<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1997 Commission File No. 1-4698
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Nevada Power Company
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 88-0045330
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6226 West Sahara Avenue, Las Vegas, Nevada 89102
- ------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
(702) 367-5000
----------------------------------------------------
(Registrant's telephone number, including area code)
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
---- ---
Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock, as of the latest practicable date.
Common Stock outstanding May 1, 1997, 49,568,102 shares.
----------
1
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PART I. FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
FOR THE
THREE MONTHS
ENDED MARCH 31,
------------------
1997 1996
-------- --------
ELECTRIC REVENUES ........................................ $155,355 $147,128
OPERATING EXPENSES AND TAXES:
Fuel ................................................ 21,126 18,699
Purchased and interchanged power .................... 53,270 51,097
Deferred energy cost
adjustments, net ................................... (1,647) 3,990
-------- --------
Net energy costs ................................... 72,749 73,786
Other production operations ......................... 3,745 3,864
Other operations .................................... 24,062 23,577
Maintenance and repairs ............................. 9,983 9,811
Provision for depreciation .......................... 16,175 14,979
General taxes ....................................... 5,057 4,837
Federal income taxes ................................ 4,143 1,596
-------- --------
135,914 132,450
-------- --------
OPERATING INCOME ......................................... 19,441 14,678
-------- --------
OTHER INCOME (EXPENSES):
Allowance for other funds used
during construction ................................ 2,052 1,517
Miscellaneous, net .................................. (970) (769)
-------- --------
1,082 748
-------- --------
INCOME BEFORE INTEREST DEDUCTIONS ........................ 20,523 15,426
-------- --------
INTEREST DEDUCTIONS:
Interest on long-term debt .......................... 12,308 11,641
Other interest ...................................... 437 407
Allowance for borrowed funds used
during construction ................................ (792) (140)
-------- --------
11,953 11,908
-------- --------
NET INCOME ............................................... 8,570 3,518
DIVIDEND REQUIREMENTS ON PREFERRED
STOCK ................................................... 987 989
-------- --------
EARNINGS AVAILABLE FOR COMMON STOCK ...................... $ 7,583 $ 2,529
======== ========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING ............................................. 49,059 47,298
======== ========
EARNINGS PER AVERAGE COMMON SHARE ........................ $ .15 $ .05
======== ========
DIVIDENDS PER COMMON SHARE ............................... $ .40 $ .40
======== ========
See Notes to Financial Statements.
2
<PAGE>
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
March 31, December 31,
1997 1996
---------- ------------
(In Thousands)
ELECTRIC PLANT:
Original cost ..................................... $2,202,399 $2,194,947
Less accumulated depreciation ..................... 607,380 592,571
---------- ----------
Net plant in service ............................ 1,595,019 1,602,376
Construction work in progress ..................... 166,973 140,420
Other plant, net .................................. 74,759 76,134
---------- ----------
1,836,751 1,818,930
---------- ----------
INVESTMENTS ......................................... 11,082 10,734
---------- ----------
CURRENT ASSETS:
Cash and temporary cash investments ............... 2,583 2,544
Customer receivables .............................. 53,847 66,682
Other receivables ................................. 7,885 6,472
Receivable for proceeds from sale of Company-
obligated mandatorily redeemable preferred
securities of the Company's subsidiary trust, NVP
Capital I ........................................ 118,872 -
Fuel stock and materials and supplies ............. 44,312 36,605
Deferred taxes on deferred energy liability........ 9,741 10,139
Prepayments ....................................... 10,881 8,203
---------- ----------
248,121 130,645
---------- ----------
DEFERRED CHARGES .................................... 207,836 202,515
---------- ----------
$2,303,790 $2,162,824
========== ==========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common shareholders' equity:
Common stock, 49,233,385 and 48,785,846
shares issued and outstanding, respectively .... $ 52,438 $ 51,990
Premium and unamortized expense on capital stock 639,231 630,804
Retained earnings ............................... 105,404 117,360
---------- ----------
797,073 800,154
---------- ----------
Cumulative preferred stock ........................ 3,583 41,663
---------- ----------
Company-obligated mandatorily redeemable preferred
securities of the Company's subsidiary trust, NVP
Capital I, holding solely $122.6 million principal
amount of 8.2% junior subordinated debentures of
the Company, due 2037 ............................ 118,872 -
---------- ----------
Long-term debt .................................... 838,879 840,964
---------- ----------
1,758,407 1,682,781
---------- ----------
CURRENT LIABILITIES:
Notes payable ..................................... 25,500 -
Current maturities and sinking fund requirements .. 43,538 5,714
Accounts payable .................................. 54,456 58,289
Accrued taxes ..................................... 10,038 6,372
Accrued interest .................................. 9,922 6,039
Deferred energy liability ......................... 27,830 28,725
Customers' service deposits and other ............. 32,746 36,151
---------- ----------
204,030 141,290
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred investment tax credits ................... 30,639 31,004
Deferred taxes on income .......................... 236,873 234,209
Customers' advances for construction and other .... 73,841 73,540
---------- ----------
341,353 338,753
---------- ----------
$2,303,790 $2,162,824
========== ==========
See Notes to Financial Statements.
3
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS
ENDED MARCH 31,
--------------------
1997 1996
-------- --------
(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .......................................... $ 8,570 $ 3,518
Adjustments to reconcile net income to net cash
provided-
Depreciation and amortization ...................... 17,828 17,498
Deferred income taxes and investment tax credits ... 904 3,755
Allowance for other funds used during construction . (2,051) (1,517)
Changes in-
Receivables ........................................ 11,422 11,818
Fuel stock and materials and supplies .............. (821) (3,971)
Accounts payable and other current liabilities ..... (11,321) (7,093)
Deferred energy costs .............................. (664) 4,560
Accrued taxes and interest ......................... 7,549 (8,118)
Other assets and liabilities ........................ (3,409) (6,263)
-------- --------
Net cash provided by operating activities ......... 28,007 14,187
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures and gross additions ....... (41,087) (49,626)
Investment in subsidiaries and other ................ 242 465
-------- --------
Net cash used in investing activities ............. (40,845) (49,161)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of capital stock ........................... 8,873 9,406
Deposit of funds held in trust ...................... (484) (808)
Retirement of long-term debt ........................ (1,258) (1,309)
Retirement of preferred stock ....................... (80) (80)
Change in short-term borrowing ...................... 25,500 20,000
Cash dividends ...................................... (20,407) (19,821)
Other financing activities .......................... 733 3,799
-------- --------
Net cash provided by financing activities ......... 12,877 11,187
-------- --------
CASH AND TEMPORARY CASH INVESTMENTS:
Net increase (decrease) during the period ........... 39 (23,787)
Beginning of period ................................. 2,544 25,507
-------- --------
End of period ....................................... $ 2,583 $ 1,720
======== ========
CASH PAID DURING THE PERIOD FOR:
Interest, net of amounts capitalized ................ $ 10,857 $ 11,203
======== ========
Income taxes ........................................ $ - $ 11,092
======== ========
See Notes to Financial Statements.
4
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated financial statements included herein have been
prepared by the registrant, pursuant to the rules and regulations of the
Securities and Exchange Commission, and reflect all adjustments which, in the
opinion of management are necessary for a fair presentation and are of a
normally recurring nature. Certain information and footnote disclosures have
been condensed in accordance with generally accepted accounting principles and
pursuant to such rules and regulations. The registrant believes that the
disclosures are adequate to make the information presented not misleading. It
is suggested that these condensed consolidated financial statements and notes
thereto be read in conjunction with the financial statements and the notes
thereto included in the registrant's latest annual report. Certain prior period
amounts have been reclassified, with no effect on income or common shareholders'
equity, to conform with the current period presentation.
CONSOLIDATION POLICY
The consolidated financial statements include the accounts of Nevada Power
Company (Company) and its wholly-owned subsidiary, NVP Capital I. All
significant intercompany transactions and balances have been eliminated in
consolidation.
RECENTLY ISSUED ACCOUNTING STANDARDS
The Financial Accounting Standards board recently issued Statement of
Financial Accounting Standards No. 128 (FASB 128), Earnings Per Share, which is
effective for fiscal years beginning after December 15, 1997. FASB 128
establishes standards for computing and presenting earnings per share to make
them comparable to international earnings per share standards and requires dual
presentation of basic and diluted earnings per share for entities with complex
capital structures. After adoption, there will be no material effect on the
Company's earnings per share.
(1) FEDERAL INCOME TAXES:
For interim financial reporting purposes, the Company reflects in the
computation of the federal income tax provision liberalized depreciation based
upon the expected annual percentage relationship of book and tax depreciation
and reflects the allowance for funds used during construction on an actual
basis. The total federal income tax expense as set forth in the accompanying
statements of income results in an effective federal income tax rate different
than the statutory federal income tax rate. The table below shows the effects
of those transactions which created this difference.
THREE MONTHS
ENDED MARCH 31,
----------------
1997 1996
------- -------
(In Thousands)
Federal income tax at statutory rate ........................ $ 4,651 $ 1,931
Investment tax credit amortization .......................... (365) (365)
Other ....................................................... 433 433
------- -------
Recorded federal income taxes ............................... $ 4,719 $ 1,999
======= =======
Federal income taxes included in-
Operating expenses ........................................ $ 4,143 $ 1,596
Other income, net ......................................... 576 403
------- -------
Recorded federal income taxes ............................... $ 4,719 $ 1,999
======= =======
5
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(2) COMMITMENTS AND CONTINGENCIES:
On February 6, 1997, the PSC issued its opinion and order in the last phase
of the 1995 deferred energy case concerning the prudency of the Company's fuel
and purchased power expenditures during the period June 1993 to May 1995, a
buyout of a coal supply agreement and a credit to customers related to the use
of coal reserves in an unregulated subsidiary company. The PSC order resulted
in a fourth quarter 1996 charge of $5.5 million, net of tax, for amounts
disallowed by the PSC.
On May 7, 1997, the Company filed a Petition for Judicial Review in the
First District Court in Carson City, Nevada challenging the PSC's findings which
resulted in disallowances.
The Federal Clean Air Act Amendments of 1990 (Amendments) include
provisions for reduction of emissions of oxides of nitrogen by establishing new
emission limits for coal-fired generating units. This will require the
installation of additional pollution-control technology at some of the Reid
Gardner Station generating units before 2000 at an estimated cost to the Company
of no more than $6 million.
Related to visibility, the United States Congress authorized the EPA to
study the potential impact the Mohave Generating Station may have on visibility
in the Grand Canyon area. Results of this study are expected in 1997. The cost
of any improvements that may be required cannot be determined at this time.
In 1991, the EPA published an order requiring the Navajo Generating Station
(Navajo) to install scrubbers to remove 90 percent of sulfur dioxide emissions
beginning in 1997. As an 11.3 percent owner of Navajo, the Company will be
required to fund an estimated $53.1 million for installation of the scrubbers.
The first of three scrubber units is expected to be on line in November 1997.
At that point, the project will be approximately 50 percent complete. The first
of the other two units is expected to be on line in 1998 and the last unit in
1999. The Company has spent $30.4 million through 1996 on the scrubbers'
construction. In 1992, the Company received resource planning approval from the
PSC for its share of the cost of the scrubbers.
(3) PREFERRED SECURITIES:
On April 1, 1997, the Company redeemed all 1.9 million shares of its $20
par value, 9.9 percent redeemable cumulative preferred stock at $21 per share
for a total of $39.9 million. The 9.9 percent redeemable cumulative preferred
stock was reclassified as a current maturity on the Consolidated Balance Sheets
at March 31, 1997.
On March 26, 1997, NVP Capital I (Trust), a wholly-owned subsidiary of the
Company, sold 4,754,860 8.20% Cumulative Quarterly Income Preferred Securities,
Series A (QUIPS) at $25 per security. The proceeds of $118.9 million were
received at closing on April 2, 1997. The Company owns all the Series A common
securities, 147,058 shares totaling $3.7 million issued by the Trust. The QUIPS
and the common securities represent undivided beneficial ownership interests in
the assets of the Trust, a statutory business trust formed under the laws of the
state of Delaware. The existence of the Trust is for the sole purpose of
issuing the QUIPS and the common securities and using the proceeds thereof to
purchase from the Company its 8.20% Junior Subordinated Deferrable Interest
Debentures (QUIDS) due March 31, 2037, extendible to March 31, 2046 under
certain conditions, in a principal amount of $122.6 million. The sole asset of
the Trust is the QUIDS. The Company's obligations under the guarantee agreement
entered into in connection with the QUIPS when taken together with the Company's
obligation to make interest and other payments on the QUIDS issued to the Trust,
and the Company's obligations under the Indenture pursuant to which the QUIDS
are issued and its obligations under the Declaration, including its liabilities
to pay costs, expenses, debts and liabilities of the Trust, provides a full and
unconditional guarantee by the Company of the Trust's obligations under the
QUIPS. Financial statements of the Trust are consolidated with the
6
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Company's. Separate financial statements are not filed because the Trust is
wholly-owned by the Company and essentially has no independent operations, and
the Company's guarantee of the Trust's obligations is full and unconditional.
The $118.9 million in net proceeds to the Company will be used for general
corporate utility purposes which may include capital expenditures, repayment of
debt, working capital and repurchases of outstanding preferred shares. A
portion of the proceeds were used to repay short-term debt incurred for general
corporate utility purposes and short-term debt incurred to redeem the Company's
$38 million, 9.9 percent Redeemable Cumulative Preferred Stock on April 1, 1997.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Overall net cash flows increased during the first three months of 1997, as
compared to 1996, primarily due to more cash being provided by operating
activities and less cash being used in investing activities. Customer growth,
the sale of sulfur dioxide emissions allowances, warmer weather and timing
differences in federal income tax payments contributed to the increase in cash
being provided by operating activities. The decrease in net cash used in
investing activities is due primarily to lower construction expenditures.
The Company's customer growth rate during 1996 and 1995 was 7.2 and 6.0
percent, respectively. The increase in customers for the first three months of
1997 was at an annualized rate of 5.5 percent. At March 31, 1997, the Company
provided electric service to 493,814 customers.
Pursuant to Nevada law, every three years the Company is required to file
with the PSC a forecast of electricity demands for the next 20 years and the
Company's plans to meet those demands. The Company is required to file its next
resource plan by July 1, 1997. Among the major items in the Company's 1994
Resource Plan, as refiled and amended, which were approved by the PSC in 1994
and 1995 are the following:
(1) the Company will continue to pursue a strategy of relying on short-term
power purchases to meet the forecasted increases in load;
(2) the Company will maintain sufficient flexibility to implement an
efficient cost-effective resource acquisition process where
appropriate, noting that the competitive solicitation process remains
the preferred method for comparing resource options;
(3) the Company will proceed with the installation of the initial 230 kV
circuit and associated substation and communication facilities on the
previously approved Arden-Northwest 230 kV Transmission Line;
(4) the Company will proceed with the rerouting of a portion of the #2
Arden-McCullough 230 kV Transmission Line;
(5) the Company will proceed with limited resource planning approval to
seek the necessary UEPA and other permitting approvals, and to acquire
necessary sites and rights-of-way for two 230 kV switching stations;
(6) the Company will proceed with a Renewable Energy Program for the
Company to utilize all appropriate incentives, resources, and expertise
to foster the development of economically competitive renewable energy
systems with the intent to provide Southern Nevada customers with 20
megawatts of solar-generated electricity by the year 2002.
7
<PAGE>
To meet capital expenditure requirements through 1998, the Company plans to
utilize internally generated cash, the proceeds from industrial development
revenue bonds (IDBs), first mortgage bonds (FMBs), unsecured borrowings,
preferred securities and common stock issues through public offerings and the
Stock Purchase and Dividend Reinvestment Plan (SPP).
The Company has the option of issuing new shares or using open market
purchases of its common stock to meet the requirements of the SPP. Under the
SPP the Company issued 1,659,764 and 420,863 shares, respectively, of its
common stock in 1996 and the first three months of 1997.
On October 12, 1995, Clark County, Nevada issued $76.75 million Series
1995A IDBs (Nevada Power Company Project) due 2030. Net proceeds from the sale
of the IDBs were placed on deposit with a trustee and are being used to finance
the construction of certain facilities which qualify for tax-exempt financing.
At March 31, 1997, $53.2 million remained on deposit with the trustee.
On March 26, 1997, the Company sold 4,754,860 8.20% Cumulative Quarterly
Income Preferred Securities, Series A (QUIPS) at $25 per security. The proceeds
of $118.9 million were received at closing on April 2, 1997. The QUIPS were
issued through NVP Capital I, a statutory business trust of the Company. The
proceeds will be used for general corporate utility purposes which may include
capital expenditures, repayment of debt, working capital and repurchases of
outstanding preferred shares. A portion of the proceeds were used to repay
short-term debt incurred for general corporate utility purposes and short-term
debt incurred to redeem the Company's 9.9 percent Redeemable Cumulative
Preferred Stock on April 1, 1997. (See Note 3 to Consolidated Financial
Statements included in this quarterly report.)
On September 21, 1992, Valley Electric Association, Inc. (Valley Electric)
filed a complaint with the PSC alleging that the Company was unlawfully
providing service to the Nevada Test Site and requesting damages and a cease and
desist order. In an Opinion and Order issued on May 13, 1994, the PSC found
that based on a 1963 territorial agreement (Agreement) between Valley Electric
and the Company, each of these two electric suppliers have a non-exclusive right
to provide service to the Test Site's discretion. On an appeal brought by
Valley Electric, the Eighth Judicial District Court for Clark County Nevada
(District Court) vacated the PSC's Opinion and Order and ordered the PSC to
issue an order requiring the Company to cease and desist from any activity that
violates the Agreement. The District Court's Order is the subject of a pending
appeal brought by the United States Department of Energy (DOE) on behalf of the
Test Site.
In July 1996, Valley Electric, the Company, the PSC Regulatory Operations
Staff and Lincoln County Power District No. 1 (Lincoln Power)(a governmental
electric supplier that holds itself out as providing electric service in Lincoln
County, Nevada, where a portion of the Test Site is located), entered into a
Stipulation, Settlement Agreement and Release (Settlement Agreement.) The term
of the Settlement Agreement is three years, commencing with the date an order is
issued by the PSC. Under the Settlement Agreement, the Test Site's electrical
usage will be split among Valley Electric (40 percent), the Company (40 percent)
and Lincoln Power (20 percent), and each of the three electric suppliers
unconditionally released and forever discharged each other from any and all
claims for damages based directly or indirectly on the geographic scope of the
service provided to the Test Site before and during the term of the Settlement
Agreement. On May 1, 1997 the PSC approved the Settlement Agreement. The
Company believes there will not be a material impact on its operations, or upon
its competitive position generally.
8
<PAGE>
OPERATING RESULTS OF FIRST THREE MONTHS OF 1997
COMPARED TO FIRST THREE MONTHS OF 1996
Earnings per average common share were fifteen cents for the first three
months of 1997, compared to five cents for the same period in 1996. The
increase in earnings was due primarily to increased revenues and operating and
maintenance expenses remaining flat. Revenues increased due primarily to
customer growth, the sale of sulfur dioxide emission allowances (three cents per
average common share) and warmer weather partially offset by an energy rate
decrease effective February 1, 1997. In addition, effective February 1, 1997,
capacity costs associated with purchased power were included in general rates
rather than the deferred energy cost accounting mechanism. The average number
of customers increased 6.9 percent and kilowatthour sales, excluding sales for
resale, were up 7.2 percent, as compared to the first three months of 1996.
Fuel expense increased $2.4 million due to increased generation. Purchased
power increased $2.2 million due to increased power purchases. Depreciation
expense increased $1.2 million because of a growing asset base.
Average common shares increased because of the sale of additional common
shares through the SPP to partially provide funds for the construction of
facilities necessary to meet increased customer demand for electricity.
9
<PAGE>
PART II. OTHER INFORMATION
Items 1 through 5. None.
Item 6. Exhibits and Reports on Form 8-K.
a. Exhibits.
Exhibits Filed Description
-------------- -----------
27 Financial Data Schedule
b. Reports on Form 8-K.
None.
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Nevada Power Company
--------------------
(Registrant)
STEVEN W. RIGAZIO
--------------------------------------
(Signature)
Date: May 9, 1997 Steven W. Rigazio
-----------
Vice President, Finance and Planning,
Treasurer, Chief Financial Officer
10
<PAGE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET OF NEVADA POWER COMPANY AS OF MARCH 31, 1997 AND THE
RELATED CONSOLIDATED STATEMENTS OF INCOME AND CASH FLOWS FOR THE THREE MONTHS
ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> $1,836,751
<OTHER-PROPERTY-AND-INVEST> 11,082
<TOTAL-CURRENT-ASSETS> 248,121
<TOTAL-DEFERRED-CHARGES> 207,836
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 2,303,790
<COMMON> 52,438
<CAPITAL-SURPLUS-PAID-IN> 639,231
<RETAINED-EARNINGS> 105,404
<TOTAL-COMMON-STOCKHOLDERS-EQ> 797,073
118,872
3,583
<LONG-TERM-DEBT-NET> 748,065
<SHORT-TERM-NOTES> 25,500
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 300
38,200
<CAPITAL-LEASE-OBLIGATIONS> 90,814
<LEASES-CURRENT> 5,038
<OTHER-ITEMS-CAPITAL-AND-LIAB> 476,345
<TOT-CAPITALIZATION-AND-LIAB> 2,303,790
<GROSS-OPERATING-REVENUE> 155,355
<INCOME-TAX-EXPENSE> 4,143
<OTHER-OPERATING-EXPENSES> 131,771
<TOTAL-OPERATING-EXPENSES> 135,914
<OPERATING-INCOME-LOSS> 19,441
<OTHER-INCOME-NET> 1,082
<INCOME-BEFORE-INTEREST-EXPEN> 20,523
<TOTAL-INTEREST-EXPENSE> 11,953
<NET-INCOME> 8,570
987
<EARNINGS-AVAILABLE-FOR-COMM> 7,583
<COMMON-STOCK-DIVIDENDS> 19,539
<TOTAL-INTEREST-ON-BONDS> 0<F1>
<CASH-FLOW-OPERATIONS> 28,007
<EPS-PRIMARY> .15
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<FN>
<F1>INAPPLICABLE.
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