<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1995
Commission File Number 0-11035
ENERGYNORTH, INC.
(Exact name of registrant as specified in its charter)
New Hampshire 02-0363755
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1260 Elm Street, P.O. Box 329, Manchester, NH 03105
(Address and zip code of principal executive offices)
(603)625-4000
(Registrant's telephone number, including area code)
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 [ ]
EnergyNorth, Inc. had 3,184,191 shares of $1.00 par value common
stock outstanding on July 26, 1995, the filing date of this Report.
An exhibit index appears on page 12.
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Assets
(Unaudited, except for September 30, 1994 data)
(Thousands of dollars)
June 30, September 30,
1995 1994 1994
------------------ -------------
Property:
Utility plant, at cost $128,131 $122,705 $124,617
Accumulated depreciation and amortization 41,303 38,116 38,521
------------------ ------------
Net utility plant 86,828 84,589 86,096
Net non-utility property, at cost 8,067 7,912 7,907
------------------ ------------
Net property 94,895 92,501 94,003
------------------ ------------
Current assets:
Cash and temporary cash investments 6,982 9,472 3,048
Accounts receivable (net of allowances of
$980, $1,138 and $1,050, respectively) 3,310 5,436 2,261
Unbilled revenues 802 489 544
Inventories, at average cost:
Materials and supplies 1,600 1,764 1,650
Supplemental gas supplies 5,485 4,806 8,047
Prepaid and deferred taxes 2,273 1,275 1,468
Recoverable FERC 636 transition costs 1,329 923 2,351
Prepaid expenses and other 375 469 1,226
------------------ ------------
Total current assets 22,156 24,634 20,595
------------------ ------------
Deferred charges:
Regulatory asset - income taxes 2,370 - 2,370
Recoverable environmental costs 3,603 2,705 2,901
Other deferred charges 1,046 1,077 1,150
------------------ ------------
Total deferred charges 7,019 3,782 6,421
------------------ ------------
Total Assets $124,070 $120,917 $121,019
================== ============
See accompanying notes to condensed consolidated financial statements.
<PAGE> 3
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Capitalization and Liabilities
(Unaudited, except for September 30, 1994 data)
(Thousands of dollars)
June 30, September 30,
1995 1994 1994
------------------- --------------
Capitalization:
Common stock - par value of $1 per
share, 10,000,000 shares authorized;
3,182,360, 3,130,728 and 3,141,572
shares issued and outstanding,
respectively $ 3,182 $ 3,131 $ 3,142
Amount in excess of par 29,369 28,690 28,860
Retained earnings 12,864 12,747 8,776
------------------ --------------
Total common stockholders' equity 45,415 44,568 40,778
Long-term debt 32,524 34,551 32,971
Capital lease obligations 326 602 530
------------------ --------------
Total capitalization 78,265 79,721 74,279
------------------ --------------
Current liabilities:
Current portion of long-term debt 2,105 1,726 2,036
Current portion of capital lease
obligations 272 263 272
Inventory purchase obligation 4,271 2,184 7,334
Accounts payable 4,563 5,085 4,848
Deferred gas costs 6,374 6,010 4,736
Accrued interest 1,594 1,608 843
Accrued taxes 2,636 2,327 414
Accrued FERC 636 transition costs 1,329 923 2,351
Customer deposits, environmental
and other 2,384 4,421 4,109
------------------ --------------
Total current liabilities 25,528 24,547 26,943
------------------ --------------
Commitments and contingencies
Deferred credits:
Deferred income taxes 14,500 10,655 13,779
Unamortized investment tax credits 2,046 2,187 2,151
Regulatory liability 1,534 1,536 1,620
Contributions in aid of construction
and other 2,197 2,271 2,247
------------------- --------------
Total deferred credits 20,277 16,649 19,797
------------------- --------------
Total Capitalization and Liabilities $124,070 $120,917 $121,019
=================== ==============
See accompanying notes to condensed consolidated financial statements.
<PAGE> 4
<TABLE>
ENERGYNORTH, INC.
Condensed Consolidated Statements of Income
For the periods ended June 30
(Unaudited)
(Thousands of dollars except for per share amounts and shares outstanding)
<CAPTION>
Three Months Nine Months Twelve Months
1995 1994 1995 1994 1995 1994
-------------------- -------------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Total operating revenues $13,678 $15,504 $71,358 $88,426 $79,982 $95,672
-------------------- -------------------- --------------------
Operating expenses:
Cost of gas sold 8,147 10,352 36,133 50,229 41,034 54,042
Operations and maintenance 5,024 5,270 15,800 16,586 21,014 21,502
Depreciation and amortization 1,248 1,220 3,749 3,669 4,934 4,757
Taxes other than income taxes 833 892 2,715 3,098 3,527 3,886
Federal and state income taxes (857) (938) 3,780 4,010 2,386 2,587
-------------------- -------------------- --------------------
Total operating expenses 14,395 16,796 62,177 77,592 72,895 86,774
-------------------- -------------------- --------------------
Operating income (loss) (717) (1,292) 9,181 10,834 7,087 8,898
-------------------- -------------------- --------------------
Other income:
Net rentals, service and
appliance sales 190 159 614 497 767 633
Other, net 109 96 186 160 25 186
-------------------- -------------------- --------------------
Total other income 299 255 800 657 792 819
-------------------- -------------------- --------------------
Income (loss) before interest expense (418) (1,037) 9,981 11,491 7,879 9,717
-------------------- -------------------- --------------------
Interest expense:
Interest on long-term debt 795 826 2,392 2,482 3,195 3,301
Other interest 283 119 871 473 1,102 608
Interest charged to construction (9) (4) (22) (12) (35) (27)
-------------------- -------------------- --------------------
Total interest expense 1,069 941 3,241 2,943 4,262 3,882
-------------------- -------------------- --------------------
Earnings (loss) applicable to
common stock $(1,487) $(1,978) $ 6,740 $ 8,548 $ 3,617 $ 5,835
==================== ==================== ====================
Weighted average shares outstanding 3,172,852 3,124,034 3,158,646 3,115,139 3,152,244 3,110,534
==================== ==================== ====================
Earnings (loss) per share $ (0.47) $ (0.63) $ 2.13 $ 2.74 $ 1.15 $ 1.88
==================== ==================== ====================
Dividends declared per share $ 0.28 $ 0.27 $ 0.84 $ 0.81 $ 1.11 $ 1.075
==================== ==================== ====================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE> 5
ENERGYNORTH, INC.
Condensed Consolidated Statements of Cash Flows
For the nine months ended June 30
(Unaudited)
(Thousands of dollars)
1995 1994
------- -------
Cash was provided (used) by:
Operating activities:
Earnings applicable to common stock $ 6,740 $ 8,548
Non-cash items:
Depreciation and amortization 4,343 4,226
Deferred taxes and investment tax credits, net 264 69
------- -------
Total funds provided by operating activities 11,347 12,843
Changes in:
Accounts receivable, net (1,049) (3,542)
Unbilled revenues (258) (21)
Inventories 2,612 3,843
Prepaid expenses and other 851 1,099
Deferred gas costs 1,638 6,773
Accounts payable (285) 518
Accrued liabilities 415 (188)
Accrued/prepaid taxes 1,683 1,982
Payments for environmental costs and other (2,257) 69
------- -------
Net cash provided by operating activities 14,697 23,376
------- -------
Investing activities:
Additions to property (5,090) (4,948)
------- -------
Financing activities:
Issues of common stock 549 488
Issues of long-term debt 388 217
Change in notes payable to banks - (3,050)
Change in inventory purchase obligation (3,063) (4,843)
Change in customer deposits 125 91
Change in contributions in aid of construction and other (50) 98
Cash dividends on common stock (2,652) (2,522)
Refunding requirements:
Repayment of long-term debt (766) (416)
Repayment of capital lease obligations (204) (195)
------- -------
Net cash used by financing activities (5,673) (10,132)
------- -------
Net increase in cash and temporary cash investments 3,934 8,296
Cash and temporary cash investments, beginning of period 3,048 1,176
------- -------
Cash and temporary cash investments, end of period $ 6,982 $ 9,472
======= =======
See accompanying notes to condensed consolidated financial statements.
<PAGE> 6
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements
June 30, 1995
(Unaudited)
EnergyNorth, Inc. is an exempt public utility holding company
operating in southern and central New Hampshire. Its principal
operating subsidiaries include EnergyNorth Natural Gas, Inc.
("ENGI"), a natural gas distribution utility, and EnergyNorth
Propane, Inc. ("ENPI"), a retail propane company.
Note 1. Basis of Presentation
The accompanying condensed consolidated financial statements of
EnergyNorth, Inc. (the "Company") include the accounts of all
subsidiaries. All significant intercompany accounts and
transactions have been eliminated in the accompanying financial
statements.
The condensed consolidated financial statements included herein
have been prepared by the Company, without audit, pursuant to the
rules and regulations of the U. S. Securities and Exchange
Commission. Certain footnote disclosures and other information,
normally included in financial statements prepared in accordance
with generally accepted accounting principles, have been condensed
or omitted from these interim financial statements, pursuant to
such rules and regulations, although the Company believes that the
disclosures are adequate to make the information not misleading.
In the opinion of the Company, the accompanying unaudited condensed
consolidated financial statements contain all adjustments, which
include only normal recurring adjustments, necessary to present
fairly the financial position as of June 30, 1995 and 1994 and the
results of operations for the three, nine and twelve months then
ended and statements of cash flows for the nine months ended
June 30, 1995 and 1994. All accounting policies and practices have
been applied in a manner consistent with prior periods. These
interim financial statements should be read in conjunction with the
consolidated financial statements and notes thereto contained in
the Company's Annual Report to Shareholders for the year ended
September 30, 1994.
The business of ENGI and ENPI is influenced by seasonal weather
conditions. The amount of gas sold for central and space heating
purposes and, to a lesser extent, water heating, is directly
related to the ambient air temperature. Consequently, more gas is
sold during the winter months than is sold during the summer
months. Therefore, the results of operations for the interim
periods presented are not indicative of the results to be expected
for all or any part of the balance of the current fiscal year.
Certain reclassifications have been made to previously issued
financial statements to conform to the current presentation.
<PAGE> 7
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements (continued)
June 30, 1995
(Unaudited)
Note 2. Cash Flows
Supplemental disclosures of cash flow information for the nine
months ended June 30 are as follows (in thousands):
1995 1994
---- ----
Cash paid during the period for:
Interest (net of amount capitalized) $2,009 $2,043
Income taxes, net of refunds 737 1,449
In preparing the accompanying condensed consolidated statements
of cash flows, all highly liquid investments having maturities of
three months or less were considered cash equivalents.
Note 3. Commitments and Contingencies
For a discussion of commitments and contingencies, please refer to
Footnote 10 in the Company's 1994 Annual Report to Shareholders.
<PAGE> 8
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
June 30, 1995
Results of Operations
- ---------------------
The loss applicable to common stock decreased by $491,000 to
$(1,487,000), or $(0.47) per share, for the three months ended
June 30, 1995, from $(1,978,000), or $(0.63) per share, in 1994.
For the nine months ended June 30, 1995, earnings applicable to
common stock were $6,740,000, or $2.13 per share compared to
$8,548,000, or $2.74 per share for the nine months ended June 30,
1994. For the twelve months ended June 30, 1995, earnings
applicable to common stock were $3,617,000, or $1.15 per share
compared to $5,835,000, or $1.88 per share in the prior period.
Temperatures for the three-month period ended June 30, 1995 were
colder when compared to both normal and the prior three-month
period. Temperatures for the nine and twelve-month periods ended
June 30, 1995 were significantly warmer when compared to normal and
compared to the prior respective periods. The following chart
discloses degree day data as recorded at the U.S. weather station
in Concord, New Hampshire, comparing actual degree days to the
previous period and to normal. Due to the size and topographical
variations of ENGI's service territory, weather conditions vary.
Concord, New Hampshire weather data is considered to be
representative of the territory.
Actual Actual Change vs. Change vs.
06-30-95 06-30-94 Normal Previous Period Normal
-------- -------- ------ --------------- ----------
3 months 1,052 956 1,017 10.0 % 3.4 %
9 months 6,554 7,612 7,247 (13.9)% (9.6)%
12 months 6,819 7,862 7,525 (13.3)% (9.4)%
Quarterly Comparison
- --------------------
The decline in the loss for the period resulted primarily from a
$498,000 or 12.5% increase in margin earned from utility natural
gas operations. Firm sendout increased 3.5% as the weather was 10%
colder than the same quarter last year and the average number of
firm customers increased 2%. Transportation margin recorded during
the current quarter was approximately $104,000. Additionally,
operating revenue was impacted by the repeal in June 1994 of the
franchise tax assessed on sales of natural gas. The franchise tax
was recovered through rates and amounted to $118,000 in the prior
quarter.
The margin from retail propane operations increased $48,000, or
6.2%, from the prior period. The average number of propane
customers increased nearly 11.8%, serving to increase the volume of
gallons sold by 7.3%.
<PAGE> 9
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1995
Operations and maintenance expenses decreased 4.7% due mainly to a
reduction in labor costs and continuing cost containment efforts in
areas of operations and administration.
The decrease in taxes other than income taxes was attributable
primarily to the elimination of the state utility franchise tax
assessed on the sales of natural gas which was partially offset by
an increase in property tax expense. The franchise tax was
permitted as a credit against the New Hampshire Business Profits
Tax ("NHBPT"). With its repeal, ENGI recorded a NHBPT credit
during the period. A decrease in the Federal income tax credit
correlating to the reduction in the pre-tax loss for the quarter
was partially offset by the recording of the NHBPT credit.
The increase in other interest expense is primarily due to interest
related to deferred gas costs. Refunds received in 1994 and 1995
totaling $6.2 million from the Tennessee Gas Pipeline Company
("Tennessee") are being returned to firm gas customers, along with
interest, through the cost of gas adjustment.
Nine-Month Comparison
- ---------------------
For the nine-month period presented, the weather was 13.9% warmer
than the same period last year resulting in a decrease in firm
sendout of nearly 12%. Margin earned from utility natural gas
operations decreased $1,857,000 or 5.7%. In addition, gross
utility revenues declined $761,000 due to the repeal of the
franchise tax. Also, margin earned on 280-day sales is now
returned to customers through the cost of gas adjustment and does
not impact profitability. The 280-day margin recorded in the prior
period was approximately $193,000. Transportation margin recorded
during the current period was $631,000.
The average number of retail propane customers increased 11.6%.
However, gallons sold decreased 2.9% due to the warmer temperatures
and a decrease in the margin per gallon sold of approximately 2.2%.
The margin from retail propane operations decreased $214,000 or 5%.
Operations and maintenance expenses decreased 4.7%. Reductions in
labor costs, bad debt expense, insurance expense and other cost
saving efforts were achieved during the nine-month period.
The decrease in taxes other than income taxes was attributable
primarily to the elimination of the franchise tax, which was
partially offset by higher property tax assessments made by cities
and towns. The decrease in Federal and state income tax expense
results from a decrease in Federal income tax expense correlating
with the decrease in pre-tax earnings, which was partially offset
by the recording of the NHBPT.
<PAGE> 10
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1995
Other interest expense increased by $398,000, mainly because of
interest on deferred gas cost balances. This was a result of the
net impact in the current period of the Tennessee refunds received
in 1994 and 1995 due to customers. In addition, interest on the
prior period deferred gas cost balances was impacted by the
recovery of take-or-pay gas costs due from customers.
Twelve-Month Comparison
- -----------------------
For the twelve-month period presented, margin earned from utility
natural gas operations decreased by $1,634,000, or 4.7%, from the
prior year. Temperatures were approximately 13.3% warmer than the
prior year, resulting in a decrease in firm sendout of 10.5%. Gross
utility revenues decreased by $826,000 due to the repeal of the
franchise tax. Also, the 280-day margin recorded in the prior
period was $302,000. Transportation margin recorded during the
current period was $631,000.
Despite the significantly warmer temperatures, retail propane
operation gallons sold decreased less than 1% during the twelve-
month period as the average number of customers increased 13.2%.
Margin decreased $111,000 or 2.4% during the period.
Operations and maintenance expenses decreased 2.2% due to reduction
in salaries and wages expense, bad debt expense, insurance expense
and other operating expenses.
The decrease in taxes other than income taxes was attributable
primarily to the elimination of the franchise tax, which was
partially offset by higher property tax assessments made by cities
and towns. The net impact of the NHBPT expense incurred during the
period and a reduction in pre-tax earnings resulted in the decrease
in Federal and state income tax expense for the period.
Other interest expense increased by $494,000 mainly because of
interest on the net impact of the Tennessee refunds and the
recovery of take-or-pay gas costs flowing through the cost of gas
adjustment.
Capital Resources and Liquidity
- -------------------------------
The Company's major capital requirements result from normal
replacements and efforts to improve the efficiency of existing
plant and serve additional customers. For the nine months ended
June 30, 1995, capital expenditures totaled approximately $5.1
million.
Cash flow patterns reflect the seasonality of the Company's
business. The greatest demand for cash is in the fall and early
<PAGE> 11
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1995
winter as construction projects are brought to completion and
during the winter as accounts receivable balances grow.
Capital expenditures and working capital requirements were financed
by internally generated funds and supplemented by short-term bank
borrowings and proceeds from the Dividend Reinvestment and Stock
Purchase Plan ("DRIP"). For the nine months ended June 30, 1995,
the Company sold through the DRIP approximately 38,700 shares of
its $1.00 par value common stock with net proceeds of approximately
$616,700. At June 30, 1995, the Company had unsecured bank lines
of credit of $13 million, all of which was available.
Construction expenditures for fiscal 1995 are expected to be
approximately $8 million. Construction expenditures, long-term
debt repayments and working capital requirements will continue to
be funded through cash generated by operations supplemented by
available lines of credit and additional equity obtained through
the DRIP.
During 1994 and 1995, ENGI received refunds totaling $6.2 million
from Tennessee resulting from rate case settlements with the
Federal Energy Regulatory Commission ("FERC"). The refunds have
been recorded in deferred gas costs and are being returned to firm
gas customers through the operation of the cost of gas adjustment
mechanism. The receipt of the refunds has reduced the requirements
to borrow under the short-term lines of credit.
Future financing requirements are subject to the amount and timing
of internally generated funds, rate relief, sales volumes, construction
requirements, regulatory actions and market conditions.
FERC Order 636
- --------------
Accrued transition cost charges from ENGI's pipeline gas supplier
resulting from FERC Order 636 are $1,329,000 at June 30, 1995 and
are being recovered through the cost of gas adjustment mechanism.
Additional transition costs are expected to range from $1.3 million
to $4.4 million.
Environmental Matters
- ---------------------
ENGI and certain of its predecessors owned or operated facilities
for the manufacture of gas, a process used through the mid 1900's
which produced byproducts that may be considered contaminated or
hazardous under current law and some of which may still be present
at the sites of such facilities. A site in Concord, New Hampshire
has been investigated and partially remediated, and a private party
has requested ENGI's participation in investigation of another
site. The Company will accrue environmental investigation and
<PAGE> 12
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1995
clean-up costs when it is probable that a liability exists and the
amount or range of amounts is reasonably certain. The Company will
pursue recovery of such costs through various means, including
regulatory relief and claims against other contributing parties.
Disposal of the contents of the gasholder situated on the former
gas manufacturing site in Concord, New Hampshire has been
completed. Total costs amounted to approximately $3.5 million and
are recorded in deferred charges at June 30, 1995. Recovery of
costs began on July 1, 1995 for a seven-year period without return
on the unamortized balance.
Initial sampling and analysis of certain compounds identified at
various locations in the area of the Concord site has been
completed. Costs of $25,000 have been recorded in deferred charges
at June 30, 1995. Additional testing is expected to begin
August 1, 1995.
ENGI is unable to predict at this time the magnitude of any
liability that may be imposed on it for the cost of additional
studies or the performance of remedial action in connection with
the Concord site. ENGI will pursue recovery from insurance
carriers and claims against any other responsible parties seeking
to ensure that they contribute appropriately to reimburse ENGI for
any costs incurred. ENGI intends to seek approval of a rate
recovery method at such time that it has determined the extent of
the contamination and has received recommendations with regards to
remediation.
PART II. OTHER INFORMATION
Items 1, 2, 3, 4 and 5 are not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 - Financial Data Schedule.
(Submitted only in electronic format to the
Securities and Exchange Commission)
(b) Reports on Form 8-K:
The Company did not file any reports on Form 8-K during
the quarter ended June 30, 1995.
<PAGE> 13
ENERGYNORTH, INC.
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.
EnergyNorth, Inc.
----------------
(Registrant)
Date: July 26, 1995 DAVID A. SKRZYSOWSKI
---------------------------------
David A. Skrzysowski, duly authorized
Vice President & Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ENERGYNORTH, INC. CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 1995 AND
CONDENSED CONSOLIDATED STATEMENT OF INCOME AND STATEMENT OF CASH FLOWS FOR THE
NINE MONTHS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> JUN-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 86,828
<OTHER-PROPERTY-AND-INVEST> 8,067<F1>
<TOTAL-CURRENT-ASSETS> 22,156
<TOTAL-DEFERRED-CHARGES> 7,019
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 124,070
<COMMON> 3,182
<CAPITAL-SURPLUS-PAID-IN> 29,369
<RETAINED-EARNINGS> 12,864
<TOTAL-COMMON-STOCKHOLDERS-EQ> 45,415
0
0
<LONG-TERM-DEBT-NET> 32,524
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 2,105
0
<CAPITAL-LEASE-OBLIGATIONS> 326
<LEASES-CURRENT> 272
<OTHER-ITEMS-CAPITAL-AND-LIAB> 43,428
<TOT-CAPITALIZATION-AND-LIAB> 124,070
<GROSS-OPERATING-REVENUE> 71,358
<INCOME-TAX-EXPENSE> 3,780
<OTHER-OPERATING-EXPENSES> 58,397
<TOTAL-OPERATING-EXPENSES> 62,177
<OPERATING-INCOME-LOSS> 9,181
<OTHER-INCOME-NET> 800
<INCOME-BEFORE-INTEREST-EXPEN> 9,981
<TOTAL-INTEREST-EXPENSE> 3,241
<NET-INCOME> 6,740
0
<EARNINGS-AVAILABLE-FOR-COMM> 6,740
<COMMON-STOCK-DIVIDENDS> 2,652
<TOTAL-INTEREST-ON-BONDS> 2,852<F2>
<CASH-FLOW-OPERATIONS> 14,697
<EPS-PRIMARY> $2.13
<EPS-DILUTED> $0.00
<FN>
<F1>NET OF ACCUMULATED DEPRECIATION OF $7.219 MILLION
<F2>$2.852 MILLION REPRESENTS THE FORECASTED ANNUAL INTEREST ON BONDS FOR THE
FISCAL YEAR ENDING SEPTEMBER 30, 1995. ACTUAL INTEREST ON BONDS FOR THE NINE
AND TWELVE MONTHS ENDED JUNE 30, 1995 WAS $2.158 MILLION AND $2.884 MILLION,
RESPECTIVELY.
</FN>
</TABLE>
