SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
In the matter of )
)
)
EUA ENERGY INVESTMENT CORPORATION ) Certificate of
Lowell, Massachusetts ) Notification
) Pursuant to
) Rule 24
(70-8837) )
)
(Public Utility Holding Company Act of 1935) )
Enclosed herewith for filing by EUA Energy Investment Corporation, a
wholly-owned subsidiary of Eastern Utilities Associates in
accordance with the Order of the Securities and Exchange Commission
entered in the above matter on June 26, 1996 (Release No. 35-26529)
and pursuant to Rule 24, are the balance sheet, the income statement,
and statement of cash flows for the period ended December 31, 1997 of
Separation Technologies, Inc., reflecting the investments to date therein by
EUA Energy Investment Corporation.
EUA Energy Investment Corporation
By: /s/ Clifford J. Hebert, Jr.
Clifford J. Hebert, Jr.
Treasurer
Dated: February 27, 1998
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
FOURTH QUARTER 1997
(1) STI announced in April 1997 a joint venture formed with Roanoke Cement
Company to install equipment to separate unburned carbon from fly-ash at
Carolina Power & Light's Roxboro, N.C. generating station. The joint
venture will market the processed ash to concrete producers in the
Virginia's and the Carolina's. The equipment has been delivered and
installed and commercial operation began in September 1997.
In August of 1997, STI was awarded the contract for the benefication of
the ash from the Jacksonville Electric Authority's Saint John's River
Power Park (SJRPP). This latest installation at SJRPP marks the fourth
commercial fly-ash unit installed to date by STI.
(2) Separation Technologies' Financial Statements through December 31, 1997.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
December 31, 1997
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $2,584
Less: Accumulated depreciation 1,297
Total fixed Assets 1,287
Current Assets:
Cash and cash equivalents 1,042
Accounts Receivable, net 804
Inventories 6
Prepaid Expenses and Other 17
Total Current Assets 1,869
Other Assets:
Deposits 9
Restricted Cash 425
Investment in ProAsh 140
Acquired Intangibles 250
Patents and acquired Technology 453
Total Other Assets 1,277
TOTAL ASSETS $4,433
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Deferred Compensation (122)
Additional Paid-in-Capital 13,935
Deficit accumulated during development (12,650)
Total Stockholders' Equity 1,216
Long Term Liabilities:
Notes Payable to EUA Energy and Other 2,425
Capital Leases 5
Total Long Term Liabilities 2,430
Total Capitalization 3,646
Current Liabilities:
Accounts Payable 355
Notes and Leases Payable 86
Accrued Expenses and Deferred Revenue 346
Total Current Liabilities 787
TOTAL LIABILITIES AND EQUITY $4,433
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Year Ended December 31, 1997
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $1,066 $3,632
Cost of Revenues 746 2,355
Gross Profit 320 1,277
Operating Expenses:
Engineering, Research and Development 236 992
Sales and Marketing Expenses (22) 88
General and Administrative Expenses 263 1,495
Total Operating Expenses 477 2,575
Operating Income (Loss) (157) (1,298)
Interest Charges 106 262
Other Income/(Expense) (182) (34)
Pre-tax Net Income (Loss) ($445) ($1,594)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended December 31, 1997
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($1,594)
Depreciation & Amortization 699
Loss on Disposal of Equipment 492
Other 172
Change in Current Assets and Liabilities:
Accounts Receivable (382)
Accounts Payable (225)
Other Current Assets and Liabilities 99
Net Operating Activities (739)
Investing Activities:
Capital Expenditures (289)
Increase in Restricted Cash (425)
Investment in ProAsh (200)
Net Investing Activities (914)
Financing Activities:
Increase in Notes and Leases 1,403
Purchase of Common Stock options 56
Net Financing Activities 1,459
Net increase in cash and cash equivalents (194)
Cash and cash equivalents at December 31, 1996 1,236
Cash and cash equivalents at December 31, 1997 1,042
<TABLE> <S> <C>
<ARTICLE> OPUR1
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 0
<OTHER-PROPERTY-AND-INVEST> 1287
<TOTAL-CURRENT-ASSETS> 1869
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 1277
<TOTAL-ASSETS> 4433
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 1216
<RETAINED-EARNINGS> 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1216
0
0
<LONG-TERM-DEBT-NET> 0
<SHORT-TERM-NOTES> 86
<LONG-TERM-NOTES-PAYABLE> 2425
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 5
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 701
<TOT-CAPITALIZATION-AND-LIAB> 4433
<GROSS-OPERATING-REVENUE> 3632
<INCOME-TAX-EXPENSE> 0
<OTHER-OPERATING-EXPENSES> 4930
<TOTAL-OPERATING-EXPENSES> 4930
<OPERATING-INCOME-LOSS> (1298)
<OTHER-INCOME-NET> (34)
<INCOME-BEFORE-INTEREST-EXPEN> (1332)
<TOTAL-INTEREST-EXPENSE> 262
<NET-INCOME> (1594)
0
<EARNINGS-AVAILABLE-FOR-COMM> (1594)
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> (739)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
