disability, death or retirement in accordance with the above schedule.
Participant Loans Receivable
- ----------------------------
Member loans are not permitted.
Payments of Benefits
- --------------------
On termination of service due to disability, death or retirement, a participant
may elect to receive either a lump sum payment equal to the value of the
participants vested interest in his account, or equal quarterly or annual
installments over a period not to exceed the life expectancy of the member or
joint life expectancy of the member and spouse or other beneficiary.
Benefits are recorded when paid.
Valuation of Investments
- ------------------------
Investments are held by a bank-administered trust fund and are stated at their
approximate current market value. The difference between current market value
and the cost of investments are reflected in the statement of income and changes
in plan equity as unrealized appreciation or (depreciation) of fair value of
investments.
F-8
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1996, 1995 and 1994
Management Estimates
- --------------------
In preparing the financial statements in conformity to GAAP, management is
required to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
NOTE B - SUMMARY OF PLAN PROVISIONS
Effective Date: January 1, 1985.
Plan Year: January 1 through December 31.
Valuation Date: The Trustee will value the Fund on the last day of
each quarter of each Plan year.
Plan Administrator: Valley Gas Company is the Plan's Administrator and
will determine the benefits payable.
Basis of Accounting: The financial statements of the Plan are prepared
under the accrual method of accounting.
Eligibility: Nonunion employees are eligible for membership on
either January 1 or July 1 of each Plan year
following the date on which they have attained the
age of 21 and completion of one year of service.
Normal Retirement
Date: The normal retirement age or date will be a member's
65th birthday.
Forfeitures: A member who terminates his employment prior to
becoming eligible for benefits and does not have a
100% vested right to Company contributions forfeits
the amounts not vested.
Forfeitures of discretionary employer contributions
will be used to reduce matching employee
contributions thereafter required to be
made by the employer.
Plan Terminations: The employer may terminate the Plan at any time. The
Plan has no definite termination date. In the event
of termination of the Plan by the Employer all
amounts credited to participants accounts will vest.
F-9
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE C - INVESTMENTS
Investments
Investments are comprised of the following funding options available to
participants of the Plan:
I. The Money Market Fund
An FDIC insured money market fund offered by Fleet National Bank. Rates
are set weekly based upon the average rate of ten of the largest money
market funds in the United States. The objective is to offer an investment
that will reflect the general level of interest rates on short-term
investments with little or no risk of loss of principal.
II. The Galaxy Short-Term Bond Fund
The Galaxy Short-Term Bond Fund's objective is to earn high current income
while preserving capital. Most of the Fund's assets are in U.S. Government
or corporate debt obligations rated in the top three categories of
Standard & Poor or Moody's Investors Service, or unrated securities deemed
to be of comparable quality. Average maturity of the Fund's investments
typically range from one to three years.
III. The Galaxy Equity Income Fund
The Galaxy Equity Income Fund's objective is to seek current income and
capital appreciation. The Fund primarily invests in common stock and
convertible securities. The Fund will seek to achieve a fund yield that
will generally exceed the yield of the Standard & Poor 500 by at least 30
percent.
IV. The Valley Resources Stock Fund
A fund that invests exclusively in the common stock of Valley Resources,
Inc. - parent of Valley Gas Company.
A member shall direct the Trustee with respect to the investment of his account
in each fund. The plan administrator has investment discretion attributable to
employer contributions. Employer contributions are invested in the Valley
Resources stock fund. Dividends, interest and contributions that have yet to be
invested in that particular fund's assets are temporarily invested in money
market accounts.
F-10
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE C - INVESTMENTS - Continued
The number of participants in each fund was as follows:
<TABLE>
<CAPTION>
December 31,
1996 1995
---- ----
<S> <C> <C>
Money Market Fund 32 44
Galaxy Short-Term Bond Fund 39 40
Galaxy Equity Income Fund 79 73
Valley Resources, Inc. Common Stock Fund 99 115
</TABLE>
The total number of participants in the Plan was less than the sum of the number
of participants shown above because many were participating in more than one
fund.
Amounts contributed to the participants' accounts by the Company are taxable to
the participants in the year of distribution. Contributions made by participants
are deductible for Federal income tax purposes up to specified limits.
NOTE D - TRANSFER OF PLAN ASSETS
On December 31, 1996, the Plan Administrator directed the sale of all plan
assets to be transferred via wire to the New York Life Benefits Services, Inc.
NYL Receipt Account. Prior to the transfer, these investments were converted to
cash. These funds were all received in the NYL Receipt Account on January 2,
1997. This transfer was made as a result of a change in custodianship of assets.
All assets were placed into like/kind New York Life funds.
F-11
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE E - INVESTMENTS - OTHER
<TABLE>
<CAPTION>
DECEMBER 31, 1995
-----------------------------------
APPROXIMATE
MARKET
UNITS COST VALUE
-----------------------------------
<S> <C> <C> <C>
The Galaxy Short-Term
Bond Fund 26,135 $262,185.63 $265,528.61
The Galaxy Equity
Income Fund 64,368 $766,966.22 $987,401.25
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1994
-----------------------------------
APPROXIMATE
MARKET
UNITS COST VALUE
-----------------------------------
<S> <C> <C> <C>
The Galaxy Short-Term
Bond Fund 33,137 $332,872.40 $320,768.35
The Galaxy Equity
Income Fund 50,776 $575,689.15 $617,947.44
</TABLE>
NOTE F - NET UNREALIZED APPRECIATION (DEPRECIATION) OF PLAN ASSETS
<TABLE>
<CAPTION>
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at Dec. 31, 1993 $ 2,983.83 $ 62,156.59 $ 355,664.75 $ 420,805.17
Change for the year 1994 (15,087.88) (19,898.30) (389,239.72) (424,225.90)
----------- ----------- ------------ ------------
Balance at Dec. 31, 1994 (12,104.05) 42,258.29 (33,574.97) (3,420.73)
Change for the year 1995 15,447.03 178,176.74 (180,685.06) 12,938.71
----------- ----------- ------------ ------------
Balance at Dec. 31, 1995 3,342.98 220,435.03 (214,260.03) 9,517.98
Change for the year 1996 (3,342.98) (220,435.03) 69,997.00 (153,781.01)
----------- ----------- ------------ ------------
Balance at Dec. 31, 1996 $ 0.00 $ 0.00 $(144,263.03) $(144,263.03)
=========== ============ ============ ============
</TABLE>
F-12
<PAGE>
Valley Gas Company Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE G - NET REALIZED GAIN (LOSS) ON DISPOSITION OF PLAN ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
------------------------------------------------------
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
------------------------------------------------------
<S> <C> <C> <C> <C>
Amount Realized $304,855.19 $1,482,772.40 $174,546.50 $1,962,174.09
Cost - Average 306,078.08 1,196,037.18 177,523.49 1,679,638.75
----------- ------------- ----------- -------------
Net Realized Gain (Loss) $ (1,222.89) $ 286,735.22 $ (2,976.99) $ 282,535.34
=========== ============= =========== =============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
------------------------------------------------------
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
------------------------------------------------------
<S> <C> <C> <C> <C>
Amount Realized $107,254.00 $ 0.00 $36,980.75 $144,234.75
Cost - Average 108,891.11 0.00 40,100.74 148,991.85
----------- -------- ---------- -----------
Net Realized Loss $ (1,637.11) $ 0.00 $(3,119.99) $ (4,757.10)
=========== ======== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1994
-----------------------------------------------------
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
-----------------------------------------------------
<S> <C> <C> <C> <C>
Amount Realized $0.00 $5,032.00 $0.00 $5,032.00
Cost - Average 0.00 4,499.55 0.00 4,499.55
----- --------- ----- ---------
Net Realized Gain $0.00 $ 532.45 $0.00 $ 532.45
===== ========= ===== =========
</TABLE>
NOTE H - TAX STATUS OF PLAN
The Internal Revenue Service has determined and informed the Company by a letter
dated August 3, 1987, that the Plan and related trust are designed in accordance
with applicable sections of the Internal Revenue Code (IRC).
F-13
<PAGE>
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 thereunto duly authorized.
VALLEY GAS COMPANY EMPLOYEES SAVINGS PLAN
S/K. W. Hogan
-----------------------------------------
K. W. Hogan
Senior Vice President, CFO and Secretary
April 29, 1997
F-14
<PAGE>
Exhibit 24d
-----------
Consent of Independent Certified Public Accountants
---------------------------------------------------
We have issued our report dated April 7, 1997, accompanying the financial
statements of Valley Gas Company Employees Savings Plan contained in the Annual
Report on Form 11-K for the year ended December 31, 1996. We hereby consent to
the incorporation by reference of said report in the Valley Gas Company
Employees Savings Plan Registration Statement on Form S-8/S-3 (File No.
33-33574).
S/Grant Thornton LLP
GRANT THORNTON LLP
Boston, Massachusetts
April 28, 1997
<PAGE>
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
( ) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 (FEE REQUIRED)
For the fiscal year ended______________________________________________________
OR
(X) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 (NO FEE REQUIRED)
For the transition period from January 1, 1996 to December 31, 1996
--------------- -----------------
Commission file number 1-7924
VALLEY GAS COMPANY UNION
EMPLOYEES SAVINGS PLAN
________________________
(Full Title of Plan)
VALLEY RESOURCES, INC.
__________________________________________________________
(Name of Issuer of the Securities held Pursuant to the Plan)
1595 Mendon Road
Cumberland, Rhode Island 02864
_____________________________________
(Address of Principal Executive Office)
<PAGE>
Item 9 Financial Statements and Exhibits
---------------------------------
a) Financial Statements: Page Number
-----------
Report of Independent Certified Public
Accountants F-1
Statements of Financial Condition as of
December 31, 1996 and 1995 F-2 - F-3
Statements of Income and Changes in
Plan Equity for the years ended
December 31, 1996, 1995 and 1994 F-4 - F-6
Notes to Financial Statements F-7 - F-14
Schedules:
I - Investments - Other, See Note E of Notes
to Financial Statements
Schedules II and III have been omitted
because the required information is shown
in the financial statements
b) Exhibits:
24d) Consent of Independent Certified Public Accountants
<PAGE>
Report of Independent Certified Public Accountants
--------------------------------------------------
Administrator of the Valley Gas Company
Union Employees Savings Plan
We have audited the accompanying statements of financial condition of
Valley Gas Company Union Employees Savings Plan as of December 31, 1996 and
1995, and the related statements of income and changes in plan equity for each
of the three years in the period ended December 31, 1996. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial condition of the Plan as of December 31,
1996 and 1995, and the income and changes in plan equity for each of the three
years in the period ended December 31, 1996, in conformity with generally
accepted accounting principles.
S/Grant Thornton LLP
GRANT THORNTON LLP
Boston, Massachusetts
April 7, 1997
F-1
<PAGE>
Valley Gas Company Union Employees Savings Plan
STATEMENTS OF FINANCIAL CONDITION
December 31, 1996
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
ASSETS FUND FUND FUND FUND TOTAL
- ------ ------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments (Notes A and C)
Common Stock of
Valley Resources, Inc.
at Market Value 42,512
Shares (Cost $449,407.75) $478,260.00 $478,260.00
Other (Note E) $ 0.00 $ 0.00 $ 0.00 0.00 0.00
---------- ---------- ----------- ----------- -----------
Total Investments 0.00 0.00 0.00 478,260.00 478,260.00
Cash 37,954.00 51,373.47 205,907.73 5,041.57 300,276.77
Money Market 0.00 0.00 0.00 0.00 0.00
Interest Receivable 138.89 0.00 0.00 17.91 156.80
Dividends Receivable 0.00 230.59 1.49 7,758.44 7,990.52
Contributions Receivable 0.00 0.00 0.00 1,320.00 1,320.00
---------- ---------- ----------- ----------- -----------
Total Assets $38,092.89 $51,604.06 $205,909.22 $492,397.92 $788,004.09
========== ========== =========== =========== ===========
LIABILITIES AND EQUITY
Plan Equity - Including
Net Unrealized Deprecia-
tion or Appreciation of
Investments (Notes A and F) $38,092.89 $51,604.06 $205,909.22 $492,397.92 $788,004.09
---------- ---------- ----------- ----------- -----------
Total Liabilities
and Equity $38,092.89 $51,604.06 $205,909.22 $492,397.92 $788,004.09
========== ========== =========== =========== ===========
</TABLE>
The accompanying Notes are an integral part of these statements.
F-2
<PAGE>
Valley Gas Company Union Employees Savings Plan
STATEMENTS OF FINANCIAL CONDITION
December 31, 1995
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
ASSETS FUND FUND FUND FUND TOTAL
- ------ ------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments (Notes A and C)
Common Stock of
Valley Resources, Inc.
at Market Value 35,183
Shares (Cost $361,594.94) $382,615.13 $382,615.13
Other (Note E) $ 0.00 $46,619.77 $149,973.81 0.00 196,593.58
---------- ---------- ----------- ----------- -----------
Total Investments 0.00 46,619.77 149,973.81 382,615.13 579,208.71
Cash 158.80 119.00 522.70 0.00 800.50
Money Market 35,887.89 372.81 1,227.35 2,792.99 40,281.04
Interest Receivable 153.89 0.00 0.00 17.08 170.97
Dividends Receivable 0.00 216.48 6.93 6,332.94 6,556.35
Contributions Receivable 158.80 119.00 522.70 2,045.50 2,846.00
---------- ---------- ----------- ----------- -----------
Total Assets $36,359.38 $47,447.06 $152,253.49 $393,803.64 $629,863.57
========== ========== =========== =========== ===========
LIABILITIES AND EQUITY
Plan Equity - Including
Net Unrealized Deprecia-
tion or Appreciation of
Investments (Notes A
and F) $36,359.38 $47,447.06 $152,253.49 $393,803.64 $629,863.57
---------- ---------- ----------- ----------- -----------
Total Liabilities
and Equity $36,359.38 $47,447.06 $152,253.49 $393,803.64 $629,863.57
========== ========== =========== =========== ===========
</TABLE>
The accompanying Notes are an integral part of these statements.
F-3
<PAGE>
Valley Gas Company Union Employees Savings Plan
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For The Year Ended December 31, 1996
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
FUND FUND FUND FUND TOTAL
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Common Stock $ 0.00 $ 2,577.66 $ 20,299.10 $ 28,943.33 $ 51,820.09
Interest 1,590.34 20.34 81.12 302.27 1,994.07
---------- ---------- ----------- ----------- -----------
Total Investment Income 1,590.34 2,598.00 20,380.22 29,245.60 53,814.16
Net Realized Gain/(Loss)
on Disposition of
Investments (Note G) 0.00 (193.35) 37,627.36 114.80 37,548.81
---------- ---------- ----------- ----------- -----------
Unrealized Appreciation
(Depreciation) of
Investments (Notes A
and F) 0.00 (564.40) (27,480.32) 7,832.06 (20,212.66)
---------- ---------- ----------- ----------- -----------
Contributions (Note A)
Participants 7,472.80 5,616.00 27,636.40 37,087.80 77,813.00
Valley Gas Company 29,155.00 29,155.00
---------- ---------- ----------- ----------- -----------
Total Contributions 7,472.80 5,616.00 27,636.40 66,242.80 106,968.00
---------- ---------- ----------- ----------- -----------
Miscellaneous 0.00 257.01 1,249.84 0.00 1,506.85
---------- ---------- ----------- ----------- -----------
Total Net Additions 9,063.14 7,713.26 59,413.50 103,435.26 179,625.16
---------- ---------- ----------- ----------- -----------
Withdrawals (6,773.39) (3,556.26) (6,839.37) (4,315.62) (21,484.64)
---------- ---------- ----------- ----------- -----------
Total Deductions (6,773.39) (3,556.26) (6,839.37) (4,315.62) (21,484.64)
---------- ---------- ----------- ----------- -----------
Net Increase (Decrease) 2,289.75 4,157.00 52,574.13 99,119.64 158,140.52
Plan Equity:
Beginning of Year 36,359.38 47,447.06 152,253.49 393,803.64 629,863.57
Inter-Plan/Inter-Fund
Transfers (556.24) 0.00 1,081.60 (525.36) 0.00
---------- ---------- ----------- ----------- -----------
End of Year $38,092.89 $51,604.06 $205,909.22 $492,397.92 $788,004.09
========== ========== =========== =========== ===========
</TABLE>
The accompanying Notes are an integral part of these statements.
F-4
<PAGE>
Valley Gas Company Union Employees Savings Plan
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For The Year Ended December 31, 1995
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
FUND FUND FUND FUND TOTAL
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 0.00 $2,429.00 $ 8,198.99 $ 23,396.30 $ 34,024.29
Interest 4,023.81 23.92 80.54 347.66 4,475.93
---------- ---------- ----------- ----------- -----------
Total Investment Income 4,023.81 2,452.92 8,279.53 23,743.96 38,500.22
Net Realized Gain/(Loss)
on Disposition of
Investments (Note G) 0.00 (26.62) 908.36 21.97 903.71
---------- ---------- ----------- ----------- -----------
Unrealized Appreciation
(Depreciation) of
Investments (Notes A
and F) 0.00 2,015.70 26,018.55 (29,049.06) (1,014.81)
---------- ---------- ----------- ----------- -----------
Contributions (Note A)
Participants 10,860.80 8,179.70 26,484.40 38,010.10 83,535.00
Valley Gas Company 27,510.00 27,510.00
---------- ---------- ----------- ----------- -----------
Total Contributions 10,860.80 8,179.70 26,484.40 65,520.10 111,045.00
---------- ---------- ----------- ----------- -----------
Miscellaneous 0.00 223.45 882.31 0.00 1,105.76
---------- ---------- ----------- ----------- -----------
Total Net Additions 14,884.61 12,845.15 62,573.15 60,236.97 150,539.88
---------- ---------- ----------- ----------- -----------
Withdrawals (79,419.58) (50.62) (4,332.82) (8,629.33) (92,432.35)
---------- ---------- ----------- ----------- -----------
Total Deductions (79,419.58) (50.62) (4,332.82) (8,629.33) (92,432.35)
---------- ---------- ----------- ----------- -----------
Net Increase (Decrease) (64,534.97) 12,794.53 58,240.33 51,607.64 58,107.53
---------- ---------- ----------- ----------- -----------
Plan Equity:
Beginning of Year 101,412.35 37,147.49 97,527.50 342,053.67 578,141.01
Inter-Plan/Inter-Fund
Transfers (518.00) (2,494.99) (3,514.34) 142.33 (6,385.00)
---------- ---------- ----------- ----------- -----------
End of Year $36,359.38 $47,447.03 $152,253.49 $393,803.64 $629,863.54
========== ========== =========== =========== ===========
</TABLE>
The accompanying Notes are an integral part of these statements.
F-5
<PAGE>
Valley Gas Company Union Employees Savings Plan
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For The Year Ended December 31, 1994
<TABLE>
<CAPTION>
GALAXY GALAXY
MONEY SHORT-TERM EQUITY VALLEY RESOURCES
MARKET BOND INCOME STOCK
FUND FUND FUND FUND TOTAL
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends $ 0.00 $ 1,668.83 $ 3,779.25 $ 17,939.08 $ 23,387.16
Interest 3,529.27 31.27 95.09 289.41 3,945.04
----------- ---------- ---------- ----------- -----------
Total Investment Income 3,529.27 1,700.10 3,874.34 18,228.49 27,332.20
Net Realized Gain/(Loss)
on Disposition of
Investments (Note G) 0.00 (241.15) 1,459.94 0.00 1,218.79
----------- ---------- ---------- ----------- -----------
Unrealized Appreciation
(Depreciation) of
Investments (Notes A
and F) 0.00 (1,637.70) (4,909.64) (30,159.06) (36,706.40)
----------- ---------- ---------- ----------- -----------
Contributions (Note A)
Participants 11,840.10 7,172.00 20,019.00 31,587.90 70,619.00
Valley Gas Company 29,008.00 29,008.00
----------- ---------- ---------- ----------- -----------
Total Contributions 11,840.10 7,172.00 20,019.00 60,595.90 99,627.00
----------- ---------- ---------- ----------- -----------
Miscellaneous 0.00 200.58 671.09 (30,597.71) (29,726.04)
----------- ---------- ---------- ----------- -----------
Total Net Additions 15,369.37 7,193.83 21,114.73 18,067.62 61,745.55
----------- ---------- ---------- ----------- -----------
Withdrawals 0.00 (10,057.26) (23,732.63) (2,692.19) (36,482.08)
----------- ---------- ---------- ----------- -----------
Total Deductions 0.00 (10,057.26) (23,732.63) (2,692.19) (36,482.08)
----------- ---------- ---------- ----------- -----------
Net Increase (Decrease) 15,369.37 (2,863.43) (2,617.90) 15,375.43 25,263.47
----------- ---------- ---------- ----------- -----------
Plan Equity:
Beginning of Year 86,327.98 40,250.42 89,311.86 337,525.68 553,415.94
Inter-Plan/Inter-Fund
Transfers (285.00) (239.50) 10,833.54 (10,847.44) (538.40)
----------- ---------- ---------- ----------- -----------
End of Year $101,412.35 $37,147.49 $97,527.50 $342,053.67 $578,141.01
=========== ========== ========== =========== ===========
</TABLE>
The accompanying Notes are an integral part of these statements.
F-6
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1996, 1995 and 1994
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Valley Gas Company Union Employees Savings Plan (the
"Plan"), have been prepared in accordance with generally accepted accounting
principles as applied to Employee Benefit Plans. The following description of
The Valley Gas Company Union Employees Savings Plan provides only general
information. Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
General
- -------
The plan is a defined contribution plan covering all employees of Valley Gas
Company who are members of the collective bargaining unit and satisfy the
eligibility requirements.
Contributions
- -------------
A member may authorize a Basic Employee Contribution from 1% to 12% with a
maximum contribution not to exceed $9,500 in any one year.
The employer shall contribute as of December 31, of each plan year from current
or accumulated net profits on behalf of each member participating of the Plan on
December 31, of each plan year, an amount equal to 50% of the employee
contribution made up to 4% of the employee's annual compensation.
Participant Accounts
- --------------------
Each participant's account is credited with the participant's contribution and
allocations of (a) the Company's contribution and, (b) plan earnings.
Allocations are based on participant earnings or account balances as defined.
The benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account. The plan administrator will pay
for substantially all expenses of the plan.
F- 7
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1996, 1995 and 1994
Vesting
- -------
Participants are immediately vested in their contribution plus actual earning
thereon. Vesting in the Company's matching and discretionary contribution
portion of their accounts plus actual earnings thereon is based on years of
continuous service. A participant is 100 percent vested after seven years of
credited service. If a participant terminates employment for any reason other
than disability or retirement, he will be entitled to the full amount of
contributions he has deposited plus a percentage of his account balance derived
from employer contributions based upon the following schedule:
Years of Service % Vested
---------------- --------
Less than 1 year -0-%
1 10
2 20
3 30
4 40
5 60
6 80
7 100
A member will become vested in the Company's matching contribution as a result
of disability, death or retirement in accordance with the above schedule.
Participant Loans Receivable
- ----------------------------
Member loans are not permitted.
Payments of Benefits
- --------------------
On termination of service due to disability, death or retirement, a participant
may elect to receive either a lump sum payment equal to the value of the
participants vested interest in his account, or equal quarterly or annual
installments over a period not to exceed the life expectancy of the member or
joint life expectancy of the member and spouse or other beneficiary.
Benefits are recorded when paid.
F-8
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1996, 1995 and 1994
Valuation of Investments
- ------------------------
Investments are held by a bank-administered trust fund and are stated at their
approximate current market value. The difference between current market value
and the cost of investments are reflected in the statement of income and changes
in plan equity as unrealized appreciation or (depreciation) of fair value of
investments.
Management Estimates
- --------------------
In preparing the financial statements in conformity to GAAP, management is
required to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
NOTE B - SUMMARY OF PLAN PROVISIONS
Effective Date: April 1, 1987.
Plan Year: January 1 through December 31.
Valuation Date: The Trustee will value the Fund on the last day of eac
quarter of each Plan year.
Plan Administrator: Valley Gas Company is the Plan's Administrator and will
determine the benefits payable.
Basis of Accounting: The financial statements of the Plan are prepared under
the accrual method of accounting.
Eligibility: Union employees are eligible for membership on either
January 1 or July 1 of each Plan year following the
date on which they have attained the age of 21 and
completion of one year of service.
Normal Retirement
Date: The normal retirement age or date will be a member's
65th birthday.
F-9
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
Forfeitures: A member who terminates his employment prior to
becoming eligible for benefits and does not have a 100%
vested right to Company contributions forfeits the
amounts not vested. Forfeitures of discretionary
employer contributions will be used to reduce matching
employee contributions thereafter required to be made
by the employer.
Plan Terminations: The employer may terminate the Plan at any time. The
Plan has no definite termination date. In the event of
termination of the Plan by the Employer all amounts
credited to participants accounts will become fully
vested.
NOTE C - INVESTMENTS
Investments
- -----------
Investments are comprised of the following funding options available to
participants of the Plan:
I. The Money Market Fund
An FDIC insured money market fund offered by Fleet National Bank. Rates
are set weekly based upon the average rate of ten of the largest money
market funds in the United States. The objective is to offer an
investment that will reflect the general level of interest rates on
short-term investments with little or no risk of loss of principal.
II. The Galaxy Short-Term Bond Fund
The Galaxy Short-Term Bond Fund's objective is to earn high current
income while preserving capital. Most of the Fund's assets are in U.S.
Government or corporate debt obligations rated in the top three
categories of Standard & Poor or Moody's Investors Service, or unrated
securities deemed to be of comparable quality. Average maturity of the
Fund's investments typically range from one to three years.
III. The Galaxy Equity Income Fund
The Galaxy Equity Income Fund's objective is to seek current income and
capital appreciation. The Fund primarily invests in common stock and
convertible securities. The Fund will seek to achieve a fund yield that
will generally exceed the yield of the Standard & Poor 500 by at least
30 percent.
F-10
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE C - INVESTMENTS - Continued
IV. The Valley Resources Stock Fund
A fund that invests exclusively in the common stock of Valley
Resources, Inc. - parent of Valley Gas Company.
A member shall direct the Trustee with respect to the investment of his
account in each fund. The plan administrator has investment discretion
attributable to employer contributions. Employer contributions are
invested in the Valley Resources stock fund. Dividends, interest and
contributions that have yet to be invested in that particular fund's
assets are temporarily invested in money market accounts.
The number of participants in each fund was as follows:
<TABLE>
<CAPTION>
December 31,
1996 1995
---- ----
<S> <C> <C>
Money Market Fund 11 12
Galaxy Short-Term Bond Fund 11 13
Galaxy Equity Income Fund 29 27
Valley Resources, Inc. Common Stock Fund 44 44
</TABLE>
The total number of participants in the Plan was less than the sum of the number
of participants shown above because many were participating in more than one
fund.
Amounts contributed to the participants' accounts by the Company are taxable to
the participants in the year of distribution. Contributions made by participants
are deductible for Federal income tax purposes up to specified limits.
NOTE D - TRANSFER OF PLAN ASSETS
On December 31, 1996, the Plan Administrator directed the sale of all plan
assets to be transferred via wire to the New York Life Benefits Services, Inc.
NYL Receipt Account. Prior to the transfer, these investments were converted to
cash. These funds were all received in the NYL Receipt Account on January 2,
1997. This transfer was made as a result of a change in custodianship of assets.
All assets were placed into like/kind New York Life funds.
F-11
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE E - INVESTMENTS - OTHER
<TABLE>
<CAPTION>
DECEMBER 31, 1995
-------------------------------
APPROXIMATE
MARKET
UNITS COST VALUE
-------------------------------
<S> <C> <C> <C>
The Galaxy Short-Term
Bond Fund 4,589 $ 46,055.37 $ 46,619.77
The Galaxy Equity
Income Fund 9,777 $122,493.49 $149,973.81
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1994
-------------------------------
APPROXIMATE
MARKET
UNITS COST VALUE
-------------------------------
<S> <C> <C> <C>
The Galaxy Short-Term
Bond Fund 3,756 $37,814.03 $36,362.73
The Galaxy Equity
Income Fund 7,888 $94,531.19 $95,992.96
</TABLE>
F-12
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE F - NET UNREALIZED APPRECIATION (DEPRECIATION) OF PLAN ASSETS
<TABLE>
<CAPTION>
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at Dec. 31, 1993 $ 186.40 $ 6,371.41 $ 80,228.31 $ 86,786.12
Change for the year 1994 (1,637.70) (4,909.64) (30,159.06) (36,706.40)
Balance at Dec. 31, 1994 (1,451.30) 1,461.77 50,069.25 50,079.72
Change for the year 1995 2,015.70 26,018.55 (29,049.06) (1,014.81)
Balance at Dec. 31, 1995 564.40 27,480.32 21,020.19 49,064.91
Change for the year 1996 (564.40) (27,480.32) 7,832.06 (20,212.66)
Balance at Dec. 31, 1996 $ 0.00 $ 0.00 $ 28,852.25 $ 28,852.25
</TABLE>
NOTE G - NET REALIZED GAIN (LOSS) ON DISPOSITION OF PLAN ASSETS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
-------------------------------------------------------
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
Amount Realized $54,514.87 $210,572.73 $1,815.76 $266,903.36
Cost - Average 54,708.22 172,945.37 1,700.96 229,354.55
Net Realized Gain (Loss) $ (193.35) $ 37,627.36 $ 114.80 $ 37,548.81
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1995
-------------------------------------------------------
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
Amount Realized $1,279.60 $6,898.80 $1,556.94 $9,735.34
Cost - Average 1,306.22 5,990.44 1,534.97 8,831.63
Net Realized Gain (Loss) $ (26.62) $ 908.36 $ 21.97 $ 903.71
</TABLE>
F-13
<PAGE>
Valley Gas Company Union Employees Savings Plan
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1996, 1995 and 1994
NOTE G - NET REALIZED GAIN (LOSS) ON DISPOSITION OF PLAN ASSETS (Cont'd)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------
GALAXY GALAXY
SHORT-TERM EQUITY VALLEY RESOURCES
BOND INCOME STOCK
FUND FUND FUND TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
Amount Realized $ 9,880.00 $24,920.00 $ 0.00 $34,800.00
Cost - Average 10,121.15 23,460.06 0.00 33,581.21
Net Realized Gain (Loss) $ (241.15) $ 1,459.94 $ 0.00 $ 1,218.79
</TABLE>
NOTE H - TAX STATUS OF PLAN
The Internal Revenue Service has determined and informed the Company by a letter
dated October 20, 1988, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC).
F-14
<PAGE>
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 thereunto duly authorized.
VALLEY GAS COMPANY UNION EMPLOYEES
SAVINGS PLAN
S/K. W. Hogan
----------------------------------------
K. W. Hogan
Senior Vice President, CFO and Secretary
April 29, 1997
F-15
<PAGE>
Exhibit 24d
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Consent of Independent Certified Public Accountants
---------------------------------------------------
We have issued our report dated April 7, 1997, accompanying the financial
statements of the Valley Gas Company Union Employees Savings Plan contained in
the Annual Report on Form 11-K for the year ended December 31, 1996. We hereby
consent to the incorporation by reference of said report in the Valley Gas
Company Union Employees Savings Plan Registration Statement on Form S-8/S-3
(File No. 33-33575).
S/Grant Thornton LLP
GRANT THORNTON LLP
Boston, Massachusetts
April 28, 1997
