THE PURPOSE OF THIS AMENDED 10-Q IS TO INCLUDE FINANCIAL INFORMATION
SCHEDULES NOT PREVIOUSLY INCLUDED
FORM 10-Q/A
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, 1996
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.
Yes X 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, 1996
(Common stock, $.15 par value) 2,308,579
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, 1996 and June 30, 1995 1
Condensed consolidated statements of income -
three months and nine months ended March 31, 1996
and 1995 2
Condensed consolidated statements of cash
flows - nine months ended March 31, 1996 and 1995 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, 1996
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,
1996 are not necessarily indicative of the results that may be expected
for the year ended June 30, 1996 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, 1995.
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
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standard (SFAS) No. 121, "Accounting for the
Impairment of Long--Lived Assets and for Long-Lived Assets to be
Disposed Of, " effective for financial statements for fiscal years
beginning after December 15, 1995. SFAS No. 121 requires that long-lived
assets and certain identifiable intangibles to be held and used by an
entity be reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable and long-lived assets and certain identifiable intangibles
to be disposed of be reported at the lower of carrying amount or fair
value less cost to sell. SFAS No. 121 also established the procedures
for review of recoverability, and measurement of impairment if
necessary, of long-lived assets and certain identifiable intangibles to
be held and used by an entity. The financial effect of adopting the new
standard are not expected to be material to the Company's financial
position or operations.
Certain reclassifications have been made to the quarterly and nine month
period for fiscal 1995 consolidated financial statements to conform to
the year-end fiscal 1995 presentation.
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, 1996,
components of the Company's deferred tax assets and deferred tax
liabilities are as follows:
Deferred tax assets:
Allowance for doubtful accounts........................ $46,278
Unamortized Investment Tax Credit...................... 175,983
Contributions in Aid of Construction................... 113,655
Other nondeductible accruals........................... 176,727
Total deferred tax assets.............................. 512,643
Deferred tax liabilities:
Customer Refunds Payable................................ 141,633
Property, Plant and Equipment......................... 2,722,773
Unamortized Debt Issue Costs............................ 205,183
Unamortized Environmental Study Costs.................... 58,354
Covenant Not to Compete.................................. 90,101
Total deferred tax liabilities........................ 3,218,044
Net deferred tax liability............................. $2,705,401
Income tax expense consists of the following:
Current income taxes (benefits):
Federal............................................... $478,686
State.................................................. 43,980
Total current income taxes (benefits)..................... 522,666
Deferred income taxes (benefits):
Excess tax depreciation................................ 176,341
Excess tax (book) amortization....................... ( 13,826)
Recoverable cost of gas purchases...................... 57,108
Environmental Cost Recovery .......................... (42,976)
Other................................................. (26,735)
Total deferred income taxes............................. 149,912
Investment tax credit, net............................... (15,797)
Total income taxes...................................... $656,781
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 (benefit) at statutory rates - 34%.......... $633,481
State income taxes (benefit), net of federal income taxes.. 49,143
Amortization of deferred investment tax credits.......... (15,797)
Other.................................................... (10,046)
Total income taxes .................................. $656,781
Note 5 - Commitments and Contingencies
Commitments
The Company has entered into long-term, take or pay natural gas supply
contracts which expire beginning in 1996 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 $1.28 to $1.90. Based on current prices, the
minimum take or pay obligation at March 31, 1996 for each of the next
five years and in total is as follows:
Fiscal Year
1996...... 2,630,414
1997...... 1,659,614
1998...... 1,460,894
1999...... 1,460,894
2000...... 1,460,894
Thereafter... 5,188,606
Total... $13,861,316
Natural gas purchases under these contracts for the years ended June 30,
1995, 1994 and 1993 approximated $6,203,000, $6,901,000, and $7,400,000,
respectively.
Potential Acquisition - Nullified
The Company had signed a definitive purchase agreement for the
acquisition of a propane vapor system, contingent on the Company
obtaining regulatory approval for an exclusive natural gas franchise, in
Jackson, Wyoming, where this system is located. The purchase price was
approximately $920,000. In December, 1995, the Wyoming Public Service
Commission granted a natural gas franchise to a competing utility, which
now serves electricity in the Jackson Hole area, thus nullifying the
purchase agreement.
Environmental Contingency
The Company owns property on which it operated a manufactured gas plant
from 1909 to 1928. The site is currently used as a service center and to
store certain equipment and materials and supplies. The coal
gasification process utilized in the plant resulted in the production of
certain by-products which have been classified by the federal government
and the state of Montana as hazardous to their environment. After
management became aware of the potential of contamination on this site,
it initiated an assessment of the property through the assistance of a
qualified consulting firm. That assessment revealed the presence of
certain hazardous material in quantities exceeding tolerances
established for such material by regulatory authorities. After making
required notifications of that condition to federal and state regulatory
authorities, a report summarizing the assessment was filed with the
State of Montana Department of Health and Environmental Science (MDHES).
Subsequent to that submittal, the Company and its consultant have worked
with the MDHES to arrive at a remediation option acceptable to the
Company and MDHES. The costs incurred by the Company to date approximate
$307,600 and have been capitalized as other deferred charges. Until
further work is done regarding remediation alternative, no further
estimate of the costs of remediation can be made.
The Company received formal approval from the Montana Public Service
Commission to recover certain costs associated with the cleanup of this
site. The Company has begun recovery of costs of $182,736 incurred at
June 30, 1995 through a surcharge in billing rates effective July 1,
1995. Management intends to request, that future costs be recovered in
that same manner. Assuming the commission continues to approve such cost
recovery, the Company does not anticipate a material affect on the
Company's financial position as a result of the remediation over a
similar time period.
Change in Name of Wholly-Owned Subsidiary
On February 27, 1996, the Board of Directors approved a change in the
name of Vesta, Inc., a wholly-owned subsidiary of Energy West, Inc. to
Energy West Resources, Inc. Energy West Resources, Inc. will continue to
engage in oil and gas development and gas marketing in Montana and
Wyoming.
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
1996 1995 1996 1995
Operating Revenues:
Regulated $9,752,152 $8,771,617 $19,469,916 $19,787,687
Non-regulated 1,220,371 1,368,620 3,033,039 3,196,895
Gas Trading 1,157,509 1,126,235 3,184,483 2,528,987
$12,130,032 $11,266,472 $25,687,438 $25,513,569
Operating Expenses:
Gas Purchased:
Regulated $6,007,311 $5,515,471 $11,324,248 $12,338,645
Non-regulated 512,256 832,460 1,439,990 1,686,962
Cost of gas trading 982,986 823,321 2,761,284 2,057,901
$7,502,553 $7,171,252 $15,525,522 $16,083,508
Distribution, general and administrative:
Regulated $1,560,305 $1,263,171 $4,402,144 $3,820,337
Non-regulated 343,871 343,038 979,467 925,271
$1,904,176 $1,606,209 $5,381,611 $4,745,608
Maintenance:
Regulated $130,587 $95,413 $270,706 $230,047
Non-regulated 17,905 284 50,636 942
$148,492 $95,697 $321,342 $230,989
Depreciation and amortization:
Regulated $325,483 $318,934 $1,004,456 $911,566
Non-regulated 98,540 92,075 287,732 267,276
$424,023 $411,009 $1,292,188 $1,178,842
Taxes other than income:
Regulated $159,493 $129,028 $400,352 $367,701
Non-regulated 36,051 24,599 105,690 75,839
$195,544 $153,627 $506,042 $443,540
Income taxes:
Regulated $432,546 $434,000 $446,921 $470,395
Non-regulated 136,733 130,737 209,860 265,465
$569,279 $564,737 $656,781 $735,860
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, which includes Great Falls Gas Company, Cascade Gas Company
and West Yellowstone Gas Company in Montana, its Cody division in Cody,
Wyoming and the Broken Bow division in Payson, Arizona. The Company
installed an underground natural gas system in the town of West
Yellowstone, Montana, which became operational in the Spring of 1995.
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; Energy West Resources, Inc. (formerly
Vesta, Inc.), 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. This past fiscal year and during
this first nine months of Fiscal 1996, the Company used short-term
borrowing for construction of the natural gas system in West
Yellowstone, Montana and expansion of its natural gas systems in Great
Falls, Montana, Cody, Wyoming and Payson, Arizona. 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, 1996, the Company had an $10,000,000 bank line of
credit, of which $5,490,000 had been borrowed. The Company increased its
bank line of credit to $10,000,000 on October 31, 1995.
The Company was provided net cash by operating activities for the nine
months ended March 31, 1996 in the amount of approximately $775,000, as
compared to $2,649,000 for the nine months ended March 31, 1995. This
decrease in cash provided by operating activities is primarily due to
lower net income of approximately $260,000, higher working capital
requirements of approximately $2,205,000 primarily due to timing
differences related to lower rates to customers for gas purchases, while
gas purchases costs were equal or higher than last year, timing related
prepaid gas contracts at a Rocky Mountain Fuel division, pension plan
deposits now made annually instead of quarterly last year and higher
payments to the Company's incentive plan this fiscal year, partially
offset by increased depreciation and amortization of approximately
$296,000 and an increase in net deferred income tax liabilities of
approximately $$300,000. Cash used in investing activities was
approximately $3,445,000 for the nine months ended March 31, 1996, as
compared to approximately $2,824,000 for the nine months ended March 31,
1995, primarily due higher construction expenditures for capital
projects. Cash provided by financing activities was approximately
$2,206,000 for the nine months ended March 31, 1996, as compared to cash
used of approximately $338,000 for the nine months ended March 31, 1995.
The increase in cash provided by financing activities resulted primarily
from an increase in short-term borrowings of approximately $1,560,000
and a reduction in the repayment of short-term debt of approximately
$1,160,000 and an increase in the proceeds from sale of common stock of
approximately $96,000 offset by an increase in the dividend paid out on
common stock of approximately $126,000 and an increase in the repayment
of long-term debt of approximately $135,000.
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, were approximately $4.5 million in
fiscal 1995 and approximately $2.5 to $2.3 million for the previous two
fiscal years. The Company expects to incur approximately $5.5 million
for capital expenditures in fiscal 1996. As of March 31, 1996,
approximately $3.3 million of that amount had been expended.
Results of Consolidated Operations
Comparison of Third Quarter of Fiscal 1996 Ended March 31, 1996 and
Fiscal 1995 Ended March 31, 1995
The Company's net income for the third quarter ended March 31, 1996 was
$1,013,729 compared to $1,045,912 for the quarter ended March 31, 1995.
The decrease in the 1996 net income was primarily due to an increase in
short-term interest costs, due to capital additions and an increase in
distribution, general, administrative and maintenance expenses, due to
inflation and less salaries being capitalized to major projects than was
the case one year ago and a net loss in West Yellowstone, Montana, which
was anticipated with this start-up operation in Fiscal 1996..
Utility Operations -
Utility operating revenues in the third quarter of fiscal 1996 were
$9,752,152 compared to $8,771,617 for the third quarter of fiscal 1995.
Gross Margin, which is defined as operating revenues less gas purchased,
was $3,744,841 for the third quarter of fiscal 1996 compared to gross
margin of $3,256,146 for the third quarter of fiscal 1995. Gross margins
increased 15% because of higher margins from natural gas sales in the
Great Falls and Cody divisions and propane sales in the Broken Bow
division due to customer growth as well as 22% colder weather than one
year ago in Great Falls, 20% colder in the Cody division and 7% colder
in the Broken Bow division. In addition, margins of West Yellowstone are
reflected in 1996, in this start-up operation this fiscal year. Margins
were tempered by the effects of a rate reduction in the Great Falls
division of approximately $260,000 annually, ordered by the Montana
Public Service Commission, which went into effect on July 1, 1995.
Overall revenues in the third quarter of fiscal 1996 was higher than
revenues in the third quarter of fiscal 1995, due to the colder
temperatures experienced in Montana, Wyoming and Arizona and the
addition of West Yellowstone, tempered by the rate decrease in the Great
Falls division, .
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and
federal and state income taxes, were approximately $1,700,000 for the
third quarter of fiscal 1996 as compared to $1,400,000 for the same
period in fiscal 1995. The 21% increase in the period is generally due
to normal inflationary trends, less salaries being capitalized to major
projects than was the case one year ago and the addition of West
Yellowstone's utility operating expenses this fiscal year.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $323,000 for the third quarter of fiscal 1996, as compared
to $218,000 in the comparable period in fiscal 1995. Long term debt
interest decreased , however, short term interest increased primarily
due to facility expansion, which has been temporarily financed with
short term debt.
Income Taxes -
The state and federal income taxes of the Company's utility divisions
were approximately $432,000 for the third quarter of fiscal 1996, as
compared to approximately $434,000 for the same period in fiscal 1995.
The decrease in income taxes was due to slightly lower pre-tax income of
the utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the three months ended March 31, 1996, RMF generated net income of
approximately $136,000 compared to net income of approximately $63,000
for the three months ended March 31, 1995. Approximately $46,000 of
RMF's increase in net income for the third quarter of fiscal 1996 was
attributable to the Wyo L-P Gas division in Wyoming, approximately
$13,000 to the Petrogas division in Arizona, with the balance of
approximately $14,000 attributable to Missouri River Propane and Big
Horn Answering Service. RMF's gross margins increased for the three
months ended March 31, 1996 compared to the same period last year,
because of increased bulk propane sales, due primarily to colder weather
and customer growth in the areas served by Wyo L-P gas in Wyoming,
Missouri River Propane in Montana and Petrogas in Arizona. Both Missouri
River Propane and Petrogas, sell propane to Cascade Gas Company and the
Broken Bow Division respectively, which also experienced increased sales
and customer growth in the quarter. The increase in margins was
partially offset by higher operating expenses, due to normal
inflationary trends experienced.
Energy West Resources, Inc. - (formerly Vesta, Inc.) -
For the three months ended March 31, 1996, Energy West Resources, Inc.'s
net income was approximately $95,000 compared to $182,000 for the three
months ended March 31, 1995, primarily due to lower margins experienced
in Energy West Resources, Inc's gas marketing operations, which was
anticipated.
Montana Sun, Inc. -
For the three months ended March 31, 1996, Montana Sun, Inc.'s net
income was approximately $10,000 compared to $13,000 for the three
months ended March 31, 1995, primarily due to lower other income.
Results of Consolidated Operations
Comparison of Nine Months Ended March 31, 1996 and Fiscal 1995 Ended
March 31, 1995
The Company's net income for the first nine months ended March 31, 1996
was $1,198,438 compared to $1,461,492 for the nine months ended March
31, 1995.
The decrease in the 1996 net income was primarily due to an increase in
short-term interest costs, due to capital additions and an increase in
distribution, general, administrative and maintenance expenses, due to
inflation ; less salaries being capitalized to major projects than was
the case one year ago and a reduction in margins in Energy West
Resources, Energy West's energy marketing subsidiary. Although the
weather was colder than last year in the Montana and Wyoming areas where
the Company serves, a rate reduction ordered by the Montana Public
Service Commission in the Great Falls division of approximately
$260,000, which went into effect July 1, 1995, tempered the increased
natural gas and propane sales. The weather in the Payson area served by
the Company in Arizona, was 11% warmer than last year and reduced
expected sales, even though the area experienced a 16% growth in
customers. Losses in West Yellowstone, which were anticipated with this
start-up operation, further reduced net income.
Utility Operations -
Utility operating revenues in the first nine months of fiscal 1996 were
approximately $19,470,000 compared to approximately $19,788,000 for the
first nine months of fiscal 1995. Gross Margin, which is defined as
operating revenues less gas purchased, was approximately $8,146,000 for
the first nine months of fiscal 1996 compared to gross margin of
approximately $7,449,000 for the first nine months of fiscal 1995. Gross
margins increased 10% because of higher margins from natural gas sales
in the Great Falls and Cody divisions and propane sales in the Broken
Bow division due to customer growth as well as 14% colder weather than
one year ago in Great Falls and 10% colder in the Cody divisions.
Margins were tempered by the effects of a rate reduction in the Great
Falls division of approximately $260,000 annually, ordered by the
Montana Public Service Commission, which went into effect on July 1,
1995. In addition, margins of West Yellowstone are reflected in 1996, in
this start-up operation this fiscal year.
Overall revenues in the first nine months of fiscal 1996 was lower than
revenues in the first nine months of fiscal 1995, due primarily to a
rate decrease in the Great Falls division in Montana, effective July 1,
1995. This decrease in rates was
tempered by colder weather this year than one year ago in all utility
divisions and recognition of West Yellowstone revenues this year in this
start-up operation.
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and
federal and state income taxes, were approximately $4,673,000, for the
first nine months of fiscal 1996 as compared to $4,050,000 for the same
period in fiscal 1995. The 15% increase in the period is generally due
to normal inflationary trends, less payroll capitalized since the
completion of the West Yellowstone system, a higher payout for the
regulated operation's incentive plans for employees as well as the
addition of West Yellowstone's utility operating expenses this fiscal
year.
Other Income -
Other Income in the first nine months of fiscal 1996 was approximately
$88,000 as compared to $111,000 for the same period in fiscal 1995. The
21% decrease was primarily due to reclassification of interest earned on
appliance sales, to a current year basis.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $862,000 for the first nine months of fiscal 1996, as
compared to $715,000 in the comparable period in fiscal 1995. Long term
debt interest decreased slightly, however, short term interest increased
primarily due to facility expansion, which has been temporarily financed
with short term debt.
Income Taxes -
The state and federal income taxes of the Company's utility divisions
were approximately $447,000 for the first nine months of fiscal 1996, as
compared to approximately $507,000 for the same period in fiscal 1995.
The decrease in income taxes was due to lower pre-tax income of the
utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the nine months ended March 31, 1996, RMF generated net income of
approximately $111,000 compared to net income of approximately $136,000
for the first nine months ended March 31, 1995. Approximately $12,000 of
RMF's reduction in net income for the first nine months of fiscal 1996
was attributable to the Wyo LP Gas division in Wyoming, while
approximately $20,000 was attributable to the Petrogas division in
Arizona.. Missouri River Propane and Big Horn Answering Service account
for the balance, which had a loss for the nine month period. RMF's gross
margins increased approximately 7% for the nine months ended March 31,
1996 compared to the same period last year, because of increased bulk
propane sales, due primarily to colder weather and customer growth in
the areas served by Wyo L-P gas in Wyoming, Missouri River Propane in
Montana and Petrogas in Arizona. Both Missouri River Propane and
Petrogas, sell propane to Cascade Gas Company and the Broken Bow
Division respectively, which also experienced increased sales and
customer growth in this period. The increase in margins was partially
offset by higher operating expenses, due to normal inflationary trends
experienced.
Energy West Resources, Inc. - (formerly Vesta, Inc.) -
For the nine months ended March 31, 1996 , Energy West Resources, Inc.'s
net income was approximately $206,000 compared to $273,000 for the nine
months ended March 31, 1995, primarily due to lower margins experienced
by Energy West Resources, Inc.'s gas marketing operations.
Montana Sun, Inc. -
For the nine months ended March 31, 1996, Montana Sun, Inc.'s net income
was approximately $41,000 compared to $42,000 for the nine months ended
March 31, 1995.
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, 1996.
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/John C. Allen
_______________________________
(John C. Allen, Corporate Counsel, Vice-President of Human Resources,
and Secretary)
Dated May 14, 1996
/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.
_______________________________
(John C. Allen, Corporate Counsel, Vice-President of Human Resources,
and Secretary)
Dated May 14, 1996
__________________________________
(William J. Quast, Vice-President, Treasurer,
Controller and Assistant Secretary
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<INCOME-TAX-EXPENSE> 656,781
<OTHER-OPERATING-EXPENSES> 23,026,705
<TOTAL-OPERATING-EXPENSES> 23,683,486
<OPERATING-INCOME-LOSS> 2,003,952
<OTHER-INCOME-NET> 142,425
<INCOME-BEFORE-INTEREST-EXPEN> 2,146,377
<TOTAL-INTEREST-EXPENSE> 947,939
<NET-INCOME> 1,198,438
0
<EARNINGS-AVAILABLE-FOR-COMM> 8,590,210
<COMMON-STOCK-DIVIDENDS> 685,135
<TOTAL-INTEREST-ON-BONDS> 515,228
<CASH-FLOW-OPERATIONS> 775,113
<EPS-PRIMARY> 0.52
<EPS-DILUTED> 0
</TABLE>
