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, 1995
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) (Zip Code)
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 3,906,369 shares
(Class) (Outstanding at April 30, 1995)<PAGE>
ST. JOSEPH LIGHT & POWER COMPANY
FINANCIAL STATEMENTS
The unaudited financial statements included herein have been
prepared by the Company, 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 l994 Annual Report
to Shareholders incorporated by reference in the Company's Form
l0-K Annual Report for l994.
STATEMENTS OF INCOME
(Unaudited Interim Report)
Three Months Ended
March 31
1995 1994
OPERATING REVENUES
Electric
Retail sales & other $18,684,766 $18,055,385
Sales for resale 87,741 294,171
Other 4,027,609 4,464,836
$22,800,116 $22,814,392
OPERATING EXPENSES:
Production fuel $3,469,216 $4,381,049
Purchased power-System
energy 2,211,869 1,901,304
Resale 46,498 232,648
Gas purchased for resale 1,251,353 1,887,870
Other operations 4,449,753 4,910,733
Maintenance 2,685,003 1,740,984
Depreciation 2,452,935 2,412,817
Taxes - General 1,690,129 1,641,499
Income 958,261 683,505
$19,215,017 $19,792,409
OPERATING INCOME $3,585,099 $3,021,983
OTHER INCOME & DEDUCTIONS:
Allowance for equity funds used
during construction $11,397 $55,562
Other - including income taxes on
nonutility operations $466,929 (9,575)
$478,326 $45,987
INCOME BEFORE INTEREST
CHARGES $4,063,425 $3,067,970
INTEREST CHARGES (Net):
Long-term debt $1,135,417 $1,063,554
Interest on bank notes 117,810 2,235
Other 45,618 26,613
Allowance for borrowed funds used
during construction (39,701) (26,862)
$1,259,144 $1,065,540
NET INCOME AVAILABLE
FOR COMMON STOCK $2,804,281 $2,002,430
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,907,891 3,988,229
EARNINGS PER AVERAGE
COMMON SHARE $0.72 $0.50
DIVIDENDS PAID PER
COMMON SHARE $0.46 $0.45
STATEMENTS OF INCOME
(Unaudited Interim Report)
Twelve Months Ended
March 31
1995 1994
OPERATING REVENUES
Electric
Retail sales & other $75,938,027 $73,866,265
Sales for resale 3,454,362 1,497,264
Other 11,375,495 13,231,719
$90,767,884 $88,595,248
OPERATING EXPENSES:
Production fuel $16,557,852 $16,122,903
Purchased power-System
energy 7,758,457 9,783,380
Resale 3,023,999 1,215,528
Gas purchased for resale 2,659,982 3,722,479
Other operations 13,692,620 24,215,579
Maintenance 9,205,746 8,285,696
Depreciation 9,873,805 9,581,999
Taxes - General 6,408,956 6,240,590
Income 5,485,636 (2,165,730)
$74,667,053 $77,002,424
OPERATING INCOME 16,100,831 $11,592,824
OTHER INCOME & DEDUCTIONS:
Allowance for equity funds used
during construction $72,527 $166,541
Other - including income taxes on
nonutility operations 347,962 44,377
$420,489 $210,918
INCOME BEFORE INTEREST
CHARGES $16,521,320 $11,803,742
INTEREST CHARGES (Net):
Long-term debt $4,332,667 $4,269,674
Interest on bank notes 297,844 98,889
Other 125,711 80,220
Allowance for borrowed funds used
during construction (102,402) (87,831)
$4,653,820 $4,360,952
NET INCOME AVAILABLE
FOR COMMON STOCK $11,867,500 $7,442,790
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,922,062 4,003,846
EARNINGS PER AVERAGE
COMMON SHARE $3.03 $1.86
DIVIDENDS PAID PER
COMMON SHARE $1.81 $1.77
The accompanying Notes to Financial Statements are an integral part of
these statements.<PAGE>
<TABLE>
ST JOSEPH LIGHT & POWER COMPANY
BALANCE SHEETS
<CAPTION>
March 31, December 31,
1995 1994
(Unaudited)
<C> <C>
<S>
ASSETS
UTILITY PLANT:
Electric $268,941,605 $269,283,356
Other 9,458,001 9,472,124
$278,399,606 $278,755,480
Less-Reserves for 136,050,265 135,414,641
depreciation $142,349,341 $143,340,839
Construction work in progress 6,731,364 4,951,211
$149,080,705 $148,292,050
OTHER INVESTMENTS $ 2,365,815 $ 2,345,938
CURRENT ASSETS:
Cash and cash equivalents $ 429,822 $407,392
Temporary investments 14,006,097 990,110
Receivables, less reserves 6,351,780 6,986,150
Unbilled revenue 3,127,336 3,523,432
Fuel, at average cost 4,277,043 3,831,468
Materials and supplies, at 5,318,079 5,323,948
average cost
Prepayments and other 644,889 1,232,848
$ 34,155,046 $ 22,295,348
DEFERRED CHARGES
Debt expense $ 1,497,987 $1,393,299
Lease payments receivable 3,628,579 3,659,444
Prepaid pension expense 8,039,542 7,690,792
Regulatory assets 14,015,101 13,395,196
Other 705,279 626,611
$ 27,886,488 $ 26,765,342
$213,488,054 $199,698,678
CAPITALIZATION & LIABILITIES
CAPITALIZATION (See statements):
Common stock and retained
earnings $76,761,388 $77,591,646
Long-term debt 73,100,000 53,100,000
$149,861,388 $130,691,646
CURRENT LIABILITIES:
Outstanding checks in
excess of cash balances $ 541,821 $ 2,802,771
Accounts payable 4,747,878 7,298,448
Notes payable 1,000,000 6,300,000
Accrued income & general taxes2,768,259 837,654
Accrued interest 1,368,710 1,526,345
Accrued vacation 1,340,442 1,170,344
Dividends declared 1,797,630 -
Other 364,305 372,069
$ 13,929,045 $ 20,307,631
DEFERRED CREDITS AND
NON-CURRENT LIABILITIES:
Capital lease obligations $ 2,523,662 $ 2,527,495
Deferred income taxes 28,377,170 27,186,103
Investment tax credit 5,217,781 5,323,225
Accrued claims and benefits 1,915,588 1,595,709
Deferred revenues 2,579,597 2,609,331
Regulatory liabilities 7,474,349 7,984,979
Other 1,609,474 1,472,559
$ 49,697,621 $ 48,699,401
$213,488,054 $199,698,678
<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, December 31,
1995 1994
(Unaudited)
<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 59,917,165 60,708,144
Other paid-in capital 380,148 380,148
Less-treasury stock, at cost,
720,005 and 718,483 shares
respectively (17,352,024) (17,312,745)
$76,761,388 $77,591,646
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
8.36% due March 15, 2005 20,000,000 -
$ 45,000,000 $ 25,000,000
Total Long-Term Debt $ 73,100,000 $ 53,100,000
Total Capitalization $149,861,388 $130,691,646
<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 CASH FLOWS
(Unaudited Interim Report)
<CAPTION> Three Months Ended March 31
1995 1994
<C> <C>
<S>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,804,281 $ 2,002,430
Adjustments to reconcile net income
to cash provided by operating
activities:
Depreciation 2,452,935 2,412,817
Pension expense (348,750) -
Other post retirement
benefits 323,329 157,413
Deferred taxes and investment
tax credits (37,319) (209,013)
Allowance for equity funds used
during construction (11,397) (55,562)
Gain on unit coal trains (805,874) -
Net changes in working capital items
not considered elsewhere:
Accounts receivable and unbilled
revenue 1,030,466 1,924,071
Fuel (445,575) 448,137
Accounts payable and outstanding
checks (4,811,520) (5,549,582)
Accrued income and general taxes 1,930,605 1,214,207
Other, net 598,527 611,125
Net changes in regulatory
assets and liabilities (7,593) 236,010
Net changes in other assets
and liabilities (137,070) 77,703
Net cash provided by
operating activities $ 2,535,045 $ 3,269,756
CASHFLOWS FROM INVESTING ACTIVITIES:
Gross additions to plant $(3,282,109) $(2,455,107)
Allowance for borrowed funds used
during construction 39,701 26,862
Investments (13,035,864) 1,709,132
Sale of unit coal trains 930,870 -
Other (28,304) 28,700
Net cash used in investing
activities ($15,375,706) $(690,413)
CASHFLOWS FROM FINANCING ACTIVITIES:
Notes payable (5,300,000) 800,000
Long-term debt issued 20,000,000 -
Common stock purchased (39,279) (1,367,360)
Dividends paid (1,797,630) (1,798,675)
Net cash used in financing
activities $12,863,091 $(2,366,035)
NET INCREASE IN CASH AND
CASH EQUIVALENTS $22,430 $213,308
CASH AND CASH
EQUIVALENTS $407,392 $269,720
AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS
AT END OF YEAR $ 429,822 $ 483,028
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during YEAR:
Interest $1,416,261 $1,282,957
Income taxes - $ 584,799
<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.
<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 RETAINED EARNINGS
(Unaudited Interim Report)
<CAPTION> Three Months Ended
March 31
1995 1994
<C> <C>
<S>
Balance at beginning
of period $60,708,144 $56,745,217
Net Income 2,804,281 2,002,430
$63,512,425 $58,747,647
Dividends on common stock 3,595,260 3,581,751
Balance at end of period $59,917,165 $55,165,896
<CAPTION> Twelve Months Ended
March 31
1995 1994
<C> <C>
<S>
Balance at beginning
of period $55,165,896 $54,832,848
Net Income 11,867,500 7,442,790
$67,033,396 $62,275,638
Dividends on common stock 7,116,231 7,109,742
Balance at end of period $59,917,165 $55,165,896
<FN> The accompanying Notes to Financial Statements are an
integral part of these statements.
</TABLE>
<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 1994 Annual Report to Shareholders
incorporated by reference in the Company's Form 10-K Annual Report for 1994.
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.
2. RATE MATTERS
In February 1995, the MPSC approved a stipulated agreement regarding the
allocation of investments and expenses among the Company's three business
segments. Revenue-neutral to the Company, the agreement will annually
reduce industrial steam revenue by $550,000 and increase electric and
natural gas revenues by $500,000 and $50,000, respectively. On May 5, 1995
the MPSC approved tariffs to be implemented in the second quarter of 1995.
<PAGE>
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.
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.
RESULTS OF OPERATIONS -
Comparison of the quarters ended March 31, 1995 and 1994
Electric sales and other revenues increased 3.5% with sales remaining
relatively stable for the quarter. The growth in revenue is primarily
attributable to a 3.1% electric rate increase which became effective
June 15, 1994. While warmer than normal temperatures for the quarter
reduced residential sales by 2.1%, increased commercial and
industrial sales offset the reduction.
Sales for resale and related purchased power expense decreased for
the quarter reflecting the reduced demands of regional utilities.
Other revenues decreased for the three months ended due to a reduction
in natural gas revenues. The reduction was due to decreased sales and
lower prices for purchased gas. The latter is reflected in the Purchased
Gas Adjustment and is passed on to customers. Partially offsetting the
decrease were increased industrial steam revenues which reflect a
November 1994 price increase. Industrial steam sales increased slightly
for the quarter.
System energy costs decreased 9.6% while system energy requirements
remained relatively stable. Lower unit fuel and purchased power prices in
addition to increased use of the more efficient Iatan unit resulted in
significant savings. A scheduled maintenance at the Lake Road plant
resulted in increased purchase power expenses for the quarter.
Gas purchased for resale decreased due to reduced sales and lower unit
prices.
Other operations decreased 9.4% for the quarter ended primarily as a
result of the June 1994 rate case order which changed the Company's
accounting for pension expense.
Maintenance expense increased significantly due to a scheduled overhaul
of a boiler and turbine at the Lake Road plant. Partially offsetting the
increase was extended maintenance at the Iatan unit during the 1994 quarter.
The increase in income tax expense for the quarter was due primarily to
an increase in pre-tax income.
Other income increased due to a gain on the sale of unit coal trains at
the Iatan plant. The net of tax gain from the sale was approximately $.5
million. The leasing of more efficient aluminum trains will result in
reduced delivered fuel costs and train emissions.
Interest charges for the period was impacted by the issuance of a
$20 million medium-term note and by increased short-term borrowings.
Comparison of the twelve months ended March 31, 1995 and 1994
Electric retail sales and other revenue increased 2.8% for the period
reflecting the June 1994 electric rate increase and slightly increased
sales. Increased commercial sales were partially offset by reduced
residential and industrial sales.
Sales for resale and related purchased power expenses increased due to
expanded transactions with regional utilities.
Other revenues were down 14.0% for the period reflecting decreases in
the natural gas and industrial steam segments. Natural gas sales were down
13.5% due to warmer temperatures reducing residential heating requirements
and more industrial customers opting for transportation services. Lower
unit prices for gas, which is passed on to the customer through the
Purchased Gas Adjustment, also impacted gas revenues for the period.
Industrial steam sales decreased 12.0% primarily due to the closing of a
large customer in late 1993. The reduction in steam sales was partially
offset by a November 1994 price increase.
System energy cost decreased 6.1% for the twelve months ended period
primarily due to the increased use of the Iatan plant, the Company's most
efficient unit, and reduced unit fuel costs. Partially offsetting the
decrease was the amortization of previously incurred ash disposal costs at
the Lake Road facility.
The decrease in gas purchased for resale is a result of reduced sales
and lower unit prices.
Other operations reflect the effects of the 1993 and 1994 rate case
orders. The 1993 order required the Company to change the method of
accounting for pension expense, resulting in a one-time charge of $4.6
million. The 1994 order eliminated the regulatory liability established
as a result of the 1993 rate order and reduced pension expense by a
one-time adjustment of $5.9 million.
Maintenance expense increased 11.1%, primarily due to scheduled
maintenance at the Lake Road plant. Reduced maintenance requirements at
the Iatan plant partially offset the increase.
Income tax expense increased due to the tax effects of the pension
expense adjustments required by the 1993 and 1994 rate case adjustments.
The 1993 order also required the Company to change its recognition of
the tax effects of certain temporary differences from a normalized to
a flow-through basis.
The increase in other income was primarily attributable to the gain on
the sale of the unit coal trains.
Total interest expense increased 6.7%, primarily as a result of increased
short-term borrowings and the issuance of a $20 million medium-term note.
LIQUIDITY AND CAPITAL RESOURCES - In March 1995, the Company issued a $20
million medium-term note due 2005. The proceeds were used to reduce
short-term debt with the remainder temporarily invested for future capital
requirements and general corporate purposes.
At March 31, 1995, the Company had $14.4 million in cash and temporary
investments and $2.4 million in other investments. The Company has $21.4
million in unused lines of credit. 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 $26.8 million for 1995
and about $128 million during the next five years. Construction requirements
will be met with internally generated funds supplemented by external
financing as necessary.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibit 27 - Financial Data Schedule
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 8, 1995
<TABLE> <S> <C>
<ARTICLE> UT
<CIK> 0000086251
<NAME> ST JOSEPH LIGHT & POWER COMPANY
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<BOOK-VALUE> Per-Book
<TOTAL-NET-UTILITY-PLANT> 149080705
<OTHER-PROPERTY-AND-INVEST> 2365815
<TOTAL-CURRENT-ASSETS> 34155046
<TOTAL-DEFERRED-CHARGES> 27886488
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<TOTAL-ASSETS> 213488054
<COMMON> 16464075
<CAPITAL-SURPLUS-PAID-IN> 380148
<RETAINED-EARNINGS> 59917165
<TOTAL-COMMON-STOCKHOLDERS-EQ> 76761388
0
0
<LONG-TERM-DEBT-NET> 73100000
<SHORT-TERM-NOTES> 1000000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
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<CAPITAL-LEASE-OBLIGATIONS> 2523662
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<OTHER-ITEMS-CAPITAL-AND-LIAB> 60103004
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<INCOME-BEFORE-INTEREST-EXPEN> 4063425
<TOTAL-INTEREST-EXPENSE> 1259144
<NET-INCOME> 2804281
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<EARNINGS-AVAILABLE-FOR-COMM> 2804281
<COMMON-STOCK-DIVIDENDS> 3595260
<TOTAL-INTEREST-ON-BONDS> 4332667
<CASH-FLOW-OPERATIONS> 2535045
<EPS-PRIMARY> .72
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</TABLE>
