<PAGE> 1
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: 0-82
NORTH CAROLINA NATURAL GAS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 56-0646235
------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 Rowan Street, Fayetteville, North Carolina 28301-4993
----------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(910) 483-0315
--------------
(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 [ ]
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date.
Common Stock, $2.50 par value 6,535,071
----------------------------- ----------------
Class Number of Shares
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
ASSETS
March 31, September 30,
1996 1995
--------- -------------
Gas Utility Plant $272,704 $265,289
Less-Accumulated Depreciation and
Amortization (91,055) (86,493)
------- -------
Utility Plant, net 181,649 178,796
------- -------
Nonutility Property 5,788 5,675
Less-Accumulated Deprecation (2,294) (2,589)
------- -------
Nonutility Property, net 3,494 3,086
------- -------
Current Assets:
Cash 1,209 1,639
Unrestricted Temporary Cash Investments 11,000 -
Restricted Temporary Cash Investments 5,454 4,785
Accounts Receivable, Less Reserve 28,108 12,952
Recoverable Purchased Gas Costs 3,938 -
Inventories, at Average Cost -
Gas in Storage 2,422 7,207
Materials, Supplies & Merchandise 3,940 3,679
Deferred Gas Cost-Unbilled Volumes 2,266 328
Other Current Assets 463 272
------- -------
Total Current Assets 58,800 30,862
------- -------
Investment in Exploration Ventures 86 87
Deferred Charges and Other Assets 2,325 2,049
------- -------
Total Assets $246,354 $214,880
======= =======
(The accompanying notes are an integral part of these balance sheets.)
<PAGE> 3
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
CAPITALIZATION AND LIABILITIES
March 31, September 30,
1996 1995
--------- -------------
Capitalization:
Stockholders' Investment:
Common Stock, Par Value $2.50; Shares
Outstanding 03/31/96, 6,535;
09/30/95, 6,477 $ 16,338 $ 16,193
Capital in Excess of Par Value 28,715 27,513
Retained Earnings 58,767 49,072
------- -------
Total Stockholders' Investment 103,820 92,778
------- -------
Long-Term Debt 65,000 62,000
------- -------
Total Capitalization 168,820 154,778
------- -------
Current Liabilities:
Current Maturities of Long-Term Debt 2,000 2,000
Accounts Payable 22,180 12,390
Restricted Supplier Refunds 5,454 4,785
Refunds Payable to Customers 3,492 3,646
Taxes Payable 6,564 1,871
Customer Deposits 2,252 1,964
Accrued Interest 2,466 1,626
Other Current Liabilities 2,634 2,290
------- -------
Total Current Liabilities 47,042 30,572
------- -------
Other Credits:
Deferred Income Taxes 21,459 20,584
Unamortized Investment Tax Credits 2,820 2,920
Regulatory Liability Related to Income Taxes 3,191 3,300
Postretirement and Postemployment
Benefit Liability 1,996 1,646
Other 1,026 1,080
------- -------
Total Other Credits 30,492 29,530
------- -------
Total Capitalization and Liabilities $246,354 $214,880
======= =======
(The accompanying notes are an integral part of these balance sheets.)
<PAGE> 4
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Three Months Ended March 31, 1996 and 1995
(in thousands except per share amounts)
1996 1995
------- --------
Operating Revenues $ 73,535 $ 52,513
Cost of Gas 47,221 30,682
------- -------
Gross Margin 26,314 21,831
------- -------
Operating Expenses and Taxes:
Operations and Maintenance 5,546 5,384
Depreciation 2,363 2,002
General Taxes 3,025 2,324
Income Taxes 5,269 4,086
------- -------
Total Operating Expenses and Taxes 16,203 13,796
------- -------
Operating Income 10,111 8,035
Other Income, net 696 800
------- -------
Income Before Utility Interest Charges 10,807 8,835
Utility Interest Charges 1,284 1,214
------- -------
Net Income $ 9,523 $ 7,621
======= =======
Average Common Shares Outstanding 6,518 6,396
======= =======
Earnings Per Share $ 1.46 $ 1.19
======= =======
Dividends Declared Per Share $ .325 $ .305
======= =======
(The accompanying notes are an integral part of these statements.)
<PAGE> 5
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Six Months Ended March 31, 1996 and 1995
(in thousands except per share amounts)
1996 1995
-------- --------
Operating Revenues $120,344 $ 86,928
Cost of Gas 77,510 50,661
------- -------
Gross Margin $ 42,834 $ 36,267
------- -------
Operating Expenses and Taxes:
Operations and Maintenance 10,620 10,348
Depreciation 4,626 3,933
General Taxes 5,107 3,966
Income Taxes 7,415 5,895
------- -------
Total Operating Expenses and Taxes 27,768 24,142
------- -------
Operating Income 15,066 12,125
Other Income, net 1,354 1,094
------- -------
Income Before Utility Interest Charges 16,420 13,219
Utility Interest Charges 2,630 2,281
------- -------
Net Income $ 13,790 $ 10,938
======= =======
Average Common Shares Outstanding 6,499 6,382
======= =======
Earnings Per Share $ 2.12 $ 1.71
======= =======
Dividends Declared Per Share $ .63 $ .595
======= =======
(The accompanying notes are an integral part of these statements.)
<PAGE> 6
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
For the Twelve Months Ended March 31, 1996 and 1995
(in thousands except per share amounts)
1996 1995
-------- --------
Operating Revenues $179,088 $142,568
Cost of Gas 114,604 87,420
------- -------
Gross Margin 64,484 55,148
------- -------
Operating Expenses and Taxes:
Operations and Maintenance 21,343 20,028
Depreciation 8,741 7,679
General Taxes 8,238 6,924
Income Taxes 7,986 6,096
------- -------
Total Operating Expenses and Taxes 46,308 40,727
------- -------
Operating Income 18,176 14,421
Other Income, net 1,283 945
------- -------
Income Before Utility Interest Charges 19,459 15,366
Utility Interest Charges 4,797 4,273
------- -------
Net Income $ 14,662 $ 11,093
======= =======
Average Common Shares Outstanding 6,469 6,365
======= =======
Earnings Per Share $ 2.27 $ 1.74
======== =======
Dividends Declared Per Share $ 1.24 $ 1.175
======== =======
(The accompanying notes are an integral part of these statements.)
<PAGE> 7
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended March 31, 1996 and 1995
(in thousands)
1996 1995
-------- --------
Cash Flows From Operating Activities:
Net Income $ 13,790 $ 10,938
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation and amortization 4,819 3,950
Change in deferred income taxes and
deferred investment tax credits, net 667 668
Change in other current assets and liabilities (1,437) 8,298
Other 296 417
------- -------
Net cash provided by operating activities 18,135 24,271
------- -------
Cash Flows From Investing Activities:
Property additions (7,635) (14,348)
Other, net (182) 81
------- -------
Net cash used in investing activities (7,817) (14,267)
------- -------
Cash Flows From Financing Activities
Decrease in notes payable (27,000) (6,000)
Issuance of long-term debt 30,000 -
Cash dividends paid (4,095) (3,797)
Issuance of common stock through dividend
reinvestment, employee stock purchase, and
key employee stock option plans 1,347 886
------- -------
Net cash provided by (used in)
financing activities 252 (8,911)
------- -------
Net increase in cash and temporary
cash investments 10,570 1,093
Cash and temporary cash investments,
beginning of period 1,639 158
------- -------
Cash and temporary cash investments,
end of period $ 12,209 $ 1,251
======= =======
Interest, net of amounts capitalized $ 2,012 $ 2,590
Income taxes, net of refunds 2,843 1,887
(The accompanying notes are an integral part of these statements.)
<PAGE> 8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
Note 1: The condensed financial statements included in this report reflect
only normal recurring adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the periods shown. Because
of the seasonal nature of the Company's business, the results of operations
for the six month period ended March 31, 1996 are not necessarily indicative
of the results for the full year. These financial statements have been
prepared by the Company, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. 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 such rules and regulations, although the Company believes that
the disclosures are adequate to make the information presented not misleading.
It is suggested that these condensed financial statements be read in
conjunction with the financial statements and the notes thereto included in
the Company's annual report for the fiscal year ended September 30, 1995.
Note 2: Long-Term Debt at March 31, 1996:
Amount Due
Within
Issue One Year Total
----------------------- ---------- ----------
7.15% Senior Notes, due 11/15/15 $ - $30,000,000
9.21% Debentures, Series C, due 11/15/11 - 25,000,000
8.75% Debentures, Series B, due 06/15/01 2,000,000 12,000,000
--------- ----------
Long-Term Debt $2,000,000 $67,000,000
========= ==========
Note 3: During the six months ended March 31, 1996, the Company received
additional supplier refunds of $542,461 from Transco and Columbia. Upon
order of the NCUC, the Company has invested all of these funds in U.S.
Treasury securities until such time as the Commission orders the funds
transferred to an Expansion Fund (the Fund). The Fund is administered by
the Commission pursuant to legislation passed in July 1991, and it
encourages the expansion of Natural Gas service into unserved areas of
the State, including substantial portions of the Company's franchised
service territory. At March 31, 1996, $5.4 million of temporary cash
investments are restricted for transfer to the Fund which was established
for the Company by Order of the NCUC dated February 8, 1993. On April 30,
1993 and October 19, 1994, respectively, the Company transferred $3.8
million and $6.6 million to the Fund. At March 31, 1996, a total of $11.9
million is in the Fund and is available to the Company only upon application
to the NCUC for an expansion project approved by the NCUC.
<PAGE> 9
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(1) Material Changes in Financial Condition
Current cash requirements are financed primarily through internally
generated cash, the issuance of new common stock through dividend
reinvestment, employee stock purchase and key employee stock option plans,
and committed bank lines of credit totaling $25 million plus the cost of
gas in storage. At March 31, 1996, no loans were outstanding under the
lines of credit compared to $27 million outstanding at September 30, 1995.
The amount outstanding at September 30, 1995 was classified as long-term
debt on the Condensed Consolidated Balance Sheet because in September 1995
the Company arranged a private placement of $30 million of its 7.15% Senior
Notes due 2015. The transaction closed November 10, 1995, and all short-term
debt was repaid.
Construction spending was $7.6 million for the six months ended March
31, 1996 compared to $14.3 million for the same period in 1995. This
decrease was due to nonrecurring expenditures for system strengthening and
the Mt. Olive expansion project in 1994. Construction expenditures for the
remainder of the fiscal year 1996 are projected at $12 million. Management
believes that the Company's lines of credit and cash provided from operating
activities will be sufficient to satisfy the Company's anticipated short-term
cash requirements during the remainder of fiscal year 1996.
The Company's business is seasonal in nature as fluctuations in weather
dictate injecting and withdrawing from Company storage and billings to
residential and commerical customers. Injections of natural gas into storage
and a reduction in customer billings occur during the periods of warm weather
(April through October). Withdrawals from storage and increased customer
billings occur during periods of cold weather (November through March). This
seasonality is primarily the reason for the decrease in gas in storage and
the increase in accounts receivable at March 31, 1996 as compared to
September 30, 1995.
Net cash provided by operating activities decreased $6.1 million for
the six months ended March 31, 1996 as compared to the same period last year.
This decrease is due primarily to (1) an increase in customer accounts
receivable caused by higher gas consumption of residential and commercial
customers at higher prices, and (2) a decrease in refunds payable to customers
caused by the actual cost of gas being higher than the cost of gas underlying
the Company's sales rates which have increased substantially during the
fiscal year due to colder weather.
Net cash provided by financing activities increased $9.1 million for
the six months ended March 31, 1996 as compared to the same period last
year. The primary reason for this increase was the private placement of
$30 million Senior Notes used to reduce the short-term debt, which was
partially offset by an increase in dividends paid to stockholders.
<PAGE> 10
(2) Material Changes in Results of Operations
Net income increased $1.9 million, $2.9 million, and $3.6 million
while earnings per share increased $.27, $.41, and $.51, respectively, for
the three month, six month and twelve month periods ended March 31, 1996 as
compared to the same periods last year. Significant factors having a
favorable impact on results of operations for these periods were (1) a
general rate increase effective November 1, 1995; (2) higher sales and
transportation volumes driven by above-average customer growth and colder
than normal weahter; (3) a 5.3% increase in customer base which resulted in
increased facilities charges as well as increased sales volumes; and (4)
higher earnings realized by the Company's propane division and subsidiary
gas marketing activities in all periods.
Gross margins increased $4.5 million, $6.6 million, and $9.3 million,
respectively, for the three month, six month and twelve month periods ended
March 31, 1996 compared to the same periods last year. The chart below
compares margins for the three month, six month and twelve month periods
by customer class (000's omitted):
GROSS MARGIN BY CUSTOMER CLASS
3 Months 6 Months 12 Months
---------------- -------------- ---------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
Residential $10,951 $ 7,578 $16,145 $11,625 $21,773 $16,789
Commercial 5,888 4,312 8,889 6,692 12,162 9,729
Industrial 6,192 7,000 12,244 12,965 23,276 22,215
Municipal 3,283 2,941 5,556 4,985 7,273 6,415
------ ------ ------ ------ ------ ------
Total $26,314 $21,831 $42,834 $36,267 $64,484 $55,148
====== ====== ====== ====== ====== ======
Residential, commercial and municipal margins increased in all periods
because of the November 1, 1995 general rate increase, continued strong
customer growth and additional sales and transportation volumes resulting
from the customer growth and colder weather. However, the Company's Weather
Normalization Adjustment ratemaking mechanism largely mitigates the increases
in margin to residential and commercial due to colder-than-normal weather.
Gross margin for the industrial class was up $1.1 million for the twelve
months period because of increases in sales and transportation volumes to
electric power generation and process gas users. The three and six month
gross margins declined due to (1) more weather-induced curtailments, and
(2) the fact that the Industrial Sales Tracker (IST) ratemaking mechanism
which stabilized margins regardless of volume throughput was no longer in
the Company's rates.
<PAGE> 11
The chart below shows sales and transportation throughput volumes
(in thousands of dekatherms) by customer class for the three month, six
month and twelve month periods for 1996 and 1995:
THROUGHPUT VOLUMES (Mdt) BY CUSTOMER CLASS
3 Months 6 Months 12 Months
--------------- -------------- ---------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
Residential 4,012 3,241 5,531 4,366 6,732 5,560
Commercial 2,346 1,921 3,578 2,884 5,212 4,457
Industrial 6,085 7,180 13,446 14,713 32,432 29,389
Municipal 3,585 3,103 6,514 5,442 9,338 8,046
------ ------ ------ ------ ------ ------
Total 16,028 15,445 29,069 27,405 53,714 47,452
====== ====== ====== ====== ====== ======
The following chart shows the same total throughput volumes classified
by sales and transportation:
THROUGHPUT VOLUMES (Mdt) BY TYPE OF SERVICE
3 Months 6 Months 12 Months
--------------- --------------- ---------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
Sales 14,440 13,399 25,336 21,132 38,919 32,570
Transportation 1,588 2,046 3,733 6,273 14,795 14,882
------ ------ ------ ------ ------ ------
Total 16,028 15,445 29,069 27,405 53,714 47,452
====== ====== ====== ====== ====== ======
Total throughput volumes increased because of the substantial increase
in demand for gas in the Company's service area from all customer classes.
However, in all periods, transportation volumes decreased while sales volumes
increased because (1) the rising price of natural gas caused some customers
to switch to sales service from transportation service; (2) more weather-
induced curtailments of the larger industrial boiler fuel customers who use
heavy oil as an alternative fuel; and (3) colder weather caused residential,
commercial and municipal sales to increase significantly.
<PAGE> 12
The Company earns the same profit margin on transportation of customer-
owned gas as it earns from sales transactions to those customers. However,
changes in the mix of transportation and sales volumes can have significant
impacts on operating revenues and cost of gas, because the commodity cost of
gas associated with transportation volumes is paid by the customer directly
to the customer's supplier and is, therefore, not incurred nor billed by the
Company.
Operating revenues increased $21.0 million, $33.4 million, and $36.5
million, respectively, for the three month, six month, and twelve month
periods ended March 31, 1996 as compared to the same periods last year.
The primary factors causing these increases were (1) an increase of 5.3% in
the customer base; (2) increased sales volumes; (3) higher natural gas
commodity prices; and (4) the general rate increase.
Cost of gas increased $16.5 million, $26.9 million, and $27.2 million,
respectively, for the three month, six month, and twelve month periods ended
March 31, 1996 as compared to the same periods last year. These increases
were caused by increased quantities purchased related to higher sales volumes
caused by industrial customers switching from transportation service to sales
service and an increase in commodity cost of gas of 83%, 50%, and 23% for
the three month, six month and twelve month periods, respectively.
Operations and maintenance expenses increased $162,000, $272,000, and
$1,315,000, respectively, for the three month, six month and twelve month
periods ended March 31, 1996 as compared to the same periods last year.
Affecting all periods were increased transmission operations expenses,
distribution maintenance expenses, higher wages and higher costs associated
with the addition of 7,200 new customers from March 31, 1995 to March 31,
1996. Salaries and wages represent a substantial amount of the Company's
operations and maintenance expenses, and they increased approximately 10%
during the twelve months ended March 31, 1996 due to the hiring of
additional employees related to the Company's growth and wage and salary
increases to existing employees. The second largest factor was the
increased expense of higher provisions for postretirement and postemployment
benefit obligations related to FAS 106 and FAS 112, respectively.
The rate of increase in operations and maintenance expenses declined in
the three months and six months ended March 31, 1996 principally because of
a nonrecurring reduction in group medical insurance costs, together with
planned reductions in maintenance, demonstration and selling expenses and
travel-related expenses. Management expects that on a going-forward basis,
operations and maintenance expenses will increase at a rate somewhat greater
than the overall inflation rate because of the Company's ongoing customer
growth rate of 5-6% annually.
Depreciation expense increased in all periods as compared to the same
periods last year. These increases were caused by (1) the addition of
utility plant in service, primarily transmission and distribution plant,
related to system expansion and customer growth; and (2) an increase in the
depreciation rate which became effective concurrently with the Company's
general rate case, November 1, 1995.
<PAGE> 13
General taxes increased in all periods as compared to the same periods
last year. The most significant tax is the state gross receipts tax which
is based on revenues and, therefore, it tracks the change in revenues. Also,
higher property and payroll taxes affected all periods.
Income taxes increased $1.1 million, $1.5 million, and $1.9 million,
respectively, for the three month, six month and twelve month periods
compared to 1995. These increases were caused by an increase in operating
income.
Other income, net, decreased $104,000 in the three month period ended
March 31, 1996 as compared to last year. This decrease was caused by a
write-down of certain non-utility assets whose realization is uncertain
and lower transportation volumes, and thus, lower sales in the Company's
Cape Fear Energy subsidiary. However, this was partially offset by
increased profits from the Company's propane division and higher revenues
and margins generated by new sales in the Company's NCNG Exploration
subsidiary.
Other income, net, increased $260,000 and $338,000, respectively, for
the six and twelve month periods ended March 31, 1996 as compared to the
same periods last year. These increases were caused primarily by increased
profits from the Company's propane division and merchandising business.
Partially offsetting these increases was the write-down of non-utility
assets as stated above.
Utility interest charges increased $70,000, $349,000, and $524,000,
respectively, for the three month, six month, and twelve month periods
ended March 31, 1996 as compared to the same periods last year. Affecting
all periods were (1) increased interest expense on long-term debt related
to the November 10, 1995 issuance of $30,000,000 principal amount of 7.15%
Senior Notes, offset somewhat by repayment of a short-term debt then
outstanding and (2) a decrease in allowance for funds used during
construction (AFUDC) due to less construction work in progress.
<PAGE> 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in the Rights of the Company's Security Holders
None.
Item 3. Default Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
<PAGE> 15
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.
NORTH CAROLINA NATURAL GAS CORPORATION
(Registrant)
Date: May 14, 1996 /s/ Gerald A. Teele
------------------------------------
Gerald A. Teele
Senior Vice President, Treasurer and
Chief Financial Officer
(Principal Financial Officer)
Date: May 14, 1996 /s/ Ronald J. Josephson
-------------------------------------
Ronald J. Josephson
Vice President-Financial Services
(Principal Accounting Officer)
<PAGE> 16
NORTH CAROLINA NATURAL GAS CORPORATION AND SUBSIDIARIES
INDEX OF EXHIBITS
The following exhibit is filed as part of this Form 10-Q for the
period ended March 31, 1996.
Exhibit
Number
-------
27 - Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> UT
<CIK> 0000072596
<NAME> NORTH CAROLINA NATURAL GAS CORPORATION
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 181649
<OTHER-PROPERTY-AND-INVEST> 3494
<TOTAL-CURRENT-ASSETS> 58800
<TOTAL-DEFERRED-CHARGES> 2411
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 246354
<COMMON> 16338
<CAPITAL-SURPLUS-PAID-IN> 28715
<RETAINED-EARNINGS> 58767
<TOTAL-COMMON-STOCKHOLDERS-EQ> 103820
0
0
<LONG-TERM-DEBT-NET> 65000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 2000
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 75534
<TOT-CAPITALIZATION-AND-LIAB> 246354
<GROSS-OPERATING-REVENUE> 120344
<INCOME-TAX-EXPENSE> 7415
<OTHER-OPERATING-EXPENSES> 97863
<TOTAL-OPERATING-EXPENSES> 105278
<OPERATING-INCOME-LOSS> 15066
<OTHER-INCOME-NET> 1354
<INCOME-BEFORE-INTEREST-EXPEN> 16420
<TOTAL-INTEREST-EXPENSE> 2630
<NET-INCOME> 13790
0
<EARNINGS-AVAILABLE-FOR-COMM> 13790
<COMMON-STOCK-DIVIDENDS> 4095
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 18135
<EPS-PRIMARY> 2.12
<EPS-DILUTED> 2.12
</TABLE>
