FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Quarterly Report under section 13 or 15(d)
of the Securities Exchange Act of 1934
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 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 0-14183
ENERGY WEST INCORPORATED
(Exact name of registrant as specified in its charter)
Montana 81-0141785
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1 First Avenue South, Great Falls, Mt. 59401
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code (406)-791-7500
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 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.
YesX No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at March 31, 1995
(Common stock, $.15 par value) 2.244,325
ENERGY WEST INCORPORATED
INDEX TO FORM 10-Q
Page No.
Part I - Financial Information
Item 1 - Financial Statements
Condensed consolidated balance sheets as of
March 31, 1995 and June 30, 1994 1
Condensed consolidated statements of income - three months
and nine months ended March 31, 1995 and 1994 2
Condensed consolidated statements of cash
flows - nine months ended March 31, 1995 and 1994 3
Notes to Condensed Consolidated Financial Statements 4-8
Item 2 - Management's discussion and analysis of
financial condition and results of operations 9-14
Part II Other Information
Item 1 - Legal Proceedings 15
Item 2 - Changes in Securities 15
Item 3 - Defaults upon Senior Securities 15
Item 4 - Submission of Matters to a Vote of Security Holders 15
Item 5 - Other Information 15
Item 6 - Reports on Form 8-K 15
Signatures
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
March 31, 1995
Note 1 - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the nine month
period ended March 31, 1995 are not necessarily indicative of the results that
may be expected for the year ended June 30, 1995 due to seasonal factors
affecting gas utility, construction and other operations. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Energy West Incorporated (the Company) annual
report on Form 10-K for the year ended June 30, 1994.
Note 2 - Earnings Per Common and Common Equivalent Share
Earnings per common share are computed based on the weighted average number
of common shares issued and outstanding and common stock equivalents, if
dilutive.
Note 3 - Principle Accounting Policies
Income Taxes
Effective July 1, 1993, the Company changed its method of accounting for
income taxes from the deferred method to the liability method required by
Statement of Financial Accounting Standard (SFAS) No. 109. For regulated
operations, the cumulative effect of this change in accounting method on
July 1, 1993 resulted in the recording of a regulatory asset of $600,867
and a regulatory liability of $204,620. For nonregulated operations, the
cumulative effect of this change in accounting method on July 1, 1993 was
to increase net income by $92,365.
Note 4 - Income Taxes
Under the liability method prescribed by SFAS No. 109, deferred income taxes
reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and
amounts used for income tax purposes. At March 31, 1995, components of the
Company's deferred tax assets and deferred tax liabilities are as follows:
Deferred tax assets:
Allowance for doubtful accounts.......$21,333
Unamortized Investment Tax Credit.....191,286
Contributions in Aid of Construction...94,470
Other nondeductible accruals..........145,958
Customer Refunds Receivable............32,387
Total deferred tax assets.............485,434
=======
Deferred tax liabilities:
Property, Plant and Equipment.......2,562,008
Unamortized Debt Issue Costs..........221,230
Unamortized Environmental Study Costs..81,442
Covenant Not to Compete................94,343
Total deferred tax liabilities......2,959,023
Net deferred tax liability..... ......$2,473,589
=========
Income tax expense consists of the following:
Current income taxes:
Federal..............................$851,225
State.................................125,127
Total current income taxes...............976,352
Deferred income taxes (benefits):
Excess tax depreciation................87,650
Excess tax (book) amortization........(36,245)
Recoverable cost of gas purchases....(222,179)
Postretirement Benefit Other Than
Pension expenses....................(17,808)
Contributions in Aid of Construction..(23,705)
Other..................................16,889
Total deferred income taxes.............(195,398)
Investment tax credit, net...............(15,797)
Total income taxes......................$765,157
=======
Income taxes............................$735,860
Income taxes-other income.................29,297
Total income taxes......................$765,157
=======
Note 4 - Income Taxes (continued)
Income tax expense from operations differs from the amount computed by applying
the federal statutory rate to pre-tax income for the following reasons:
Tax expense at statutory rates - 34%....................$732,193
State income taxes, net of federal income taxes...........65,208
Amortization of deferred investment tax credits..........(15,797)
Other....................................................(16,447)
Total income taxes......................................$765,157
========
Note 5 - Commitments and Contingencies
Commitments
The Company has entered into long-term, take or pay natural gas supply
contracts which expire beginning in 1994 and ending in 2005. The
contracts generally require the Company to purchase specified minimum
volumes of natural gas at a fixed price which is subject to
renegotiating every two years. Current prices per Mcf for these
contracts range from $1.78 to $1.90. Based on current prices, the
minimum take or pay obligation at March 31, 1995 for each of the next five
years and in total is as follows:
Fiscal Year
1995 $2,267,234
1996 1,460,894
1997 1,460,894
1998 1,460,894
1999 1,460,894
Thereafter 7,097,186
Total $15,207,996
===========
The Company has been granted a non-exclusive franchise to install an
underground natural gas system in the town of West
Yellowstone,Montana. The Company has installed the distribution system in
the ground and the system is expected to be operational in the spring of
1995. The cost of the project is approximately $1,700,000 and will be
financed by interim short-term borrowing. The project will serve
approximately 300 to 350 customers the first two years.
Note 5 - Commitments and Contingencies (Continued)
Environmental Contingency
The Company owned and operated a manufactured gas plant from 1909 to 1928.
The Company's service center and shop in Great Falls is presently
located on the site. The five-acre site is one of approximately
1,500 manufactured gas plant sites listed on a national survey prepared for
the Environmental Protection Agency in 1985. The Company has retained an
environmental consulting firm to investigate the site for possible
environmental contamination. The Company initiated the investigation on
its own accord. The consultant recently concluded a site investigation
which indicated that some contamination exists on the site. The
contamination consists of certain compounds from purifier wastes and
coal tar. The Company has notified appropriate federal and state
environmental authorities of the existence of such contamination. The
results of this investigation has been submitted to the Montana Department
of Health and Environmental Sciences. The Company's consultant has
indicated that further environmental investigation or remediation may be
necessary, but the Department has not yet requested or ordered such
investigation or remediation. It is not possible at this time to
determine the actual costs of the further investigation or remediation.
Based upon a number of technical and regulatory assumptions that may change
in the future, the Company's consultant has estimated that the cost of
further investigation and remediation likely will be at least $300,000
and possibly could be higher by a material amount.
The Company believes that utility regulatory authorities in other
jurisdictions have generally permitted all or a portion of costs of
environmental remediation relating to manufactured gas plant sites to be
recovered in rates. The Company has filed an application with the Montana
Public Service commission, that requests a surcharge be placed on customer
bills to recover in rates, the projected costs associated with the
investigation and any subsequent remediation that may occur. That
application is currently pending before the Montana Public Service
Commission. However there can be no assurance that, if requested, the Montana
Public Service Commission will permit all or any part of remediation
costs associated with the site to be recovered in the Company's rates.
Note 6 - Operating Revenues and Expenses
Regulated utility and non-regulated non-utility operating revenues and
expenses were as follows:
Three Months Nine Months
Ended Ended
March 31 March 31
1995 1994 1995 1994
Operating Revenues:
Regulated.......$8,771,617 $9,385,536 $19,787,687 $20,245,708
Non-regulated....1,228,369 382,459 (1) 2,831,377 2,672,182
$9,999,986 $9,767,995 $22,619,064 $22,917,890
========= ========= ========== ==========
Operating Expenses:
Gas Purchased:
Regulated.......$5,556,029 $6,104,764 $12,338,645 $13,143,587
Non-regulated.... 348,737 (342,735)(1) 850,358 922,674
$5,904,766 $5,762,029 $13,189,003 $14,066,261
========= ========= ========= =========
Distribution, general and administrative:
Regulated...... $1,263,171 $1,287,141 $3,820,337 $3,647,614
Non-regulated... 343,038 268,598 925,271 853,363
$1,606,209 $1,555,739 $4,745,608 $4,500,977
========= ========= ========= =========
Maintenance:
Regulated....... $95,413 $84,164 $230,047 $248,239
Non-regulated... 284 14,366 942 14,520
$95,697 $98,530 $230,989 $262,759
====== ====== ======= =======
Depreciation and amortization:
Regulated....... $318,934 $294,152 $911,566 $860,126
Non-regulated... 92,075 86,573 267,276 248,077
$411,009 $380,725 $1,178,842 $1,108,203
======= ======= ======= =======
Taxes other than income:
Regulated....... $129,028 $112,929 $367,701 $322,676
Non-regulated... 24,599 25,196 75,839 74,616
$153,627 $138,125 $443,540 $397,252
======= ======== ======= =======
Income taxes:
Regulated....... $412,988 $480,030 $470,395 $475,828
Non-regulated... 151,749 99,860 265,465 197,823
$564,737 $579,890 $735,860 $673,651
======= ======= ======= ======
(1) Effective with the third quarter of fiscal 1994, revenues & gas
purchased are presented on a gross margin basis, from a gross revenue and
gross gas cost basis, for one of the Company's non-regulated subsidiaries.
FORM 10-Q
ENERGY WEST INCORPORATED
Item 2 - Management's Discussion and Analysis of Interim Financial
Statements
The following discussion reflects results of operations of the Company and
its consolidated subsidiaries for the periods indicated. The Company's
utility operations are conducted through its Great Falls division and its
Cody division. Since January 15, 1993, the Company has also been
involved in the regulated distribution of propane to the public through an
underground propane vapor distribution system in the Payson, Arizona area
(Broken Bow Gas Company). In September, 1993, the Company began operating
a new underground propane vapor distribution system in Cascade, Montana,
a town located 23 miles southwest of Great Falls. The acquisition of Broken
Bow Gas Company was effective as of November 1, 1992 and results of
operations of Broken Bow since that time have been included in the Company's
financial statements.
The Company conducts certain non-utility operations through its three
wholly-owned subsidiaries: Rocky Mountain Fuels, Inc. (RMF), a
distributor of bulk propane in northwestern Wyoming, Cascade, Montana and
the Payson, Arizona areas; Vesta, Inc. (Vesta), which is engaged in oil and
gas development and gas marketing in Montana and Wyoming; and Montana Sun,
Inc., which owns one commercial property and one parcel of undeveloped land
in Great Falls, Montana.
Liquidity and Capital Resources
The Company's operating capital needs, as well as dividend payments and
capital expenditures, are generally funded through cash flow from
operating activities, short-term borrowings and liquidation of
temporary cash investments. Historically, to the extent cash flow has not
been sufficient to fund capital expenditures, the Company has made long-term
borrowings or issued equity securities to fund capital expansion
projects or reduce short-term borrowings.
The Company's short-term borrowing requirements vary according to the
seasonal nature of its sales and expense activity. The Company has
greater need for short-term borrowings during periods when internally
generated funds are not sufficient to cover all capital and operating
requirements, including costs of gas purchases, financing of customer
accounts receivable and capital expenditures. In general, the
Company's short-term borrowing needs for purchases of gas inventory and
capital expenditures are greatest during the summer months, and the
Company's short-term borrowing needs for financing of customer accounts
receivable are greatest during the winter months. In addition, two years
ago, the Company used short-term borrowings to finance the acquisitions of
its propane operations. Short-term borrowings utilized for construction or
property acquisitions generally are replaced by permanent
financing when it becomes economical and practical to do so.
At March 31, 1995, the Company had a $8,000,000 bank line of credit, of
which $1,435,000 had been borrowed.
The Company was provided net cash by operating activities for the nine
months ended March 31, 1995 in the amount of $2,649,187, as compared to
$1,839,598 for the nine months ended March 31, 1994. This increase in cash
provided by operating activities is primarily due to lower working capital
requirements of approximately $1,278,000 offset by a decrease in net deferred
income tax liabilities of approximately $444,000. Cash used in investing
activities was $2,824,369 for the nine months ended March 31, 1995, as
compared to $1,646,270 for the nine months ended March 31, 1994 and was
primarily due to an increase in construction expenditures of approximately
$877,000 for the nine month period primarily due to construction in the
West Yellowstone, Montana area and restricted deposits decreasing
approximately $410,000 due to the issuance of two Industrial Development
Revenue Bonds in September,1992, the proceeds of which were used to
refund the Company's two outstanding Industrial Development Bonds and
to finance certain expansions and improvements to the Company's natural gas
system within Cascade County, Montana, as well as expansion to the utility
system in the Payson, Arizona area. Cash used in financing activities was
approximately $338,000 for the nine months ended March 31, 1995, as
compared to cash provided of approximately $46,000 for the nine months ended
March 31, 1994. The increase in cash used in financing activities
resulted primarily a reduction in short-term borrowings of approximately
$800,000 and an increase in dividends paid of approximately $59,000,
partially offset by an increase in the proceeds from the sale of Common
Stock of approximately $394,000 and from reduced debt issuance and
reacquisition costs of approximately $65,000.
Capital expenditures of the Company are primarily for expansion and
improvement of its gas utility properties. To a lesser extent, funds are
also expended to meet the equipment needs of the Company's operating
subsidiaries and to meet the Company's administrative needs. The Company's
capital expenditures, excluding RMF's expenditures for the acquisition of
propane operations, have remained constant at approximately $1.2
million for each of the past three fiscal years. The Company expects to
incur approximately $4.3 million for capital expenditures in fiscal 1995.
As of March 31, 1995, approximately $3.0 million of that amount had been
expended.
The Company expects to continue to evaluate opportunities to expand its
existing businesses. Historically, the Company has financed business
expansions through internal cash flow, short-term borrowings and
long-term borrowings.
Results of Consolidated Operations
Comparison of Third Quarter of Fiscal 1995 Ended March 31, 1995 and
Fiscal 1994 Ended March 31, 1994
The Company's net income for the third quarter ended March 31, 1995 was
$1,045,912 compared to $1,090,102 for the quarter ended March 31, 1994.
The decrease in the 1995 net income was primarily due to an increase in
short-term interest costs and warmer weather in the Broken Bow division of
Arizona.
Utility Operations -
Utility operating revenues in the third quarter of fiscal 1995 were
$8,772,000 compared to $9,386,000 for the third quarter of fiscal 1994.
Gross Margin, which is defined as operating revenues less gas purchased, was
$3,216,000 for the third quarter of fiscal 1995 compared to gross margin of
$3,281,000 for the third quarter of fiscal 1994. Gross margins decreased 2%
because of warmer weather in the utility's operating areas, resulting in
reduced natural gas volumes as well as lower transportation sales, reducing
margins.
The decrease in revenues in the third quarter of fiscal 1995 was primarily
due to decreased industrial gas volumes and reduced natural gas volumes due
to 2% warmer weather than the same period throughout the utility operation.
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and
federal and state income taxes, were approximately $1,359,000 for the third
quarter of fiscal 1995, as compared to $1,371,000 for the same period in
fiscal 1994. The 1% decrease in the period is generally due to
capitalization of payrolls, due to expansion of existing and new utility
systems in the Company's service areas.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $222,000 for the third quarter of fiscal 1995, as compared
to $185,000 in the comparable period in fiscal 1994, due primarily to higher
interest rates on short-term borrowings.
Income Taxes -
State and federal income taxes of the Company's utility divisions was
approximately $413,000 for the third quarter of fiscal 1995, as compared to
approximately $480,000 for the same period in fiscal 1994. The decrease in
income taxes was due to lower pre-tax income of the utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the three months ended March 31, 1995, RMF generated net income of
approximately $63,000 compared to net income of approximately $148,000 for
the three months ended March 31, 1994. Approximately $29,000 of RMF's net
income for the third quarter of fiscal 1995 was attributable to the Wyo L-P
gas division, while approximately $41,000 was attributable to the Petrogas
division in Arizona, which serves the Payson, Arizona area. Missouri River
Propane and Big Horn Answering Service account for the balance, which had a
loss for the quarter. Wyo L-P Gas serves northwestern and central Wyoming,
while Missouri River Propane in Montana is a new bulk propane operation in
the Cascade, MT area, and Big Horn Answering Service is located in Cody, WY.
RMF's revenues and gross margins decreased for the three months ended March
31, 1995 compared to the same period last year, due to decreased sales of
propane in the Wyo L-P gas division in the Wyoming area, because of warmer
weather than the same quarter one year ago and higher propane costs resulting
in a lower gross margin per gallon. This decrease was tempered somewhat by
continued customer growth in the Petrogas division in the Payson, Arizona
area.
Vesta -
For the three months ended March 31, 1995, Vesta's net income was
approximately $181,000 compared to $56,000 for the three months ended March
31, 1994, primarily due to increased gas marketing margins in Transenergy,
Vesta's gas marketing subsidiary. Vesta's gross marketing margin in the
third quarter of fiscal 1995 increased 220% to approximately $303,000 from
$95,000 for the third quarter of fiscal 1994.
Montana Sun, Inc. -
For the three months ended March 31, 1995, Montana Sun, Inc.'s net income was
approximately $15,000 compared to $3,700 for the three months ended March 31,
1994. This increase in income was primarily due to reduced short-term
interest costs on Montana Sun, Inc.'s portion of the corporate line of credit
as well as lower maintenance costs on Montana Sun's real estate properties.
Results of Consolidated Operations
Comparison of Nine Months Ended March 31, 1995 and Fiscal 1994 Ended March
31, 1994
The Company's net income for the first nine months ended March 31, 1995 was
$1,461,000 compared to $1,484,000 for the nine months ended March 31, 1994.
The decrease in the Fiscal 1995 net income was primarily due to a one-time
increase to earnings of $92,688 last year from the adoption of SFAS No. 109
in the first quarter of fiscal 1994, however increased margins, increased
industrial gas volumes in the Cody area, customer growth within the
regulated entities and increased gas marketing margins of the company's gas
marketing subsidiary, Vesta, Inc., partially offset this reduction in
earnings from last year.
Utility Operations -
Utility operating revenues in the first nine months of fiscal 1995 were
approximately $19,788,000 compared to $20,246,000 for the first nine months
of fiscal 1994. Gross margin was approximately $7,449,000 for the first nine
months of fiscal 1995 compared to gross margin of approximately $7,102,000
for the first nine months of fiscal 1994.
The 2% decrease in revenues and 5% increase in gross margin for the first
nine months of fiscal 1995 was primarily due to warmer weather than one year
ago in the Company's service areas, modified by increased industrial gas
volumes and customer growth and because of a timing difference booked last
fiscal year which reduced last year's fiscal 1994 margins, during the
completion of the phase-in of open-access gas purchases by the Great Falls
division.
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and
federal and state income taxes, were $4,050,000 for the first nine months
of fiscal 1995, as compared to $3,896,000 for the same period in fiscal 1994.
The 4% increase in the period is due to additional personnel hired in the
Company's utility divisions, because of growth and normal inflation.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $720,000 for the first nine months of fiscal 1995, as compared
to $638,000 in the comparable period in fiscal 1994 and was due primarily to
higher interest rates on short-term borrowings and higher short-term
borrowings required, due to capital expansion projects in West Yellowstone,
Montana and Payson, Arizona.
Income Taxes -
State and federal income taxes of the Company's utility divisions were
approximately $470,000 for the first nine months of fiscal 1995, as compared
to $476,000 for the same period in fiscal 1994. Pre-tax income the first
nine months of 1995 is comparable to the same period in fiscal 1994 for the
utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the nine months ended March 31, 1995, RMF generated net income of
approximately $136,000 compared to $224,000 for the nine months ended March
31, 1994. Approximately $85,700 of RMF's net income for the first nine
months of fiscal 1995 was attributable to the Wyo L-P division, which serves
northwestern Wyoming and approximately $55,000 was attributable to the
Petrogas division, which serves the Payson, Arizona area. Net income was
partially offset by Missouri River Propane, a new bulk propane distributor in
Cascade, MT, which has a loss for the nine month period, while Big Horn
Answering Service in Cody, Wyoming, showed minimal income.
Vesta -
For the nine months ended March 31, 1995, Vesta's net income was
approximately $273,000 compared to $158,000 for the nine months ended March
31, 1994. This increase to net income was primarily due to increased gas
marketing margins at Vesta's gas marketing subsidiary, Transenergy. Vesta's
gas margins increased 133% to approximately $471,000 in fiscal 1995 from the
same period one year ago.
Partially offsetting this increase to earnings was a one-time increase to
earnings last fiscal year of approximately $42,000, due to the adoption of
SFAS No. 109, which changed the method of accounting for income taxes from
the deferred method to the liability method, which was booked in the first
quarter of Fiscal 1994.
Montana Sun, Inc. -
Montana Sun, Inc's net income decreased to approximately $42,000 the first
nine months of fiscal 1995 as compared to $75,000 this same period one year
ago, primarily due to a one-time increase to earnings last fiscal year of
approximately $45,000, from the adoption of SFAS No. 109, which changed the
method of accounting for income taxes from the deferred method to the
liability method, which was booked in the first quarter of fiscal 1994. This
decrease to net income was partially offset by reduced short-term interest
costs on Montana Sun, Inc.'s portion of the corporate line of credit as well
as lower maintenance costs on Montana Sun's real estate properties.
FORM 10-Q
Part II - Other Information
Item 1. Legal Proceedings - Not Applicable
Item 2. Changes in Securities - Not Applicable
Item 3. Defaults upon Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders -
Not Applicable
Item 5. Other Information - Not Applicable
Item 6. Exhibits and Reports on Form 8-K
A. There are no exhibits to this report.
B. No reports on Form 8-K have been filed during the
quarter ended March 31, 1995.
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.
/s/Larry D. Geske
_______________________________
(Larry D. Geske, President and
Chief Executive Officer)
Dated May 12, 1995
/s/ William J. Quast
__________________________________
(William J. Quast, Vice-President, Treasurer,
Controller and Assistant Secretary
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.
_______________________________
(Larry D. Geske, President and
Chief Executive Officer)
Dated May 12, 1995
______________________________
(William J. Quast, Vice-President,
Treasurer, Controller and
Assistant Secretary)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
FORM 10Q
ENERGY WEST INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
March 31 June 30
1995 1994
<S> <C> <C>
Current Assets:
Cash ($500) $512,213
Restricted Deposit with Trustee 59,383 204,550
Accounts Receivable (net) 5,247,408 2,627,531
Natural Gas and Propane Inventory 639,415 699,623
Materials and Supplies 491,152 388,547
Prepayments and other 146,585 199,380
Refundable Income Tax Payments 0 237,023
Recoverable Cost of Gas Purchases (203,642) 400,966
Prepaid Gas Costs 987 0
Deferred Tax Assets-Currentnt 148,099 0
Total Current Assets 6,528,887 5,269,833
Investments 12,476 12,476
Notes Receivable Due After One Year 22,608 94,721
Property, Plant and Equipment-Net 22,552,810 20,562,816
Deferred Charges 3,090,343 2,846,130
Total Assets $32,207,124 $28,785,976
CAPITALIZATION AND LIABILITIES
Current Liabilities:
Note payable to bank $1,435,000 $1,275,000
Long-Term obligations due within one year 389,561 343,064
Accounts Payable - Gas Purchases 1,990,165 1,263,839
Other Current and Accrued Liabilities 2,293,238 1,310,750
Total Current Liabilities 6,107,964 4,192,653
Deferred Credits 5,070,669 4,482,297
Long-term obligations 10,401,227 10,718,064
Stockholders' Equity
Preferred Stock 0 0
Common Stock (2,244,325 and
2,191,478 shares were outstanding at March
31, 1995 and June 30, 1994 respectively) 336,649 328,722
Capital in Excess of Par Value 2,040,687 1,643,793
Retained Earnings 8,249,927 7,420,447
Total Stockholders' Equity 10,627,263 9,392,962
Total Capitalization and Liabilities $32,207,123 $28,785,976
The accompanying notes are an integral part of these condensed financial statements.
FORM 10Q
ENERGY WEST INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
ThreeMonths Ended Nine Months Ended
March 31 March 31
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Operating Revenues $9,999,986 $9,767,995 $22,619,064 $22,917,890
Operating Expenses
Gas Purchased 5,904,766 5,762,029 13,189,003 14,066,261
Distribution General&Administrative 1,606,209 1,555,739 4,745,608 4,500,977
Maintenance 95,697 98,530 230,989 262,759
Depreciation and Amortization 411,009 380,725 1,178,842 1,108,203
Other Taxes 153,627 138,125 443,540 397,292
Total Operating Expenses 8,171,308 7,935,148 19,787,982 20,335,492
Operating Income 1,828,678 1,832,847 2,831,082 2,582,398
Other Income - Net 52,242 58,889 148,929 198,296
Income Before Interest Charges & Taxes 1,880,920 1,891,736 2,980,011 2,780,694
Interest Charges:
Long-Term Debt 193,946 201,858 544,681 577,919
Other 76,325 19,886 237,978 137,615
Total Interest Charges 270,271 221,744 782,659 715,534
Net Income before Income Taxes 1,610,649 1,669,992 2,197,352 2,065,160
Income Taxes 564,737 579,890 735,860 673,651
Net Income Before Cumulative Effect of Change in Accounting Principle 1,045,912 1,090,102 1,461,492 1,391,509
Cumulative Effect of Change as of July 1, 1993 from Adoption of FASB 109 - - - 92,6
88
Net Income $1,045,912 $1,090,102 $1,461,492 $1,484,197
Income Per Share of Common and Common Equivalent Stock:
Before Cumulative Effect of a Change in Accounting Principle $0.47 $0.49 $0.65 $0.63
Cumulative Effect of Change as of July 1, 1993 from Adoption of FASB 109 0.00 0.00 0.00 0.04
Earnings per Share $0.47 $0.49 $0.65 $0.67
Dividends per common share $0.0950 $0.0875 $0.2850 $0.2625
Weighted Average Common Shares Outstanding 2,232,297 2,206,982 2,232,297 2,206,982
The accompanying notes are an integral part of these condensed financial statements.
FORM 10Q
ENERGY WEST INCORPORATED
Condensed Consolidated Statements of Cash Flows
Nine Months Ended
March 31
1995 1994
<S> <C> <C>
Operating Activities:
Net Income $1,461,492 $1,484,197
Adjustment fo Reconcile Net Income to Cash Flows:
Depreciation and Amortization 1,156,057 1,171,203
Investment Tax Credit - Net (15,797) (15,797)
Deferred Income Taxes - Net (189,384) 254,858
Changes in Working Capital Amounts Other
Than Cash and Debt 238,527 (1,039,248)
(Gain) Loss on Sale of Property, Plant & Equipment (1,708) (15,615)
Net Cash Provided By (Used In) Operating Activities 2,649,187 1,839,598
Investing Activities:
Construction Expenditures (3,034,269) (2,157,684)
Restricted Deposit 2,449 411,961
Proceeds from Sale of Property, Plant & Equipment 64,249 26,491
Collection of Long-Term Notes Receivable 72,113 30,732
Proceeds from Contributions in Aid of Construction 71,089 42,230
Net Cash Provided By (Used In) Investing Activities (2,824,369) (1,646,270)
Financing Activities:
Proceeds from Long-Term Borrowings 52,545 17,949
Debt Issuance and Reacquisition Costs 0 (65,559)
Repayment of Long-Term Borrowings (322,885) (304,502)
Proceeds from Short-Term Borrowings 13,700,000 15,086,124
Repayment of Short-Term Borrowings (13,540,000) (14,126,000)
Sale of Common Stock 404,821 10,988
Dividends Paid (632,012) (572,932)
Net Cash Provided By (Used In) Financing Activities (337,531) 46,068
Net Increase (Decrease) in Cash and Cash Equivalents (512,713) 239,396
Cash and Cash Equivalents at Beginning of Year 512,213 685,225
Cash and Cash Equivalents at End of Period ($500) $924,621
The accompanying notes are an integral part of these condensed financial statements.
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