UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 1-7297
NICOR Inc.
(Exact name of registrant as specified in its charter)
Illinois 36-2855175
(State of incorporation) (I.R.S. Employer
Identification No.)
1844 Ferry Road
Naperville, Illinois 60563-9600
(Address of principal (Zip Code)
executive offices)
(708)305-9500
(Registrant's telephone number)
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 and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
Shares of common stock, par value $2.50 outstanding, at October 31, 1995,
were 50,317,801.
NICOR Inc. Page i
Table of Contents
Page
Part I. Financial Information
Item 1. Financial Statements (Unaudited) 1
Consolidated Statement of Income -
Three, Nine and Twelve Months Ended
September 30, 1995 and 1994 2
Consolidated Statement of Cash Flows -
Nine and Twelve Months Ended
September 30, 1995 and 1994 3
Consolidated Balance Sheet -
September 30, 1995 and 1994, and
December 31, 1994 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7
Part II. Other Information
Item 1. Legal Proceedings 13
Item 6. Exhibits and Reports on Form 8-K 13
Signature 14
Exhibit Index 15
Selected terms:
Mcf, Bcf - Thousand cubic feet, billion cubic feet.
TEU - Twenty-foot equivalent unit.
Degree days -Number of degrees by which the daily
mean temperature falls below 65 degrees
Fahrenheit.
FERC - Federal Energy Regulatory Commission.
Ill.C.C. - Illinois Commerce Commission.
NICOR Inc. Page 1
PART I - Financial Information
Item 1. Financial Statements
The following condensed unaudited financial statements of
NICOR Inc. have been prepared by the company pursuant to the rules
and regulations of the Securities and Exchange Commission (SEC).
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to
SEC rules and regulations. The condensed financial statements
should be read in conjunction with the financial statements and the
notes thereto included in the company's latest Annual Report on
Form 10-K.
The information furnished reflects, in the opinion of the company,
all adjustments (consisting only of normal recurring adjustments)
necessary for a fair statement of the results for the interim
periods presented. Because of seasonal and other factors, the
results for the interim periods presented are not necessarily
indicative of the results to be expected for the full fiscal year.
<TABLE>
NICOR Inc. Page 2
Consolidated Statement of Income (Unaudited)
(Millions, except per share data)
<CAPTION>
Three months ended Nine months ended Twelve months ended
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Operating revenues $ 157.1 $ 166.0 $1,013.8 $1,213.8 $1,409.3 $1,751.6
Operating expenses
Cost of gas 46.3 57.7 527.4 715.1 737.2 1,059.0
Operating and maintenance 67.9 66.0 204.2 201.4 275.5 270.7
Depreciation 14.6 13.3 78.6 71.7 109.9 102.2
Taxes, other than income taxes 10.5 10.8 77.6 91.4 101.3 122.4
139.3 147.8 887.8 1,079.6 1,223.9 1,554.3
Operating income 17.8 18.2 126.0 134.2 185.4 197.3
Other income (expense)
Interest income .5 .7 2.6 1.9 3.1 2.3
Other, net .4 .5 .8 2.4 3.1 5.1
.9 1.2 3.4 4.3 6.2 7.4
Income before interest on debt
and income taxes 18.7 19.4 129.4 138.5 191.6 204.7
Interest on debt, net of
amounts capitalized 9.4 9.5 30.3 28.3 42.1 39.0
Income before income taxes 9.3 9.9 99.1 110.2 149.5 165.7
Income taxes 3.2 2.4 35.0 35.5 50.7 53.8
Net income 6.1 7.5 64.1 74.7 98.8 111.9
Dividends on preferred and
preference stock .1 .1 .3 .4 .4 .7
Earnings applicable to
common stock $ 6.0 $ 7.4 $ 63.8 $ 74.3 $ 98.4 $ 111.2
Average shares of common
stock outstanding 50.4 52.2 50.8 52.9 51.1 53.2
Earnings per average share
of common stock $ .12 $ .14 $ 1.26 $ 1.40 $ 1.93 $ 2.09
Dividends declared per share
of common stock $ .32 $ .315 $ .96 $ .945 $ 1.275 $ 1.25
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
NICOR Inc. Page 3
Consolidated Statement of Cash Flows (Unaudited)
(Millions)
<CAPTION>
Nine months ended Twelve months ended
September 30 September 30
1995 1994 1995 1994
Operating activities
<S> <C> <C> <C> <C>
Net income $ 64.1 $ 74.7 $ 98.8 $ 111.9
Adjustments to reconcile net income to net cash flow
provided from continuing operations:
Depreciation 78.6 71.7 109.9 102.2
Deferred income tax expense (benefit) (10.8) (23.6) (19.8) (18.7)
Change in working capital items and other:
Receivables, less allowances 124.3 177.0 5.8 8.3
Gas in storage 11.1 (14.9) 32.6 1.2
Deferred gas costs 17.4 42.2 (2.5) 63.1
Accounts payable .5 8.5 22.9 11.6
Gas refunds due customers 40.2 1.6 39.3 (.1)
Accrued taxes (7.5) (21.1) 12.1 (21.1)
Accrued interest (7.7) (6.7) (.4) (.4)
Other (1.4) (.6) (.3) (4.0)
Net cash flow provided from continuing operations 308.8 308.8 298.4 254.0
Net cash flow provided from (used for) discontinued operations (2.3) 1.9 (5.5) .8
Net cash flow provided from operating activities 306.5 310.7 292.9 254.8
Investing activities
Capital expenditures (107.1) (115.9) (163.3) (160.9)
Short-term investments 13.0 29.9 6.9 19.5
Proceeds from sales of discontinued operations - - - 4.9
Other .4 .9 .8 4.1
Net cash flow used for investing activities (93.7) (85.1) (155.6) (132.4)
Financing activities
Net proceeds from issuing long-term debt 22.5 99.2 22.5 111.7
Disbursements to retire long-term debt (62.5) (50.0) (62.5) (53.8)
Short-term borrowings (repayments), net (103.2) (170.8) 10.0 (38.3)
Dividends paid (49.0) (50.4) (65.5) (67.3)
Disbursements to reacquire stock (31.9) (56.3) (47.2) (73.9)
Other .7 .5 1.0 1.0
Net cash flow used for financing activities (223.4) (227.8) (141.7) (120.6)
Net increase (decrease) in cash and cash equivalents (10.6) (2.2) (4.4) 1.8
Cash and cash equivalents, beginning of period 14.5 10.5 8.3 6.5
Cash and cash equivalents, end of period $ 3.9 $ 8.3 $ 3.9 $ 8.3
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
NICOR Inc. Page 4
Consolidated Balance Sheet (Unaudited)
(Millions)
<CAPTION>
September 30 December 31 September 30
Assets 1995 1994 1994
Current assets
<S> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents $ 3.9 $ 14.5 $ 8.3
Short-term investments, at cost which
approximates market 14.8 27.8 21.7
Receivables, less allowances of $5.1,
$5.2 and $6.1, respectively 94.4 218.7 100.2
Gas in storage, at last-in, first-out cost 58.9 91.2 112.7
Deferred gas costs 17.2 34.6 14.7
Other 45.3 31.2 38.6
234.5 418.0 296.2
Property, plant and equipment, at cost
Gas distribution 2,840.0 2,727.8 2,678.4
Shipping 224.2 223.5 224.2
Other .4 .2 .2
3,064.6 2,951.5 2,902.8
Less accumulated depreciation 1,300.7 1,234.5 1,206.7
1,763.9 1,717.0 1,696.1
Other assets 80.8 74.9 66.3
$ 2,079.2 $ 2,209.9 $ 2,058.6
Liabilities and Capitalization
Current liabilities
Long-term obligations due within one year $ 50.0 $ 50.3 $ 50.3
Short-term borrowings 143.2 246.4 133.2
Accounts payable 257.6 258.4 236.0
Gas refunds due customers 42.5 2.3 3.2
Other 28.9 43.0 28.5
522.2 600.4 451.2
Deferred credits and other liabilities
Deferred income taxes 178.0 169.3 171.3
Regulatory income tax liability 87.6 89.9 91.3
Unamortized investment tax credits 51.2 53.5 54.3
Other 144.0 145.1 142.2
460.8 457.8 459.1
Capitalization
Long-term debt 419.1 458.9 458.9
Preferred stock
Redeemable 8.7 9.3 9.3
Nonredeemable .1 .1 .1
Common equity
Common stock 125.8 128.9 130.4
Paid-in capital 49.9 77.1 90.5
Retained earnings (since December 31, 1985) 492.6 477.4 459.1
1,096.2 1,151.7 1,148.3
$ 2,079.2 $ 2,209.9 $ 2,058.6
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
NICOR Inc. Page 5
Notes To Consolidated Financial Statements (Unaudited)
ACCOUNTING POLICIES
Depreciation. Depreciation for the gas distribution segment is calculated
using a straight-line method for the calendar year. For interim periods,
depreciation is allocated based on gas deliveries.
CASH FLOW INFORMATION
Income taxes paid, net of refunds, and interest paid, net of amounts
capitalized, for the periods ended September 30 were (millions):
Nine months Twelve months
1995 1994 1995 1994
Income taxes paid $44.1 $65.9 $56.1 $81.4
Interest paid 38.0 35.0 42.5 39.4
REGULATORY MATTERS
Rate Proceeding. On May 8, 1995, Northern Illinois Gas filed with the
Ill.C.C. for a 5.4 percent, $73 million general rate increase. The filing
requested a rate of return on original-cost rate base of 10.67 percent,
reflecting a 12.95 percent cost of common equity. The request for the general
rate increase is needed to recover costs associated with enhancements to the
company's underground storage and delivery system, other capital costs and
rising operating costs. The filing also proposes revisions to some services
provided to commercial and industrial customers. The last time the company
filed for a general rate increase was 1981.
The Ill.C.C. staff ("Staff") has filed testimony and exhibits which propose a
substantially lower increase than that requested by the company. Northern
Illinois Gas strongly opposes many of the positions of the Staff. A proposed
order is expected from the Ill.C.C. hearing examiner in early 1996 and the
Ill.C.C. is expected to issue a final decision by April 1996.
LONG-TERM DEBT
In October 1995, Northern Illinois Gas issued $50 million of 7.26% First
Mortgage Bonds due in 2025. The net proceeds from the sale replenished
corporate funds which were used for the maturity of $50 million of 5-1/2%
unsecured notes in July 1995.
In September 1995, Tropical Shipping issued $22.5 million of 6.83% unsecured
senior notes due in September 2000. Proceeds from the sale were used for
replacement of a $12.5 million promissory note due in December 1996 and
for general corporate purposes.
CONTINGENCIES
The company is involved in legal or administrative proceedings before
various courts and agencies with respect to rates, taxes and other matters.
In connection with the sale of the discontinued U.S. oil and gas exploration
and production operations, the company has agreed to indemnify the purchaser
against losses with respect to certain claims and litigation. The largest
NICOR Inc. Page 6
Notes To Consolidated Financial Statements (Unaudited)
(Concluded)
CONTINGENCIES (Concluded)
potential liability relates to a dispute with the producer of gas from one
well who is claiming entitlement to Natural Gas Policy Act Section 108
(NGPA 108) prices, which are substantially higher than market prices. On
April 27, 1995, the U.S. Court of Appeals for the Fifth Circuit issued an
opinion holding in favor of NICOR Exploration Company. The Court subse-
quently denied rehearing of the matter.
Current environmental laws require treatment of certain waste materials on
sites owned or leased by NICOR that may have been generated by two barge-
cleaning facilities previously owned and operated by certain subsidiaries of
the company. NICOR has remediated one site in accordance with the approved
closure plan and began the three year post-closure monitoring period in
1995. The cost of evaluation and cleanup of the other site is currently
estimated to range from $5 million to $15 million. The company is
evaluating whether any of these costs will be recoverable from insurance or
other sources.
Current environmental laws may require cleanup of certain former gas
manufacturing plant sites. Northern Illinois Gas currently owns 15
properties and formerly owned or leased 13 properties believed to be the
location of such sites. The company has presented information regarding
preliminary reviews of the 28 sites to the Illinois Environmental Protection
Agency. More detailed investigations are currently in progress or planned
at several of the 28 sites. At three of these sites, the current owner or
lessee is seeking to allocate cleanup costs to all former owners, including
Northern Illinois Gas.
The results of continued testing and analysis should determine to what
extent remediation is necessary and may provide a basis for estimating any
additional costs to be incurred. While such costs, based on industry
experience, could be significant, the company believes that any such costs
not recovered from prior owners and other sources will be recoverable by
Northern Illinois Gas through its rates. This conclusion is based upon,
among other things, an Ill.C.C. authorization allowing recovery of such
costs by the company and a generic order issued by the Ill.C.C. in September
1992. The generic order states that Illinois utilities may pass through
prudently incurred gas manufacturing plant cleanup costs to ratepayers over
a five-year period, but denies the utilities' request to recover capital
costs on the uncollected balances. In December 1993, the generic order was
upheld by the Illinois Appellate Court. In January 1994, the company began
recovery of cleanup costs from its customers in accordance with an Ill.C.C.-
approved cost recovery plan. In April 1994, the Illinois Supreme Court
agreed to hear an appeal filed by a consumer group. The consumer group
argued that no cleanup costs should be recoverable from ratepayers.
Northern Illinois Gas and other utilities argued that they should be
entitled to recover capital costs in addition to cleanup costs. On
April 20, 1995, the Illinois Supreme Court issued an opinion upholding the
utilities' positions and returned the matter to the Ill.C.C., which has
entered an order reflecting the Illinois Supreme Court's decision.
Although unable to determine the outcome of these contingencies, management
believes that appropriate accruals have been recorded. Final disposition of
these matters is not expected to have a material impact on the company's
financial condition or results of operations.
NICOR Inc. Page 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
OVERVIEW
The following discussion should be read in conjunction with the Management's
Discussion and Analysis section of the NICOR Inc. 1994 Annual Report on
Form 10-K.
NICOR's third quarter 1995 net income decreased to $6.1 million from $7.5
million in 1994 due mainly to a higher effective tax rate. Earnings per
common share were $.12 compared with $.14.
Net income for the nine months ended September 30 decreased to $64.1 million
in 1995 from $74.7 million in 1994. Earnings per common share were $1.26,
down from $1.40. Net income for the twelve months ended September 30, 1995,
decreased to $98.8 million from $111.9 million a year ago. Earnings per
common share were $1.93 compared with $2.09 in 1994. For both periods, the
decrease was primarily attributable to the gas distribution segment where
warmer weather and higher depreciation negatively impacted operating
results. Per share results in each period benefited from the company's
common stock buyback program.
Operating income (loss) for the periods ended September 30 by business
segment was (millions):
Three months Nine months Twelve months
1995 1994 1995 1994 1995 1994
Gas distribution $ 14.3 $ 15.6 $113.5 $125.8 $166.8 $185.2
Shipping 4.5 3.7 15.2 11.5 22.3 17.1
Other (1.0) (1.1) (2.7) (3.1) (3.7) (5.0)
$ 17.8 $ 18.2 $126.0 $134.2 $185.4 $197.3
The following summarizes operating income comparisons by business segment:
- - Gas distribution operating income decreased $1.3 million to $14.3
million for the third quarter due to higher depreciation. For the
nine- and twelve-month periods, operating income decreased $12.3
million and $18.4 million, respectively, primarily due to the impact
of warmer weather and higher depreciation.
- - Shipping operating income for the three-, nine- and twelve-month
periods increased $.8 million, $3.7 million and $5.2 million,
respectively, due to higher revenue per unit. Higher shipping
volumes to more profitable ports led to increases in revenues and
operating income.
In September 1995, Hurricanes Luis and Marilyn caused significant damage on
several of the Caribbean islands served by Tropical Shipping. For the
remainder of 1995, tourist-based cargo to hurricane-damaged areas is
expected to be negatively impacted, but there will be an increase in
shipments of construction materials and supplies. Tropical Shipping has
redeployed its vessels and added equipment to meet the needs of the region.
NICOR Inc. Page 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
RESULTS OF OPERATIONS
Details of various financial and operating information by segment can be
found in the tables on pages 11 and 12. The following summarizes the major
changes in NICOR's revenues and expenses.
Operating revenues decreased $8.9 million, $200 million and $342.3 million
for the three-, nine- and twelve-month periods, respectively, principally
due to lower natural gas costs at Northern Illinois Gas which are passed
through to customers. The impact of warmer weather on the gas distribution
segment also contributed to the decrease in the nine- and twelve-month
periods.
Gas distribution margin, defined as operating revenues less cost of gas and
revenue taxes, is shown in the following table for the periods ended
September 30. Margin decreased $6.8 million for the nine-month period and
$13.1 million for the twelve-month period due to the impact of warmer
weather. Margin per Mcf delivered decreased in the three-month period
primarily due to additional lower margin deliveries for electric power
generation.
Three months Nine months Twelve months
1995 1994 1995 1994 1995 1994
Gas distribution
margin (millions) $ 64.4 $ 64.6 $306.2 $313.0 $429.6 $442.7
Margin per Mcf
delivered 1.00 1.11 .86 .87 .86 .86
Operating and maintenance expense increased in all periods principally due
to higher costs in the shipping segment caused by increased shore and vessel
expenses.
Depreciation expense increased in the three-month period primarily as a
result of plant additions and the allocation of depreciation to interim
periods in the gas distribution segment. The increase for the nine- and
twelve-month periods is primarily due to plant additions in the gas
distribution segment.
Other income decreased for the nine- and twelve-month periods as the change
in interest on income tax adjustments more than offset higher interest
income, resulting from higher interest rates.
Interest on debt increased for the nine- and twelve-month periods due to the
combined impact of higher interest rates and increased borrowing levels.
The third quarter 1995 effective income tax rate increased to 34.4% from
24.2% in the 1994 period. The 1994 rate was unusually low due to
adjustments related to prior interim periods. A higher state tax provision
and less excess deferred taxes turning around contributed to the increase in
the effective income tax rate in all periods.
NICOR Inc. Page 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
FINANCIAL CONDITION
Net cash flow from operating activities for the twelve-month period
increased $38.1 million, reflecting the receipt of $40 million in purchased
gas refunds in the gas distribution segment. Net cash flow from operations
may fluctuate widely from one interim period to another due to the seasonal
nature of NICOR's businesses. The company generally relies on short-term
financing to meet temporary working capital needs.
NICOR and its gas distribution subsidiary maintain short-term credit
agreements with major domestic and foreign banks. At September 30, 1995,
these agreements, which serve as backup for the issuance of commercial
paper, totaled $340 million and the company had $143.2 million in commercial
paper outstanding.
In October 1995, Northern Illinois Gas issued $50 million of 7.26% First
Mortgage Bonds due in 2025. The net proceeds from the sale replenished
corporate funds which were used for the maturity of $50 million of 5-1/2%
unsecured notes in July 1995.
In September 1995, Tropical Shipping issued $22.5 million of 6.83% unsecured
senior notes due in September 2000. Proceeds from the sale were used for
replacement of a $12.5 million promissory note due in December 1996 and
for general corporate purposes.
During the third quarter of 1995, NICOR purchased and retired 256,100 common
shares having an aggregate cost of $6.7 million. Since the authorization of
the current $50 million stock repurchase program in 1994, the company has
purchased and retired 1.9 million shares at an aggregate cost of $45.6
million.
In March, the Board of Directors declared a quarterly dividend on common
stock of 32 cents per share, payable May 1, 1995. This payment represents
an annual rate of $1.28 per share, a two-cent increase over the $1.26 per
share established with the May 1, 1994 dividend.
RATE PROCEEDING
On May 8, 1995, Northern Illinois Gas filed with the Ill.C.C. for a general
rate increase. The Ill.C.C. has up to 11 months to decide the case. For
further information, see Regulatory Matters on page 5.
OTHER MATTERS
On April 27, 1995, the U.S. Court of Appeals for the Fifth Circuit issued an
opinion holding in NICOR Exploration Company's favor in its dispute with the
producer of gas from one well who is claiming entitlement to NGPA 108
prices. The Court subsequently denied rehearing of the matter. For further
information, see Contingencies beginning on page 5.
NICOR Inc. Page 10
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Continued)
OTHER MATTERS (Concluded)
In January 1994, Northern Illinois Gas began recovery of gas manufacturing
plant cleanup costs from its customers in accordance with an Ill.C.C.-
approved cost recovery plan. In April 1994, the Illinois Supreme Court
agreed to hear an appeal filed by a consumer group. The consumer group
argued that no cleanup costs should be recoverable from ratepayers.
Northern Illinois Gas and other utilities argued that they should be
entitled to recover capital costs in addition to cleanup costs. On
April 20, 1995, the Illinois Supreme Court issued an opinion upholding the
utilities' positions and returned the matter to the Ill.C.C., which entered
an order reflecting the Illinois Supreme Court's decision. For further
information, see Contingencies beginning on page 5.
Although unable to determine the outcome of these matters, management
believes that appropriate accruals have been recorded. Final disposition of
these matters is not expected to have a material impact on the company's
financial condition or results of operations.
<TABLE>
NICOR Inc. Page 11
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Continued)
OPERATING STATISTICS
Gas Distribution
Changes in weather can have a material effect on operating results; selected weather statistics are in the
table below. Operating revenues, deliveries and other data are as follows:
<CAPTION>
Three months ended Nine months ended Twelve months ended
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
Operating revenues (millions):
Sales
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Residential $ 72.0 $ 80.5 $ 571.5 $ 707.1 $ 803.6 $1,039.7
Commercial 15.6 19.0 148.2 197.8 210.4 292.5
Industrial 1.6 2.7 24.6 40.2 34.6 56.7
89.2 102.2 744.3 945.1 1,048.6 1,388.9
Transportation
Commercial 6.2 5.9 34.0 30.0 45.8 42.3
Industrial 12.8 10.6 45.3 37.8 58.7 51.4
19.0 16.5 79.3 67.8 104.5 93.7
Revenue taxes and other 9.3 10.5 72.2 90.8 94.0 120.2
$ 117.5 $ 129.2 $ 895.8 $1,103.7 $1,247.1 $1,602.8
Deliveries (Bcf):
Sales
Residential 15.4 14.9 148.5 153.7 210.6 227.8
Commercial 3.6 3.8 38.9 43.7 55.7 64.8
Industrial .4 .6 6.9 9.5 9.8 13.4
19.4 19.3 194.3 206.9 276.1 306.0
Transportation
Commercial 6.4 6.0 40.8 38.1 56.9 54.8
Industrial 38.6 32.6 121.8 113.4 165.4 154.0
45.0 38.6 162.6 151.5 222.3 208.8
64.4 57.9 356.9 358.4 498.4 514.8
Gas cost per Mcf sold $ 2.12 $ 2.80 $ 2.61 $ 3.39 $ 2.58 $ 3.40
Weather statistics:
Degree days 93 66 3,785 4,088 5,562 6,286
Percent colder (warmer) than normal 2 (27) (4) 4 (9) 3
Customers at end of period (thousands):
Sales
Residential 1,641.1 1,610.3
Commercial 139.1 139.0
Industrial 11.4 11.4
1,791.6 1,760.7
Transportation
Commercial 16.4 14.4
Industrial 2.4 2.2
18.8 16.6
1,810.4 1,777.3
</TABLE>
<TABLE>
NICOR Inc. Page 12
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Concluded)
OPERATING STATISTICS (Concluded)
Shipping
<CAPTION>
Three months ended Nine months ended Twelve months ended
September 30 September 30 September 30
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Operating revenues (millions) $ 38.5 $ 36.5 $ 115.5 $ 109.6 $ 158.9 $ 148.2
Operating income (millions) $ 4.5 $ 3.7 $ 15.2 $ 11.5 $ 22.3 $ 17.1
TEUs shipped (thousands)
Southbound 18.4 17.9 54.2 53.8 75.6 73.7
Northbound 4.0 3.8 11.7 12.6 15.7 16.8
Interisland 1.0 1.3 2.9 3.0 4.0 3.5
23.4 23.0 68.8 69.4 95.3 94.0
Revenue per TEU $ 1,566 $ 1,503 $ 1,593 $ 1,516 $ 1,585 $ 1,517
Ports served (at September 30) 23 22
Vessels owned (at September 30) 14 14
</TABLE>
NICOR Inc. Page 13
PART II - Other Information
Item 1. Legal Proceedings
For information concerning legal proceedings, see Contingencies in
Notes to Consolidated Financial Statements beginning on page 5,
which is incorporated herein by reference.
Item 6. Exhibits and Reports on Form 8-K
(a) See Exhibit Index on page 15 filed herewith.
(b) The company did not file a report on Form 8-K during the third
quarter of 1995.
NICOR Inc. Page 14
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.
NICOR Inc.
Date November 14, 1995 By DAVID L. CYRANOSKI
David L. Cyranoski
Senior Vice President, Secretary
and Controller
NICOR Inc. Page 15
Exhibit Index
Exhibit
Number Description of Document
4.01 * Supplemental Indenture, dated October 15, 1995, of Northern
Illinois Gas Company to Bank of America Illinois, Trustee, under
Indenture dated as of January 1, 1954. (File No. 1-7296, Form 10-Q
for the quarter ended September 30, 1995, Northern Illinois Gas
Company, Exhibit 4.01.)
Other debt instruments are omitted in accordance with
Item 601(b)(4)(iii)(A) of Regulation S-K. Copies of such
agreements will be furnished to the Commission upon request.
27.01 Financial Data Schedule.
* This exhibit has been previously filed with the Securities and Exchange
Commission and is incorporated herein by reference. The file number and
exhibit number are stated in parentheses in the description of such
exhibit.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENT OF INCOME, THE CONSOLIDATED BALANCE SHEET AND THE
CONSOLIDATED STATEMENT OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1653
<OTHER-PROPERTY-AND-INVEST> 111
<TOTAL-CURRENT-ASSETS> 234
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 81
<TOTAL-ASSETS> 2079
<COMMON> 126
<CAPITAL-SURPLUS-PAID-IN> 49
<RETAINED-EARNINGS> 493<F1>
<TOTAL-COMMON-STOCKHOLDERS-EQ> 668
9
0
<LONG-TERM-DEBT-NET> 397
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 23
<COMMERCIAL-PAPER-OBLIGATIONS> 143
<LONG-TERM-DEBT-CURRENT-PORT> 50
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 789
<TOT-CAPITALIZATION-AND-LIAB> 2079
<GROSS-OPERATING-REVENUE> 1014
<INCOME-TAX-EXPENSE> 35
<OTHER-OPERATING-EXPENSES> 888
<TOTAL-OPERATING-EXPENSES> 923
<OPERATING-INCOME-LOSS> 91
<OTHER-INCOME-NET> 3
<INCOME-BEFORE-INTEREST-EXPEN> 94
<TOTAL-INTEREST-EXPENSE> 30
<NET-INCOME> 64
0
<EARNINGS-AVAILABLE-FOR-COMM> 64
<COMMON-STOCK-DIVIDENDS> 49
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 307
<EPS-PRIMARY> 1.26
<EPS-DILUTED> 0
<FN>
<F1>SINCE DECEMBER 31, 1985.
</FN>
</TABLE>
