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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) APRIL 30, 1997
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 April 30, 1997, 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 quarter ended March 31, 1997. 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 1997
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: April 30, 1997 /s/ EDWARD A. JANOV
-----------------------------
Edward A. Janov
Vice President/Controller and
Chief Accounting Officer
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EXHIBIT INDEX
Exhibit
Number Description
------- --------------------------------------------------
99 Financial Analyst Report -- First Quarter 1997
<PAGE> EXHIBIT 99
<TABLE>
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,
---------------------- ----------------------
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Gas operating revenues $ 211,564 $ 188,352 $ 569,573 $ 548,333
Net cost of gas purchased 84,599 78,469 193,710 207,019
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Operating margin 126,965 109,883 375,863 341,314
Operations and maintenance expenses 48,448 47,211 199,601 189,313
Depreciation, amortization, and general taxes 25,612 24,133 97,078 91,879
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Operating income 52,905 38,539 79,184 60,122
Net interest deductions 14,261 12,953 54,311 52,986
Preferred securities distribution 1,369 1,369 5,475 2,281
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Pretax utility income 37,275 24,217 19,398 4,855
Utility income tax expense 14,440 9,409 7,028 1,140
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Net utility income 22,835 14,808 12,370 3,715
Other income (expense), net (299) 51 (774) (651)
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Contribution to net income (loss) - gas operations 22,536 14,859 11,596 3,064
Contribution to net income (loss) - construction services (968) -- 1,687 --
Discontinued operations - PriMerit Bank - NOTE 2 -- -- -- (17,732)
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Net income (loss) 21,568 14,859 13,283 (14,668)
Preferred dividends -- -- -- 212
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Net income (loss) applicable to common stock $ 21,568 $ 14,859 $ 13,283 $ (14,880)
====================================================================================================================
Earnings per share - gas operations $ 0.84 $ 0.60 $ 0.44 $ 0.12
Earnings (loss) per share - construction services (0.04) -- 0.06 --
Earnings (loss) per share - discontinued operations -- -- -- (0.74)
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Earnings (loss) per share of common stock $ 0.80 $ 0.60 $ 0.50 $ (0.62)
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Average outstanding common shares 26,816 24,604 26,437 24,025
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</TABLE>
See Notes to Summary Financial Statements.
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SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT MARCH 31, 1997
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $1,249,412
Construction work in progress 47,086
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Net utility plant 1,296,498
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 26,427
Other 42,708
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Total other property and investments 69,135
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 6,045
Receivables - less reserve of $2,003 for uncollectibles 52,762
Accrued utility revenue 28,270
Deferred purchased gas costs 60,116
Other 25,133
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Total current and accrued assets 172,326
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DEFERRED DEBITS
Unamortized debt expense 19,416
Other deferred debits 26,326
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Total deferred debits 45,742
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TOTAL ASSETS $1,583,701
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CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 26,916 shares outstanding $ 380,645
Retained earnings 18,160
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Total common stockholders' equity 398,805 33.9%
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 5.1
Long-term debt - NOTE 3 718,875 61.0
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Total capitalization 1,177,680 100.0%
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CURRENT AND ACCRUED LIABILITIES
Notes payable 86,000
Accounts payable 40,301
Customer deposits 21,542
Taxes accrued (including income taxes) 12,284
Other 53,907
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Total current and accrued liabilities 214,034
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DEFERRED CREDITS
Deferred investment tax credits 18,789
Deferred income taxes 131,515
Other 41,683
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Total deferred credits 191,987
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TOTAL CAPITALIZATION, LIABILITIES
AND DEFERRED CREDITS $1,583,701
==========
See Notes to Summary Financial Statements.
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SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 21,568
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 17,958
Change in receivables and payables 6,695
Change in gas cost related balancing items (71,576)
Change in accrued taxes 2,232
Change in deferred taxes 27,157
Allowance for funds used during construction (528)
Other 7,228
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Net cash provided by operating activities 10,734
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (36,706)
Other (3,142)
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Net cash used in investing activities (39,848)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 3,150
Dividends paid (5,491)
Change in notes payable (35,000)
Long-term debt issuances, net 67,059
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Net cash provided by financing activities 29,718
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Change in cash and temporary cash investments 604
Cash at beginning of period 5,441
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Cash at end of period $ 6,045
==========
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 15,107
Income taxes paid, net of refunds $ --
See Notes to Summary Financial Statements.
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SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION:
The summary financial statements have been prepared by Southwest Gas
Corporation (the Company) using the equity method of accounting for its
construction services subsidiary. This presentation is not in accordance
with generally accepted accounting principles (GAAP), and certain information
and footnote disclosures normally included in financial statements prepared
in accordance with GAAP have been omitted. The summary financial statement
presentation in this report produces the same net income as the consolidated
financial statements and, in management's opinion, is a fair representation
of the operations and contributions to net income of the Company's operating
segments.
NOTE 2 - DISCONTINUED OPERATIONS:
In January 1996, 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. Discontinued operations
also includes the loss on the disposition. The sale of PriMerit to Norwest
was completed in July 1996.
NOTE 3 - LONG-TERM DEBT:
Commercial paper facility $ 200,000
Debentures:
Debentures, 9.75% series F, due 2002 100,000
Debentures, 7 1/2% series, due 2006 75,000
Debentures, 8% series, due 2026 75,000
Medium-term notes:
Medium-term notes, 7.59% series, due 2017 25,000
Medium-term notes, 7.78% series, due 2022 25,000
Industrial development revenue bonds - net of funds held in trust 225,957
Unamortized discount on long-term debt (7,082)
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TOTAL LONG-TERM DEBT $ 718,875
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ESTIMATED CURRENT MATURITIES $ --
=========
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SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
MARCH 31, 1997
FINANCIAL STATISTICS
Market value to book value per share at quarter end 117%
Twelve months to date return on equity -- total company 3.5%
-- gas segment 3.3%
Common stock dividend yield at quarter end 4.7%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
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Central Arizona $ 267,348 9.13% 10.75%
Southern Arizona 157,620 9.12 11.00
Southern Nevada 237,165 9.50 11.55
Northern Nevada 63,986 9.67 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
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<CAPTION>
SYSTEM THROUGHPUT BY CUSTOMER CLASS THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
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(In dekatherms) 1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Residential 24,174,330 20,594,746 48,957,887 43,067,639
Small commercial 9,412,867 8,825,811 24,093,705 23,252,025
Large commercial 2,037,777 2,037,073 7,741,028 7,999,046
Industrial / Other 1,954,350 1,600,971 5,561,016 6,668,173
Transportation 19,570,001 20,174,390 96,196,677 97,713,636
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Total system throughput 57,149,325 53,232,991 182,550,313 178,700,519
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HEATING DEGREE DAY COMPARISON
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Actual 1,153 1,008 2,039 1,774
Ten-year average 1,145 1,163 2,017 2,019
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