LAS VEGAS, Nov. 6 /PRNewswire/ -- Southwest Gas Corporation (NYSE: SWX)
recorded a 1996 third quarter net loss of $0.55 per share, compared to the
$0.54 per share loss reported for the same period in 1995. Consolidated net
loss applicable to common stock was $14.6 million in the current period versus
$12.9 million previously. Average outstanding common shares increased to 26.5
million from 24.1 million in the third quarter of 1995.
The gas operations segment experienced a net loss of $16.3 million during
the third quarter of 1996, compared to a deficit of $13.4 million in the third
quarter of 1995. Due to the seasonal nature of the Company's business, net
losses during the third quarter are normal and not generally indicative of
earnings for a complete twelve-month period. According to Michael O. Maffie,
President and Chief Executive Officer, the variance between periods was
primarily the result of higher operating and finance costs incurred to keep
pace with customer growth.
Effective July 1, 1996, the Company received a $13.8 million general rate
increase in its Nevada rate jurisdictions. A number of rate design and tariff
restructuring changes were allowed resulting in rates in Nevada that are more
cost-based. During the fourth quarter, the Company anticipates making a
general rate filing in its Arizona rate jurisdictions.
During the third quarter of 1996, the Company restructured a substantial
portion of its outstanding debt. Net proceeds from the sale of PriMerit Bank,
a wholly owned subsidiary, were used to retire approximately $160 million of
long- and short-term debt. In addition, the Company issued $150 million in
new debentures to refinance existing debentures, achieving a 126 basis point
reduction in the related average interest rate. The financial impacts of this
restructuring will be realized beginning with fourth quarter results.
For the twelve months ended September 30, 1996, consolidated net loss
applicable to common stock was $19.1 million, or $0.75 per share, versus
consolidated net income applicable to common stock of $16.6 million, or $0.74
per share, during the previous twelve-month period. The current period
included an $18.9 million, or $0.74 per share, net loss attributed to
discontinued operations, which occurred as a result of the disposition of
PriMerit Bank.
The gas operations segment recorded a net loss of $2.3 million for the
twelve months ended September 30, 1996 as compared to net income of $15.6
million during the prior period. Unseasonably warm weather experienced during
much of the fourth quarter of 1995 and the first quarter of 1996 caused
operating margin to be approximately $32 million less than expected and $26
million lower than the previous twelve-month period. Operating margin
resulting from continued customer growth partially mitigated the negative
impact of warm weather. Since September 30, 1995, the Company has added
66,000 new customers who have contributed $13 million of additional operating
margin. On a net basis, operating margin declined $12.9 million, or four
percent, between periods. Current-period earnings were also impacted by
increased operating expenses and financing costs associated with the Company's
growing customer base.
Southwest Gas Corporation provides natural gas services to approximately
1,064,000 customers in Arizona, Nevada, and California. Its service territory
is centered in the fastest-growing region of the country.
SOUTHWEST GAS CONSOLIDATED EARNINGS DIGEST
QUARTER ENDED SEPTEMBER 30, 1996 1995
Consolidated Operating
Revenues $125,255,000 $91,433,000
Net Loss - Continuing Operations $14,638,000 $13,353,000
Net Loss Applicable to Common Stock $14,638,000 $12,926,000
Average Number of Common
Shares Outstanding 26,477,000 24,062,000
Loss Per Share from Continuing Operations $0.55 $0.56
Loss Per Share of Common Stock $0.55 $0.54
NINE MONTHS ENDED SEPTEMBER 30,
Consolidated Operating Revenues $437,218,000 $417,143,000
Net Loss - Continuing Operations $11,722,000 $8,855,000
Net Loss Applicable to Common Stock $11,722,000 $7,812,000
Average Number of Common
Shares Outstanding 25,636,000 22,768,000
Loss Per Share from Continuing Operations $0.46 $0.40
Loss Per Share of Common Stock $0.46 $0.34
TWELVE MONTHS ENDED SEPTEMBER 30,
Consolidated Operating Revenues $583,577,000 $608,604,000
Net Income (Loss) - Continuing
Operations $(213,000) $15,581,000
Net Income (Loss) Applicable to
Common Stock $(19,099,000) $16,630,000
Average Number of Common
Shares Outstanding 25,382,000 22,370,000
Earnings (Loss) Per Share from
Continuing Operations $(0.01) $0.68
Earnings (Loss) Per Share of Common Stock $(0.75) $0.74
SOURCE Southwest Gas Corporation
CONTACT: Media Contact: Dante Pistone 702-876-7253, or Shareholder Contact: Laura Hobbs, 702-876-7237, both of Southwest Gas