Adopted November 9, 1939 File No. 69-306
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY
CLAIMING EXEMPTION UNDER RULE U-3A-2
FROM THE PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
To Be Filed Annually Prior to March 1
Pinnacle West Capital Corporation
---------------------------------
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935, and submits the following
information:
<PAGE>
1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF
CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE
GENERATOR (EWG) OR FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY
OR INDIRECTLY HOLDS AN INTEREST.
Pinnacle West Capital Corporation ("Claimant"), having been
incorporated on February 20, 1985 under the laws of the State of Arizona, and
having its principal executive offices at 400 East Van Buren, Suite 700,
Phoenix, Arizona 85004, was organized principally to acquire and hold securities
of other corporations for investment purposes. Claimant currently holds stock in
the following subsidiaries:
a. Arizona Public Service Company ("APS" or the "Company"), is engaged
principally in serving electricity in the State of Arizona.
Incorporated in 1920 under the laws of the State of Arizona and having
its principal executive offices at 400 North Fifth Street, Phoenix,
Arizona 85004, APS became a subsidiary of the Claimant pursuant to a
corporate restructuring plan approved by the Company's shareholders on
April 18, 1985.
(1) AXIOM Power Solutions, Inc. ("AXIOM") -- an Arizona
corporation having been incorporated on October 29, 1996 and
having its principal executive offices at 400 E. Van Buren,
Phoenix, Arizona 85004, was organized primarily to sell
security and energy management products and services. AXIOM is
a wholly-owned subsidiary of APS.
(2) Bixco, Inc. ("Bixco") -- an Arizona corporation having
been incorporated on June 4, 1971 and having its principal
executive offices at 400 North Fifth Street, Phoenix, Arizona
85004, was organized primarily to conduct exploration
activities for energy resources and other valuable minerals.
Subsequent to the sale of its oil and natural gas properties
in 1981, Bixco has been inactive. Bixco is a wholly-owned
subsidiary of APS.
(3) APS Energy Services Company, Inc. ("APSES") -- an Arizona
Corporation having been incorporated on November 6, 1998 and
having its principal executive offices at 400 E. Van Buren,
Phoenix, Arizona 85004, was organized primarily to sell
energy, products and services. APSES is a wholly-owned
subsidiary of APS.
b. SunCor Development Company ("SunCor") - an Arizona corporation
having been incorporated on June 30, 1965 and having its
2
<PAGE>
principal executive offices at 3838 North Central Avenue, Suite 1500,
Phoenix, Arizona 85012, is a wholly-owned subsidiary of Claimant
engaged primarily in the owning, holding and development of real
property.
(1) SunCor Resort & Golf Management, Inc. ("Resort & Golf
Management") (previously named "SunCor Resort Management,
Inc." and "SunCor Farms, Inc.") -- an Arizona corporation
having been incorporated on December 31, 1986 and having its
principal executive offices at 3838 North Central Avenue'
Suite 1500, Phoenix, Arizona 85012, operates and manages
hotel, golf, food and beverage for the Wigwam Resort and
Country Club, Sedona Golf Resort, SunRidge Canyon Golf Club,
and Palm Valley Golf Club. Resort & Golf Management is a
wholly-owned subsidiary of SunCor.
(2) Litchfield Park Service Company ("LPSCO") -- an Arizona
corporation having been incorporated on September 21, 1954 and
having its principal executive offices at 501 East Plaza
Circle, Suite B, Litchfield Park, Arizona 85340, is a
regulated public utility engaged in providing water and sewer
services to commercial and residential customers. LPSCO became
a wholly-owned subsidiary of SunCor on December 31,1986.
(3) Golden Heritage Homes, Inc.. ("Golden Heritage Homes") --
(previously named "SunCor Homes, Inc.", "LGR, Inc." and "WGP
Realty, Inc.") an Arizona corporation having been incorporated
on May 14, 1986 and having its principal executive offices at
3838 North Central Avenue, Suite 1500, Phoenix, Arizona 85012,
was organized to provide brokerage and realty services in the
sale of commercial and residential real property. Golden
Heritage Homes is a wholly-owned subsidiary of SunCor.
(i) Golden Heritage Construction, Inc. ("GH
Construction") -- an Arizona corporation having been
incorporated on December 30, 1993 and having its
principal executive offices at 3838 North Central
Avenue, Suite 1500, Phoenix, Arizona 85012, was
organized to serve as a general residential
contractor. GH Construction became a wholly-owned
3
<PAGE>
subsidiary of Golden Heritage Homes, Inc. on January
1, 1996.
(4) SCM, Inc. ("SCM") -- an Arizona corporation having been
incorporated on May 14, 1991 and having its principal
executive offices at 3838 North Central Avenue, Suite 1500,
Phoenix, Arizona 85012, was organized to participate in real
estate joint ventures and other real estate related
activities. SCM is a wholly-owned subsidiary of SunCor.
(5) Golf de Mexico, S.A. DE C.V. ("Golf de Mexico") -- a
Mexican variable capital corporation having been incorporated
on February 8, 1992 in Tijuana, Baja California, Mexico, and
having its principal executive offices at 3838 North Central
Avenue, Suite 1500, Phoenix, Arizona 85012, was organized to
operate and manage the Real del Mar Golf Course in Mexico.
Golf de Mexico has been inactive.
(6) SunCor Realty & Management Company ("SunCor Realty") --
(previously named Russell Ranch Development Company) an
Arizona corporation having been incorporated on April 1, 1994
and having its principal executive offices at 3838 North
Central Avenue, Suite 1500, Phoenix, Arizona 85012 was
organized to participate in real estate management and other
real estate related activities. SunCor Realty is a
wholly-owned subsidiary of SunCor.
(7) Palm Valley Golf Club, Inc. ("Palm Valley Golf") -- an
Arizona corporation having been incorporated on January 23,
1996 and having its principal executive offices at 3838 North
Central Avenue, Suite 1500, Phoenix, Arizona 85012, was
organized to hold title to the Palm Valley Golf Course. Palm
Valley Golf is a wholly-owned subsidiary of SunCor.
(8) Rancho Viejo de Santa Fe, Inc. ("Rancho Viejo") -- a New
Mexico corporation having been incorporated on March 18, 1996
and having its principal executive offices at 1590-B Pacheco
Street, Santa Fe, New Mexico 87505, was organized to engage in
real estate development in New Mexico. Rancho Viego is a
wholly-owned subsidiary of SunCor.
4
<PAGE>
(9) Ranchland Utility Company ("Ranchland") -- a New Mexico
corporation having been incorporated on September 5, 1997 and
having its principal executive offices at 1590-B Pacheco
Street, Santa Fe, New Mexico 87505 is a waste water utility.
Ranchland is a wholly-owned subsidiary of Rancho Viejo.
c. El Dorado Investment Company -- an Arizona corporation having been
incorporated on July 27, 1983 and having its principal executive
offices at 400 East Van Buren, Suite 800, Phoenix, Arizona 85004, is a
wholly-owned subsidiary of Claimant engaged primarily in the
acquisition and holding of stocks and securities of other companies for
investment purposes.
2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH OF ITS
SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE GENERATION,
TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE, OR FOR THE
PRODUCTION, TRANSMISSION AND DISTRIBUTION OF NATURAL OR MANUFACTURED
GAS, INDICATING THE LOCATION OF PRINCIPAL GENERATING PLANTS,
TRANSMISSION LINES, PRODUCING FIELDS, GAS MANUFACTURING PLANTS AND
ELECTRIC AND GAS DISTRIBUTION FACILITIES, INCLUDING ALL SUCH PROPERTIES
WHICH ARE OUTSIDE THE STATE IN WHICH CLAIMANT AND ITS SUBSIDIARIES ARE
ORGANIZED AND ALL TRANSMISSION OR PIPELINES WHICH DELIVER OR RECEIVE
ELECTRIC ENERGY OR GAS AT THE BORDERS OF SUCH STATE.
Neither the Claimant nor any of its subsidiaries own property used for
the production, transmission and distribution of natural or manufactured gas.
APS, a "public utility company" as that term is defined in the Public Utility
Holding Company Act of 1935, is the only one of Claimant's subsidiaries that
owns property used for the generation, transmission and distribution of electric
energy for sale.
5
<PAGE>
Exhibit D attached hereto shows the location of APS' major generating
plants (including those owned jointly with others), principal transmission lines
(including those operated for others) and interconnections of transmission lines
with out-of-state utilities at state lines. All of such facilities, except the
Four Corners Generating Station ("Four Corners"), and all of APS' distribution
facilities, are located within the State of Arizona. Four Corners is a
mine-mouth power plant, located in the northwest corner of New Mexico, near the
city of Farmington, approximately 40 miles east of the Arizona-New Mexico
border.
APS' present generating facilities have an accredited capacity
aggregating 3,986,900 kilowatts, comprised as follows:
Coal: CAPACITY (kW)
Units 1, 2 and 3 at Four Corners,
aggregating ............................................. 560,000
15% owned Units 4 and 5 at Four Corners,
representing ............................................ 222,000
Units 1, 2, and 3 at the Cholla Plant,
aggregating ............................................. 615,000
14% owned Units 1, 2 and 3 at the Navajo
Plant, representing ..................................... 315,000
---------
1,712,000
=========
Gas or Oil:
Two steam units at Ocotillo, two steam
units at Saguaro and one steam
unit at Yucca, aggregating ............................... 435,000(1)
Eleven combustion turbine units,
aggregating ............................................. 493,000
Three combined cycle units,
aggregating ............................................. 255,000
---------
1,183,000
=========
Nuclear:
29.1 % owned or leased Units 1, 2 and 3
at Palo Verde, representing ............................. 1,086,300
=========
Other ..................................................... 5,600
=========
- -------------------------
(1) West Phoenix steam units (108,300 kw) are currently mothballed.
6
<PAGE>
APS' transmission facilities consist of approximately 5,268 pole miles
of overhead lines and approximately 23 miles of underground lines, all of which
are located within the State of Arizona. APS' distribution facilities consist of
approximately 11,444 pole miles of overhead lines and approximately 10,110 miles
of underground lines, all of which are located within the State of Arizona.
3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO
CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES (DATA IS NOT
CURRENTLY MAINTAINED IN A FORMAT IDENTIFYING THE STATE IN WHICH THE SALES AND
PURCHASES ARE MADE OR THE AMOUNT OF THEIR ASSOCIATED REVENUES OR EXPENSES.):
a. NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT RETAIL OR
WHOLESALE), AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT
RETAIL.
CLAIMANT APS
None 30,780,474,000 kwh of electric energy sold at
wholesale or retail
0 Mcf. of natural or manufactured gas distributed at
wholesale or retail
b. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR
MANUFACTURED GAS DISTRIBUTED AT RETAIL OUTSIDE THE STATE IN WHICH EACH
SUCH COMPANY IS ORGANIZED.
CLAIMANT APS
None 62,591,000 kwh of electric energy was distributed at
retail outside Arizona.
0 Mcf. of natural or manufactured gas distributed at
retail outside Arizona
7
<PAGE>
c. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR
MANUFACTURED GAS SOLD AT WHOLESALE OUTSIDE THE STATE IN WHICH EACH SUCH
COMPANY IS ORGANIZED, OR AT THE STATE LINE.
CLAIMANT APS
None 976,200 kwh of electric energy was sold at wholesale
(to meet wholesale native load) outside Arizona or at
state line. Data on wholesale non-native load is
not currently maintained in this format.
0 Mcf. of natural or manufactured gas sold at
wholesale (to meet wholesale native load) outside
Arizona or at state line.
d. NUMBER OF KWH OF ELECTRIC ENERGY AND MCF. OF NATURAL OR
MANUFACTURED GAS PURCHASED OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY
IS ORGANIZED OR AT THE STATE LINE.
CLAIMANT APS
None 0 kwh of electric energy was purchased outside
Arizona or at state line. Data is not currently
maintained in this format.
19,380,577 Mcf. of natural or manufactured gas (used
for generation) purchased outside Arizona or at
state line.
4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO
CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR
A FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES
DOLLARS:
The Claimant holds no interest, direct or indirect, in an EWG or a
foreign utility company.
a. NAME, LOCATION, BUSINESS ADDRESS AND DESCRIPTION OF THE
FACILITIES USED BY THE EWG OR FOREIGN UTILITY COMPANY FOR THE
GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE
OR FOR THE DISTRIBUTION AT RETAIL OF NATURAL OR MANUFACTURED GAS.
Not applicable.
b. NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN SUCH
EWG OR FOREIGN UTILITY COMPANY; AND DESCRIPTION OF THE INTEREST HELD.
Not applicable.
8
<PAGE>
c. TYPE AND AMOUNT OF CAPITAL INVESTED, DIRECTLY OR
INDIRECTLY, BY THE HOLDING COMPANY CLAIMING EXEMPTION; ANY DIRECT OR
INDIRECT GUARANTEE OF THE SECURITY OF THE EWG OR FOREIGN UTILITY
COMPANY BY THE HOLDING COMPANY CLAIMING EXEMPTION; AND ANY DEBT OR
OTHER FINANCIAL OBLIGATION FOR WHICH THERE IS RECOURSE, DIRECTLY OR
INDIRECTLY, TO THE HOLDING COMPANY CLAIMING EXEMPTION OR ANOTHER SYSTEM
COMPANY, OTHER THAN THE EWG OR FOREIGN UTILITY COMPANY.
Not applicable.
d. CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY
COMPANY DURING THE REPORTING PERIOD.
Not applicable.
e. IDENTIFY ANY SERVICE, SALES OR CONSTRUCTION CONTRACT(S)
BETWEEN THE EWG OR FOREIGN UTILITY COMPANY AND A SYSTEM COMPANY, AND
DESCRIBE THE SERVICES TO BE RENDERED OR GOODS SOLD AND FEES OR REVENUES
UNDER SUCH AGREEMENT(S).
Not applicable.
9
<PAGE>
EXHIBIT A
A CONSOLIDATING STATEMENT OF INCOME AND SURPLUS OF THE CLAIMANT AND ITS
SUBSIDIARY COMPANIES FOR THE LAST CALENDAR YEAR, TOGETHER WITH A CONSOLIDATING
BALANCE SHEET OF CLAIMANT AND ITS SUBSIDIARY COMPANIES AS OF THE CLOSE OF SUCH
CALENDAR YEAR.
Exhibit A hereto includes consolidating statements of income and
consolidating balance sheets for the Claimant and the following of its
subsidiaries: Arizona Public Service Company, SunCor Development Company and El
Dorado Investment Company. Subsidiaries have been consolidated for financial
reporting purposes in accordance with Statement of Financial Accounting
Standards No. 94, CONSOLIDATION OF ALL MAJORITY-OWNED SUBSIDIARIES. Also
included are consolidating statements of income and consolidating balance sheets
for SunCor Development Company and its subsidiaries.
10
<PAGE>
EXHIBIT B FINANCIAL DATA STATEMENT
If, at the time a report on this form is filed, the registrant is required to
submit this report and any amendments thereto electronically via EDGAR, the
registrant shall furnish a Financial Data Schedule. The Schedule shall set forth
the financial and other data specified below that are applicable to the
registrant on a consolidated basis.
1. Total Assets.
2. Total Operating Revenues.
3. Net Income.
See Exhibit B hereto.
11
<PAGE>
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
Not applicable.
12
<PAGE>
EXHIBIT D
In accordance with Item 304 of Regulation S-T of the Securities
Exchange Act of 1934, APS' Service Territory map contained as Exhibit D to this
Form U-3A-2 is a map of the State of Arizona showing APS' service area, the
location of its major power plants and principal transmission lines, and the
location of transmission lines operated by APS for others. The major power
plants shown on such map are the Navajo Generating Station located in Coconino
County, Arizona; the Four Corners Power Plant located near Farmington, New
Mexico; the Cholla Power Plant, located in Navajo County, Arizona; the Yucca
Power Plant, located near Yuma, Arizona; and the Palo Verde Nuclear Generating
Station, located about 55 miles west of Phoenix, Arizona (each of which plants
is reflected on such map as being jointly owned with other utilities), as well
as the Ocotillo Power Plant and West Phoenix Power Plant, each located near
Phoenix, Arizona, and the Saguaro Power Plant, located near Tucson, Arizona.
APS' major transmission lines shown on such map are reflected as running between
the power plants named above and certain major cities in the State of Arizona.
The transmission lines operated for others shown on such map are reflected as
running from the Four Corners Plant through a portion of northern Arizona to the
California border.
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<PAGE>
The above-named Claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 1st day of March, 1999.
PINNACLE WEST CAPITAL CORPORATION
(Name of Claimant)
By Michael V. Palmeri
--------------------------------
Michael V. Palmeri
Treasurer
[CORPORATE SEAL]
Attest:
Suzanne Debes
- -------------------------
Suzanne Debes
Associate Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
MICHAEL V. PALMERI TREASURER
(Name) (Title)
400 EAST VAN BUREN, SUITE 7OO, PHOENIX, ARIZONA 85004
(Address)
14
<PAGE>
EXHIBIT B Financial Data Schedule
The Claimant submits the following consolidated financial information:
1. Total Assets: $6,824,546,000
2. Total Operating Revenues: $2,130,586,000
3 Net Income: $242,892,000
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET (UNAUDITED)
December 31, 1998
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
*ELIMINATIONS AND ADJUSTING ENTRIES*
PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL
---- --- ------ ---- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET
CURRENT ASSETS
Cash and cash equivalents $ 8,833 $ 5,558 $ 4,332 $ 1,815 $ -- $ -- $ 20,538
Customer and other
receivables - net 1,679 227,487 5,400 1,000 --(n) 1,690(b) 233,876
Accrued utility revenue 67,740 67,740
Materials and supplies 69,074 69,074
Fossil fuel 13,978 13,978
Deferred income taxes -- 3,999 3,975 -- 3,975(o) 3,999
Other current assets 619 26,695 21,287 33 1,040(c) 47,594
---------- ---------- -------- -------- ------- ---------- ----------
Total current assets 11,131 414,531 34,994 2,848 -- 6,705 456,799
---------- ---------- -------- -------- ------- ---------- ----------
INVESTMENTS AND OTHER ASSETS
Real estate investments net
(cap interest) 330,622 6,161(f) 5,762(e) 331,021
Other assets 2,333,482 183,549 9,018 24,295 2,313,782(a,f,h) 236,562
---------- ---------- -------- -------- ------- ---------- ----------
Total investments and other 2,333,482 183,549 339,640 24,295 6,161 2,319,544 567,583
---------- ---------- -------- -------- ------- ---------- ----------
UTILITY PLANT
Electric plant in service and
held for future use 7,265,604 7,265,604
Less accumulated depreciation
and amortization 2,814,762 2,814,762
---------- ---------- -------- -------- ------- ---------- ----------
Total Utility Plant 4,450,842 4,450,842
Nuclear Fuel, net of amortizaton 51,078 51,078
Construction work in progress 228,643 228,643
---------- ---------- -------- -------- ------- ---------- ----------
Net Utility Plant 4,730,563 4,730,563
---------- ---------- -------- -------- ------- ---------- ----------
DEFERRED DEBITS
Deferred income taxes 33,228 33,228(o) --
Regulatory asset for income taxes 400,795 400,795
Rate synchronization cost deferrals 303,660 303,660
Other deferred debits 5,120 360,201 4,937 -- 8(h) 5,120(j) 365,146
---------- ---------- -------- -------- ------- ---------- ----------
Total deferred debits 5,120 1,064,656 38,165 -- 8 38,348 1,069,601
---------- ---------- -------- -------- ------- ---------- ----------
TOTAL ASSETS $2,349,733 $6,393,299 $412,799 $ 27,143 $ 6,169 $2,364,597 $6,824,546
========== ========== ======== ======== ======= ========== ==========
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET (UNAUDITED)
December 31, 1998
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
LIABILITIES AND EQUITY
CURRENT LIABILITIES
<S> <C> <C> <C> <C> <C> <C> <C>
Accounts payable $ 1,785 $ 145,139 $ 8,847 $ 34 $ 5(i) $ 155,800
Accrued taxes 59,827 -- 8 2,685(l,k) 62,520
Accrued interest 199 31,218 449 -- 31,866
Dividend payable -- -- --(d) --
Short-term borrowings -- -- --(m) --
Commerical paper, net -- 178,830 178,830
Current maturities of
long-term debt 154,378 3,667 158,045
Customer Deposits 26,815 1,695 28,510
Other current liabilities 3,311 16,755 629 195 6,258(b,c,g) 14,632
---------- ---------- --------- -------- ---------- --------- ----------
Total current liabilities 5,295 612,962 15,287 237 6,263 2,685 630,203
---------- ---------- --------- -------- ---------- --------- ----------
NON-CURRENT LIABILITIES
Long-term debt less current
maturities 92,000 1,886,540 80,421 2,058,961
---------- ---------- --------- -------- ---------- --------- ----------
DEFERRED CREDITS AND OTHER
Deferred income taxes 71,412 1,312,007 39,883(k,o) 1,343,536
Deferred investment tax credit 32,465 5,120(j) 27,345
Unamortized gain-sale of
utility plant 77,787 77,787
Other deferred credits 17,675 400,542 6,377 3,528(g) 428,122
---------- ---------- --------- -------- ---------- --------- ----------
Total deferred credits 89,087 1,822,801 6,377 -- 45,003 3,528 1,876,790
---------- ---------- --------- -------- ---------- --------- ----------
COMMITMENTS AND CONTINGENCIES (NOTE)
MINORITY INTERESTS:
Non-Redeemable preferred stock of APS 85,840 85,840
Redeemable preferred stock of APS 9,401 9,401
Joint Ventures of SunCor 5,762 5,762(e) --
COMMON STOCK EQUITY:
Common stock 2,023,744 1,373,787 376,391 38,046 2,261,325(a) 1,550,643
Accumulated deficit 139,607 601,968 (71,439) (11,140) 46,288(a) 612,708
---------- ---------- --------- -------- ---------- --------- ----------
Total 2,163,351 1,975,755 304,952 26,906 2,307,613 2,163,351
---------- ---------- --------- -------- ---------- --------- ----------
TOTAL LIABILITIES AND EQUITY $2,349,733 $6,393,299 $ 412,799 $ 27,143 $2,364,641 $ 6,213 $6,824,546
========== ========== ========= ======== ========== ========= ==========
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
ELIMINATING AND ADJUSTING ENTRIES
DEBITS CREDITS
------ -------
(a) Common stock $2,261,325
Accumulated earnings 46,288
Other investments $2,307,613
To eliminate PNW investment in subsidiaries
Common Earnings/
Stock Dividends Total
----- --------- -----
APS $1,846,888 $ 128,867 $1,975,755
SunCor 376,391 (71,439) 304,952
El Dorado 38,046 (11,140) 26,906
---------- ---------- ----------
Total $2,261,325 $ 46,288 $2,307,613
========== ========== ==========
(b) Other current liabilities $ 1,690
Customer and other receivables - net 1,690
To eliminate intercompany receivables/payables
A/R A/P
PNW Subs Books
---------- ----------
APS $1,276 $1,276
SunCor 225 225
El Dorado 189 189
------ ------
Total $1,690 $1,690
====== ======
(c) Other current liabilities $1,040
Other current assets $1,040
To eliminate PNW payable to APS
(d) Dividends Payable --
Customer and other receivable - net --
To eliminate APS Dividend to PNW
(e) Minority interest $5,762
Real estate investments - net $5,762
To eliminate minority interest of SunCor JV partners
(f) Real estate investments - net $6,161
Other - assets $6,161
To reclass PNW capitalized interest related to SunCor
(g) Other current liabilities $3,528
Other deferred credits $3,528
To reclass PNW deferred comp to long-term
(h) Other deferred debits $8
Other - assets $8
To reclass PNW unamortized debt to long-term
(i) Accounts payable $5
Accrued taxes $5
To reclass PNW property tax
(j) Deferred investment tax credit $5,120
Other deferred debits $5,120
To reclass PNW ITC from Deferred taxes to Deferred ITC
(k) Other deferred debits $2,680
Accrued taxes $2,680
To reclass PNW accrued taxes
(o) Deferred income taxes-current portion $3,975
Deferred income taxes-noncurrent portion 33,228
Deferred income taxes $37,203
To eliminate Suncor deferred tax asset and PNW deferred tax liability.
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT (UNAUDITED)
FOR THE PERIODS ENDED DECEMBER 31, 1998
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ADJUSTMENTS & ELIMINATIONS
PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL
---- --- ------ ---- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric $ -- $2,006,398 $ -- $ -- $ -- $ -- $2,006,398
Real Estate 124,188 124,188
-------- ---------- --------- -------- --------- -------- ----------
Total -- 2,006,398 124,188 -- -- -- 2,130,586
-------- ---------- --------- -------- --------- -------- ----------
FUEL EXPENSES:
Fuel for electric generation 231,967 231,967
Purchased power 305,534 305,534
-------- ---------- --------- -------- --------- -------- ----------
Total -- 537,501 -- -- -- -- 537,501
-------- ---------- --------- -------- --------- -------- ----------
OPERATING EXPENSES:
Utility operations and maintenance 414,041 414,041
Real estate operations 116,216 731(b) 1,616(d) 115,331
Depreciation and amortization 209 376,574 2,896 -- 379,679
Taxes other than income taxes 115,264 1,642(c,d) 116,906
-------- ---------- --------- -------- --------- -------- ----------
Total 209 905,879 119,112 -- 2,373 1,616 1,025,957
-------- ---------- --------- -------- --------- -------- ----------
OPERATING INCOME (209) 563,018 5,076 -- (2,373) (1,616) 567,128
-------- ---------- --------- -------- --------- -------- ----------
OTHER INCOME (DEDUCTIONS):
Interest on long-term debt (9,874) (137,214) (6,648) -- (153,736)
Other interest (673) (15,061) -- -- 325(e) (15,409)
Capitalized interest 16,263 2,333 18,596
Preferred stock dividend
requirements (9,703) (9,703)
Other, net 292,897 (12,303) 6,758 7,616 295,116(a,e) 757(b,c) 609
-------- ---------- --------- -------- --------- -------- ----------
Total 282,350 (158,018) 2,443 7,616 295,116 1,082 (159,643)
-------- ---------- --------- -------- --------- -------- ----------
INCOME BEFORE INCOME TAXES 282,141 405,000 7,519 7,616 297,489 (534) 407,485
Income Tax Expense (Benefit) 39,249 159,456 (37,200) 3,088 164,593
-------- ---------- --------- -------- --------- -------- ----------
NET INCOME (L0SS) $242,892 $ 245,544 $ 44,719 $ 4,528 $ 297,489 $ (534) $ 242,892
======== ========== ========= ======== ========= ======== ==========
</TABLE>
<PAGE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
ELIMINATING ENTRIES
(a) Other - net (Subs income) $ 294,791
Retained Earnings $ 294,791
To eliminate PWCC Equity in earnings from subsidiaries
PWCC
----
APS $245,544
SunCor 44,719
El Dorado 4,528
-------
Total $294,791
=======
(b) Real Estate Operations $ 731
Interest Expense (PWCC) $ 731
To reclass Capitalized Interest for SunCor Land Sales
(c) Taxes other than income taxes $ 26
Other - net $ 26
To reclass PNW property taxes
(d) Taxes other than income taxes $ 1,616
Real estate operations $ 1,616
To reclass SunCor property taxes
(e) Other, net (El Dorado interest income) $ 325
Other interest $ 325
To eliminate interest on ELD loan to PNW
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATED BALANCE SHEET (UNAUDITED)
FOR THE MONTH ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
SUNCOR
ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC
------------------- --------- ----- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 1,019,737 $430,710 $ 395,991 $ 575,390 $ (1,126)
1 ACCOUNTS RECEIVABLE 266,375 141,342 66,609 1,224,420 20,757
INTERCOMPANY ACCOUNTS:
1 SASI 0
1 LPSCO 21,391
1 SMLP 27,761
1 PVGC 0 4,060,675
1 WWOS 48,503
1 GOLDEN HERITAGE - GENERAL 767,728
1 SCM-GENERAL 4,981,309
1 HOMEBUILDING I/C INTEREST 2,592,637
1 HOMEBUILDING CASH ADVANCES 12,778,208
COMMERCIAL - GENERAL 0
1 SUNRIDGE - DEVELOPMENT 38,671
1 SUNRIDGE - GOLF 218,991
1 SEDONA - DEVELOPMENT 43,125
1 SEDONA - GOLF 152,365
1 WIGWAM RESORT 179,892
1 INTEREST RECEIVABLE 371,731
NOTES RECEIVABLE 2,174,874 0
2 INVENTORIES 63,252
2 PREPAID EXPENSES 115,158 4,664 46,108
HOME INVENTORY 6,888
DEFERRED INCOME TAX 3,974,512
---------- ------- ------- --------- ---------
TOTAL CURRENT ASSETS 29,779,855 576,716 462,600 1,799,810 4,189,667
---------- ------- ------- --------- ---------
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM.
------------------- ----- ------ ---- --------- -----
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 926,993 $1,300,540 $ 193,117 $ 174 $ (416,346)
1 ACCOUNTS RECEIVABLE 269,382 173,920 428,734
INTERCOMPANY ACCOUNTS:
1 SASI
1 LPSCO
1 SMLP
1 PVGC
1 WWOS
1 GOLDEN HERITAGE - GENERAL 667,368
1 SCM-GENERAL (4,981,309)
1 HOMEBUILDING I/C INTEREST (2,592,637)
1 HOMEBUILDING CASH ADVANCES
COMMERCIAL - GENERAL
1 SUNRIDGE - DEVELOPMENT
1 SUNRIDGE - GOLF
1 SEDONA - DEVELOPMENT
1 SEDONA - GOLF
1 WIGWAM RESORT
1 INTEREST RECEIVABLE 10,407 16,325
NOTES RECEIVABLE 12,120
2 INVENTORIES 36,162
2 PREPAID EXPENSES 1,014 11,850
HOME INVENTORY 23,553,307
DEFERRED INCOME TAX
---------- --------- ------- ----- ---------
TOTAL CURRENT ASSETS 17,843,105 1,311,961 367,037 174 88,845
---------- --------- ------- ----- ---------
ELIMINATIONS
--------------------------------
ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT
------------------- ------- ------- --------- --- ----- --- ------
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 1,892 $ (96,606) $ 1,445 $ -- $ --
1 ACCOUNTS RECEIVABLE J,Q 315,272
INTERCOMPANY ACCOUNTS:
1 SASI 0
1 LPSCO H 21,391
1 SMLP J 0 J 27,761
1 PVGC N 4,060,675
1 WWOS Q 0 Q 48,503
1 GOLDEN HERITAGE - GENERAL A 1,432,265
1 SCM-GENERAL A 4,981,309 A 4,981,309
1 HOMEBUILDING I/C INTEREST C 2,592,637 C 2,592,637
1 HOMEBUILDING CASH ADVANCES B 12,777,915
COMMERCIAL - GENERAL
1 SUNRIDGE - DEVELOPMENT
1 SUNRIDGE - GOLF
1 SEDONA - DEVELOPMENT
1 SEDONA - GOLF
1 WIGWAM RESORT
1 INTEREST RECEIVABLE P 97,398
NOTES RECEIVABLE 0
2 INVENTORIES 12,480
2 PREPAID EXPENSES 1,839
HOME INVENTORY E 2,565,923
DEFERRED INCOME TAX
------ -------- ------- --------- ----------
TOTAL CURRENT ASSETS 1,892 (96,606) 15,763 7,573,946 28,921,050
------ -------- ------- --------- ----------
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
ASSETS:
CURRENT ASSETS
CASH AND SHORT TERM INVESTMENTS $ 4,331,912
1 ACCOUNTS RECEIVABLE 2,276,268
INTERCOMPANY ACCOUNTS:
1 SASI 0
1 LPSCO 0
1 SMLP 0
1 PVGC 0
1 WWOS 0
1 GOLDEN HERITAGE - GENERAL 2,831
1 SCM-GENERAL 0
1 HOMEBUILDING I/C INTEREST 0
1 HOMEBUILDING CASH ADVANCES 292
COMMERCIAL - GENERAL 0
1 SUNRIDGE - DEVELOPMENT 38,671
1 SUNRIDGE - GOLF 218,991
1 SEDONA - DEVELOPMENT 43,125
1 SEDONA - GOLF 152,365
1 WIGWAM RESORT 179,892
1 INTEREST RECEIVABLE 301,065
NOTES RECEIVABLE 2,186,994
2 INVENTORIES 111,894
2 PREPAID EXPENSES 180,632
HOME INVENTORY 20,994,272
DEFERRED INCOME TAX 3,974,512
------------
TOTAL CURRENT ASSETS 34,993,716
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUNCOR
ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC
------------------- --------- ----- ---- ---- ----
<S> <C> <C> <C> <C> <C>
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON
HIDDEN HILLS
RANCHO VIEJO
PALM VALLEY
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS
SCOTTSDALE MOUNTAIN 5,597,906
MARKETPLACE - AUTOPLEX
TATUM RANCH 7,011,475
TALAVI
WIGWAM OUTLET STORES
GOLDEN HERITAGE LAND
BILTMORE ESTATES 0
OTHER COMMERCIAL LAND
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP
INVEST IN KYRENE ASSOCIATES LLC
INVEST IN PV APARTMENTS (I & II)
INVESTMENT IN SUNRIDGE CANYON LLC 9,652,389
INVESTMENT IN SEDONA GOLF LC 3,589,437
INVESTMENT IN PLUMCOR REALTY LLC
INVEST IN TALAVI ASSOCIATES LLC
INVESTMENT IN WESTWORLD GOLF 782,907
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV 5,882,342
INVESTMENT IN WIGWAM OUTLET LLC
INVEST IN SCOTTS MTN LTD PART 5,245,299
INVEST IN GOLDEN HERITAGE 1,154,335
GOLDEN HERITAGE DUE DILIGENCE 0
INVESTMENT IN SCM 525,943
5 INVESTMENT IN LPSCO 12,173,458
INVESTMENT IN SASI 0
INVESTMENT IN PALM VALLEY 167,221,252
INVESTMENT IN PALM VALLEY GOLF 6,231,352
PALM VALLEY GOLF CONTRIB. CAP (4,060,675)
INVESTMENT IN RANCHO VIEJO 8,674,183
INVESTMENT IN HIDDEN HILLS 1,170,838
INVESTMENT IN CORAL CANYON 481,241
PROJECT 2000:
INVESTMENT IN FIDDLESTICKS-SCOTTS (603,562)
INVESTMENT IN FIDDLESTICKS-TEMPE 1,623,517
INVESTMENT IN FUNTASTICKS 2,334,403
INVESTMENT IN GENERAL COMM OPS 79,255,821
INVESTMENT IN PV MARKETPLACE 1,406,129
INVESTMENT IN PV PAVILIONS 899,849
INVESTMENT IN PV CROSSING 311,587
INVESTMENT IN AUTOPLEX (574,137)
INVESTMENT IN TALAVI (139,299)
INVESTMENT IN METROCENTER 253,727
INVESTMENT IN RESTORATION PLACE (65,725)
INVESTMENT IN LITCHFIELD PARK OPS 73,203
INVESTMENT IN LP PROF. PLAZA (18,428)
INVESTMENT IN WWOS LLC (11,397)
INVESTMENT IN APS PROPERTIES (126,084)
COMMERCIAL PROPERTIES 5,294,782
LONG-TERM NOTES RECEIVABLE 5,964,889
SDC PHASE I LAND NOTE TO WWOS 1,304,153
SDC PAYOFF OF WWOS RLC 10,000,000
SDC LOAN TO LPSCO 300,000
PROPERTY & EQUIPMENT, NET 785,336 36,696 142,635
3 DEFERRED ASSETS 2,696,758 1,195,557 202,691
DEFERRED INCOME TAXES 33,225,488
WATER & SEWER UTILITY PROP, NET 13,503,454
3 DEPOSITS
------------ ------------- ------------- ------------ -------------
TOTAL LONG-TERM ASSETS 364,632,003 14,699,011 36,696 5,597,906 5,640,108
------------ ------------- ------------- ------------ -------------
TOTAL ASSETS $394,411,858 $ 15,275,727 $ 499,296 $ 7,397,716 $ 9,829,775
------------ ------------- ------------- ------------ -------------
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM.
------------------- ----- ------- ---- --------- -----
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON
HIDDEN HILLS
RANCHO VIEJO
PALM VALLEY 164,717,178 16,567,774
LITCHFIELD GREENS 943,106
VILLAGE OF LITCHFIELD GREENS 12,705,211
SCOTTSDALE MOUNTAIN
MARKETPLACE - AUTOPLEX 12,962,803
TATUM RANCH
TALAVI 2,414,265
WIGWAM OUTLET STORES 16,232,891
GOLDEN HERITAGE LAND 1,393,876
BILTMORE ESTATES
OTHER COMMERCIAL LAND 3,500,641
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP 23,472,509
INVEST IN KYRENE ASSOCIATES LLC 1,440,528
INVEST IN PV APARTMENTS (I & II) 936,291
INVESTMENT IN SUNRIDGE CANYON LLC
INVESTMENT IN SEDONA GOLF LC
INVESTMENT IN PLUMCOR REALTY LLC 120,000
INVEST IN TALAVI ASSOCIATES LLC 2,842,332
INVESTMENT IN WESTWORLD GOLF
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV
INVESTMENT IN WIGWAM OUTLET LLC 3,807,232
INVEST IN SCOTTS MTN LTD PART
INVEST IN GOLDEN HERITAGE
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM
5 INVESTMENT IN LPSCO 373,781
INVESTMENT IN SASI
INVESTMENT IN PALM VALLEY
INVESTMENT IN PALM VALLEY GOLF
PALM VALLEY GOLF CONTRIB. CAP
INVESTMENT IN RANCHO VIEJO
INVESTMENT IN HIDDEN HILLS
INVESTMENT IN CORAL CANYON
PROJECT 2000:
INVESTMENT IN FIDDLESTICKS-SCOTTS
INVESTMENT IN FIDDLESTICKS-TEMPE
INVESTMENT IN FUNTASTICKS
INVESTMENT IN GENERAL COMM OPS
INVESTMENT IN PV MARKETPLACE
INVESTMENT IN PV PAVILIONS
INVESTMENT IN PV CROSSING
INVESTMENT IN AUTOPLEX
INVESTMENT IN TALAVI
INVESTMENT IN METROCENTER
INVESTMENT IN RESTORATION PLACE
INVESTMENT IN LITCHFIELD PARK OPS
INVESTMENT IN LP PROF. PLAZA
INVESTMENT IN WWOS LLC
INVESTMENT IN APS PROPERTIES
COMMERCIAL PROPERTIES 18,007,355
LONG-TERM NOTES RECEIVABLE 187,817 265,654
SDC PHASE I LAND NOTE TO WWOS
SDC PAYOFF OF WWOS RLC
SDC LOAN TO LPSCO
PROPERTY & EQUIPMENT, NET 1,388,591 99,108 71,783
3 DEFERRED ASSETS 169,620 157,599 441,233
DEFERRED INCOME TAXES
WATER & SEWER UTILITY PROP, NET
3 DEPOSITS 72,915
---------- ------------- ------------- ------------- -------------
TOTAL LONG-TERM ASSETS 2,855,382 167,426,901 16,462,273 12,705,211 85,842,327
---------- ------------- ------------- ------------- -------------
TOTAL ASSETS 20,698,487 $ 168,738,862 $ 16,829,310 $ 12,705,385 $ 85,931,172
---------- ------------- ------------- ------------- -------------
ELIMINATIONS
---------------------------------
ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT
------------------- ------- ------- --------- --- ----- --- ------
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON 465,261
HIDDEN HILLS 1,199,790
RANCHO VIEJO 9,258,472
PALM VALLEY
LITCHFIELD GREENS
VILLAGE OF LITCHFIELD GREENS
SCOTTSDALE MOUNTAIN
MARKETPLACE - AUTOPLEX
TATUM RANCH
TALAVI
WIGWAM OUTLET STORES
GOLDEN HERITAGE LAND
BILTMORE ESTATES
OTHER COMMERCIAL LAND
EQUITY INVESTMENTS:
EQUITY IN CTRPT ASSOC-LLP
INVEST IN KYRENE ASSOCIATES LLC
INVEST IN PV APARTMENTS (I & II)
INVESTMENT IN SUNRIDGE CANYON LLC
INVESTMENT IN SEDONA GOLF LC
INVESTMENT IN PLUMCOR REALTY LLC
INVEST IN TALAVI ASSOCIATES LLC
INVESTMENT IN WESTWORLD GOLF
CONSOLIDATED ELIMINATING ENTITIES:
INVEST IN KABUTO/SUNCOR JV R 8,853,122
INVESTMENT IN WIGWAM OUTLET LLC O 18,539,382 O 23,340,125
INVEST IN SCOTTS MTN LTD PART I 15,730,119 I 20,999,080
INVEST IN GOLDEN HERITAGE 0 D 1,154,335
GOLDEN HERITAGE DUE DILIGENCE
INVESTMENT IN SCM D 525,943
5 INVESTMENT IN LPSCO F 11,925,668
INVESTMENT IN SASI L 650,000 L 1,023,781
INVESTMENT IN PALM VALLEY 0 V 167,221,252
INVESTMENT IN PALM VALLEY GOLF M 6,231,352
PALM VALLEY GOLF CONTRIB. CAP N 4,060,675
INVESTMENT IN RANCHO VIEJO U 85,702 U 8,759,885
INVESTMENT IN HIDDEN HILLS T 3,070 T 1,173,907
INVESTMENT IN CORAL CANYON W 481,241
PROJECT 2000:
INVESTMENT IN FIDDLESTICKS-SCOTTS S 2,426,077 S 1,822,515
INVESTMENT IN FIDDLESTICKS-TEMPE S 1,623,517
INVESTMENT IN FUNTASTICKS S 2,334,403
INVESTMENT IN GENERAL COMM OPS S 0 S 79,255,821
INVESTMENT IN PV MARKETPLACE S 1,406,129
INVESTMENT IN PV PAVILIONS S 899,849
INVESTMENT IN PV CROSSING S 0 S 311,587
INVESTMENT IN AUTOPLEX S 574,137
INVESTMENT IN TALAVI S 139,299
INVESTMENT IN METROCENTER S 253,727
INVESTMENT IN RESTORATION PLACE S 65,725
INVESTMENT IN LITCHFIELD PARK OPS S 73,203
INVESTMENT IN LP PROF. PLAZA S 18,428 S 0
INVESTMENT IN WWOS LLC S 11,397 S 0
INVESTMENT IN APS PROPERTIES S 126,084 S
COMMERCIAL PROPERTIES
LONG-TERM NOTES RECEIVABLE
SDC PHASE I LAND NOTE TO WWOS P 1,304,153
SDC PAYOFF OF WWOS RLC P 10,000,000
SDC LOAN TO LPSCO G 300,000
PROPERTY & EQUIPMENT, NET 70,633 5,264
3 DEFERRED ASSETS 0
DEFERRED INCOME TAXES
WATER & SEWER UTILITY PROP, NET
3 DEPOSITS 150
------------ ------------ --------- ------------ --------------
TOTAL LONG-TERM ASSETS 1,199,790 9,329,105 470,675 42,430,095 351,274,594
------------ ------------ --------- ------------ --------------
TOTAL ASSETS $ 1,201,682 $ 9,232,499 $ 486,439 $ 50,004,040 $ 380,195,645
------------ ------------ --------- ------------ --------------
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
CORAL CANYON
HIDDEN HILLS 465,261
RANCHO VIEJO 1,199,790
PALM VALLEY 9,258,472
LITCHFIELD GREENS 181,284,952
VILLAGE OF LITCHFIELD GREENS 943,106
SCOTTSDALE MOUNTAIN 12,705,211
MARKETPLACE - AUTOPLEX 5,597,906
TATUM RANCH 12,962,803
TALAVI 7,011,475
WIGWAM OUTLET STORES 2,414,265
GOLDEN HERITAGE LAND 16,232,891
BILTMORE ESTATES 1,393,876
OTHER COMMERCIAL LAND 0
EQUITY INVESTMENTS: 3,500,641
EQUITY IN CTRPT ASSOC-LLP 0
INVEST IN KYRENE ASSOCIATES LLC 23,472,509
INVEST IN PV APARTMENTS (I & II) 1,440,528
INVESTMENT IN SUNRIDGE CANYON LLC 936,291
INVESTMENT IN SEDONA GOLF LC 9,652,389
INVESTMENT IN PLUMCOR REALTY LLC 3,589,437
INVEST IN TALAVI ASSOCIATES LLC 120,000
INVESTMENT IN WESTWORLD GOLF 2,842,332
CONSOLIDATED ELIMINATING ENTITIES: 782,907
INVEST IN KABUTO/SUNCOR JV 0
INVESTMENT IN WIGWAM OUTLET LLC (2,970,780)
INVEST IN SCOTTS MTN LTD PART (993,511)
INVEST IN GOLDEN HERITAGE (23,662)
GOLDEN HERITAGE DUE DILIGENCE 0
INVESTMENT IN SCM 0
5 INVESTMENT IN LPSCO 0
INVESTMENT IN SASI 247,790
INVESTMENT IN PALM VALLEY 0
INVESTMENT IN PALM VALLEY GOLF 0
PALM VALLEY GOLF CONTRIB. CAP 0
INVESTMENT IN RANCHO VIEJO 0
INVESTMENT IN HIDDEN HILLS 0
INVESTMENT IN CORAL CANYON 0
PROJECT 2000: 0
INVESTMENT IN FIDDLESTICKS-SCOTTS
INVESTMENT IN FIDDLESTICKS-TEMPE 0
INVESTMENT IN FUNTASTICKS 0
INVESTMENT IN GENERAL COMM OPS 0
INVESTMENT IN PV MARKETPLACE 0
INVESTMENT IN PV PAVILIONS 0
INVESTMENT IN PV CROSSING 0
INVESTMENT IN AUTOPLEX 0
INVESTMENT IN TALAVI 0
INVESTMENT IN METROCENTER 0
INVESTMENT IN RESTORATION PLACE 0
INVESTMENT IN LITCHFIELD PARK OPS 0
INVESTMENT IN LP PROF. PLAZA 0
INVESTMENT IN WWOS LLC 0
INVESTMENT IN APS PROPERTIES 0
COMMERCIAL PROPERTIES 0
LONG-TERM NOTES RECEIVABLE 23,302,137
SDC PHASE I LAND NOTE TO WWOS 6,418,360
SDC PAYOFF OF WWOS RLC 0
SDC LOAN TO LPSCO 0
PROPERTY & EQUIPMENT, NET 0
3 DEFERRED ASSETS 2,600,045
DEFERRED INCOME TAXES 4,863,457
WATER & SEWER UTILITY PROP, NET 33,225,488
3 DEPOSITS 13,503,454
73,065
TOTAL LONG-TERM ASSETS -------------
378,052,887
TOTAL ASSETS -------------
$ 413,046,603
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUNCOR
ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC
------------------- --------- ----- ---- ---- ----
<S> <C> <C> <C> <C> <C>
LIABILITIES:
CURRENT LIABILITIES
4 A/P & RETENTION $ 198,218 $ 193,109 $ 19,428 $ 69,484 $ 35,838
4 ACCRUED LIABILITIES 2,083,844 226,417 38,726 104,121 73,731
INTERCOMPANY ACCOUNTS:
4 LPSCO - SDC 21,391
4 SMLP - SDC 27,761
4 SCM-SDC CASH ADVANCES 267
4 GH-SDC INTERCO CAPITAL 265
4 WWOS-SDC
INTEREST PAYABLE 443,916
S/T NOTES PAYABLE
$45 MILLION TERM LOAN 3,208,144
$55 MILLION RLC
GOLDEN HERITAGE (PEW)
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE 2,661,923 18,569 0
PWCC INTERCO PAYABLE 358,870
APS LAND INTERCO PAYABLE
CUSTOMER DEPOSITS
--------- ------- ------ ------- -------
TOTAL CURRENT LIABILITIES 8,954,915 440,917 76,723 201,366 109,569
--------- ------- ------ ------- -------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE
WWOS RLC PAYOFF BY SDC
CORPORATE TERM NOTE 38,853,019
CORPORATE RLC 38,138,836
LPSCO OWES SDC 300,000
TEXTRON LOAN - PVGC 3,488,854
5 OTHER ACCRUED LIABILITIES 3,513,221 889,149 48,792
5 DEFERRED TAXES 216,617
5 LONG-TERM CUSTOMER DEPOSITS 586,162
5 CONTRIB PROPERTY AIA 916,642
---------- --------- ------- ------- ---------
TOTAL L/T LIABILITIES 80,505,077 2,908,570 48,792 0 3,488,854
---------- --------- ------- ------- ---------
TOTAL LIABILITIES 89,459,992 3,349,487 125,515 201,366 3,598,423
---------- --------- ------- ------- ---------
MINORITY INTEREST
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM.
------------------- ----- -- ---- --------- -----
LIABILITIES:
CURRENT LIABILITIES
4 A/P & RETENTION $ 2,714,754 $ 1,036,745 $ 578,516 $ $ 202,637
4 ACCRUED LIABILITIES (5,282) 159,457 17,728 820,338
INTERCOMPANY ACCOUNTS:
4 LPSCO - SDC
4 SMLP - SDC
4 SCM-SDC CASH ADVANCES 267 12,777,915
4 GH-SDC INTERCO CAPITAL 265 1,432,265
4 WWOS-SDC 48,503
INTEREST PAYABLE 5,371 97,397
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
GOLDEN HERITAGE (PEW) 398,595
TEXTRON LOAN - PVGC
DEF PROFIT & UNEARNED REVENUE 97,416 58,449
PWCC INTERCO PAYABLE
APS LAND INTERCO PAYABLE (0)
CUSTOMER DEPOSITS 1,694,749
---------- --------- ------- ------ ---------
TOTAL CURRENT LIABILITIES 19,018,368 1,293,618 724,417 17,728 1,081,424
---------- --------- ------- ------ ---------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE 1,304,153
WWOS RLC PAYOFF BY SDC 10,000,000
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO OWES SDC
TEXTRON LOAN - PVGC
5 OTHER ACCRUED LIABILITIES 224,212 230,145
5 DEFERRED TAXES
5 LONG-TERM CUSTOMER DEPOSITS
5 CONTRIB PROPERTY AIA
---------- --------- ---------- ------ ---------
TOTAL L/T LIABILITIES 0 224,212 11,304,153 0 230,145
---------- --------- ---------- ------ ---------
TOTAL LIABILITIES 19,018,368 1,517,830 12,028,570 17,728 1,311,568
---------- --------- ---------- ------ ---------
MINORITY INTEREST
ELIMINATIONS
-----------------------------------
ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT
------------------- ------- ------- --------- --- ----- --- ------
LIABILITIES:
CURRENT LIABILITIES
4 A/P & RETENTION $ 1,200 $ 350,326 $ 5,197 J,K,Q $ 315,272 $ --
4 ACCRUED LIABILITIES 29,837 207,991
INTERCOMPANY ACCOUNTS:
4 LPSCO - SDC H 21,391
4 SMLP - SDC J 27,761 0
4 SCM-SDC CASH ADVANCES 267 B 12,777,915 0
4 GH-SDC INTERCO CAPITAL 265 A 1,432,265 0
4 WWOS-SDC Q 48,503 0
INTEREST PAYABLE P 97,398
S/T NOTES PAYABLE
$45 MILLION TERM LOAN
$55 MILLION RLC
GOLDEN HERITAGE (PEW) 0
TEXTRON LOAN - PVGC * 59,956
DEF PROFIT & UNEARNED REVENUE E 2,565,923
PWCC INTERCO PAYABLE
APS LAND INTERCO PAYABLE
CUSTOMER DEPOSITS
------ ------- ----- --- ---------- --- ------
TOTAL CURRENT LIABILITIES 31,037 558,317 5,197 0 17,286,430 O 59,956
------ ------- ----- --- ---------- --- ------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE P 1,304,153
WWOS RLC PAYOFF BY SDC P 10,000,000
CORPORATE TERM NOTE
CORPORATE RLC
LPSCO OWES SDC G 300,000
TEXTRON LOAN - PVGC * 59,956
5 OTHER ACCRUED LIABILITIES
5 DEFERRED TAXES
5 LONG-TERM CUSTOMER DEPOSITS
5 CONTRIB PROPERTY AIA
------ ------- ----- ---------- ------
TOTAL L/T LIABILITIES 0 0 0 11,664,109 0
------ ------- ----- ---------- ------
TOTAL LIABILITIES 31,037 558,317 5,197 28,950,539 59,956
------ ------- ----- ---------- ------
MINORITY INTEREST I 7,985,114 I,R 13,747,038
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
LIABILITIES:
CURRENT LIABILITIES
4 A/P & RETENTION $ 5,090,181
4 ACCRUED LIABILITIES 3,756,908
INTERCOMPANY ACCOUNTS:
4 LPSCO - SDC 0
4 SMLP - SDC 0
4 SCM-SDC CASH ADVANCES 267 0
4 GH-SDC INTERCO CAPITAL 265 0
4 WWOS-SDC 0
INTEREST PAYABLE 449,286
S/T NOTES PAYABLE
$45 MILLION TERM LOAN 3,208,144
$55 MILLION RLC 0
GOLDEN HERITAGE (PEW) 398,595
TEXTRON LOAN - PVGC 59,956
DEF PROFIT & UNEARNED REVENUE 270,434
PWCC INTERCO PAYABLE 358,870
APS LAND INTERCO PAYABLE (0)
CUSTOMER DEPOSITS 1,694,749
-------------
TOTAL CURRENT LIABILITIES 15,287,123
-------------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE
WWOS OWES SDC PH I LAND NOTE 0
WWOS RLC PAYOFF BY SDC 0
CORPORATE TERM NOTE 38,853,019
CORPORATE RLC 38,138,836
LPSCO OWES SDC 0
TEXTRON LOAN - PVGC 3,428,898
5 OTHER ACCRUED LIABILITIES 4,905,519
5 DEFERRED TAXES 216,617
5 LONG-TERM CUSTOMER DEPOSITS 586,162
5 CONTRIB PROPERTY AIA 916,642
-------------
TOTAL L/T LIABILITIES 87,045,693
-------------
TOTAL LIABILITIES 102,332,816
-------------
MINORITY INTEREST 5,761,924
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUNCOR
ACCOUNT DESCRIPTION CORPORATE LPSCO SASI SMLP PVGC
------------------- --------- ----- ---- ---- ----
<S> <C> <C> <C> <C>
EQUITY:
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 375,368,522
SDC EARNED SURPLUS-BEGINNING (116,158,648)
SDC EARNED SURPLUS-CURRENT 44,719,992
SUBSIDIARY EARNINGS-CURRENT 30,780 159,366 4,759,433 (127,903)
SUBSIDIARY EQUITY:
LPSCO 11,895,460
SASI 214,415
SMLP #3500 2,436,916
PVGC 6,359,255
HOMEBUILDING
PALM VALLEY #5500
WWOS #4400
KABUTO JV #3000
COMMERCIAL PROPERTIES #2000
HIDDEN HILLS #3300
RANCHO VIEJO #6600
CORAL CANYON #3900
------------ ------------- ------------ ------------ ------------
TOTAL EQUITY 304,951,866 11,926,240 373,781 7,196,349 6,231,352
------------ ------------- ------------ ------------ ------------
TOTAL LIABS AND EQUITY $394,411,858 $ 15,275,727 $ 499,296 $ 7,397,716 $ 9,829,775
============ ============= ============ ============ ============
ACCOUNT DESCRIPTION HOMES PV WWOS KABUTO JV COMM.
------------------- ----- -- ---- --------- -----
EQUITY:
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT 1,046,001 6,128,499 (90,343) 0 3,604,982
SUBSIDIARY EQUITY:
LPSCO
SASI
SMLP #3500
PVGC
HOMEBUILDING 634,276
PALM VALLEY #5500 161,092,534
WWOS #4400 4,891,083
KABUTO JV #3000 12,687,657
COMMERCIAL PROPERTIES #2000 81,014,621
HIDDEN HILLS #3300
RANCHO VIEJO #6600
CORAL CANYON #3900
------------ ------------- ------------- ------------- -------------
TOTAL EQUITY 1,680,277 167,221,032 4,800,740 12,687,657 84,619,603
------------ ------------- ------------- ------------- -------------
TOTAL LIABS AND EQUITY $ 20,698,645 $ 168,738,862 $ 16,829,310 $ 12,705,385 $ 85,931,172
============ ============= ============= ============= =============
ELIMINATIONS
---------------------------------------
ACCOUNT DESCRIPTION H HILLS R VIEJO C. CANYON REF DEBIT REF CREDIT
------------------- ------- ------- --------- --- ----- --- ------
EQUITY:
SDC COMMON STOCK
SDC ADDITIONAL PAID IN CAPITAL
SDC EARNED SURPLUS-BEGINNING
SDC EARNED SURPLUS-CURRENT
SUBSIDIARY EARNINGS-CURRENT (1,502) (61,761) F,L,I,S,V 15,729,061 O,T,U,M 281,505
SUBSIDIARY EQUITY:
LPSCO F 11,895,460
SASI L 864,415 L 650,000
SMLP #3500 I 26,152,149 I 23,715,233
PVGC M 6,359,255 0
HOMEBUILDING D 634,276 0
PALM VALLEY #5500 V 161,092,534
WWOS #4400 O 23,860,125 O 18,969,042
KABUTO JV #3000 R 12,687,657
COMMERCIAL PROPERTIES #2000 S 81,014,621 0
HIDDEN HILLS #3300 1,172,147 T 1,173,714 T 1,567
RANCHO VIEJO #6600 8,735,943 U 8,759,885 U 23,942
CORAL CANYON #3900 481,241 W 481,241
------------- ------------- --------- ------------ ------------
TOTAL EQUITY 1,170,645 8,674,182 481,241 350,704,393 43,641,289
------------- ------------- --------- ------------ ------------
TOTAL LIABS AND EQUITY $ 1,201,682 $ 9,232,499 $ 486,439 $387,640,045 $ 57,448,282
============= ============= ========= ============ ============
ACCOUNT DESCRIPTION CONSOLIDATED
------------------- ------------
EQUITY:
SDC COMMON STOCK 1,022,000
SDC ADDITIONAL PAID IN CAPITAL 375,368,522
SDC EARNED SURPLUS-BEGINNING (116,158,648)
SDC EARNED SURPLUS-CURRENT 44,719,992
SUBSIDIARY EARNINGS-CURRENT (3)
SUBSIDIARY EQUITY:
LPSCO 0
SASI 0
SMLP #3500 0
PVGC 0
HOMEBUILDING 0
PALM VALLEY #5500 0
WWOS #4400 0
KABUTO JV #3000 0
COMMERCIAL PROPERTIES #2000 0
HIDDEN HILLS #3300 (0)
RANCHO VIEJO #6600 0
CORAL CANYON #3900 0
-------------
TOTAL EQUITY 304,951,863
-------------
TOTAL LIABS AND EQUITY $ 413,046,603
=============
</TABLE>
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
A. SCM INTERCO A/P TO SDC $ 4,981,309
SDC A/R FROM SCM $ 4,981,309
GH INTERCO CAPITAL FROM SDC - ACQUISITION $ 1,432,265
GH INTERCO A/P TO SDC $ 664,537
SDC A/R FROM GH $ 767,728
B. HOMEBUILDING CASH ADVANCES FROM SDC $12,777,915
SDC CASH ADVANCES TO HOMEBUILDING $12,777,915
C. SCM INTERCO CAPPED INTEREST $ 2,592,637
SDC INTERCO INTEREST A/R FROM SCM $ 2,592,637
ELIMINATE INTERCO RECEIVABLES/PAYABLES BETWEEN HOMEBUILDING AND SDC
D. HOMEBUILDING ACCUMULATED EARNINGS $ 634,276
SDC INVESTMENT IN GH $ 1,154,335
SDC INVESTMENT IN SCM $ 525,943
HOMEBUILDING CURRENT YEAR EARNINGS $ 1,046,001
ELIMINATE SDC INVESTMENT IN GOLDEN HERITAGE & SCM
E. DEFERRED INTERCO PROFIT $ 2,565,923
HOME INVENTORY $ 2,565,923
ELIMINATE DEFERRED PROFIT ON INTERCO LOT SALES TO HOMEBUILDING
F. LPSCO COMMON STOCK $ 78,200
LPSCO PAID IN CAPITAL $11,151,953
LPSCO EARNINGS - PRIOR $ 665,307
LPSCO EARNINGS - CURRENT YEAR $ 30,780
SDC INVESTMENT IN LPSCO - CONTRIB CAPITAL $11,230,153
SDC INVESTMENT IN LPSCO - EARNINGS $ 695,515
ELIMINATE SDC INVESTMENT IN LPSCO
G. LPSCO LONG-TERM NOTES PAYABLE $ 300,000
SDC LONG-TERM NOTES RECEIVABLE $ 300,000
ELIMINATE LPSCO INTERCOMPANY NOTE WITH SDC
H. LPSCO ACCOUNTS PAYABLE $ 21,391
SDC ACCOUNTS RECEIVABLE $ 21,391
ELIMINATE LPSCO INTERCOMPANY A/R WITH SDC
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
I. SMLP CONTRIBUTED CAPITAL - MINORITY INT $ 7,985,114
SMLP CONTRIBUTED CAPITAL - SDC GP $ 490,147
SMLP DISTRIBUTED CAPITAL - SDC GP $ 9,878,612
SMLP CONTRIBUTED CAPITAL - SDC LP $ 2,100,000
SMLP DISTRIBUTED CAPITAL - SDC LP $ 5,851,507
SMLP EARNINGS - PRIOR $23,562,002
SMLP EARNINGS - CURRENT YEAR $ 4,759,433
MINORITY INTEREST CONTRIBUTED CAPITAL $ 7,985,114
MINORITY INTEREST - PRIOR (35%) $ 8,246,701
MINORITY INTEREST - CURRENT YEAR (35%) $ 1,665,802
SDC INVESTMENT IN SMLP - LP $ 2,100,000
SDC DISTRIBUTIONS FROM SMLP - LP $ 5,851,507
SDC INVESTMENT IN SMLP - GP $ 490,147
SDC DISTRIBUTIONS FROM SMLP - GP $ 9,878,612
SDC INVESTMENT IN SMLP - EARNINGS $18,408,933
ELIMINATE SDC INVESTMENT IN SMLP #3500
J. SMLP ACCOUNTS PAYABLE $ 27,761
SDC ACCOUNTS RECEIVABLE $ 27,761
GH ACCOUNTS PAYABLE $ 310,000
SMLP ACCOUNTS RECEIVABLE $ 310,000
ELIMINATE SMLP INTERCOMPANY A/R WITH SDC AND HOMEBUILDING (PREMIUMS)
K. SASI ACCOUNTS PAYABLE $ 0 $ 0
SDC ACCOUNTS RECEIVABLE $ 0 $ 0
ELIMINATE SASI INTERCOMPANY A/R WITH SDC
L. SASI CONTRIBUTED CAPITAL $ 489,023
SASI CAPITAL DISTRIBUTIONS $ 650,000
SASI EARNINGS - PRIOR $ 375,392
SASI EARNINGS - CURRENT YEAR $ 159,366
PV INVESTMENT IN SASI - CONTRIB CAPITAL $ 489,023
PV INVESTMENT IN SASI - DISTRIBUTIONS $ 650,000
PV INVESTMENT IN SASI - EARNINGS $ 534,758
ELIMINATE PALM VALLEY INVESTMENT IN SASI
M. PVGC CONTRIBUTED CAPITAL $ 6,158,173
PVGC EARNINGS - PRIOR $ 201,082
PVGC EARNINGS - CURRENT YEAR $ 127,903
SDC INVESTMENT IN PVGC - EARNINGS $ 73,179
SDC INVESTMENT IN PVGC - CONTRIB CAPITAL $ 6,158,173
ELIMINATE SDC INVESTMENT IN PALM VALLEY GOLF
N. SDC CONTRIB. CAPITAL TO PVGC $ 4,060,675
PVGC ACCOUNTS RECEIVABLE $ 4,060,675
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
ELIMINATE PALM VALLEY GOLF INTERCOMPANY A/R WITH SDC
O. WWOS CONTRIBUTED CAPITAL - PHASE 1 $ 9,500,000
WWOS CONTRIBUTED CAPITAL - PHASE 2 $13,522,531
WWOS CONTRIBUTED WORKING CAPITAL $ 837,594
WWOS EARNINGS - PRIOR $ 1,933,052
WWOS EARNINGS - CURRENT YEAR $ 90,340
WWOS CAPITAL DISTRIBUTIONS - PHASE 1 $ 9,500,000
WWOS CAPITAL DISTRIBUTIONS - PHASE 2 $ 4,967,126
WWOS PREFERRED RETURN - PHASE 1 $ 287,568
WWOS PREFERRED RETURN - PHASE 2 $ 2,281,296
SDC INVESTMENT IN WWOS - PHASE 1 $ 9,500,000
SDC INVESTMENT IN WWOS - PHASE 2 $13,408,870
SDC INVESTMENT IN WWOS -CONTRIBUTED CAPITAL $ 431,255
SDC INVESTMENT IN WWOS - EARNINGS $ 2,023,392
SDC DISTRIBUTIONS FROM WWOS - PHASE 1 $ 9,500,000
SDC DISTRIBUTIONS FROM WWOS - PHASE 2 $ 4,967,126
SDC PREFERRED RETURN - PHASE 1 $ 287,568
SDC PREFERRED RETURN - PHASE 2 $ 1,761,296
ELIMINATE SDC COMMERCIAL INVESTMENT IN WIGWAM OUTLET STORES #4400
P. WWOS INTEREST PAYABLE - PHASE 1 LAND $ 29,585
WWOS INTEREST PAYABLE - RLC $ 67,813
SDC INTEREST RECEIVABLE - PHASE 1 LAND $ 29,585
SDC INTEREST RECEIVABLE - RLC $ 67,813
WWOS NOTES PAYABLE - PHASE 1 LAND $ 1,304,153
SDC NOTES RECEIVABLE - PHASE 1 LAND $ 1,304,153
WWOS NOTES PAYABLE - RLC $10,000,000
SDC NOTES RECEIVABLE - RLC $10,000,000
ELIMINATE WWOS INTERCOMPANY NOTES AND INTEREST WITH SDC
Q. WWOS ACCOUNTS PAYABLE $ 48,503
SDC ACCOUNTS RECEIVABLE $ 48,503
WWOS MANAGEMENT FEE PAYABLE $ 5,272
SDC COMMERCIAL A/R $ 5,272
ELIMINATE WWOS INTERCOMPANY A/R WITH SDC
R. KABUTO CONTRIBUTED CAPITAL - SDC $ 8,853,122
KABUTO CONTRIBUTED CAPITAL - KABUTO $ 3,834,535
MINORITY INTEREST $ 3,834,535
SDC INVESTMENT IN KABUTO - CONTR CAPITAL $ 5,981,619
BALANCING PLUG $ 2,871,502
ELIMINATE SDC INVESTMENT IN KABUTO JV #3000
S. COMMERCIAL OPS CONTRIBUTED CAPITAL $80,522,808
COMMERCIAL EARNINGS - PRIOR $ 491,813
COMMERCIAL EARNINGS - CURRENT YEAR $ 3,604,982
SDC INVEST IN GEN COMMERCIAL OPS - EARNINGS $ 1,636,480
SDC INVEST IN GEN COMMERCIAL OPS - CONT CAPITAL $77,619,340
SDC INVESTMENT IN OUTER LIMITS - PURCHASE $ 1,822,515
<PAGE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 1998 CONSOLIDATING AND ELIMINATING ENTRIES
DEBIT CREDIT
----- ------
SDC INVESTMENT IN FIDDLE (SCOTTS) - CONT CAPITAL $ 2,012,593
SDC INVESTMENT IN FIDDLE (SCOTTS) - EARNINGS $ 413,484
SDC INVESTMENT IN FUNTASTICKS - CONT CAPITAL $ 2,043,745
SDC INVESTMENT IN FUNTASTICKS - EARNINGS $ 290,658
SDC INVESTMENT IN FIDDLE (TEMPE) - CONT CAPITAL $ 1,049,800
SDC INVESTMENT IN FIDDLE (TEMPE) - EARNINGS $ 573,717
SDC INVESTMENT IN PV MARKETPLACE - EARNINGS $ 1,406,129
SDC INVESTMENT IN PV PAVILIONS - EARNINGS $ 899,849
SDC INVESTMENT IN PV CROSSING - EARNINGS $ 311,587
SDC INVESTMENT IN METROCENTER - EARNINGS $ 253,727
SDC INVESTMENT IN REST PLACE - EARNINGS $ 65,725
SDC INVESTMENT IN LITCHFIELD OTHER - EARNINGS $ 73,203
SDC INVESTMENT IN AUTOPLEX - EARNINGS $ 574,137
SDC INVESTMENT IN TALAVI - EARNINGS $ 139,299
SDC INVESTMENT IN WWOS - EARNINGS $ 11,397
SDC INVESTMENT IN LP PROF. PLAZA - EARNINGS $ 18,428
SDC INVESTMENT IN APS PROPERTIES - EARNINGS $ 126,084
ELIMINATE SDC INVESTMENT IN COMMERCIAL OPERATIONS #2000
T. HIDDEN HILLS CONTRIBUTED CAPITAL $ 1,173,714
HIDDEN HILLS EARNINGS - PRIOR $ 1,567
HIDDEN HILLS EARNINGS - CURRENT YEAR $ 1,503
SDC INVESTMENT IN HIDDEN HILLS - EARNINGS $ 3,070
SDC INVESTMENT IN HIDDEN HILLS - CONT CAPITAL $ 1,173,907
ELIMINATE SDC INVESTMENT IN HIDDEN HILLS JV #3300
U. SDC INVESTMENT IN RANCHO VIEJO - EARNINGS $ 85,702
SDC INVESTMENT IN RANCHO VIEJO - CAPITAL $ 8,759,885
RANCHO VIEJO CONTRIBUTED CAPITAL $ 8,759,885
RANCHO VIEJO EARNINGS - PRIOR $ 23,942
RANCHO VIEJO EARNINGS - CURRENT YEAR $ 61,760
ELIMINATE SDC INVESTMENT IN RANCHO VIEJO JV #6600
V. PV CONTRIBUTED CAPITAL $157,595,695
PV EARNINGS - PRIOR $ 3,496,839
PV EARNINGS - CURRENT YEAR $ 6,128,499
SDC INVESTMENT IN PALM VALLEY - EARNINGS $ 9,625,558
SDC INVESTMENT IN PALM VALLEY - DEVELOP $157,595,695
ELIMINATE SDC INVESTMENT IN PALM VALLEY #5500
W. CORAL CANYON CONTRIBUTED CAPITAL $ 481,241
SDC INVESTMENT IN CORAL CANYON $ 481,241
ELIMINATE SDC INVESTMENT IN CORAL CANYON #3900
<PAGE>
SunCor Development Company
Consolidating Income Statement (Unaudited)
For the Year Ending December 31, 1998
<TABLE>
<CAPTION>
Account Description SunCor LPSCo Scts Mtn PVGC GHH
- ------------------- ------ ----- -------- ---- ---
<S> <C> <C> <C> <C> <C>
Revenues
Home Sales $ 0 $ 0 $ 0 $ 0 $50,228,047
Land Sales 50,859,043 0 10,017,886 0 0
Commercial Properties 5,143,994 0 0 2,113,400 0
Utility Sales 0 2,095,302 0 0 0
Management Fees 1,180,276 0 0 0 0
----------- ---------- ----------- ---------- -----------
Total Operating Revenues 57,183,313 2,095,302 10,017,886 2,113,400 50,228,047
Operating Expenses
Cost of Homes Sold (2,439,803) 0 0 0 43,395,872
Cost of Land Sold 40,202,747 0 5,042,867 0 0
Commercial Properties 5,552,147 0 0 202,461 0
Utility Expense 0 1,639,443 0 0 0
Land Project Costs 1,901,734 0 123,984 0 0
General & Administrative 10,213,245 0 146,953 1,493,611 5,402,670
Depreciation & Amortization 960,152 385,008 47 192,911 510,016
----------- ---------- ----------- ---------- -----------
Total Operating Expenses 56,390,222 2,024,451 5,313,850 1,888,983 49,308,558
Net Operating Income/(Loss) 793,091 70,851 4,704,035 224,417 919,490
Other Income and Gains
Equity in Joint Ventures 4,585,909 0 0 0 0
Interest Income 737,547 7,799 55,783 0 0
Other 0 0 0 0 180,203
----------- ---------- ----------- ---------- -----------
Total Other Income and Gains 5,323,456 7,799 55,783 0 180,203
Interest Expense, Net
Interest Expense 5,249,779 47,870 385 352,320 53,691
Less: Capitalized Interest (2,333,492) 0 0 0 0
----------- ---------- ----------- ---------- -----------
Total Interest Expense, Net 2,916,287 47,870 385 352,320 53,691
Minority Interest 1,234,975 0 0 0 0
Income before Taxes 1,965,286 30,780 4,759,433 (127,903) 1,046,001
Income Taxes (37,200,000) 0 0 0 0
----------- ---------- ----------- ---------- -----------
NET INCOME/(LOSS) $39,165,286 $ 30,780 $ 4,759,433 ($127,903) $ 1,046,001
=========== ========== =========== ========== ===========
Hidden Rancho Consolidated
Account Description WWOS Hills Viejo Income
- ------------------- ---- ----- ----- ------
Revenues
Home Sales $ 0 $ 0 $ 0 $ 50,228,047
Land Sales 0 0 634,992 61,511,921
Commercial Properties 3,095,236 0 0 10,352,630
Utility Sales 0 0 0 2,095,302
Management Fees 0 0 0 1,180,276
---------- -------- ----------- ------------
Total Operating Revenues 3,095,236 0 634,992 125,368,176
Operating Expenses
Cost of Homes Sold 0 0 0 40,956,069
Cost of Land Sold 0 0 478,121 45,723,735
Commercial Properties 1,401,090 0 0 7,155,698
Utility Expense 0 0 0 1,639,443
Land Project Costs 0 947 97,682 2,124,347
General & Administrative 0 556 125,340 17,382,374
Depreciation & Amortization 845,355 0 2,306 2,895,795
---------- -------- ----------- ------------
Total Operating Expenses 2,246,445 1,503 703,449 117,877,461
Net Operating Income/(Loss) 848,791 (1,503) (68,457) 7,490,715
Other Income and Gains
Equity in Joint Ventures 0 0 0 4,585,909
Interest Income 4,536 0 6,698 812,363
Other 0 0 0 180,203
---------- -------- ----------- ------------
Total Other Income and Gains 4,536 0 6,698 5,578,475
Interest Expense, Net
Interest Expense 943,670 0 0 6,647,715
Less: Capitalized Interest 0 0 0 (2,333,492)
---------- -------- ----------- ------------
Total Interest Expense, Net 943,670 0 0 4,314,223
Minority Interest 0 0 0 1,234,975
Income before Taxes (90,343) (1,503) (61,760) 7,519,992
Income Taxes 0 0 0 (37,200,000)
---------- -------- ----------- ------------
NET INCOME/(LOSS) ($90,343) ($1,503) ($61,760) $ 44,719,992
========== ======== =========== ============
</TABLE>
