UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 28, 1998
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WASHINGTON GAS LIGHT COMPANY
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(Exact name of registrant as specified in its charter)
District of Columbia and Virginia 1-1483 53-0162882
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1100 H Street, N.W., Washington, D.C. 20080
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (703) 750-4440
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NONE
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(Former name or former address, if changed since last report.)
<PAGE>
Item 5. Other Events
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Washington Gas Light Company (company) reported on October 28, 1998 that
for the fiscal year ended September 30, 1998, net income applicable to common
stock totaled $67.3 million, or $13.4 million lower than the results for the
same period last year. Basic and diluted earnings per average common share were
$1.54, or 31 cents lower than in fiscal year 1997. The following factors
contributed to the change in earnings:
* Lower Net Revenues. Net revenues declined $18 million from the previous year.
* Warmer weather was the primary reason for the decline in the company's
net revenues and earnings. Therms delivered to firm customers declined
because weather in fiscal year 1998 was 5.5 percent warmer than the
prior year. The weather was 5.1 percent warmer than normal in fiscal
year 1998.
* The addition of 20,980 customer meters (a 2.6% increase over the level
at the end of the prior year) partially offset the effects of warmer
weather.
* Increased Operation & Maintenance Expenses. Operation and maintenance expenses
rose by $3.7 million in fiscal year 1998. The primary factors include:
* Technology initiatives, including substantial progress toward
implementing programmatic solutions to challenges presented by date
sensitive devices and systems which must be addressed before December
31, 1999, caused fiscal year 1998 expenses to increase by $8.6 million
over the prior year's level.
* The company wrote off a regulatory asset associated with Post
Retirement Benefits Other Than Pensions of $1.6 million. This charge
is expected to be non-recurring.
* Labor costs were down in fiscal year 1998 versus the prior year
because of greater operating efficiencies and the impact of fewer
employees.
* Other Income-Net Increased by $3.5 Million. This amount includes a $1.6
million after-tax gain from the sale of the company's propane assets and an
additional $1.6 million after-tax gain from the sale of certain venture
capital funds. The company's unregulated businesses, which include energy
marketing, design/build, merchandising and consumer financing, contributed
$640,000 to fiscal year 1998 net income compared to $1.25 million in the prior
year.
<PAGE>
* Other Factors. Increased investments in property, plant and equipment to meet
customer growth and to replace existing capacity resulted in a $3.5 million
increase in depreciation expense. Interest expense rose $3.6 million primarily
as a result of a greater level of debt outstanding.
For the three months ended September 30, 1998, the company recorded a
seasonal net loss applicable to common stock of $16.5 million. The basic and
diluted loss per average common share was 38 cents. This compares to a net loss
of $14.5 million, or 33 cents per average common share for the same quarter last
year. Increased operation expenses, reflecting $2.7 million of costs related to
technology initiatives and the $1.6 million pre-tax charge to write off the
regulatory asset discussed above, caused most of the variance from last year.
The unaudited consolidated statements of income for the three and twelve
month periods ended September 30, 1998 and September 30, 1997, and the
consolidated balance sheets as of September 30, 1998 and September 30, 1997
follow.
<PAGE>
WASHINGTON GAS LIGHT COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
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September 30, September 30,
1998 1997
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(Thousands, except per share data)
<S> <C> <C>
Operating Revenues $ 126,460 $ 107,389
Cost of Gas 69,862 51,185
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Net Revenues 56,598 56,204
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Other Operating Expenses
Operation 36,633 32,465
Maintenance 10,372 10,666
Depreciation and amortization 13,979 13,016
General taxes 11,443 11,913
Income taxes (9,059) (7,096)
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63,368 60,964
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Operating Income (Loss) (6,770) (4,760)
Other Income (Loss) - Net 16 (1,380)
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Income (Loss) Before Interest Expense (6,754) (6,140)
Interest Expense 9,447 8,044
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Net Income (Loss) (16,201) (14,184)
Dividends on Preferred Stock 334 333
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Net Income (Loss) Applicable to
Common Stock $ (16,535) $ (14,517)
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Average Common Shares Outstanding 43,780 43,700
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Earnings (Loss) per Average
Common Share - Basic $ (0.38) $ (0.33)
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Earnings (Loss) per Average
Common Share - Diluted $ (0.38) $ (0.33)
================== =================
Other Information
Gas Sales and Deliveries (thousands
of therms)
Gas Sold and Delivered
Firm 74,059 77,467
Interruptible 7,535 13,972
Electric Generation - -
Gas Delivered for Others
Firm 13,928 7,760
Interruptible 44,625 42,922
Electric Generation 43,218 38,510
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Total 183,365 180,631
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Degree Days 6 14
Customer Meters (end of period) 819,719 798,739
</TABLE>
<PAGE>
WASHINGTON GAS LIGHT COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Twelve Months Ended
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September 30, September 30,
1998 1997
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(Thousands, except per share data)
<S> <C> <C>
Operating Revenues $ 1,040,618 $ 1,055,754
Cost of Gas 575,786 572,925
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Net Revenues 464,832 482,829
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Other Operating Expenses
Operation 162,336 160,193
Maintenance 38,458 36,857
Depreciation and amortization 54,875 51,363
General taxes 69,178 71,277
Income taxes 38,006 47,864
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362,853 367,554
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Operating Income 101,979 115,275
Other Income - Net 4,369 886
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Income Before Interest Expense 106,348 116,161
Interest Expense 37,719 34,142
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Net Income 68,629 82,019
Dividends on Preferred Stock 1,331 1,331
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Net Income Applicable to
Common Stock $ 67,298 $ 80,688
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Average Common Shares Outstanding 43,691 43,706
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Earnings per Average
Common Share - Basic $ 1.54 $ 1.85
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Earnings per Average
Common Share - Diluted $ 1.54 $ 1.85
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Other Information
Gas Sales and Deliveries (thousands
of therms)
Gas Sold and Delivered
Firm 961,595 1,092,283
Interruptible 73,554 147,375
Electric Generation - 51
Gas Delivered for Others
Firm 110,542 27,574
Interruptible 243,166 185,487
Electric Generation 93,721 94,022
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Total 1,482,578 1,546,792
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Degree Days 3,662 3,876
Customer Meters (end of period) 819,719 798,739
</TABLE>
<PAGE>
Washington Gas Light Company
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30,
-------------------------------
1998 1997
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(Thousands)
<S> <C> <C>
ASSETS
Property, Plant and Equipment
At original cost $1,992,770 $1,846,471
Accumulated depreciation and amortization (673,269) (629,334)
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1,319,501 1,217,137
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Current Assets
Cash and cash equivalents 17,876 9,708
Accounts receivable, less reserve 109,325 84,654
Inventories and storage gas purchased 91,945 96,258
Deferred income taxes 16,337 17,447
Other prepayments 13,864 11,907
Other current assets 849 -
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250,196 219,974
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Deferred Charges and Other Assets 112,736 114,921
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Total $1,682,433 $1,552,032
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CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders' equity $607,755 $589,035
Preferred stock 28,424 28,430
Long-term debt 428,641 431,575
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1,064,820 1,049,040
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Current Liabilities
Current maturities of long-term debt 64,106 20,862
Notes payable 124,943 67,900
Accounts payable 116,770 113,168
Customer deposits and advance payments 19,454 16,662
Accrued taxes and interest 9,200 10,934
Other current liabilities 21,739 21,696
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356,212 251,222
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Deferred Credits 261,401 251,770
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Total $1,682,433 $1,552,032
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</TABLE>
<PAGE>
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
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(Registrant)
Date October 30, 1998 By
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Robert E. Tuoriniemi
Controller
