<PAGE> 1
Form U-3A-2
File No. 69-232
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC. hereby files with the
Securities and Exchange Commission, pursuant to Rule 2, its statement claiming
exemption as a holding company from the provisions of the Public Utility
Holding Company Act of 1935 and submits the following information:
1. CLAIMANT - Southeastern Michigan Gas Enterprises, Inc.
405 Water Street
Port Huron, Michigan 48060
State of organization - Michigan
Nature of business - Holding Company
SUBSIDIARIES - Southeastern Michigan Gas Company
2915 Lapeer Road
Port Huron, Michigan 48060
State of organization - Michigan
Nature of business - Purchase, distribution, sale, and
transport of natural gas to residential, commercial and
industrial customers in two service areas, one located
in and about Port Huron in southeastern Michigan and
the other located in and about Albion in south-central
Michigan. The Company's general offices are located in
Port Huron.
Michigan Gas Company
16587 Enterprise Drive
Three Rivers, Michigan 49093
State of organization - Michigan
Nature of business - Purchase, distribution, sale, and
transport of natural gas to residential, commercial and
industrial customers in the service area in the
southwest portion of lower Michigan and the central and
western area of the Upper Peninsula of Michigan.
Battle Creek Gas Company
55 Hamblin Avenue
Battle Creek, Michigan 49017
State of organization - Michigan
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Nature of business - Purchase, distribution, sale, and
transport of natural gas to residential, commercial and
industrial customers in the service area in and about
Battle Creek, Michigan.
Southeastern Development Company
405 Water Street
Port Huron, Michigan 48060
State of organization - Michigan
Nature of business - Develop cogeneration facilities.
Engaged in residential real estate development in and
about Port Huron, Michigan.
Southeastern Financial Services, Inc.
405 Water Street
Port Huron, Michigan 48060
State of organization - Michigan
Nature of business - Leasing of vehicles and office
equipment.
SEMCO Energy Services, Inc.
405 Water Street
Port Huron, Michigan 48060
State of organization - Michigan
Nature of business - Market natural gas in the spot
market. Match gas buyers to producers with surplus gas
supplies. Arrange transportation to move those
supplies from producer to buyer. Oil and gas
exploration, gathering, transmission and storage.
2. PROPERTIES OF CLAIMANT AND SUBSIDIARY PUBLIC UTILITY COMPANIES.
(a) Claimant (Southeastern Michigan Gas Enterprises, Inc.) -
The total properties of the Claimant consist of the Common Stock
of Southeastern Michigan Gas Company, Michigan Gas Company, Battle
Creek Gas Company, Southeastern Development Company, Southeastern
Financial Services, Inc., SEMCO Energy Services, Inc., leasehold
improvements and office equipment.
(b) Subsidiaries
Southeastern Michigan Gas Company
Southeastern Michigan Gas Company owns gas supply systems which,
on December 31, 1993, included approximately 100 miles of transmission
pipelines and 1,600 miles of distribution pipelines. The pipelines
are located in southeastern Michigan (centered in and around the City
of Port Huron) and south-central Michigan (centered in and around the
City of Albion).
Southeastern's underground storage system consists of six salt
caverns and a depleted oil field, located in St. Clair County,
Michigan, together with dehydration, measuring, compressor and
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<PAGE> 3
transmission facilities. The aggregate working capacity of the system
is approximately 5.2 billion cubic feet (Bcf), with a capacity to
deliver 86 million cubic feet (MMcf) on a peak day. Underground
storage services are provided to others on a short-term basis,
depending on available capacity.
Southeastern Michigan Gas Company also owns meters and service
lines, gas regulating and metering stations, garages, warehouses and
other buildings necessary and useful in the conduct of its business.
The Company leases computer and transportation equipment.
The principal plants and properties of Southeastern Michigan Gas
Company are held subject to the lien of Southeastern Michigan Gas
Company Indenture of Mortgage and Deed of Trust securing its First
Mortgage Bonds.
Southeastern Michigan Gas Company's distribution system and
service lines are, for the most part, located on or under public
streets, alleys, highways, and other public places, or on private
property not owned by Southeastern Michigan Gas Company with
permission or consent, except to an inconsequential extent, of the
individual owners. Southeastern Michigan Gas Company's mains and
distribution system located on or under public streets, alleys,
highways, and other public places were all installed under valid
rights and consents granted by appropriate local authorities.
Michigan Gas Company
Michigan Gas Company owns gas supply systems located in the
southwest portion of Michigan's lower peninsula and the central and
western areas of Michigan's upper peninsula. The systems include
approximately 2,000 miles of distribution pipeline, meters, service
lines, gas regulating and metering stations, garages, warehouses, and
other buildings necessary and useful in the conduct of its business.
The Company leases computer equipment, transportation equipment, and
certain buildings.
Michigan Gas Company's distribution system and service lines are
for the most part, located on or under public streets, alleys,
highways, and other public places, or on private property not owned
by Michigan Gas with permission or consent, except to an
inconsequential extent, of individual owners. Michigan Gas Company's
mains and distribution system located on or under public streets,
alleys, highways, and other public places were all installed under
valid rights and consents granted by appropriate local authorities.
Battle Creek Gas Company
Battle Creek Gas Company owns gas supply systems which, on
December 31, 1993, included approximately 30 miles of transmission
pipelines and 600 miles of distribution pipelines. The pipelines are
located in southwestern Michigan (centered in and around the City of
Battle Creek, Michigan).
Battle Creek Gas Company owns and operates underground gas
storage facilities in two depleted salt wells and a depleted gas
field. The aggregate working capacity of the storage system is
approximately 1.7 Bcf.
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Battle Creek Gas Company also owns meters and service lines, gas
regulating and metering stations, garages, warehouses and other
buildings necessary and useful in the conduct of its business. The
Company leases computer and transportation equipment.
Battle Creek Gas Company's distribution system and service lines
are, for the most part, located on or under public streets, alleys,
highways, and other public places, or on private property not owned
by Battle Creek Gas Company with permission or consent, except to an
inconsequential extent, of the individual owners. Battle Creek Gas
Company's mains and distribution system located on or under public
streets, alleys, highways, and other public places were all installed
under valid rights and consents granted by appropriate local
authorities.
All of these Subsidiaries' properties are located in the State of
Michigan.
3. The following information is submitted for the calendar year 1993 with
respect to the Claimant and its subsidiary public utility companies:
<TABLE>
<CAPTION>
Subsidiaries
Claimant _____________________________________________________
(Southeastern Southeastern
Michigan Gas Michigan Battle Creek Michigan
Enterprises Inc.) Gas Company Gas Company Gas Company
_________________ ______________ _____________ ______________
<S> <C> <C> <C> <C>
(a) Mcf of Natural
gas distributed at retail None 14,700,000 Mcf 5,500,000 Mcf 15,700,000 Mcf
(b) Mcf of natural or manufactured
gas distributed at retail
outside of the State in which
each company is organized None None None None
(c) Mcf of natural or manufactured
gas sold at wholesale outside
the State in which each company
company is organized or at the
State line None None None None
(d) Mcf of natural or manufactured
gas purchased outside the State
in which each company is
organized or at the State line None 14,900,000 Mcf 5,500,000 Mcf 12,600,000 Mcf
</TABLE>
4. Not Applicable.
EXHIBIT A - FINANCIAL STATEMENTS
________________________________
A consolidating statement of income and surplus of the Claimant and
its subsidiary companies for the last calendar year, together with a
consolidating balance sheet of Claimant and its subsidiary companies as of
the close of such calendar year accompanies this filing.
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EXHIBIT B - FINANCIAL DATA SCHEDULE
___________________________________
Not applicable because of S.E.C. deferral of requirement until April
1994.
EXHIBIT C
_________
Not applicable.
The above-named Claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 18th day of February, 1994.
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
(Name of Claimant)
By /s/Ward N. Kirby
________________________________________
Ward N. Kirby, President and C.E.O.
Corporate Seal
Attest:
/s/Lawrence J. Gagnon
_______________________________
Lawrence J. Gagnon, Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Lawrence J. Gagnon Vice President, Secretary and General Counsel
(Name) (Title)
405 Water Street, Port Huron, Michigan 48060
(Address)
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Exhibit A
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED INCOME STATEMENT
DECEMBER 1993
(Unaudited Statement)
TWELVE MONTHS TO DATE LOCAL DISTRIBUTION COMPANIES
--------------------- ------------------------------------ SEMCO FINANCIAL
1993 ELIM. PARENT SEMGC BCGC MIGC ENERGY SERVICES SEDCO
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUE
Gas sales revenue
Residential $122,215,876 $ 0 $ 0 $48,324,738 $20,992,667 $ 52,898,471 $ 0 $ 0 $ 0
Commercial 61,379,208 0 0 21,375,719 7,779,891 32,223,598 0 0 0
Industrial 16,048,848 0 0 2,785,841 1,956,782 11,306,225 0 0 0
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
Total gas sales
revenue $199,643,932 $ 0 $ 0 $72,486,298 $30,729,340 $ 96,428,294 $ 0 $ 0 $ 0
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
Gas marketing $ 70,991,383 $(37,596,661) $ 0 $ 0 $ 7,943,567 $ 0 $100,644,477 $ 0 $ 0
Transportation 11,968,366 0 0 3,125,310 4,819,040 4,024,016 0 0 0
Other operations 6,359,468 (1,839,690) 0 380,028 24,505 592,661 3,630,630 2,600,319 971,015
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
TOTAL OPERATING
REVENUE $288,963,149 $(39,436,351) $ 0 $75,991,636 $43,516,452 $101,044,971 $104,275,107 $2,600,319 $ 971,015
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
OPERATING EXPENSES
Cost of gas sold $139,051,282 $ 0 $ 0 $46,296,998 $20,096,009 $ 72,658,275 $ 0 $ 0 $ 0
Cost of gas
marketed 67,473,485 (37,705,137) 0 0 7,340,046 0 97,838,576 0 0
Operations 30,542,443 (1,839,690) 187,887 11,405,921 5,760,587 11,677,403 2,156,047 251,362 942,926
Maintenance 4,253,108 0 187 2,018,609 893,508 1,296,074 0 0 44,730
Depreciation 12,468,362 0 70,676 3,690,243 1,761,632 3,142,537 2,034,898 1,722,859 45,517
Income taxes 5,493,150 2,239,302 (2,548,381) 2,071,574 1,159,048 2,076,757 242,343 230,350 22,157
Taxes other than
income 8,445,924 0 1,182 3,488,324 1,627,456 2,917,541 343,065 63,000 5,356
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
TOTAL OPERATING
EXPENSES $267,727,754 $(37,305,525) $(2,288,449) $68,971,669 $38,638,286 $ 93,768,587 $102,614,929 $2,267,571 $1,060,686
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
OPERATING INCOME $ 21,235,395 $ (2,130,826) $ 2,288,449 $ 7,019,967 $ 4,878,166 $ 7,276,384 $ 1,660,178 $ 332,748 $ (89,671)
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
OTHER INCOME
Non-operating
income $ 3,495,454 $ (6,292,629) $ 6,239,720 $ 1,924,936 $ 571,866 $ 979,433 $ 470 $ 0 $ 71,658
Non-operating
expenses 2,981,206 0 0 1,650,199 551,149 779,858 0 0 0
Other income taxes 278,586 (2,202,420) 2,182,626 96,158 3,853 173,289 0 0 25,080
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
OTHER INCOME, NET $ 235,662 $ (4,090,209) $ 4,057,094 $ 178,579 $ 16,864 $ 26,286 $ 470 $ 0 $ 46,578
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
INCOME BEFORE
DEDUCTIONS $ 21,471,057 $ (6,221,035) $ 6,345,543 $ 7,198,546 $ 4,895,030 $ 7,302,670 $ 1,660,648 $ 332,748 $ (43,093)
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
INCOME DEDUCTIONS
Interest on long
term debt $ 9,426,147 $ (3,085,300) $ 7,041,632 $ 1,675,656 $ 1,494,159 $ 2,300,000 $ 0 $ 0 $ 0
Other interest 1,771,301 (3,207,329) 1,559,023 613,523 493,220 829,400 1,328,046 138,039 17,379
Amortization of
debt exp 336,823 0 94,872 145,200 30,864 65,887 0 0 0
Dividends on pref.
of sub. 178,003 0 0 178,003 0 0 0 0 0
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
TOTAL INCOME
DEDUCTIONS $ 11,712,274 $ (6,292,629) $ 8,695,527 $ 2,612,382 $ 2,018,243 $ 3,195,287 $ 1,328,046 $ 138,039 $ 17,379
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
NET INCOME $ 9,758,783 $ 71,594 $(2,349,984) $ 4,586,164 $ 2,876,787 $ 4,107,383 $ 332,602 $ 194,709 $ (60,472)
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
Equity earnings
of subs. $ 0 $(12,037,168) $12,037,168 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Dividends on
conv. preferred 18,871 0 18,871 0 0 0 0 0 0
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
NET INC BEFORE
EXTRAORDINARY ITEM $ 9,739,912 $(11,965,574) $ 9,668,313 $ 4,586,164 $ 2,876,787 $ 4,107,383 $ 332,602 $ 194,709 $ (60,472)
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
Extraordinary item $ 177,395 $ 0 $ 177,395 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------------ ------------ ----------- ----------- ----------- ------------ ------------ ---------- ----------
NET INCOME FOR
COMMON $ 9,562,517 $(11,965,574) $ 9,490,918 $ 4,586,164 $ 2,876,787 $ 4,107,383 $ 332,602 $ 194,709 $ (60,472)
============ ============ =========== =========== =========== ============ ============ ========== ==========
EARNING PER
AVERAGE SHARE $ 1.00
============
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
TWELVE-MONTHS-TO-DATE SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED INCOME STATEMENT
DECEMBER 31, 1993
(Unaudited Statement)
BATTLE CREEK GAS CO MICHIGAN GAS CO
------------------------------------- -------------------------------------
PUSH PURCHASE SEPARATE PUSH PURCHASE SEPARATE
DOWN ADJUSTMENTS COMPANY DOWN ADJUSTMENTS COMPANY
------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GAS SALES REVENUE $38,672,907 $ 0 $38,672,907 $96,428,294 $ 0 $96,428,294
COST OF GAS SOLD 27,436,055 0 27,436,055 72,658,275 0 72,658,275
----------- ----------- ----------- ----------- ----------- -----------
Gross Margin $11,236,852 $ 0 $11,236,852 $23,770,019 $ 0 $23,770,019
----------- ----------- ----------- ----------- ----------- -----------
OTHER OPERATING REVENUE
Transportation $ 4,819,042 $ 0 $ 4,819,042 $ 4,024,016 $ 0 $ 4,024,016
Other 24,503 0 24,503 592,661 0 592,661
----------- ----------- ----------- ----------- ----------- -----------
Total other oper. revenue $ 4,843,545 $ 0 $ 4,843,545 $ 4,616,677 $ 0 $ 4,616,677
----------- ----------- ----------- ----------- ----------- -----------
OTHER OPERATING EXPENSES:
Operation $ 6,654,095 $ 9,156 $ 6,644,939 $12,973,477 $ 0 $12,973,477
Depreciation and amortization 1,761,632 109,849 1,651,783 3,142,537 0 3,142,537
Income taxes 1,159,048 (654,698) 1,813,746 2,076,757 0 2,076,757
General taxes 1,627,456 0 1,627,456 2,917,541 0 2,917,541
----------- ----------- ----------- ----------- ----------- -----------
Total other operating expenses $11,202,231 $ (535,693) $11,737,924 $21,110,312 $ 0 $21,110,312
----------- ----------- ----------- ----------- ----------- -----------
Operating income (loss) $ 4,878,166 $ 535,693 $ 4,342,473 $ 7,276,384 $ 0 $ 7,276,384
Other, net 16,864 0 16,864 26,286 0 26,286
----------- ----------- ----------- ----------- ----------- -----------
Gross income, (loss) $ 4,895,030 $ 535,693 $ 4,359,337 $ 7,302,670 $ 0 $ 7,302,670
----------- ----------- ----------- ----------- ----------- -----------
INCOME DEDUCTIONS:
Interest on long-term debt $ 1,494,159 $ 1,494,159 $ 0 $ 2,300,000 $ 0 $ 2,300,000
Other interest 493,220 0 493,220 829,400 0 829,400
Loss on redemption debt, net 0 0 0 0 0 0
Amortization of debt expense 30,864 30,864 0 65,887 0 65,887
Dividends on preferred
stock of subsidiary 0 0 0 0 0 0
----------- ----------- ----------- ----------- ----------- -----------
Total income deductions $ 2,018,243 $ 1,525,023 $ 493,220 $ 3,195,287 $ 0 $ 3,195,287
----------- ----------- ----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 2,876,787 $ (989,330) $ 3,866,117 $ 4,107,383 $ 0 $ 4,107,383
Equity in earnings
of subsidiaries 0 0 0 0 0 0
preferred stock 0 0 0 0 0 0
----------- ----------- ----------- ----------- ----------- -----------
NET INCOME (LOSS) AVAILABLE
FOR COMMON $ 2,876,787 $ (989,330) $ 3,866,117 $ 4,107,383 $ 0 $ 4,107,383
=========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 1993
(Unaudited Statement)
LOCAL DISTRIBUTION COMPANIES
-------------------------------------- SEMCO FINANCIAL
ASSETS 1993 ELIM. PARENT SEMGC BCGC MIGC ENERGY SERVICES SEDCO
------ ------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
UTILITY PLANT
Plant in service
at cost $271,789,042 $ 0 $ 0 $124,533,356 $43,782,209 $ 87,196,476 $16,277,001 $ 0 $ 0
Construction in
progress 781,884 0 0 780,319 345 1,220 0 0 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
TOTAL UTILITY
PLANT $272,570,926 $ 0 $ 0 $125,313,675 $43,782,554 $ 87,197,696 $16,277,001 $ 0 $ 0
Less-Accumulated
deprec 70,629,418 0 0 49,340,305 3,592,920 16,024,898 1,671,295 0 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
NET UTILITY PLANT $201,941,508 $ 0 $ 0 $ 75,973,370 $40,189,634 $ 71,172,798 $14,605,706 $ 0 $ 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
OTHER PROPERTY
Other property,
gross $ 22,706,002 $ (4,346,879) $ 1,261,130 $ 485,522 $ 49,934 $ 222,475 $12,970,831 $8,625,922 $3,437,067
Less-Accumulated
deprec 6,348,790 (3,318,972) 390,952 106,803 0 24,727 3,254,479 5,407,982 482,819
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
OTHER PROPERTY,
NET $ 16,357,212 $ (1,027,907) $ 870,178 $ 378,719 $ 49,934 $ 197,748 $ 9,716,352 $3,217,940 $2,954,248
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
CURRENT ASSET
Cash $ 2,964,824 $ (370,900) $ 1,092,842 $ 100,189 $ (29,250) $ 293,757 $ 1,504,176 $ 2,823 $ 371,187
Accounts
receivable
Accounts rec.
nonaffil 33,062,976 (319,345) 0 8,768,768 4,423,307 9,644,143 10,206,120 265,119 74,864
Accounts rec.
affil 0 (9,479,952) 2,823,371 85,194 949,260 137,696 5,482,967 0 1,464
Less-Reserve
for uncoll 1,354,539 0 0 116,465 269,549 686,198 49,800 232,527 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
Accounts rec. -
net 31,708,437 (9,799,297) 2,823,371 8,737,497 5,103,018 9,095,641 15,639,287 32,592 76,328
Notes receivable
affil 0 (119,174,619) 119,174,619 0 0 0 0 0 0
Accrued utility
revenue 17,674,219 0 0 6,208,514 2,395,755 8,880,576 189,374 0 0
Materials and
supplies 2,893,916 0 0 1,580,820 587,945 698,001 27,150 0 0
Gas in storage 31,146,209 0 0 11,332,747 6,889,976 12,652,443 271,043 0 0
Prepaid property
taxes 1,743,672 0 35,318 1,666,886 0 0 16,426 0 25,042
Prepayments 6,118,433 (75,000) 148,955 152,160 26,305 337,853 5,525,593 1,431 1,136
Other current
assets 5,970,139 0 0 1,209,641 2,412,670 12,347,828 0 0 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
TOTAL CURRENT
ASSETS $110,219,849 $(129,419,816) $123,275,105 $ 30,988,454 $17,386,419 $ 44,306,099 $23,173,049 $ 36,846 $ 473,693
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
INVESTMENT IN SUBS
Southeastern Mi
Gas Co $ 0 $ (39,086,783) $ 39,086,783 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Southeastern
Development 0 (3,670,051) 3,670,051 0 0 0 0 0 0
Southeastern
Financial 0 (1,879,426) 1,879,426 0 0 0 0 0 0
Battle Creek Gas
Company 0 (12,846,267) 12,846,267 0 0 0 0 0 0
SEMCO Energy
Services 0 (4,485,236) 4,485,236 0 0 0 0 0 0
Michigan Gas
Company 0 (41,780,277) 41,780,277 0 0 0 0 0 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
INVESTMENT IN SUBS $ 0 $(103,748,040) $103,748,040 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
DEFERRED CHARGES
Unamortized debt
expense $ 5,839,759 $ 0 $ 3,148,229 $ 1,057,017 $ 717,588 $ 916,925 $ 0 $ 0 $ 0
Deferred gas
charges 1,473,473 0 0 144,600 152,355 1,176,518 0 0 0
Other deferred
charges 10,454,077 (1,577,968) 180,063 5,981,061 350,760 5,135,494 164,667 0 220,000
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
TOTAL DEFERRED
CHARGES $ 17,767,309 $ (1,577,968) $ 3,328,292 $ 7,182,678 $ 1,220,703 $ 7,228,937 $ 164,667 $ 0 $ 220,000
------------ ------------- ------------ ------------ ----------- ------------ ----------- ---------- ----------
TOTAL ASSETS $346,285,878 $(235,773,731) $231,221,615 $114,523,221 $58,846,690 $122,905,582 $47,659,774 $3,254,786 $3,647,941
============ ============= ============ ============ =========== ============ =========== ========== ==========
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1993
(Unaudited Statement)
BATTLE CREEK GAS COMPANY MICHIGAN GAS COMPANY
--------------------------------------- -----------------------------------------
PUSH PURCHASE SEPARATE PUSH PURCHASE SEPARATE
ASSETS DOWN ADJUSTMENTS COMPANY DOWN ADJUSTMENTS COMPANY
------ ----------- ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
UTILITY PLANT:
Original Cost $43,782,554 $(11,616,863) $55,399,417 $ 87,197,696 $(18,116,891) $105,314,587
Less - Accumulated depreciation
and amortization 3,592,920 (13,946,335) 17,539,255 16,024,898 (18,116,891) 34,141,789
----------- ------------ ----------- ------------ ------------ ------------
OTHER PHYSICAL PROPERTY, net $40,189,634 $ 2,329,472 $37,860,162 $ 71,172,798 $ 0 $ 71,172,798
49,934 23,123 26,811 197,748 0 197,748
----------- ------------ ----------- ------------ ------------ ------------
$40,239,568 $ 2,352,595 $37,886,973 $ 71,370,546 $ 0 $ 71,370,546
----------- ------------ ----------- ------------ ------------ ------------
CURRENT ASSETS:
Cash and temporary cash investments $ (29,250) $ 0 $ (29,250) $ 293,757 $ 0 $ 293,757
Receivables, less reserve 3,807,643 0 3,807,643 6,510,527 0 6,510,527
Unbilled revenue 2,395,755 0 2,395,755 8,880,576 0 8,880,576
Materials and supplies 587,945 0 587,945 698,001 0 698,001
Gas in underground storage 6,889,976 603,777 6,286,199 12,652,443 0 12,652,443
Prepaid property taxes 0 0 0 0 0 0
Prepayments 26,305 0 26,305 337,853 0 337,853
Miscellaneous current assets 578,596 0 578,596 12,347,828 0 12,347,828
----------- ------------ ----------- ------------ ------------ ------------
$14,256,970 $ 603,777 $13,653,193 $ 41,720,985 $ 0 $ 41,720,985
----------- ------------ ----------- ------------ ------------ ------------
INVESTMENT IN SUBSIDIARIES:
Southeastern Michigan Gas Company $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Southeastern Development Company 0 0 0 0 0 0
Southeastern Financial Services, Inc. 0 0 0 0 0 0
Battle Creek Gas Company 0 0 0 0 0 0
SEMCO Energy Services, Inc. 0 0 0 0 0 0
Michigan Gas Company 0 0 0 0 0 0
----------- ------------ ----------- ------------ ------------ ------------
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------- ------------ ----------- ------------ ------------ ------------
DEFERRED CHARGES AND OTHER ASSETS:
Accounts receivable from affiliates $ 949,260 $ 0 $ 949,260 $ 137,696 $ 0 $ 137,696
Notes receivable from affiliates 0 0 0 0 0 0
Debt expense 717,588 717,588 0 916,925 0 916,925
Other 3,843,324 (527,185) 4,370,509 10,593,963 0 10,593,963
----------- ------------ ----------- ------------ ------------ ------------
$ 5,510,172 $ 190,403 $ 5,319,769 $ 11,648,584 $ 0 $ 11,648,584
----------- ------------ ----------- ------------ ------------ ------------
$60,006,710 $ 3,146,775 $56,859,935 $124,740,115 $ 0 $124,740,115
=========== ============ =========== ============ ============ ============
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 1993
(Unaudited Statement)
LOCAL DISTRIBUTION COMPANIES
---------------------------------------
STOCKHOLDERS' INVESTMENT AND LIABILITIES 1993 ELIM. PARENT SEMGC BCGC MIGC
- ---------------------------------------- ------------ ------------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
COMMON STOCK EQUITY
Common stock, par $1 $ 9,680,376 $ (7,929,130) $ 9,680,376 $ 7,477,030 $ 0 $ 100
Capital surplus 64,211,005 (67,200,964) 64,211,005 12,819,937 19,370,599 30,919,186
Retained earnings 13,691,914 (28,742,508) 13,691,914 18,914,374 (6,524,330) 10,860,992
Common stock expense (1,926,143) 124,559 (1,781,751) (268,951) 0 0
Unearned comp - ESOT 0 0 0 0 0 0
------------ ------------- ------------ ------------ ----------- ------------
TOTAL COMMON STOCK EQUITY $ 85,657,152 $(103,748,043) $ 85,801,544 $ 38,942,390 $12,846,269 $ 41,780,278
------------ ------------- ------------ ------------ ----------- ------------
CONVERTIBLE PREF. STOCK
Pref. stock, par $1 $ 7,605 $ 0 $ 7,605 $ 0 $ 0 $ 0
Premium on preferred 182,520 0 182,520 0 0 0
------------ ------------- ------------ ------------ ----------- ------------
TOTAL CONV. PREFERRED $ 190,125 $ 0 $ 190,125 $ 0 $ 0 $ 0
------------ ------------- ------------ ------------ ----------- ------------
PREFERRED STOCK OF SUBS
Pref. stock, par $100 $ 3,100,000 $ 0 $ 0 $ 3,100,000 $ 0 $ 0
Preferred stock expense 0 0 0 0 0 0
------------ ------------- ------------ ------------ ----------- ------------
TOTAL PREF. STOCK OF SUB. $ 3,100,000 $ 0 $ 0 $ 3,100,000 $ 0 $ 0
------------ ------------- ------------ ------------ ----------- ------------
LONG TERM DEBT
Long-term debt nonaffil $116,857,000 $ (30,853,000) $ 87,710,333 $ 17,333,000 $19,666,667 $ 23,000,000
Long term debt-ESOT 0 0 0 0 0 0
Capital lease obligation 0 (1,027,907) 0 653,352 0 374,555
------------ ------------- ------------ ------------ ----------- ------------
TOTAL LONG-TERM DEBT $116,857,000 $ (31,880,907) $ 87,710,333 $ 17,986,352 $19,666,667 $ 23,374,555
------------ ------------- ------------ ------------ ----------- ------------
TOTAL CAPITALIZATION $205,804,277 $(135,628,950) $173,702,002 $ 60,028,742 $32,512,936 $ 65,154,833
------------ ------------- ------------ ------------ ----------- ------------
CURRENT LIABILITIES
Maturities of Lt-debt $ 165,000 $ 0 $ 0 $ 165,000 $ 0 $ 0
Notes payable nonaffil 52,341,667 0 52,341,667 0 0 0
Notes payable affil 0 (88,692,519) 370,900 19,940,000 13,585,000 29,346,000
Accounts payable nonaffil 30,052,581 (319,345) 2,293,069 5,537,189 1,645,910 6,054,008
Accounts payable affil 0 (9,479,950) 21,576 2,467,734 3,980,253 1,667,163
Customer adv. payments 6,803,551 0 0 3,036,526 605,962 3,161,063
General taxes accrued 261,973 0 (20,544) 112,851 (51,330) 151,107
Income taxes accrued (2,000,191) 0 215,684 205,795 (177,505) (1,175,006)
Interest accrued 1,855,477 0 1,559,017 278,000 5,006 13,454
Amts. payable to custs. 1,088,604 0 0 5,436 0 1,083,168
Accum def inc taxes-curr 201,499 (100,232) (75,221) 226,606 375,623 0
Other current liabs. 6,571,466 (75,000) 282,026 2,145,225 1,081,237 1,946,694
------------ ------------- ------------ ------------ ----------- ------------
TOTAL CURRENT LIABILITIES $ 97,341,627 $ (98,667,046) $ 56,988,174 $ 34,120,362 $21,050,156 $ 42,247,651
------------ ------------- ------------ ------------ ----------- ------------
DEFERRED CREDITS
Accum. def. income taxes $ 16,102,027 $ 100,232 $ (201,350) $ 4,039,681 $ 3,064,077 $ 6,362,237
Unamortized ITC 3,583,765 0 0 2,363,335 52,801 1,167,629
Deferred gas costs 1,479,510 0 0 89,248 152,355 1,237,907
Customer advances 7,805,625 0 0 5,649,831 107,982 2,047,812
Other 14,169,047 (1,577,968) 732,789 8,232,022 1,906,384 4,687,513
------------ ------------- ------------ ------------ ----------- ------------
TOTAL DEFERRED CREDITS $ 43,139,974 $ (1,477,736) $ 531,439 $ 20,374,117 $ 5,283,599 $ 15,503,098
------------ ------------- ------------ ------------ ----------- ------------
TOTAL EQUITY AND LIABS. $346,285,878 $(235,773,732) $231,221,615 $114,523,221 $58,846,691 $122,905,582
============ ============= ============ ============ =========== ============
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 1993
(Unaudited Statement)
SEMCO FINANCIAL
STOCKHOLDERS' INVESTMENT AND LIABILITIES ENERGY SERVICES SEDCO
- ---------------------------------------- ----------- ---------- ----------
<S> <C> <C> <C>
COMMON STOCK EQUITY
Common stock, par $1 $ 1,000 $ 250,000 $ 201,000
Capital surplus 1,500,000 358,296 2,232,946
Retained earnings 2,984,238 1,271,129 1,236,105
Common stock expense 0 0 0
Unearned comp - ESOT 0 0 0
----------- ---------- ----------
TOTAL COMMON STOCK EQUITY $ 4,485,238 $1,879,425 $3,670,051
----------- ---------- ----------
CONVERTIBLE PREF. STOCK
Pref. stock, par $1 $ 0 $ 0 $ 0
Premium on preferred 0 0 0
----------- ---------- ----------
TOTAL CONV. PREFERRED $ 0 $ 0 $ 0
----------- ---------- ----------
PREFERRED STOCK OF SUBS
Pref. stock, par $100 $ 0 $ 0 $ 0
Preferred stock expense 0 0 0
----------- ---------- ----------
TOTAL PREF. STOCK OF SUB. $ 0 $ 0 $ 0
----------- ---------- ----------
LONG TERM DEBT
Long-term debt nonaffil $ 0 $ 0 $ 0
Long term debt-ESOT 0 0 0
Capital lease obligation 0 0 0
----------- ---------- ----------
TOTAL LONG-TERM DEBT $ 0 $ 0 $ 0
----------- ---------- ----------
TOTAL CAPITALIZATION $ 4,485,238 $1,879,425 $3,670,051
----------- ---------- ----------
CURRENT LIABILITIES
Maturities of Lt-debt $ 0 $ 0 $ 0
Notes payable nonaffil 0 0 0
Notes payable affil 24,408,437 1,042,182 0
Accounts payable nonaffil 14,838,018 3,732 0
Accounts payable affil 1,295,659 22,155 25,410
Customer adv. payments 0 0 0
General taxes accrued 32,563 34,326 3,000
Income taxes accrued (1,288,973) 119,447 100,367
Interest accrued 0 0 0
Amts. payable to custs. 0 0 0
Accum def inc taxes-curr 0 (81,385) (143,892)
Other current liabs. 970,432 64,848 156,004
----------- ---------- ----------
TOTAL CURRENT LIABILITIES $40,256,136 $1,205,305 $ 140,889
----------- ---------- ----------
DEFERRED CREDITS
Accum. def. income taxes $ 2,918,400 $ 170,056 $ (351,306)
Unamortized ITC 0 0 0
Deferred gas costs 0 0 0
Customer advances 0 0 0
Other 0 0 188,307
----------- ---------- ----------
TOTAL DEFERRED CREDITS $ 2,918,400 $ 170,056 $ (162,999)
----------- ---------- ----------
TOTAL EQUITY AND LIABS. $47,659,774 $3,254,786 $3,647,941
=========== ========== ==========
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1993
(Unaudited Statement)
BATTLE CREEK GAS COMPANY MICHIGAN GAS COMPANY
--------------------------------------- -----------------------------------------
PUSH PURCHASE SEPARATE PUSH PURCHASE SEPARATE
STOCKHOLDERS' INVESTMENT AND LIABILITIES DOWN ADJUSTMENTS COMPANY DOWN ADJUSTMENTS COMPANY
- ---------------------------------------- ----------- ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
STOCKHOLDERS' INVESTMENT
Capital stock and surplus -
Common stock $ 0 $ (2,932) $ 2,932 $ 100 $ 0 $ 100
Capital surplus 19,370,599 14,379,497 4,991,102 30,919,186 1,486,318 29,432,868
Retained earnings (6,524,331) (27,955,560) 21,431,229 10,860,992 (1,486,318) 12,347,310
Capital stock expense - Common 0 0 0 0 0 0
Unearned compensation - ESOT 0 0 0 0 0 0
----------- ------------ ----------- ------------ ------------ ------------
$12,846,268 $(13,578,995) $26,425,263 $ 41,780,278 $ 0 $ 41,780,278
----------- ------------ ----------- ------------ ------------ ------------
Preferred stock and surplus -
Convertible preferred stock $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Premium on preferred stock 0 0 0 0 0 0
----------- ------------ ----------- ------------ ------------ ------------
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------- ------------ ----------- ------------ ------------ ------------
Cumulative preferred stock of subsidiary
Cumulative preferred stock $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Capital stock expense - Preferred 0 0 0 0 0 0
----------- ------------ ----------- ------------ ------------ ------------
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------- ------------ ----------- ------------ ------------ ------------
Total stockholders' investment $12,846,268 $(13,578,995) $26,425,263 $ 41,780,278 $ 0 $ 41,780,278
----------- ------------ ----------- ------------ ------------ ------------
LONG-TERM DEBT $19,666,667 $ 19,666,667 $ 0 $ 23,374,555 $ 0 $ 23,374,555
----------- ------------ ----------- ------------ ------------ ------------
NOTES PAYABLE TO BANKS $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------- ------------ ----------- ------------ ------------ ------------
Total Capitalization $32,512,935 $ 6,087,672 $26,425,263 $ 65,154,833 $ 0 $ 65,154,833
----------- ------------ ----------- ------------ ------------ ------------
CURRENT LIABILITIES:
Notes payable to affiliates $13,585,000 $ 0 $13,585,000 $ 29,346,000 $ 0 $ 29,346,000
Accounts payable 1,905,757 0 1,905,757 6,767,653 0 6,767,653
Accounts payable to affiliates 3,980,253 0 3,980,253 1,667,163 0 1,667,163
Accrued taxes (228,835) 0 (228,835) (1,023,899) 0 (1,023,899)
Accrued interest 5,006 0 5,006 13,454 0 13,454
Accumulated deferred income taxes 560,962 211,322 349,640 0 0 0
Other 1,081,237 0 1,081,237 3,029,862 0 3,029,862
----------- ------------ ----------- ------------ ------------ ------------
$20,889,380 $ 211,322 $20,678,058 $ 39,800,233 $ 0 $ 39,800,233
----------- ------------ ----------- ------------ ------------ ------------
DEFERRED AND OTHER CREDITS:
Accumulated deferred income taxes $ 4,384,873 $ (747,812) $ 5,132,685 $ 10,644,188 $ 0 $ 10,644,188
Investment tax credit 52,801 (927,332) 980,133 1,167,629 0 1,167,629
Customer advances for construction 107,982 0 107,982 2,047,812 0 2,047,812
Other 2,058,739 (1,477,075) 3,535,814 5,925,420 0 5,925,420
----------- ------------ ----------- ------------ ------------ ------------
$ 6,604,395 $ (3,152,219) $ 9,756,614 $ 19,785,049 $ 0 $ 19,785,049
----------- ------------ ----------- ------------ ------------ ------------
$60,006,710 $ 3,146,775 $56,859,935 $124,740,115 $ 0 $124,740,115
=========== ============ =========== ============ ============ ============
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
DECEMBER 31, 1993
(Unaudited Statement)
LOCAL DISTRIBUTION COMPANIES
CURRENT MONTH -----------------------------------
------------- SEM B C MICH SEMCO FINANCIAL
TOTAL ELIM. PARENT GAS CO GAS CO GAS CO ENERGY SERVICES SEDCO
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE BEGINNING
OF MONTH $11,662,284 $(56,808,606) $11,673,424 $17,847,581 $20,836,813 $12,359,189 $3,030,812 $1,302,322 $1,420,749
ADD:
NET INCOME (LOSS)
BEFORE DIVIDENDS
ON PREFERRED STOCK 2,029,630 (2,270,282) 2,018,490 1,111,295 594,417 838,121 (46,574) (31,193) (184,644)
TAX EFFECT ESOT
DIVIDENDS 0 0 0 0 0 0 0 0 0
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
$13,691,914 $(59,078,888) $13,691,914 $18,958,876 $21,431,230 $13,197,310 $2,984,238 $1,271,129 $1,236,105
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
DEDUCT:
DIVIDENDS ON:
COMMON STOCK $ 0 $ (850,000) $ 0 $ 0 $ 0 $ 850,000 $ 0 $ 0 $ 0
PREFERRED STOCK 0 (44,502) 0 44,502 0 0 0 0 0
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
$ 0 $ (894,502) $ 0 $ 44,502 $ 0 $ 850,000 $ 0 $ 0 $ 0
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
BALANCE END OF MONTH $13,691,914 $(58,184,386) $13,691,914 $18,914,374 $21,431,230 $12,347,310 $2,984,238 $1,271,129 $1,236,105
=========== ============ =========== =========== =========== =========== ========== ========== ==========
<CAPTION>
LOCAL DISTRIBUTION COMPANIES
YEAR TO DATE -----------------------------------
------------ SEM B C MICH SEMCO FINANCIAL
TOTAL ELIM. PARENT GAS CO GAS CO GAS CO ENERGY SERVICES SEDCO
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE BEGINNING
OF YEAR $11,546,719 $(56,044,480) $11,618,313 $18,228,210 $21,080,113 $11,639,929 $2,651,637 $1,076,420 $1,296,577
ADD:
NET INCOME (LOSS)
BEFORE DIVIDENDS
ON PREFERRED STOCK 9,581,383 (13,132,909) 9,509,789 4,764,167 3,866,117 4,107,381 332,601 194,709 (60,472)
TAX EFFECT ESOT
DIVIDENDS 1,324 0 1,324 0 0 0 0 0 0
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
$21,129,426 $(69,177,389) $21,129,426 $22,992,377 $24,946,230 $15,747,310 $2,984,238 $1,271,129 $1,236,105
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
DEDUCT:
DIVIDENDS ON:
COMMON STOCK $ 7,418,641 $(10,815,000) $ 7,418,641 $ 3,900,000 $ 3,515,000 $ 3,400,000 $ 0 $ 0 $ 0
PREFERRED STOCK 18,871 (178,003) 18,871 178,003 0 0 0 0 0
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
$ 7,437,512 $(10,993,003) $ 7,437,512 $ 4,078,003 $ 3,515,000 $ 3,400,000 $ 0 $ 0 $ 0
----------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- ----------
BALANCE END OF PERIOD $13,691,914 $(58,184,386) $13,691,914 $18,914,374 $21,431,230 $12,347,310 $2,984,238 $1,271,129 $1,236,105
=========== ============ =========== =========== =========== =========== ========== ========== ==========
% OF COMMON DIVIDENDS
TO NET INCOME 77.4%
===========
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
SOUTHEASTERN MICHIGAN GAS ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CAPITAL SURPLUS
FOR THE YEAR ENDED DECEMBER 31, 1993
UNAUDITED
---------
NATURAL GAS GROUP
-------------------------------------------
SEM B C MICH SEMCO FINANCIAL
TOTAL ELIM. PARENT GAS CO GAS CO GAS CO ENERGY SERVICES SEDCO
----------- ------------ ----------- ----------- ---------- ------ ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CAPITAL SURPLUS -
BEGINNING OF YEAR $58,964,822 $(21,902,281) $58,964,822 $12,819,937 $4,991,102 $ 0 $1,500,000 $ 358,296 $2,232,946
----------- ------------ ----------- ----------- ---------- ------ ---------- --------- ----------
ADD -
Excess of common stock
issued in connection
with dividend
reinvestment plan
over par value $ 5,064,873 $ 0 $ 5,064,873 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Excess of common stock
issued to Employee
Stock Ownership
Trust (ESOT) over
par value 572,333 0 572,333 0 0 0 0 0 0
Excess of common stock
issued in connection
with conversion of
preferred shares
over par value 24,777 0 24,777 0 0 0 0 0 0
Amounts payable under
stock compensation
plan 55,000 0 55,000 0 0 0 0 0 0
----------- ------------ ----------- ----------- ---------- ------ ---------- --------- ----------
$ 5,716,983 $ 0 $ 5,716,983 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
DEDUCT -
Issuance of 5% stock
dividend $ 470,800 $ 0 $ 470,800 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
----------- ------------ ----------- ----------- ---------- ------ ---------- --------- ----------
CAPITAL SURPLUS -
END OF YEAR $64,211,005 $(21,902,281) $64,211,005 $12,819,937 $4,991,102 $ 0 $1,500,000 $ 358,296 $2,232,946
=========== ============ =========== =========== ========== ====== ========== ========= ==========
</TABLE>
