Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 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 1-8060
----------
AQUARION COMPANY
--------------------
(Exact name of registrant as specified in its charter)
Delaware 06-0852232
------------------ --------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
835 Main Street, Bridgeport, Connecticut 06601
- ---------------------------------------- -------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203)335-2333
- -----------------------------------------------------------------
(Former name, former address and former fiscal year, if changes since
last report)
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 August 7, 1996:
Common Stock
No Par Value (Stated Value: $1) 6,956,514
------------------------------- -------------------
Class Number of Shares
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
AQUARION COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
<TABLE>
<CAPTION>
Quarter Ended June 30, Six Months Ended June 30,
---------------------- -------------------------
1996 1995 1996 1995
---- ---- ----- ------
<S> <C> <C> <C> <C>
(In thousands, except share data)
Operating revenues $ 28,892 $ 28,414 $ 55,035 $ 54,016
-------- -------- -------- -------
Costs and expenses:
Operating 10,590 10,465 19,911 19,811
General and
administrative 4,338 4,493 8,925 8,446
Depreciation 3,163 2,905 6,353 5,814
Interest expense 2,493 2,243 4,779 4,293
Taxes other than income
taxes 3,355 2,993 6,736 6,213
------- ------ ------ ------
Total costs and expenses 23,939 23,099 46,704 44,577
------- ------- ------- -------
4,953 5,315 8,331 9,439
Allowance for funds used
during construction 286 176 563 288
------- ------- ------- -------
Income before income taxes 5,239 5,491 8,894 9,727
Income taxes 2,074 2,384 3,655 4,229
------- ------- ------- -------
Net income $ 3,165 $ 3,107 $ 5,239 $ 5,498
========= ========= ========= =========
Per share $ 0.46 $ 0.46 $ 0.76 $ 0.81
========= ========= ========= =========
Weighted average common
shares outstanding 6,906,680 6,778,436 6,889,800 6,761,810
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-2-
<PAGE>
<PAGE>
AQUARION COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
UNAUDITED
<TABLE>
<CAPTION>
Quarter Ended June 30, Six Months Ended June 30,
---------------------- -------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
(In thousands, except share data)
RETAINED EARNINGS
Beginning of period $17,866 $16,331 $18,583 $16,628
Net income 3,165 3,107 5,239 5,498
------ ------ ------ ------
21,031 19,438 23,822 22,126
Deduct: Cash dividends
declared on common
stock, $.405 per
share per quarter
in 1996 and 1995 2,805 2,702 5,596 5,390
------ ------ ------ ------
End of period $18,226 $16,736 $18,226 $16,736
====== ====== ====== ======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-3-
<PAGE>
<PAGE>
AQUARION COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1996 1995
--------- -----------
<S> <C> <C>
(Unaudited)
(In thousands)
Property, plant and equipment $457,463 $432,480
Less: accumulated depreciation 143,429 136,726
------- -------
Net property, plant and
equipment 314,034 295,754
------- -------
Current assets:
Cash and cash equivalents 502 635
------- -------
Accounts receivable:
Customers 17,033 15,859
Miscellaneous 1,610 1,263
------- -------
18,643 17,122
Less: allowance for doubtful
accounts 2,882 2,916
------- -------
15,761 14,206
Accrued revenues 11,228 9,108
Inventories 4,194 4,105
Prepaid expenses 8,080 7,737
------- -------
Total current assets 39,765 35,791
------- -------
Goodwill 10,450 10,270
Recoverable income taxes 44,922 44,922
Other assets 28,336 27,243
------- -------
$437,507 $413,980
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-4-
<PAGE>
<PAGE>
AQUARION COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
LIABILITIES AND June 30, December 31,
SHAREHOLDERS' EQUITY 1996 1995
-------- -----------
<S> <C> <C>
(Unaudited)
(In thousands, except
share data)
Shareholders' equity:
Preferred stock, no par value,
authorized 2,500,000 shares not to
exceed aggregate value of
$25,000,000, issuable in series- $ $
none issued - -
Common stock, stated value: $1
Authorized-16,000,000 shares
Issued- 7,007,609 shares in 1996
and 6,936,574 shares in 1995 7,008 6,937
Capital in excess of stated value 99,788 98,213
Retained earnings 18,226 18,583
------- -------
125,022 123,733
Less: cost of treasury stock, 80,428
shares in 1996 and 81,291 shares
in 1995 2,208 2,231
------- -------
Total shareholders' equity 122,814 121,502
------- ------
Redeemable preferred stock of 285 285
------- -------
Long-term debt and other obligations 141,388 131,991
------- -------
Current liabilities:
Short-term borrowings, unsecured 23,900 11,600
Current maturities of long-term debt 46 62
Accounts payable and accrued 13,935 15,221
Dividends payable 2,806 2,776
Accrued interest 2,164 2,023
Taxes other than income taxes 1,562 1,713
Income taxes (67) 1,805
------- -------
Total current liabilities 44,346 35,200
------- -------
Advances for construction 27,884 26,264
Contributions in aid of construction 24,033 23,959
Deferred land sale gains 1,087 620
Accrued postretirement benefit cost 3,971 3,065
Recoverable income taxes 5,945 5,944
Deferred taxes 65,754 65,150
------- -------
$437,507 $413,980
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-5-
<PAGE>
<PAGE>
AQUARION COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
1996 1995
---- ----
<S> <C> <C>
(In thousands)
Cash flows from operating activities:
Net income $ 5,239 $ 5,498
Adjustments reconciling net income to net
cash provided by operating activities:
Depreciation and amortization 6,866 6,317
Allowance for funds used during
construction (563) (288)
Provision for losses on accounts
receivable (44) 442
Deferred and prepaid income taxes, net (297) 889
Proceeds from sale of surplus land,
net of gains 146 760
Change in assets and liabilities (Note 3) (6,184) (8,052)
------ ------
Net cash provided by operating
activities 5,163 5,566
------ ------
Cash flows from investing activities:
Capital additions, excluding an
allowance for funds used during
construction (19,307) (20,452)
Acquisition of business, less cash
acquired (2,525) -
Advances and contributions in aid of
construction 1,527 1,052
Refunds on advances for construction (288) (169)
Other investing activities (762) (436)
Net cash used in investing -------- -------
activities (21,355) (20,005)
-------- -------
Cash flows from financing activities:
Net proceeds from short-term
borrowings 10,600 7,500
Proceeds from the issuance of common
stock, net 1,646 1,399
Principal payments on long-term debt (31) (36)
Proceeds from the issuance of long-
term debt 9,411 10,110
Common dividends paid (5,567) (5,363)
Bond finance charges - (305)
------- -------
Net cash provided by financing
activities 16,059 13,305
------- -------
Net decrease in cash and cash equivalents (133) (1,134)
Cash and cash equivalents, beginning of
period 635 1,335
------- -------
Cash and cash equivalents, end of period $ 502 $ 201
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-6-
<PAGE>
<PAGE>
AQUARION COMPANY
----------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
UNAUDITED
---------
Aquarion Company (Aquarion) is a holding company whose
subsidiaries are engaged both in the regulated utility
business of public water supply and in various nonutility
businesses. Aquarion's utility subsidiaries, Bridgeport
Hydraulic Company (BHC), BHC's subsidiaries, Stamford Water
Company (SWC), New Canaan Water Company (NCWC) and Ridgefield
Water Supply Company (RWSC) and Sea Cliff Water Company
(SCWC) (collectively, the Utilities) collect, treat and
distribute water for residential, commercial and industrial
customers, to other utilities for resale and for private and
municipal fire protection. The Utilities provide water to
customers in 30 communities with a population of approximately
500,000 people in Connecticut and Long Island, including
communities served by other utilities to which BHC makes water
available on a wholesale basis for back-up supply or peak
demand purposes through BHC's Southwest Regional Pipeline.
BHC is the largest investor-owned water company in Connecticut
and, with its subsidiaries and SCWC, is among the ten largest
investor-owned water companies in the nation. The Utilities
are regulated by several Connecticut and New York agencies,
including the Connecticut Department of Public Utility Control
(DPUC) and the New York Public Service Commission (PSC).
Aquarion and its subsidiaries (collectively, the Company) are
also engaged in various nonutility activities. The Company
conducts an environmental testing laboratory business through
its Industrial and Environmental Analysts, Inc. (IEA) group of
laboratories which analyze contaminants in hazardous waste,
soil, air and water. Additionally, the Company is engaged in
various utility management service businesses through
Hydrocorp, Inc. (Hydrocorp) and Aquarion Management Services,
Inc. (AMS), owns a timber processing business through Timco,
Inc. (Timco) and owns a real estate subsidiary, Main Street
South Corporation (MSSC).
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The accompanying consolidated financial statements of the
Company have been prepared in accordance with generally
accepted accounting principles for interim financial
information, with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X and, as applied in the case of
rate-regulated public utilities, comply with the Uniform
System of Accounts and rate making practices prescribed by the
DPUC. 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. The results of operations are not necessarily
indicative of the results of operations for the calendar year.
Water consumption is less in the first quarter of the year
than during the warmer months. The laboratory testing
business is seasonal as well with traditionally lower first
quarter revenues. Other factors affecting the comparability
of various accounting periods include the timing of rate
increases granted the Utilities and the timing and magnitude
of property sales. For further information, refer to the
consolidated financial statements and accompanying footnotes
included in the Company's annual report on Form 10-K for the
year ended December 31, 1995.
-7-
<PAGE>
<PAGE>
NOTE 2 - INVENTORIES
- --------------------
Inventories were comprised of the following (in thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
<S> --------- -----------
<C> <C>
(Unaudited)
Lumber and logs $ 2,150 $ 2,180
Materials and supplies 2,044 1,925
------- -------
$ 4,194 $ 4,105
======= =======
</TABLE>
NOTE 3 - SUPPLEMENTAL DISCLOSURE FOR CONSOLIDATED STATEMENTS
- ------------------------------------------------------------
OF CASH FLOWS
- -------------
Changes in assets and liabilities for the six month period
ended June 30, are set forth below (in thousands):
<TABLE>
<CAPTION>
1996 1995
-------- ---------
<S> <C> <C>
(Unaudited)
Increase in accounts receivable $(3,147) $ (856)
Increase in inventory (53) (1,027)
Increase in prepayments (305) (369)
Decrease in accounts payable and (533) (550)
accrued liabilities
Decrease in interest and taxes (1,909) (4,410)
payable
Net changes in other noncurrent (237) (840)
balance sheet items ------- -------
$(6,184) $(8,052)
======== =======
Supplemental cash flow information:
Cash paid for:
Interest $4,463 $4,109
Income taxes $5,705 $7,775
</TABLE>
NOTE 4 - SALE OF SURPLUS LAND
- ------------------------------
For the first six months of 1996, the Company sold
approximately four acres of surplus land in two transactions
for a total of $315,000. Total gains approximated $169,000,
or $.02 per share.
-8-
<PAGE>
<PAGE>
NOTE 5 - ACQUISITIONS
- ---------------------
On May 30, 1996, the Company acquired Sea Cliff Water
Company, a subsidiary of Emcor Group, Inc., for approximately
$2,600,000 in cash. SCWC, which has approximately 4,300
customers, serves a portion of Nassau County in Long Island,
New York, and has approximate annual revenues of $2,000,000.
On October 12, 1995, the Company completed the acquisition
of NCWC and RWSC for 123,053 shares of Aquarion common stock
with a market value of $2,828,692 and the repayment of certain
indebtedness of The New Canaan Company (NCC) in the amount of
$100,000. Immediately after the acquisition closed, the
parties completed a property exchange whereby the Monroe
Environmental Leasing Partnership (MELP) transferred to NCWC a
commercial building and the property on which it is situated,
NCWC transferred a reservoir and related property to the
Second Taxing District of Norwalk (STD) and STD in turn paid
$2,200,000 to MELP, which also received $214,157 from
Aquarion. The property exchange resulted in net income to
Aquarion of approximately $1,100,000, or 16 cents per share in
1995. The acquisition was accounted for as a pooling of
interests, and the Company did not restate the previous year's
financial statements due to the limited impact on consolidated
operating results in 1995.
NOTE 6 - RATE MATTERS
- ---------------------
On July 19, 1996, BHC filed an application with the DPUC
for a Construction-Work-in-Progress (CWIP) rate surcharge of
6.93 percent of current revenues to recover 90 percent of the
carrying costs, through June 30, 1996, of capital used in the
construction of a filter plant at its Hemlocks Reservoir in
Fairfield, Connecticut. This plant, mandated by the Federal
Safe Drinking Water Act of 1974 (SDWA), as amended, is
estimated to cost approximately $50,000,000. This application
updated the CWIP rate surcharge of 6.37 percent granted in
June 1996, which was subsequently adjusted to 5.93% on July
31, 1996. BHC will continue to file quarterly applications
for increases in the CWIP rate surcharge as construction
continues through 1997, at which time the filtration
facilities are expected to be operational and subject to
general ratemaking regulations.
On July 31, 1996, BHC received approval from the DPUC for
a 6.5 percent water service rate increase designed to provide
a $4,000,000 increase in annual water service revenues.
As part of the decision, BHC will be allowed to re-open the
application in 1997 to include the full cost of construction
of the Hemlocks filtration plant, as well as all corresponding
operating expenses, property taxes and depreciation expense.
If approved, water service rates at that time will increase by
approximately an additional 11 percent, plus a cumulative CWIP
rate surcharge, which is estimated to be 10 percent at that
time. As a result of this decision, the current quarterly
CWIP water rate surcharge was reduced from 6.37 percent to
5.93 percent.
On April 3, 1996, SWC, NCWC and RWSC collectively,
received a final decision from the DPUC, which became
effective on April 25, 1996, allowing for a 5.1 percent
increase, designed to provide a $782,000 increase in annual
water service revenues. As part of the decision, the DPUC
approved SWC's proposal to equalize the meter rates and
service charges of all three companies.
-9-
<PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations
- -----------------------------------
Management's Discussion and Analysis of the Results of
Operations and Financial Condition contained in Aquarion's
Annual Report on Form 10-K for the year ended December 31,
1995 (1995 Form 10-K) should be read in conjunction with the
comments below.
Capital Resources and Liquidity
- -------------------------------
Capital Expenditures
--------------------
The Company invested $19,307,000 in property, plant and
equipment in the first six months of 1996, compared with
$20,452,000 for the same 1995 period. The Utilities accounted
for approximately $18,578,000 of plant additions during the
current six month period, including $11,204,000 expended on
SDWA mandated filtration facilities. Management estimates
that capital expenditures will total $42,000,000 in 1996, of
which approximately $40,000,000 will be for water utility
construction programs. Nonutility capital expenditures will
approximate $2,000,000 in 1996, primarily for laboratory
equipment at IEA.
Financing Activities
--------------------
Due to the magnitude of the Company's construction
programs and the capital-intensive nature of the public water
supply business, financing has been provided from both
internal and external sources. Historically, the Company's
ability to finance its capital expenditures has depended
substantially on rate relief. Pursuant to DPUC regulations,
BHC is receiving additional revenues through the
implementation of a CWIP rate surcharge in conjunction with
the construction of its Hemlocks Reservoir filtration plant.
The current surcharge of 5.93 percent is designed to increase
the Company's revenues by $3,854,000 on an annual basis. This
surcharge, however, is expected to increase quarterly as BHC
continues to file applications during the construction
period.
The percentage of capital expenditures financed by net
cash from operating activities was 26 percent and 27 percent
for the six months ended June 30, 1996 and 1995, respectively.
(See "Consolidated Financial Statements-Consolidated
Statements of Cash Flows.") The remainder has been provided
from external financing sources. The Company obtained funds
of $1,527,000 from advances and contributions in aid of
construction from developers and customers for the six months
ended June 30, 1996.
The Company obtained funds of $1,665,000 from issuances of
Common Stock under its Dividend Reinvestment and Common Stock
purchase plan (the "Plan") for the six months ended June 30,
1996.
Funds from external sources historically have been
borrowed on a short-term basis and periodically refinanced
through long-term debt or equity issues. Annually in May, the
unsecured revolving credit agreements are subject to renewal
with the five banks. In 1996 the agreement between the
Company and one of the participating banks was not renewed and
Fleet Bank acquired Natwest Bank, both of which are
participating banks in the agreement. These agreements now
provide $40,000,000 ($20,000,000 with one bank, $10,000,000
with the two remaining banks)
-10-
<PAGE>
<PAGE>
of short-term credit availability on a committed basis. At June 30, 1996,
$23,900,000 of short-term borrowings under the agreements was
outstanding.
Future Financing Requirements
-----------------------------
The Company's ability to finance future utility
construction programs depends substantially on rate relief.
Rate relief has an impact on cash flow from operating
activities and consequently affects the Company's ability to
obtain external financing. Additionally, rate relief will
have an impact on the Company's ability to generate sufficient
cash flows to provide a reasonable return in the form of
dividends to Aquarion's stockholders. In light of the
Company's need for additional funds, the Company will need
additional debt and equity capital to finance future utility
construction. The type, amount and timing of new financings
will be based on the Company's general financial policies
regarding capitalization, as well as on market conditions and
other economic factors.
Results of Operations for the six months and
- --------------------------------------------
three months ended June 30, 1996 and 1995
- -----------------------------------------
Net income for the six months ended June 30, 1996 was
$5,239,000 compared with $5,498,000 for the same 1995 period.
Net income for the three months ended June 30, 1996 was
$3,165,000 versus $3,107,000 for the second quarter of 1995.
Operating results during the first six months of 1996 are
lower due to the impact of a one-time credit in the first
quarter of 1995 of approximately $300,000 from an insurance
rebate combined with lower gains from property sales in 1996.
Operating revenues increased $1,019,000 and $478,000 for
the six months and three months ended June 30, 1996 from the
comparable 1995 periods. Revenues from the Utilities
increased $3,062,000 and $1,548,000, respectively, due to the
acquisition of NCWC and RWSC and additional CWIP rate
surcharge revenues in 1996. Revenues from the Laboratories
decreased $1,147,000 and $568,000, respectively, reflecting
the impact of lower sampling receipts in 1996 combined with
continued industry pricing pressures. Property sales
decreased $795,000 and $545,000, respectively, due to lower
volume in the land sales program.
Operating expenses increased $100,000 and $125,000 for the
six months and three months ended June 30, 1996, from the
comparable 1995 periods. Operating expenses at the Utilities
increased $892,000 and $483,000, respectively, which was
primarily the result of higher costs associated with treatment
and distribution expenses. The decrease in operating expenses
of $482,000 and $395,000, respectively, for the Real Estate
segment is directly the result of the lower sales volume in
1996. The Laboratories experienced a decrease in operating
expenses of $370,000 and $104,000, respectively, which was
largely attributable to lower operating costs associated with
the decreased sampling receipts.
General and administrative expenses for the first
six months of 1996 increased $479,000 from the comparable 1995
period. Expenses from the Utilities increased $659,000
primarily due to a one-time credit in 1995 of approximately
$300,000 from an insurance rebate and increased costs for
workmen's compensation, health insurance, employee benefits
and other administrative expenses partially offset by improved
accounts receivable collections.
-11-
<PAGE>
<PAGE>
General and administrative expenses decreased by $155,000
for the second quarter of 1996 versus the comparable 1995
period due to the improved accounts receivable collections and
lower G & A expenses at the Laboratories.
Depreciation expense increased $539,000 and $258,000
for the six months and three months ended June 30, 1996 from
the 1995 comparable periods due to general plant additions at
the Utilities.
Interest expense for the six months and three months
ended June 30, 1996 was $486,000 and $250,000 higher than the
1995 comparable periods due to interest expense associated
with the May 1995 debt issuance of $30,000,000 by BHC and
higher outstanding average short-term debt, primarily
associated with filtration, partially offset by lower short-
term borrowing rates.
Taxes other than income taxes for the six months and
three months ended June 30, 1996 increased $523,000 and
$362,000 over the comparable 1995 periods. Increased property
taxes of $263,000 and $248,000, respectively, as well as
increased payroll and gross earnings taxes of $260,000 and
$114,000, respectively, account for these variances.
Income taxes decreased $574,000 and $310,000 for the six
months and three months ended June 30, 1996 from the
comparable 1995 periods due to lower taxable income and a
lower effective tax rate in 1996.
Significant changes in balance sheet accounts
- ---------------------------------------------
for the six months ended June 30, 1996
- --------------------------------------
The increase of $2,120,000 in accrued revenues is largely
the result of higher unbilled revenues and CWIP surcharge at
the Utilities at June 30, 1996 versus December 31, 1995.
The increase of $12,300,000 in short term borrowings is
principally due to continuing construction costs due to
filtration and the acquisition of SCWC. The filtration
construction costs will be refinanced with long term debt in
the future.
Income taxes payable decreased $1,872,000 as a result of
the required estimated State of Connecticut tax payments
exceeding the actual liability.
-12-
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
-------------------------
ITEM 1. - LEGAL PROCEEDINGS
- ---------------------------
All legal proceedings have previously been reported on the
Annual Report on Form 10-K in Part I, Item 3 for the year
ended December 31, 1995.
ITEM 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- -------------------------------------------------------------
All "Submission of Matters to a Vote of Security Holders"
have been previously reported on Form 10-Q in Part II, Item 4
for the quarter ended March 31, 1996.
ITEM 6. - EXHIBITS AND REPORTS ON FORM 8-K
- ------------------------------------------
(a) Exhibits.
27 Financial Data Schedule (filed herewith).
(b) On June 26, 1996, the Company filed a report
on Form 8-K pursuant to the Securities
Exchange Act of 1934, which under Item 5
reported the Replacement Shareholders Rights
Plan.
-13-
<PAGE>
<PAGE>
SIGNATURE
---------
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.
AQUARION COMPANY
Date: August 13, 1996 By /s/JANET M. HANSEN
---------------------- --------------------
Janet M. Hansen
Executive Vice President,
Chief Financial Officer and
Treasurer
-14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE
30, 1996, AQUARION COMPANY FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 502
<SECURITIES> 0
<RECEIVABLES> 17033
<ALLOWANCES> 2882
<INVENTORY> 4194
<CURRENT-ASSETS> 39765
<PP&E> 457463
<DEPRECIATION> 143429
<TOTAL-ASSETS> 437507
<CURRENT-LIABILITIES> 44346
<BONDS> 141388
285
0
<COMMON> 7008
<OTHER-SE> 115806
<TOTAL-LIABILITY-AND-EQUITY> 437507
<SALES> 55035
<TOTAL-REVENUES> 55035
<CGS> 0
<TOTAL-COSTS> 41925
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 44
<INTEREST-EXPENSE> 4779
<INCOME-PRETAX> 8894
<INCOME-TAX> 3655
<INCOME-CONTINUING> 5239
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5239
<EPS-PRIMARY> .76
<EPS-DILUTED> .76
</TABLE>
