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, 1997
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 3,243,543 shares of $1.00 par value common
stock outstanding on July 24, 1997, the filing date of this
Report.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Assets
(Unaudited, except for September 30, 1996 data)
(Thousands of dollars)
June 30, September 30,
1997 1996 1996
---------- -------- -----------
<S> <C> <C> <C>
Property:
Utility plant, at cost $143,743 $133,198 $136,229
Accumulated depreciation and amortization 47,690 44,137 44,683
---------- -------- -----------
Net utility plant 96,053 89,061 91,546
Net nonutility property, at cost 7,526 7,781 7,748
---------- -------- -----------
Net property 103,579 96,842 99,294
---------- -------- -----------
Current assets:
Cash and temporary cash investments 992 1,187 770
Accounts receivable (net of allowances of
$1,378, $1,287 and $1,211 respectively) 6,706 4,670 2,068
Unbilled revenues 593 606 582
Deferred gas costs - 2,112 3,783
Inventories, at average cost:
Materials and supplies 1,657 1,696 1,590
Supplemental gas supplies 5,551 4,627 9,039
Prepaid and deferred taxes 1,434 1,415 1,603
Recoverable FERC 636 transition costs 1,514 1,733 1,733
Prepaid expenses and other 477 479 1,304
---------- -------- -----------
Total current assets 18,924 18,525 22,472
--------- -------- -----------
Deferred charges:
Regulatory asset - income taxes 2,401 2,401 2,401
Recoverable environmental costs 6,268 6,500 6,840
Other deferred charges 344 334 996
---------- -------- -----------
Total deferred charges 9,013 9,235 10,237
---------- -------- -----------
Total Assets $131,516 $124,602 $132,003
========== ======== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements
<TABLE>
<CAPTION>
ENERGYNORTH, INC.
Condensed Consolidated Balance Sheets
Stockholders' Equity and Liabilities
(Unaudited, except for September 30, 1996 data)
(Thousands of dollars)
June 30, September 30,
1997 1996 1996
--------- --------- -------------
<S> <C> <C> <C>
Capitalization:
Common stockholders' equity:
Common stock - par value of $1 per
share, 10,000,000 shares authorized;
3,243,543, 3,229,562 and 3,239,148
shares issued and outstanding, respectively $ 3,244 $ 3,230 $ 3,239
Amount in excess of par 30,428 30,149 30,342
Retained earnings 17,194 15,223 11,586
--------- --------- ------------
Total common stockholders' equity 50,866 48,602 45,167
Long-term debt 29,168 29,471 29,525
Capital lease obligations - 78 46
--------- --------- ------------
Total capitalization 80,034 78,151 74,738
--------- --------- ------------
Current liabilities:
Notes payable to banks 5,500 2,000 9,535
Current portion of long-term debt 2,145 3,407 2,090
Current portion of capital lease obligations 98 256 229
Inventory purchase obligation 4,101 2,966 7,867
Accounts payable 5,990 5,729 6,189
Deferred gas costs 2,476 - -
Accrued interest 1,064 1,588 838
Accrued and deferred taxes 2,877 2,645 1,642
Accrued FERC 636 transition costs 1,514 1,733 1,733
Customer deposits, environmental and other 3,148 4,574 5,062
--------- --------- ------------
Total current liabilities 28,913 24,898 35,185
--------- --------- ------------
Commitments and contingencies
Deferred credits:
Deferred income taxes 17,155 15,955 16,525
Unamortized investment tax credits 1,768 1,905 1,870
Regulatory liability - income taxes 1,284 1,405 1,374
Contributions in aid of construction and other 2,362 2,288 2,311
--------- --------- ------------
Total deferred credits 22,569 21,553 22,080
--------- --------- ------------
Total Stockholders' Equity and Liabilities $131,516 $124,602 $132,003
========= ========= ============
</TABLE>
The accompanying notes are an integral part of these financial statements
<TABLE>
<CAPTION>
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)
Three Months Nine Months Twelve Months
1997 1996 1997 1996 1997 1996
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total operating revenues $18,085 $14,901 $96,437 $80,538 $104,853 $87,986
--------- --------- --------- --------- --------- ---------
Operating expenses:
Cost of gas sold 12,118 9,350 56,653 40,524 61,070 44,353
Operations and maintenance 5,226 5,204 16,258 16,577 21,341 21,824
Depreciation and amortization 1,542 1,435 4,666 4,466 6,025 5,788
Taxes other than income taxes 988 999 2,946 3,030 3,862 4,067
Federal and state income taxes (936) (983) 5,038 5,013 3,660 3,206
--------- --------- --------- --------- --------- ---------
Total operating expenses 18,938 16,005 85,561 69,610 95,958 79,238
--------- --------- --------- --------- --------- ---------
Operating income (loss) (853) (1,104) 10,876 10,928 8,895 8,748
--------- --------- --------- --------- --------- ---------
Other income 200 216 688 712 883 1,346
--------- --------- --------- --------- --------- ---------
Income (loss) before interest expense (653) (888) 11,564 11,640 9,778 10,094
--------- --------- --------- --------- --------- ---------
Interest expense:
Interest on long-term debt 725 753 2,182 2,273 2,913 3,042
Other interest 198 52 759 638 893 961
--------- --------- --------- --------- --------- ---------
Total interest expense 923 805 2,941 2,911 3,806 4,003
--------- --------- --------- --------- --------- ---------
Net income (loss) $(1,576) $(1,693) $ 8,623 $ 8,729 $ 5,972 $ 6,091
========= ========= ========= ========= ========= =========
Weighted average shares outstanding 3,243,543 3,221,670 3,242,804 3,210,740 3,239,972 3,204,605
========= ========= ========= ========= ========= =========
Earnings (loss) per share $ (.49) $ (.53) $ 2.66 $ 2.72 $ 1.84 $ 1.90
========= ========= ========= ========= ========= =========
Dividends declared per share $ .32 $ .305 $ .93 $ .885 $ 1.235 $ 1.165
========= ========= ========= ========== ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements
<TABLE>
<CAPTION>
ENERGYNORTH, INC.
Condensed Consolidated Statements of Cash Flows
For the nine months ended June 30
(Unaudited)
(Thousands of dollars)
1997 1996
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 8,623 $ 8,729
Noncash items:
Depreciation and amortization 5,207 5,055
Deferred taxes and investment tax credits, net 438 1,405
Changes in:
Accounts receivable, net (4,638) (2,499)
Unbilled revenues (11) (20)
Inventories 3,421 3,375
Prepaid expenses and other 827 862
Deferred gas costs 6,258 (7,757)
Accounts payable (199) 961
Accrued liabilities 64 93
Accrued/prepaid taxes 1,403 1,858
Payments for environmental costs and other (759) 166
------- -------
Net cash provided by operating activities 20,634 12,228
------- -------
Cash flows from investing activities:
Additions to property (8,943) (4,906)
------- -------
Cash flows from financing activities:
Issues of common stock 90 599
Issues of long-term debt 508 335
Change in notes payable to banks (4,035) 250
Increase in inventory purchase obligation 4,239 4,328
Change in customer deposits and other (264) 87
Cash dividends on common stock (3,016) (2,841)
Refunding requirements:
Repayment of long-term debt (809) (780)
Repayment of capital lease obligations (177) (196)
Repayment of inventory purchase obligation (8,005) (8,492)
------- -------
Net cash used for financing activities (11,469) (6,710)
------- -------
Net increase in cash and temporary cash investments 222 612
Cash and temporary cash investments, beginning of period 770 575
------- -------
Cash and temporary cash investments, end of period $ 992 $ 1,187
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements
ENERGYNORTH, INC.
Notes to Condensed Consolidated Financial Statements
June 30, 1997
(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, 1997 and 1996 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, 1997
and 1996. 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, 1996.
The business of ENGI and ENPI is influenced by seasonal weather
conditions. The amount of gas sold and transported 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 and transported during the winter
months than is sold and transported 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.
Note 2. Cash Flows
Supplemental disclosures of cash flow information for the nine
months ended June 30, are as follows (in thousands):
1997 1996
------ ------
Cash paid during the period for:
Interest (net of amount capitalized) $2,386 $2,052
Income taxes 2,723 881
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 9 in the Company's 1996 Annual Report to
Shareholders.
ENERGYNORTH, INC.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
June 30, 1997
Results of Operations
Net loss for the three months ended June 30, 1997 was
$(1,576,000), or $(.49) per share, compared to $(1,693,000), or
$(.53) per share, in 1996. Net income decreased to $8,623,000,
or $2.66 per share, for the nine months ended June 30, 1997, from
$8,729,000, or $2.72 per share, in 1996. For the twelve months
ended June 30, 1997, net income was $5,972,000, or $1.84 per
share, compared to $6,091,000, or $1.90 per share, in the prior
period.
Temperatures for the three months ended June 30, 1997 were
significantly colder than normal and colder than the prior
comparable period. During the nine and twelve-month periods,
temperatures were slightly warmer than normal and warmer than the
prior comparable periods. The table below 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
the Company'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.
06-30-97 06-30-96 Normal Previous Period Normal
--------- -------- ------ --------------- ---------
3 months 1,166 1,037 1,020 12.4% 14.3%
9 months 7,159 7,284 7,231 (1.7)% (1.0)%
12 months 7,434 7,564 7,511 (1.7)% (1.0)%
Quarterly Comparison
Primarily as a result of weather and higher gas costs, total operating
revenues increased $3.2 million, or 21.4%, for the quarter ended
June 30, 1997. Utility gas service revenues were $16 million compared to
$13.1 million in the prior period, a 22.1% increase. Included in the
increase were higher purchased gas costs of $1.7 million that were passed
through the cost of gas adjustment ("CGA") for firm customers. Although
changes in the CGA rates affect operating revenues, they do not affect
total margin because the CGA is a tariff mechanism designed to provide
dollar-for-dollar recovery of gas costs. The weather was 12.4% colder
than the same quarter last year and growth in the average number of
firm customers was more than 2%. Consequently, firm sendout,
including transportation, increased 10.4%. Margin earned from
utility natural gas operations during the three month period
increased $242,000, or 5.6%.
Colder temperatures and an increase in the average number of
retail propane customers of over 8% from the prior period
resulted in a 6.3% increase in the volume of gallons sold.
Retail propane operating revenues increased $211,000 and gross
margin increased 10.5% from the same period last year.
While wage rates have increased, reductions in the work force and
overtime requirements were the primary reasons that operations
and maintenance expenses remained virtually unchanged from the
prior comparable period. Depreciation and amortization expenses
increased for the period as a result of capital additions and
amortization of environmental remediation costs. Total interest expense
increased 14.7% due to higher average outstanding short-term
borrowings.
Nine-Month Comparison
Total operating revenue increased $15.9 million, or 19.7%, for
the nine months ended June 30, 1997. Utility gas service
revenues were $84.8 million compared to $70.3 million in the
prior period, a 20.6% increase. Higher purchased gas costs of $15
million passed through the CGA was the primary reason for the
significant increase. Despite a 2% increase in the average
number of customers, warmer weather resulted in firm sendout,
including firm transportation, that was essentially unchanged
from the comparable period last year. Margin earned from utility
natural gas operations decreased $427,000, or 1.3%.
Retail propane gallons sold decreased 2.4% due to the warmer
weather, despite significant customer growth of almost 9%. For
the nine month period, retail propane operating revenue
increased $1.4 million as sales prices rose to meet the increase
in the cost of propane from suppliers.
Decreases in wages and related operating expense reductions were
the primary reasons for the net decrease in year-to-date
operations and maintenance expense. Continued capital additions
to the distribution system and amortization of environmental remediation
costs account for the increase in depreciation and amortization
expense.
Twelve-Month Comparison
Total operating revenues increased $16.9 million, or 19.2%, for
the twelve months ended June 30, 1997. Utility gas service
revenues were $92 million compared to $76.8 million in the prior
period, a 19.9% increase. Significantly higher revenues were
primarily due to $15.1 million of higher gas costs being passed
through the CGA. Firm sendout, including firm transportation,
increased only slightly as the 1.7% warmer weather offset the 2%
growth in the average number of customers. Margin earned from
utility natural gas operations was virtually the same as the
corresponding prior period.
The average number of retail propane customers increased nearly
9% for the twelve months ended June 30, 1997. Due to warmer
weather, however, propane gallons sold decreased 1.1%. As sales
prices increased to offset the rise in the cost of propane
charged by suppliers, operating revenues increased $1.6 million,
or 14.5%.
Reductions in the work force, other cost-saving initiatives and
workers' compensation insurance refunds were the main reasons for
the 2.2% decrease in operations and maintenance expenses for the
period. Higher depreciation and amortization charges were a
direct result of plant additions and amortization of environmental
remediation costs. Taxes other than income taxes decreased 5% due to
property tax abatements and a reduction in the public utility tax
assessment. Federal and state income taxes increased as a result
of a favorable resolution of certain tax issues in the prior
period.
Total other income decreased as a result of startup losses of
$135,000 incurred in two joint venture projects during the twelve
month period ended June 30, 1997. In addition, the prior period
includes a gain of $350,000 from the sale of railcars formerly
used to transport liquid propane.
Total interest expense decreased 4.9% during the twelve month
period due to a reduction in outstanding long-term debt and an increase in
interest to be collected from customers on the average deferred
gas cost undercollected balance.
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, 1997, deferred gas cost was in
an overcollected position resulting from prior summer period
activity, whereas, the deferred gas cost was in an undercollected
position at June 30, 1996. The overcollected amounts will be returned to
customers during the current summer period through the cost of
gas adjustment mechanism.
The Company's major capital requirements result from normal
replacements and efforts to improve the efficiency of the
existing plant and to serve additional customers. For the nine
months ended June 30, 1997, capital expenditures totaled
approximately $8.9 million.
Capital expenditures and working capital requirements were
financed by internally generated funds and supplemented by short-
term bank borrowings. At June 30, 1997, the Company had
unsecured bank lines of credit of $15.2 million, $5.5 million of
which was outstanding.
Construction expenditures for fiscal 1997 are expected to total
approximately $13.2 million. Included in the 1997 construction
expenditures is a major main extension project to serve Milford,
New Hampshire. Construction expenditures, payment of dividends,
long-term debt repayments, environmental remediation and working
capital requirements will continue to be funded through cash
generated by operations supplemented by available lines of
credit. Additional permanent financing is planned and is likely to
be issued in the fall of 1997.
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, $7.6 million has been billed through June 30, 1997. The
Company has recorded additional transition costs of approximately
$1.5 million that will be billed over a period of 18 months. The
Company is recovering transition costs through the cost of gas
adjustment.
Environmental Matters
The Company and certain of its predecessors owned or operated
several facilities for the manufacture of gas from coal, a process used
through the mid-1900's that produced by-products that may be
considered contaminated or hazardous under current law, and some
of which may still be present at such facilities. The Company
accrues environmental investigation and clean-up costs with
respect to former manufacturing sites and other environmental
matters when it is probable that a liability exists and the
amount or range of amounts is reasonably certain.
One former manufactured gas facility in Concord, New Hampshire has
been investigated and partially remediated. Disposal of the
contents of the gasholder situated at this former gas
manufacturing facility 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 of $2.5 million at June 30, 1997 is excluded
from rate base.
The New Hampshire Department of Environmental Services ("NHDES") has
required remedial action for a portion of the Concord site at which wastes
were disposed of from approximately 1852 through 1952. The estimated cost
of the remedial action ranges from $2.1 million to $3.2 million, and the
Company has recorded $2.1 million at June 30, 1997 in deferred charges.
The Company has petitioned the State of New Hampshire Public Utilities
Commission for approval of the Company's proposed five-year recovery from
ratepayers of carrying costs and $1.9 million of investigation, remediation
and recovery effort costs.
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 manufactured gas plant during the late 1800's and
early 1900's.
The Company and Public Service Company of New Hampshire ("PSNH")
conducted an environmental site characterization of a second former
manufactured gas plant in Laconia, New Hampshire. The Laconia manufactured
gas plant operated between approximately 1887 and 1952, and the Company
owned and operated the facility for approximately the last seven years of
its active life. Without admitting liability, the Company and PSNH have
entered into an agreement under which costs of the site characterization are
shared. The Company's share of the costs of the site characterization and
a report to the NHDES, totaled $265,000 and has been recorded in deferred
charges as of June 30, 1997. The Company expects to incur further expenses
but is currently unable to predict the magnitude of any liability that may
be imposed on it for the cost of additional studies or the performance of a
remedial action in connection with the Laconia site. The Company is pursuing
recovery from its insurance carriers for costs incurred with respect to
the Laconia site.
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 with respect to environmental matters. The
Company intends to seek and expects to receive approval of rate
recovery methods with respect to environmental matters after it
has determined the extent of contamination, received
recommendations with regard to remediation and commenced
remediation efforts.
Factors that May Affect Future Results
The Private Securities Litigation Reform Act of 1995 encourages
the use of cautionary statements accompanying forward-looking
statements. The preceding Management's Discussion and Analysis
of Financial Condition and Results of Operations includes forward-
looking statements concerning the impact of changes in the cost
of gas and of the CGA mechanism on total margin; projected
capital expenditures and sources of cash to fund expenditures;
estimated costs of environmental remediation and anticipated
regulatory approval of recovery mechanisms. The Company's future
results, generally and with respect to such forward-looking
statements, may be affected by many factors, among which are, but
not limited to, uncertainty as to the regulatory allowance of
recovery of changes in the cost of gas; uncertain demands for
capital expenditures and the availability of cash from various
sources; uncertainty as to regulatory approval of the full
recovery of environmental costs, transition costs and other
regulatory assets.
New Accounting Standards and Pronouncements
The Financial Accounting Standards Board has issued new accounting standards
that the Company will adopt in future periods. Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings Per Share," establishes
standards for computing and presenting earnings per share. SFAS No. 130,
"Reporting Comprehensive Income," establishes standards for reporting and the
disclosure of comprehensive income and its components. It is not
expected that the adoption of SFAS Nos. 128 and 130 will have a material
impact on the Company's financial reporting.
SFAS No. 131, "Disclosures About Segments of an Enterprise and Related
Information," establishes standards for the way public business enterprises
report information about operating segments, including disclosures about
products and services, geographic areas and major customers. The
Company is currently evaluating the impact of SFAS No. 131.
The American Institute of Certified Public Accountants issued a Statement
of Position ("SOP") 96-1, "Environmental Remediation Liabilities." The
SOP's objective is to make the timing of the recognition of environmental
obligations more uniform by discussing the estimation process and providing
benchmarks to aid in determining when to recognize environmental liabilities.
The Company is currently evaluating the impact of SOP 96-1.
The "Year 2000" Issue
Many computer systems are currently based on storing two digits to identify
the year of a transaction (for example, "97" for 1997), rather than a full
four digits, and are not programmed to consider the start of a new century.
Significant processing inaccuracies and inoperability could result in the
year 2000 and thereafter. The Company's principal computer systems are
currently in compliance with the "Year 2000," or are in the process of being
upgraded or replaced by systems that are. The Company is not incurring
significant cost to address the "Year 2000" issue.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
In 1995, the Company filed suit against ten (10) insurers of the
Company and its predecessors in actions captioned EnergyNorth Natural
Gas, Inc. v. Aegis, et al, United States District Court for the District
of New Hampshire, Civil No. C-95-591-B, and EnergyNorth Natural Gas, Inc.
v. The Continental Insurance Company, et al, New Hampshire Superior
Court, Hillsborough County, Case No. 95-E-360. In March and June, 1997
the Company reached settlements with two defendants in those actions in an
aggregate amount of $137,500. The settlement is a recovery of costs and
had no impact on earnings.
Items 2-5 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, 1997.
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, 1997 /s/ 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, 1997 and
condensed consolidated statement of income and statement of cash flows for the
nine months ended June 30, 1997 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-30-1997
<PERIOD-END> JUN-30-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 96,053<F1>
<OTHER-PROPERTY-AND-INVEST> 7,526<F2>
<TOTAL-CURRENT-ASSETS> 18,924
<TOTAL-DEFERRED-CHARGES> 9,013
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 131,516
<COMMON> 3,244
<CAPITAL-SURPLUS-PAID-IN> 30,428
<RETAINED-EARNINGS> 17,194
<TOTAL-COMMON-STOCKHOLDERS-EQ> 50,866
0
0
<LONG-TERM-DEBT-NET> 29,168
<SHORT-TERM-NOTES> 5,500
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 2,145
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 98
<OTHER-ITEMS-CAPITAL-AND-LIAB> 43,739
<TOT-CAPITALIZATION-AND-LIAB> 131,516
<GROSS-OPERATING-REVENUE> 96,437
<INCOME-TAX-EXPENSE> 5,038
<OTHER-OPERATING-EXPENSES> 80,523
<TOTAL-OPERATING-EXPENSES> 85,561
<OPERATING-INCOME-LOSS> 10,876
<OTHER-INCOME-NET> 688
<INCOME-BEFORE-INTEREST-EXPEN> 11,564
<TOTAL-INTEREST-EXPENSE> 2,941
<NET-INCOME> 8,623
0
<EARNINGS-AVAILABLE-FOR-COMM> 8,623
<COMMON-STOCK-DIVIDENDS> 3,017
<TOTAL-INTEREST-ON-BONDS> 2,590<F3>
<CASH-FLOW-OPERATIONS> 20,634
<EPS-PRIMARY> 2.66
<EPS-DILUTED> 0
<FN>
<F1>Net of accumulated depreciation of $47,690
<F2>Net of accumulated depreciation of $ 9,204
<F3>$2,590 represents the forecasted annual interest on bonds for the fiscal year
ending September 30, 1997. Actual interest on bonds for the nine months ended
June 30, 1997 was $1,962.
</FN>
</TABLE>
