SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
In the matter of )
)
EASTERN UTILITIES ASSOCIATES )
Boston, Massachusetts )
)
EUA COGENEX CORPORATION ) Certificate of
Lowell, Massachusetts ) Notification
) Pursuant to
) Rule 24
(70-7287) )
)
(Public Utility Holding Company Act of 1935) )
Enclosed herewith for filing by Eastern Utilities Associates and
its wholly-owned subsidiary, EUA Cogenex Corporation, in accordance
with the Order of the Securities and Exchange Commission entered in
the above matter on February 15, 1995 (Release No. 35-26232) and
pursuant to Rule 24 under the Public Utility Holding Company Act of 1935,
are the consolidated and consolidating balance sheet, income statement,
and statement of cash flows of EUA Cogenex for the quarter ended September 30,
1998 and such other information required to be filed by said order.
EASTERN UTILITIES ASSOCIATES
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
EUA COGENEX CORPORATION
By: /s/ Edward T. Liston
Edward T. Liston
President
February 10, 1999
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
ASSETS
EUA EUA EUA
Cogenex Cogenex Nova
Consolidated Elimination (Division) (Division)
<S> <C> <C> <C> <C>
Utility Plant and Other Investments:
Utility plant in service $ $ $ $
Less accumulated provision for depreciation
and amortization
Net utility plant in service
Construction work in progress
Net utility plant
Non-utility property 106,935,167 55,827,397
Less accumulated provision for depreciation 48,154,751 26,940,118
Net non-utility property 58,780,416 28,887,278
Investments in subsidiaries (at equity) 367,005 43,245,214 43,612,219
Excess of carrying values of investments
in subsidiaries
Notes receivable 30,538,386 28,475,164
Leases receivable 15,034,715 9,325,048
Other 11,561,255 6,282,570
Total Utility Plant and Other Investments 116,281,777 43,245,214 116,582,279
Current Assets:
Cash and temporary cash investments 4,440,298 2,342,570
Notes receivable 10,022,447 15,227,434 22,892,172
Leases receivable 1,668,058 907,644
Accounts receivable - Net:
Customers 13,090,734 7,230,441
Accrued unbilled revenue
Others 11,435,366 6,544,883
Accounts receivable - associated companies 1,510,278 6,649,542 6,292,978
Materials and supplies (at average cost):
Plant materials and operating supplies 829,474 15,354
Other current assets 2,385,442 1,528,289 3,826,054
Total Current Assets 45,382,097 23,405,264 50,052,095
Deferred Debits:
Unamortized debt expense 306,294 306,294
Unrecovered regulatory plant costs
Other deferred debits 4,113,904 2,709,733
Total Deferred Debits 4,420,198 3,016,027
Total Assets $166,084,073 $66,650,478 $169,650,401 $
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
ASSETS (continued)
EUA
EUA Day Matrix EUA EUA
Day (fka Day I & II) NEM Cogenex
(Division) (Division) Inc. Canada
<S> <C> <C> <C> <C>
Utility Plant and Other Investments:
Utility plant in service $ $ $
Less accumulated provision for depreciation
and amortization
Net utility plant in service
Construction work in progress
Net utility plant
Non-utility property 2,546,643 1,150,027 8,493,365 4,122
Less accumulated provision for depreciation 929,122 616,417 3,920,718
Net non-utility property 1,617,521 533,611 4,572,647 4,122
Investments in subsidiaries (at equity)
Excess of carrying values of investments
in subsidiaries
Notes receivable (7,283)
Leases receivable
Other 33,352
Total Utility Plant and Other Investments 1,617,521 533,611 4,605,999 (3,161)
Current Assets:
Cash and temporary cash investments 148,526 338,946 320,053
Notes receivable 1,981,267 28,398
Leases receivable
Accounts receivable - Net:
Customers 2,438,659 694,292 316,429
Accrued unbilled revenue
Others 5,473 (293) (180,889) 95
Accounts receivable - associated companies 578,151
Materials and supplies (at average cost):
Plant materials and operating supplies 252,484 434,260
Other current assets 59,344 (92) 685
Total Current Assets 5,463,903 433,967 852,258 665,660
Deferred Debits:
Unamortized debt expense
Unrecovered regulatory plant costs
Other deferred debits 1,118 1,088,522 59,629
Total Deferred Debits 1,118 1,088,522 59,629
Total Assets $7,082,542 $967,577 $6,546,780 $722,128
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION> EUA
EUA COGENEX EUA
ASSETS (continued) Citizens WEST MUPA
Corporation Corporation (Partnership)
<S> <C> <C> <C>
Utility Plant and Other Investments:
Utility plant in service $ $ $
Less accumulated provision for depreciation
and amortization
Net utility plant in service
Construction work in progress
Net utility plant
Non-utility property 4,224,602 1,832,702
Less accumulated provision for depreciation 893,055 647,453
Net non-utility property 3,331,547 1,185,248
Investments in subsidiaries (at equity)
Excess of carrying values of investments
in subsidiaries
Notes receivable 2,070,505
Leases receivable 2,055,168
Other 101,325 4,976,595
Total Utility Plant and Other Investments 3,432,873 10,287,516
Current Assets:
Cash and temporary cash investments 139,810 450,518 109
Notes receivable 214,785
Leases receivable 444,221
Accounts receivable - Net:
Customers 221,555 494,246 23,750
Accrued unbilled revenue
Others 1,165,060 975,630
Accounts receivable - associated companies 66,984 97,248
Materials and supplies (at average cost):
Plant materials and operating supplies 127,377
Other current assets 7,290 20,449
Total Current Assets 1,600,700 2,824,473 23,858
Deferred Debits:
Unamortized debt expense
Unrecovered regulatory plant costs
Other deferred debits 216,956 37,947
Total Deferred Debits 216,956 37,947
Total Assets $5,250,528 $13,149,936 $23,858
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
ASSETS (continued)
EUA EUA EUA EUA
WestCoast FRC II EC&S I EC&S II
(Partnership) (Partnership) (Partnership) (Partnership
<S> <C> <C> <C> <C>
Utility Plant and Other Investments:
Utility plant in service $ $ $ $
Less accumulated provision for depreciation
and amortization
Net utility plant in service
Construction work in progress
Net utility plant
Non-utility property 2,596,864 77,490 11,925,496 18,256,459
Less accumulated provision for depreciation 2,114,611 77,490 3,012,282 9,003,486
Net non-utility property 482,254 8,913,214 9,252,973
Investments in subsidiaries (at equity)
Excess of carrying values of investments
in subsidiaries
Notes receivable
Leases receivable 1,427,095 2,227,404
Other 41,399 58,120 67,894
Total Utility Plant and Other Investments 523,653 10,398,430 11,548,271
Current Assets:
Cash and temporary cash investments 128,241 52,909 157,480 361,136
Notes receivable 133,260
Leases receivable 105,242 210,951
Accounts receivable - Net:
Customers 18,164 588,761 516,822 547,615
Accrued unbilled revenue
Others 120,000 704,616 2,100,791
Accounts receivable - associated companies 1,124,459
Materials and supplies (at average cost):
Plant materials and operating supplies
Other current assets
Total Current Assets 399,665 641,670 1,484,160 4,344,953
Deferred Debits:
Unamortized debt expense
Unrecovered regulatory plant costs
Other deferred debits
Total Deferred Debits
Total Assets $923,318 $641,670 $11,882,589 $15,893,223
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
LIABILITIES
EUA EUA EUA
Cogenex Cogenex Nova
Consolidated Elimination Corporation (Division)
<S> <C> <C> <C> <C>
Capitalization:
Common equity $49,665,894 $15,434,029 $49,820,011 $
Non-redeemable preferred stock of sub. $
Redeemable preferred stock of $
subsidiaries - net 75
Preferred stock redemption cost $
Partnerships' capital ($0) 27,821,185
Long-term debt - net $78,200,000 78,200,000
Total Capitalization 127,865,969 43,255,214 128,020,011
Current Liabilities:
Preferred stock sinking fund requirements
Long-term debt due within one year 6,700,000 6,700,000
Notes payable 22,832,385 15,227,434 22,880,000
Accounts payable 1,407,431 197,302
Accounts payable - associated companies 1,884,735 6,649,542 3,703,176
Customer deposits
Taxes accrued 147,551 18,045
Interest accrued 396,709 1,528,289 396,709
Dividends declared
Other current liabilities 5,241,815 4,203,498
Total Current Liabilities 38,610,627 23,405,264 38,098,731
Deferred Credits:
Unamortized investment credit
Other deferred credits 2,765,838 (10,000) 2,338,805
Total Deferred Credits 2,765,838 (10,000) 2,338,805
Accumulated deferred taxes (3,158,360) 1,192,854
Commitments and contingencies
Total Liabilities and Capitalization $166,084,073 $66,650,478 $169,650,401 $
( ) Denotes Contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
LIABILITIES (continued) EUA
EUA Day Matrix EUA EUA
Day (fka Day I & II) NEM Cogenex
(Division) (Division) Inc. Canada
<S> <C> <C> <C> <C>
Capitalization:
Common equity $1,854,413 ($1,919,829) $9,677,157 $738,078
Non-redeemable preferred stock of subs.
Redeemable preferred stock of
subsidiaries - net
Preferred stock redemption cost
Partnerships' capital
Long-term debt - net
Total Capitalization 1,854,413 (1,919,829) 9,677,157 738,078
Current Liabilities:
Preferred stock sinking fund requirements
Long-term debt due within one year
Notes payable 1,801,059 2,657,802 (52,320)
Accounts payable 1,093,680 (322) (95,985)
Accounts payable - associated companies 1,454,347 171,302 401,263 (184,336)
Customer deposits
Taxes accrued 30,765 61,612
Interest accrued 455,741 58,302
Dividends declared
Other current liabilities 92,851 189,563
Total Current Liabilities 4,928,443 2,887,406 400,941 (81,466)
Deferred Credits:
Unamortized investment credit
Other deferred credits 299,686 (4) 65,515
Total Deferred Credits 299,686 (4) 65,515
Accumulated deferred taxes (3,531,315)
Commitments and contingencies
Total Liabilities and Capitalization $7,082,542 $967,577 $6,546,780 $722,128
( ) Denotes Contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANY
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
LIABILITIES (continued)
EUA
EUA COGENEX EUA EUA
Citizens WEST MUPA WestCoast
Corporation Corporation (Partn.) (Partn.)
<S> <S> <S> <S> <S>
Capitalization:
Common equity $293,640 $4,636,453 $ $
Non-redeemable preferred stock of subs.
Redeemable preferred stock of
subsidiaries - net 75
Preferred stock redemption cost 23,758 764,618
Partnerships' capital
Long-term debt - net
Total Capitalization 293,715 4,636,453 23,758 764,618
Current Liabilities:
Preferred stock sinking fund requirements
Long-term debt due within one year 3,654,500 7,118,777
Notes payable Accounts payable 42,196 30,567 100 100,150
Accounts payable - associated companies 603,154 1,488,669 34,870
Customer deposits
Taxes accrued 289 36,839
Interest accrued 398,859 615,387
Dividends declared
Other current liabilities 162,896 103,907 23,680
Total Current Liabilities 4,861,893 9,394,147 100 158,700
Deferred Credits:
Unamortized investment credit
Other deferred credits 28,475 5,681
Total Deferred Credits 28,475 5,681
Accumulated deferred taxes 66,445 (886,345)
Commitments and contingencies
Total Liabilities and Capitalization $5,250,528 $13,149,936 $23,858 $923,318
( ) Denotes Contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANY
CONSOLIDATING BALANCE SHEETS
SEPTEMBER 30, 1998
<CAPTION>
LIABILITIES (continued) EUA EUA EUA
FRC II EC&S I EC&S II
(Partn.) (Partn.) (Partnership)
<S> <C> <C> <C>
Capitalization: $ $ $
Common equity
Non-redeemable preferred stock of subs.
Redeemable preferred stock of
subsidiaries - net
Preferred stock redemption cost 641,670 11,639,180 14,751,959
Partnerships' capital
Long-term debt - net 641,670 11,639,180 14,751,959
Total Capitalization
Current Liabilities:
Preferred stock sinking fund requirements
Long-term debt due within one year
Notes payable Accounts payable 34,481 5,262
Accounts payable - associated companies 129,275 732,557
Customer deposits
Taxes accrued
Interest accrued
Dividends declared
Other current liabilities 100,654 364,767
Total Current Liabilities 264,410 1,102,585
Deferred Credits:
Unamortized investment credit
Other deferred credits (21,000) 38,679
Total Deferred Credits (21,000) 38,679
Accumulated deferred taxes
Commitments and contingencies
Total Liabilities and Capitalization $641,670 $11,882,589 $15,893,223
( ) Denotes Contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA EUA EUA
Cogenex Cogenex Nova
Consolidated Elimination Corporation (Division)
<S> <C> <C> <C> <C>
Operating Revenues $41,599,092 $ $17,969,880 $1,331,498
Operating Expenses:
Operation 28,878,740 12,809,506 1,851,988
Maintenance 601,938 286,132
Depreciation and amortization 9,330,197 5,391,697 44,121
Taxes - Other than income 657,584 271,616 56,251
- Income (credit) (150,724) (564,758) (387)
- Deferred 429,496 236,170
Total Operating Expenses 39,747,229 18,430,363 1,951,974
Operating Income 1,851,863 (460,482) (620,475)
Other Income and Deductions:
Interest and dividend income 4,754,554 723,478 4,596,312 (41)
Equity in earnings of jointly-
owned companies (9,798) 3,961,209 3,951,411
Allowance for other funds used during
construction
Other (deductions) income - net 591,997 297,769 22,063
Total Other Income 5,336,753 4,684,687 8,845,492 22,022
Income (Loss) Before Interest Charges 7,188,616 4,684,687 8,385,010 (598,453)
Interest Charges:
Interest on long-term debt 5,679,861 5,679,861
Amortization of debt expense and premium
Other interest expense (principally
short-term notes) 1,665,672 723,478 1,573,138 37,978
Allowance for borrowed funds used during
construction - (credit) (162,900) (78,800) F
Total Interest Charges 7,182,633 723,478 7,174,199 37,978
Net Income (Loss) before preferred return 5,984 3,961,209 1,210,811 (636,431)
Preferred Return Requirement
Net (Loss) Income $5,984 $3,961,209 $1,210,811 ($636,431)
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENTS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA
EUA Day Matrix EUA EUA
Day (fka Day I & II) NEM Cogenex
(Division) (Division) Inc. Canada
<S> <C> <C> <C> <C>
Operating Revenues $6,964,596 $7,574 $2,785,409 $126,352
Operating Expenses:
Operation 6,154,826 829,861 21,982 126,183
Maintenance 12,131
Depreciation and amortization 52,265 172,506 546,527
Taxes - Other than income 167,173 7,633 68 393
- Income (credit) 551,291 19,387
- Deferred 218,925
Total Operating Expenses 6,374,264 1,010,000 1,350,924 145,963
Operating Income 590,332 (1,002,425) 1,434,485 (19,611)
Other Income and Deductions:
Interest and dividend income 189,886
Equity in earnings of jointly-
owned companies
Allowance for other funds used during
construction
Other (deductions) income - net (37,765) (1,344) (135,652)
Total Other Income (37,765) (1,344) 54,234
Income (Loss) Before Interest Charges 552,567 (1,002,425) 1,433,142 34,623
Interest Charges:
Interest on long-term debt
Amortization of debt expense and premium
Other interest expense (principally
short-term notes) 87,869 30,670 78,926
Allowance for borrowed funds used during
construction - (credit)
Total Interest Charges 87,869 30,670 78,926
Net Income (Loss) before preferred return 464,698 (1,033,095) 1,433,142 (44,303)
Preferred Return Requirement
Net (Loss) Income $464,698 ($1,033,095) $1,433,142 ($44,303)
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENTS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
EUA
<CAPTION> EUA COGENEX EUA
Citizens WEST MUPA
Corporation Corporation (Partnership)
<S> <C> <C> <C>
Operating Revenues $4,289,351 $2,134,892 $
Operating Expenses:
Operation 3,548,363 2,265,539 75
Maintenance (1,266) 70,385
Depreciation and amortization 394,441 436,656
Taxes - Other than income 73,233 82,816
- Income (credit) 48,403 (204,660)
- Deferred (25,599)
Total Operating Expenses 4,063,174 2,625,137 75
Operating Income 226,177 (490,245) (75)
Other Income and Deductions:
Interest and dividend income 294,994
Equity in earnings of jointly-
owned companies
Allowance for other funds used during
construction
Other (deductions) income - net (4) (3,109) (100)
Total Other Income (4) 291,885 (100)
Income (Loss) Before Interest Charges 226,173 (198,360) (175)
Interest Charges:
Interest on long-term debt
Amortization of debt expense and premium
Other interest expense (principally
short-term notes) 222,886 352,596
Allowance for borrowed funds used during
construction - (credit) (66,800) (17,300)
Total Interest Charges 156,086 335,296
Net Income (Loss) before preferred return 70,087 (533,656) (175)
Preferred Return Requirement
Net (Loss) Income $70,087 ($533,656) ($175)
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING INCOME STATEMENTS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA EUA EUA EUA
WestCoast FRC II EC&S I EC&S II
(Partn.) (Partn.) (Partn.) (Partnership)
<S> <C> <C> <C> <C>
Operating Revenues $154,250 $ $1,680,748 $4,154,542
Operating Expenses:
Operation 5,788 136,305 1,128,325
Maintenance 30,370 29,853 174,332
Depreciation and amortization 152,714 602,463 1,536,808
Taxes - Other than income (1,600)
- Income (credit)
- Deferred
Total Operating Expenses 188,872 (1,600) 768,620 2,839,465
Operating Income (34,622) 1,600 912,128 1,315,077
Other Income and Deductions:
Interest and dividend income 48,354 434 96,363 251,729
Equity in earnings of jointly-
owned companies
Allowance for other funds used during
construction
Other (deductions) income - net 1,208 (100) (1,010) 450,041
Total Other Income 49,563 334 95,353 701,770
Income (Loss) Before Interest Charges 14,941 1,934 1,007,481 2,016,847
Interest Charges:
Interest on long-term debt
Amortization of debt expense and premium
Other interest expense (principally
short-term notes) 5,088
Allowance for borrowed funds used during
construction - (credit)
Total Interest Charges 5,088
Net Income (Loss) before preferred return 14,941 1,934 1,002,393 2,016,847
Preferred Return Requirement
Net (Loss) Income $14,941 $1,934 $1,002,393 $2,016,847
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF CASH FLOWS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA EUA EUA
Cogenex Cogenex Nova
Consolidated Elimination Corporation (Division)
<S> <C> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Loss) $5,984 $3,961,209 $1,210,811 ($636,431)
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation and amortization 9,478,875 (7) 5,540,375 44,121
Deferred taxes 429,496 236,170
Gains on sales of investments in energy savings
projects paid for with notes and leases receivable (1,376,368) 2 (1,113,018)
Non - cash costs of energy saving project sales 8,577,207 5,961,574
Pension liability 16,266 1 13,954 2,313
Amortization of deferred revenues (141,598) (2)
Collections and sales of project notes and leases reciev. 10,133,056 8,435,335
Undistributed Equity earnings of subsidiaries 4,834,155 4,834,155
Other - net (557,403) 1,696,289 1,184,595 (49,619)
Net Changes to Working Capital:
Accounts receivable 4,534,349 (492,338) 117,756 3,160,155
Materials and supplies 963,656 (963,033) 48,215 2,418
Accounts payable (1,113,159) 483,441 1,290,212 (1,268,951)
Accrued taxes (107,285) (26,904) (12,853)
Accrued interest (870,172) (732,762) (870,172) (1,413,187)
Other - net (1,614,227) 1,705,793 124,682 (5,450)
Net Cash Provided from (Used in) operating Activities 28,358,676 10,492,749 26,987,740 (177,484)
CASH FLOW FROM INVESTING ACTIVITIES:
Expenditures for investments in energy savings projects (20,496,156) 109,594 (15,439,249) (11,462)
Collections on notes and leases receivable 12,013,175 6,785,809
Proceeds from sale of Assets 3,853,374 1,989,650 3,860,138 1,982,886
Investments in subsidiaries
Net Cash Provided from (Used in) Investing Activities (4,629,607) 2,099,244 (4,793,302) 1,971,424
CASH FLOW FROM FINANCING ACTIVITIES:
Redemption:
Long-term debt (5,900,000) (5,900,000)
Premium on reacquisition and financing expenses
Dividends declared (2,450,000)
Capital contribution - EUA
Partner's contribution (withdrawal) (6,400,000)
Net increase (decrease) in short-term debt (17,861,136) (3,741,993) (14,670,000) (1,752,150)
Net Cash Provided from (Used in) financing Activities (23,761,136) (12,591,993) (20,570,000) (1,752,150)
NET (DECREASE) INCREASE IN CASH (32,067) 1,624,438 41,790
Cash and temporary cash investments at beginning of year 4,472,365 718,132 (41,790)
Cash and temporary cash investments at end of year $4,440,298 $2,342,570
Cash paid during the year for:
Interest (net of amounts capitalized) $6,312,461 $6,312,461
Income Taxes $624,825 $82,576
Conversion of investments in energy savings projects
to notes and leases receivable $2,159,467 $1,867,031
( ) Denotes contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF CASH FLOWS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA
EUA Day Matrix EUA EUA
Day (fka Day I & II) NEM Cogenex
(Division) (Division) Inc Canada
<S> <C> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Loss) $464,698 ($1,033,095) $1,433,142 ($44,303)
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation and amortization 52,264 172,506 546,526
Deferred taxes 218,925
Gains on sales of investments in energy savings
projects paid for with notes and leases receivable
Non - cash costs of energy savings project sales
Pension liability
Amortization of deferred revenues (124,587) 3,987
Collections and sales of project notes and leases receivable
Undistributed Equity earnings of subsidiaries
Other - net (381,293) 1 (142) (10,350)
Net Changes to Working Capital:
Accounts receivable (1,378,152) 292 231,859 969,598
Materials and supplies (26,944) (23,066)
Accounts payable 1,953,857 156,302 446,986 (3,520,144)
Accrued taxes 4,229 (86,555)
Accrued interest 74,794 30,670
Other - net 62,506 92 202,357
Net Cash Provided from (Used in) Operating Activ. 825,959 (696,390) 2,752,801 (2,485,410)
CASH FLOW FROM INVESTING ACTIVITIES:
Expenditures for investments in energy savings (958,287) (4,122)
Collections on notes and leases receivable 2,138 5,225,228
Proceeds from sale of Assets
Investments in subsidiaries
Net Cash Provided from (Used in) Investing Activ. (956,149) 5,221,106
CASH FLOW FROM FINANCING ACTIVITIES:
Redemption:
Long-term debt
Premium on reacquisition
Dividends declared (2,450,000)
Capital contribution - EUA
Partner's contribution(withdrawal)
Net increase (decrease) in short-term debt 128,987 696,390 (348,222) (3,198,495)
Net Cash Provided from (Used in) Financing Activ. 128,987 696,390 (2,798,222) (3,198,495)
NET (DECREASE) INCREASE IN CASH (1,203) (45,421) (462,799)
Cash and temporary cash investments at beginning of yr. 149,729 384,367 782,852
Cash and temporary cash investments at end of year $148,526 $338,946 $320,053
Cash paid during the year for:
Interest (net of amounts capitalized) $
Income Taxes $510,456
Conversion of investments in energy savings projects
to notes and leases receivable $
( ) Denotes contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF CASH FLOWS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA EUA EUA EUA
Citizens Cogenex West MUPA WestCoast
Corporation Corporation (Partnership) (Partnership)
<S> <C> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Loss) $70,087 ($533,656) ($175) $14,941
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation and amortization 394,441 436,655 152,714
Deferred taxes (25,599)
Gains on sales of investments in energy savings
projects paid for with notes and leases receivable (114,637)
Non - cash costs of energy saving project sales 357,023 1,263,368
Pension liability
Amortization of deferred revenues
Collections and sales of project notes and leases reciev. 510,314 45,362
Undistributed Equity earnings of subsidiaries
Other - net (50,628) 315,871
Net Changes to Working Capital:
Accounts receivable 1,764,789 1,588,854 14,896
Materials and supplies
Accounts payable (2,351) (112,792) 100 133,103
Accrued taxes 230 14,568
Accrued interest 222,884 352,077
Other - net 120,516 122,564 (393,730)
Net Cash Provided from (Used in) operating Activities 2,876,991 3,817,587 (75) (32,714)
CASH FLOW FROM INVESTING ACTIVITIES:
Expenditures for investments in energy savings projects (542,850) (2,937,434)
Collections on notes and leases receivable
Proceeds from sale of Assets
Investments in subsidiaries
Net Cash Provided from (Used in) Investing Activities (542,850) (2,937,434)
CASH FLOW FROM FINANCING ACTIVITIES:
Redemption:
Long-term debt
Premium on reacquisition and financing expenses
Dividends declared
Capital contribution - EUA
Partner's contribution(withdrawal) (500,000)
Net increase (decrease) in short-term debt 1,773,500) (669,040)
Net Cash Provided from (Used in) financing Activities 1,773,500) (669,040) (500,000)
NET (DECREASE) INCREASE IN CASH 560,641 211,113 (75) (532,714)
Cash and temporary cash investments at beginning of year (420,831) 239,405 184 660,955
Cash and temporary cash investments at end of year $139,810 $450,518 $109 $128,241
Cash paid during the year for:
Interest (net of amounts capitalized)
Income Taxes $19,277 $12,516
Conversion of investments in energy savings projects
to notes and leases receivable $205,694
( ) Denotes contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
EUA COGENEX CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENTS OF CASH FLOWS (continued)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<CAPTION>
EUA EUA EUA
FRC II EC&S I EC&S II
(Partnership) (Partnership (Partnership)
<S> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Loss) $1,934 $1,002,393 $2,016,847
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation and amortization 602,461 1,536,805
Deferred taxes
Gains on sales of investments in energy savings
projects paid for with notes and leases receivable (161,859) 13,148
Non - cash costs of energy saving project sales 6,000 989,242
Pension liability
Amortization of deferred revenues (21,000)
Collections and sales of project notes and leases reciev. 107,084 1,034,961
Undistributed Equity earnings of subsidiaries
Other - net 100,001 30,450
Net Changes to Working Capital:
Accounts receivable (181,919) (2,246,117)
Materials and supplies
Accounts payable 74,355 219,605
Accrued taxes
Accrued interest
Other - net (23,526) (118,445)
Net Cash Provided from (Used in) operating Activities 1,934 1,503,990 3,476,496
CASH FLOW FROM INVESTING ACTIVITIES:
Expenditures for investments in energy savings projects 25,888 (519,046)
Collections on notes and leases receivable
Proceeds from sale of Assets
Investments in subsidiaries
Net Cash Provided from (Used in) Investing Activities 25,888 (519,046)
CASH FLOW FROM FINANCING ACTIVITIES:
Redemption:
Long-term debt
Premium on reacquisition and financing expenses
Dividends declared
Capital contribution - EUA
Partner's contribution(withdrawal) (300,000) (2,000,000) (3,600,000)
Net increase (decrease) in short-term debt (17,099)
Net Cash Provided from (Used in) financing Activities (300,000) (2,017,099) (3,600,000)
NET (DECREASE) INCREASE IN CASH (298,066) (487,221) (642,550)
Cash and temporary cash investments at beginning of year 350,975 644,701 1,003,686
Cash and temporary cash investments at end of year $52,909 $157,480 $361,136
Cash paid during the year for:
Interest (net of amounts capitalized) $
Income Taxes
Conversion of investments in energy savings projects
to notes and leases receivable $40,984 $45,758
( ) Denotes contra
The accompanying notes are an integral part of the financial statements.
</TABLE>
Business Line Project Equipment
in Service Revenues
as of 9/30/98 as of 9/30/98
Demand Side Mgmt./Energy Mgmt. Service $90,808,496 $30,292,877
Manufacturing and Fabrication $ $8,303,669
Consulting $3,002,546
TOTAL $90,808,496 $41,599,092
Geographic Location Project Equipment
in Service Revenues
as of 9/30/98 as of 9/30/98
New England / New York Region $58,960,013 $30,708,841
United States excluding New England $31,848,483 $10,763,899
and New York
Canada $0 $126,352
All areas of the world excluding the
U.S. and Canada
TOTAL $90,808,496 $41,599,092
<TABLE> <S> <C>
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<PERIOD-END> SEP-30-1998
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0
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<LONG-TERM-NOTES-PAYABLE> 22832
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<GROSS-OPERATING-REVENUE> 41599
<INCOME-TAX-EXPENSE> 279
<OTHER-OPERATING-EXPENSES> 39468
<TOTAL-OPERATING-EXPENSES> 39747
<OPERATING-INCOME-LOSS> 1852
<OTHER-INCOME-NET> 5337
<INCOME-BEFORE-INTEREST-EXPEN> 7189
<TOTAL-INTEREST-EXPENSE> 7183
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<EARNINGS-AVAILABLE-FOR-COMM> 6
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