<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 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 1-3562
------
UTILICORP UNITED INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 44-0541877
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3000 Commerce Tower, 911 Main, Kansas City, Missouri 64105
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (816) 421-6600
--------------
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(Former name, former address and former fiscal year,
if changed 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 the latest practicable date.
Class Outstanding at November 8, 1995
- --------------------------- -------------------------------
Common Stock, $1 par value 45,756,203
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Information regarding the condensed consolidated financial statements is
set forth on pages 3 through 13.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Management's discussion and analysis of financial condition and results
of operations can be found on pages 14 through 19.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits and reports on Form 8-K can be found on page 20.
2
<PAGE>
Part 1--Financial Information
Item 1--Financial Statements
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
- --------------------------------------------------------------------------------
IN MILLIONS, EXCEPT PER SHARE 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
REVENUES:
Electric operations $ 179.5 $ 162.0
Gas operations 67.2 66.6
Energy related businesses 94.8 86.5
- --------------------------------------------------------------------------------
TOTAL REVENUES 341.5 315.1
- --------------------------------------------------------------------------------
EXPENSES:
Fuel used for generation 25.2 23.3
Power purchased 30.1 27.0
Gas purchased for resale 76.9 76.2
Other operating 80.2 72.2
Maintenance 10.6 12.6
Depreciation, depletion and amortization 37.6 35.6
Taxes, other than income taxes 21.3 19.8
- --------------------------------------------------------------------------------
TOTAL EXPENSES 281.9 266.7
- --------------------------------------------------------------------------------
INCOME FROM OPERATIONS 59.6 48.4
- --------------------------------------------------------------------------------
OTHER (INCOME) AND EXPENSE:
Long-term debt 28.5 21.9
Short-term debt and other interest 5.2 3.9
Minority interests .8 .7
Other income, net (4.6) (.9)
- --------------------------------------------------------------------------------
TOTAL OTHER (INCOME) AND EXPENSE 29.9 25.6
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INCOME BEFORE INCOME TAXES 29.7 22.8
INCOME TAXES 12.7 8.3
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NET INCOME 17.0 14.5
PREFERENCE DIVIDENDS .5 .5
- --------------------------------------------------------------------------------
EARNINGS AVAILABLE FOR COMMON SHARES $ 16.5 $ 14.0
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Primary 45.17 44.82
Fully diluted 45.52 45.37
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EARNINGS PER COMMON SHARE:
Primary $ .36 $ .31
Fully diluted .36 .31
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CASH DIVIDENDS PER COMMON SHARE $ .43 $ .43
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- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
- -------------------------------------------------------------------------------
IN MILLIONS, EXCEPT PER SHARE 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
REVENUES:
Electric operations $ 442.3 $ 429.9
Gas operations 414.3 447.8
Energy related businesses 277.1 246.3
- -------------------------------------------------------------------------------
TOTAL REVENUES 1,133.7 1,124.0
- -------------------------------------------------------------------------------
EXPENSES:
Fuel used for generation 58.7 60.3
Power purchased 86.6 83.7
Gas purchased for resale 373.9 401.3
Other operating 230.7 211.8
Maintenance 35.2 38.1
Depreciation and amortization 110.0 105.6
Taxes, other than income taxes 57.6 56.5
- -------------------------------------------------------------------------------
TOTAL EXPENSES 952.7 957.3
- -------------------------------------------------------------------------------
INCOME FROM OPERATIONS 181.0 166.7
- -------------------------------------------------------------------------------
OTHER (INCOME) AND EXPENSE:
Long-term debt 77.7 65.9
Short-term debt and other interest 19.2 9.4
Minority interests 2.2 2.1
Other income, net (12.0) (7.8)
- -------------------------------------------------------------------------------
TOTAL OTHER (INCOME) AND EXPENSE 87.1 69.6
- -------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 93.9 97.1
INCOME TAXES 37.5 36.3
- -------------------------------------------------------------------------------
NET INCOME 56.4 60.8
PREFERENCE DIVIDENDS 1.5 2.9
- -------------------------------------------------------------------------------
EARNINGS AVAILABLE FOR COMMON SHARES $ 54.9 $ 57.9
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Primary 44.93 43.83
Fully diluted 45.35 44.39
- -------------------------------------------------------------------------------
EARNINGS PER COMMON SHARE:
Primary $ 1.22 $ 1.32
Fully diluted 1.22 1.31
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- -------------------------------------------------------------------------------
CASH DIVIDENDS PER COMMON SHARE $ 1.29 $ 1.27
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Twelve Months Ended
September 30,
- ---------------------------------------------------------------------------------
IN MILLIONS, EXCEPT PER SHARE 1995 1994
- ---------------------------------------------------------------------------------
<S> <C> <C>
REVENUES:
Electric operations $ 569.4 $ 559.4
Gas operations 585.1 658.3
Energy related businesses 369.8 337.6
- ---------------------------------------------------------------------------------
TOTAL REVENUES 1,524.3 1,555.3
- ---------------------------------------------------------------------------------
EXPENSES:
Fuel used for generation 75.8 79.9
Power purchased 116.2 112.2
Gas purchased for resale 520.3 584.7
Other operating 302.2 287.0
Maintenance 46.3 52.5
Depreciation, depletion and amortization 144.1 138.3
Taxes, other than income taxes 74.7 74.0
Restructuring charge - 69.8
- ---------------------------------------------------------------------------------
TOTAL EXPENSES 1,279.6 1,398.4
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INCOME FROM OPERATIONS 244.7 156.9
- ---------------------------------------------------------------------------------
OTHER (INCOME) AND EXPENSE:
Long-term debt 100.9 88.5
Short-term debt and other interest 23.1 12.8
Gain on sale of subsidiary stock - (47.8)
Minority interests 3.0 2.4
Other income, net (22.7) (19.0)
- ---------------------------------------------------------------------------------
TOTAL OTHER (INCOME) AND EXPENSE 104.3 36.9
- ---------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 140.4 120.0
INCOME TAXES 50.4 25.9
- ---------------------------------------------------------------------------------
NET INCOME 90.0 94.1
PREFERENCE DIVIDENDS 1.6 4.3
- ---------------------------------------------------------------------------------
EARNINGS AVAILABLE FOR COMMON SHARES $ 88.4 $ 89.8
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Primary 45.16 43.36
Fully diluted 45.60 45.31
- ---------------------------------------------------------------------------------
EARNINGS PER COMMON SHARE:
Primary $ 1.96 $ 2.07
Fully diluted 1.94 2.04
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
CASH DIVIDENDS PER COMMON SHARE $ 1.72 $ 1.69
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
- --------------------------------------------------------------------------------
DOLLARS IN MILLIONS 1995 1994
- --------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
ASSETS
UTILITY PLANT IN SERVICE:
Electric $ 1,610.3 $ 1,578.7
Gas 1,050.5 954.6
- --------------------------------------------------------------------------------
2,660.8 2,533.3
Less-accumulated depreciation 992.8 923.0
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Net utility plant in service 1,668.0 1,610.3
Construction work in progress 64.5 23.3
- --------------------------------------------------------------------------------
TOTAL UTILITY PLANT, NET 1,732.5 1,633.6
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Non-Regulated Property, Net:
Energy related 425.9 544.5
Non-regulated generating assets and other 574.2 236.8
- --------------------------------------------------------------------------------
TOTAL NON-REGULATED PROPERTY 1,000.1 781.3
- --------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents 156.6 67.2
Funds on deposit 35.0 44.8
Accounts receivable, net 172.4 144.1
Accrued utility revenues 43.2 71.5
Fuel inventory, at average cost 71.7 95.0
Materials and supplies, at average cost 40.2 39.3
Prepayments and other 38.9 51.9
- --------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 558.0 513.8
- --------------------------------------------------------------------------------
DEFERRED CHARGES 193.0 182.4
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TOTAL ASSETS $ 3,483.6 $ 3,111.1
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- --------------------------------------------------------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholders' equity $ 937.0 $ 906.8
Preference and preferred stock 25.4 25.4
Company-obligated mandatorily redeemable
preferred securities of partnership 100.0 -
Long-term debt, net 1,236.3 976.9
- --------------------------------------------------------------------------------
TOTAL CAPITALIZATION 2,298.7 1,909.1
- --------------------------------------------------------------------------------
MINORITY INTERESTS 30.5 28.4
- --------------------------------------------------------------------------------
CURRENT LIABILITIES:
Current maturities of long-term debt 133.9 138.8
Short-term debt 168.6 182.4
Accounts payable 327.6 340.3
Accrued taxes 42.0 21.0
Accrued interest 32.0 22.1
Other 79.8 89.0
- --------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 783.9 793.6
- --------------------------------------------------------------------------------
DEFERRED CREDITS AND LIABILITIES:
Deferred income tax liabilities 279.8 279.4
Investment tax credits 20.1 21.0
Other 70.6 79.6
- --------------------------------------------------------------------------------
TOTAL DEFERRED CREDITS AND LIABILITIES 370.5 380.0
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COMMITMENTS AND CONTINGENCIES
- --------------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $ 3,483.6 $ 3,111.1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
6
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENTS OF CAPITALIZATION
<TABLE>
<CAPTION>
September 30, December 31,
- -----------------------------------------------------------------------------------------
DOLLARS IN MILLIONS EXCEPT PER SHARE 1995 1994
- -----------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
COMMON SHAREHOLDERS' EQUITY:
Common stock, par value $1 per share, authorized
100,000,000 shares, outstanding 45,631,675 shares
(44,827,135 at December 31, 1994) $ 45.6 $ 44.8
Premium on capital stock 793.3 774.2
Retained earnings 102.9 107.0
Treasury stock, at cost, 227,587 shares
at December 31, 1994 - (6.6)
Currency translation adjustment (4.8) (12.6)
- -----------------------------------------------------------------------------------------
TOTAL COMMON SHAREHOLDERS' EQUITY 937.0 906.8
- -----------------------------------------------------------------------------------------
PREFERENCE STOCK, NOT MANDATORILY REDEEMABLE,
$2.05 SERIES, WITHOUT PAR VALUE, AUTHORIZED
10,000,000 SHARES, OUTSTANDING 1,000,000 SHARES 25.0 25.0
- -----------------------------------------------------------------------------------------
PREFERRED STOCK OF SUBSIDIARY, RETRACTABLE .4 .4
- -----------------------------------------------------------------------------------------
COMPANY-OBLIGATED MANDATORILY REDEEMABLE PREFERRED
SECURITIES OF PARTNERSHIP 100.0 -
- -----------------------------------------------------------------------------------------
LONG-TERM DEBT, NET 1,236.3 976.9
- -----------------------------------------------------------------------------------------
TOTAL CAPITALIZATION $ 2,298.7 $ 1,909.1
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
7
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
- ---------------------------------------------------------------------------------
DOLLARS IN MILLIONS 1995 1994
- ---------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 17.0 $ 14.5
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation, depletion and amortization 38.2 38.8
Deferred taxes and investment tax credits (14.0) 11.3
Changes in certain current assets and liabilities,
net of effects of acquisition:
Accounts receivable and accrued revenues (50.2) 50.6
Accounts receivable sold 15.9 (13.6)
Fuel and materials (13.2) (26.2)
Accounts payable 41.3 (49.2)
Accrued taxes 37.3 17.3
Other 23.3 (5.9)
Changes in other assets and liabilities, net 20.0 7.9
- ---------------------------------------------------------------------------------
CASH (USED FOR) PROVIDED FROM OPERATING ACTIVITIES 115.6 45.5
- ---------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to utility plant (34.0) (33.2)
Purchase of utility operations - (21.7)
Investments in international businesses (245.4) -
Investments in non-regulated generating assets - (8.3)
Investments in energy related properties (62.5) (20.7)
Proceeds on sale of oil and gas properties 204.5 -
Other 6.5 (16.7)
- ---------------------------------------------------------------------------------
CASH USED FOR INVESTING ACTIVITIES (130.9) (100.6)
- ---------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 7.6 1.9
Issuance of long-term debt 161.8 3.4
Short-term borrowings (repayments), net (39.4) 72.4
Cash dividends paid (20.7) (19.8)
- ---------------------------------------------------------------------------------
CASH PROVIDED FROM FINANCING ACTIVITIES 109.3 57.9
- ---------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents 94.0 2.8
Cash and cash equivalents at beginning of period 62.6 80.6
- ---------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 156.6 $ 83.4
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for -
Interest, net of amount capitalized $ 25.1 $ 18.9
Income taxes .5 4.2
- ---------------------------------------------------------------------------------
Liabilities Assumed In Acquisition -
Fair value of assets acquired $ 245.4 $ 23.0
Cash paid for acquisition 245.4 21.7
Liabilities assumed - 1.3
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
8
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
- ----------------------------------------------------------------------------------
DOLLARS IN MILLIONS 1995 1994
- ----------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 56.4 $ 60.8
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation, depletion and amortization 111.6 115.8
Deferred taxes and investment tax credits (.5) 13.8
Changes in certain current assets and liabilities:
Accounts receivable and accrued revenues (9.4) 133.8
Accounts receivable sold 9.3 (17.0)
Fuel and materials 22.5 (18.0)
Accounts payable (12.7) (130.4)
Accrued taxes 20.9 30.3
Other 13.8 9.1
Changes in other assets and liabilities, net 11.5 (17.2)
- ----------------------------------------------------------------------------------
CASH PROVIDED FROM OPERATING ACTIVITIES 223.4 181.0
- ----------------------------------------------------------------------------------
CASH FLOWS FROM INVESTMENT ACTIVITIES:
Additions to utility plant (84.4) (84.4)
Purchase of utility operations and other businesses (100.9) (21.7)
Investments in international businesses (288.6) -
Investment in non-regulated generating assets (59.0) (9.0)
Investments in energy related properties (121.9) (59.9)
Proceeds on sale of oil and gas properties 204.5 -
Other 9.3 (33.4)
- ----------------------------------------------------------------------------------
CASH USED FOR INVESTMENT ACTIVITIES (441.0) (208.4)
- ----------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 20.0 2.3
Treasury stock sold 6.6 -
Retirement of preference stock - (.9)
Issuance of Company-obligated mandatorily redeemable
preferred securities of partnership 100.0 -
Issuance of long-term debt 265.9 9.3
Retirement of long-term debt (11.3) (9.6)
Short-term borrowings (repayments), net (13.8) 112.5
Cash dividends paid (60.4) (58.7)
- ----------------------------------------------------------------------------------
CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES 307.0 54.9
- ----------------------------------------------------------------------------------
Increase in cash and cash equivalents 89.4 27.5
Cash and cash equivalents at beginning of period 67.2 55.9
- ----------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 156.6 $ 83.4
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for-
Interest, net of amount capitalized $ 87.0 $ 65.1
Income taxes 7.9 8.9
- ----------------------------------------------------------------------------------
Liabilities Assumed In Acquisition -
Fair value of assets acquired $ 359.4 $ 23.0
Cash paid for acquisition 346.3 21.7
Liabilities assumed 13.1 1.3
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
9
<PAGE>
UTILICORP UNITED INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Twelve Months Ended
September 30,
- ------------------------------------------------------------------------------------
DOLLARS IN MILLIONS 1995 1994
- ------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 90.0 $ 94.1
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation, depletion and amortization 142.9 150.6
Gain on sale of subsidiary stock - (47.8)
Restructuring charge - 69.8
Deferred taxes and investment tax credits 51.1 (24.3)
Changes in certain current assets and liabilities,
net of effects of acquisition and restructuring:
Accounts receivable and accrued revenues (102.6) 61.5
Accounts receivable sold 4.8 (8.1)
Fuel and materials 7.9 (20.7)
Accounts payable 65.5 (39.7)
Accrued taxes (16.7) 32.9
Other 23.1 13.9
Changes in other assets and liabilities, net 10.3 (6.8)
- ------------------------------------------------------------------------------------
CASH PROVIDED FROM OPERATING ACTIVITIES 276.3 275.4
- ------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to utility plant (132.0) (141.8)
Purchase of utility and other businesses (107.4) (26.7)
Investments in international businesses (288.6) -
Investments in non-regulated generating assets (72.2) (18.5)
Investments in energy related properties (175.6) (93.5)
Sale of subsidiary stock - 74.6
Proceeds on sale of oil and gas properties 204.5 -
Other (12.2) (29.4)
- ------------------------------------------------------------------------------------
CASH USED FOR INVESTING ACTIVITIES (583.5) (235.3)
- ------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 20.5 5.9
Issuance of Company-obligated mandatorily redeemable
preferred securities of partnership 100.0 -
Retirement of preference stock (5.9) (9.9)
Issuance of long-term debt 360.7 22.1
Retirement of long-term debt (1.7) (8.3)
Short-term borrowings (repayments), net (13.9) 81.3
Cash dividends paid (79.3) (78.2)
- ------------------------------------------------------------------------------------
CASH PROVIDED FROM (USED FOR) FINANCING ACTIVITIES 380.4 12.9
- ------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 73.2 53.0
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 83.4 30.4
- ------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 156.6 $ 83.4
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for-
Interest, net of amount capitalized $ 117.8 $ 100.6
Income taxes 10.4 20.5
- ------------------------------------------------------------------------------------
Liabilities Assumed In Acquisitions -
Fair value of assets acquired $ 372.3 $ 28.0
Cash paid for acquisitions 352.8 26.7
Liabilities assumed 19.5 1.3
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements.
10
<PAGE>
UTILICORP UNITED INC.
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(unaudited)
(1) Summary of Significant Accounting Policies: The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance
with the accounting policies described in the consolidated financial statements
and related notes included in the company's 1994 Annual Report to Shareholders
incorporated by reference in the company's 1994 Form 10-K. It is suggested that
those consolidated financial statements be read in conjunction with this report.
The year-end financial statements presented were derived from the company's
audited financial statements, but do not include all disclosures required by
generally accepted accounting principles. In the opinion of management, the
accompanying condensed consolidated financial statements reflect all adjustments
necessary for a fair representation of the financial position of the company and
the results of its operations. Certain estimates and assumptions that affect
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting periods shown have been made in preparing the consolidated financial
statements. Actual results could differ from these estimates.
(2) Certain reclassifications have been made to prior year amounts to conform
to current year's presentation.
(3) On September 6, 1995, Power Partnership Limited (PPL), of which the company
owns 49.9 percent, acquired United Energy Limited (UE), an Australian electric
distribution utility, from the State of Victoria. As part of the acquisition
the company paid approximately $245 million for its 49.9 percent ownership
interest. The company will manage the operations of UE on behalf of PPL and
will receive a management fee that consists of a base amount (costs incurred by
the company plus $1.0 million (Australian), indexed to the consumer price index)
and a variable amount based on financial performance of UE. The management
agreement has a duration of 10 years beginning from date of closing.
The company financed its $245 million ownership interest primarily through
two Australian-dollar-based revolving credit facilities. Approximately
$169.5 million was financed through a five-year facility and approximately
$56.5 million was financed through a six-month facility. During September
the average interest rate was 7.95 percent and floats with periodic changes
in Australian bank bill rate. The total amount of the revolving credit
facilities are $225 million (Australian) and $150 million (Australian) for
the five-year and six-month debt facilities, respectively. As part of the
company's risk management plan, the company entered into an interest rate
swap arrangement to exchange its floating rates for fixed with a financial
institution. Under the interest rate swap, the company agrees to exchange,
at specific intervals, the difference between fixed-rate and floating-rate
interest amounts calculated by reference to an agreed notional principal
amount.
11
<PAGE>
The acquisition was recorded as a purchase and will be accounted for using
the equity method of accounting. The equity investment is included in
Non-regulated generating assets and other on the condensed consolidated balance
sheet. Pro forma unaudited results of operations for UtiliCorp United Inc.,
assuming the acquisition had occurred at the beginning of the period, are shown
below. For the 1994 period, the pro forma includes UE's nine-month 1995 results.
UE commenced operations on July 1, 1994 and the 1995 amounts represent the most
comparable figures for the pro forma table.
<TABLE>
<CAPTION>
Nine Months Ended Nine Months Ended
September 30, 1995 September 30, 1994
------------------ ------------------
<S> <C> <C>
Revenues $1,133.7 $1,124.0
Income from operations 181.0 166.7
Net income 58.3 62.7
Earnings available for common
shares 56.8 59.8
Primary earnings per share 1.26 1.36
Fully diluted earnings per share 1.26 1.35
</TABLE>
(4) On September 27, 1995, the company sold assets of Aquila Energy Resources
Corporation, a wholly-owned subsidiary of Aquila Energy Corporation, to Apache
Corporation for approximately $205 million in cash. The assets sold consist of
substantially all of the company's oil and gas reserves.
(5) On September 13, 1995, the company and Novell, Inc., announced formation of
a partnership to jointly develop certain technologies and products to better
manage energy consumption in home and business environments. Under the terms
of this alliance the company and Novell, Inc., will co-develop, co-own and
jointly market applications that allow customers to optimize their use of
energy on a 24 hour, real-time basis. In October an initial cash payment was
made by the company to Novell, Inc., for related license rights. Products are
expected to become commercially available during 1996 through a combined
Novell, Inc., and UtiliCorp United EnergyOne-SM- branding program. The two
companies also announced the founding of the Smart Energy Network Alliance,
an open industry consortium that will provide leadership in defining the
standards for future energy programs, network management and other smart
energy network solutions.
(6) On June 5, 1995, the company issued $100 million of 6.375 percent senior
notes due in 2005. Net proceeds of $99.3 million were used to reduce short-term
debt. This debt is the initial securities issued under a $200 million shelf
registration of debt securities.
(7) On June 5, 1995, UtiliCorp Capital L.P., a limited partnership of which the
company is the general partner, issued 4,000,000 shares of 8.875 percent
Cumulative Monthly Income Preferred Securities, Series A, for $100 million. The
limited partnership interests represented by the preferred securities are
redeemable at the option of UtiliCorp Capital, after June 12, 2000, at $25 per
preferred security plus accrued interest and unpaid dividends. Holders of the
securities are entitled to receive dividends at an annual rate of 8.875 percent
of the liquidation preference value of $25. Dividends are payable monthly, and
in substance are tax deductible by the company. The securities are shown as
Company-obligated mandatorily redeemable preferred securities of a partnership
on the consolidated balance sheet. The net proceeds were used to reduce short-
term debt.
(8) On May 22, 1995, the company purchased a 50 percent ownership interest for
$59 million in cash in a partnership that owns and operates a chemical recovery
and cogeneration facility at the James River Corporation's pulp and paper mill
in Alabama.
12
<PAGE>
(9) In June 1995, the company was named a Potentially Responsible Party (PRP)
at a site where the company legally disposed of automotive waste. The company
expects to enter into a deminimis settlement with the Environmental Protection
Agency (EPA). The company estimates its liability is less than $.1 million.
The EPA also indicated that the company is a PRP at a site where the company
legally disposed of PCB, a chemical sometimes used in electric transformers.
The company is one of 1,440 other named parties at this site. The company
estimates its liability is less than $.3 million.
(10) The company is in the process of evaluating the carrying value of certain
long-lived assets based on the requirements of Financial Accounting Standards
Board issued SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of,"(SFAS 121). In the fourth quarter
of 1995, the company plans to elect early adoption of SFAS 121, which
standardizes when and how long-lived assets are reviewed for possible
impairment. The company anticipates that it will record a non-cash charge of
approximately $19 million related to investments in an independent power
project, gas gathering systems and gas processing plants.
13
<PAGE>
UTILICORP UNITED INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
UTILICORP UNITED INC. (THE COMPANY) CONTAINS THREE SEGMENTS: ELECTRIC
OPERATIONS, GAS OPERATIONS AND ENERGY RELATED BUSINESSES. EACH SEGMENT IS
DISCUSSED SEPARATELY IN THE RESULTS OF OPERATIONS SECTION. THE LIQUIDITY AND
CAPITAL RESOURCES SECTION IS PREPARED ON A CONSOLIDATED BASIS.
OVERVIEW
EMERGING TRENDS
EARNINGS OUTLOOK
On October 25, 1995, the company announced third quarter earnings and that
it anticipates recording a non-cash charge (discussed below). As part of the
public earnings release, the company disclosed that its full year earnings for
1995 would be below the 4 to 6 percent earnings growth target set at the
beginning of the year, excluding any effects of the non-cash charge discussed
below. Increased interest expense related to recent acquisition
opportunities and infrastructure costs associated with the EnergyOne-SM- brand
launch are the primary factors that contributed to the revised earnings outlook.
IMPAIRMENT OF LONG-LIVED ASSETS
The company is in the process of evaluating the carrying value of certain
long-lived assets based on the requirements of SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of,
"(SFAS 121). In the fourth quarter of 1995, the company plans to elect early
adoption of SFAS 121, which standardizes when and how long-lived assets are
reviewed for possible impairment. The company anticipates that it will record a
non-cash charge of approximately $19 million related to investments in an
independent power project, gas gathering systems and gas processing plants.
SALE OF OIL AND GAS PRODUCTION PROPERTIES
On September 27, 1995, the company sold assets of Aquila Energy Resources
Corporation, a wholly-owned subsidiary of Aquila Energy Corporation, for $205
million. The assets include the oil and natural gas reserves in the Gulf of
Mexico, Texas, Oklahoma, Louisiana and New Mexico and approximately 141,000 net
acres of developed and undeveloped oil and gas properties. With this sale, the
company has sold substantially all of its oil and gas reserves.
PURCHASE OF UNITED ENERGY
On September 6, 1995, Power Partnership Limited, of which the company owns
49.9 percent, acquired United Energy Limited, an Australian electric
distribution utility, from the State of Victoria. United Energy had assets of
approximately $707 million at June 30, 1995 and revenues of approximately $527
million for the year ended June 30, 1995. United Energy's service territory
includes part of metropolitan Melbourne, Victoria and has approximately 520,000
customers. The company paid $245 million in cash for its 49.9 percent ownership
interest. The company's cash contribution was primarily borrowed from a group
of Australian-based banks payable in Australian
14
<PAGE>
dollars. This transaction is structured through a series of wholly-owned U.S.
and Australian companies.
The company will manage the operations of United Energy on behalf of
Power Partnership Limited and will receive a management fee that consists of a
base amount (costs incurred by the company plus $1 million (Australian), indexed
to the consumer price index) and a variable amount based on financial
performance of United Energy. The management agreement has a duration of
10 years beginning from date of closing.
The company recorded its ownership interest in United Energy on the equity
method with equity earnings reflected in other income and its investment
balance reflected in non-regulated generating assets and other.
REQUEST FOR RATE RELIEF
On October 31, 1995, the company's Michigan gas division (Michigan Gas
Utilities (MGU)) filed a request with the Michigan Public Service Commission
to approve a $10.5 million rate request. MGU services 135,500 customers in
Michigan. MGU's rate request is the first request for a rate increase in five
years.
August 1, 1995, the company's Peoples Natural Gas division (PNG) filed a
rate request in the State of Nebraska for $5.2 million. The new rates are
effective on an interim basis on October 30, 1995.
ORGANIZATION REALIGNMENT AND BRAND LAUNCH
In late 1994, the company announced its plans to become the nation's first
national utility and initiated several programs to reach that goal. For
marketing to carry out its plans, the company introduced a unifying brand name,
EnergyOne-SM-, for marketing its products and services. Consistent with this
strategic objective, the company also realigned its businesses into four groups:
Energy Delivery, Power Services, Energy Resources and Marketing Services.
As part of the EnergyOne brand launch, the company has spent approximately
$6.5 million in building the infrastructure and sales organization to support
EnergyOne products and services. The company anticipates that it will spend
another $2.7 million for marketing and sales startup activities in 1995.
LIQUIDITY AND CAPITAL RESOURCES
For the three months ended September 30, 1995, cash provided from
operations was $115.6 million, or $70.1 million higher than the same period in
1994. Changes in cash flow from operations relate to many different
business factors, such as timing of invoice payments, accounts receivable
collections and selling accounts receivable through the sales program. Cash
from operating activities for the nine- and twelve-month periods in 1995
compared to 1994 are higher due to the business factors discussed above.
Cash used for investing activities consisted primarily of purchases of
utility and other businesses, investments in generating assets and investments
in gas and oil reserves. Cash used for investing activities for the three-,
nine- and twelve-month periods ended September 30, 1995, increased over the
comparable 1994 periods. These increases are due to the acquisition of various
businesses. In the 1995 periods, the company acquired the following businesses:
15
<PAGE>
<TABLE>
<CAPTION>
DESCRIPTION DATE AMOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C>
Intrastate pipeline and
distribution assets January, 1995 $78 million
- --------------------------------------------------------------------------------
Gas marketing company January, 1995 $7 million
- --------------------------------------------------------------------------------
Gas processing and gas
marketing company January, 1995 $16 million
- --------------------------------------------------------------------------------
Independent power project May, 1995 $59 million
- --------------------------------------------------------------------------------
Investments in New Zealand Various times, primarily
electric distribution companies during second quarter $43 million
- --------------------------------------------------------------------------------
Investment in United Energy September, 1995 $245 million
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
In 1994 the company's investing activities were generally limited to
utility capital additions and gas reserve acquisitions, except for the
acquisition of a gas distribution system for $23 million in September 1994.
Cash provided from and used in financing activities fluctuate as
opportunities arise to purchase businesses and as long-term interest rates
change. In connection with the purchase of the company's ownership interest in
United Energy, the company borrowed a total of approximately $226 million of
Australian dollar denominated debt from new 5-year and 6-month revolving credit
facilities. The average interest rate is 7.95 percent floating with periodic
changes in Australian bank bill rate. The company has entered into an interest
rate swap arrangement to exchange its floating rates for fixed with a financial
institution. Under interest rate swaps, the company agrees to exchange, at
specific intervals, the difference between fixed-rate and floating-rate
interest amounts calculated by reference to an agreed notional principal amount.
During the second quarter of 1995, the company issued $100 million of
senior notes at 6.375 percent and $100 million of 8.875 percent monthly income
preferred securities (through a special purpose subsidiary). The proceeds from
the issuances were used to reduce short-term debt.
The company has two domestic revolving credit agreements (Agreements)
with a consortium of banks aggregating $400 million. The Agreements support the
company's commercial paper program and provide for additional short-term
borrowing capacity. The company had no borrowings under the Agreements at
September 30, 1995 or December 31, 1994. In addition to the Agreements, the
company has arrangements with financial institutions to sell, on a continuing
basis, up to $205 million of eligible accounts receivable on a limited recourse
basis. The amount of accounts receivable sold under these agreements generally
fluctuates with the level of the company's accounts receivable balance.
The company expects to acquire additional shares of common stock in New
Zealand-based Power New Zealand limited (PNZ) which will result in a
79%-owned subsidiary of the company owning approximately 29 percent of PNZ.
The estimated cost is approximately $91 million (New Zealand dollar). The
company will use a credit facility to finance the investment.
As of September 30, 1995 and December 31, 1994, the company's cash
balance contained $91.7 million and $57.0 million, respectively, of foreign
denominated currency.
16
<PAGE>
RESULTS OF OPERATIONS
ELECTRIC OPERATIONS
THE COMPANY'S ELECTRIC SEGMENT INCLUDES THE ELECTRIC OPERATIONS OF MISSOURI
PUBLIC SERVICE, WEST KOOTENAY POWER, WESTPLAINS ENERGY, AND WEST VIRGINIA
POWER.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dollars in Millions 1995 1994 1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------
Revenues $179.5 $162.0 $442.3 $429.9 $569.4 $559.4
- ---------------------------------------------------------------------------------------------------------
Expenses:
Fuel and purchased power 55.3 50.3 145.3 144.0 192.0 192.1
Other operating 31.0 27.1 83.4 76.6 108.7 105.3
Maintenance 7.8 9.6 26.6 29.4 35.9 41.6
Depreciation and amortization 13.2 12.4 39.3 37.0 52.3 49.1
Taxes other than income 15.2 14.2 38.5 38.7 50.3 50.7
- ---------------------------------------------------------------------------------------------------------
Total expenses 122.5 113.6 333.1 325.7 439.2 438.8
- ---------------------------------------------------------------------------------------------------------
Income from operations $ 57.0 $ 48.4 $109.2 $104.2 $130.2 $120.6
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Income from operations for the quarter ended September 30, 1995, compared
to the same period in 1994 increased by $8.6 million, or 18 percent. This
increase is primarily due to the extremely hot summer temperatures in July and
August that positively impacted the company's domestic electric operations. The
electric operations in Missouri, Colorado and Kansas, which account for
over 80% of total electric revenues, peak during the third quarter.
Continued growth in the number of customers also positively affected the 1995
quarter compared to 1994.
Income from operations for the nine- and twelve-month periods increased
over 1994 periods due partially to the factors discussed above for the quarter.
For the year-to-date period and twelve-month period in 1995, the favorable
third quarter weather was partially offset by unfavorable weather experienced
during the first and second quarters. In addition increased operating expense
related to marketing and sales activities and employee related costs also
reduced year-to-date results and twelve-month results.
GAS OPERATIONS
THE COMPANY'S GAS SEGMENT INCLUDES GAS OPERATIONS OF KANSAS PUBLIC SERVICE,
MICHIGAN GAS UTILITIES, MISSOURI PUBLIC SERVICE, PEOPLES NATURAL GAS, NORTHERN
MINNESOTA UTILITIES, UTILICORP PIPELINE SYSTEMS AND WEST VIRGINIA POWER.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dollars in Millions 1995 1994 1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------
Revenues $67.2 $ 66.6 $414.3 $447.8 $585.1 $658.3
- ---------------------------------------------------------------------------------------------------------
Expenses:
Gas purchased for resale 27.6 32.8 230.6 279.0 332.7 415.6
Other operating 30.8 29.1 94.1 85.4 122.4 116.9
Maintenance 2.5 2.4 7.2 6.8 9.2 8.4
Depreciation & amortization 8.8 7.6 26.1 22.5 33.7 28.6
Taxes, other than income 6.1 5.6 19.1 17.8 24.4 23.3
- ---------------------------------------------------------------------------------------------------------
Total expenses 75.8 77.5 377.1 411.5 522.4 592.8
- ---------------------------------------------------------------------------------------------------------
Income (loss) from operations $(8.6) $(10.9) $ 37.2 $ 36.3 $ 62.7 $ 65.5
- ---------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
Loss from operations for the three months ended September 30, 1995 was
$2.3 million lower primarily due to the acquisition of a distribution system in
Kansas and a pipeline and distribution system in Missouri and more favorable
weather in September. Income from operations for the nine months ended
September 30, 1995 compared to the same period in 1994 was $.9 million higher
due to mild winter weather in January and February offset by additional income
from new business acquisitions. Heating degree days, a temperature benchmark,
were 16 percent lower through February compared to the same period in 1994.
Income from operations for the twelve months ended September 30, 1995 is $2.8
million lower than a year earlier due primarily to changes in weather patterns
discussed previously.
Operating and maintenance expenses increased for the three-, nine- and
twelve-month periods ended September 30, 1995 compared to 1994 due to the
acquisition of a distribution system in Kansas and a pipeline and distribution
system in Missouri. Marketing and sales expenses have increased for the reasons
discussed in the Overview section.
ENERGY RELATED BUSINESSES
THE ENERGY RELATED BUSINESSES SEGMENT INCLUDES THE CONSOLIDATED OPERATIONS OF
THE COMPANY'S AQUILA ENERGY SUBSIDIARY. AQUILA IS INVOLVED IN THE GATHERING,
PROCESSING AND MARKETING OF NATURAL GAS AND EXTRACTION AND SALE OF NATURAL GAS
LIQUIDS.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Dollars in Millions 1995 1994 1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------
Revenues $94.8 $86.5 $277.1 $246.3 $369.8 $337.6
- ---------------------------------------------------------------------------------------------------------
Expenses:
Gas purchases 49.3 43.4 143.3 122.3 187.6 169.1
Other operating 18.4 16.0 53.2 49.8 71.1 64.8
Maintenance .3 .6 1.4 1.9 1.2 2.5
Depreciation, depletion &
amortization 15.6 15.6 44.6 48.1 58.1 60.6
Restructuring charge -- -- -- -- -- 69.8
- ---------------------------------------------------------------------------------------------------------
Total expenses 83.6 75.6 242.5 220.1 318.0 366.8
- ---------------------------------------------------------------------------------------------------------
Income (loss) from operations $11.2 $ 10.9 $ 34.6 $ 26.2 $ 51.8 $(29.2)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Income from operations increased by $.3 million, $8.4 million and $11.2
million (excluding restructuring charge) for the three-, nine- and twelve-month
periods ended September 30, 1995 compared to 1994. Income from operations for
1995 was positively affected by increased gas throughput on the company's
pipelines and lower depreciation, depletion and amortization rates in the
company's gas and oil producing segment. Average natural gas liquids (NGL)
prices between third quarter periods declined 10 percent, but were substantially
offset by increased throughput. Average NGL prices for the nine months ended
September 30, 1995 compared to 1994 increased 4 percent.
On September 27, 1995, AEC sold all its oil and gas reserves to Apache
Corporation for approximately $205 million. See Emerging trends for further
discussion on page 14.
OTHER INCOME AND EXPENSE
Other income and expense includes several of the company's non-regulated
businesses including UtilCo Group, United Energy and other foreign investments.
Interest expense and minority interest is also included in this caption. For
the quarter ended September 30, 1995, the equity in earnings from United Energy
only reflected one month of operations. September is not a high volume sales
month in Australia. The company's subsidiaries and investments in the United
18
<PAGE>
Kingdom lost $.5 million compared to net income of $1.0 million in 1994 for the
quarter ended September 30. This decline is due primarily to volatile gas
prices that resulted in reduced margins.
Net income from UtilCo Group increased $.6 million or 36 percent due
primarily to earnings from a new project acquired in the second quarter for the
three months ended September 30, 1995 compared to the same quarter in 1994.
Net income for the nine months ended September 30, 1995, compared to 1994
decreased $.4 million or 9 percent due primarily to unusually heavy rains that
resulted in additional inexpensive hydro power, reducing power demand from a
power project offset by the favorabilities noted in the quarter period above.
In addition, reduced project performance related to disputed curtailment issues
adversely affected 1995 results compared to 1994. In May 1995, UtilCo Group
and the company acquired an ownership interest in a cogeneration facility in
Alabama for $59 million. The cogeneration project sells all of its output to a
pulp and paper plant. Net income for the twelve month periods were about the
same at $6.0 million for the 1995 and 1994 periods.
Interest expense increased $7.9 million, $21.7 million and $22.6 million
for the three, nine and twelve months ended September 30, 1995 compared to the
same periods in 1994. The increases were due to the issuances of long-term
debt and monthly income preferred securities over the last 12 months totaling
$300 million, $200 million of which was issued in May 1995. Short-term debt
balances were consistently higher in each of the 1995 periods than in 1994 due
primarily to acquisitions completed.
NEW ACCOUNTING STANDARD
In October 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123 "Accounting for
Stock-based Compensation" (SFAS 123). SFAS 123 requires companies to either
record or disclose pro forma information on the fair value of certain
stock-based programs including stock options and employee stock purchase
plans. The company currently provides stock options to certain employees and
has an employee stock purchase program whereby employees may purchase company
common stock at a 15 percent discount. Under SFAS 123 these plans will require
either compensation expense to be recorded or pro-forma discloses of net income
and earnings per share had the company elected to record compensation expense.
At this time the company has not evaluated the accounting and reporting
implications of SFAS 123 and does not have an estimate of additional
compensation expense associated with affected plans. SFAS 123 is required to
be adopted in fiscal years beginning after December 15, 1995.
19
<PAGE>
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) List of Exhibits
11 Statement regarding Computation of Per Share Earnings
27 Financial Data Schedule - For the Quarter Ended September 30, 1995
(b) Reports on Form 8-K
A current report on Form 8-K dated September 13, 1995, with respect
to Items 2 and 7 was filed with the Securities and Exchange
Commission by the Registrant.
20
<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 hereunto duly authorized.
UtiliCorp United Inc.
-------------------------------------
(Registrant)
November 13, 1995 /s/ Richard C. Green, Jr.
-------------------------------------
Richard C. Green, Jr.
Chairman of the Board, President
(Chief Executive Officer)
November 13, 1995 /s/ James S. Brook
-------------------------------------
James S. Brook
Vice President
(Principal Accounting Officer)
21
<PAGE>
UTILICORP UNITED INC. Exhibit 11
COMPUTATION OF EARNINGS PER SHARE
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
1995 1994 1995 1994 1995 1994
------------------ ------------------ --------------------
<S> <C> <C> <C>
LINE NO.
- -------
Earnings Available for Common Shares:
(a) Earnings available for common shares as reported 16.49 13.96 54.86 57.94 88.38 89.77
(b) Elimination of interest on convertible subordinated
debenture, net of tax .09 .14 .31 .43 .44 .55
(c) Elimination of dividends on cumulative
convertible preference stock - - - 1.36 (.43) 2.29
------------------ ------------------ ---------------------
(d) Fully Diluted Earnings Available 16.58 14.10 55.17 59.73 88.39 92.61
------------------ ------------------ ---------------------
------------------ ------------------ ---------------------
Weighted Average Common Shares Outstanding:
(e) Primary weighted average shares outstanding
as reported 45.17 44.82 44.93 43.83 45.16 43.36
(f) Assumed conversion of convertible subordinated
debenture .35 .55 .42 .56 .44 .58
(g) Assumed conversion of cumulative convertible
preference shares - - - 0.88 - 1.37
------------------ ------------------ ---------------------
(h) Fully Diluted Weighted Average Shares
Outstanding 45.52 45.37 45.35 45.27 45.60 45.31
------------------ ------------------ ---------------------
------------------ ------------------ ---------------------
Earnings Per Common Share:
Primary (a/e) $.36 $.31 $1.22 $1.32 $1.96 $2.07
Fully Diluted (d/h) .36 .31 1.22 1.31 1.94 2.04
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10Q FOR
THE QUARTER ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 157
<SECURITIES> 0
<RECEIVABLES> 172
<ALLOWANCES> 0
<INVENTORY> 72
<CURRENT-ASSETS> 558
<PP&E> 3725
<DEPRECIATION> 993
<TOTAL-ASSETS> 3484
<CURRENT-LIABILITIES> 784
<BONDS> 0
<COMMON> 937
100
25
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3484
<SALES> 0
<TOTAL-REVENUES> 1134
<CGS> 0
<TOTAL-COSTS> 953
<OTHER-EXPENSES> 87
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 97
<INCOME-PRETAX> 94
<INCOME-TAX> 38
<INCOME-CONTINUING> 181
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 56
<EPS-PRIMARY> 1.22
<EPS-DILUTED> 1.22
</TABLE>
