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 December 31, 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 3,209,116 shares of $1.00 par value common
stock outstanding on January 25, 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)
<CAPTION>
December 31, September 30,
1995 1994 1995
----------------- -------------
<S> <C> <C> <C>
Property:
Utility plant, at cost $131,234 $126,485 $129,895
Accumulated depreciation and
amortization 42,320 39,448 41,452
------------------ -------------
Net utility plant 88,914 87,037 88,443
Net nonutility property, at cost 8,017 8,332 7,989
------------------ -------------
Net property 96,931 95,369 96,432
------------------ -------------
Current assets:
Cash and temporary cash investments 881 507 575
Accounts receivable (net of allow-
ances of $1,082, $1,084 and $950,
respectively) 9,406 6,224 2,171
Unbilled revenues 3,363 3,179 586
Inventories, at average cost:
Materials and supplies 1,615 1,628 1,624
Supplemental gas supplies 6,023 7,113 8,074
Prepaid and deferred taxes 2,136 1,763 1,671
Recoverable FERC 636 transition costs 1,733 2,540 1,733
Prepaid expenses and other 931 1,035 1,341
----------------- -------------
Total current assets 26,088 23,989 17,775
----------------- -------------
Deferred charges:
Regulatory asset - income taxes 2,401 2,370 2,401
Recoverable environmental costs 3,698 2,927 3,741
Other deferred charges 814 985 988
----------------- -------------
Total deferred charges 6,913 6,282 7,130
----------------- -------------
Total Assets $129,932 $125,640 $121,337
================== =============
See accompanying notes to condensed consolidated financial statements.
2
</TABLE>
<PAGE> 3
<TABLE>
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Stockholders' Equity and Liabilities
(Unaudited, except for September 30, 1995 data)
(Thousands of dollars)
<CAPTION>
December 31, September 30,
1995 1994 1995
------------------ ------------
<S> <C> <C> <C>
Capitalization:
Common stockholders' equity:
Common stock - par value of $1 per
share, 10,000,000 shares authorized;
3,208,486, 3,153,387 and 3,196,162
shares issued and outstanding,
respectively $ 3,208 $ 3,153 $ 3,196
Amount in excess of par 29,782 29,035 29,583
Retained earnings 12,158 10,220 9,335
-------------------- ------------
Total common stockholders' equity 45,148 42,408 42,114
Long-term debt 29,745 33,029 29,829
Capital lease obligations 206 461 274
-------------------- ------------
Total capitalization 75,099 75,898 72,217
-------------------- ------------
Current liabilities:
Notes payable to banks 6,810 3,565 1,750
Current portion of long-term debt 3,438 2,076 3,495
Current portion of capital lease
obligations 256 272 256
Inventory purchase obligation 7,723 7,660 7,130
Accounts payable 6,957 6,520 4,768
Deferred gas costs 1,424 1,771 5,645
Accrued interest 1,581 1,591 874
Accrued taxes 1,526 906 214
Accrued FERC 636 transition costs 1,733 2,540 1,733
Customer deposits, environmental
and other 2,356 3,023 2,353
------------------- ------------
Total current liabilities 33,804 29,924 28,218
------------------- ------------
Commitments and contingencies
Deferred credits:
Deferred income taxes 15,330 13,926 15,180
Unamortized investment tax credits 1,975 2,116 2,010
Regulatory liability - income taxes 1,467 1,592 1,497
Contributions in aid of construction
and other 2,257 2,184 2,215
------------------- ------------
Total deferred credits 21,029 19,818 20,902
------------------- ------------
Total Stockholders' Equity and Liabilities $129,932 $125,640 $121,337
=================== ============
See accompanying notes to condensed consolidated financial statements.
3
</TABLE>
<PAGE> 4
<TABLE>
ENERGYNORTH, INC.
Condensed Consolidated Statements of Income
For the periods ended December 31
(Unaudited)
(Thousands of dollars except for per share amounts and shares outstanding)
<CAPTION>
Three Months Twelve Months
1995 1994 1995 1994
------------------- ------------------
<S> <C> <C> <C> <C>
Total operating revenues $25,976 $22,472 $82,310 $93,608
------------------- ------------------
Operating expenses:
Cost of gas sold 11,151 9,999 41,114 52,670
Operations and maintenance 5,556 5,737 20,865 21,837
Depreciation and amortization 1,457 1,251 5,277 4,878
Taxes other than income taxes 1,007 1,035 3,725 3,974
Federal and state income taxes 2,152 1,295 2,830 2,392
------------------- -------------------
Total operating expenses 21,323 19,317 73,811 85,751
------------------- -------------------
Operating income 4,653 3,155 8,499 7,857
------------------- -------------------
Other income:
Net rentals, service and
appliance sales 242 220 849 672
Other, net 7 45 569 8
------------------- -------------------
Total other income 249 265 1,418 680
------------------- -------------------
Income before interest expense 4,902 3,420 9,917 8,537
------------------- -------------------
Interest expense:
Interest on long-term debt 764 800 3,125 3,255
Other interest 389 300 1,295 804
Interest charged to construction (2) (4) (33) (26)
------------------- -------------------
Total interest expense 1,151 1,096 4,387 4,033
------------------- -------------------
Earnings applicable to
common stock $ 3,751 $ 2,324 $ 5,530 $ 4,504
=================== ===================
Weighted average shares outstanding 3,199,556 3,144,600 3,179,478 3,129,402
=================== ===================
Earnings per share $ 1.17 $ 0.74 $ 1.74 $ 1.44
=================== ===================
Dividends declared per share $ 0.29 $ 0.28 $ 1.13 $ 1.09
===================== ===================
See accompanying notes to condensed consolidated financial statements.
4
</TABLE>
<PAGE> 5
<TABLE>
ENERGYNORTH, INC.
Condensed Consolidated Statements of Cash Flows
For the three months ended December 31
(Unaudited)
(Thousands of dollars)
<CAPTION>
1995 1994
------------------
<S> <C> <C>
Cash flows from operating activities:
Earnings applicable to common stock $ 3,751 $ 2,324
Noncash items:
Depreciation and amortization 1,656 1,448
Deferred taxes and investment tax credits, net 313 217
------------------
Total funds provided by operating activities 5,720 3,989
Changes in:
Accounts receivable, net (7,235) (3,963)
Unbilled revenues (2,777) (2,635)
Inventories 2,060 956
Prepaid expenses and other 410 191
Deferred gas costs (4,221) (2,965)
Accounts payable 2,189 1,672
Accrued liabilities 676 778
Accrued/prepaid taxes 619 64
Payments for environmental costs and other (36) (1,198)
------------------
Net cash used for operating activities (2,595) (3,111)
------------------
Cash flows from investing activities:
Additions to property (1,902) (2,727)
------------------
Cash flows from financing activities:
Issues of common stock 211 186
Issues of long-term debt 10 235
Change in notes payable to banks 5,060 3,565
Change in inventory purchase obligation 593 326
Change in customer deposits 34 134
Change in contributions in aid of construction
and other 42 (63)
Cash dividends on common stock (928) (880)
Refunding requirements:
Repayment of long-term debt (151) (137)
Repayment of capital lease obligations (68) (69)
------------------
Net cash provided by financing activities 4,803 3,297
------------------
Net increase (decrease) in cash and temporary
cash investments 306 (2,541)
Cash and temporary cash investments, beginning
of period 575 3,048
------------------
Cash and temporary cash investments, end of period $ 881 $ 507
==================
See accompanying notes to condensed consolidated financial statements.
5
</TABLE>
<PAGE> 6
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements
December 31, 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 December 31, 1995 and 1994 and the results of
operations for the three and twelve months then ended and
statements of cash flows for the three months ended December 31,
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, 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)
December 31, 1995
(Unaudited)
Note 2. Cash Flows
Supplemental disclosures of cash flow information for the three
months ended December 31, are as follows (in thousands):
1995 1994
==== ====
Cash paid during the period for:
Interest (net of amount capitalized) $268 $186
Income taxes 200 7
In preparing the accompanying condensed consolidated statements
of cash flows, all highly liquid investments having maturities of
three months or less 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
December 31, 1995
Results of Operations
- ---------------------
The earnings applicable to common stock increased by $1,427,000
to $3,751,000, or $1.17 per share, for the three months ended
December 31, 1995, from $2,324,000, or $.74 per share, in 1994.
For the twelve months ended December 31, 1995, earnings
applicable to common stock were $5,530,000, or $1.74 per share,
compared to $4,504,000, or $1.44 per share, in the prior period.
Temperatures for the three-month period ended December 31, 1995
were slightly colder than normal and were significantly colder
than the prior comparable period. During the twelve-month period
ended December 31, 1995, temperatures were warmer than normal and
warmer than the prior comparable period. 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.
12-31-95 12-31-94 Normal Previous Period Normal
--------- -------- ------ --------------- ---------
3 months 2,613 2,237 2,599 16.8% 0.5%
12 months 7,210 7,486 7,510 -3.7% -4.0%
Quarterly Comparison
- --------------------
Total operating revenues increased $3,504,000, or 15.6%, for the
quarter ended December 31, 1995. Utility gas service revenues
were $22.7 million compared to $20 million in the prior period, a
13.5% increase. The weather was 16.8% colder than the same
quarter last year, contributing to an increase in firm sendout of
19%. Margin earned from utility natural gas operations increased
$1,929,000 or 17.8%.
An increase in the average number of retail propane customers of
over 11% from the prior period and colder temperatures resulted
in an increase in the volume of gallons sold of almost 32%.
Retail propane operating revenues increased 31.7% and resulting
margin increased $411,000.
While wages have increased, reductions in the workforce and lower
maintenance costs and bad debt expenses were the primary reasons
for the net decrease 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 amortization of remediation costs. The
increase in Federal and state income tax expense correlates with
the increase in pretax earnings for the quarter.
8
<PAGE> 9
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
December 31, 1995
Other interest expense increased primarily due to an increase in
the average short-term borrowings outstanding for the quarter.
Twelve-Month Comparison
- -----------------------
For the twelve-month period ended December 31, 1995, total
operating revenue decreased 12.1%, or $11.3 million. Utility gas
service revenue decreased $12.1 million, a 14.3% decrease. The
total volume of gas sendout increased 1.0% from the prior period
despite temperatures that were 3.7% warmer than 1994 and 4%
warmer than normal. Revenue from firm customers, including firm
transportation customers, decreased $11.5 million as a result of
the pass through of lower purchased gas costs ($11.1 million) and
lower sales volumes due to the warmer weather ($400,000). Firm
sendout volume declined less than 1% during the period which
resulted in no significant change in utility margin.
The average number of retail propane customers increased 11.8%
during the twelve-month period ended December 31, 1995. Propane
gallons sold increased 6.2% as the warmer temperatures somewhat
tempered the impact of the substantial customer growth.
Operating revenues increased 8.6% and resulting margin increased
$236,000.
Operations and maintenance expenses decreased 4.5% due to lower
bad debt expense, insurance expense and other operating expenses.
Higher depreciation and amortization charges were a direct
result of plant additions and amortization of remediation costs.
The decrease in taxes other than income taxes was attributable
primarily to the repeal of the state franchise tax, which was partially
offset by 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 December 31, 1995
increased $738,000. 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 caused the change.
Other interest expense increased by $491,000 as a result of a
combination of higher average outstanding short-term borrowings
during the period and higher interest rates.
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 three months ended
December 31, 1995, capital expenditures totaled approximately
$1.9 million.
9
<PAGE> 10
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
December 31, 1995
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.
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 three months ended
December 31, 1995, the Company sold through the DRIP over 12,000
shares of its $1.00 par value common stock with net proceeds of
approximately $211,000. At December 31, 1995, the Company had
unsecured bank lines of credit of $13.5 million, $6,690,000 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.
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
- --------------
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, $4.8 million has been billed through December 31, 1995.
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.
10
<PAGE> 11
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
December 31, 1995
Environmental Matters
- ---------------------
ENGI and certain of its predecessors owned or operated facilities
for the manufacture of gas, a process used through the mid
1900'swhich 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
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 remediation costs amounted to approximately $3.5
million and have been 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.
Initial sampling and analysis of certain compounds identified at
various locations in the area of the Concord site has been
completed. Costs of approximately $167,000 have been recorded in
deferred charges at December 31, 1995. Field work for a
hydrogeologic characterization was completed and a Hydrogeologic
Characterization and Risk Evaluation Report was submitted for
review to the New Hampshire Department of Environmental Services
("NHDES") in November 1995. The Company is unable to predict the
magnitude of any liability that may be imposed on it for the cost
of any additional studies or the performance of remedial action
in connection with the Concord site until the NHDES has reviewed
the Report and issued a decision on what, if any, remedial action
will be required.
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 scope of the study and the investigation cost
sharing agreement have not been finalized such that the Company
is unable to predict at this time the magnitude of any liability
that may be imposed on it for the cost of site assessment,
additional studies or the performance of remedial action in
connection with the Laconia site.
11
<PAGE> 12
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
December 31, 1995
The Company will pursue recovery from insurance carriers and
claims against any other responsible parties seeking to ensure
that they contribute appropriately to reimburse the Company for
any costs incurred. The Company 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 at the Concord and Laconia sites.
12
<PAGE> 13
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (continued)
December 31, 1995
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 December 31, 1995.
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: January 26, 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 ENERGY-
NORTH, INC. CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1995 AND
CONDENSED CONSOLIDATED STATEMENT OF INCOME AND STATEMENT OF CASH FLOWS FOR THE
THREE MONTHS ENDED DECEMBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFER-
ENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 88,914<F1>
<OTHER-PROPERTY-AND-INVEST> 8,017<F2>
<TOTAL-CURRENT-ASSETS> 26,088
<TOTAL-DEFERRED-CHARGES> 6,913
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 129,932
<COMMON> 3,208
<CAPITAL-SURPLUS-PAID-IN> 29,782
<RETAINED-EARNINGS> 12,158
<TOTAL-COMMON-STOCKHOLDERS-EQ> 45,148
0
0
<LONG-TERM-DEBT-NET> 29,745
<SHORT-TERM-NOTES> 6,810
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 3,438
0
<CAPITAL-LEASE-OBLIGATIONS> 206
<LEASES-CURRENT> 256
<OTHER-ITEMS-CAPITAL-AND-LIAB> 44,329
<TOT-CAPITALIZATION-AND-LIAB> 129,932
<GROSS-OPERATING-REVENUE> 25,976
<INCOME-TAX-EXPENSE> 2,152
<OTHER-OPERATING-EXPENSES> 19,171
<TOTAL-OPERATING-EXPENSES> 21,323
<OPERATING-INCOME-LOSS> 4,653
<OTHER-INCOME-NET> 249
<INCOME-BEFORE-INTEREST-EXPEN> 4,902
<TOTAL-INTEREST-EXPENSE> 1,151
<NET-INCOME> 3,751
0
<EARNINGS-AVAILABLE-FOR-COMM> 3,751
<COMMON-STOCK-DIVIDENDS> 928
<TOTAL-INTEREST-ON-BONDS> 2,721<F3>
<CASH-FLOW-OPERATIONS> (2,595)
<EPS-PRIMARY> $1.17
<EPS-DILUTED> $0.00
<FN>
<F1>NET OF ACCUMULATED DEPRECIATION OF $42,320.
<F2>NET OF ACCUMULATED DEPRECIATION OF $7,668.
<F3>$2,721 REPRESENTS THE FORECASTED ANNUAL INTEREST ON BONDS FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 1996. ACTUAL INTEREST ON BONDS FOR THE THREE MONTHS
ENDED DECEMBER 31, 1995 WAS $691.
</FN>
</TABLE>
