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 September 30, 1998 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: November 25, 1998
EUA ENERGY INVESTMENT CORPORATION
INVESTMENT IN SEPARATION TECHNOLOGIES, INC.
THIRD QUARTER 1998
(1) As indicated in a previous filing, the Company has signed an agreement
with Baltimore Gas & Electric to install up to two separators at the
Brandon Shores, Maryland operating facility. Construction of these units
commenced during the month of October 1998. It is anticipated to be
completed by April 1998.
The Company is continuing the necessary testing for the Florida State
Department of Transportation to gain acceptance of the processed ash in
highway projects. At present, the Company anticipates a late 1999 start
up at the Jacksonville facility.
(2) Separation Technologies' Financial Statements through September 30, 1998.
SEPARATION TECHNOLOGIES, INC.
CONDENSED BALANCE SHEET
September 30, 1998
(Unaudited)
(In Thousands of Dollars)
ASSETS
Fixed Assets:
Property and equipment, net $2,856
Less: Accumulated depreciation 1,705
Total fixed Assets 1,151
Current Assets:
Cash and cash equivalents 1,171
Accounts Receivable, net 556
Inventories 47
Prepaid Expenses and Other 0
Total Current Assets 1,774
Other Assets:
Restricted Cash 897
Investment in ProAsh 280
Acquired Intangibles 175
Patents and acquired Technology 476
Total Other Assets 1,828
TOTAL ASSETS $4,753
LIABILITIES
Stockholders' Equity
Series A Convertible Preferred $16
Common Stock 37
Deferred Compensation (45)
Additional Paid-in-Capital 13,945
Deficit accumulated during development (12,903)
Total Stockholders' Equity 1,050
Long Term Liabilities:
Notes Payable to EUA Energy 2,340
Total Long Term Liabilities 2,340
Total Capitalization 3,390
Current Liabilities:
Accounts Payable 139
Notes Payable-current portion 535
Accrued Expenses and Deferred Revenue 689
Total Current Liabilities 1,363
TOTAL LIABILITIES AND EQUITY $4,753
SEPARATION TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
For the Three Months and Year to Date Period Ended September 30, 1998
(Unaudited)
(In Thousands of Dollars)
QUARTER ENDED YTD
Revenues $ 899 $3,270
Cost of Revenues 236 1,073
Gross Profit 663 2,197
Operating Expenses:
Engineering, Research and Development 289 857
Sales and Marketing Expenses 63 188
General and Administrative Expenses 270 1,160
Total Operating Expenses 622 2,205
Operating Income (Loss) 41 (8)
Interest Charges 172 315
Other Income/(Expense) 146 141
Pre-tax Net Income (Loss) $ 15 ($182)
SEPARATION TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
For the Year to Date Period Ended September 30, 1998
(Unaudited)
(In Thousands of Dollars)
Operating Activities:
Pre-tax Net Income (Loss) ($182)
Depreciation & Amortization 560
Other 51
Change in Current Assets and Liabilities:
Accounts Receivable 213
Accounts Payable (217)
Other Current Assets and Liabilities 56
Net Operating Activities 481
Investing Activities:
Capital Expenditures (757)
Investment in ProAsh (141)
Net Investing Activities (898)
Financing Activities:
Increase in Notes and Leases 538
Purchase of Common Stock options 11
Net Financing Activities 549
Net (decrease) in cash and cash equivalents 132
Cash and cash equivalents at December 31, 1997 1,042
Cash and cash equivalents at September 30, 1998 1,174
<TABLE> <S> <C>
<ARTICLE> OPUR1
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 0
<OTHER-PROPERTY-AND-INVEST> 1151
<TOTAL-CURRENT-ASSETS> 1774
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 1828
<TOTAL-ASSETS> 4753
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 1050
<RETAINED-EARNINGS> 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1050
0
0
<LONG-TERM-DEBT-NET> 0
<SHORT-TERM-NOTES> 535
<LONG-TERM-NOTES-PAYABLE> 2340
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 828
<TOT-CAPITALIZATION-AND-LIAB> 4753
<GROSS-OPERATING-REVENUE> 3270
<INCOME-TAX-EXPENSE> 0
<OTHER-OPERATING-EXPENSES> 3278
<TOTAL-OPERATING-EXPENSES> 3278
<OPERATING-INCOME-LOSS> (8)
<OTHER-INCOME-NET> 141
<INCOME-BEFORE-INTEREST-EXPEN> 133
<TOTAL-INTEREST-EXPENSE> 315
<NET-INCOME> (182)
0
<EARNINGS-AVAILABLE-FOR-COMM> (182)
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 481
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
