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Previous: MINNESOTA POWER & LIGHT CO, 10-Q/A, 1997-01-22 |
Next: MINNESOTA POWER & LIGHT CO, 10-Q/A, 1997-01-22 |
<PAGE>
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q/A
Amendment No.1
(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
Commission File No. 1-3548
Minnesota Power & Light Company
A Minnesota Corporation
IRS Employer Identification No. 41-0418150
30 West Superior Street
Duluth, Minnesota 55802
Telephone - (218) 722-2641
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 and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
---- ----
Common Stock, no par value,
31,935,547 shares outstanding
as of July 31, 1996
<PAGE>
- -------------------------------------------------------------------------------
This Amendment No. 1 to Minnesota Power & Light Company's (Company)
Quarterly Report on Form 10-Q for the quarter ended June 30, 1996 (Form 10-Q) is
being filed to reflect a reclassification of distributions on Company obligated
mandatorily redeemable preferred securities of subsidiary MP&L Capital I. This
Amendment No. 1 includes only those portions of the Form 10-Q which have been
changed as a result of such reclassification.
- -------------------------------------------------------------------------------
-1-
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
Minnesota Power
Consolidated Balance Sheet
In Thousands
<CAPTION>
June 30, December 31,
1996 1995
Unaudited Audited
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Plant and Other Assets
Electric operations $ 799,091 $ 800,477
Water operations 319,331 323,182
Automobile auctions 140,257 123,632
Investments 227,056 201,360
----------- -----------
Total plant and other assets 1,485,735 1,448,651
----------- -----------
Current Assets
Cash and cash equivalents 63,432 31,577
Trading securities 76,319 40,007
Trade accounts receivable (less reserve of $4,088 and $3,325) 171,700 128,072
Notes and other accounts receivable 22,309 12,220
Fuel, material and supplies 25,911 26,383
Prepayments and other 16,910 13,706
----------- -----------
Total current assets 376,581 251,965
----------- -----------
Deferred Charges
Regulatory 82,178 88,631
Other 26,703 25,037
----------- -----------
Total deferred charges 108,881 113,668
----------- -----------
Intangible Assets
Goodwill 124,122 120,245
Other 12,712 13,096
----------- -----------
Total intangible assets 136,834 133,341
----------- -----------
Total Assets $ 2,108,031 $ 1,947,625
- -------------------------------------------------------------------------------------------------------------------
Capitalization and Liabilities
Capitalization
Common stock without par value, 65,000,000 shares authorized
31,917,569 and 31,467,650 shares outstanding $ 384,286 $ 377,684
Unearned ESOP shares (71,047) (72,882)
Net unrealized gain on securities investments 1,165 3,206
Cumulative translation adjustment (401) (177)
Retained earnings 277,744 276,241
----------- -----------
Total common stock equity 591,747 584,072
Cumulative preferred stock 11,492 28,547
Redeemable serial preferred stock 20,000 20,000
Company obligated mandatorily redeemable preferred securities of
subsidiary MP&L Capital I which holds solely Company Junior
Subordinated Debentures 75,000 -
Long-term debt 653,039 639,548
----------- -----------
Total capitalization 1,351,278 1,272,167
----------- -----------
Current Liabilities
Accounts payable 92,366 68,083
Accrued taxes 39,386 40,999
Accrued interest and dividends 16,136 14,471
Notes payable 89,330 96,218
Long-term debt due within one year 70,060 9,743
Other 27,155 27,292
----------- -----------
Total current liabilities 334,433 256,806
----------- -----------
Deferred Credits
Accumulated deferred income taxes 164,994 164,737
Contributions in aid of construction 97,468 98,167
Regulatory 56,491 57,950
Other 103,367 97,798
----------- -----------
Total deferred credits 422,320 418,652
----------- -----------
Total Capitalization and Liabilities $ 2,108,031 $ 1,947,625
- -------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement.
</TABLE>
-2-
<PAGE>
<TABLE>
Minnesota Power
Consolidated Statement of Income
In Thousands Except Per Share Amounts - Unaudited
<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating Revenue and Income
Electric operations $ 129,219 $ 119,694 $ 260,718 $ 240,448
Water operations 23,050 17,814 42,277 33,416
Automobile auctions 45,215 - 84,908 -
Investments 11,019 9,828 23,275 20,160
--------- ---------- --------- ---------
Total operating revenue and income 208,503 147,336 411,178 294,024
--------- ---------- --------- ---------
Operating Expenses
Fuel and purchased power 48,291 44,113 91,934 84,422
Operations 87,034 60,975 173,063 123,117
Administrative and general 40,559 16,790 74,350 35,252
Interest expense 14,357 11,388 28,517 22,489
--------- ---------- --------- ---------
Total operating expenses 190,241 133,266 367,864 265,280
--------- ---------- --------- ---------
Income (Loss) from Equity Investments 2,832 2,361 6,609 (3,909)
--------- ---------- --------- ---------
Operating Income from Continuing Operations 21,094 16,431 49,923 24,835
Distributions on Redeemable Preferred
Securities of Subsidiary 1,509 - 1,711 -
Income Tax Expense (Benefit) 4,753 5,508 15,077 (9,893)
--------- ---------- --------- ---------
Income from Continuing Operations 14,832 10,923 33,135 34,728
Income from Discontinued Operations - 1,190 - 2,842
--------- ---------- --------- ---------
Net Income 14,832 12,113 33,135 37,570
Dividends on Preferred Stock 634 800 1,434 1,600
--------- ---------- --------- ---------
Earnings Available for Common Stock $ 14,198 $ 11,313 $ 31,701 $ 35,970
========= ========== ========= =========
Average Shares of Common Stock 29,053 28,446 28,919 28,409
Earnings Per Share of Common Stock
Continuing operations $ .49 $ .35 $ 1.10 $1.17
Discontinued operations - .05 - .10
----- ----- ------ -----
Total $ .49 $ .40 $ 1.10 $1.27
===== ===== ====== =====
Dividends Per Share of Common Stock $ .51 $ .51 $ 1.02 $1.02
- -------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement.
</TABLE>
-3-
<PAGE>
<TABLE>
Minnesota Power
Consolidated Statement of Cash Flows
In Thousands - Unaudited
<CAPTION>
Six Months Ended
June 30,
1996 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities
Net income $ 33,135 $ 37,570
Depreciation and amortization 32,511 27,575
Deferred income taxes (1,515) (29,101)
Deferred investment tax credits (839) (1,024)
Pre-tax gain on sale of plant (1,073) -
Pre-tax loss on disposal of discontinued operations - 1,793
Changes in operating assets and liabilities
excluding the effects of discontinued operations
Trading securities (36,312) 18,013
Notes and accounts receivable (53,488) 8,646
Fuel, material and supplies 531 (2,090)
Accounts payable 24,201 (1,325)
Other current assets and liabilities (3,460) 8,221
Other - net 12,429 (2,514)
---------- ---------
Cash from operating activities 6,120 65,764
---------- ---------
Investing Activities
Proceeds from sale of investments in securities 14,640 94,162
Proceeds from sale of plant 5,311 -
Proceeds from sale of discontinued operations - 106,115
Funds held by trustee for ADESA acquisition - (161,810)
Additions to investments (51,921) (65,996)
Additions to plant (45,427) (40,906)
Changes to other assets - net 6,443 2,777
---------- ---------
Cash for investing activities (70,954) (65,658)
---------- ---------
Financing Activities
Issuance of long-term debt 190,134 9,000
Issuance of Company obligated mandatorily
redeemable preferred securities of subsidiary
MP&L Capital I - net 72,270 -
Issuance of common stock 9,015 1,467
Changes in notes payable (9,588) 124,372
Reductions of long-term debt (116,455) (2,217)
Redemption of preferred stock (17,568) -
Dividends on preferred and common stock (31,119) (30,846)
---------- ---------
Cash from financing activities 96,689 101,776
---------- ---------
Change in Cash and Cash Equivalents 31,855 101,882
Cash and Cash Equivalents at Beginning of Period 31,577 27,001
---------- ---------
Cash and Cash Equivalents at End of Period $ 63,432 $ 128,883
========== =========
Supplemental Cash Flow Information
Cash paid during the period for
Interest (net of capitalized) $ 24,930 $ 22,481
Income taxes $ 17,182 $ 11,893
- -------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement.
</TABLE>
-4-
<PAGE>
Note 1. Business Segments
In Thousands
<TABLE>
<CAPTION>
Investments
--------------------- Corporate
Electric Water Automobile Portfolio & Real Charges
Consolidated Operations Operations Auctions<F1> Reinsurance Estate & Other
------------ ---------- ---------- ------------ ----------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Quarter Ended June 30, 1996
- ---------------------------
Operating revenue and income $208,503 $129,219 $ 23,050 $ 45,215 $4,736 $ 6,605 $ (322)
Operation and other expense 159,589 102,218 13,926 37,026 731 3,845 1,843
Depreciation and amortization
expense 16,295 10,512 3,070 2,705 - 8 -
Interest expense 14,357 5,537 3,057 2,017 - 486 3,260
Income from equity investments 2,832 - - - 2,832 - -
-------- -------- -------- -------- ------ -------- -------
Operating income (loss) 21,094 10,952 2,997 3,467 6,837 2,266 (5,425)
Distributions on redeemable
preferred securities of
subsidiary 1,509 403 - - - - 1,106
Income tax expense (benefit) 4,753 3,593 1,010 2,002 928 (782) (1,998)
-------- -------- -------- -------- ------ -------- -------
Net income $ 14,832 $ 6,956 $ 1,987 $ 1,465 $5,909 $ 3,048 $(4,533)
======== ======== ======== ======== ====== ======== =======
Quarter Ended June 30, 1995
- ---------------------------
Operating revenue and income $147,336 $119,694 $ 17,814 - $6,223 $ 4,438 $ (833)
Operation and other expense 109,152 91,128 11,692 - 1,322 3,492 1,518
Depreciation and amortization
expense 12,726 10,115 2,551 - - 60 -
Interest expense 11,388 5,573 2,534 - 1 - 3,280
Income from equity investments 2,361 - - - 2,361 - -
-------- -------- -------- ------ -------- -------
Operating income (loss)
from continuing operations 16,431 12,878 1,037 - 7,261 886 (5,631)
Income tax expense (benefit) 5,508 5,014 348 - 488 592 (934)
-------- -------- -------- ------ -------- -------
Income (loss) from
continuing operations 10,923 $ 7,864 $ 689 - $6,773 $ 294 $(4,697)
======== ======== ====== ======== =======
Income from
discontinued operations 1,190
--------
Net income $ 12,113
========
- ------------------------------
<FN>
<F1> Purchased July 1, 1995.
</FN>
</TABLE>
-5-
<PAGE>
Note 1. Business Segments (Continued)
In Thousands
<TABLE>
<CAPTION>
Investments
---------------------- Corporate
Electric Water Automobile Portfolio & Real Charges
Consolidated Operations Operations Auctions <F1> Reinsurance Estate & Other
------------ ---------- ---------- ------------ ----------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended June 30, 1996
- ------------------------------
Operating revenue and income $ 411,178 $ 260,718 $ 42,277 $ 84,908 $ 8,605 $ 15,281 $ (611)
Operation and other expense 306,836 197,523 25,444 71,228 1,254 7,058 4,329
Depreciation and amortization
expense 32,511 21,011 6,207 5,255 - 38 -
Interest expense 28,517 11,212 6,344 3,308 1 488 7,164
Income from equity investments 6,609 - - - 6,609 - -
---------- --------- --------- -------- --------- -------- --------
Operating income (loss) 49,923 30,972 4,282 5,117 13,959 7,697 (12,104)
Distributions on redeemable
preferred securities of
subsidiary 1,711 480 - - - - 1,231
Income tax expense (benefit) 15,077 11,367 1,459 2,664 2,897 1,581 (4,891)
---------- --------- --------- -------- --------- -------- --------
Net income $ 33,135 $ 19,125 $ 2,823 $ 2,453 $ 11,062 $ 6,116 $ (8,444)
========== ========= ========= ======== ========= ======== ========
Total assets $2,108,031 $ 983,971 $ 341,792 $453,561 $ 244,526 $ 82,516 $ 1,665
Accumulated depreciation $ 646,609 $ 527,425 $ 115,162 $ 4,022 - - -
Accumulated amortization $ 5,819 - - $ 4,949 - $ 870 -
Construction work in progress $ 55,559 $ 13,769 $ 17,816 $ 23,974 - - -
Six Months Ended June 30, 1995
- ------------------------------
Operating revenue and income $ 294,024 $ 240,448 $ 33,416 - $ 12,962 $ 8,703 $ (1,505)
Operation and other expense 217,464 178,165 22,749 - 2,257 10,626<F2> 3,667
Depreciation and amortization
expense 25,327 20,136 5,071 - - 120 -
Interest expense 22,489 11,070 4,986 - 4 2 6,427
Income (loss) from
equity investments (3,909) - - - 4,619 - (8,528)<F3>
---------- --------- --------- --------- -------- --------
Operating income (loss)
from continuing operations 24,835 31,077 610 - 15,320 (2,045) (20,127)
Income tax expense (benefit) (9,893) 12,833 (47) - 1,950 (17,423)<F4> (7,206)
---------- --------- --------- --------- -------- --------
Income (loss) from
continuing operations 34,728 $ 18,244 $ 657 - $ 13,370 $ 15,378 $(12,921)
========= ========= ========= ======== ========
Income from
discontinued operations 2,842
----------
Net income $ 37,570
==========
Total assets $1,872,156 $ 993,127 $ 325,348 - $ 518,702 $ 34,181 $ 798
Accumulated depreciation $ 604,884 $ 510,170 $ 94,714 - - - -
Accumulated amortization $ 580 - - - - $ 580 -
Construction work in progress $ 22,672 $ 9,943 $ 12,729 - - - -
- -------------------------------
<FN>
<F1> Purchased July 1, 1995.
<F2> Includes $3.7 million of minority interest relating to the recognition of tax benefits. (See Note 3.)
<F3> Includes an $8.5 million pre-tax provision for exiting the equipment manufacturing business.
<F4> Includes $18.4 million of tax benefits. (See Note 3.)
</FN>
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
-6-
<PAGE>
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.
Minnesota Power & Light Company
-------------------------------
(Registrant)
January 22, 1997 D. G. Gartzke
------------------------------
D. G. Gartzke
Senior Vice President - Finance
and Chief Financial Officer
January 22, 1997 Mark A. Schober
-----------------------------
Mark A. Schober
Corporate Controller
-7-
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MINNESOTA
POWER'S CONSOLIDATED BALANCE SHEET, STATEMENT OF INCOME, AND STATEMENT OF CASH
FLOW FOR THE PERIOD ENDED JUNE 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<S> <C>
<MULTIPLIER> 1,000
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,118,422
<OTHER-PROPERTY-AND-INVEST> 367,313
<TOTAL-CURRENT-ASSETS> 376,581
<TOTAL-DEFERRED-CHARGES> 108,881
<OTHER-ASSETS> 136,834
<TOTAL-ASSETS> 2,108,031
<COMMON> 384,286
<CAPITAL-SURPLUS-PAID-IN> 0
<RETAINED-EARNINGS> 277,744
<TOTAL-COMMON-STOCKHOLDERS-EQ> 591,747
75,000
31,492
<LONG-TERM-DEBT-NET> 653,039
<SHORT-TERM-NOTES> 89,330
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 70,060
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 527,080
<TOT-CAPITALIZATION-AND-LIAB> 2,108,031
<GROSS-OPERATING-REVENUE> 411,178
<INCOME-TAX-EXPENSE> 15,077
<OTHER-OPERATING-EXPENSES> 339,347
<TOTAL-OPERATING-EXPENSES> 367,864
<OPERATING-INCOME-LOSS> 49,923
<OTHER-INCOME-NET> 4,898 <F1>
<INCOME-BEFORE-INTEREST-EXPEN> 61,652
<TOTAL-INTEREST-EXPENSE> 28,517
<NET-INCOME> 33,135
1,434
<EARNINGS-AVAILABLE-FOR-COMM> 31,701
<COMMON-STOCK-DIVIDENDS> 29,685
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 6,120
<EPS-PRIMARY> 1.10
<EPS-DILUTED> 1.10
<FN>
<F1>Includes $6,609,000 of Income from Equity Investments and $1,711,000 for
Distribution on Redeemable Preferred Securities of Subsidiary.
</FN>
</TABLE>
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