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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 27, 2000
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 April 27, 2000, 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 and twelve months ended March 31, 2000. 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 2000
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 27, 2000 /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 TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
------------------------- -------------------------
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Gas operating revenues $267,079 $279,110 $779,124 $804,344
Net cost of gas sold 123,504 135,886 317,649 344,748
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Operating margin 143,575 143,224 461,475 459,596
Operations and maintenance expenses 57,327 53,566 225,019 211,888
Depreciation, amortization, and general taxes 31,089 29,123 117,830 113,726
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Operating income 55,159 60,535 118,626 133,982
Net interest deductions 16,387 14,632 63,352 60,891
Preferred securities distribution 1,369 1,369 5,475 5,475
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Pretax utility income 37,403 44,534 49,799 67,616
Utility income tax expense 13,369 17,385 16,382 28,595
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Net utility income 24,034 27,149 33,417 39,021
Other income (expense), net 330 (84) (645) (2,783)
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Contribution to net income - gas operations 24,364 27,065 32,772 36,238
Contribution to net income - construction services 834 1,201 3,470 3,612
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Net income $ 25,198 $ 28,266 $ 36,242 $ 39,850
==========================================================================================================
Earnings per share - gas operations $ 0.78 $ 0.89 $ 1.06 $ 1.24
Earnings per share - construction services 0.03 0.04 0.11 0.12
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Basic earnings per share $ 0.81 $ 0.93 $ 1.17 $ 1.36
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Diluted earnings per share $ 0.80 $ 0.92 $ 1.16 $ 1.35
==========================================================================================================
Average outstanding common shares 31,140 30,497 30,934 29,363
Average shares outstanding (assuming dilution) 31,302 30,753 31,186 29,591
See Notes to Summary Financial Statements.
</TABLE>
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT MARCH 31, 2000
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
<S> <C> <C>
Gas plant, net of accumulated depreciation $ 1,568,685
Construction work in progress 30,876
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Net utility plant 1,599,561
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 30,542
Other 45,500
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Total other property and investments 76,042
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 9,780
Receivables - less reserve of $2,186 for uncollectibles 66,561
Accrued utility revenue 33,373
Deferred purchased gas costs 4,135
Other 34,932
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Total current and accrued assets 148,781
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DEFERRED DEBITS
Unamortized debt expense 19,182
Other deferred debits 23,905
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Total deferred debits 43,087
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TOTAL ASSETS $ 1,867,471
============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 31,230 shares outstanding $ 477,185
Retained earnings 52,312
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Total common stockholders' equity 529,497 36.9 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.2
Long-term debt - NOTE 2 846,624 58.9
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Total capitalization 1,436,121 100.0 %
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CURRENT AND ACCRUED LIABILITIES
Notes payable 5,000
Accounts payable 50,410
Customer deposits 28,260
Taxes accrued (including income taxes) 63,089
Other 53,422
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Total current and accrued liabilities 200,181
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DEFERRED CREDITS
Deferred investment tax credits 16,186
Deferred income taxes 160,859
Other 54,124
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Total deferred credits 231,169
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TOTAL CAPITALIZATION AND LIABILITIES $ 1,867,471
============
See Notes to Summary Financial Statements.
</TABLE>
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2000
(In thousands)
(Unaudited)
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 25,198
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 23,416
Change in receivables and payables 17,004
Change in gas cost related balancing items 4,916
Change in accrued taxes 22,120
Change in deferred taxes (1,383)
Allowance for funds used during construction (362)
Other 3,848
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Net cash provided by operating activities 94,757
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (40,786)
Other (380)
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Net cash used in investing activities (41,166)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 5,308
Dividends paid (6,384)
Change in notes payable (56,000)
Long-term debt issuances, net 1,000
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Net cash used in financing activities (56,076)
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Change in cash and temporary cash investments (2,485)
Cash at beginning of period 12,265
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Cash at end of period $ 9,780
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SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 16,221
Income taxes, net of refunds $ 51
See Notes to Summary Financial Statements.
</TABLE>
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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 $ 200,000
Debentures and notes:
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:
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
Variable-rate bonds, 1993 Series A, due 2028 - net of funds held in trust 38,117
6.10% 1999 Series A, due 2038 12,410
Variable-rate bonds, 1999 Taxable Series B, due 2038 22,590
Unamortized discount on long-term debt (6,493)
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TOTAL LONG-TERM DEBT $ 846,624
============
ESTIMATED CURRENT MATURITIES $ -
============
</TABLE>
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<TABLE>
<CAPTION>
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
MARCH 31, 2000
FINANCIAL STATISTICS
Market value to book value per share at quarter end 112%
Twelve months to date return on equity -- total company 7.2%
-- gas segment 6.9%
Common stock dividend yield at quarter end 4.3%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
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<S> <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 23,741 10.02 11.35
Paiute Pipeline Company (1) 72,054 9.69 11.60
(1) Estimated amounts based on rate case settlements.
</TABLE>
<TABLE>
<CAPTION>
SYSTEM THROUGHPUT BY CUSTOMER CLASS THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------------------- ---------------------------------
(In dekatherms) 2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Residential 25,304,315 25,609,991 55,145,073 56,355,757
Small commercial 9,866,297 9,869,700 26,599,623 26,558,059
Large commercial 1,492,823 1,866,347 5,883,039 7,741,455
Industrial / Other 2,696,920 2,458,566 15,668,918 16,787,587
Transportation 29,685,555 28,100,075 120,271,426 106,430,195
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Total system throughput 69,045,910 67,904,679 223,568,079 213,873,053
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HEATING DEGREE DAY COMPARISON
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Actual 1,007 1,051 1,882 2,073
Ten-year average 1,103 1,133 1,998 2,014
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</TABLE>
