<PAGE> 1
_______________________________________________________________________________
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) February 14, 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
_______________________________________________________________________________<PAGE>
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ITEM 5. OTHER EVENTS
On February 14, 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
year ended December 31, 1995. The financial information released is included
herein. This information is summary in nature, and should not be considered
complete financial statements.
ITEM 7. EXHIBITS
99.1 Summary Statements of Income
99.2 Financial Analyst Report - Fourth Quarter 1995
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: February 14, 1996 /s/ Edward A. Janov
--------------------------
Edward A. Janov
Controller and Chief Accounting Officer
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EXHIBIT TABLE
99.1 Summary Statements of Income
99.2 Financial Analyst Report - Fourth Quarter 1995
<PAGE>
<TABLE>
EXHIBIT 99.1
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
-------------------- --------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
GAS OPERATIONS SEGMENT:
Operating margin - weather normalized $ 122,542 $ 121,384 $ 364,046 $ 349,346
Weather related impacts (19,000) 0 (28,000) 0
--------- --------- --------- ---------
Operating margin realized 103,542 121,384 336,046 349,346
Operations and maintenance expenses 47,682 46,523 187,969 178,185
Depreciation, amortization, and general taxes 22,189 21,140 89,665 82,569
--------- --------- --------- ---------
Operating income 33,671 53,721 58,412 88,592
Net interest deductions 13,697 13,278 53,354 49,465
Preferred securities distribution 913 0 913 0
--------- --------- --------- ---------
Pre-tax utility income 19,061 40,443 4,145 39,127
Utility income tax expense 7,309 15,677 858 14,825
--------- --------- --------- ---------
Net utility income 11,752 24,766 3,287 24,302
Other income (expense), net (243) (330) (633) (778)
--------- --------- --------- ---------
Contribution to net income (loss) - gas operations segment 11,509 24,436 2,654 23,524
--------- --------- --------- ---------
DISCONTINUED OPERATIONS:
Net income - PriMerit Bank 2,823 1,331 8,618 7,673
Acquisition carrying costs, net of tax (1,494) (1,230) (5,961) (4,896)
--------- --------- --------- ---------
Net income from discontinued segment 1,329 101 2,657 2,777
SAIF assessment, net of tax (7,170) 0 (7,170) 0
Loss on disposal of discontinued operations, net of tax (13,023) 0 (13,023) 0
--------- --------- --------- ---------
Contribution to net income (loss) from discontinued operations (18,864) 101 (17,536) 2,777
--------- --------- --------- ---------
Net income (loss) (7,355) 24,537 (14,882) 26,301
Preferred & preference dividends 22 95 307 510
--------- --------- --------- ---------
Net income (loss) applicable to common stock $ (7,377) $ 24,442 $ (15,189) $ 25,791
========= ========= ========= =========
Earnings (loss) per share from gas segment $ 0.47 $ 1.15 $ 0.10 $ 1.09
Earnings (loss) per share from discontinued operations (0.24) 0.00 (0.20) 0.13
Earnings (loss) per share from disposal (0.53) 0.00 (0.56) 0.00
--------- --------- --------- ---------
Earnings (loss) per share of common stock $ (0.30) $ 1.15 $ (0.66) $ 1.22
========= ========= ========= =========
Average outstanding common shares 24,350 21,190 23,167 21,078
========= ========= ========= =========
</TABLE>
In January 1996, the Company reached an agreement to sell PriMerit to Norwest
Corporation. The discontinued operations segment 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 segment also
includes the estimated loss on the disposition.
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<TABLE>
EXHIBIT 99.2
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------
1995 1994 1993
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GAS OPERATIONS SEGMENT:
Operating revenues $ 563,502 $ 599,268 $ 538,149
Net cost of gas purchased 227,456 249,922 212,290
- ----------------------------------------------------------------------------------------------------------
Operating margin 336,046 349,346 325,859
Operations and maintenance expenses 187,969 178,185 169,744
Depreciation, amortization, and general taxes 89,665 82,569 79,136
- ----------------------------------------------------------------------------------------------------------
Operating income 58,412 88,592 76,979
Net interest deductions 53,354 49,465 41,988
Preferred securities distribution 913 -- --
- ----------------------------------------------------------------------------------------------------------
Pre-tax utility income 4,145 39,127 34,991
Utility income tax expense 858 14,825 12,292
- ----------------------------------------------------------------------------------------------------------
Net utility income 3,287 24,302 22,699
Other income (expense), net (633) (778) (8,948)
- ----------------------------------------------------------------------------------------------------------
Contribution to net income - gas operations segment 2,654 23,524 13,751
- ----------------------------------------------------------------------------------------------------------
DISCONTINUED OPERATIONS - NOTE 1:
Net income - PriMerit Bank 8,618 7,673 6,596
Acquisition carrying costs, net of tax - NOTE 5 (5,961) (4,896) (4,941)
- ----------------------------------------------------------------------------------------------------------
Net income from discontinued segment 2,657 2,777 1,655
SAIF assessment, net of tax (7,170) -- --
Loss on disposal of discontinued operations, net of tax (13,023) -- --
- ----------------------------------------------------------------------------------------------------------
Contribution to net income (loss) from discontinued operations (17,536) 2,777 1,655
- ----------------------------------------------------------------------------------------------------------
Net income (loss) (14,882) 26,301 15,406
Preferred & preference dividends 307 510 741
- ----------------------------------------------------------------------------------------------------------
Net income (loss) applicable to common stock $ (15,189) $ 25,791 $ 14,665
==========================================================================================================
Earnings (loss) per share from gas segment $ 0.10 $ 1.09 $ 0.63
==========================================================================================================
Earnings (loss) per share from discontinued operations $ (0.20) $ 0.13 $ 0.08
==========================================================================================================
Earnings (loss) per share from disposal $ (0.56) $ -- $ --
==========================================================================================================
Earnings (loss) per share of common stock $ (0.66) $ 1.22 $ 0.71
==========================================================================================================
Average outstanding common shares 23,167 21,078 20,729
==========================================================================================================
See Notes to Summary Financial Statements.
/TABLE
<PAGE>
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
BALANCE SHEET
AT DECEMBER 31, 1995
(In thousands)
(Unaudited)
<S> <C> <C>
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,111,072
Construction work in progress 26,678
------------
Net utility plant 1,137,750
------------
OTHER PROPERTY AND INVESTMENTS
PriMerit Bank - NOTE 2 175,493
Other 31,093
------------
Total other property and investments 206,586
------------
CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 10,887
Receivables - less reserve of $1,227 for uncollectibles 37,592
Accrued utility revenue 43,900
Other 48,454
------------
Total current and accrued assets 140,833
------------
DEFERRED DEBITS
Unamortized debt expense 13,538
Other deferred debits 33,586
------------
Total deferred debits 47,124
------------
TOTAL ASSETS $ 1,532,293
============
CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 24,467 shares outstanding $ 338,728
Retained earnings 17,322
------------
Total common stockholders' equity 356,050 31.1%
Preferred securities - NOTE 3 60,000 5.2
Long-term debt - NOTE 4 727,945 63.7
------------ ------------
Total capitalization 1,143,995 100.0%
------------ ============
CURRENT AND ACCRUED LIABILITIES
Notes payable 37,000
Accounts payable 41,823
Customer deposits 21,406
Taxes accrued (including income taxes) 29,101
Deferred purchased gas costs 32,776
Other 48,026
------------
Total current and accrued liabilities 210,132
------------
DEFERRED CREDITS
Deferred investment tax credits 19,874
Deferred income taxes 119,311
Other 38,981
------------
Total deferred credits 178,166
------------
TOTAL CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS $ 1,532,293
============
See Notes to Summary Financial Statements.
/TABLE
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
STATEMENT OF CASH FLOWS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(In thousands)
(Unaudited)
<S> <C>
CASH FLOWS FROM OPERATIONS:
Net income (loss) $ (14,882)
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation and amortization 62,492
Change in gas cost related balancing items 52,790
Change in accrued taxes (13,818)
Change in receivables and payables 13,490
Loss on disposition 13,023
Change in deferred taxes (15,223)
Undistributed earnings from subsidiaries (1,279)
Allowance for funds used during construction (1,229)
Other 2,034
------------
Net cash provided from operating activities 97,398
------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from preferred securities issuance 57,713
Change in notes payable (55,000)
Net proceeds from stock issuance 44,844
Long-term debt issuance, net 47,122
Dividends paid (19,575)
Retirement of preferred stock (4,000)
Other (48)
------------
Net cash provided from financing activities 71,056
------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (166,059)
Other 2,623
------------
Net cash used in investing activities (163,436)
------------
Change in cash and temporary cash investments 5,018
Cash at beginning of period 5,869
------------
Cash at end of period $ 10,887
============
SUPPLEMENTAL INFORMATION:
Interest paid, net of amount capitalized $ 52,741
Income taxes, net of refunds $ 22,313
See Notes to Summary Financial Statements.
/TABLE
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
(In thousands, except par values)
(Unaudited)
NOTE 1 - DISCONTINUED OPERATIONS:
In January 1996, the Company reached an agreement to sell PriMerit to Norwest
Corporation. The discontinued operations segment 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 segment also
includes the estimated loss on the disposition.
NOTE 2 - INVESTMENT IN PRIMERIT BANK:
The capital structure supports both the investment in PriMerit and the
investment in the gas segment. Financing costs allocable to PriMerit are
determined based on the average investment in PriMerit throughout the year.
NOTE 3 - PREFERRED SECURITIES:
<S> <C>
Preferred securities of SWG Capital I, $25 per security, 9.125%, 2.4 million units outstanding $ 60,000
============
NOTE 4 - LONG-TERM DEBT:
Commercial paper facility $ 200,000
Debentures:
Debentures, 9% series A, due 2011 26,890
Debentures, 9% series B, due 2011 31,213
Debentures, 8.75% series C, due 2011 18,353
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 218,386
Unamortized discount on long-term debt (9,966)
------------
TOTAL LONG-TERM DEBT $ 727,945
============
ESTIMATED CURRENT MATURITIES $ 120,000
============
</TABLE>
NOTE 5 - ACQUISITION CARRYING COSTS, NET OF TAX:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------
1995 1994 1993
------------ ------------ ------------
<S> <C> <C> <C>
Interest expense $ (9,636) $ (7,874) $ (7,874)
Other intercompany expenses (297) (286) (361)
Income taxes 3,972 3,264 3,294
------------ ------------ ------------
ACQUISITION CARRYING COSTS, NET OF TAX $ (5,961) $ (4,896) $ (4,941)
============ ============ ============
/TABLE
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
DECEMBER 31, 1995
<S> <C>
FINANCIAL STATISTICS
Market value to book value per share at year end 121%
Twelve months to date return on equity -- total company (4.1)%
-- gas segment 0.8%
Common stock dividend yield at year end 4.7%
</TABLE>
<TABLE>
<CAPTION>
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
- ----------------- -------------- -------------- --------------
<S> <C>
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 8,357 10.02 11.35
Paiute Pipeline Company 61,057 10.09 12.50
</TABLE>
<TABLE>
<CAPTION>
SYSTEM THROUGHPUT BY CUSTOMER CLASS YEAR ENDED DECEMBER 31,
-----------------------------------------------
(In dekatherms) 1995 1994 1993
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Residential 42,273,436 45,966,773 43,921,257
Small commercial 22,949,195 23,572,285 22,327,742
Large commercial 8,344,066 10,306,232 11,263,387
Industrial / Other 7,021,718 8,341,530 7,543,313
Transportation 101,601,123 91,479,064 72,502,319
- -------------------------------------------------------------------------------------------------------
Total system throughput 182,189,538 179,665,884 157,558,018
=======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------
HEATING DEGREE DAY COMPARISON 1995 1994 1993
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Actual 2,084 2,427 2,470
Ten year average 2,326 2,387 2,401
=======================================================================================================
</TABLE>
