<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended December 31, 1994
----------------------------------------------------------
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
----------------------- --------------------
Commission file number 1-1483
--------------------------------------------------------
WASHINGTON GAS LIGHT COMPANY
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
District of Columbia and Virginia 53-0162882
- ------------------------------------------- -------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1100 H Street, N. W., Washington, D. C. 20080
- ------------------------------------------- -------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (703) 750-4440
-------------------------
NONE
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock $1.00 par value 21,211,798 January 31, 1995
- ---------------------------- ----------------------- ---------------------
Class Number of Shares Date
<PAGE> 2
WASHINGTON GAS LIGHT COMPANY
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. Financial Information:
Item 1. Financial Statements
Consolidated Balance Sheet -
December 31, 1994 and September 30, 1994................. 2
Consolidated Statement of Income -
Three Months Ended December 31, 1994 and 1993............ 3
Consolidated Statement of Cash Flows -
Three Months Ended December 31, 1994 and 1993............ 4
Notes to Consolidated Financial Statements................. 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............... 6-7
PART II. Other Information:
Item 5. Other Information................................... 8
Item 6. Exhibits and Reports on Form 8-K.................... 9
Signatures................................................... 9
</TABLE>
1
<PAGE> 3
WASHINGTON GAS LIGHT COMPANY
CONSOLIDATED BALANCE SHEET
(Unaudited)
<TABLE>
<CAPTION>
Dec. 31, Sept. 30,
1994 1994
----------- -----------
(Thousands)
<S> <C> <C>
ASSETS
PROPERTY, PLANT AND EQUIPMENT
At original cost.............................. $ 1,536,772 $ 1,516,201
Accumulated depreciation and amortization..... (529,674) (521,180)
----------- -----------
1,007,098 995,021
----------- -----------
CURRENT ASSETS
Cash and cash equivalents..................... 4,284 3,522
Accounts receivable, less reserve............. 169,547 74,754
Inventories and storage gas costs............. 65,117 74,958
Deferred income taxes......................... 13,815 14,369
Other prepayments, principally taxes.......... 10,598 7,842
----------- -----------
263,361 175,445
----------- -----------
DEFERRED CHARGES AND OTHER ASSETS............... 155,445 162,488
----------- -----------
TOTAL.................................... $ 1,425,904 $ 1,332,954
=========== ===========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders' equity.............. $ 504,638 $ 485,504
Preferred stock.......................... 28,494 28,498
Long-term debt........................... 339,031 342,270
----------- -----------
872,163 856,272
----------- -----------
CURRENT LIABILITIES
Current maturities of long-term debt..... 5,505 8,560
Notes payable............................ 94,870 52,912
Accounts and wages payable............... 87,439 84,961
Customer deposits and advance payments... 17,882 15,741
Accrued taxes and interest............... 40,598 15,171
Other current liabilities................ 25,251 23,578
----------- -----------
271,545 200,923
----------- -----------
DEFERRED CREDITS................................ 282,196 275,759
----------- -----------
TOTAL.................................... $1,425,904 $1,332,954
=========== ===========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
<PAGE> 4
WASHINGTON GAS LIGHT COMPANY
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------
Dec. 31, 1994 Dec. 31, 1993
------------- --------------
(Thousands, Except Per Share Data)
<S> <C> <C>
OPERATING REVENUES............................. $ 242,915 $ 271,222
Cost of Gas.................................... 116,118 135,683
------------ --------------
NET REVENUES................................... 126,797 135,539
------------ --------------
OTHER OPERATING EXPENSES
Operation............................... 41,609 42,762
Maintenance............................. 7,849 8,460
Depreciation and amortization........... 11,406 10,350
General taxes........................... 17,146 17,636
Income taxes............................ 15,398 18,624
----------- ------------
93,408 97,832
----------- ------------
OPERATING INCOME............................... 33,389 37,707
Other Income - Net............................. 2,461 1,025
----------- ------------
INCOME BEFORE INTEREST EXPENSE................. 35,850 38,732
Interest Expense............................... 8,124 8,480
----------- ------------
NET INCOME..................................... 27,726 30,252
Dividends on Preferred Stock................... 333 333
----------- ------------
NET INCOME APPLICABLE TO COMMON STOCK.......... $ 27,393 $ 29,919
=========== ============
AVERAGE COMMON SHARES OUTSTANDING.............. 21,143 20,786
EARNINGS PER AVERAGE SHARE OF COMMON STOCK
(See Exhibit 11 for computation of fully
diluted earnings per average share)..... $ 1.30 $ 1.44
=========== ============
DIVIDENDS DECLARED PER COMMON SHARE............ $ .555 $ .545
=========== ============
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE> 5
WASHINGTON GAS LIGHT COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------
Dec. 31, 1994 Dec. 31, 1993
------------- -------------
(Thousands)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income............................................... $ 27,726 $ 30,252
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization (a)............. 12,753 11,617
Deferred income taxes-net..................... (1,904) 2,887
Amortization of investment tax credits........ (252) (257)
Allowance for funds used during construction.. (245) (36)
Other noncash charges and credits-net......... 1,079 1,572
----------- ------------
39,157 46,035
Changes in assets and liabilities:
Accounts receivable and accrued utility
revenues.................................... (94,598) (119,750)
Storage gas and prepaid gas costs............. 9,427 19,067
Gas costs due from/to customers............... 4,054 449
Other prepayments, principally taxes.......... (2,756) 3,446
Accounts and wages payable.................... 4,621 4,260
Customer deposits and advance payments........ 2,141 1,110
Accrued taxes................................. 19,438 14,513
Accrued interest.............................. 5,989 2,798
Pipeline refunds due customers................ (2,639) 14,235
Deferred purchased gas costs.................. 11,520 4,498
Other-net..................................... 2,706 (2,706)
----------- ------------
Net Cash Used in Operating Activities..... (940) (12,045)
----------- ------------
FINANCING ACTIVITIES
Common stock issued............................... 3,376 3,362
Long-term debt issued............................. - 36,000
Long-term debt retired............................ (6,328) (35,686)
Notes payable - net............................... 41,958 48,022
Dividends on common and preferred stock........... (12,046) (11,647)
----------- ------------
Net Cash Provided by Financing Activities. 26,960 40,051
----------- ------------
INVESTING ACTIVITIES
Proceeds from sale of non-utility subsidiary...... 2,000 -
Capital expenditures.............................. (27,258) (27,425)
----------- ------------
Net Cash Used in Investing Activities..... (25,258) (27,425)
----------- ------------
INCREASE IN CASH AND CASH EQUIVALENTS............. 762 581
Cash and Cash Equivalents at Beginning of Period.. 3,522 4,865
----------- ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD........ $ 4,284 $ 5,446
=========== ============
(a) Includes amounts charged to other accounts.
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Income taxes paid............................... $ 1,194 $ 20
Interest paid................................... $ 2,018 $ 5,353
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
4
<PAGE> 6
WASHINGTON GAS LIGHT COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. In the opinion of the Company, the accompanying consolidated
financial statements reflect all adjustments (which include only normal
recurring adjustments) necessary to present fairly the results for such
periods. Reference is hereby made to the Company's Annual Report on Form
10-K for the fiscal year ended September 30, 1994.
B. Due to the seasonal nature of the Company's business, the results
of operations shown are not indicative of the results to be expected for
the fiscal year ended September 30, 1995.
C. The Company has three direct suppliers of pipeline services:
Columbia Gas Transmission Corporation (CGT), Transcontinental Gas Pipe
Line Corporation and CNG Transmission Corporation. Additionally, the
Company is served indirectly by pipelines located upstream to its three
direct pipeline suppliers.
In connection with the implementation of Federal Energy Regulatory
Commission (FERC) Order No. 636 in November 1993, pipelines are being
permitted recovery of prudently incurred costs associated with
implementing the unbundled service requirement of the Order (transition
costs).
On the basis of previous local regulatory proceedings involving the
recovery of gas purchased and related costs, the Company believes that
transition costs passed through from pipelines should be similarly
recoverable from its ratepayers and is currently in the process of
collecting amounts paid to the pipeline companies through the purchased
gas adjustment provision of the Company's retail rate schedules.
D. The Company's major supplier of pipeline and storage services,
CGT, as well as CGT's parent, The Columbia Gas System, Inc. (CGS),
continue to operate as debtors in possession under Chapter 11 of
Title 11 of the Bankruptcy Code. On November 16, 1994, the Bankruptcy
Court granted CGT and CGS a tenth extension of their rights to file plans
of reorganization under this code. The services received by the Company
from CGT have not been adversely affected by these bankruptcy
proceedings.
The Company is actively participating in these bankruptcy proceedings to
protect its interests through its membership on the official Customer
Committee. The Company continues to believe that an accurate prediction
as to the outcome or the timing of reorganization cannot be made at this
time. Nevertheless, the Company does believe that it will continue to
have access to reliable pipeline services, regardless of how CGT is
restructured.
E. On April 29, 1994, the Company's Virginia Division filed a request
with the State Corporation Commission of Virginia (SCC of VA) for a rate
increase of $15.7 million, or 6.4%. In this filing, the Company
requested recovery of the additional costs associated with implementing
Statement of Financial Accounting Standards No. 106, "Employers'
Accounting for Postretirement Benefits Other Than Pensions" (SFAS No.
106). The increase in rates that is likely to result from the final
decision by the SCC of VA in this proceeding will cause the Company to
record expenses applicable to SFAS No. 106 of approximately $5.5 million
in fiscal year 1995.
On September 27, 1994, the Company implemented rates designed to recover
the requested increase of $15.7 million. These rates are being collected
subject to refund and the Company is currently recording a provision for
rate refunds for the difference between the amount placed into effect and
the amount the Company expects to be granted by the SCC of VA. A final
order from the SCC of VA is expected on or about April 1, 1995.
5
<PAGE> 7
WASHINGTON GAS LIGHT COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
For the three months ended December 31, 1994, net income
applicable to common stock amounted to $27.4 million, which represented a
decrease of $2.5 million from the same period in the prior year. Earnings per
average common share were $1.30, or $.14 per average common share lower than
the quarter ended December 31, 1993. The decline was due primarily to
significantly warmer weather in the current quarter. During this period,
weather was 23.0% warmer than the same period last year and 14.5% warmer than
normal. Partially offsetting the adverse impact of the warmer weather was a
$1.9 million after-tax gain recorded in the current quarter from the sale of a
non-utility subsidiary.
Net revenues for the period declined $8.7 million (6.4%) from
the same period last year to $126.8 million. Therm sales to firm customers
dropped by 53.5 million therms (15.4%) due to the warmer weather in the current
quarter. Rate relief placed into effect in the Company's District of Columbia
and Maryland jurisdictions in August and December 1994, respectively, partially
offset the effect of the mild weather conditions. As discussed in Note E to
the Consolidated Financial Statements on page 5, new rates have been placed
into effect in the Commonwealth of Virginia, subject to refund, pending an
order from the SCC of VA. The additional net revenues recorded in the first
fiscal quarter related to this increase, net of the provision recorded for
expected rate refunds, are partially offset by expenses associated with the
implementation of SFAS No. 106, thereby reducing the effect on net income of
the increase in rates.
Excluding sales for electric generation, therm sales to
interruptible customers declined by 4.3 million therms (5.6%). Despite this
decline, gross margins on these sales increased slightly during the current
quarter due to an increased margin per therm sold. Margin sharing arrangements
in each of the Company's major jurisdictions minimize the effect on income of
changes in gross margins related to sales to the interruptible class. Under
these arrangements, a majority of the margins earned on sales to this class are
returned to firm customers in exchange for the transfer of a portion of the
fixed costs from the interruptible to the firm class.
Volumes transported for end-users increased by 10.5 million
therms to 16.3 million therms in the current quarter. All transportation
customers are currently being provided service under interruptible rate
schedules and the amounts recorded as revenue from volumes transported are
shared with firm customers in accordance with the above-mentioned margin
sharing arrangements. The effect on income of variations in transportation
volumes is therefore minimal.
Operation and maintenance expenses declined by $1.8 million
(3.4%) over the same period last year. The decline was due primarily to lower
labor charged to other operating expenses and lower expenses for uncollectible
accounts. These declines were partially offset by increased expenses related
to SFAS No. 106, primarily reflecting the portion of such expenses applicable
to the Company's Virginia jurisdiction.
Depreciation and amortization increased by $1.1 million (10.2%)
due primarily to depreciation on the Company's rising investment in depreciable
plant.
Other income - net increased by $1.4 million, due to the $1.9
million after-tax gain recorded on the sale of American Environmental Products,
Inc., a non-utility subsidiary. Partially offsetting this gain were lower
gains recorded on the sale of non-utility accounts receivable in the current
quarter.
6
<PAGE> 8
WASHINGTON GAS LIGHT COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Capital expenditures for the first three months of fiscal 1995
were $27.3 million and are budgeted to be $127.5 million for the year. To fund
construction expenditures and other capital requirements, the Company draws
upon both internal and external sources of cash. The Company's ability to
generate adequate cash internally depends upon a number of factors, including
the timing and amount of rate increases received and the level of therm sales.
The level of therm sales is almost exclusively dependent upon the number of
customer meters and the variability of the weather.
The Company's business is highly weather sensitive and seasonal.
Approximately 75% of the Company's therm sales (excluding sales made for
electric generation) are normally generated in the first and second fiscal
quarters. This seasonality causes short-term cash requirements to vary
significantly during the year. Cash requirements peak in the winter months
when accounts receivable, accrued utility revenues and storage gas costs are at
or near their highest levels. After the winter heating season, these assets
are converted into cash and are used to liquidate short-term debt and acquire
storage gas for the subsequent heating season.
Net cash used in operating activities was $940,000 during the first
three months of fiscal year 1995, as compared to $12.0 million in net cash used
in operating activities for the similar period of fiscal year 1994. The
improvement was primarily attributable to lower accounts receivable balances
resulting from lower therm sales and a greater overcollection of gas purchased
costs from the Company's firm customers. These factors were partially offset
by lower net income and reduced use of storage gas balances because of warmer
weather, and the absence of the receipt of pipeline refunds during the current
fiscal quarter.
The Company uses short-term debt, usually in the form of commercial
paper, to fulfill its seasonal cash requirements. Alternative seasonal sources
include unsecured lines of credit and two revolving credit agreements
maintained with a consortium of banks. The revolving credit agreements together
provide borrowing capacity of $150 million. These financing options may be
activated to support or replace the Company's commercial paper. Excluding
current maturities, the Company had $94.9 million of short-term debt
outstanding at December 31, 1994. These borrowings were composed primarily of
commercial paper and represent an increase of $42.0 million from the level at
September 30, 1994. This compares to $69.5 million of short-term debt
outstanding at December 31, 1993, an increase of $48.0 million from the level
at September 30, 1993.
The $6.3 million of long-term debt retired during the current
quarter primarily reflected Medium-Term Note maturities.
7
<PAGE> 9
PART II. OTHER INFORMATION
Item 5. Other Information
A. On December 22, 1994, the Company filed a universal shelf registration
statement with the Securities and Exchange Commission for the issuance of up to
a total of $200 million in debt and/or equity securities. The filing was made
to provide the Company with the flexibility to finance its construction program
and to take advantage of other market opportunities.
B. On January 27, 1995, Shenandoah Gas Company (Shenandoah), one of the
Company's distribution subsidiaries, filed a request with the Public Service
Commission of West Virginia (PSC of WVA) for a rate increase of $791,000, or
8.3%. The request included an overall rate of return of 10.44%, a return on
common equity of 12.50% and a 55.79% common equity ratio. In addition to
requesting the recovery of increased operating expenses and a return on
additional capital investment, Shenandoah requested recovery of costs
associated with SFAS No. 106. On January 30, 1995, the PSC of WVA issued an
order suspending the proposed rate increase through November 26, 1995. If a
final order has not been issued by that date, new rates may be placed into
effect, subject to refund.
C. On December 20, 1994, the Staff of the Public Service Commission of
Maryland (PSC of MD) issued a report containing its recommendations for changes
in regulation of gas service by local distribution companies in response to
industry deregulation resulting from the issuance of FERC Order No. 636. The
report contained a number of recommendations, a stated objective of which was
to "establish a regulatory framework which promotes the economically efficient
provision of gas services and which ensures an equitable distribution of the
benefits and risks associated with these services among the customers and
suppliers of those services." The report proposed a November 1, 1995
implementation date for unbundled services to large volume commercial and
industrial customers. The report further proposed that unbundled services be
provided on a pilot basis for all remaining small volume customers by November
1, 1996.
On January 10, 1995, the PSC of MD issued an order that established an
inquiry into the issue of regulatory reform as outlined in the Staff's report
and scheduled a hearing on this issue. The Company is not currently able to
predict the ultimate impact that any final order issued by the PSC of MD
relative to this proceeding will have on the Company.
D. On January 31, 1995, Moody's Investors Service announced upgrades in
its ratings for the Company's First Mortgage Bonds and unsecured debt. The
First Mortgage Bonds have been upgraded to Aa2 from Aa3 and the unsecured debt
has been upgraded to Aa3 from A1.
8
<PAGE> 10
PART II. OTHER INFORMATION (CONT'D)
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits Filed Herewith:
<TABLE>
<CAPTION>
Page in
Description 10-Q
----------- -------
<S> <C>
11 Computation of Earnings per Average Share of Common 11
Stock Assuming Full Dilution from Conversion of the
$4.60 and $4.36 Convertible Preferred Series.
27 Financial Data Schedule 12
99.0 Computation of Ratio of Earnings to Fixed Charges 13
99.1 Computation of Ratio of Earnings to Fixed Charges and
Preferred Stock Dividends 14
(b) Reports on Form 8-K:
No reports were filed on Form 8-K during the first fiscal
quarter of 1995.
</TABLE>
SIGNATURE
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.
WASHINGTON GAS LIGHT COMPANY
-----------------------------
(Registrant)
Date February 13, 1995 /s/ Frederic M. Kline
----------------------- -----------------------------
Controller
(Principal Accounting Officer)
9
<PAGE> 11
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
EX-11 Computation of Earnings per Average Share of Common
Stock Assuming Full Dilution from Conversion of the
$4.60 and $4.36 Convertible Preferred Series
EX-27 Financial Data Schedule
EX-99.0 Computation of Ratio of Earnings to Fixed Charges
EX-99.1 Computation of Ratio of Earnings to Fixed Charges
and Preferred Stock Dividends
10
</TABLE>
<PAGE> 1
EXHIBIT 11
WASHINGTON GAS LIGHT COMPANY
Computation of Earnings per Average Share of Common Stock
Assuming Full Dilution from Conversion of the $4.60 and $4.36
Convertible Preferred Series
--------------------------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------
Dec. 31, 1994 Dec. 31, 1993
------------- -------------
(Thousands, except per share data)
<S> <C> <C>
EARNINGS PER AVERAGE SHARE ASSUMING FULL DILUTION
- -------------------------------------------------
Net Income $ 27,726 $ 30,252
Dividends on preferred stock (excluding
dividends on convertible preferred stock) 330 330
------------ -----------
Net income applicable to common stock $ 27,396 $ 29,922
============ ===========
Average common shares outstanding on a fully
diluted basis assuming conversion of the
outstanding shares of the $4.60 and $4.36
convertible preferred stock on October 1
of each year based on the applicable
conversion price 21,156 20,805
=========== ===========
Earnings per average share of common stock
assuming full dilution $ 1.29 $ 1.44
============ ===========
</TABLE>
- -------------------------
Note: These calculations are submitted in accordance with
Securities Exchange Act of 1934 Release No. 9083 although not
required by footnote 2 to paragraph 14 of Accounting Principles Board
Opinion No. 15 because they result in dilution of less than 3%.
11
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the Income
Statement, Balance Sheet and Statement of Cash Flows and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> DEC-31-1994
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,004,084
<OTHER-PROPERTY-AND-INVEST> 3,014
<TOTAL-CURRENT-ASSETS> 263,361
<TOTAL-DEFERRED-CHARGES> 155,445
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,425,904
<COMMON> 21,200
<CAPITAL-SURPLUS-PAID-IN> 298,957
<RETAINED-EARNINGS> 184,481
<TOTAL-COMMON-STOCKHOLDERS-EQ> 504,638
0
28,494
<LONG-TERM-DEBT-NET> 339,031<F1>
<SHORT-TERM-NOTES> 13,005
<LONG-TERM-NOTES-PAYABLE> 187,390<F2>
<COMMERCIAL-PAPER-OBLIGATIONS> 81,865
<LONG-TERM-DEBT-CURRENT-PORT> 5,505
0
<CAPITAL-LEASE-OBLIGATIONS> 1,077
<LEASES-CURRENT> 1,077
<OTHER-ITEMS-CAPITAL-AND-LIAB> 452,289
<TOT-CAPITALIZATION-AND-LIAB> 1,425,904
<GROSS-OPERATING-REVENUE> 242,915
<INCOME-TAX-EXPENSE> 15,398
<OTHER-OPERATING-EXPENSES> 194,128
<TOTAL-OPERATING-EXPENSES> 209,526
<OPERATING-INCOME-LOSS> 33,389
<OTHER-INCOME-NET> 2,461
<INCOME-BEFORE-INTEREST-EXPEN> 35,850
<TOTAL-INTEREST-EXPENSE> 8,124
<NET-INCOME> 27,726
333
<EARNINGS-AVAILABLE-FOR-COMM> 27,393
<COMMON-STOCK-DIVIDENDS> 11,775
<TOTAL-INTEREST-ON-BONDS> 8,124<F3>
<CASH-FLOW-OPERATIONS> (940)
<EPS-PRIMARY> 1.30
<EPS-DILUTED> 1.29
<FN>
<F1>Represents total long-term debt including, $152,825 in First Mortgage Bonds,
$187,200 in medium-term notes, $190 in other long-term debt and $(1,184) in
unamortized premium and discount-net.
<F2>Includes $187,200 in medium-term notes.
<F3>Represents total interest expense, per the Statement of Income.
</FN>
</TABLE>
<PAGE> 1
EXHIBIT 99.0
WASHINGTON GAS LIGHT COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
TWELVE MONTHS ENDED DECEMBER 31, 1994
(Unaudited)
(Dollars in Thousands)
<TABLE>
<S> <C>
FIXED CHARGES:
Interest Expense................................................ $ 30,755
Amortization of Debt Premium, Discount and Expense.............. 356
Interest Component of Rentals................................... 20
------------
Total Fixed Charges................................. $ 31,131
============
EARNINGS:
Net Income...................................................... $ 57,933
Add:
Income Taxes Applicable to Operating Income......... 34,037
Income Taxes Applicable to Other Income - Net....... 803
Total Fixed Charges................................. 31,131
-----------
Total Earnings.................................................. $ 123,904
===========
Ratio of Earnings to Fixed Charges.............................. 4.0
===========
</TABLE>
13
<PAGE> 1
EXHIBIT 99.1
WASHINGTON GAS LIGHT COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
TWELVE MONTHS ENDED DECEMBER 31, 1994
(Unaudited)
(Dollars in Thousands)
<TABLE>
<S> <C>
FIXED CHARGES:
Interest Expense................................................ $ 30,755
Amortization of Debt Premium, Discount and Expense.............. 356
Interest Component of Rentals................................... 20
---------------
Total Fixed Charges........................... 31,131
Pre-tax Preferred Dividends..................................... 2,138
---------------
Total........................................................... $ 33,269
===============
Preferred Dividends............................................. $ 1,335
Effective Income Tax Rate....................................... .3755
Complement of Effective Income Tax Rate (1 - Tax Rate).......... .6245
Pre-Tax Preferred Dividends..................................... $ 2,138
===============
EARNINGS:
Net Income...................................................... $ 57,933
Add:
Income Taxes Applicable to Operating Income....... 34,037
Income Taxes Applicable to Other Income - Net..... 803
Total Fixed Charges............................... 31,131
---------------
Total Earnings.................................................. $ 123,904
===============
Ratio of Earnings to Fixed Charges and
Preferred Stock Dividends........................... 3.7
===============
</TABLE>
14
