<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1997
Commission File Number 1-6659
PHILADELPHIA SUBURBAN CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-1702594
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
762 Lancaster Avenue, Bryn Mawr, Pennsylvania 19010
- --------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610)-527-8000
--------------
Indicate by check mark whether the registrant (1) 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 September 30, 1997.
19,606,855
- ----------
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars, except per share amounts)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
--------- ---------
(Unaudited) (Audited)
<S> <C> <C>
Property, plant and equipment, at cost $ 635,913 $ 612,812
Less accumulated depreciation 119,177 109,874
--------- ---------
Net property, plant and equipment 516,736 502,938
Current assets:
Cash 1,449 1,518
Accounts receivable, net 23,378 21,914
Inventory, materials and supplies 1,938 1,943
Prepayments and other current assets 872 660
--------- ---------
Total current assets 27,637 26,035
Regulatory assets 48,388 48,491
Deferred charges and other assets, net 6,542 5,480
--------- ---------
$ 599,303 $ 582,944
========= =========
Stockholders' equity:
6.05% Series B cumulative preferred stock $ 3,220 $ 3,220
Common stock at $.50 par value, authorized 40,000,000 shares,
outstanding 19,606,855 and 19,198,579 in 1997 and 1996 9,984 9,731
Capital in excess of par value 129,734 121,439
Retained earnings 54,876 49,272
Treasury stock, 361,181 and 262,230 shares in 1997 and 1996 (5,632) (3,647)
--------- ---------
Total stockholders' equity 192,182 180,015
--------- ---------
Preferred stock of subsidiary with mandatory
redemption requirements 2,786 4,214
Long-term debt, excluding current portion 205,391 217,518
Commitments -- --
Current liabilities:
Current portion of long-term debt and preferred stock of subsidiary 27,581 13,873
Loans payable 10,070 5,560
Accounts payable 4,000 9,659
Accrued interest 4,676 3,660
Accrued taxes 2,279 3,363
Other accrued liabilities 10,132 8,924
--------- ---------
Total current liabilities 58,738 45,039
--------- ---------
Deferred credits and other liabilities:
Deferred income taxes and investment tax credits 79,903 75,949
Customers' advances for construction 22,470 23,524
Other 13,038 12,826
--------- ---------
Total deferred credits and other liabilities 115,411 112,299
--------- ---------
Contributions in aid of construction 24,795 23,859
--------- ---------
$ 599,303 $ 582,944
========= =========
</TABLE>
See notes to consolidated financial statements on page 6 of this report.
1
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-------------------------------
1997 1996
--------- ---------
<S> <C> <C>
Earned revenues $ 101,090 $ 90,804
Costs and expenses
Operating expenses 40,829 37,441
Depreciation 10,681 9,773
Amortization 24 241
Taxes other than income taxes 6,407 6,391
--------- ---------
57,941 53,846
--------- ---------
Operating income 43,149 36,958
Interest expense 13,423 11,368
Dividends on preferred stock of subsidiary 279 372
Allowance for funds used during construction (334) (174)
--------- ---------
Income from continuing operations before income taxes 29,781 25,392
Provision for income taxes 12,074 10,296
--------- ---------
Income from continuing operations 17,707 15,096
Reversal of reserve for discontinued operations,
net of income tax of $197 -- 365
--------- ---------
Net income 17,707 15,461
Dividends on preferred stock 146 --
--------- ---------
Net income available to common stock $ 17,561 $ 15,461
========= =========
Net income per common share
Continuing operations $ 0.89 $ 0.80
Discontinued operations -- 0.02
--------- ---------
Total $ 0.89 $ 0.82
========= =========
Average common and common equivalent
shares outstanding during the period 19,664 18,855
========= =========
</TABLE>
See notes to consolidated financial statements on page 6 of this report.
2
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
----------------------------
1997 1996
-------- --------
<S> <C> <C>
Earned revenues $ 36,754 $ 30,831
Costs and expenses
Operating expenses 14,466 11,757
Depreciation 3,385 3,268
Amortization 11 102
Taxes other than income taxes 2,083 2,066
-------- --------
19,945 17,193
-------- --------
Operating income 16,809 13,638
Interest expense 4,463 3,796
Dividends on preferred stock of subsidiary 92 122
Allowance for funds used during construction (141) (92)
-------- --------
Income from continuing operations before income taxes 12,395 9,812
Provision for income taxes 5,023 3,965
-------- --------
Income from continuing operations 7,372 5,847
Reversal of reserve for discontinued operations,
net of income tax of $197 -- 365
-------- --------
Net income 7,372 6,212
Dividends on preferred stock 49 --
-------- --------
Net income available to common stock $ 7,323 $ 6,212
======== ========
Net income per common share
Continuing operations $ 0.37 $ 0.31
Discontinued operations -- 0.02
-------- --------
Total $ 0.37 $ 0.33
======== ========
Average common and common equivalent
shares outstanding during the period 19,777 19,100
======== ========
</TABLE>
See notes to consolidated financial statements on page 6 of this report.
3
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands of dollars)
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------------
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Income from continuning operations $ 17,707 $ 15,096
Adjustments to reconcile income from continuing operations
to net cash flows from operating activities:
Depreciation and amortization 10,705 10,015
Deferred taxes, net of taxes on customers' advances 3,485 1,262
Net decrease (increase) in receivables, inventory and prepayments (1,220) 397
Net decrease in payables, accrued interest, accrued taxes
and other accrued liabilities (3,785) (3,178)
Other (703) (551)
-------- --------
Net cash flows from operating activities 26,189 23,041
-------- --------
Cash flows from investing activities:
Property, plant and equipment additions, including allowance
for funds used during construction of $334 and $174 (22,580) (17,343)
Acquisitions of water systems (1,090) (2,396)
Other (459) (373)
-------- --------
Net cash flows used in investing activities (24,129) (20,112)
-------- --------
Cash flows from financing activities:
Customers' advances and contributions in aid of construction 854 295
Repayments of customers' advances (1,736) (1,619)
Net proceeds (repayments) of short-term debt 4,510 (755)
Proceeds from long-term debt 19,712 21,699
Repayments of long-term debt (18,419) (20,054)
Redemption of preferred stock of subsidiary (1,428) (1,500)
Proceeds from issuing common stock 8,528 10,667
Repurchase of common stock (1,965) (47)
Dividends paid on preferred stock (146) --
Dividends paid on common stock (11,957) (10,943)
Other (82) (161)
-------- --------
Net cash flows used in financing activities (2,129) (2,418)
-------- --------
Net cash flows from discontinued operations -- 170
-------- --------
Net increase (decrease) in cash (69) 681
Cash balance beginning of year 1,518 2,387
-------- --------
Cash balance at end of period $ 1,449 $ 3,068
======== ========
</TABLE>
See notes to consolidated financial statements on page 6 of this report.
4
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CAPITALIZATION
(In thousands of dollars, except per share amounts)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
--------- ---------
(Unaudited) (Audited)
Stockholders' equity:
<S> <C> <C>
6.05% Series B cumulative preferred stock $ 3,220 $ 3,220
Common stock, $.50 par value 9,984 9,731
Capital in excess of par value 129,734 121,439
Retained earnings 54,876 49,272
Treasury stock (5,632) (3,647)
--------- ---------
Total stockholders' equity 192,182 180,015
--------- ---------
Preferred stock of subsidiary with mandatory
redemption requirements 4,215 5,643
Current portion of preferred stock of subsidiary 1,429 1,429
--------- ---------
2,786 4,214
--------- ---------
Long-term debt:
First Mortgage Bonds secured by utility plant:
8.44% Series, due 1997 -- 12,000
5.95% Series, due 2002* 2,000 2,400
6.83% Series, due 2003 10,000 10,000
7.47% Series, due 2003 10,000 10,000
7.06% Series, due 2004 10,000 --
6.82% Series, due 2005 10,000 10,000
6.99% Series, due 2006 10,000 10,000
6.75% Series, due 2007 10,000 --
9.89% Series, due 2008 5,000 5,000
7.15% Series, due 2008* 22,000 22,000
9.12% Series, due 2010 20,000 20,000
6.50% Series, due 2010* 3,200 3,200
9.17% Series, due 2011 5,000 5,000
9.93% Series, due 2013 5,000 5,000
6.89% Series, due 2015 12,000 12,000
9.97% Series, due 2018 5,000 5,000
9.17% Series, due 2021* 8,000 8,000
6.35% Series, due 2025 22,000 22,000
7.72% Series, due 2025 15,000 15,000
9.29% Series, due 2026 12,000 12,000
--------- ---------
Total First Mortgage Bonds 196,200 188,600
Note payable to bank under revolving credit agreement, due March 1998 33,708 39,727
Installment note payable, 9%, due in equal annual payments through 2013 1,635 1,635
--------- ---------
231,543 229,962
Current portion of long-term debt 26,152 12,444
--------- ---------
Long-term debt, excluding current portion 205,391 217,518
--------- ---------
Total capitalization $ 400,359 $ 401,747
========= =========
</TABLE>
*Trust indentures relating to these First Mortgage Bonds require annual sinking
fund payments.
See notes to consolidated financial statements on page 6 of this report.
5
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of dollars, except per share amounts)
Note 1 Basis of Presentation
The accompanying consolidated balance sheet and statement of
capitalization of Philadelphia Suburban Corporation at September 30,
1997, the consolidated statements of income for the nine months and
quarter ended September 30, 1997 and 1996, and the consolidated
statements of cash flow for the nine months ended September 30, 1997 and
1996 are unaudited, but reflect all adjustments, consisting of only
normal recurring accruals, which are, in the opinion of management,
necessary to present fairly the consolidated financial position at
September 30, 1997, the consolidated results of operations, and the
consolidated cash flow for the periods presented. Because they cover
interim periods, the statements and related notes to the financial
statements do not include all disclosures and notes normally provided in
annual financial statements and, therefore, should be read in
conjunction with the Annual Report on Form 10-K for the year ended
December 31, 1996 and the Quarterly Reports on Form 10-Q for the
quarters ended March 31, 1997 and June 30, 1997.
Note 2 Water Rates
On October 23, 1997, the Pennsylvania Public Utility Commission ("PUC")
approved a rate settlement reached between Philadelphia Suburban Water
Company ("PSW") and the parties actively litigating the rate application
PSW filed in April 1997. The settlement is designed to increase PSW's
annual revenue by $9.3 million or 7.3% over the level in effect at the
time of the filing. The rates in effect at the time of the filing
included a 1% or $1.3 million Distribution System Improvement Charge
("DSIC"). Consequently, the settlement resulted in a total base rate
increase of $10.6 million or 8.3%. As a part of the settlement, the DSIC
was reset to zero and the Company agreed not to file its next base rate
increase request prior to April 1999, absent extraordinary
circumstances.
Note 3 Long-Term Debt and Loans Payable
In October 1997, PSW issued $10,000 First Mortgage Bonds 6.3% Series due
2002. The net proceeds of this issue were used to repay amounts
outstanding under PSW's revolving credit agreement. Accordingly, $10,000
of amounts outstanding under the revolving credit facility have been
reclassified from current portion of long-term debt to long-term debt.
<PAGE>
Note 4 Acquisitions
During the nine months ended September 30, 1997, PSW has purchased the
water utility and related assets of three water systems and one
wastewater system for a combined purchase price of $1,090. These systems
serve customers near PSW's existing service territory and have combined
annual operating revenues of approximately $350.
PSW continues to hold acquisition discussions with several other water
systems which have annual revenues of approximately $4,700. If the
acquisitions of these water systems are all successfully completed, the
combined purchase price will likely be in excess of $22,000. These
systems are adjacent or near to PSW's service territory. Final closings
may not occur until 1998 and the consummation of these water system
acquisitions is subject to the negotiation and execution of definitive
agreements, the completion of due diligence investigations satisfactory
to the Company, the receipts of all necessary board of directors and
government approvals, and other closing conditions. No assurance can be
given that any acquisition will ultimately be consummated.
6
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(In thousands of dollars, except per share amounts)
Philadelphia Suburban Corporation ("PSC" or "the Company"), a Pennsylvania
corporation, is the holding Company of Philadelphia Suburban Water Company
("PSW"), a regulated water utility. PSW provides water to approximately 287,000
customers in 94 municipalities within its 465 square-mile service territory.
PSW's service territory is located north and west of the City of Philadelphia.
Financial Condition
During the first nine months of 1997, the Company made $22,580 of expenditures
related to routine capital improvements and replacements, retired $18,419 in
long-term debt, repaid $1,736 of customer advances for construction, repurchased
$1,965 of its common stock and redeemed $1,428 of Preferred Stock of subsidiary.
During this period, internally generated funds, available working capital, funds
available under the revolving credit facility and the proceeds from the issuance
of common stock and long-term debt were used to fund the cash requirements
discussed above, and to pay dividends. Proceeds from the issuance of common
stock, primarily through the Company's Customer Stock Purchase Plan and the
Dividend Reinvestment and Optional Stock Purchase Plan amounted to $8,528.
In July 1997, PSW established a two-year $150,000 medium-term note program. This
program replaced a $100,000 medium-term note program that expired in March 1997.
The program provides for the issuance of long-term debt with maturities ranging
between one and 30 years at fixed rates of interest, as determined at the time
of issuance. The terms and conditions for debt issued under the new program are
essentially the same as those under the expired program. In March 1997, PSW
issued $10,000 of First Mortgage Bonds 7.06% Series due 2004 through the expired
program. In July 1997, PSW issued $10,000 of First Mortgage Bonds 6.75% Series
due 2007 and in October 1997, PSW issued $10,000 of First Mortgage Bonds 6.3%
Series due 2002 through the new program. The net proceeds of these issues were
used to repay amounts outstanding under PSW's revolving credit agreement.
At September 30, 1997, the Company had $4,930 and PSW had $1,000 available under
short-term lines of credit and PSW had $16,292 available under its revolving
credit agreement. In October 1997, $10,000 of borrowings under the revolving
credit agreement were repaid with the proceeds from the issuance of First
Mortgage Bonds and accordingly, this portion of the revolving credit balance is
classified as long-term debt at September 30, 1997. The remainder of the
revolving credit agreement balance, which expires in March 1998, is classified
as current portion of long-term debt. The Company intends to renew this facility
and continue to refinance portions of the borrowings under the facility through
the issuances of First Mortgage Bonds.
7
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
(In thousands of dollars, except per share amounts)
Results of Operations
Analysis of First Nine Months of 1997 Compared to First Nine Months of 1996
Revenues increased by $10,286 or 11.3% primarily as a result of an increase in
water sales associated with the hot, dry weather experienced during the summer
of 1997 and $4,270 of water revenues from the 1996 acquisitions. In addition,
water revenues included $942 from the Distribution System Improvement Charge
("DSIC").
Operating expenses increased by $3,388 or 9.0% primarily due to higher
production costs resulting from the increased volume of water sold in the third
quarter, additional operating expenses of the water systems acquired in 1996,
and increased wage and insurance expenses, partially offset by the effects of
the mild 1997 winter which resulted in fewer main breaks and reduced maintenance
expenses.
Depreciation increased by $908 or 9.3% reflecting utility plant placed in
service, including the assets from the acquisitions, in the past year, partially
offset by a reduction in the average depreciation rate. Depreciation was
approximately 2.2% and 2.4% of average utility plant in service in the first
nine months of 1997 and 1996 respectively. The decrease in the average
depreciation rate is due to an adjustment in depreciation expense related to
PSW's fourth quarter 1996 acquisitions.
Amortization decreased $217 primarily due to the completion of the amortization
of the costs associated with PSW's 1995 rate filing, offset partially by the
amortization of additional debt issuance costs.
Interest expense increased $2,055 or 18.1% due to increased borrowing levels,
partially offset by lower interest rates. The increase in borrowings were used
to finance the 1996 acquisitions and PSW's ongoing capital projects.
Allowance for funds used during construction ("AFUDC") increased by $160 due to
an increase in capital spending which increased the average balance of utility
plant construction work in progress to which AFUDC is applied.
The Company's effective income tax rate was 40.5% in the first nine months of
1997 and 1996.
Net income available to common stock increased by $2,100 or 13.6% primarily as a
result of increased revenues partially offset by increased operating expenses,
interest expense and depreciation. In 1996, net income available to common stock
was higher than income from continuing operations due to the reversal of $365 or
$.02 per share of reserves for the discontinued operations. On a per share
basis, net income available to common stock increased $.07 or 8.5% reflecting
the improvement in net income, offset by a 4.3% increase in the average number
of shares outstanding. The increased number of shares outstanding reflects
additional shares sold since the third quarter of 1996 through the Customer
Stock Purchase Plan and the Dividend Reinvestment and Optional Stock Purchase
Plan.
8
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
(In thousands of dollars, except per share amounts)
Analysis of Third Quarter of 1997 Compared to Third Quarter of 1996
Revenues for the quarter increased $5,923 or 19.2% primarily due to an increase
in water sales associated with the hot, dry weather experienced during the
summer of 1997, water revenues from the 1996 acquisitions of $1,420, and the
DSIC which contributed $482.
Operating expenses increased by $2,709 or 23.0% as a result of higher production
costs resulting from the increased volume of water sold, the operating expenses
of the 1996 acquisitions and increased wages and insurance expense.
Depreciation increased by $117 or 3.6% reflecting the impact of utility plant
placed in service since the third quarter of 1996, including the assets from the
acquisitions, partially offset by a reduction in the average depreciation rate.
Depreciation was approximately 2.1% and 2.4% of average utility plant in service
in the third quarter of 1997 and 1996, respectively. The decrease in the average
depreciation rate is due to an adjustment in depreciation expense related to
PSW's fourth quarter 1996 acquisitions.
Amortization decreased $91 principally due to the completion of the amortization
of the costs associated with PSW's 1995 rate filing.
Interest expense increased by $667 or 17.6% reflecting a higher level of
borrowings, partially offset by lower interest rates. The increased borrowings
were used to finance acquisitions and other PSW capital projects.
Allowance for funds used during construction increased by $49 primarily due to
an increase in capital spending which increased the average balance of utility
plant construction work in progress to which AFUDC is applied.
The Company's effective income tax rate was 40.5% in 1997 and 40.4% in 1996.
Net income available to common stock for the quarter increased by $1,111 or
17.9% principally due to increased revenues offset in part by increased
operating expenses, depreciation and interest expense. In 1996, net income
available to common stock was higher than income from continuing operations due
to the reversal of $365 or $.02 per share of reserves for the discontinued
operations. On a per share basis, net income available to common stock increased
$.04 or 12.1% reflecting the improvement in net income, partially offset by a
3.5% increase in the average number of shares outstanding.
9
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
(In thousands of dollars, except per share amounts)
Recent Events
On October 27, 1997 the Delaware River Basin Commission ("DRBC") issued a
drought warning for the Delaware River Basin which includes PSW's service
territory. Under a drought warning, the DRBC asks for voluntary restrictions on
water use, particularly non-essential uses of water. Because the drought warning
was issued in the fourth quarter when non-essential and recreational use of
water has traditionally decreased, it is not expected to have a significant
impact on revenues. While certain areas of the Delaware River Basin are
experiencing water shortages, PSW's water supplies are, at present, adequate.
Impact of Recent Accounting Pronouncements
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard No. 128, Earnings per Share
(SFAS 128). This Statement introduces new methods for calculating earnings per
share. The adoption of this Statement will not affect results from operations,
financial condition, or long-term liquidity, but will require the Company to
restate earnings per share reported in prior periods. Compliance with this
Statement, which will be effective for periods ending after December 15, 1997,
is not expected to have a material effect on the Company's earnings per share
amounts.
In June 1997, the FASB issued SFAS 130, Reporting Comprehensive Income. This
Statement requires that all items that are required to be recognized under
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements. The Company plans to adopt this Statement on January 1,
1998, as required. The Company does not have any items of comprehensive income,
other than that presented on its consolidated statements of income that would
require disclosure and presentation of accumulated balances in the equity
section of the balance sheet.
In June 1997, the FASB issued SFAS 131, Disclosures About Segments of and
Related Information. This Statement established standards for reporting
information about operating segments in annual financial statements and requires
selected information about operating segments in interim financial reports
issued to shareholders. It also establishes standards for related disclosure
about products and services, geographic areas and major customers. The Company
plans to adopt this statement on January 1, 1998, as required. The adoption of
this Statement will not affect results from operations, financial conditions or
long-term liquidity.
10
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
Part II. Other Information
Item 1. Legal Proceedings
There are no pending legal proceedings to which the Registrant
or any of its subsidiaries is a party or to which any of their
properties is the subject that present a reasonable likelihood
of a material adverse impact on the Registrant. Reference is
made to Item 3 of the Company's Annual Report on Form 10-K for
the year ended December 31, 1996, which is included by a
reference herein.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
(b) Report on Form 8-K
None
11
<PAGE>
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be executed on its behalf by the
undersigned thereunto duly authorized.
November 4, 1997
PHILADELPHIA SUBURBAN CORPORATION
---------------------------------
Registrant
Nicholas DeBenedictis
---------------------------------
Nicholas DeBenedictis
Chairman and President
Michael P. Graham
---------------------------------
Michael P. Graham
Senior Vice President - Finance
and Treasurer
12
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page No.
- ----------- ----------- --------
27 Financial Data Schedule 15
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND THE STATEMENTS OF CAPITALIZATION AT SEPTEMBER
30, 1997, AND THE CONSOLIDATED STATEMENTS OF INCOME AND CASH FLOW FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> SEP-30-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 516,667
<OTHER-PROPERTY-AND-INVEST> 69
<TOTAL-CURRENT-ASSETS> 27,637
<TOTAL-DEFERRED-CHARGES> 6,542
<OTHER-ASSETS> 48,388
<TOTAL-ASSETS> 599,303
<COMMON> 4,352
<CAPITAL-SURPLUS-PAID-IN> 129,734
<RETAINED-EARNINGS> 54,876
<TOTAL-COMMON-STOCKHOLDERS-EQ> 188,962
2,786
3,220
<LONG-TERM-DEBT-NET> 205,391
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 10,070
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 26,152
1,429
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 161,293
<TOT-CAPITALIZATION-AND-LIAB> 599,303
<GROSS-OPERATING-REVENUE> 101,090
<INCOME-TAX-EXPENSE> 12,074
<OTHER-OPERATING-EXPENSES> 57,941
<TOTAL-OPERATING-EXPENSES> 70,015
<OPERATING-INCOME-LOSS> 31,075
<OTHER-INCOME-NET> 0
<INCOME-BEFORE-INTEREST-EXPEN> 31,075
<TOTAL-INTEREST-EXPENSE> 13,368
<NET-INCOME> 17,707
146
<EARNINGS-AVAILABLE-FOR-COMM> 17,561
<COMMON-STOCK-DIVIDENDS> 11,957
<TOTAL-INTEREST-ON-BONDS> 15,094
<CASH-FLOW-OPERATIONS> 26,189
<EPS-PRIMARY> 0.89
<EPS-DILUTED> 0.89
</TABLE>
