SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 31, 1999
Commission File Number 000-26591
RGC Resources, Inc.
(Successor to Roanoke Gas Company)
- -------------------------------------------------------------------------------
(Exact name of Registrant as Specified in its Charter)
VIRGINIA 54-1909697
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(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
519 Kimball Ave., N.E., Roanoke, VA 24016
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(Address of Principal Executive Offices) (Zip Code)
(540) 777-4427
- -------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
None
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(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.
Class Outstanding at December 31, 1999
- -------------------------- --------------------------------
Common Stock, $5 Par Value 1,838,161
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<TABLE>
<CAPTION>
RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
- ------------------------------------------------------------------------------
UNAUDITED
December 31, September 30,
ASSETS 1999 1999
====== ----------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
UTILITY PLANT:
Utility Plant in Service $75,700,706 $74,710,899
Accumulated Depreciation (27,095,025) (26,499,546)
----------------- ----------------
Utility Plant in Service, Net 48,605,681 48,211,353
Construction Work-In-Progress 1,201,729 1,425,918
----------------- ----------------
Utility Plant, Net 49,807,410 49,637,271
----------------- ----------------
NONUTILITY PROPERTY:
Propane 14,627,992 13,463,990
Accumulated Depreciation (4,240,764) (3,984,241)
----------------- ----------------
Nonutility Property, Net 10,387,228 9,479,749
----------------- ----------------
CURRENT ASSETS:
Cash and Cash Equivalents 714,083 139,501
Accounts Receivable - (Less Allowance for
Uncollectibles of $451,180 and $229,238,
Respectively) 11,593,263 6,306,117
Inventories 7,042,405 8,363,199
Prepaid Income Taxes 0 430,992
Deferred Income Taxes 2,133,275 1,962,448
Other 649,332 572,154
----------------- ----------------
Total Current Assets 22,132,358 17,774,411
----------------- ----------------
OTHER ASSETS 875,674 898,551
----------------- ----------------
TOTAL $83,202,670 $77,789,982
================= ================
</TABLE>
See condensed notes to condensed consolidated financial statements.
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2
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<TABLE>
<CAPTION>
RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
- -------------------------------------------------------------------------------
UNAUDITED
December 31, September 30,
LIABILITIES 1999 1999
=========== ----------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION:
Stockholders' Equity:
Common Stock - $5 Par Value; Authorized,
10,000,000 Shares; Issued and Outstanding
1,838,161, and 1,832,771 Shares, Respectively $9,190,805 $9,163,855
Preferred Stock - no par; Authorized
5,000,000 Shares; 0 Shares Issued 0 0
Capital in Excess of Par Value 9,576,794 9,489,551
Retained Earnings 10,148,718 9,501,517
----------------- ---------------
Total Stockholders' Equity 28,916,317 28,154,923
Long-Term Debt (Less Current Maturities) 23,330,266 23,336,614
----------------- ---------------
Total Capitalization 52,246,583 51,491,537
----------------- ---------------
CURRENT LIABILITIES:
Current Maturities of Long-Term Debt 24,723 24,282
Borrowings under Lines of Credit 10,607,000 6,363,000
Dividends Payable 511,965 495,055
Accounts Payable 8,356,103 9,206,173
Income Taxes Payable 567,654 0
Customers' Deposits 609,220 546,364
Accrued Expenses 4,354,161 4,605,376
Refunds From Suppliers - Due Customers 290,603 26,062
Overrecovery of Gas Costs 1,457,494 684,155
----------------- ---------------
Total Current Liabilities 26,778,923 21,950,467
----------------- ---------------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred Income Taxes 3,773,290 3,934,489
Deferred Investment Tax Credits 403,874 413,489
----------------- ---------------
Total Deferred Credits and Other Liabilities 4,177,164 4,347,978
----------------- ---------------
TOTAL $83,202,670 $77,789,982
================= ===============
</TABLE>
See condensed notes to condensed consolidated financial statements.
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3
<PAGE>
<TABLE>
<CAPTION>
RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE-MONTH PERIODS
ENDED DECEMBER 31, 1999 AND 1998
- ----------------------------------------------------------------------------------------
UNAUDITED
Three Months Ended
December 31,
1999 1998
-------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Gas utilities $15,277,606 $14,029,259
Propane operations 3,142,087 2,414,933
-------------- ---------------
Total operating revenues 18,419,693 16,444,192
-------------- ---------------
COST OF GAS:
Gas utilities 9,613,596 8,721,647
Propane operations 1,492,873 1,101,766
-------------- ---------------
Total cost of gas 11,106,469 9,823,413
-------------- ---------------
OPERATING MARGIN 7,313,224 6,620,779
-------------- ---------------
OTHER OPERATING EXPENSES:
Gas utilities:
Other operations 1,963,382 1,960,828
Maintenance 306,467 308,721
Taxes - general 691,668 624,596
Taxes - income 480,482 405,254
Depreciation and amortization 814,894 753,718
Propane operations (including taxes
- income of $160,787 and $109,644,
respectively) 1,310,074 1,122,948
-------------- ---------------
Total other operating expenses 5,566,967 5,176,065
-------------- ---------------
OPERATING EARNINGS 1,746,257 1,444,714
-------------- ---------------
OTHER INCOME (DEDUCTIONS):
Gas Utilities, net 45,165 29,773
Propane and other operations, net (3,180) 39,666
Taxes - income (15,212) (10,449)
-------------- ---------------
Total other income 26,773 58,990
-------------- ---------------
EARNINGS BEFORE INTEREST CHARGES 1,773,030 1,503,704
-------------- ---------------
INTEREST CHARGES:
Gas utilities:
Long-term debt 395,025 392,160
Other interest 119,407 94,960
Propane operations 99,433 59,825
-------------- ---------------
Total interest charges 613,865 546,945
-------------- ---------------
NET EARNINGS $1,159,165 $956,759
============== ===============
BASIC AND DILUTED EARNINGS PER COMMON SHARE $0.63 $0.53
============== ===============
</TABLE>
See condensed notes to condensed consolidated financial statements.
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4
<PAGE>
<TABLE>
<CAPTION>
RGC RESOURCES, INC. AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS
ENDED DECEMBER 31, 1999 AND 1998
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UNAUDITED
Three Months Ended
December 31,
1999 1998
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<S> <C> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $1,159,165 $956,759
Adjustments to reconcile net earnings to net cash
(used in) operating activities:
Depreciation and amortization 1,150,414 1,016,342
Loss (Gain) on disposal of property 16,280 (1,652)
Deferred taxes and investment tax credits (341,640) (201,822)
Changes in assets and liabilities which used
cash, exclusive of changes and noncash
transactions shown separately (3,022,556) (4,297,501)
------------- ------------
Net cash used in operating activities (1,038,337) (2,527,874)
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to utility plant and nonutility property (2,245,863) (2,785,282)
Cost of removal of utility plant, net (4,890) (10,834)
Proceeds from sales of assets 6,441 15,509
------------- ------------
Net cash used in investing activities (2,244,312) (2,780,607)
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Retirement of long-term debt and capital leases (5,907) 0
Net borrowings under lines of credit 4,244,000 5,590,000
Cash dividends paid (495,055) (476,140)
Proceeds from issuance of stock 114,193 174,499
Net cash provided by financing
activities 3,857,231 5,288,359
------------- ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 574,582 (20,122)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 139,501 84,037
------------- ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $714,083 $63,915
============= ============
SUPPLEMENTAL INFORMATION:
Interest paid $925,392 $890,153
Income taxes refunded, net $(525) $(8,346)
</TABLE>
See condensed notes to condensed consolidated financial statements.
5
<PAGE>
RGC RESOURCES, INC. AND SUBSIDIARIES
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CONDENSED NOTES TO CONDENSED FINANCIAL STATEMENTS
- -------------------------------------------------
UNAUDITED
- ---------
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting of
only normal recurring accruals) necessary to present fairly the Company's
financial position as of December 31, 1999 and September 30, 1999, and
the results of its operations and its cash flows for the three months
ended December 31, 1999 and 1998. The results of operations for the three
months ended December 31, 1999 are not indicative of the results to be
expected for the fiscal year ending September 30, 2000.
2. The condensed consolidated financial statements and condensed notes are
presented as permitted by Form 10-Q and do not contain certain information
included in the Company's annual consolidated financial statements and
notes thereto.
3. Quarterly earnings are affected by the highly seasonal nature of the
business as variations in weather conditions generally result in greater
earnings during the winter months.
4. In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities, effective for
all fiscal quarters of fiscal years beginning after June 15, 1999. In June
1999, the FASB issued SFAS No. 137 which deferred the effective date of
SFAS No 133 to all fiscal quarters of fiscal years beginning after June 15,
2000. SFAS No. 133 establishes accounting and reporting standards for
derivative instruments, including certain derivative instruments embedded
in other contracts, and for hedging activities. It requires the recognition
of all derivative instruments as assets or liabilities in the Company's
balance sheet and measurement of those instruments at fair value. The
accounting treatment of changes in fair value is dependent upon whether or
not a derivative instrument is designated as a hedge and if so, the type of
hedge. The Company has entered from time to time into arrangements for
hedging the price of natural gas and propane gas for the purpose of
providing price stability during the winter months. The Company has not
fully analyzed the impact of the provisions of FAS No. 133 on the Company's
financial statements.
5. Effective January 14, 2000, the Company acquired Cox Heating and Cooling,
Inc., a provider of sales, installation and service for heating,
ventilation and air conditioning equipment in West Virginia. The
acquisition was accounted for by the purchase method of accounting with a
total purchase price of approximately $985,000 in stock and cash, with an
additional earn out provision.
6. Earnings per common share are based on the weighted average number of
shares outstanding during each period (1,835,972 and 1,800,690 for the
three-month periods
6
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RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
CONDENSED NOTES TO CONDENSED FINANCIAL STATEMENTS
- -------------------------------------------------
UNAUDITED
- ---------
ended December 31, 1999 and 1998, respectively) and the weighted average
number of shares outstanding assuming dilution (1,841,890 and 1,803,582 for
the three-month periods ended December 31, 1999 and 1998, respectively).
The difference between the weighted average number of shares for the
calculation of basic and diluted earnings per share relates to the dilutive
effect associated with the assumed issuance of stock options as calculated
using the Treasury Stock method.
7. Both Roanoke Gas Company and Bluefield Gas Company, subsidiaries of RGC
Resources, Inc., operated manufactured gas plants (MGPs) as a source of
fuel for lighting and heating until the early 1950's. A by-product of
operating MGPs was coal tar, and the potential exists for on-site tar waste
contaminants at the former plant sites. The extent of contaminants at these
sites, if any, is unknown at this time. An analysis at the Bluefield Gas
Company site indicates some soil contamination. The Company, with
concurrence of legal counsel, does not believe any events have occurred
requiring regulatory reporting. Further, the Company has not received any
notices of violation or liabilities associated with environmental
regulations related to the MGP sites and is not aware of any off-site
contamination or pollution as a result of prior operations. Therefore, the
Company has no plans for subsurface remediation at the MGP sites. Should
the Company eventually be required to remediate either site, the Company
will pursue all prudent and reasonable means to recover any related costs,
including insurance claims and regulatory approval for rate case
recognition of expenses associated with any work required. A stipulated
rate case agreement between the Company and the West Virginia Public
Service Commission recognized the Company's right to defer MGP clean-up
costs, should any be incurred, and to seek rate relief for such costs. If
the Company eventually incurs costs associated with a required clean-up of
either MGP site, the Company anticipates recording a regulatory asset for
such clean-up costs to be recovered in future rates. Based on anticipated
regulatory actions and current practices, management believes that any
costs incurred related to this matter will not have a material effect on
the Company's financial condition or results of operations.
7
<PAGE>
RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ---------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
Results of Operations and Financial Condition
Consolidated net earnings for the three-month period ended December 31, 1999 was
$1,159,165 compared to $956,759 for the same period last year.
The operating margin increased $692,445, or 10.5 percent, in the current quarter
from the same period last year. Temperatures averaged 16 percent warmer than
normal during the quarter, yet the current quarter was still slightly colder
than the same period last year. Natural gas margins increased $356,398, or 6.7
percent, on increased volumes of 147,837 dekatherms. Approximately half of the
margin increase resulted from increases in customer base charges implemented
with new rates placed into effect in March 1999 with the remainder of the
increase coming from higher sales volumes. Propane margins increased $336,047,
or 25.6 percent, on 285,571 gallons more in sales. Customer growth continues to
fuel the increase in propane sales with total propane customers increasing by 16
percent over the same quarter last year.
Other operations expenses and maintenance expenses for the current quarter were
comparable to the same period last year. General taxes increased 10.7 percent
from last year as revenue-sensitive taxes followed a 9 percent increase in
natural gas revenues. Capital expenditures for adding new customers to the
natural gas distribution system and renewing older facilities have increased
depreciation expense over last year's levels. Propane operations reflected an
increase in expenses of $187,126, or 16.6 percent with increases in depreciation
and property taxes resulting from the continued growth in customers in the
Company's propane subsidiary, increases in delivery costs related to the
delivery of more propane gallons and higher income taxes related to greater
pretax income generated from propane operations. Interest charges increased as
the Company's average total debt position rose to finance growth in the propane
operations and the Company's renewal program in the natural gas operations.
The three-month earnings presented herein should not be considered as reflective
of the Company's consolidated financial results for the fiscal year ending
September 30, 2000. The total revenues during the first three months reflect
higher billings due to the weather sensitive nature of the gas business.
Improvement or decline in earnings depends primarily on temperature and weather
conditions during the remaining winter months. Furthermore, as the warm weather
has significantly impacted the first quarter's results of operations for a
second consecutive year, management is implementing an expense reduction program
over the remaining nine months. This plan is similar to the austerity plan
implemented last year as a result of the warm winter. All nonessential expense
budgets have been reduced with a strong emphasis on using expense reductions to
help offset the impact of weather. Critical operations and safety will remain a
top priority.
8
<PAGE>
RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ---------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
Regulatory Affairs
The Virginia State Corporation Commission authorized Roanoke Gas Company to
convert its billing method from volumetric to thermal value billing beginning in
October 1999. Therm billing has become the standard throughout the natural gas
industry because it provides consistent billing units as gas flows from the
production well to the individual customer's meter. Therm billing allows Roanoke
Gas Company to bill customers for the energy value consumed and helps to
eliminate fluctuations caused by the chemical makeup of the gas supply. As a
result of the change to therm billing for Roanoke Gas Company, RGC Resources,
Inc. began reporting natural gas sales and purchases activities in dekatherms
(DTH). All prior year sales data has been restated from MCFs to DTHs for
purposes of providing comparability between years.
Acquisitions
Effective January 14, 2000, RGC Resources, through its wholly-owned subsidiary
RGC Ventures, Inc., acquired Cox Heating and Cooling, Inc., a provider of sales,
installation and service for heating, ventilation and air conditioning equipment
in West Virginia. The newly acquired entity will do business as Highland/Cox
Heating and Cooling. The acquisition will be accounted for by the purchase
method of accounting with a total purchase price of approximately $985,000 in
stock and cash, with an additional earn out provision.
Year 2000
RGC Resources, Inc. successfully made the transition to the Year 2000 with no
Y2K system problems. The advanced preparation performed in identifying all of
the Company's critical systems allowed for the testing of the systems and
remediation of any non-compliance problems. Through the end of December 1999,
the Company has spent approximately $100,000 on Year 2000 remediation
activities.
Environmental Issues
Both Roanoke Gas Company and Bluefield Gas Company, subsidiaries of RGC
Resources, Inc., operated manufactured gas plants (MGPs) as a source of fuel for
lighting and heating until the early 1950's. A by-product of operating MGPs was
coal tar, and the potential exists for on-site tar waste contaminants at the
former plant sites. The extent of contaminants at these sites, if any, is
unknown at this time. An analysis at the Bluefield Gas Company site indicates
some soil contamination. The Company, with concurrence of legal counsel, does
not believe any events have occurred requiring regulatory reporting. Further,
the Company has not received any notices of violation or liabilities associated
with environmental regulations related to the MGP sites and is not aware of any
off-site contamination or pollution as a result of prior operations. Therefore,
the Company has no plans for subsurface remediation at the MGP sites. Should the
Company eventually be required to remediate either site, the Company will pursue
all prudent and reasonable means to recover any related costs, including
insurance claims and regulatory approval for rate case recognition of expenses
associated with any work required. A stipulated rate case agreement between the
Company and the West Virginia Public Service Commission recognized
9
<PAGE>
RGC RESOURCES, INC. AND SUBSIDIARIES
- ------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ---------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
the Company's right to defer MGP clean-up costs, should any be incurred, and to
seek rate relief for such costs. If the Company eventually incurs costs
associated with a required clean-up of either MGP site, the Company anticipates
recording a regulatory asset for such clean-up costs to be recovered in future
rates. Based on anticipated regulatory actions and current practices, management
believes that any costs incurred related to this matter will not have a material
effect on the Company's financial condition or results of operations.
Forward-Looking Statements
From time to time, the Company may publish forward-looking statements relating
to such matters as anticipated financial performance, business prospects,
technological developments, new products, research and development activities
and similar matters. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. In order to comply with
the terms of the safe harbor, the Company notes that a variety of factors could
cause the Company's actual results and experience to differ materially from the
anticipated results or other expectations expressed in the Company's
forward-looking statements. The risks and uncertainties that may affect the
operations, performance, development and results of the Company's business
include the following: (i) frozen rates in both regulated jurisdictions; (ii)
earning on a consistent basis an adequate return on invested capital; (iii)
increasing expenses and labor costs and availability; (iv) price competition
from alternate fuels; (v) volatility in the price of natural gas and propane;
(vi) uncertainty in the projected rate of growth of natural gas and propane
requirements in the Company's service area; (vii) general economic conditions
both locally and nationally; and (viii) developments in electricity and natural
gas deregulation and associated industry restructuring. In addition, the
Company's business is seasonal in character and strongly influenced by weather
conditions. Extreme changes in winter heating degree days from the normal or
mean can have significant short-term impacts on revenues and gross margin.
10
<PAGE>
Part II - Other Information
Item 2. Changes in Securities.
Pursuant to the RGC Resources Restricted Stock Plan for Outside
Directors (the "Restricted Stock Plan"), 40% of the monthly retainer
fee of each non-employee director of the Company is paid in shares of
unregistered common stock and is subject to vesting and
transferability restrictions ("restricted stock"). A participant can,
subject to approval of the Board, elect to receive up to 100% of his
retainer fee in restricted stock. The number of shares of restricted
stock is calculated each month based on the closing sales price of the
Company's common stock on the Nasdaq- NMS on the first day of the
month. The shares of restricted stock are issued in reliance on
section 3(a)(11) and section 4(2) exemptions under the Securities Act
of 1993 (the "Act") and will vest only in the case of the
participant's death, disability, retirement or in the event of a
change in control of the Company. Shares of restricted stock will be
forfeited to the Company by the participant's voluntary resignation
during his term on the Board or removal for cause as a director.
During the quarter ended December 31, 1999, the Company issued a total
of 389 shares of restricted stock pursuant to the Restricted Stock
Plan as follows:
Investment Date Price Number of Shares
--------------- ----- ----------------
10-1-99 $20.062 131
11-1-99 $21.395 131
12-1-99 $21.313 127
Item 6. Exhibits and Report on Form 8-K.
(a) Exhibits
Exhibits 27 - Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three
months ended December 31, 1999.
11
<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.
RGC Resources, Inc.
Date: February 9, 2000 By: s/Roger L. Baumgardner
-------------------------
Roger L. Baumgardner
Vice President/Secretary and Treasurer
12
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM RGC
RESOURCES, INC.'S UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT FOR THE
QUARTER ENDED DECEMBER 31, 1999, AS SET FORTH IN THE COMPANY'S QUARTERLY REPORT
ON FORM 10-Q, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 49,807,410
<OTHER-PROPERTY-AND-INVEST> 10,387,228
<TOTAL-CURRENT-ASSETS> 22,132,358
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 875,674
<TOTAL-ASSETS> 83,202,670
<COMMON> 9,190,805
<CAPITAL-SURPLUS-PAID-IN> 9,576,794
<RETAINED-EARNINGS> 10,148,718
<TOTAL-COMMON-STOCKHOLDERS-EQ> 28,916,317
0
0
<LONG-TERM-DEBT-NET> 23,330,266
<SHORT-TERM-NOTES> 10,607,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 24,723
<OTHER-ITEMS-CAPITAL-AND-LIAB> 20,324,364
<TOT-CAPITALIZATION-AND-LIAB> 83,202,670
<GROSS-OPERATING-REVENUE> 18,419,693
<INCOME-TAX-EXPENSE> 480,482
<OTHER-OPERATING-EXPENSES> 16,192,954
<TOTAL-OPERATING-EXPENSES> 16,673,436
<OPERATING-INCOME-LOSS> 1,746,257
<OTHER-INCOME-NET> 26,773
<INCOME-BEFORE-INTEREST-EXPEN> 1,773,030
<TOTAL-INTEREST-EXPENSE> 613,865
<NET-INCOME> 1,159,165
0
<EARNINGS-AVAILABLE-FOR-COMM> 1,159,165
<COMMON-STOCK-DIVIDENDS> 511,965
<TOTAL-INTEREST-ON-BONDS> 110,938
<CASH-FLOW-OPERATIONS> (1,038,337)
<EPS-BASIC> 0.63
<EPS-DILUTED> 0.63
</TABLE>
