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 March 31, 1996
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 April 30, 1996, were
50,142,729.
NICOR Inc. Page i
Table of Contents
Page
Part I. Financial Information
Item 1. Financial Statements (Unaudited) 1
Consolidated Statement of Income -
Three and Twelve Months Ended
March 31, 1996 and 1995 2
Consolidated Statement of Cash Flows -
Three and Twelve Months Ended
March 31, 1996 and 1995 3
Consolidated Balance Sheet -
March 31, 1996 and 1995, and
December 31, 1995 4
Notes to the 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 12
Item 6. Exhibits and Reports on Form 8-K 12
Signature 13
Exhibit Index 14
Selected terms:
Ill.C.C. - Illinois Commerce Commission.
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.
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 Twelve months ended
March 31 March 31
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Operating revenues $ 700.9 $ 609.8 $1,571.2 $ 1,438.9
Operating expenses
Cost of gas 439.4 375.1 851.5 772.4
Operating and maintenance 77.5 68.5 296.3 272.9
Depreciation 49.4 44.7 116.4 107.3
Taxes, other than income taxes 52.5 47.4 109.1 103.8
618.8 535.7 1,373.3 1,256.4
Operating income 82.1 74.1 197.9 182.5
Other income (expense)
Interest income .5 .5 3.0 2.3
Other, net (.2) .2 2.8 4.1
.3 .7 5.8 6.4
Income before interest on debt
and income taxes 82.4 74.8 203.7 188.9
Interest on debt, net of
amounts capitalized 11.7 11.6 42.0 41.7
Income before income taxes 70.7 63.2 161.7 147.2
Income taxes 25.2 22.3 57.2 48.2
Net income 45.5 40.9 104.5 99.0
Dividends on preferred stock .1 .1 .4 .4
Earnings applicable to
common stock $ 45.4 $ 40.8 $ 104.1 $ 98.6
Average shares of common
stock outstanding 50.2 51.2 50.4 52.0
Earnings per average share
of common stock $ .90 $ .80 $ 2.06 $ 1.90
Dividends declared per share
of common stock $ .33 $ .32 $ 1.29 $ 1.265
<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>
Three months ended Twelve months ended
March 31 March 31
1996 1995 1996 1995
Operating activities
<S> <C> <C> <C> <C>
Net income $ 45.5 $ 40.9 $ 104.5 $ 99.0
Adjustments to reconcile net income to net cash flow
provided from continuing operations:
Depreciation 49.4 44.7 116.4 107.3
Deferred income tax expense (benefit) (10.4) (9.7) (3.9) (28.5)
Change in working capital items and other:
Receivables, less allowances (46.3) (4.2) (85.1) 72.6
Gas in storage 54.2 67.0 (5.8) (9.7)
Deferred/accrued gas costs (63.7) 74.2 (112.0) 45.9
Accounts payable 7.2 (67.2) 125.5 5.3
Accrued taxes 42.1 38.2 7.9 (3.9)
Temporary LIFO liquidation 96.7 80.7 16.0 (46.4)
Gas refunds due customers (10.4) 44.7 (33.2) 47.0
Other (3.4) (4.5) 2.2 3.8
Net cash flow provided from continuing operations 160.9 304.8 132.5 292.4
Net cash flow provided from (used for) discontinued
operations 1.2 (.6) (.9) (1.8)
Net cash flow provided from operating activities 162.1 304.2 131.6 290.6
Investing activities
Capital expenditures (19.5) (27.6) (148.8) (177.3)
Short-term investments (2.3) 17.2 (11.3) 15.7
Other (.3) .1 1.7 1.4
Net cash flow used for investing activities (22.1) (10.3) (158.4) (160.2)
Financing activities
Net proceeds from issuing long-term debt - - 72.0 99.1
Disbursements to retire long-term debt (50.0) - (112.5) (50.0)
Short-term borrowings (repayments), net (71.2) (229.4) 110.6 (16.5)
Dividends paid (16.2) (16.4) (65.1) (66.6)
Disbursements to reacquire stock (4.4) (15.8) (22.2) (67.2)
Other - .6 1.6 1.5
Net cash flow used for financing activities (141.8) (261.0) (15.6) (99.7)
Net increase (decrease) in cash and cash equivalents (1.8) 32.9 (42.4) 30.7
Cash and cash equivalents, beginning of period 6.8 14.5 47.4 16.7
Cash and cash equivalents, end of period $ 5.0 $ 47.4 $ 5.0 $ 47.4
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
NICOR Inc. Page 4
Consolidated Balance Sheet (Unaudited)
(Millions)
<CAPTION>
March 31 December 31 March 31
Assets 1996 1995 1995
Current assets
<S> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents $ 5.0 $ 6.8 $ 47.4
Short-term investments, at cost which approximates market 21.9 19.6 10.6
Receivables, less allowances of $8.8, $5.8 and $7.2, respectively 308.0 261.7 222.9
Deferred gas costs 72.4 8.7 -
Gas in storage, at last-in, first-out (LIFO) cost 8.8 63.0 3.0
Other 28.4 30.0 26.3
444.5 389.8 310.2
Property, plant and equipment, at cost
Gas distribution 2,901.5 2,886.2 2,772.0
Shipping 224.3 223.8 223.3
Other .5 .4 .2
3,126.3 3,110.4 2,995.5
Less accumulated depreciation 1,377.8 1,331.1 1,275.5
1,748.5 1,779.3 1,720.0
Other assets 88.3 90.0 74.6
$ 2,281.3 $ 2,259.1 $ 2,104.8
Liabilities and Capitalization
Current liabilities
Long-term obligations due within one year $ 25.0 $ 50.0 $ 50.0
Short-term borrowings 127.6 198.8 17.0
Accounts payable 314.3 308.4 191.0
Temporary LIFO liquidation 96.7 - 80.7
Accrued taxes 54.7 12.6 46.8
Gas refunds due customers 13.8 24.2 47.0
Accrued gas costs - - 39.6
Other 25.4 31.7 24.3
657.5 625.7 496.4
Deferred credits and other liabilities
Deferred income taxes 172.5 180.8 160.4
Regulatory income tax liability 85.6 86.5 89.3
Unamortized investment tax credits 50.3 50.8 53.0
Other 150.6 150.1 144.3
459.0 468.2 447.0
Capitalization
Long-term debt 443.8 468.7 459.0
Preferred stock
Redeemable 8.8 8.8 8.8
Nonredeemable .1 .1 .1
Common equity
Common stock 125.4 125.8 127.3
Paid-in capital 45.6 49.6 64.3
Retained earnings 541.1 512.2 501.9
1,164.8 1,165.2 1,161.4
$ 2,281.3 $ 2,259.1 $ 2,104.8
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
NICOR Inc. Page 5
Notes To The 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. In April 1996, the gas
distribution plant composite depreciation rate increased to 4.1 percent from
3.7 percent.
Gas in Storage. Gas in storage injections and withdrawals are valued using
the last-in, first-out (LIFO) method on a calendar-year basis. For interim
periods, the difference between current replacement cost and the LIFO cost
for quantities of gas temporarily withdrawn from storage is recorded in cost
of gas as a temporary LIFO liquidation.
CASH FLOW INFORMATION
Income taxes paid, net of refunds, and interest paid, net of amounts
capitalized, for the periods ended March 31 were (millions):
Three months Twelve months
1996 1995 1996 1995
Income taxes paid $ 1.7 $ 1.4 $53.1 $75.1
Interest paid 18.2 18.8 41.0 41.4
REGULATORY MATTERS
Rate Proceeding. On April 3, 1996, the Ill.C.C. granted Northern Illinois
Gas a $33.7 million general rate increase, of which $12 million relates to
the change in the company's composite depreciation rate noted above. The
order, effective April 11, 1996, allows the company a rate of return on
original-cost rate base of 9.67 percent, which reflects an 11.13 percent
cost of common equity. The new rate structure will allow Northern Illinois
Gas to recover a larger proportion of its fixed costs during warmer months.
The overall result is that the company's earnings will be less sensitive to
the effects of weather and the seasonal variations in quarterly earnings
will be reduced.
Several parties, including Northern Illinois Gas, have filed Requests for
Rehearing, which are pending before the Ill.C.C.. The Ill.C.C. has up to 20
days after receipt to act on the rehearing requests.
LONG-TERM DEBT
In March 1996, $50 million of 4-1/2% Northern Illinois Gas First Mortgage
Bonds matured. The maturity was financed with general corporate funds.
NICOR Inc. Page 6
Notes To The Consolidated Financial Statements (Unaudited)
(Concluded)
CONTINGENCIES
The company is involved in legal or administrative proceedings before
various courts and agencies with respect to rates, taxes and other matters.
Current environmental laws require treatment of certain waste materials on
sites owned by NICOR that may have been generated by two barge-cleaning
facilities previously owned and operated by certain discontinued businesses
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.
Until the early 1950s, manufactured gas facilities were operated in the
Northern Illinois Gas service territory. Manufactured gas is now known to
have created various by-products that may still be present at these sites.
Current environmental laws may require cleanup of these former manufactured
gas plant sites ("MGPs"). The company has identified up to 40 properties in
its service territory believed to be the location of such sites. Of these
40 properties, Northern Illinois Gas currently owns 15 and formerly owned or
leased 13. The remaining 12 were never owned or leased by the company.
Information has been presented regarding preliminary reviews of the
company's currently owned and formerly owned or leased properties to the
Illinois Environmental Protection Agency. More detailed investigations are
currently in progress or planned at many of these sites. At certain sites,
the current owners are seeking to allocate cleanup costs to former owners or
lessees, 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 future costs which, based on industry experience, could be
significant. Costs are currently being recovered pursuant to Ill.C.C.
authorization.
On December 20, 1995, Northern Illinois Gas filed suit against certain
insurance carriers in the Circuit Court of Cook County. This suit seeks to
declare the insurance carriers liable under policies in effect primarily
between the years 1954 and 1985 for costs incurred or to be incurred for
environmental cleanup of former manufactured gas plant sites. Presently,
management cannot predict the timing or outcome of this lawsuit. Any
recoveries from such litigation or other sources will be flowed back to the
company's customers.
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. 1995 Annual Report on
Form 10-K.
NICOR's first quarter 1996 net income was $45.5 million compared with
$40.9 million in 1995 and earnings per common share were $.90 compared with
$.80 a year ago. Net income for the twelve months ended March 31, 1996, was
$104.5 million versus $99 million in the 1995 period and earnings per common
share were $2.06 compared with $1.90 in the prior period. For both periods,
the increase was primarily due to higher operating results at Northern
Illinois Gas. Per share results in each period benefited from the company's
common stock buyback programs.
Operating income (loss) for the periods ended March 31 by business segment
was (millions):
Three months Twelve months
1996 1995 1996 1995
Gas distribution $ 75.9 $ 68.6 $178.0 $166.0
Shipping 6.9 6.3 24.0 20.5
Other (.7) (.8) (4.1) (4.0)
$ 82.1 $ 74.1 $197.9 $182.5
The following summarizes operating income comparisons by business segment:
- - Gas distribution operating income increased $7.3 million and
$12 million for the three- and twelve-month periods, respectively,
due to an increase in natural gas deliveries resulting from colder
weather and higher demand unrelated to weather, partially offset by
an increase in depreciation. The impact of increased deliveries on
the twelve-month period was also partially offset by higher
operating and maintenance expenses.
- - Shipping operating income rose $.6 million for the three-month
period primarily due to a 10 percent increase in volumes shipped.
For the twelve-month period, operating income rose $3.5 million due
to higher revenue per unit related to an improved cargo mix,
additional volumes shipped and increased chartering activity.
RESULTS OF OPERATIONS
Details of various financial and operating information by segment can be
found in the tables on pages 10 and 11. The following summarizes the major
changes in NICOR's revenues and expenses.
NICOR Inc. Page 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
RESULTS OF OPERATIONS (Concluded)
Operating revenues increased $91.1 million to $700.9 million and
$132.3 million to $1,571.2 million for the three- and twelve-month periods,
respectively. For both periods, the increase was primarily due to higher
revenues in the gas distribution segment resulting principally from the
increase in deliveries noted on the previous page. The recovery from
customers of lower natural gas costs partially offset the positive impact of
increased deliveries on revenues for the twelve-month period.
Gas distribution margin, defined as operating revenues less cost of gas and
revenue taxes, is shown in the following table for the periods ended
March 31. Margin increased $14.1 million and $30.1 million for the three-
and twelve-month periods, respectively, due to the positive impact of colder
weather and higher demand unrelated to weather. The decrease in margin per
Mcf delivered in the twelve-month period related to several factors,
including the impact of lower margin deliveries due to both colder weather
and increased deliveries to other utilities.
Three months Twelve months
1996 1995 1996 1995
Gas distribution margin
(Millions) $168.8 $154.7 $456.4 $426.3
Margin per Mcf delivered .74 .75 .82 .88
Operating and maintenance expense increased $9 million for the three-month
period largely due to higher costs in the shipping segment caused primarily
by increased volume-related shore and vessel costs. For the twelve-month
period, operating and maintenance expense increased $23.4 million, primarily
due to higher volume-related operating expenses in the shipping segment and
higher administrative and general costs in the gas distribution segment.
Depreciation expense increased in both periods primarily due to the change
in the gas distribution plant composite depreciation rate and gas plant
additions. For further information on the change in the plant composite
depreciation rate, see Accounting Policies on page 5.
Other income decreased for the twelve-month period as the change in interest
on income tax adjustments more than offset higher interest income, resulting
primarily from higher interest rates.
The effective income tax rate rose to 35.4 percent from 32.7 percent for the
twelve-month period primarily due to a higher state tax provision and less
excess deferred taxes turning around.
The company has been evaluating its discontinued operations reserve and it
appears that a positive adjustment may be appropriate in the near future.
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 decreased $142.1 million and
$159 million for the three- and twelve-month periods, respectively,
primarily due to the timing of gas cost recoveries and the impact of a 1995
gas pipeline refund 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 March 31, 1996, these
agreements, which serve as backup for the issuance of commercial paper,
totaled $340 million and the company had $127.6 million of commercial paper
outstanding. At March 31, 1996, the unused lines of credit under these
credit agreements were $212.4 million.
In March 1996, $50 million of 4-1/2% Northern Illinois Gas First Mortgage
Bonds matured. The maturity was financed with general corporate funds.
In March 1996, the company completed the $50 million common stock buyback
program initiated in October 1994. During the first quarter of 1996, NICOR
purchased and retired approximately 160,000 common shares at an aggregate
cost of $4.4 million.
Effective with the dividend paid on May 1, 1996, NICOR's quarterly dividend
on common stock was increased 3.1 percent to 33 cents per share. This
payment represents an annual rate of $1.32 per share, a four-cent increase
over the $1.28 per share established with the May 1, 1995 dividend.
RATE PROCEEDING
On April 3, 1996, the Ill.C.C. granted Northern Illinois Gas a $33.7
million, 2.8 percent general rate increase effective April 11, 1996. For
further information, see Regulatory Matters on page 5.
<TABLE>
NICOR Inc. Page 10
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 Twelve months ended
March 31 March 31
1996 1995 1996 1995
Operating revenues (Millions):
Sales
<S> <C> <C> <C> <C>
Residential $ 417.5 $ 367.8 $ 899.6 $ 828.7
Commercial 117.4 100.7 234.5 218.1
Industrial 23.1 18.3 40.6 37.5
558.0 486.8 1,174.7 1,084.3
Transportation
Commercial 20.3 19.2 51.4 44.3
Industrial 17.9 19.0 61.5 53.9
38.2 38.2 112.9 98.2
Revenue taxes and other 56.3 44.4 108.2 98.7
$ 652.5 $ 569.4 $1,395.8 $1,281.2
Deliveries (Bcf):
Sales
Residential 115.0 99.9 246.6 205.9
Commercial 31.9 27.0 64.2 54.8
Industrial 6.7 5.2 11.9 10.1
153.6 132.1 322.7 270.8
Transportation
Commercial 33.8 25.1 72.7 55.6
Industrial 42.2 48.0 159.8 160.8
76.0 73.1 232.5 216.4
229.6 205.2 555.2 487.2
Gas cost per Mcf sold $ 2.79 $ 2.77 $ 2.55 $ 2.78
Weather statistics:
Degree days 3,249 2,966 6,394 5,438
Percent colder (warmer) than normal 1.8 (6.5) 4.2 (11.3)
Customers at end of period (Thousands):
Sales
Residential 1,668.0 1,639.3
Commercial 142.4 142.0
Industrial 11.7 11.7
1,822.1 1,793.0
Transportation
Commercial 17.4 15.9
Industrial 2.5 2.3
19.9 18.2
1,842.0 1,811.2
</TABLE>
<TABLE>
NICOR Inc. Page 11
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Concluded)
OPERATING STATISTICS (Concluded)
<CAPTION>
Three months ended Twelve months ended
March 31 March 31
1996 1995 1996 1995
Shipping
<S> <C> <C> <C> <C>
Operating revenues (Millions) $ 44.7 $ 39.7 $ 168.5 $ 155.8
Operating income (Millions) $ 6.9 $ 6.3 $ 24.0 $ 20.5
TEUs shipped (Thousands)
Southbound 21.0 18.4 78.9 75.7
Northbound 3.2 4.0 14.8 16.0
Interisland 1.6 1.1 5.5 4.6
25.8 23.5 99.2 96.3
Revenue per TEU $ 1,642 $ 1,609 $ 1,616 $ 1,542
Ports served (at March 31) 23 24
Vessels owned (at March 31) 14 14
</TABLE>
NICOR Inc. Page 12
PART II - Other Information
Item 1. Legal Proceedings
For information concerning legal proceedings, see Contingencies in
Notes to the Consolidated Financial Statements on page 6, which is
incorporated herein by reference.
Item 6. Exhibits and Reports on Form 8-K
(a) See Exhibit Index on page 14 filed herewith.
(b) The company did not file a report on Form 8-K during the first
quarter of 1996.
NICOR Inc. Page 13
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 May 8, 1996 By DAVID L. CYRANOSKI
David L. Cyranoski
Senior Vice President,
Secretary and Controller
NICOR Inc. Page 14
Exhibit Index
Exhibit
Number Description of Document
27.01 Financial Data Schedule.
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1641
<OTHER-PROPERTY-AND-INVEST> 107
<TOTAL-CURRENT-ASSETS> 445
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 88
<TOTAL-ASSETS> 2281
<COMMON> 125
<CAPITAL-SURPLUS-PAID-IN> 46
<RETAINED-EARNINGS> 541
<TOTAL-COMMON-STOCKHOLDERS-EQ> 712
9
0
<LONG-TERM-DEBT-NET> 421
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 23
<COMMERCIAL-PAPER-OBLIGATIONS> 128
<LONG-TERM-DEBT-CURRENT-PORT> 25
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 963
<TOT-CAPITALIZATION-AND-LIAB> 2281
<GROSS-OPERATING-REVENUE> 701
<INCOME-TAX-EXPENSE> 25
<OTHER-OPERATING-EXPENSES> 619
<TOTAL-OPERATING-EXPENSES> 644
<OPERATING-INCOME-LOSS> 57
<OTHER-INCOME-NET> 0
<INCOME-BEFORE-INTEREST-EXPEN> 57
<TOTAL-INTEREST-EXPENSE> 11
<NET-INCOME> 46
1
<EARNINGS-AVAILABLE-FOR-COMM> 45
<COMMON-STOCK-DIVIDENDS> 17
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 162
<EPS-PRIMARY> .90
<EPS-DILUTED> 0
</TABLE>
