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Previous: CARROLS CORP, 10-Q, 1996-08-13 |
Next: CASTLE A M & CO, 10-Q/A, 1996-08-13 |
<PAGE>
FORM 10-Q / A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Amendment No. 1 to QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
Commission file number: 1-7196
CASCADE NATURAL GAS CORPORATION
(Exact name of registrant as specified in its charter)
WASHINGTON 91-0599090
--------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
222 FAIRVIEW AVENUE NORTH, SEATTLE, WA 98109
-------------------------------------- -------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (206) 624-3900
<PAGE>
The undersigned registrant hereby amends Part I, Item 1 and Part II, Item 6 of
its Quarterly Report on Form 10-Q for the period ended June 30, 1996, as
follows:
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF NET EARNINGS
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------------- ---------------------------
Jun 30, 1996 Jun 30, 1995 Jun 30, 1996 Jun 30, 1995
------------ ------------ ------------ ------------
(thousands except per share data)
<S> <C> <C> <C> <C>
Operating revenues:
Gas sales $ 29,501 $ 32,206 $ 92,958 $ 94,316
Transportation revenue 3,906 2,458 8,007 4,896
Other operating income 54 51 116 113
------------ ------------ ------------ ------------
33,461 34,715 101,081 99,325
Less: Gas purchases 18,720 19,521 56,120 56,774
Revenue taxes 2,314 2,312 6,897 6,644
------------ ------------ ------------ ------------
Operating margin 12,427 12,882 38,064 35,907
------------ ------------ ------------ ------------
Cost of operations:
Operating expenses 8,255 7,811 16,613 15,647
Depreciation and amortization 3,128 2,903 6,184 5,733
Property and payroll taxes 991 1,054 2,169 2,067
------------ ------------ ------------ ------------
12,374 11,768 24,966 23,447
------------ ------------ ------------ ------------
Earnings from operations 53 1,114 13,098 12,460
Less interest and other
deductions - net 2,524 2,366 4,974 4,669
------------ ------------ ------------ ------------
Earnings (loss) before income taxes (2,471) (1,252) 8,124 7,791
Income taxes (715) (369) 3,110 2,941
------------ ------------ ------------ ------------
Earnings (loss) before preferred dividends (1,756) (883) 5,014 4,850
Preferred dividends 131 136 262 272
------------ ------------ ------------ ------------
Net earnings (loss) $ (1,887) $ (1,019) $ 4,752 $ 4,578
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Common shares outstanding:
Weighted average 9,218 9,000 9,182 8,944
End of period 9,250 9,044 9,250 9,044
Net earnings (loss) per common share $ (0.20) $ (0.11) $ 0.52 $ 0.51
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Cash dividends per share $ 0.24 $ 0.24 $ 0.48 $ 0.48
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See Notes to Consolidated Condensed Financial Statements
2
<PAGE>
CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
Jun 30, 1996 Dec 31, 1995
------------ ------------
(dollars in thousands)
(unaudited)
ASSETS
<S> <C> <C>
Utility Plant, net after accumulated
depreciation of $145,244 and $138,831 $232,133 $ 224,093
Construction work in progress 13,699 14,957
------------ ------------
245,832 239,050
------------ ------------
Other Assets:
Investments 765 919
Notes receivable, less current maturities 1,997 2,426
------------ ------------
2,762 3,345
------------ ------------
Current Assets:
Cash and cash equivalents 3,835 2,197
Accounts receivable, less allowance of $290
and $425 for doubtful accounts 12,307 26,483
Current maturities of notes receivable 694 809
Materials, supplies and inventories 5,458 6,047
Prepaid expenses and other assets 2,471 2,353
------------ ------------
24,765 37,889
------------ ------------
Deferred Charges 17,389 16,614
------------ ------------
$290,748 $ 296,898
------------ ------------
------------ ------------
COMMON SHAREHOLDERS' EQUITY,
PREFERRED STOCKS AND LIABILITIES
Common Shareholders' Equity:
Common stock, par value $1 per share, authorized 15,000,000
shares, issued and outstanding 9,249,611 and 9,144,448 shares $ 9,250 $ 9,144
Additional paid-in capital 72,628 71,098
Retained earnings 9,621 9,297
------------ ------------
91,499 89,539
------------ ------------
Redeemable Preferred Stocks, aggregate redemption
amount of $7,103 and $7,103 6,851 6,851
------------ ------------
Long-term Debt 101,850 102,100
------------ ------------
Current Liabilities:
Notes payable 16,500 32,000
Accounts payable 10,339 16,392
Property, payroll and excise taxes 3,595 4,578
Dividends and interest payable 4,483 4,365
Other current liabilities 5,160 4,646
------------ ------------
40,077 61,981
------------ ------------
Deferred Credits:
Gas cost changes 24,151 10,934
Other 26,320 25,493
------------ ------------
50,471 36,427
------------ ------------
Commitments and Contingencies -- --
------------ ------------
$290,748 $ 296,898
------------ ------------
------------ ------------
</TABLE>
See Notes to Consolidated Condensed Financial Statements
3
<PAGE>
CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
-----------------------------
Jun 30, 1996 Jun 30, 1995
------------ ------------
<S> <C> <C>
(dollars in thousands)
Operating Activities:
Earnings before preferred dividends $ 5,014 $ 4,850
Adjustments to reconcile earnings before preferred
dividends to net cash provided by operating activities:
Depreciation 6,184 5,838
Amortization of gas cost changes 1,403 2,133
Write down of assets 154 -
Increase in deferred income taxes 551 1,139
Decrease in deferred investment tax credits (130) (120)
Cash provided (used) by changes in operating assets and liabilities:
Current assets and liabilities 8,315 6,970
Gas cost changes 11,814 561
Other deferrals and non-current liabilities (473) (641)
------------ ------------
Net cash provided by operating activities 32,832 20,730
------------ ------------
Investing Activities:
Capital expenditures (13,198) (15,320)
New consumer loans (497) (548)
Receipts on consumer loans 1,055 967
Purchase of securities available for sale - (802)
------------ ------------
Net cash used by investing activities (12,640) (15,703)
------------ ------------
Financing Activities:
Issuance of common stock 1,088 1,319
Redemption of preferred stock - (16)
Changes in notes payable, net (15,500) (5,500)
Dividends paid (4,142) (4,091)
------------ ------------
Net cash used by financing activities (18,554) (8,288)
------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents 1,638 (3,261)
Cash and Cash Equivalents:
Beginning of period 2,197 3,949
------------ ------------
End of period $ 3,835 $ 688
------------ ------------
------------ ------------
</TABLE>
See Notes to Consolidated Condensed Financial Statements
4
<PAGE>
CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
THREE AND SIX MONTH PERIODS ENDED JUNE 30, 1996
The preceding statements were taken from the books and records of the
Company and reflect all adjustments which are, in the opinion of management,
necessary for a fair statement of the results for the interim periods. All
adjustments, other than those specifically disclosed under "Management's
Discussion and Analysis of Financial Condition and Results of Operations", were
of a normal and recurring nature.
Because of the highly seasonal nature of the business, earnings or loss for
any portion of the year are disproportionate in relation to the full year.
Reference is directed to the Notes to Consolidated Financial Statements
contained in the 1995 Annual Report on Form 10-K and comments included therein
under "Management's Discussion and Analysis of Financial Condition and Results
of Operations".
5
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. Exhibits
No. Description
-- ------------
12 Computation of Ratio of Earnings to Fixed Charges
27 Financial Data Schedule UT
b. Reports on Form 8-K:
No reports were filed on Form 8-K during the quarter.
6
<PAGE>
SIGNATURE
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.
CASCADE NATURAL GAS CORPORATION
(Registrant)
By: /s/ J. D. Wessling
----------------------------------------------------------------
J. D. Wessling Vice President - Finance, Chief Financial Officer
Date: August 13, 1996
7
<PAGE>
EXHIBIT 12
CASCADE NATURAL GAS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED DIVIDEND REQUIREMENTS
<TABLE>
<CAPTION>
Twelve Months Ended
June 30 Year Ended December 31
-------------------- -----------------------------------------------------------
1996 1995 1995 1994 1993 1992 1991
-------- ------ ------ ------ ------ ------- ------
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Fixed charges, as defined:
Interest expense $ 10,111 9,206 9,938 8,090 7,038 7,478 $ 7,793
Amortization of debt issuance expense 609 600 606 593 562 402 362
-------- ------ ------ ------ ------ ------- ------
Total fixed charges 10,720 9,806 10,544 8,683 7,600 7,880 $ 8,155
-------- ------ ------ ------ ------ ------- ------
Earnings, as defined:
Earnings before preferred dividends 7,896 7,074 7,732 5,760 9,103 4,843 $ 7,651
Add (deduct):
Income taxes 4,678 4,292 4,508 3,505 5,224 2,817 4,206
Cumulative effect of change
in accounting method - - - - (209) - -
Fixed charges 10,720 9,806 10,544 8,683 7,600 7,880 8,155
-------- ------ ------ ------ ------ ------- ------
Total earnings $ 23,294 21,172 22,784 17,948 21,718 15,540 $ 20,012
-------- ------ ------ ------ ------ ------- ------
Ratio of earnings to fixed charges 2.17 2.16 2.16 2.07 2.86 1.97 2.45
-------- ------ ------ ------ ------ ------- ------
-------- ------ ------ ------ ------ ------- ------
Fixed charges and preferred
dividend requirements:
Fixed charges $ 10,720 9,806 10,544 8,683 7,600 7,880 $ 8,155
Preferred dividend requirements 842 882 853 898 913 941 229
-------- ------ ------ ------ ------ ------- ------
Total $ 11,562 10,688 11,397 9,581 8,513 8,821 $ 8,384
-------- ------ ------ ------ ------ ------- ------
Ratio of earnings to fixed charges
and preferred dividend requirements 2.01 1.98 2.00 1.87 2.55 1.76 2.39
-------- ------ ------ ------ ------ ------- ------
-------- ------ ------ ------ ------ ------- ------
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF CASCADE NATURAL GAS CORPORATION, INCLUDED
IN THE QUARTERLY REPORT ON FORM 10-Q FOR THE SIX MONTHS ENDED JUNE 30, 1996, AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 245,832
<OTHER-PROPERTY-AND-INVEST> 2,762
<TOTAL-CURRENT-ASSETS> 24,765
<TOTAL-DEFERRED-CHARGES> 17,389
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 290,748
<COMMON> 9,250
<CAPITAL-SURPLUS-PAID-IN> 72,628
<RETAINED-EARNINGS> 9,621
<TOTAL-COMMON-STOCKHOLDERS-EQ> 91,499
6,851
0
<LONG-TERM-DEBT-NET> 101,850
<SHORT-TERM-NOTES> 16,500
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 74,048
<TOT-CAPITALIZATION-AND-LIAB> 290,748
<GROSS-OPERATING-REVENUE> 101,081
<INCOME-TAX-EXPENSE> 3,110
<OTHER-OPERATING-EXPENSES> 87,983
<TOTAL-OPERATING-EXPENSES> 87,983
<OPERATING-INCOME-LOSS> 13,098
<OTHER-INCOME-NET> (51)
<INCOME-BEFORE-INTEREST-EXPEN> 13,101
<TOTAL-INTEREST-EXPENSE> 4,923
<NET-INCOME> 5,014
262
<EARNINGS-AVAILABLE-FOR-COMM> 4,752
<COMMON-STOCK-DIVIDENDS> 4,427
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 32,832
<EPS-PRIMARY> 0.52
<EPS-DILUTED> 0.52
</TABLE>
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