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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15}D{
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1999
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COMMISSION FILE NUMBER 1-2297
EASTERN ENTERPRISES
9 Riverside Road, Weston, Massachusetts 02493
(781) 647-2300
MASSACHUSETTS 04-1270730
(State of organization) (I.R.S. Employer
Identification No.)
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Securities registered pursuant to Section 12(b) of the Act:
NAME OF EACH EXCHANGE
TITLE OF EACH CLASS ON WHICH REGISTERED
Common Stock, par value $1.00 per share New York Stock Exchange
Common Stock Purchase Rights, no par value Boston Stock Exchange
Pacific Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
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.
Disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is
not contained herein, but will be contained in definitive proxy or information
statements incorporated by reference in Part III of this
Form 10-K.
The aggregate market value of the voting stock held by non-affiliates of
the registrant was approximately $1,571 million as of February 29, 2000.
There were 27,146,679 shares of Common Stock, par value $1.00 per share,
outstanding as of February 29, 2000.
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DOCUMENTS INCORPORATED BY REFERENCE
Portions of the annual report to shareholders for the year ended December
31, 1999 are incorporated by reference into Part II of this Report.
Portions of the Registrant's 2000 definitive Proxy Statement for the
Annual Meeting of Shareholders to be held April 26, 2000 are incorporated by
reference into Part III of this Report.
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Exhibits to Form 10-K and Financial Statement Schedules have been included
only in copies of the Form 10-K filed with the Securities and Exchange
Commission.
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The purpose of this Form 10-K/A is to correct Exhibit 13.1. The 1998 column in
the "Six-Year Financial Review" contained an incorrect amount for per share
earnings from discontinued operations and accounting change. In addition the
"Dividends Declared Per Share" columnar headings were incorrectly labeled. The
1998 columnar heading should be labeled 1999 and 1997 heading should be labeled
1998.
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Exhibit 13.1
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SIX-YEAR FINANCIAL REVIEW
Years ended December 31, 1999 1998 1997 1996 1995 1994
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<S> <C> <C> <C> <C> <C> <C>
(In thousands, except per share amounts)
REVENUES:
Natural gas distribution $690,809 $667,106 $ 754,481 $ 755,391 $698,123 $708,694
Marine transportation 267,269 261,061 269,259 301,880 296,339 264,692
Other services 20,624 7,097 -- -- -- --
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TOTAL REVENUES 978,702 935,264 1,023,740 1,057,271 994,462 973,386
OPERATING EARNINGS:
Natural gas distribution 101,359 88,913 87,773 77,291 69,264 73,438
Marine transportation 21,114 26,634 34,614 58,415 57,828 35,805
Other services (2,932) (9,043) (1,481) -- -- --
Headquarters (6,102) (6,099) (5,589) (5,472) (5,756) (4,221)
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TOTAL OPERATING EARNINGS 113,439 100,405 115,317 130,234 121,336 105,022
OTHER INCOME (EXPENSE):
Interest income 7,964 7,582 8,997 9,419 5,633 1,953
Interest expense (39,136) (33,584) (37,411) (37,290) (41,273) (41,001)
Other, net 8,980 5,591 (4,033) (114) 4,109 2,546
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EARNINGS FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 91,247 79,994 82,870 102,249 89,805 68,520
Provision for income taxes 36,154 29,166 26,954 37,748 26,244 26,311
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EARNINGS FROM CONTINUING OPERATIONS BEFORE
EXTRAORDINARY ITEMS AND ACCOUNTING CHANGE 55,093 50,828 55,916 64,501 63,561 42,209
Discontinued operations and accounting change (1) -- 8,193 -- -- -- 12,212
Extraordinary items(2) -- 46,960 -- -- (6,500) --
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NET EARNINGS $ 55,093 $105,981 $ 55,916 $ 64,501 $ 57,061 $ 54,421
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NUMBER OF COMMON SHARES:
Outstanding at year end 27,114 22,525 22,383 22,248 22,097 22,272
Diluted weighted average 24,254 22,680 22,498 22,414 22,171 22,626
DILUTED PER SHARE DATA:
EARNINGS FROM CONTINUING OPERATIONS BEFORE
EXTRAORDINARY ITEMS AND ACCOUNTING CHANGE(3) $2.27 $2.24 $2.49 $2.88 $2.87 $1.87
Discontinued operations and accounting change(1) -- 0.36 -- -- -- 0.54
Extraordinary items(2) -- 2.07 -- -- (0.30) --
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NET EARNINGS $2.27 $4.67 $2.49 $2.88 $2.57 $2.41
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Dividends declared $ 1.69 $ 1.65 $ 1.61 $ 1.51 $ 1.42 $ 1.40
Shareholders' equity 27.83 24.24 21.64 20.72 19.30 18.09
FINANCIAL STATISTICS AND RATIOS:
Cash from operating activities $ 113,931 $ 134,256 $ 146,640 $ 128,439 $ 163,359 $ 121,885
Capital expenditures 88,117 113,712 89,216 119,783 85,352 64,014
Depreciation and amortization 81,373 75,521 71,322 67,229 64,005 61,197
Total assets 2,019,757 1,518,612 1,530,365 1,514,853 1,463,924 1,422,830
Long-term debt 515,232 385,519 371,492 367,683 379,018 387,901
Shareholders' equity 754,630 546,069 484,470 461,013 426,473 403,004
Debt/equity ratio 41/59 41/59 43/57 44/56 47/53 49/51
Return on total capital(4) 7.0% 8.0% 9.3% 10.6% 10.9% 8.5%
Return on equity(4) 8.5% 9.9% 11.9% 14.6% 15.4% 10.6%
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(1) Includes accounting change to adopt accrual method for unbilled revenue in 1998, and results from Water Products Group net of
tax in 1994.
(2) Provision (credits) for Coal Act liabilities of $(74,500) and $10,000 pre-tax in 1998 and 1995, respectively, and loss on
early extinguishment of debt of $2,255 pre-tax in 1998.
(3) Basic earnings per share from continuing operations before extraordinary items and accounting change were $2.28, $2.26, $2.50,
$2.90, $2.88 and $1.87 for 1999 through 1994, respectively.
(4) Based on earnings from continuing operations before extraordinary items and accounting change.
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STOCK PRICE RANGE
1999 1998
QUARTER HIGH LOW HIGH LOW
- ------- ---- --- ---- ---
FIRST $45 $36 3/8 $45 5/8 $40 3/8
SECOND 40 9/16 33 1/2 44 3/4 37 5/8
THIRD 47 3/8 38 1/16 43 1/2 38 1/4
FOURTH 57 7/16 46 44 1/4 40
DIVIDENDS DECLARED PER SHARE
QUARTER 1999 1998
- ------- ---- ----
FIRST $ .42 $ .41
SECOND .42 .41
THIRD .42 .41
FOURTH .43 .42
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TOTAL $1.69 $1.65
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this amended report to be signed on
its behalf by the undersigned, thereunto duly authorized.
EASTERN ENTERPRISES
Registrant
By /s/ JAMES J. HARPER
JAMES J. HARPER
Vice President and Controller
(Chief Accounting Officer)
Date: March 13, 2000
