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_______________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 2, 1996
SOUTHWEST GAS CORPORATION
(Exact name of registrant as specified in its charter)
California 1-7850 88-0085720
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
5241 Spring Mountain Road
Post Office Box 98510
Las Vegas, Nevada 89193-8510
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702) 876-7237
_______________________________________________________________________________
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ITEM 5. OTHER EVENTS
On May 2, 1996, Southwest Gas Corporation (the Company) released summary
financial information to the general public, including the investment community,
regarding the Company's operating performance and financial position for the
period ended March 31, 1996. The financial information released is included
herein. This information is summary in nature, and should not be considered
complete financial statements.
ITEM 7. EXHIBITS
99 Financial Analyst Report - First Quarter 1996
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 hereunto duly authorized.
SOUTHWEST GAS CORPORATION
Date: May 2, 1996 /s/ Edward A. Janov
---------------------------------------
Edward A. Janov
Controller and Chief Accounting Officer
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EXHIBIT TABLE
99 Financial Analyst Report - First Quarter 1996
3
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EXHIBIT 99
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
----------------------- -----------------------
1996 1995 1996 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gas operating revenues $ 188,352 $ 203,521 $ 548,333 $ 595,492
Net cost of gas purchased 78,469 98,906 207,019 251,833
- --------------------------------------------------------------------------------------------------------------
Operating margin 109,883 104,615 341,314 343,659
Operations and maintenance expenses 47,211 45,867 189,313 181,631
Depreciation, amortization, and general taxes 24,133 21,919 91,879 84,091
- --------------------------------------------------------------------------------------------------------------
Operating income 38,539 36,829 60,122 77,937
Net interest deductions 12,953 13,322 52,986 51,136
Preferred securities distribution 1,369 -- 2,281 --
- --------------------------------------------------------------------------------------------------------------
Pre-tax utility income 24,217 23,507 4,855 26,801
Utility income tax expense 9,409 9,127 1,140 9,936
- --------------------------------------------------------------------------------------------------------------
Net utility income 14,808 14,380 3,715 16,865
Other income (expense), net 51 69 (651) (625)
- --------------------------------------------------------------------------------------------------------------
Contribution to net income (loss) - gas operations 14,859 14,449 3,064 16,240
- --------------------------------------------------------------------------------------------------------------
Discontinued operations - PriMerit Bank - NOTE 1 -- 196 (17,732) 1,997
- --------------------------------------------------------------------------------------------------------------
Net income (loss) 14,859 14,645 (14,668) 18,237
Preferred & preference dividends -- 95 212 467
- --------------------------------------------------------------------------------------------------------------
Net income (loss) applicable to common stock $ 14,859 $ 14,550 $ (14,880) $ 17,770
==============================================================================================================
Earnings per share from gas segment $ 0.60 $ 0.67 $ 0.12 $ 0.75
Earnings (loss) per share from discontinued operations -- 0.01 (0.74) 0.09
- --------------------------------------------------------------------------------------------------------------
Earnings (loss) per share of common stock $ 0.60 $ 0.68 $ (0.62) $ 0.84
==============================================================================================================
Average outstanding common shares 24,604 21,396 24,025 21,170
==============================================================================================================
See Notes to Summary Financial Statements.
/TABLE
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<CAPTION>
SOUTHWEST GAS CORPORATION
BALANCE SHEET
AT MARCH 31, 1996
(In thousands)
(Unaudited)
<S> <C> <C>
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,133,528
Construction work in progress 25,888
------------
Net utility plant 1,159,416
------------
OTHER PROPERTY AND INVESTMENTS
Investment in discontinued operations - PriMerit Bank - NOTE 1 175,118
Other 32,652
------------
Total other property and investments 207,770
------------
CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 5,726
Receivables - less reserve of $1,742 for uncollectibles 41,678
Accrued utility revenue 28,071
Other 45,289
------------
Total current and accrued assets 120,764
------------
DEFERRED DEBITS
Unamortized debt expense 13,330
Other deferred debits 31,563
------------
Total deferred debits 44,893
------------
TOTAL ASSETS $ 1,532,843
============
CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 24,725 shares outstanding $ 343,075
Retained earnings 27,084
------------
Total common stockholders' equity 370,159 31.8%
Preferred securities - NOTE 2 60,000 5.2
Long-term debt - NOTE 3 732,666 63.0
------------ ------------
Total capitalization 1,162,825 100.0%
------------ ------------
CURRENT AND ACCRUED LIABILITIES
Accounts payable 49,260
Customer deposits 21,363
Taxes accrued (including income taxes) 45,835
Deferred purchased gas costs 34,900
Other 38,269
------------
Total current and accrued liabilities 189,627
------------
DEFERRED CREDITS
Deferred investment tax credits 19,657
Deferred income taxes 120,716
Other 40,018
------------
Total deferred credits 180,391
------------
TOTAL CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS $ 1,532,843
============
See Notes to Summary Financial Statements
/TABLE
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<CAPTION>
SOUTHWEST GAS CORPORATION
STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996
(In thousands)
(Unaudited)
<S> <C>
CASH FLOWS FROM OPERATIONS:
Net income $ 14,859
Adjustments to reconcile net income to net
cash provided from operating activities:
Change in receivables and payables 16,896
Change in accrued taxes 16,735
Depreciation and amortization 16,539
Change in gas cost related balancing items 2,801
Change in deferred taxes 1,255
Allowance for funds used during construction (390)
Other (3,571)
---------
Net cash provided from operating activities 65,124
---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in notes payable (37,000)
Dividends paid (5,044)
Long-term debt issuance, net 4,859
Net proceeds from stock issuance 4,354
Other 1,362
---------
Net cash used in financing activities (31,469)
---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (38,671)
Other (145)
---------
Net cash used in investing activities (38,816)
---------
Change in cash and temporary cash investments (5,161)
Cash at beginning of period 10,887
---------
Cash at end of period $ 5,726
=========
SUPPLEMENTAL INFORMATION:
Interest paid, net of amount capitalized $ 16,289
Income taxes, net of refunds --
See Notes to Summary Financial Statements.
/TABLE
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<CAPTION>
SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
(In thousands, except par values)
(Unaudited)
NOTE 1 - DISCONTINUED OPERATIONS:
In January 1996, Southwest Gas Corporation (the Company) reached an agreement to sell PriMerit Bank (PriMerit)
to Norwest Corporation. Discontinued operations includes the net income of PriMerit and its subsidiaries on a
stand-alone basis as adjusted, reduced by allocated carrying costs associated with the Company's investment in
PriMerit (principally interest) net of taxes. The discontinued operations also includes the estimated loss on
the disposition.
NOTE 2 - PREFERRED SECURITIES:
<S> <C>
Preferred securities of SWG Capital I, $25 per security, 9.125%, 2.4 million units outstanding $ 60,000
============
NOTE 3 - LONG-TERM DEBT:
Commercial paper facility $ 200,000
Debentures:
Debentures, 9% series A, due 2011 26,838
Debentures, 9% series B, due 2011 31,168
Debentures, 8.75% series C, due 2011 18,323
Debentures, 9.375% series D, due 2017 120,000
Debentures, 10% series E, due 2013 23,069
Debentures, 9.75% series F, due 2002 100,000
Industrial development revenue bonds - net of funds held in trust 223,102
Unamortized discount on long-term debt (9,834)
------------
TOTAL LONG-TERM DEBT $ 732,666
============
ESTIMATED CURRENT MATURITIES $ 120,000
============
/TABLE
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<CAPTION>
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
MARCH 31, 1996
<S> <C> <C> <C> <C>
FINANCIAL STATISTICS
Market value to book value per share at quarter end 115%
Twelve months to date return on equity -- total company (4.0)%
-- gas segment 0.9%
Common stock dividend yield at quarter end 4.8%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
-------------- -------------- --------------
Central Arizona $ 267,348 9.13% 10.75%
Southern Arizona 157,620 9.12 11.00
Southern Nevada 184,673 8.89 11.55
Northern Nevada 47,695 9.16 11.55
Southern California 69,486 9.94 11.35
Northern California 9,521 10.02 11.35
Paiute Pipeline Company 61,057 10.09 12.50
SYSTEM THROUGHPUT BY CUSTOMER CLASS THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------------------- --------------------------------
(In dekatherms) 1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------------------
Residential 20,594,746 19,800,543 43,067,639 44,066,066
Small commercial 8,825,811 8,522,980 23,252,025 23,079,427
Large commercial 2,037,073 2,382,095 7,999,046 9,419,127
Industrial / Other 1,600,971 1,954,513 6,668,173 8,562,073
Transportation 20,174,390 24,061,877 97,713,636 97,018,813
- -------------------------------------------------------------------------------------------------------------------------
Total system throughput 53,232,991 56,722,008 178,700,519 182,145,506
=========================================================================================================================
HEATING DEGREE DAY COMPARISON
- -------------------------------------------------------------------------------------------------------------------------
Actual 1,009 1,113 1,780 2,289
Ten year average 1,159 1,277 2,034 2,346
=========================================================================================================================
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