<PAGE>
_______________________________________________________________________________
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 11, 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
_______________________________________________________________________________<PAGE>
<PAGE>
Item 5. Other Events
On February 11, 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 year ended December 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
99.1 Summary Statements of Income
99.2 Financial Analyst Report -- Fourth 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: February 11, 1997 /s/ EDWARD A. JANOV
------------------------------------------
Edward A. Janov
Vice President/Controller and
Chief Accounting Officer<PAGE>
<PAGE>
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- ------- ---------------------------------------------------
99.1 Summary Statements of Income
99.2 Financial Analyst Report -- Fourth Quarter 1996<PAGE>
EXHIBIT 99.1
<PAGE>
<TABLE>
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ------------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Operating margin - weather normalized $ 126,366 $ 122,542 $ 381,781 $ 364,046
Weather related impacts (5,000) (19,000) (23,000) (28,000)
---------- ---------- ---------- ----------
Operating margin realized 121,366 103,542 358,781 336,046
Operations and maintenance expenses 53,807 47,682 198,364 187,969
Depreciation, amortization, and general taxes 23,368 22,189 95,599 89,665
---------- ---------- ---------- ----------
Operating income 44,191 33,671 64,818 58,412
Net interest deductions 13,675 13,697 53,003 53,354
Preferred securities distribution 1,369 913 5,475 913
---------- ---------- ---------- ----------
Pretax utility income 29,147 19,061 6,340 4,145
Utility income tax expense 11,318 7,309 1,997 858
---------- ---------- ---------- ----------
Net utility income 17,829 11,752 4,343 3,287
Other income (expense), net (124) (243) (424) (633)
---------- ---------- ---------- ----------
Contribution to net income - gas operations 17,705 11,509 3,919 2,654
Contribution to net income - construction services 591 -- 2,655 --
Discontinued operations - PriMerit Bank -- (18,864) -- (17,536)
---------- ---------- ---------- ----------
Net income (loss) 18,296 (7,355) 6,574 (14,882)
Preferred dividends -- 22 -- 307
---------- ---------- ---------- ----------
Net income (loss) applicable to common stock $ 18,296 $ (7,377) $ 6,574 $ (15,189)
========== ========== ========== ==========
Earnings per share - gas operations $ 0.67 $ 0.47 $ 0.15 $ 0.10
Earnings per share - construction services 0.02 -- 0.10 --
Earnings (loss) per share - discontinued operations -- (0.77) -- (0.76)
---------- ---------- ---------- ----------
Earnings (loss) per share of common stock $ 0.69 $ (0.30) $ 0.25 $ (0.66)
========== ========== ========== ==========
Average outstanding common shares 26,640 24,350 25,888 23,167
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
EXHIBIT 99.2
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------
1996 1995 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gas operating revenues $ 546,361 $ 563,502 $ 599,268
Net cost of gas purchased 187,580 227,456 249,922
- ---------------------------------------------------------------------------------------------
Operating margin 358,781 336,046 349,346
Operations and maintenance expenses 198,364 187,969 178,185
Depreciation, amortization, and general taxes 95,599 89,665 82,569
- ---------------------------------------------------------------------------------------------
Operating income 64,818 58,412 88,592
Net interest deductions 53,003 53,354 49,465
Preferred securities distribution 5,475 913 --
- ---------------------------------------------------------------------------------------------
Pretax utility income 6,340 4,145 39,127
Utility income tax expense 1,997 858 14,825
- ---------------------------------------------------------------------------------------------
Net utility income 4,343 3,287 24,302
Other income (expense), net (424) (633) (778)
- ---------------------------------------------------------------------------------------------
Contribution to net income - gas operations 3,919 2,654 23,524
Contribution to net income - construction services 2,655 -- --
Discontinued operations - PriMerit Bank - NOTE 2 -- (17,536) 2,777
- ---------------------------------------------------------------------------------------------
Net income (loss) 6,574 (14,882) 26,301
Preferred & preference dividends -- 307 510
- ---------------------------------------------------------------------------------------------
Net income (loss) applicable to common stock $ 6,574 $ (15,189) $ 25,791
=============================================================================================
Earnings per share - gas operations $ 0.15 $ 0.10 $ 1.09
Earnings per share - construction services 0.10 -- --
Earnings (loss) per share - discontinued operations -- (0.76) 0.13
- ---------------------------------------------------------------------------------------------
Earnings (loss) per share of common stock $ 0.25 $ (0.66) $ 1.22
=============================================================================================
Average outstanding common shares 25,888 23,167 21,078
=============================================================================================
</TABLE>
See Notes to Summary Financial Statements.<PAGE>
<PAGE>
<TABLE>
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT DECEMBER 31, 1996
(In thousands)
(Unaudited)
<S> <C> <C>
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,232,287
Construction work in progress 46,170
-----------
Net utility plant 1,278,457
-----------
OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 27,395
Other 38,781
-----------
Total other property and investments 66,176
-----------
CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 5,441
Receivables - less reserve of $1,510 for uncollectibles 47,396
Accrued utility revenue 46,500
Other 33,683
-----------
Total current and accrued assets 133,020
-----------
DEFERRED DEBITS
Unamortized debt expense 19,556
Other deferred debits 26,253
-----------
Total deferred debits 45,809
-----------
TOTAL ASSETS $ 1,523,462
===========
CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 26,733 shares outstanding $ 377,495
Retained earnings 2,121
-----------
Total common stockholders' equity 379,616 34.8%
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 5.5
Long-term debt - NOTE 3 651,948 59.7
----------- -----
Total capitalization 1,091,564 100.0%
----------- =====
CURRENT AND ACCRUED LIABILITIES
Notes payable 121,000
Accounts payable 45,743
Customer deposits 21,133
Taxes accrued (including income taxes) 10,052
Deferred purchased gas costs 9,432
Other 34,730
-----------
Total current and accrued liabilities 242,090
-----------
DEFERRED CREDITS
Deferred investment tax credits 19,006
Deferred income taxes 129,935
Other 40,867
-----------
Total deferred credits 189,808
-----------
TOTAL CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS $ 1,523,462
===========
</TABLE>
See Notes to Summary Financial Statements.<PAGE>
<PAGE>
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1996
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 6,574
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 67,443
Change in receivables and payables (10,055)
Change in gas cost related balancing items (22,382)
Change in accrued taxes (19,049)
Change in deferred taxes 19,882
Allowance for funds used during construction (1,828)
Other 11,605
----------
Net cash provided by operating activities 52,190
----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (210,276)
Investment in construction services subsidiary (24,158)
Proceeds from sale of bank 191,662
Other (27,408)
----------
Net cash used in investing activities (70,180)
----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 14,767
Stock issuance - construction services acquisition 24,000
Dividends paid (21,311)
Change in notes payable 84,000
Long-term debt issuance, net 155,486
Long-term debt retirements (244,398)
----------
Net cash provided by financing activities 12,544
----------
Change in cash and temporary cash investments (5,446)
Cash at beginning of period 10,887
----------
Cash at end of period $ 5,441
==========
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 59,065
Income taxes paid, net of refunds $ 17,475
See Notes to Summary Financial Statements.<PAGE>
<PAGE>
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 estimated loss on the disposition. The sale
of PriMerit to Norwest was completed in July 1996.
NOTE 3 - LONG-TERM DEBT:
Commercial paper facility $ 184,000
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
Industrial development revenue bonds - net of funds held in trust 224,739
Unamortized discount on long-term debt (6,791)
---------
TOTAL LONG-TERM DEBT $ 651,948
=========
ESTIMATED CURRENT MATURITIES $ --
=========<PAGE>
<PAGE>
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
DECEMBER 31, 1996
FINANCIAL STATISTICS
Market value to book value per share at year end 136%
Twelve months to date return on equity - total company 1.8%
- gas segment 1.2%
Common stock dividend yield at year end 4.3%
GAS OPERATIONS SEGMENT
<TABLE>
<CAPTION> Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
- ----------------------- -------------- -------------- -------------
<S> <C> <C> <C>
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
</TABLE>
<TABLE>
SYSTEM THROUGHPUT BY CUSTOMER CLASS
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------
(In dekatherms) 1996 1995 1994
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Residential 45,050,591 42,273,436 45,966,773
Small commercial 23,834,362 22,949,195 23,572,285
Large commercial 7,502,980 8,344,066 10,306,232
Industrial / Other 5,444,985 7,021,718 8,341,530
Transportation 96,820,733 101,601,123 91,479,064
- -----------------------------------------------------------------------------
Total system throughput 178,653,651 182,189,538 179,665,884
=============================================================================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------
HEATING DEGREE DAY COMPARISON 1996 1995 1994
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Actual 1,896 1,781 2,091
Ten year average 2,033 2,021 2,068
=============================================================================
/TABLE
<PAGE>
