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, 1996
Commission File Number 1-11441
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 3,229,364 shares of $1.00 par value common
stock outstanding on July 24, 1996, the filing date of this
Report.
An exhibit index appears on Page 13.
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Assets
(Unaudited, except for September 30, 1995 data)
(Thousands of dollars)
June 30, September 30,
1996 1995 1995
-------------------- -------------
<S> <C> <C> <C>
Property:
Utility plant, at cost $133,198 $128,131 $129,895
Accumulated depreciation and amortization 44,137 41,303 41,452
-------------------- -------------
Net utility plant 89,061 86,828 88,443
Net nonutility property, at cost 7,781 8,067 7,989
-------------------- -------------
Net property 96,842 94,895 96,432
-------------------- -------------
Current assets:
Cash and temporary cash investments 1,187 6,982 575
Accounts receivable (net of allowances of
$1,287, $980 and $950, respectively) 4,670 3,310 2,171
Unbilled revenues 606 802 586
Deferred gas costs 2,112 - -
Inventories, at average cost:
Materials and supplies 1,696 1,600 1,624
Supplemental gas supplies 4,627 5,485 8,074
Prepaid and deferred taxes 1,415 2,273 1,671
Recoverable FERC 636 transition costs 1,733 1,329 1,733
Prepaid expenses and other 479 375 1,341
-------------------- -------------
Total current assets 18,525 22,156 17,775
-------------------- -------------
Deferred charges:
Regulatory asset - income taxes 2,401 2,370 2,401
Recoverable environmental costs 6,500 3,603 3,741
Other deferred charges 334 1,046 988
-------------------- -------------
Total deferred charges 9,235 7,019 7,130
-------------------- -------------
Total Assets $124,602 $124,070 $121,337
==================== =============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
2
<PAGE> 3
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Stockholders' Equity and Liabilities
(Unaudited, except for September 30, 1995 data)
(Thousands of dollars)
<TABLE>
June 30, September 30,
1996 1995 1995
------------------ -------------
<S> <C> <C> <C>
Capitalization:
Common stockholders' equity:
Common stock - par value of $1 per
share, 10,000,000 shares authorized;
3,229,562, 3,182,360 and 3,196,162
shares issued and outstanding,
respectively $ 3,230 $ 3,182 $ 3,196
Amount in excess of par 30,149 29,369 29,583
Retained earnings 15,223 12,864 9,335
------------------ -----------
Total common stockholders' equity 48,602 45,415 42,114
Long-term debt 29,471 32,524 29,829
Capital lease obligations 78 326 274
------------------ -----------
Total capitalization 78,151 78,265 72,217
------------------ -----------
Current liabilities:
Notes payable to banks 2,000 - 1,750
Current portion of long-term debt 3,407 2,105 3,495
Current portion of capital lease
obligations 256 272 256
Inventory purchase obligation 2,966 4,271 7,130
Accounts payable 5,729 4,563 4,768
Deferred gas costs - 6,374 5,645
Accrued interest 1,588 1,594 874
Accrued taxes 2,645 2,636 214
Accrued FERC 636 transition costs 1,733 1,329 1,733
Customer deposits, environmental
and other 4,574 2,384 2,353
------------------- ------------
Total current liabilities 24,898 25,528 28,218
------------------- ------------
Commitments and contingencies
Deferred credits:
Deferred income taxes 15,955 14,500 15,180
Unamortized investment tax credits 1,905 2,046 2,010
Regulatory liability - income taxes 1,405 1,534 1,497
Contributions in aid of construction
and other 2,288 2,197 2,215
------------------ ------------
Total deferred credits 21,553 20,277 20,902
------------------ ------------
Total Stockholders' Equity and Liabilities $124,602 $124,070 $121,337
=================== ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE> 4
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)
<TABLE>
Three Months Nine Months Twelve Months
1996 1995 1996 1995 1996 1995
-------------------- -------------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Total operating revenues $14,901 $13,678 $80,538 $71,358 $87,986 $79,982
-------------------- -------------------- --------------------
Operating expenses:
Cost of gas sold 9,350 8,147 40,524 36,133 44,353 41,034
Operations and maintenance 5,204 5,024 16,577 15,800 21,824 21,014
Depreciation and amortization 1,435 1,248 4,466 3,749 5,788 4,934
Taxes other than income taxes 999 833 3,030 2,715 4,067 3,527
Federal and state income taxes (983) (857) 5,013 3,780 3,206 2,386
-------------------- -------------------- --------------------
Total operating expenses 16,005 14,395 69,610 62,177 79,238 72,895
-------------------- -------------------- --------------------
Operating income (loss) (1,104) (717) 10,928 9,181 8,748 7,087
-------------------- -------------------- --------------------
Other income:
Net rentals, service and
appliance sales 210 190 676 614 889 767
Other, net 6 109 36 186 457 25
-------------------- -------------------- --------------------
Total other income 216 299 712 800 1,346 792
-------------------- -------------------- --------------------
Income (loss) before interest expense (888) (418) 11,640 9,981 10,094 7,879
-------------------- -------------------- --------------------
Interest expense:
Interest on long-term debt 753 795 2,273 2,392 3,042 3,195
Other interest 57 283 649 871 984 1,102
Interest charged to construction (5) (9) (11) (22) (23) (35)
-------------------- -------------------- --------------------
Total interest expense 805 1,069 2,911 3,241 4,003 4,262
-------------------- -------------------- --------------------
Earnings (loss) applicable to
common stock $(1,693) $(1,487) $ 8,729 $ 6,740 $ 6,091 $ 3,617
==================== ==================== ====================
Weighted average shares outstanding 3,221,670 3,172,852 3,210,740 3,158,646 3,204,605 3,152,244
==================== ==================== ====================
Earnings (loss) per share $ (.53) $ (0.47) $ 2.72 $ 2.13 $ 1.90 $ 1.15
==================== ==================== ====================
Dividends declared per share $ .31 $ 0.28 $ .89 $ 0.84 $ 1.17 $ 1.11
==================== ==================== ====================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE> 5
ENERGYNORTH, INC.
Condensed Consolidated Statements of Cash Flows
For the nine months ended June 30
(Unaudited)
(Thousands of dollars)
<TABLE>
1996 1995
------------------
<S> <C> <C>
Cash flows from operating activities:
Earnings applicable to common stock $ 8,729 $ 6,740
Noncash items:
Depreciation and amortization 5,055 4,343
Deferred taxes and investment tax credits, net 1,405 264
Changes in:
Accounts receivable, net (2,499) (1,049)
Unbilled revenues (20) (258)
Inventories 3,375 2,612
Prepaid expenses and other 862 851
Deferred gas costs (7,757) 1,638
Accounts payable 961 (285)
Accrued liabilities 93 415
Accrued/prepaid taxes 1,858 1,683
Payments for environmental costs and other 166 (2,257)
------------------
Net cash provided by operating activities 12,228 14,697
------------------
Cash flows from investing activities:
Additions to property (4,906) (5,090)
------------------
Cash flows from financing activities:
Issues of common stock 599 549
Issues of long-term debt 335 388
Change in notes payable to banks 250 -
Increase in inventory purchase obligation 4,328 3,869
Change in customer deposits and other 87 75
Cash dividends on common stock (2,841) (2,652)
Refunding requirements:
Repayment of long-term debt (780) (766)
Repayment of capital lease obligations (196) (204)
Repayment of inventory purchase obligation (8,492) (6,932)
------------------
Net cash used for financing activities (6,710) (5,673)
------------------
Net increase in cash and temporary cash investments 612 3,934
Cash and temporary cash investments, beginning of period 575 3,048
------------------
Cash and temporary cash investments, end of period $ 1,187 $ 6,982
==================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE> 6
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements
June 30, 1996
(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, 1996 and 1995 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, 1996
and 1995. 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, 1995.
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.
Reclassifications are made periodically to previously issued
financial statements to conform to the current year's
presentation.
6
<PAGE> 7
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements (continued)
June 30, 1996
(Unaudited)
Note 2. Cash Flows
Supplemental disclosures of cash flow information for the nine
months ended June 30, are as follows (in thousands):
1996 1995
---- ----
Cash paid during the period for:
Interest (net of amount capitalized) $2,052 $2,073
Income taxes 881 737
In preparing the accompanying condensed consolidated statements
of cash flows, all highly liquid investments having maturities of
three months or less when acquired were considered to be cash
equivalents.
Note 3. Commitments and Contingencies
For a discussion of commitments and contingencies, please refer
to Footnote 10 in the Company's 1995 Annual Report to
Shareholders.
7
<PAGE> 8
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
June 30, 1996
Results of Operations
- ---------------------
The loss applicable to common stock increased by $206,000 to
$(1,693,000), or $(.53) per share, for the three months ended
June 30, 1996, from $(1,487,000), or $(0.47) per share, in 1995.
The earnings applicable to common stock increased by $1,989,000
to $8,729,000, or $2.72 per share, for the nine months ended June
30, 1996, from $6,740,000, or $2.13 per share, in 1995. For the
twelve months ended June 30, 1996, earnings applicable to common
stock were $6,091,000, or $1.90 per share, compared to
$3,617,000, or $1.15 per share, in the prior period.
Temperatures for the nine and twelve-month periods ended June 30,
1996 were approximately normal and significantly colder than the
prior comparable 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.
06-30-96 06-30-95 Normal Previous Period Normal
-------- -------- ------ --------------- ----------
3 months 1,037 1,052 1,019 (1.43)% 1.77%
9 months 7,284 6,554 7,269 11.14 % .21%
12 months 7,564 6,819 7,547 10.93 % .23%
Quarterly Comparison
- --------------------
Total operating revenues increased $1.2 million or 8.9% for the
quarter ended June 30, 1996. Utility gas service revenues were
$13.1 million compared to $12.1 million in the prior period, an
8.3% increase. Although the weather was slightly warmer than the
same quarter last year, firm sendout increased 4.6%. Margin
earned from utility natural gas operations decreased $70,000 or
1.6%.
An increase in the average number of retail propane customers of
over 10% from the prior period contributed to an increase in the
volume of gallons sold of approximately 16%. Retail propane
operating revenues increased $318,000.
An increase in wages was the primary reason for the net increase
in operations and maintenance expenses for the quarter. The
depreciation and amortization increase reflects continued capital
additions to the distribution system and related facilities and
8
<PAGE> 9
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1996
amortization of environmental costs. Taxes other than income
taxes increased $166,000 due mostly to increases in property
taxes resulting from increased assessments and rates. The
decrease in Federal and state income tax expense correlates with
the decrease in pretax earnings for the quarter.
Other interest expense decreased $226,000 due to lower average
outstanding short-term borrowings resulting from undercollected
cost of gas adjustment balances for the quarter.
Nine-Month Comparison
- ---------------------
Total operating revenues increased $9.2 million, or almost 13%
for the nine months ended June 30, 1996. Utility gas service
revenues were $70.3 million compared to $63.3 million in the
prior period, an 11.1% increase. The weather was 11.1% colder
than the same nine months last year, contributing to an increase
in firm sendout of 13.6%. Margin earned from utility natural gas
operations increased almost $3.9 million or 13%.
An increase in the average number of retail propane customers of
almost 11% from the prior period and colder temperatures resulted
in an increase in the volume of gallons sold of 22%. Retail
propane operating revenues increased over $2.2 million.
The increase in operations and maintenance expenses for the
period is due primarily to increases in wages, bad debt expense
and insurance costs. The depreciation and amortization increase
reflects continued capital additions to the distribution system
and related facilities and amortization of environmental costs.
Taxes other than income taxes increased $315,000 due mostly to
increases in property taxes resulting from increased assessments
and rates. The increase in Federal and state income tax expense
correlates with the increase in pretax earnings for the period.
Other interest expense decreased $222,000 due to lower average
outstanding short-term borrowings resulting from undercollected
cost of gas adjustment balances for the period.
Twelve-Month Comparison
- -----------------------
For the twelve-month period ended June 30, 1996, total operating
revenues increased 10%, or $8 million. Utility gas service
revenue increased $5.7 million, an 8% increase. Firm gas sendout
increased 12.5% from the prior period as temperatures were almost
11% colder than 1995. Utility natural gas margin increased $3.8
million or 11.4%.
9
<PAGE> 10
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1996
The average number of retail propane customers increased over 11%
during the twelve-month period ended June 30, 1996. Substantial
customer growth combined with the colder temperatures resulted in
a 20.5% increase in gallons sold. Operating revenues increased
$2.3 million.
Operations and maintenance expenses increased almost 4% due to
increased wages, bad debt expense, and maintenance expenses.
Higher depreciation and amortization charges were a direct result of
plant additions and amortization of environmental costs. The
increase in taxes other than income taxes was attributable
primarily to higher property tax assessments made by cities and
towns. An increase in pre-tax earnings resulted in the increase
in Federal and state income tax expense for the period.
Total other income for the twelve months ended June 30, 1996
increased $554,000. A gain of $350,000 from the sale of railcars
in the current period combined with a $210,000 environmental
remediation expense in the prior period were the primary causes
for the change.
Other interest expense decreased by $118,000 due to lower average
outstanding short-term borrowings resulting from undercollected
cost of gas adjustment balances during the period.
Capital Resources and Liquidity
- -------------------------------
Cash flow patterns reflect the seasonality of the Company's
business. The greatest demand for cash is in the fall and
early winter as construction projects are brought to completion and
during the winter as accounts receivable balances grow. During
the spring and early summer months, a positive cash flow stream
is created as accounts receivable balances are collected. At
this time, inventories have been utilized and prepaid amounts,
mostly insurance, are being amortized. During the summer months,
supplemental gas supplies are replenished in preparation for the
winter heating season. At June 30, 1996, deferred gas cost is in
an undercollected position resulting from winter period activity.
The undercollected amounts will be recovered from firm gas
customers during the next winter period through the operation of
the cost of gas adjustment mechanism.
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, 1996, capital expenditures totaled approximately $5.1
million.
10
<PAGE> 11
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1996
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, 1996, the Company sold through the DRIP over 47,000 shares of
its $1.00 par value common stock with net proceeds of
approximately $827,000. At June 30, 1996, the Company had
unsecured bank lines of credit of $13.5 million, $11.5 million of
which was available.
Construction expenditures for fiscal 1996 are expected to be
approximately $9 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.
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
- --------------
FERC Order 636 allows interstate pipeline companies to recover
transition costs created as they buy out of long-term, fixed-
price gas contracts. Since the Company's supplier began direct
billing these costs on September 1, 1993 as a component of demand
charges, $5.5 million has been billed through June 30, 1996. The
Company is recovering transition costs through the cost of gas
adjustment. Based on current information, additional transition
costs are expected to total between $1.7 million and $6.4 million
and will be billed over a period of approximately one to three
years.
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 clean-up costs with respect to former gas
manufacturing sites and other environmental matters when it is
probable that a liability exists and the amount or range of
amounts is reasonably certain.
11
<PAGE> 12
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1996
Disposal of the contents of the gasholder situated on the former
gas manufacturing site in Concord, New Hampshire has been
completed. Total remediation costs amounted to approximately $3.5
million and were recorded in deferred charges. Recovery of costs
from customers began on July 1, 1995 and will extend over a seven-
year period. The unamortized balance is excluded from rate base.
A Remedial Action Plan that analyzes and recommends a remedial
action for a portion of the Concord site was submitted for review
to the New Hampshire Department of Environmental Services
("NHDES"). The NHDES approved the Company's Remedial Action Plan
on July 11, 1996. The estimated cost of the remedial action
proposed by the Company ranges from $2.8 million to $5.5 million,
and the Company has recorded $2.8 million at June 30, 1996 in
deferred charges.
The Company is pursuing recovery from its insurance carriers as
well as from insurance carriers of its predecessors with respect
to the Concord site. In addition, the Company is pursuing
recovery against an entity that the Company alleges owned or
operated the manufacturing gas plant during the late 1800's and
early 1900's.
The Company has held discussions with another utility regarding a
site assessment and cost sharing of investigation costs
concerning a former manufactured gas site in Laconia, New
Hampshire. The Company has entered into an agreement, without
admitting liability, under which it will share site
characterization costs with the other utility. A site
investigation began in March 1996. The Company's share of costs
for site investigation and a report to the NHDES is expected to
total $88,000. The Company 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 Laconia site.
The Company will pursue recovery from insurance carriers and
claims against any other responsible parties seeking to ensure
that they contribute approximately to reimburse the Company for
any costs incurred. The Company intends to seek approval of rate
recovery methods with respect to environmental matters at such
time that it has determined the extent of contamination and has
received recommendations with regards to remediation.
12
<PAGE> 13
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
June 30, 1996
PART II. OTHER INFORMATION
Items 1-5 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:
None
13
<PAGE> 14
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 24, 1996 /s/ DAVID A. SKRZYSOWSKI
-------------- -------------------------------------
David A. Skrzysowski, duly authorized
Vice President & Controller
(Principal Accounting Officer)
14
<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, 1996 and
condensed consolidated statement of income and statement of cash flows for the
nine months ended June 30, 1996 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-30-1996
<PERIOD-END> JUN-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 89,061<F1>
<OTHER-PROPERTY-AND-INVEST> 7,781<F2>
<TOTAL-CURRENT-ASSETS> 18,525
<TOTAL-DEFERRED-CHARGES> 9,235
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 124,602
<COMMON> 3,230
<CAPITAL-SURPLUS-PAID-IN> 30,149
<RETAINED-EARNINGS> 15,223
<TOTAL-COMMON-STOCKHOLDERS-EQ> 48,602
0
0
<LONG-TERM-DEBT-NET> 29,471
<SHORT-TERM-NOTES> 2,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 3,407
0
<CAPITAL-LEASE-OBLIGATIONS> 78
<LEASES-CURRENT> 256
<OTHER-ITEMS-CAPITAL-AND-LIAB> 40,788
<TOT-CAPITALIZATION-AND-LIAB> 124,602
<GROSS-OPERATING-REVENUE> 80,538
<INCOME-TAX-EXPENSE> 5,013
<OTHER-OPERATING-EXPENSES> 64,597
<TOTAL-OPERATING-EXPENSES> 69,610
<OPERATING-INCOME-LOSS> 10,928
<OTHER-INCOME-NET> 712
<INCOME-BEFORE-INTEREST-EXPEN> 11,640
<TOTAL-INTEREST-EXPENSE> 2,911
<NET-INCOME> 8,729
0
<EARNINGS-AVAILABLE-FOR-COMM> 8,729
<COMMON-STOCK-DIVIDENDS> 2,841
<TOTAL-INTEREST-ON-BONDS> 2,721<F3>
<CASH-FLOW-OPERATIONS> 12,228
<EPS-PRIMARY> $2.72
<EPS-DILUTED> $0.00
<FN>
<F1>Net of accumulated depreciation of $44,137
<F2>Net of accumulated depreciation of $8,244
<F3>$2,721 represents the forecasted annual interest on bonds for the fiscal year
ending September 30, 1996. Actual interest on bonds for the nine months ended
June 30, 1996 was $2,060.
</FN>
</TABLE>
