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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) October 28, 1999
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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<PAGE>
Item 5. Other Events
On October 28, 1999, 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 September 30, 1999. 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 - Third Quarter 1999
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: October 28, 1999 /s/ EDWARD A. JANOV
-----------------------------
Edward A. Janov
Vice President/Controller and
Chief Accounting Officer
<TABLE>
EXHIBIT 99
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------------------ ----------------------- ------------------------
1999 1998 1999 1998 1999 1998
----------- ----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gas operating revenues $ 125,190 $ 128,229 $ 570,979 $ 567,609 $ 802,967 $ 767,961
Net cost of gas sold 46,711 51,499 254,436 246,254 338,031 305,762
----------- ----------- ---------- ----------- ----------- -----------
Operating margin 78,479 76,730 316,543 321,355 464,936 462,199
Operations and maintenance expenses 54,621 50,765 163,565 153,796 218,941 206,790
Depreciation, amortization, and general taxes 28,992 28,262 87,066 83,055 115,888 109,306
----------- ----------- ---------- ----------- ----------- -----------
Operating income (loss) (5,134) (2,297) 65,912 84,504 130,107 146,103
Net interest deductions 15,657 15,467 44,720 46,806 60,198 63,365
Preferred securities distribution 1,368 1,368 4,106 4,106 5,475 5,475
----------- ----------- ---------- ----------- ----------- -----------
Pretax utility income (loss) (22,159) (19,132) 17,086 33,592 64,434 77,263
Utility income tax expense (benefit) (8,815) (7,550) 6,374 12,742 27,096 25,757
----------- ----------- ---------- ----------- ----------- -----------
Net utility income (loss) (13,344) (11,582) 10,712 20,850 37,338 51,506
Other income (expense), net (1,960) (212) (3,327) (213) (5,760) (8,062)
----------- ----------- ---------- ----------- ----------- -----------
Contribution to net income (loss) - gas operations (15,304) (11,794) 7,385 20,637 31,578 43,444
Contribution to net income (loss) - construction services 1,116 849 3,097 1,857 3,947 2,385
----------- ----------- ---------- ----------- ----------- -----------
Net income (loss) $ (14,188) $ (10,945) $ 10,482 $ 22,494 $ 35,525 $ 45,829
=========== =========== ========== =========== =========== ===========
Earnings (loss) per share - gas operations $ (0.50) $ (0.41) $ 0.24 $ 0.74 $ 1.03 $ 1.56
Earnings per share - construction services 0.04 0.03 0.10 0.06 0.13 0.09
----------- ----------- ---------- ----------- ----------- -----------
Basic earnings (loss) per share $ (0.46) $ (0.38) $ 0.34 $ 0.80 $ 1.16 $ 1.65
=========== =========== ========== =========== =========== ===========
Diluted earnings (loss) per share $ (0.46) $ (0.38) $ 0.34 $ 0.80 $ 1.15 $ 1.64
=========== =========== ========== =========== =========== ===========
Average outstanding common shares 30,742 29,050 30,621 28,028 30,550 27,846
Average shares outstanding (assuming dilution) -- -- 30,902 28,216 30,824 28,022
The summary statements of income 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). However, it 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.
</TABLE>
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<TABLE>
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<CAPTION>
NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------- --------------------------------
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gas operating revenues $ 570,979 $ 567,609 $ 802,967 $ 767,961
Net cost of gas sold 254,436 246,254 338,031 305,762
- ---------------------------------------------------------------------------------------------------------------------------------
Operating margin 316,543 321,355 464,936 462,199
Operations and maintenance expenses 163,565 153,796 218,941 206,790
Depreciation, amortization, and general taxes 87,066 83,055 115,888 109,306
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Operating income 65,912 84,504 130,107 146,103
Net interest deductions 44,720 46,806 60,198 63,365
Preferred securities distribution 4,106 4,106 5,475 5,475
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Pretax utility income 17,086 33,592 64,434 77,263
Utility income tax expense 6,374 12,742 27,096 25,757
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Net utility income 10,712 20,850 37,338 51,506
Other income (expense), net (3,327) (213) (5,760) (8,062)
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Contribution to net income - gas operations 7,385 20,637 31,578 43,444
Contribution to net income - construction services 3,097 1,857 3,947 2,385
=================================================================================================================================
Net income $ 10,482 $ 22,494 $ 35,525 $ 45,829
=================================================================================================================================
Earnings per share - gas operations $ 0.24 $ 0.74 $ 1.03 $ 1.56
Earnings per share - construction services 0.10 0.06 0.13 0.09
=================================================================================================================================
Basic earnings per share $ 0.34 $ 0.80 $ 1.16 $ 1.65
=================================================================================================================================
Diluted earnings per share $ 0.34 $ 0.80 $ 1.15 $ 1.64
=================================================================================================================================
Average outstanding common shares 30,621 28,028 30,550 27,846
Average shares outstanding (assuming dilution) 30,902 28,216 30,824 28,022
See Notes to Summary Financial Statements.
</TABLE>
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT SEPTEMBER 30, 1999
(In thousands)
(Unaudited)
<S> <C>
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,502,461
Construction work in progress 43,917
---------------
Net utility plant 1,546,378
---------------
OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 29,718
Other 44,374
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Total other property and investments 74,092
---------------
CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 5,388
Receivables - less reserve of $1,541 for uncollectibles 31,226
Accrued utility revenue 24,000
Other 35,932
---------------
Total current and accrued assets 96,546
---------------
DEFERRED DEBITS
Unamortized debt expense 17,672
Other deferred debits 25,073
---------------
Total deferred debits 42,745
---------------
TOTAL ASSETS $ 1,759,761
===============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 30,799 shares outstanding $ 466,625
Retained earnings 11,093
---------------
Total common stockholders' equity 477,718 35.5 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.5
Long-term debt - NOTE 2 808,781 60.0
--------------- ------------
Total capitalization 1,346,499 100.0 %
--------------- ============
CURRENT AND ACCRUED LIABILITIES
Notes payable 30,720
Accounts payable 34,372
Customer deposits 26,164
Taxes accrued (including income taxes) 36,075
Deferred purchased gas costs 3,233
Other 55,348
---------------
Total current and accrued liabilities 185,912
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DEFERRED CREDITS
Deferred investment tax credits 16,620
Deferred income taxes 160,788
Other 49,942
---------------
Total deferred credits 227,350
---------------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,759,761
===============
See Notes to Summary Financial Statements.
</TABLE>
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SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1999
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 10,482
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 65,480
Change in receivables and payables 46,410
Change in gas cost related balancing items 60,933
Change in accrued taxes 2,374
Change in deferred taxes (18,730)
Allowance for funds used during construction (1,503)
Other (1,981)
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Net cash provided by operating activities 163,465
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (150,336)
Other 3,772
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Net cash used in investing activities (146,564)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 9,745
Dividends paid (18,830)
Change in notes payable (21,280)
Long-term debt issuances, net 5,500
-------------
Net cash used in financing activities (24,865)
-------------
Change in cash and temporary cash investments (7,964)
Cash at beginning of period 13,352
-------------
Cash at end of period $ 5,388
=============
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 44,458
Income taxes, net of refunds $ 27,610
See Notes to Summary Financial Statements.
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<TABLE>
<CAPTION>
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 - LONG-TERM DEBT:
<S> <C>
Revolving credit facility, variable rate Debentures and notes: $ 200,000
Debentures, 9.75% series F, due 2002 100,000
Debentures, 7.50% series, due 2006 75,000
Debentures, 8% series, due 2026 75,000
Medium-term notes, 7.59% series, due 2017 25,000
Medium-term notes, 7.78% series, due 2022 25,000
Medium-term notes, 7.92% series, due 2027 25,000
Medium-term notes, 6.89% series, due 2007 17,500
Medium-term notes, 6.76% series, due 2027 7,500
Medium-term notes, 6.27% series, due 2008 25,000
Industrial development revenue bonds:
Variable-rate bonds, Series A, due 2028 - net of funds held in trust 35,356
7.30% 1992 Series A, due 2027 30,000
7.50% 1992 Series B, due 2032 100,000
6.50% 1993 Series A, due 2033 75,000
Unamortized discount on long-term debt (6,575)
-------------
TOTAL LONG-TERM DEBT $ 808,781
=============
ESTIMATED CURRENT MATURITIES $ --
=============
</TABLE>
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<TABLE>
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
SEPTEMBER 30, 1999
FINANCIAL STATISTICS
Market value to book value per share at quarter end 174%
Twelve months to date return on equity -- total company 7.3%
-- gas segment 6.8%
Common stock dividend yield at quarter end 3.0%
<CAPTION>
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
- -------------------------------- ----------------- -------------- ----------------
<S> <C> <C> <C> <C> <C>
Arizona (1) $ 541,104 9.38 % 11.25 %
Southern Nevada (1) 237,165 9.50 11.55
Northern Nevada (1) 63,986 9.67 11.55
Southern California 69,486 9.94 11.35
Northern California 22,255 10.02 11.35
Paiute Pipeline Company (1) 72,054 9.69 11.60
(1) Estimated amounts based on rate case settlements.
SYSTEM THROUGHPUT BY CUSTOMER CLASS NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------------------- ----------------------------------
(In dekatherms) 1999 1998 1999 1998
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Residential 42,517,543 44,893,515 56,318,193 58,021,097
Small commercial 19,988,237 20,332,720 26,649,200 26,703,795
Large commercial 4,995,617 6,116,845 6,811,334 7,819,232
Industrial / Other 11,637,753 13,206,848 15,136,892 15,842,753
Transportation 88,181,939 73,183,218 115,135,917 95,983,545
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Total system throughput 167,321,089 157,733,146 220,051,536 204,370,422
=================================================================================================================================
HEATING DEGREE DAY COMPARISON
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Actual 1,472 1,740 2,044 2,352
Ten-year average 1,450 1,444 2,040 2,033
=================================================================================================================================
</TABLE>
