<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q/A
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended MARCH 31, 1999
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 0-10007
COLONIAL GAS COMPANY
--------------------
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-1558100
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
40 MARKET STREET, LOWELL, MASSACHUSETTS 01852
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (978) 322-3000
Former name, former address and former fiscal year, if changed since last
report: Not applicable
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 [_]
The number of shares of the registrant's common stock, $3.33 par value,
outstanding as of April 30, 1999 was 8,949,981.
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Quarterly Report for the quarter
ended March 31, 1999, on Form 10-Q as set forth in the pages attached hereto to
reflect a revision in the cost of gas sold and other items affected thereby in
the financial statements of the first quarter and the twelve months ended March
31, 1999.
Part 1
Item 1 - Financial Statements
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
COLONIAL GAS COMPANY AND SUBSIDIARIES
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CONSOLIDATED CONDENSED STATEMENTS OF INCOME
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(UNAUDITED)
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<TABLE>
<CAPTION>
AMENDED
Three Months Ended
March 31,
---------------------
1999 1998
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(In Thousands Except
Per Share Amounts)
<S> <C> <C>
Operating Revenues $87,994 $77,822
Cost of gas sold 49,113 40,917
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Operating Margin 38,881 36,905
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Operating Expenses:
Operations 7,427 6,650
Maintenance 1,313 1,067
Depreciation and Amortization 3,783 3,184
Taxes, other than income 1,364 1,254
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Total Operating Expenses 13,887 12,155
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Income Taxes 8,788 8,675
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Utility Operating Income 16,206 16,075
Other Operating Income:
Energy Trucking revenues 1,061 406
Energy Trucking expenses, including income
taxes and interest 1,137 361
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Energy Trucking net (loss) income (76) 45
Other, net of income taxes (44) 51
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Total Other Operating (Loss) Income (120) 96
Non-Operating Income, Net 87 176
Merger Costs, Net (227) -
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Income Before Interest and Debt Expense 15,946 16,347
Interest and Debt Expense 2,230 2,135
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Net Income $13,716 $14,212
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Average Common Shares Outstanding 8,922 8,703
======= =======
Income per Average Common Share $ 1.54 $ 1.63
======= =======
Dividends Paid per Common Share $ .345 $ .335
======= =======
</TABLE>
(See accompanying notes to consolidated condensed financial statements)
2
<PAGE>
COLONIAL GAS COMPANY AND SUBSIDIARIES
-------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
-------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
AMENDED
Twelve Months Ended
March 31,
---------------------
1999 1998
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(In Thousands Except
Per Share Amounts)
<S> <C> <C>
Operating Revenues $178,151 $181,901
Cost of gas sold 96,323 99,655
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Operating Margin 81,828 82,246
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Operating Expenses:
Operations 28,569 29,257
Maintenance 5,040 4,425
Depreciation and Amortization 14,034 12,260
Taxes, other than income 5,266 5,132
-------- --------
Total Operating Expenses 52,909 51,074
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Income Taxes 7,930 9,216
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Utility Operating Income 20,989 21,956
Other Operating Income:
Energy Trucking revenues 4,378 4,596
Energy Trucking expenses, including income
taxes and interest 4,466 4,305
-------- --------
Energy Trucking net (loss) income (88) 291
Other, net of income taxes 223 317
-------- --------
Total Other Operating Income 135 608
Non-Operating Income, Net 851 659
Merger Costs, Net (1,353) -
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Income Before Interest and Debt Expense 20,622 23,223
Interest and Debt Expense 8,829 8,264
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Net Income $ 11,793 $ 14,959
======== ========
Average Common Shares Outstanding 8,835 8,640
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Income per Average Common Share $ 1.33 $ 1.73
======== ========
Dividends Paid per Common Share $ 1.38 $ 1.34
======== ========
</TABLE>
(See accompanying notes to consolidated condensed financial statements)
3
<PAGE>
COLONIAL GAS COMPANY AND SUBSIDIARIES
-------------------------------------
CONSOLIDATED CONDENSED BALANCE SHEETS
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ASSETS
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<TABLE>
<CAPTION>
AMENDED
March 31, December 31, March 31,
1999 1998 1998
----------- ------------- -----------
(Unaudited) (Unaudited)
(In Thousands)
<S> <C> <C> <C>
Utility Property:
At original cost $ 398,360 $ 394,222 $370,317
Accumulated depreciation (105,444) (102,009) (91,523)
--------- --------- --------
Net utility property 292,916 292,213 278,794
Non-Utility Property - Net 6,981 7,129 7,567
--------- --------- --------
Net property 299,897 299,342 286,361
--------- --------- --------
Capital Leases - Net 1,583 1,583 2,614
--------- --------- --------
Current Assets:
Cash and cash equivalents 5,779 3,125 3,092
Accounts receivable 33,930 14,591 29,991
Allowance for doubtful accounts (1,647) (1,350) (3,561)
Accrued utility revenues 5,123 7,876 5,447
Unbilled gas costs (2,772) 18,195 8,118
Fuel and other inventories 8,971 12,712 10,122
Prepayments and other current assets 6,451 12,419 6,791
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Total current assets 55,835 67,568 60,000
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Deferred Charges and Other Assets:
Unrecovered deferred income taxes 8,155 8,349 8,820
Unrecovered demand side management
costs 6,646 6,661 8,122
Unrecovered environmental expenses -
incurred 2,724 3,633 4,135
Unrecovered environmental expenses -
accrued 200 200 707
Unrecovered transition costs - accrued 700 700 2,800
Other 12,960 12,968 12,202
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Total deferred charges
and other assets 31,385 32,511 36,786
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Total Assets $ 388,700 $ 401,004 $385,761
========= ========= ========
</TABLE>
(See accompanying notes to consolidated condensed financial statements)
4
<PAGE>
COLONIAL GAS COMPANY AND SUBSIDIARIES
-------------------------------------
CONSOLIDATED CONDENSED BALANCE SHEETS
-------------------------------------
LIABILITIES AND CAPITALIZATION
------------------------------
<TABLE>
<CAPTION>
AMENDED
March 31, December 31, March 31,
1999 1998 1998
----------- ------------ -----------
(Unaudited) (Unaudited)
(In Thousands)
<S> <C> <C> <C>
Capitalization:
Common equity:
Common Stock - par value $3.33 per share
Authorized - 15,000 shares
Issued and outstanding - 8,949,
8,910 and 8,728 shares $ 29,800 $ 29,669 $ 29,063
Premium on common stock 64,284 63,080 58,262
Retained earnings 46,812 36,173 47,219
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Total Common equity 140,896 128,922 134,544
Long-term debt 120,000 120,000 90,059
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Total capitalization 260,896 248,922 224,603
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Capital Lease Obligations 963 963 1,528
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Current Liabilities:
Current maturities of long-term debt 59 102 20,167
Current capital lease obligations 620 620 1,086
Notes payable 31,000 52,000 38,500
Gas inventory purchase obligations 7,722 14,125 9,088
Accounts payable 10,559 12,186 10,482
Other 15,708 10,550 17,268
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Total current liabilities 65,668 89,583 96,591
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Deferred Credits and Reserves:
Deferred income taxes-funded 44,748 44,555 42,626
Deferred income taxes-unfunded 8,155 8,349 8,820
Accrued environmental expenses 200 200 707
Accrued transition costs 700 700 2,800
Other 7,370 7,732 8,086
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Total deferred credits and reserves 61,173 61,536 63,039
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Total Capitalization and Liabilities $ 388,700 $ 401,004 $ 385,761
========== ============ ==========
</TABLE>
(See accompanying notes to consolidated condensed financial statements)
5
<PAGE>
COLONIAL GAS COMPANY AND SUBSIDIARIES
-------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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<TABLE>
<CAPTION>
AMENDED
Three Months Ended
March 31,
--------------------
1999 1998
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(In Thousands)
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 13,716 $ 14,212
Adjustments to reconcile net income to net cash (1,622) 3,719
Changes in current assets and liabilities 24,051 12,392
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Net cash provided by operating activities 36,145 30,323
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Cash Flows From Investing Activities:
Utility capital expenditures (4,669) (7,489)
Non-utility capital expenditures -- (378)
Change in deferred accounts 367 (734)
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Net cash used in investing activities (4,302) (8,602)
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Cash Flows From Financing Activities:
Dividends paid on Common Stock (3,078) (2,917)
Issuance of Common Stock 1,335 1,117
Issuance of long-term debt, net of issuance costs -- 9,658
Retirement of long-term debt, including premiums (43) (10,040)
Change in notes payable (21,000) (10,900)
Change in gas inventory purchase obligations (6,403) (5,807)
-------- --------
Net cash used in financing activities (29,189) (18,889)
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Net increase (decrease) in cash and cash equivalents 2,654 2,832
Cash and cash equivalents at beginning of period 3,125 259
-------- --------
Cash and cash equivalents at end of period $ 5,779 $ 3,092
======== ========
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest - net of amount capitalized $ 3,957 $ 3,414
======== ========
Income and franchise taxes $ 265 $ 278
======== ========
</TABLE>
(See accompanying notes to consolidated condensed financial statements)
6
<PAGE>
COLONIAL GAS COMPANY AND SUBSIDIARIES
-------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
AMENDED
Twelve Months Ended
March 31,
---------------------
1999 1998
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(In Thousands)
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 11,793 $ 14,959
Adjustments to reconcile net income to net cash 11,451 19,528
Changes in current assets and liabilities 11,049 4,346
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Net cash provided by operating activities 34,293 38,833
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Cash Flows From Investing Activities:
Capital expenditures (28,272) (38,441)
Non-utility Capital expenditures -- (2,210)
Change in deferred accounts 2,087 (200)
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Net cash used in investing activities (26,185) (40,851)
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Cash Flows From Financing Activities:
Dividends paid on Common Stock (12,200) (11,578)
Issuance of Common Stock 6,759 3,832
Issuance of long-term debt, net of issuance costs 29,457 24,528
Retirement of long-term debt, including premiums (20,571) (15,155)
Change in notes payable (7,500) (1,600)
Change in gas inventory purchase obligations (1,366) 1,676
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Net cash (used in) provided by financing activities (5,421) 1,703
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Net decrease in cash and cash equivalents 2,687 (315)
Cash and cash equivalents at beginning of period 3,092 3,406
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Cash and cash equivalents at end of period $ 5,779 $ 3,092
========= =========
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest - net of amount capitalized $ 10,771 $ 10,067
========= =========
Income and franchise taxes $ 7,225 $ 7,258
========= =========
</TABLE>
(See accompanying notes to consolidated condensed financial statements)
7
<PAGE>
SIGNATURES
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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.
COLONIAL GAS COMPANY
--------------------
(Registrant)
Date: August 24, 1999 /s/ F. L. Putnam, III
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F. L. Putnam, III
President and Chief Executive Officer
Date: August 24, 1999 /s/ Nickolas Stavropoulos
--------------- -------------------------------------
Nickolas Stavropoulos
Executive Vice President - Finance,
Marketing and Chief Financial Officer
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 292,916
<OTHER-PROPERTY-AND-INVEST> 8,564
<TOTAL-CURRENT-ASSETS> 55,835
<TOTAL-DEFERRED-CHARGES> 18,425
<OTHER-ASSETS> 12,960
<TOTAL-ASSETS> 388,700
<COMMON> 29,800
<CAPITAL-SURPLUS-PAID-IN> 64,284
<RETAINED-EARNINGS> 46,812
<TOTAL-COMMON-STOCKHOLDERS-EQ> 140,896
0
0
<LONG-TERM-DEBT-NET> 120,000
<SHORT-TERM-NOTES> 38,722
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 59
0
<CAPITAL-LEASE-OBLIGATIONS> 963
<LEASES-CURRENT> 620
<OTHER-ITEMS-CAPITAL-AND-LIAB> 87,440
<TOT-CAPITALIZATION-AND-LIAB> 388,700
<GROSS-OPERATING-REVENUE> 87,994
<INCOME-TAX-EXPENSE> 8,788
<OTHER-OPERATING-EXPENSES> 63,000
<TOTAL-OPERATING-EXPENSES> 71,788
<OPERATING-INCOME-LOSS> 16,206
<OTHER-INCOME-NET> (260)
<INCOME-BEFORE-INTEREST-EXPEN> 15,946
<TOTAL-INTEREST-EXPENSE> 2,230
<NET-INCOME> 13,716
0
<EARNINGS-AVAILABLE-FOR-COMM> 13,716
<COMMON-STOCK-DIVIDENDS> 3,078
<TOTAL-INTEREST-ON-BONDS> 2,133
<CASH-FLOW-OPERATIONS> 36,145
<EPS-BASIC> 1.54
<EPS-DILUTED> 1.54
</TABLE>
