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Previous: CENTURY PROPERTIES FUND XII, 10-Q, 1995-08-11 |
Next: AMERICAN CAPITAL HIGH YIELD INVESTMENTS INC, 497, 1995-08-11 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED June 30, 1995 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 0-8084
Connecticut Water Service, Inc.
(Exact name of registrant as specified in its charter)
Connecticut 06-0739839
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
93 West Main Street, Clinton, CT 06413
(Address of principal executive offices) (Zip Code)
(203) 669-8636
(Registrant's telephone number, including area code)
Not Applicable
(Former name, 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 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
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a count. Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
2,928,817
Number of shares of common stock outstanding, June 30, 1995
<PAGE> 2
CONNECTICUT WATER SERVICE, INC.
Financial Report
June 30, 1995 and 1994
TABLE OF CONTENTS
<TABLE>
<S> <C>
PART I, ITEM 1: FINANCIAL STATEMENTS
Consolidated Balance Sheets at June 30, 1995
and December 31, 1994 Page 3
Consolidated Statements of Capitalization at
June 30, 1995 and December 31, 1994 Page 4
Consolidated Statements of Income for Three Months
Ended June 30, 1995 and 1994 Page 5
Schedules of Operating Revenues, Taxes Other Than
Income and Other Income for Three Months
Ended June 30, 1995 and 1994 Page 6
Consolidated Statements of Income for Six Months
Ended June 30, 1995 and 1994 Page 7
Schedules of Operating Revenues, Taxes Other Than
Income and Other Income for Six Months
Ended June 30, 1995 and 1994 Page 8
Consolidated Statements of Income for Twelve Months
Ended June 30, 1995 and 1994 and for Twelve Months
Ended March 31, 1995 Page 9
Schedules of Operating Revenues, Taxes Other Than
Income and Other Income for Twelve Months
Ended June 30, 1995 and 1994 and for Twelve Months
Ended March 31, 1995 Page 10
Consolidated Statements of Retained Earnings for Three
Months Ended June 30, 1995 and 1994 Page 11
Consolidated Statements of Retained Earnings for Six
Months Ended June 30, 1995 and 1994 Page 11
Consolidated Statements of Retained Earnings for Twelve
Months Ended June 30, 1995 and 1994 Page 11
Consolidated Statements of Cash Flows for Six Months
Ended June 30, 1995 and 1994 Page 12
Notes to Consolidated Financial Statements Page 13
PART I, ITEM 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations Page 14
Signature Page Page 15
</TABLE>
<PAGE> 3
Page 3
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED BALANCE SHEETS
At June 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
June 30,
1995 Dec. 31,
ASSETS (Unaudited) 1994
----------- --------
(Thousands of dollars)
<S> <C> <C>
Utility Plant
Utility Plant $181,926 $181,079
Construction Work in Progress 4,266 3,369
Utility Plant Acquisition Adjustments (1,206) (1,206)
-------- --------
184,986 183,242
Accumulated Provision for Depreciation (43,939) (42,458)
-------- --------
Net Utility Plant 141,047 140,784
-------- --------
Investments 1,020 881
-------- --------
Current Assets
Cash 481 18
Accounts Receivable (Less Allowance, 1995- $139; 1994 - $149) 3,522 3,599
Accrued Unbilled Revenues 2,655 2,800
Prepayments and Other Current Assets 1,240 1,515
-------- --------
Total Current Assets 7,898 7,932
-------- --------
Deferred Charges
Unamortized Debt Issuance Expense 5,493 5,587
Taxes Recoverable Through Future Rates 9,200 9,200
Postretirement Benefits Other Than Pension Recoverable
Through Future Rates 757 757
Recoverable Contamination Clean-Up Costs 4,700 4,700
Prepaid Income Taxes on Contributions in Aid of Construction 507 450
Other Costs 1,020 950
-------- --------
Total Deferred Charges 21,677 21,644
-------- --------
Total Assets $171,642 $171,241
======== ========
CAPITALIZATION AND LIABILITIES
Capitalization (See accompanying statements)
Common Stockholders' Equity $ 49,181 $ 47,983
Preferred Stock 772 772
Long-Term Debt 54,470 54,600
-------- --------
Total Capitalization 104,423 103,355
-------- --------
Current Liabilities
Interim Bank Loans Payable 2,600 2,700
Current Portion of Preferred Stock 0 30
Accounts Payable and Accrued Taxes and Interest 5,673 7,279
Accrued Recoverable Contamination Clean-Up Costs 500 500
Other 1,664 1,544
-------- --------
Total Current Liabilities 10,437 12,053
-------- --------
Long-Term Liabilities
Accrued Recoverable Contamination Clean-Up Costs 2,607 2,811
Advances for Construction 12,779 12,099
Contributions in Aid of Construction 18,147 18,145
Deferred Federal Income Taxes 11,047 10,547
Unfunded Future Income Taxes 9,200 9,200
Unfunded Postretirement Benefits Other Than Pension 757 757
Unamortized Investment Tax Credits 2,245 2,274
-------- --------
Total Long-Term Liabilities 56,782 55,833
-------- --------
Total Capitalization and Liabilities $171,642 $171,241
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 4
Page 4
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF CAPITALIZATION
At June 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
June 30,
1995 Dec. 31,
(Unaudited) 1994
----------- --------
(Thousands of dollars)
<S> <C> <C>
Common Stockholders' Equity
Common Stock Without Par Value Authorized - 7,500,000 Shares;
Shares Issued and Outstanding: 1995 - 2,928,817; 1994 - 2,870,559 $ 41,448 $ 40,126
Stock Issuance Expense (1,183) (1,183)
Retained Earnings 8,916 9,040
-------- --------
Total Common Stockholders' Equity 49,181 47,983
-------- --------
Cumulative Preferred Stock of Connecticut Water Service, Inc.
Series A Voting, $20 Par Value; Authorized, Issued and
Outstanding 15,000 Shares, Redeemable at $21.00 Per Share 300 300
Series $.90 Non-Voting, $16 Par Value; Authorized 50,000 Shares
Issued and Outstanding 29,499 Shares, Redeemable at $16.00 Per Share 472 472
-------- --------
Total Preferred Stock of Connecticut Water Service, Inc. 772 772
-------- --------
Cumulative Preferred Stock of The Connecticut Water Company, with
Mandatory Redemption Provisions, Voting, $100 Par Value; Authorized
50,000 Shares, Issued and Outstanding:
4 3/4% Series: Shares - 1995 - 0; 1994 - 300 Shares 0 30
Current Portion of Preferred Stock 0 (30)
-------- --------
Total Preferred Stock of The Connecticut Water Company 0 0
-------- --------
Long-Term Debt
The Connecticut Water Company
First Mortgage Bonds
6.9% Series Q, due 2021 10,000 10,000
5.875% Series R, due 2022 14,870 15,000
6.65% Series S, due 2020 8,000 8,000
5.75% Series T, due 2028 5,000 5,000
5.3% Series U, due 2028 4,550 4,550
6.94% Series V, due 2029 12,050 12,050
-------- --------
Total Long-Term Debt 54,470 54,600
-------- --------
Total Capitalization $104,423 $103,355
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 5
Page 5
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994 Increase
(Unaudited) (Unaudited) (Decrease)
----------- ----------- ----------
(In thousands except per share amounts)
<S> <C> <C> <C>
Operating Revenues (See accompanying schedule) $9,179 $9,201 ($22)
------ ------ -----
Operating Expenses
Operation 3,251 3,436 (185)
Maintenance 432 457 (25)
Depreciation 812 770 42
Federal Income Taxes 929 831 98
Connecticut Corporation Business Taxes 248 230 18
Taxes Other Than Income Taxes
(See accompanying schedule) 1,418 1,469 (51)
------ ------ -----
Total Operating Expenses 7,090 7,193 (103)
------ ------ -----
Utility Operating Income 2,089 2,008 81
------ ------ -----
Other Income (Deductions)
Interest 34 24 10
Allowance for Funds Used During Construction 16 10 6
Preferred Stock Dividends of Subsidiary 0 0 0
Other (See accompanying schedule) 9 17 (8)
Taxes on Other Income 9 10 (1)
------ ------ -----
Total Other Income (Deductions) 68 61 7
------ ------ -----
Interest and Debt Expense
Interest on Long-Term Debt 865 887 (22)
Other Interest Charges 69 50 19
Amortization of Debt Expense 47 46 1
------ ------ -----
Total Interest and Debt Expense 981 983 (2)
------ ------ -----
Net Income 1,176 1,086 90
Preferred Stock Dividend Requirement 9 9 0
------ ------ -----
Net Income Applicable to Common Stockholders $1,167 $1,077 $90
====== ====== =====
Weighted Average Common Shares Outstanding 2,909 2,805 104
====== ====== =====
Earnings Per Average Common Share $ 0.40 $ 0.38 $0.02
====== ====== =====
Dividends Per Common Share $ 0.42 $ 0.41 $0.01
====== ====== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 6
Page 6
Connecticut Water Service, Inc. and Subsidiary
SCHEDULE OF OPERATING REVENUES, TAXES OTHER THAN INCOME
AND OTHER INCOME
For the Three Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994 Increase
(Unaudited) (Unaudited) (Decrease)
----------- ----------- ----------
(Thousands of dollars)
<S> <C> <C> <C>
Operating Revenues:
Residential $5,623 $5,662 ($39)
Seasonal 132 132 0
Commercial 1,116 1,127 (11)
Industrial 457 495 (38)
Public Authority 255 218 37
Metered Sales - Temporary and Non-Recurring 11 7 4
Private Fire 218 213 5
Public Fire 1,312 1,292 20
CWIP Surcharge 0 0 0
Other 35 35 0
------ ------ ----
Revenues Billed 9,159 9,181 (22)
Change in Revenues Accrued 20 20 0
------ ------ ----
Total Operating Revenue $9,179 $9,201 ($22)
====== ====== ====
Taxes - Other Than Income Taxes
Municipal Taxes $ 839 $ 893 ($54)
Payroll Taxes 120 114 6
Connecticut Gross Earnings Tax 459 462 (3)
------ ------ ----
Total Other Taxes $1,418 $1,469 ($51)
====== ====== ====
Other Income
Merchandising, Jobbing and Contracting - Net $ 3 $ 5 ($2)
Income from Lease of Other Physical Property - Net 5 6 (1)
Miscellaneous Non-Operating Income 2 7 (5)
Miscellaneous Income Deductions (1) (1) 0
------ ------ ----
Total Other Income $ 9 $ 17 ($8)
====== ====== ====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 7
Page 7
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
For the Six Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994 Increase
(Unaudited) (Unaudited) (Decrease)
----------- ----------- ----------
(In thousands except per share amounts)
<S> <C> <C> <C>
Operating Revenues (See accompanying schedule) $17,998 $18,065 ($67)
----------- ----------- ----------
Operating Expenses
Operation 6,307 6,553 (246)
Maintenance 851 887 (36)
Depreciation 1,625 1,540 85
Federal Income Taxes 1,696 1,617 79
Connecticut Corporation Business Taxes 448 441 7
Taxes Other Than Income Taxes
(See accompanying schedule) 2,897 2,908 (11)
------- ------- ----
Total Operating Expenses 13,824 13,946 (122)
------- ------- ----
Utility Operating Income 4,174 4,119 55
------- ------- ----
Other Income (Deductions)
Interest 76 48 28
Allowance for Funds Used During Construction 32 11 21
Preferred Stock Dividends of Subsidiary 0 (72) 72
Other (See accompanying schedule) 8 17 (9)
Taxes on Other Income 10 19 (9)
------- ------- ----
Total Other Income (Deductions) 126 23 103
------- ------- ----
Interest and Debt Expense
Interest on Long-Term Debt 1,732 1,746 (14)
Other Interest Charges 151 108 43
Amortization of Debt Expense 94 93 1
------- ------- ----
Total Interest and Debt Expense 1,977 1,947 30
------- ------- ----
Net Income 2,323 2,195 128
Preferred Stock Dividend Requirement 19 19 0
------- ------- ----
Net Income Applicable to Common Stockholders $ 2,304 $ 2,176 $ 128
======= ======= =====
Weighted Average Common Shares Outstanding 2,894 2,800 94
======= ======= =====
Earnings Per Average Common Share $ 0.80 $ 0.78 $0.02
======= ======= =====
Dividends Per Common Share $ 0.84 $ 0.82 $0.02
======= ======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 8
Page 8
Connecticut Water Service, Inc. and Subsidiary
SCHEDULE OF OPERATING REVENUES, TAXES OTHER THAN INCOME
AND OTHER INCOME
For the Six Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994 Increase
(Unaudited) (Unaudited) (Decrease)
----------- ----------- ----------
(Thousands of dollars)
<S> <C> <C> <C>
Operating Revenues:
Residential $11,235 $11,370 ($135)
Seasonal 264 264 0
Commercial 2,157 2,179 (22)
Industrial 898 919 (21)
Public Authority 468 408 60
Metered Sales - Temporary and Non-Recurring 11 7 4
Private Fire 436 426 10
Public Fire 2,623 2,585 38
CWIP Surcharge 0 0 0
Other 51 52 (1)
------- ------- -----
Revenues Billed 18,143 18,210 (67)
Change in Revenues Accrued (145) (145) 0
------- ------- -----
Total Operating Revenue $17,998 $18,065 ($67)
======= ======= ====
Taxes - Other Than Income Taxes
Municipal Taxes $ 1,680 $ 1,711 ($31)
Payroll Taxes 317 291 26
Connecticut Gross Earnings Tax 900 906 (6)
------- ------- -----
Total Other Taxes $ 2,897 $ 2,908 ($11)
======= ======= =====
Other Income
Merchandising, Jobbing and Contracting - Net ($13) ($3) ($10)
Income from Lease of Other Physical Property - Net 12 12 0
Miscellaneous Non-Operating Income 12 11 1
Miscellaneous Income Deductions (3) (3) 0
------- ------- -----
Total Other Income $ 8 $ 17 ($9)
======= ======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 9
Page 9
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
For the Twelve Months Ended June 30, 1995 and 1994
and for the Twelve Months Ended March 31, 1995
<TABLE>
<CAPTION>
June 30, March 31,
1995 1994 Increase 1995 Increase
(Unaudited) (Unaudited) (Decrease) (Unaudited) (Decrease)
----------- ----------- ---------- ----------- ----------
(In thousands except per share amounts)
<S> <C> <C> <C> <C> <C>
Operating Revenues (See accompanying schedule) $38,062 $38,337 ($275) $38,084 ($22)
------- ------- ----- ------- -----
Operating Expenses
Operation 12,683 12,801 (118) 12,868 (185)
Maintenance 1,934 1,929 5 1,959 (25)
Depreciation 3,171 3,072 99 3,129 42
Federal Income Taxes 3,848 3,854 (6) 3,750 98
Connecticut Corporation Business Taxes 994 992 2 976 18
Taxes Other Than Income Taxes
(See accompanying schedule) 5,722 5,873 (151) 5,773 (51)
------- ------- ----- ------- -----
Total Operating Expenses 28,352 28,521 (169) 28,455 (103)
------- ------- ----- ------- -----
Utility Operating Income 9,710 9,816 (106) 9,629 81
------- ------- ----- ------- -----
Other Income (Deductions)
Interest 128 102 26 118 10
Allowance for Funds Used During Construction 110 46 64 104 6
Preferred Stock Dividends of Subsidiary (1) (215) 214 (1) 0
Other (See accompanying schedule) 14 (4) 18 22 (8)
Taxes on Other Income 17 72 (55) 18 (1)
------- ------- ----- ------- -----
Total Other Income (Deductions) 268 1 267 261 7
------- ------- ----- ------- -----
Interest and Debt Expense
Interest on Long-Term Debt 3,443 3,643 (200) 3,465 (22)
Other Interest Charges 338 238 100 319 19
Amortization of Debt Expense 189 200 (11) 188 1
------- ------- ----- ------- -----
Total Interest and Debt Expense 3,970 4,081 (111) 3,972 (2)
------- ------- ----- ------- -----
Net Income 6,008 5,736 272 5,918 90
Preferred Stock Dividend Requirement 38 38 0 38 0
------- ------- ----- ------- -----
Net Income Applicable to Common Stockholders $ 5,970 $ 5,698 $ 272 $ 5,880 $90
======= ======= ===== ======= =====
Weighted Average Common Shares Outstanding 2,860 2,789 71 2,835 25
======= ======= ===== ======= =====
Earnings Per Average Common Share $ 2.09 $ 2.04 $0.05 $ 2.07 $0.02
======= ======= ===== ======= =====
Dividends Per Common Share $ 1.67 $ 1.64 $0.03 $ 1.66 $0.01
======= ======= ===== ======= =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 10
Page 10
Connecticut Water Service, Inc. and Subsidiary
SCHEDULE OF OPERATING REVENUES, TAXES OTHER THAN INCOME
AND OTHER INCOME
For the Twelve Months Ended June 30, 1995 and 1994
and for the Twelve Months Ended March 31, 1995
<TABLE>
<CAPTION>
March 31,
1995 1994 Increase 1995 Increase
(Unaudited) (Unaudited) (Decrease) (Unaudited) (Decrease)
----------- ----------- ---------- ----------- ----------
(Thousands of dollars)
<S> <C> <C> <C> <C> <C>
Operating Revenues:
Residential $23,806 $24,231 ($425) $23,845 ($39)
Seasonal 547 504 43 547 0
Commercial 4,674 4,721 (47) 4,685 (11)
Industrial 1,901 1,900 1 1,939 (38)
Public Authority 953 911 42 916 37
Metered Sales - Temporary and Non-Recurring 33 25 8 29 4
Private Fire 866 849 17 861 5
Public Fire 5,203 5,151 52 5,183 20
CWIP Surcharge 0 0 0 0 0
Other 79 73 6 79 0
------- ------- ----- ------- ----
Revenues Billed 38,062 38,365 (303) 38,084 (22)
Change in Revenues Accrued 0 (28) 28 0 0
------- ------- ----- ------- ----
Total Operating Revenue $38,062 $38,337 ($275) $38,084 ($22)
======= ======= ===== ======= ====
Taxes - Other Than Income Taxes
Municipal Taxes $ 3,300 $ 3,459 ($159) $ 3,354 ($54)
Payroll Taxes 522 495 27 516 6
Connecticut Gross Earnings Tax 1,900 1,919 (19) 1,903 (3)
------- ------- ----- ------- ----
Total Other Taxes $ 5,722 $ 5,873 ($151) $ 5,773 ($51)
======= ======= ===== ======= ====
Other Income
Merchandising, Jobbing and Contracting - Net ($17) $2 ($19) ($15) ($2)
Income from Lease of Other Physical Property - Net 22 19 3 23 (1)
Miscellaneous Non-Operating Income 17 32 (15) 22 (5)
Miscellaneous Income Deductions (8) (57) 49 (8) 0
------- ------- ----- ------- ----
Total Other Income $ 14 ($4) $ 18 $ 22 ($8)
======= ======= ===== ======= ====
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 11
Page 11
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
For the Three Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
(Unaudited) (Unaudited)
----------- -----------
(Thousands of dollars)
<S> <C> <C>
Balance at Beginning of Period $ 8,969 $ 7,790
Net Income 1,176 1,086
------- -------
10,145 8,876
------- -------
Dividends Declared:
Cumulative Preferred, Class A, $.20 per share 3 3
Cumulative Preferred, Series $.90, $.225 per share 6 6
Common Stock - 1995 $.42 per share; 1994 $.41 per share 1,220 1,151
------- -------
1,229 1,160
------- -------
Balance at End of Period $ 8,916 $ 7,716
======= =======
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
Balance at Beginning of Period $ 9,040 $ 8,092
Net Income 2,323 2,195
------- -------
11,363 10,287
------- -------
Charges Related to Redemption of Subsidiary's 9 1/2% Series Preferred Stock 0 257
------- -------
Dividends Declared:
Cumulative Preferred, Class A, $.40 per share 6 6
Cumulative Preferred, Series $.90, $.45 per share 13 13
Common Stock - 1995 $.84 per share; 1994 $.82 per share 2,428 2,295
------- -------
2,447 2,314
------- -------
Balance at End of Period $ 8,916 $ 7,716
======= =======
FOR THE TWELVE MONTHS ENDED JUNE 30, 1995 AND 1994
Balance at Beginning of Period $ 7,716 $ 6,847
Net Income 6,008 5,736
------- -------
13,724 12,583
------- -------
Charges Related to Redemption of Subsidiary's 9 1/2% Series Preferred Stock 0 257
------- -------
Dividends Declared:
Cumulative Preferred, Class A, $.80 per share 12 12
Cumulative Preferred, Series $.90, $.90 per share 26 26
Common Stock - 1995 $1.67 per share; 1994 $1.64 per share 4,770 4,572
------- -------
4,808 4,610
------- -------
Balance at End of Period $ 8,916 $ 7,716
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 12
Page 12
Connecticut Water Service, Inc. and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
(Unaudited) (Unaudited)
----------- -----------
(Thousands of dollars)
<S> <C> <C>
Operating Activities:
Net Income Before Preferred Dividends of Parent $ 2,323 $ 2,195
------- -------
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation (including $49 in 1995, $68 in 1994 charged to other accounts) 1,676 1,610
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable and Accrued Unbilled Revenues 222 127
(Increase) Decrease in Other Current Assets 275 (40)
(Increase) Decrease in Other Non-Current Items (376) (326)
Increase (Decrease) in Accounts Payable, Accrued Expenses and
Other Current Liabilities (1,486) (674)
Increase (Decrease) in Deferred Federal Income Taxes and
Investment Tax Credits, Net 471 481
------- -------
Total Adjustments 782 1,178
------- -------
Net Cash Provided by Operating Activities 3,105 3,373
------- -------
Investing Activities:
Gross Additions to Utility Plant (including Allowance for Funds
Used During Construction of $32 in 1995 and $11 in 1994) (2,000) (1,410)
------- -------
Financing Activities:
Proceeds from Interim Bank Loans 2,600 4,750
Repayment of Interim Bank Loans (2,700) (3,950)
Proceeds from Issuance of Long-Term Debt 0 12,050
Reduction of Long-Term Debt Including Current Portion (130) (9,050)
Proceeds from Issuance of Common Stock 1,322 563
Retirement of Preferred Stock (30) (3,030)
Charges Related to Redemption of Subsidiary's 9 1/2% Series Preferred Stock 0 (257)
Advances, Contributions and Funds From Others for Construction, Net 743 247
Costs Incurred to Issue Long-Term Debt, Preferred Stock, and Common Stock 0 (661)
Cash Dividends Paid (2,447) (2,314)
------- -------
Net Cash Provided by (Used in) Financing Activities (642) (1,652)
------- -------
Net Increase (Decrease) in Cash 463 311
Cash at Beginning of Year 18 44
------- -------
Cash at End of Year $ 481 $ 355
======= =======
Supplemental Disclosures of Cash Flow Information:
Cash Paid During the Year for:
Interest (Net of Amounts Capitalized) $ 1,872 $ 1,887
Income Taxes $ 2,175 $ 1,880
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 13
CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated financial statements included herein have been
prepared by CONNECTICUT WATER SERVICE, INC. (the Company), without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission
and reflect all adjustments which are, in the opinion of management, necessary
to a fair statement of the results for interim periods. Certain information
and footnote disclosures have been omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading. It is suggested that these
consolidated financial statements be read in conjunction with the financial
statements and the notes thereto included in the Company's latest annual report
on 10-K.
The results for interim periods are not necessarily indicative of
results to be expected for the year since the consolidated earnings are subject
to seasonal factors.
2. Earnings per average common share are calculated by dividing net
income applicable to common stock by the average number of shares of common
stock outstanding during the respective periods as detailed:
<TABLE>
<CAPTION>
3 Months Ended 12 Months Ended
----------------------- ------------------------------------
6/30/95 6/30/94 6/30/95 6/30/94 12/31/94
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Common Shares Outstanding:
January 1, 1994 -- -- -- -- 2,789,977
July 1, 1994 & 1993
respectively -- -- 2,813,912 2,772,944 --
April 1, 1995 & 1994
respectively 2,904,827 2,803,397 -- -- --
Common Shares Issued:
To DRIP - Sept 15, 1993 -- -- -- 7,965 --
To 401-K - Sept. 30, 1993 -- -- -- 421 --
To DRIP - Dec. 15, 1993 -- -- -- 8,201 --
To 401-K - Dec. 31, 1993 -- -- -- 446 --
To PSP - Jan. 21, 1994 -- -- -- 4,061 4,061
To DRIP - March 15, 1994 -- -- -- 8,798 8,798
To 401-K - March 30, 1994 -- -- -- 561 561
To DRIP - June 15, 1994 -- 9,878 -- 9,878 9,878
To 401-K - June 30, 1994 -- 637 -- 637 637
To DRIP - Sept. 15, 1994 -- -- 15,397 -- 15,397
To 401-K - Sept. 30, 1994 -- -- 620 -- 620
To DRIP - Dec. 15, 1994 -- -- 39,980 -- 39,980
To 401-K - Dec. 31, 1994 -- -- 650 -- 650
To PSP - Jan. 6, 1995 -- -- 6,369 -- --
To DRIP - March 15, 1995 -- -- 27,213 -- --
To 401-K - March 30, 1995 -- -- 686 -- --
To DRIP - June 15, 1995 23.328 -- 23,328 -- --
To 401-K - June 30, 1995 662 -- 662 -- --
--------- --------- --------- --------- ---------
Common Shares Outstanding:
June 30, 1995 & 1994
respectively 2,928,817 2,813,912 2,928,817 2,813,912
========= ========= ========= =========
December 31, 1994 2,870,559
=========
Weighted Average Common Shares Outstanding:
Days outstanding basis 2,908,936 2,805,145 2,860,451 2,789,211 2,812,456
========= ========= ========= ========= =========
</TABLE>
DRIP = Dividend Reinvestment Plan
PSP = Performance Stock Program
401-K = Company contribution to employees' 401-K savings plan
<PAGE> 14
Page 14
CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY
PART I, ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CORPORATE RESOURCES
At June 30, 1995 the Company had $6,400,000 of unused lines of interim
bank loan credit available.
RESULT OF OPERATIONS
THE FOLLOWING FACTORS HAD A SIGNIFICANT EFFECT UPON THE COMPANY'S NET
INCOME FOR THE THREE MONTHS ENDED JUNE 30, 1995 AS COMPARED WITH THE NET INCOME
FOR THE SAME PERIOD LAST YEAR.
Net income applicable to common stock for the three months ended June
30, 1995 increased from that of June 30, 1994 by $90,000, or $.02 per average
common share, on an increased number of average common shares as a result of a
$81,000 increase in utility operating income, a $7,000 increase in other income
(deductions), and a $2,000 decrease in interest and debt expense.
Operating revenues decreased $22,000, or .2%, reflecting lower water
consumption by residential, industrial, and commercial customers, partially
offset by increases in revenues from public authority and public fire
customers.
The $103,000 decrease in operating expenses is primarily attributable
to lower operation and maintenance expenses and municipal taxes, partially
offset by increased income taxes related to higher taxable income and increased
depreciation expense.
THE FOLLOWING FACTORS HAD A SIGNIFICANT EFFECT UPON THE COMPANY'S NET
INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED WITH THE NET INCOME
FOR THE SAME PERIOD LAST YEAR.
Net income applicable to common stock for the six months ended June
30, 1995 increased from that of June 30, 1994 by $128,000, or $.02 per average
common share, on an increased number of average common shares as a result of a
$55,000 increase in utility operating income and a $103,000 increase in other
income and deductions, partially offset by a $30,000 increase in interest and
debt expense.
Operating revenues decreased $67,000, or .4%, reflecting lower water
consumption by residential, commercial, and industrial customers, partially
offset by increases in revenues from public authority and public fire
customers.
The $122,000 decrease in operating expenses is primarily attributable
to lower operation and maintenance expenses, partially offset by increased
income taxes related to higher taxable income and increased depreciation
expense.
The increase in other income and deductions is primarily related to
the elimination of preferred stock dividends of the Subsidiary. This was
achieved through the refinancing of the Subsidiary's 9.5% preferred stock with
6.94% long-term debt during March, 1994.
The increase in interest and debt expense is primarily due to higher
interest on interim bank loans primarily due to higher interest rates.
<PAGE> 15
Page 15
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.
Connecticut Water Service, Inc.
(Registrant)
Date: August 11, 1995 By /s/ Bertram L. Lenz
-------------------------------
Bertram L. Lenz
Vice President - Finance
Date: August 11, 1995 By: /s/ Peter J. Bancroft
-------------------------------
Peter J. Bancroft
Assistant Treasurer
<PAGE> 16
Exhibit Index
-------------
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> OPUR1
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 141,047
<OTHER-PROPERTY-AND-INVEST> 1,020
<TOTAL-CURRENT-ASSETS> 7,898
<TOTAL-DEFERRED-CHARGES> 21,677
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 171,642
<COMMON> 40,265
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 8,916
<TOTAL-COMMON-STOCKHOLDERS-EQ> 49,181
0
772
<LONG-TERM-DEBT-NET> 54,470
<SHORT-TERM-NOTES> 0
<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> 67,219
<TOT-CAPITALIZATION-AND-LIAB> 171,642
<GROSS-OPERATING-REVENUE> 17,998
<INCOME-TAX-EXPENSE> 2,144
<OTHER-OPERATING-EXPENSES> 11,680
<TOTAL-OPERATING-EXPENSES> 13,824
<OPERATING-INCOME-LOSS> 4,174
<OTHER-INCOME-NET> 126
<INCOME-BEFORE-INTEREST-EXPEN> 4,300
<TOTAL-INTEREST-EXPENSE> 1,977
<NET-INCOME> 2,323
19
<EARNINGS-AVAILABLE-FOR-COMM> 2,304
<COMMON-STOCK-DIVIDENDS> 2,428
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 3,105
<EPS-PRIMARY> .80
<EPS-DILUTED> .80
</TABLE>
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