UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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 3,917,185 shares
(Class) (Outstanding at April 30, 1996)<PAGE>
<TABLE>
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
ST. JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Three Months Ended
March 31
1996 1995 <C> <C>
<S>
OPERATING REVENUES:
Electric
Retail sales & other $18,864,646 $18,684,766
Sales for resale 582,335 87,741
Other 4,172,081 4,027,609
$23,619,062 $22,800,116
OPERATING EXPENSES:
Production fuel $ 4,349,874 $ 3,469,216
Purchased power-
System energy 2,141,999 2,211,869
Resale 429,719 46,498
Gas purchased for
resale 1,446,706 1,251,353
Other operations 4,636,423 4,449,753
Maintenance 1,864,397 2,685,003
Depreciation 2,537,284 2,452,935
Taxes - General 1,672,481 1,690,129
Income 999,981 958,261
$20,078,864 $19,215,017
OPERATING INCOME $ 3,540,198 $ 3,585,099
OTHER INCOME & DEDUCTIONS:
Allowance for equity
funds used during
construction $ 77,310 $ 11,397
Other - including
income taxes on
nonutility operations (42,492) 466,929
$ 34,818 $ 478,326
INCOME BEFORE INTEREST
CHARGES $3,575,016 $ 4,063,425
INTEREST CHARGES (Net):
Long-term debt $1,462,400 $ 1,135,417
Interest on bank
notes - 117,810
Other 34,547 45,618
Allowance for borrowed
funds used during
construction (63,789) (39,701)
$ 1,433,158 $ 1,259,144
NET INCOME $ 2,141,858 $ 2,804,281
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,911,079 3,907,891
EARNINGS PER AVERAGE
COMMON SHARE $.55 $0.72
DIVIDENDS PAID PER
COMMON SHARE $0.47 $0.46
STATEMENTS OF INCOME
(Unaudited)
<CAPTION>
Twelve Months Ended
March 31
1996 1995 <C> <C>
<S>
OPERATING REVENUES:
Electric
Retail sales & other $81,121,965 $75,938,027
Sales for resale 1,546,758 3,454,362
Other 11,670,841 11,375,495
$94,339,564 $90,767,884
OPERATING EXPENSES:
Production fuel $15,419,756 $16,557,852
Purchased power-
System energy 9,523,993 7,758,457
Resale 1,175,067 3,023,999
Gas purchased for
resale 2,941,112 2,659,982
Other operations 19,622,341 13,692,620
Maintenance 8,967,708 9,205,746
Depreciation 10,106,198 9,873,805
Taxes - General 6,315,324 6,408,956
Income 4,600,355 5,485,636
$78,671,854 $74,667,053
OPERATING INCOME $15,667,710 $16,100,831
OTHER INCOME & DEDUCTIONS:
Allowance for equity
funds used during
construction $ 204,424 $ 72,527
Other - including
income taxes on
nonutility
operations 234,304 347,962
$ 438,728 $ 420,489
INCOME BEFORE INTEREST
CHARGES $ 16,106,438 $16,521,320
INTEREST CHARGES (Net):
Long-term debt $ 5,885,282 $ 4,332,667
Interest on bank
notes 440 297,844
Other 136,201 125,711
Allowance for borrowed
funds used during
construction (293,520) (102,402)
$ 5,728,403 $ 4,653,820
NET INCOME $10,378,035 $11,867,500
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,907,540 3,922,062
EARNINGS PER AVERAGE
COMMON SHARE $2.66 $3.03
DIVIDENDS PAID PER
COMMON SHARE $1.85 $1.81
<FN> See Note to Financial Statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
ST JOSEPH LIGHT & POWER COMPANY
BALANCE SHEETS
<CAPTION>
March 31, December 31,
1996 1995
(Unaudited)
<C> <C>
<S>
ASSETS
UTILITY PLANT:
Electric $284,973,220 $283,958,833
Other 9,641,663 9,624,603
$294,614,883 $293,583,436
Less-Reserves for
depreciation 142,750,043 140,391,437
$151,864,840 $153,191,999
Construction work
in progress 8,922,207 7,505,407
$160,787,047 $160,697,406
OTHER INVESTMENTS $ 1,736,552 $ 1,727,267
CURRENT ASSETS:
Cash and cash
equivalents $ 294,214 $ 287,319
Temporary investments 4,813,702 6,201,584
Receivables, less
reserves 7,123,487 7,567,875
Accrued utility
revenue 3,344,606 3,594,938
Fuel, at average cost 2,724,339 4,015,138
Materials and supplies,
at average cost 5,595,995 5,500,452
Prepayments and other 394,090 1,208,038
$ 24,290,433 $ 28,375,344
DEFERRED CHARGES
Debt expense $ 1,639,515 $ 1,668,452
Lease payments
receivable 3,505,121 3,535,986
Prepaid pension expense 9,122,478 8,836,140
Regulatory assets 14,136,462 14,126,115
Other 410,589 363,505
$ 28,814,165 $ 28,530,198
$215,628,197 $ 219,330,215
CAPITALIZATION & LIABILITIES
CAPITALIZATION (See statements):
Common stock and retained
earnings $ 80,228,515 $ 81,393,532
Long-term debt 73,100,000 73,100,000
$153,328,515 $154,493,532
CURRENT LIABILITIES:
Outstanding checks in
excess of cash balances $ 78,023 $ 2,523,453
Accounts payable 4,679,923 7,935,124
Accrued income &
general taxes 2,315,751 721,469
Accrued interest 1,349,572 1,961,342
Accrued vacation 1,247,953 1,122,925
Dividends declared 1,840,910 -
Other 389,076 394,990
$ 11,901,208 $ 14,659,303
DEFERRED CREDITS AND
NON-CURRENT LIABILITIES:
Capital lease
obligations $ 2,507,551 $ 2,511,699
Deferred income taxes 29,533,208 29,303,855
Investment tax credit 4,807,719 4,910,823
Accrued claims and
benefits 1,961,915 1,699,204
Deferred revenues 2,460,969 2,490,578
Regulatory liabilities 7,287,180 7,287,180
Other 1,839,932 1,974,041
$ 50,398,474 $ 50,177,380
$215,628,197 $219,330,215
<FN> See Note to Financial Statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
ST JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF CAPITALIZATION
<CAPTION>
March 31 December 31,
1996 1995
(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 63,025,035 64,560,183
Other paid-in capital 486,234 380,148
Less-treasury stock, at cost,
709,544 and 720,005 shares
respectively (17,098,853) (17,362,898)
$ 80,228,515 $ 81,393,532
LONG-TERM DEBT:
First Mortgage Bonds -
9.44% Series due
February 1, 2021 $ 22,500,000 $ 22,500,000
Unsecured Pollution
Control Bonds- 5.85%
Series due
February 1, 2013 $ 5,600,000 $ 5,600,000
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 20,000,000
$ 45,000,000 $ 45,000,000
Total Long-Term Debt $ 73,100,000 $ 73,100,000
Total Capitalization $153,328,515 $154,493,532
<FN> See Note to Financial Statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ST. JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF RETAINED EARNINGS
(Unaudited)
<CAPTION>
Three Months Ended
March 31
1996 1995
<C> <C>
<S>
Balance at beginning
of period $64,560,183 $60,708,144
Net Income 2,141,858 2,804,281
$66,702,041 $63,512,425
Dividends on
common stock 3,677,006 3,595,260
Balance at end of period $63,025,035 $59,917,165
<CAPTION>
Twelve Months Ended
March 31
1996 1995
<C> <C>
<S>
Balance at beginning
of period $59,917,165 $55,165,896
Net Income 10,378,035 11,867,500
$70,295,200 $67,033,396
Dividends on
common stock 7,270,165 7,116,231
Balance at end of period $63,025,035 $59,917,165
<FN> See Note to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
ST JOSEPH LIGHT & POWER COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended
March 31
1996 1995
<C> <C>
<S>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 2,141,858 $ 2,804,281
Adjustments to reconcile
net income to cash provided
by operating activities:
Depreciation 2,537,284 2,452,935
Pension expense (237,661) (288,765)
Other post retirement
benefits 223,263 267,716
Deferred taxes and
investment credit 126,249 (37,319)
Allowance for equity
funds used during
construction (77,310) (11,397)
Gain from sale of
unit coal trains -- (805,874)
Net changes in working capital
items not considered elsewhere:
Accounts receivable and
accrued utility revenues 694,720 1,030,466
Fuel 1,290,799 (445,575)
Accounts payable and
outstanding checks (5,700,631) (4,811,520)
Accrued income and
general taxes 1,594,282 1,930,605
Other, net 225,749 598,527
Net changes in regulatory
assets and liabilities (10,347) (7,593)
Net changes in other assets
and liabilities (33,575) (137,604)
Net cash provided by
operating activities $ 2,774,680 $ 2,538,883
CASH FLOWS FROM INVESTING
ACTIVITIES:
Gross additions to plant $ (2,651,641) $(3,285,947)
Allowance for borrowed
funds used during
construction 63,789 39,701
Investments 1,378,597 (13,035,864)
Proceeds from sale of
unit coal trains -- 930,870
Other 13,521 (28,304)
Net cash used in investing
activities $ (1,195,734) $(15,379,544)
CASH FLOWS FROM
FINANCING ACTIVITIES:
Decrease in notes
payable $ -- $ (5,300,000)
Long-term debt issued -- 20,000,000
Common stock purchased -- (39,279)
Common stock issued 264,045 --
Dividends paid (1,836,096) (1,797,630)
Net cash provided by
(used in) financing
activities $(1,572,051) $12,863,091
NET INCREASE IN CASH
AND CASH
EQUIVALENTS $ 6,895 $ 22,430
CASH AND CASH
EQUIVALENTS AT
BEGINNING OF YEAR $ 287,319 $ 407,392
CASH AND CASH
EQUIVALENTS AT
END OF YEAR $ 294,214 $ 429,822
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during year:
Interest $ 2,079,780 $ 1,416,261
Income taxes $ 50,000 $ --
<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> See Note to Financial Statements.
</TABLE>
<PAGE>
ST. JOSEPH LIGHT & POWER COMPANY
NOTE TO FINANCIAL STATEMENTS
SIGNIFICANT ACCOUNTING POLICIES
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.
See Notes to Financial Statements included in the Company's 1995
Annual Report to Shareholders incorporated by reference in the
Company's 1995 Annual Report on Form 10-K. 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. 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.
The results for the three months ended March 31, 1996 are
not necessarily indicative of the results for the entire year 1996.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
In the electric and natural gas utility industries generally,
results of operations show a seasonal pattern influenced primarily by
the weather. The Company expects that its historical pattern of
higher revenues and earnings in the third quarter will be more
pronounced as a result of rate-design changes implemented in June
1995 which increase electric rates from June through September and
decrease rates from October through May.
RESULTS OF OPERATIONS -
Comparison of the quarters ended March 31, 1996 and 1995
Electric retail sales and other revenues increased 1% for
the quarter while sales increased 9%. The following factors
contributed to the increases:
--temperatures were cooler than normal;
--rate-design changes implemented in June 1995
reduced winter and increased summer prices to
reflect seasonal production costs; and
--an allocations case which will annually increase
electric and natural gas operating revenues by
$500,000 and $50,000, respectively, and decrease
industrial steam operating revenues by $550,000
was effective in June 1995.
Sales for resale and related purchased power expense
increased for the quarter reflecting increased transactions with
regional utilities and energy marketers.
Other operating revenues increased 4% due to increased
sales in the natural gas segment. Natural gas sales increased 14%
primarily due to cooler than normal temperatures and increased
industrial requirements. Partially offsetting the increase were reduced
industrial steam revenues. While industrial steam sales increased
10% for the period, revenues decreased 11% reflecting a rate
reduction for a major customer and the change in revenues due to the
allocations case discussed above.
System energy costs (production fuel and purchased
power) increased 14% while retail sales increased 9%. The excess
of the increase in cost over the increased volume was a result of
increased usage of the less-efficient Lake Road facility caused by
record demands, partially offset by lower unit coal prices.
Gas purchased for resale increased 16% reflecting the
increased natural gas sales.
Maintenance expense decreased significantly due to a
reduction in the maintenance requirements at the Company's Lake
Road plant.
The decrease in other income was primarily attributable to
a gain in 1995 of approximately $500,000 (net of tax) on the sale of
the unit coal trains at the Iatan plant.
Interest charges increased 14% as a result of the issuance
of $20 million of medium-term notes in March 1995.
Comparison of the twelve months ended March 31, 1996 and 1995
Electric retail sales and other revenues increased 7% while
sales for the period increased 6%. The increase is primarily a result
of the following factors:
--weather extremes during both summer and winter
increased sales, especially to residential
customers;
--the less-than-full-year impact of the rate-design
change;
--the allocations case increase of $500,000 in
annual revenues, effective June 15, 1995; and
a full-year's contribution from the electric price
increase of 3% implemented in June 1994.
Sales for resale and related purchased power expenses
decreased due to reduced transactions with regional utilities.
Other operating revenues increased 3% for the period
reflecting an increase in the natural gas segment. Natural gas sales
were up 16% primarily due to the impact of cooler than normal
winter weather on heating requirements. Industrial steam sales
increased 3% while revenues decreased 6%. The decrease in
revenues was the net result of several factors, including a November
1994 rate increase, the June 1995 allocation case reduction and a rate
decrease for a major customer.
System energy costs increased 3% primarily due to a 6%
increase in retail sales, partially offset by lower fuel prices.
The increase in gas purchased for resale was the result of
increased natural gas sales.
Other operations expense increased 43% for the period
primarily as a result of the June 1994 rate order which required a
one-time adjustment of approximately $6 million to pension expense.
Income tax expense decreased due to the tax effect of the
pension expense adjustment required by the 1994 rate order, partially
offset by higher pretax income.
The decrease in other income was primarily attributable to
the 1995 gain on the sale of the unit coal trains, partially offset by
increased investment income.
Interest charges increased 23%, primarily as a result of the
issuance of $20 million of medium-term notes in March 1995.
LIQUIDITY AND CAPITAL RESOURCES - At March 31, 1996,
the Company had $5.1 million in cash and temporary investments.
The Company has $3.9 million in unused committed lines of credit
and $7.5 million in other unused borrowing facilities. 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 $11.4 million for the remainder of 1996 and about $76 million for
the five-year period ending 2000.The Company expects to finance
these expenditures through internally generated funds and the
issuance of short-term debt and common equity.
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in the Rights of the Company's Security Holders.
None.
Item 3. Default Upon Senior Securities.
None.
Item 4. Results of Votes of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
a. Exhibit 27 - Financial Data Schedule
b. No Current Report on Form 8-K was filed during
the quarter ended March 31, 1996.
<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)
Dated: May 13, 1996
L. J. STOLL
Vice President-Finance, Treasurer
and Assistant Secretary
(Duly Authorized Officer)
<TABLE> <S> <C>
<ARTICLE> UT
<CIK> 0000086251
<NAME> ST JOSEPH LIGHT & POWER COMPANY
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 160787047
<OTHER-PROPERTY-AND-INVEST> 1736552
<TOTAL-CURRENT-ASSETS> 24290433
<TOTAL-DEFERRED-CHARGES> 28814165
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 215628197
<COMMON> 16717246
<CAPITAL-SURPLUS-PAID-IN> 486234
<RETAINED-EARNINGS> 63025035
<TOTAL-COMMON-STOCKHOLDERS-EQ> 80228515
0
0
<LONG-TERM-DEBT-NET> 73100000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
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<CAPITAL-LEASE-OBLIGATIONS> 2507551
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</TABLE>
