FORM U-3A-2
File No. 1-7924
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from
the Provisions of the Public Utility Holding Company Act of 1935
To be Filed Annually Prior to March 1
VALLEY RESOURCES, INC.
(Name of Company)
hereby files with the Securities Exchange Commission, pursuant to Rule
2, its statement claiming exemption as a holding company from the provisions
of the Public Utility Holding Company Act of 1935, claim for the following
information:
Item 1: Valley Resources, Inc., RI; Cumberland, Rhode Island, Holding Company.
Subsidiaries:
Valley Gas Company, RI; Cumberland, Rhode Island; gas distribu-
tion within Rhode Island.
Valley Appliance and Merchandising Company, RI; Cumberland,
Rhode Island; selling and leasing of merchandise.
Rhode Island Development and Exploration Company, RI; Cumber-
land, Rhode Island; an inactive company.
Valley Propane, Inc., RI; Cumberland, Rhode Island; selling of
propane gas.
Morris Merchants, Inc., MA; Canton, Massachusetts; a manufac-
turers' representative of gas-fired equipment, plumbing and
heating supplies.
Bristol and Warren Gas Company, RI; Bristol, Rhode Island; gas
distribution within Rhode Island.
The New England Gas Company, RI; Bristol, Rhode Island; an inactive
company.
Alternate Energy Corporation, RI; Cumberland, Rhode Island; sells,
installs and designs natural gas conversion systems and facilities.
<PAGE>
Form U-3A-2
File No. 1-7924
Page 2
Item 2: Valley Resources, Inc. (Holding Company)
Valley Gas Company, 1595 Mendon Road, Cumberland, Rhode Island; owns
gas manufacturing plant and gas distribution facilities all of which
are located in Rhode Island.
Bristol and Warren Gas Company, 100 Broad Common Road, Bristol, Rhode
Island; owns gas manufacturing plant and gas distribution facilities
all of which are located in Rhode Island.
Item 3: Valley Resources, Inc. (Holding Company)
Valley Gas Company:
(a) 6,392,146 Mcf natural or manufactured gas distributed at retail
in the State of Rhode Island generating revenues of $48,670,411
(b) None
(c) None
(d) 976,496 Mcf natural gas purchased outside the State of Rhode
Island generating cost of $2,118,324
Bristol and Warren Gas Company:
(a) 703,249 Mcf natural or manufactured gas distributed at retail in
the State of Rhode Island generating revenues of $5,596,493
(b) None
(c) None
(d) 103,260 Mcf natural gas purchased outside the State of
Rhode Island generating cost of $234,454
Item 4: Valley Resources, Inc. (Holding Company)
(a) None
(b) None
(c) None
(d) None
(e) None
<PAGE>
Exhibit A
Consolidating Statements of Income for the 12 Months Ended
December 31, 1998
Consolidating Balance Sheets at December 31, 1998
Exhibit B
Financial Data Schedule
Exhibit C
Not Applicable
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 25th day of February,
1999.
VALLEY RESOURCES, INC.
(Name of Claimant)
S/Kenneth W. Hogan
------------------------------------
By Kenneth W. Hogan
Senior Vice President, CFO and
Secretary
Attest:
S/Sharon Partridge
- --------------------------------------------------------------
Sharon Partridge, Assistant Vice President Finance & Treasurer
Name, title and address of officer to whom notices and correspondence con-
cerning this statement should be addressed:
S/K. W. Hogan
- -------------------------------------------------
K. W. Hogan Senior Vice President
(Name) (Title)
1595 Mendon Road, Cumberland, Rhode Island 02864
(Address)
<PAGE>
<TABLE>
Exhibit A
(Unaudited)
VALLEY RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
<CAPTION>
Appliance &
Valley Gas/Bristol & Contract Sales Propane & Corporate Reclass. &
Warren Gas Companies & Rentals Operations Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
ASSETS
Utility Plant $84,284,366 $ 84,284,366
Accumulated Depreciation 32,396,392 32,396,392
----------- ----------- ------------ ------------ ------------
Net Utility Plant 51,887,974 -0- -0- 51,887,974
----------- ----------- ------------ ------------ ------------
Leased Property-Net 2,023,431 -0- $ 31,451 2,054,882
----------- ----------- ------------ ------------ ------------
Nonutility Property-Net -0- $3,462,198 669,882 4,132,080
----------- ----------- ------------ ------------ ------------
Investment in Subsidiaries 32,447,099 ($32,447,099) -0-
Other Investments 1,402,576 -0- 253,819 1,656,395
----------- ----------- ------------ ------------ ------------
Total Investments 1,402,576 -0- 32,700,918 (32,447,099) 1,656,395
----------- ----------- ------------ ------------ ------------
Note Receivable -0- -0- 9,712,357 (9,712,357) -0-
----------- ----------- ------------ ------------ ------------
CURRENT ASSETS:
Cash (306,200) 777,062 504,204 975,066
Accounts Receivable 11,197,606 4,255,900 2,415,489 (6,440,842) 11,428,153
Deferred Fuel Costs 630,408 -0- -0- 630,408
Unbilled Gas Costs 1,979,508 -0- -0- 1,979,508
Fuel & Other Inventories 4,208,586 1,562,957 231,104 6,002,647
Prepayments & Other 773,895 69,963 24,545 868,403
Common Stock Held for
Drip -0- -0- 344,879 344,879
----------- ----------- ------------ ------------ ------------
Total 18,483,803 6,665,882 3,520,221 (6,440,842) 22,229,064
----------- ----------- ------------ ------------ ------------
DEFERRED DEBITS:
Prepaid Pensions 242,011 -0- 9,103,247 9,345,258
Other 11,233,212 66,604 331,979 34,087 11,665,882
----------- ----------- ----------- ------------ ------------
Total 11,475,223 66,604 9,435,226 34,087 21,011,140
----------- ----------- ----------- ------------ ------------
Total Assets $85,273,007 $10,194,684 $56,070,055 $(48,566,211) $102,971,535
=========== =========== ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit A
(Unaudited)
VALLEY RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
<CAPTION>
Appliance &
Valley Gas/Bristol & Contract Sales Propane & Corporate Reclass. &
Warren Gas Companies & Rentals Operations Eliminations Consolidated
LIABILITIES & CAPITALIZATION
<S> <C> <C> <C> <C> <C>
COMMON EQUITY:
Common Stock $17,256,100 $ 3,700 $ 4,996,628 ($17,263,400) $ 4,993,028
Paid in Capital 4,279,782 492,530 25,730,052 (5,711,253) 24,791,111
Retained Earnings 5,721,638 4,003,507 5,788,848 (9,355,228) 6,158,765
----------- ----------- ------------ ------------ ------------
Total 27,257,520 4,499,737 36,515,528 (32,329,881) 35,942,904
Less: Accts. Rec. ESOP -0- (2,712,357) (2,712,357)
----------- ----------- ------------ ------------ ------------
Total 27,257,520 4,499,737 36,515,528 (35,042,238) 33,230,547
----------- ----------- ------------ ------------ ------------
LONG-TERM DEBT:
First Mortgage Bonds:
8.0% Series 20,029,000 -0- -0- 20,029,000
7.7% Debentures 7,000,000 -0- 7,000,000 (7,000,000) 7,000,000
----------- ----------- ------------ ------------ ------------
Total 27,029,000 -0- 7,000,000 (7,000,000) 27,029,000
----------- ----------- ------------ ------------ ------------
Note Payable 2,400,000 -0- 2,548,849 4,948,849
----------- ----------- ------------ ------------ ------------
Total 29,429,000 -0- 9,548,849 (7,000,000) 31,977,849
----------- ----------- ------------ ------------ ------------
Oblig. Under Cap Lease 1,253,449 -0- 24,633 -0- 1,278,082
----------- ----------- ------------ ------------ ------------
Minority Interest (83,132) (83,132)
----------- ----------- ------------ ------------ ------------
CURRENT LIABILITIES:
Current Maturities-LT Debt -0- -0- 2,288,937 2,288,937
Note Payable 7,428,928 1,450,000 700,000 (2,178,928) 7,400,000
Oblig. Under Cap Lease 769,981 -0- 6,818 776,799
Accounts Payable 3,512,799 2,121,816 2,565,967 (2,787,931) 5,412,651
Security Deposits and
Refunds 987,106 -0- 6,750 993,856
Dividends Declared 583,307 491,008 1,156,193 (1,294,315) 936,193
Taxes Accrued (465,322) 285,743 (176,789) (356,368)
Other 1,195,798 40,610 232,649 (179,667) 1,289,390
----------- ----------- ------------ ------------ ------------
Total 14,012,597 4,389,177 6,780,525 (6,440,841) 18,741,458
----------- ----------- ------------ ------------ ------------
DEFERRED CREDITS:
Unamort Invest Credit 610,300 -0- -0- 610,300
Other 3,530,825 402,083 -0- 3,932,908
----------- ----------- ------------ ------------ ------------
Total 4,141,125 402,083 -0- -0- 4,543,208
----------- ----------- ------------ ------------ ------------
Def. Federal Inc Taxes 9,179,316 903,687 3,200,520 13,283,523
----------- ----------- ------------ ------------ ------------
Total Liab & Capital $85,273,007 $10,194,684 $ 56,070,055 ($48,566,211) $102,971,535
=========== =========== ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit A
(Unaudited)
VALLEY RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
<CAPTION>
Appliance &
Valley Gas/Bristol & Contract Sales Propane & Corporate Reclass. &
Warren Gas Companies & Rentals Operations Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Utility Gas Revenues $57,585,223 $57,585,223
Nonutility Revenues $19,449,524 $2,594,706 $ (143,122) 21,901,108
----------- ----------- ---------- ----------- -----------
Total 57,585,223 19,449,524 2,594,706 (143,122) 79,486,331
----------- ----------- ---------- ----------- -----------
OPERATING EXPENSES:
Cost of Gas Sold 30,086,415 30,086,415
Cost of Sales-
Nonutility 14,162,279 1,175,005 (105,359) 15,231,925
Operations 14,824,469 3,444,179 (231,275) (431,340) 17,606,033
Maintenance 1,586,505 -0- 77,331 (3,949) 1,659,887
Depreciation 2,733,123 500,156 86,011 (2,757) 3,316,533
Taxes-Other Than FIT 3,789,205 207,301 96,887 (726) 4,092,667
Taxes-Federal Income 318,599 446,367 490,484 24,328 1,279,778
----------- ----------- ----------- ----------- -----------
Total 53,338,316 18,760,282 1,694,443 (519,803) 73,273,238
----------- ----------- ----------- ----------- -----------
Operating Income 4,246,907 689,242 900,263 376,681 6,213,093
Equity in Earnings
of Subsidiaries 2,579,481 (2,579,481) -0-
Other Income-Before FIT 96,939 249,165 19,338 (32,230) 333,212
Fed Inc Tax-Net of ITC 6,274 -0- -0- -0- 6,274
----------- ----------- ----------- ----------- -----------
Total Income 4,337,572 938,407 3,499,082 (2,235,030) 6,540,031
----------- ----------- ----------- ----------- -----------
INTEREST CHARGES:
Long Term Debt 2,474,221 -0- -0- 3,535 2,477,756
Other 240,545 74,287 22,916 225,283 563,031
Capitalized Interest (1,469) -0- -0- -0- (1,469)
----------- ----------- ----------- ----------- -----------
Total 2,713,297 74,287 22,916 228,818 3,039,318
----------- ----------- ----------- ----------- -----------
Net Income $ 1,624,275 $ 864,120 $ 3,476,166 $(2,463,848) $ 3,500,713
=========== =========== =========== =========== ===========
Average Number of Common
Shares Outstanding 4,977,823
Basic Earnings Per Average
Common Share $0.70
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 102,971,535
<TOTAL-OPERATING-REVENUES> 79,486,331
<NET-INCOME> 3,500,713
</TABLE>
