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, 1994
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-3576
ST. JOSEPH LIGHT & POWER COMPANY
(Exact name of registrant as specified in its charter)
State of Missouri 44-04l9850
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
520 Francis Street, P. O. Box 998,
St. Joseph, Missouri 64502-0998
(Address of principal executive offices)
Registrant's telephone number, including area code (816) 233-
8888
Former name, former address and former fiscal year, if changed
since last report.
Indicate by check mark whether the registrant (l) has filed all
reports required to be filed by Section l3 or l5(d) of the
Securities Exchange Act of l934 during the preceding l2 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, without par value (Class)
3,958,091 shares (Outstanding at April 30, 1994)
ST. JOSEPH LIGHT & POWER COMPANY
FINANCIAL STATEMENTS
The financial statements included herein 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 l993 Annual
Report to Shareholders incorporated by reference in the Company's
Form l0-K Annual Report for l993.
<TABLE>
STATEMENTS OF INCOME
(Unaudited Interim Report)
<CAPTION>
Three Months Ended
March 31
1994 1993
<C> <C>
<S>
OPERATING REVENUES:
Electric
Retail sales & Other $18,055,385 $18,450,074
Sales for resale 294,171 226,365
Other 4,464,836 4,081,759
$22,814,392 $22,758,198
OPERATING EXPENSES:
Production fuel $ 4,381,049 $ 4,645,913
Purchased power-System energy 1,901,304 1,687,048
Resale 232,648 79,337
Gas purchased for resale 1,887,870 1,182,356
Other operations 4,910,733 4,527,574
Maintenance 1,740,984 1,641,021
Depreciation 2,412,817 2,345,015
Taxes - General 1,641,499 1,685,015
Income 683,505 1,287,406
$19,792,409 $19,080,685
OPERATING INCOME $ 3,021,983 $ 3,677,513
OTHER INCOME & DEDUCTIONS:
Allowance for equity funds used
during construction $ 55,563 $ 25,334
Other - including income taxes
on nonutility operations (9,576) (59,082)
$ 45,987 $ (33,748)
INCOME BEFORE INTEREST CHARGES $ 3,067,970 $ 3,643,765
INTEREST CHARGES (Net):
Long-term debt $ 1,063,554 $ 1,152,315
Interest on bank notes 2,235 5,426
Other 26,613 15,762
Allowance for borrowed funds
used during construction (26,862) (11,581)
$ 1,065,540 $ 1,161,922
NET INCOME AVAILABLE FOR
COMMON STOCK $ 2,002,430 $ 2,481,843
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,988,229 4,005,611
EARNINGS PER AVERAGE COMMON SHARE $0.50 $0.62
DIVIDENDS PAID PER COMMON SHARE $0.45 $0.44
<FN> The accompanying Notes to Financial Statements are an
integral part of these statements.
</TABLE>
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<PAGE>
<TABLE>
STATEMENTS OF INCOME
(Unaudited Interim Report)
<CAPTION>
Twelve Months Ended
March 31
1994 1993
<C> <C>
<S>
OPERATING REVENUES:
Electric
Retail sales & Other $73,866,265 $71,770,532
Sales for resale 1,497,264 497,090
Other 13,231,719 12,128,239
$88,595,248 $84,395,861
OPERATING EXPENSES:
Production fuel $16,122,903 $16,232,886
Purchased power-System energy 9,783,380 6,420,487
Resale 1,215,528 244,464
Gas purchased for resale 3,722,479 2,505,462
Other operations 24,215,579 16,603,965
Maintenance 8,285,696 7,575,182
Depreciation 9,581,999 9,226,364
Taxes - General 6,240,590 6,049,144
Income (2,165,730) 5,020,759
$77,002,424 $69,878,713
OPERATING INCOME $11,592,824 $14,517,148
OTHER INCOME & DEDUCTIONS:
Allowance for equity funds used
during construction $ 166,541 $ 148,566
Other - including income taxes
on nonutility operations 44,377 23,872
$ 210,918 $ 172,438
INCOME BEFORE INTEREST CHARGES $11,803,742 $14,689,586
INTEREST CHARGES (Net):
Long-term debt $ 4,269,674 $ 4,630,627
Interest on bank notes 98,889 23,420
Other 80,220 78,804
Allowance for borrowed funds
used during construction (87,831) (72,059)
$ 4,360,952 $ 4,660,792
NET INCOME AVAILABLE FOR
COMMON STOCK $ 7,442,790 $10,028,794
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 4,003,846 4,015,553
EARNINGS PER AVERAGE COMMON SHARE $1.86 $2.50
DIVIDENDS PAID PER COMMON SHARE $1.77 $1.73
<FN> The accompanying Notes to Financial Statements are an
integral part of these statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ST. JOSEPH LIGHT & POWER COMPANY
BALANCE SHEETS
<CAPTION>
March 31,
1994 December 31
(Unaudited) 1993
<C> <C>
<S>
ASSETS
UTILITY PLANT:
Electric $262,228,591 $262,816,268
Other 9,452,828 9,461,245
$271,681,419 $272,277,513
Less - Reserves for depreciation 132,340,548 131,107,136
$139,340,871 $141,170,377
Construction work in progress 6,019,704 4,166,823
$145,360,575 $145,337,200
OTHER INVESTMENTS, at cost $ 1,163,432 $ 669,238
CURRENT ASSETS:
Cash and cash equivalents $ 483,028 $ 269,720
Temporary investments 2,937 2,206,263
Receivables, less reserves 6,700,348 7,986,400
Unbilled revenue 2,814,251 3,452,270
Fuel, at average cost 2,381,810 2,829,947
Materials and supplies, at
average cost 5,125,149 5,011,198
Prepayments and other 282,007 1,173,467
$ 17,789,530 $ 22,929,265
DEFERRED CHARGES
Debt expense $ 1,459,892 $ 1,475,350
Lease payments receivable 3,750,928 3,781,793
Prepaid pension expense 6,484,213 6,108,963
Other 1,031,592 683,162
$ 12,726,625 $ 12,049,268
$177,040,162 $180,984,971
CAPITALIZATION & LIABILITIES
CAPITALIZATION(See Statements):
Common stock and retained earnings $ 73,533,272 $ 76,462,078
Long-term debt 53,100,000 53,100,000
$126,633,272 $129,562,078
CURRENT LIABILITIES:
Outstanding checks in excess of
cash balances $ 51,486 $ 3,061,474
Accounts payable 3,661,794 6,201,388
Notes payable 800,000 -
Accrued income and general taxes 2,100,678 886,471
Accrued interest 998,479 1,211,147
Accrued vacation 1,278,939 1,033,659
Dividends declared 1,783,076 -
Other 318,699 320,501
$ 10,993,151 $ 12,714,640
DEFERRED CREDITS AND
NON-CURRENT LIABILITIES:
Capital lease obligations $ 2,538,553 $ 2,542,096
Deferred income taxes 23,361,881 23,935,040
Investment tax credit 5,635,951 5,744,971
Accrued claims and benefits 1,751,826 1,511,723
Deferred revenues 2,698,818 2,728,664
Regulatory liabilities, net 2,258,228 1,370,996
Other 1,168,482 874,763
$ 39,413,739 $ 38,708,253
$177,040,162 $180,984,971
<FN> The accompanying Notes to Financial Statements are
an integral part of these statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ST. JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF CAPITALIZATION
<CAPTION>
March 31,
1994 December 31,
(Unaudited) 1993
<C> <C>
<S>
COMMON STOCK AND RETAINED
EARNINGS:
Common stock--authorized
25,000,000 shares, without
par value, issued 4,626,374
shares $ 33,816,099 $ 33,816,099
Retained earnings 55,165,896 56,745,217
Other paid-in capital 380,148 362,273
Less-treasury stock, at cost,
663,983 and 617,818 shares,
respectively (15,828,871) (14,461,511)
$ 73,533,272 $ 76,462,078
LONG-TERM DEBT:
First Mortgage Bonds-
9.44% Series due
February 1, 2021 $ 22,500,000 $ 22,500,000
7-3/8% Pollution Control
Revenue Bonds, Series due
February 1, 2013 5,600,000 5,600,000
$ 28,100,000 $ 28,100,000
Medium-term notes-
5.77% due December 8, 1998 $ 5,000,000 $ 5,000,000
7.13% due November 29, 2013 1,000,000 1,000,000
7.16% due November 29, 2013 9,000,000 9,000,000
7.17% due December 1, 2023 7,000,000 7,000,000
7.33% due November 30, 2023 3,000,000 3,000,000
$ 25,000,000 $ 25,000,000
Total first mortgage bonds and
medium-term notes $ 53,100,000 $ 53,100,000
Total Capitalization $126,633,272 $129,562,078
<FN> The accompanying Notes to Financial Statements are an
integral part of these statements.
</TABLE>
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<PAGE>
<TABLE>
ST. JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited Interim Report)
<CAPTION>
Three Months Ended
March 31
1994 1993
<C> <C>
<S>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 2,002,430 $ 2,481,843
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 2,412,817 2,345,015
Pension expense - (285,823)
Other post retirement benefits 157,413 178,344
Deferred taxes and investment tax
credits (209,013) 141,848
Allowance for equity funds used
during construction (55,562) (25,334)
Net changes in working capital
items not considered elsewhere:
Accounts receivable and unbilled
revenue $ 1,924,071 $ 595,457
Fuel 448,137 1,600,306
Accounts payable and outstanding
checks (5,549,582) (3,776,406)
Accrued income and general taxes 1,214,207 1,386,979
Other, net 611,125 (206,065)
Net change in regulatory
liabilities 236,010 -
Net changes in other assets and
liabilities 77,703 (446,234)
Net cash provided by operating
activities $ 3,269,756 $ 3,989,930
CASH FLOWS FROM INVESTING
ACTIVITIES:
Gross additions to plant $(2,455,107) $(2,453,330)
Allowance for borrowed funds
used during construction 26,862 11,581
Investments 1,709,132 223,043
Other 28,700 13,753
Net cash used in investing
activities $ (690,413) $(2,204,953)
<PAGE>
CASH FLOWS FROM FINANCING
ACTIVITIES:
Long-term debt reacquired $ - $ (27,000)
Increase in notes payable 800,000 -
Common stock (purchased)/issued
from treasury stock (1,367,360) 123,961
Dividends paid (1,798,675) (1,762,163)
Net cash used in financing
activities $(2,366,035) $(1,665,202)
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 213,308 $ 119,775
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 269,720 279,613
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $ 483,028 $ 399,388
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during period:
Interest $ 1,282,957 $ 1,788,546
Income taxes $ 584,799 $ 533,280
<FN> For purposes of the Statements of Cash Flows, the Company
considers all highly liquid debt instruments purchased with
an original maturity of three months or less to be cash
equivalents.
The accompanying Notes to financial Statements are an
integral part of these statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ST. JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF RETAINED EARNINGS
(Unaudited Interim Report)
<CAPTION>
Three Months Ended
March 31
1994 1993
<S> <C> <C>
Balance at beginning of period $56,745,217 $55,877,164
Net income 2,002,430 2,481,843
$58,747,647 $58,359,007
Dividends on common stock 3,581,751 3,526,159
Balance at end of period $55,165,896 $54,832,848
<CAPTION>
Twelve Months Ended
March 31
1994 1993
<S> <C> <C>
Balance at beginning of period $54,832,848 $51,786,569
Net income 7,442,790 10,028,794
$62,275,638 $61,815,363
Dividends on common stock 7,109,742 6,982,515
Balance at end of period $55,165,896 $54,832,848
<FN> The accompanying Notes to Financial Statements are an
integral part of these statements.
</TABLE>
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Company's interim financial statements have been prepared in
accordance with the accounting policies described in the
financial statements and related notes included in the Company's
1993 Annual Report to Shareholders incorporated by reference in
the Company's Form 10-K Annual Report for 1993. There are no
significant differences in the Company's interim and annual
accounting policies. However, due to estimates inherent in the
accounting process for other than annual periods, the accuracy of
the amounts in the interim financial statements is in some
respects dependent upon facts that will exist and reviews that
will be performed by the Company later in the fiscal year.
MANAGEMENT STATEMENT
The information contained in these financial statements
reflects all adjustments which are, in the opinion of
management necessary to state fairly the results of the
interim periods.<PAGE>
ST. JOSEPH LIGHT & POWER COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
GENERAL - The Company is a public utility engaged primarily in
the business of generating and distributing electric energy in a
ten-county area in northwestern Missouri. It also sells natural
gas and industrial steam in limited areas.
In November 1993, the Company filed a request with the Missouri
Public Service Commission (MPSC) to increase annual electric
revenues by $5.5 million. The increase would be applied equally
to all customer classes. In December 1993, the Company filed a
request to increase industrial steam revenues by $800,000.
Hearings on these requests are scheduled for late June and early
August, respectively. The MPSC has until late 1994 to decide the
cases.
RESULTS OF OPERATIONS - Electric retail sales and other revenues
decreased 2.1% for the three months ended, and increased 2.9% for
the twelve months ended March 31, 1994. Both periods were
adversely affected by a $876,000 annual rate reduction which
became effective July 5, 1993 and the loss of two major
industrial customers in 1993. Despite the business losses,
megawatt-hour sales for the twelve months ended increased 3.1%
primarily due to greater residential and commercial cooling
requirements during the summer of 1993.
Expanded transactions with regional utilities increased sales for
resale and related purchase power expense for the three and
twelve month periods.
Other revenues increased in both periods due to an increase in
natural gas revenues. The increase reflects a $275,000 annual
price adjustment approved by the MPSC in April 1993 and higher
prices for purchased gas. The latter is reflected in the
Purchased Gas Adjustment and is passed on to customers. The
increase was partially offset by reductions in industrial steam
revenue in both periods, due to the loss of a major steam
customer in late 1993.
Energy costs decreased .8% for the three months ended and
increased 14.4% for the twelve months ended. The increase in the
twelve month period was the result of higher system requirements,
increased fuel and purchased power costs and the limited
availability of the Iatan plant during late 1993. Iatan is the
Company's most efficient unit.
Gas purchased for resale increased in both periods due to the
increased sales and higher unit prices for natural gas.
Other operations increased for both periods reflecting the
effects of the June 1993 rate case order which changed the
Company's accounting policies for pension expense. Also
impacting the twelve month period was a one-time charge of $4.6
million mandated by the rate order for pension and rate case
expenses and the implementation of Statement of Financial
Accounting Standards No. 106, Employers' Accounting for
Postretirement Benefits Other than Pensions, in January 1993.
For the three and twelve months ended, maintenance expense
increased 6.1% and 9.4% respectively primarily due to increased
maintenance requirements at the Iatan plant. Maintenance for the
twelve month period was significantly impacted by an extended
outage at the Iatan plant in late 1993.
Depreciation expense increased during the periods as a result of
additional plant investments.
General taxes decreased for the three months ended period and
increased for the twelve months ended period. The twelve month
period increase was primarily due to city license taxes which are
based on revenues.
The decrease in income tax expense for the periods was the result
of lower pre-tax earnings and the effect of the July 1993 rate
case order related to deferred taxes. The rate order required
the Company to change its accounting policy regarding the
recognition of certain temporary differences. A one-time
addition to earnings related to these differences of $2.7 million
impacted the twelve month ended period.
Interest expense decreased 8.3% for the three months ended period
and 6.4% for the twelve month ended period, primarily due to
replacing five issues of first mortgage bonds with lower interest
medium-term notes in late 1993.
LIQUIDITY AND CAPITAL RESOURCES - At March 31, 1994, the Company
had $.5 million in cash and temporary investments and $1.2
million in other investments. The Company has $6.4 million in
conventional lines of credit and $10 million unused in another
short-term arrangement to meet short-term cash needs. Financial
coverages are at levels in excess of those required for issuance
of debt and preferred stock.
The Company's short-term construction program (net of Allowance
for Funds Used During Construction) is currently projected at
$14.8 million for 1994 and about $99 million during the next five
years. Construction requirements will be met primarily with
internally generated funds supplemented by external financing as
necessary.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
b. No Form 8-K Current Report was filed during the quarter ended
March 31, 1994.<PAGE>
SIGNATURES
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.
ST. JOSEPH LIGHT & POWER COMPANY
(Registrant)
L. J. STOLL
Vice President-Finance, Treasurer
and Assistant Secretary
(Duly Authorized Officer)
Dated: May 11, 1994
