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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) July 31, 2001
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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Item 9. Regulation FD Disclosure
On July 31, 2001, 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 June 30, 2001. The financial information released is
included herein. The following information is summary in nature and should not
be considered complete financial statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
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2001 2000 2001 2000
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Gas operating revenues $ 673,516 $ 424,964 $ 1,119,263 $ 770,330
Net cost of gas sold 409,169 193,694 610,186 316,000
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Operating margin 264,347 231,270 509,077 454,330
Operations and maintenance expenses 124,261 113,667 241,769 225,981
Depreciation, amortization, and general taxes 68,381 61,948 130,941 119,738
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Operating income 71,705 55,655 136,367 108,611
Net interest deductions 39,528 32,885 75,535 65,419
Preferred securities distribution 2,738 2,738 5,475 5,475
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Pretax utility income 29,439 20,032 55,357 37,717
Utility income tax expense 11,216 6,034 18,796 11,243
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Net utility income 18,223 13,998 36,561 26,474
Other income (expense), net 2,741 (583) 4,896 (275)
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Contribution to net income - gas operations 20,964 13,415 41,457 26,199
Contribution to net income - construction services 1,705 2,054 4,054 3,910
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Net income $ 22,669 $ 15,469 $ 45,511 $ 30,109
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Earnings per share - gas operations $ 0.66 $ 0.43 $ 1.30 $ 0.84
Earnings per share - construction services 0.05 0.07 0.13 0.13
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Basic earnings per share $ 0.71 $ 0.50 $ 1.43 $ 0.97
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Diluted earnings per share $ 0.70 $ 0.49 $ 1.42 $ 0.96
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Average outstanding common shares 31,911 31,215 31,717 31,100
Average shares outstanding (assuming dilution) 32,172 31,384 31,967 31,325
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30, JUNE 30,
----------------------- ----------------------- -----------------------
2001 2000 2001 2000 2001 2000
----------- ----------- ----------- ----------- ------------ -----------
Gas operating revenues $ 226,296 $ 157,885 $ 673,516 $ 424,964 $1,119,263 $ 770,330
Net cost of gas sold 129,462 70,190 409,169 193,694 610,186 316,000
----------- ----------- ----------- ----------- ------------ -----------
Operating margin 96,834 87,695 264,347 231,270 509,077 454,330
Operations and maintenance expenses 64,051 56,340 124,261 113,667 241,769 225,981
Depreciation, amortization, and general taxes 34,018 30,859 68,381 61,948 130,941 119,738
----------- ----------- ----------- ----------- ------------ -----------
Operating income (loss) (1,235) 496 71,705 55,655 136,367 108,611
Net interest deductions 19,753 16,498 39,528 32,885 75,535 65,419
Preferred securities distribution 1,369 1,369 2,738 2,738 5,475 5,475
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Pretax utility income (loss) (22,357) (17,371) 29,439 20,032 55,357 37,717
Utility income tax (8,567) (7,335) 11,216 6,034 18,796 11,243
----------- ----------- ----------- ----------- ------------ -----------
Net utility income (loss) (13,790) (10,036) 18,223 13,998 36,561 26,474
Other income (expense), net 1,425 (913) 2,741 (583) 4,896 (275)
----------- ----------- ----------- ----------- ------------ -----------
Contribution to net income (loss) - gas operations (12,365) (10,949) 20,964 13,415 41,457 26,199
Contribution to net income - construction services 1,225 1,220 1,705 2,054 4,054 3,910
----------- ----------- ----------- ----------- ------------ -----------
Net income (loss) $ (11,140) $ (9,729) $ 22,669 $ 15,469 $ 45,511 $ 30,109
=========== =========== =========== =========== ============ ===========
Earnings (loss) per share - gas operations $ (0.39) $ (0.35) $ 0.66 $ 0.43 $ 1.30 $ 0.84
Earnings per share - construction services 0.04 0.04 0.05 0.07 0.13 0.13
----------- ----------- ----------- ----------- ------------ -----------
Basic earnings (loss) per share $ (0.35) $ (0.31) $ 0.71 $ 0.50 $ 1.43 $ 0.97
=========== =========== =========== =========== ============ ===========
Diluted earnings (loss) per share $ (0.35) $ (0.31) $ 0.70 $ 0.49 $ 1.42 $ 0.96
=========== =========== =========== =========== ============ ===========
Average outstanding common shares 32,000 31,289 31,911 31,215 31,717 31,100
Average shares outstanding (assuming dilution) -- -- 32,172 31,384 31,967 31,325
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.
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT JUNE 30, 2001
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,702,195
Construction work in progress 43,434
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Net utility plant 1,745,629
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 33,940
Other 47,853
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Total other property and investments 81,793
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 6,142
Receivables - less reserve of $1,953 for uncollectibles 84,960
Accrued utility revenue 24,973
Deferred purchased gas costs 133,069
Other 29,843
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Total current and accrued assets 278,987
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DEFERRED DEBITS
Unamortized debt expense 18,216
Other deferred debits 27,999
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Total deferred debits 46,215
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TOTAL ASSETS $ 2,152,624
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 32,134 shares outstanding $ 496,147
Retained earnings 55,506
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Total common stockholders' equity 551,653 33.0 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 3.6
Long-term debt including current maturities - NOTE 2 1,060,256 63.4
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Total capitalization 1,671,909 100.0 %
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CURRENT AND ACCRUED LIABILITIES
Accounts payable 73,575
Customer deposits 29,107
Taxes accrued (including income taxes) 8,396
Deferred taxes 43,867
Other 47,351
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Total current and accrued liabilities 202,296
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DEFERRED CREDITS
Deferred investment tax credits 15,102
Deferred income taxes 187,062
Other 76,255
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Total deferred credits 278,419
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TOTAL CAPITALIZATION AND LIABILITIES $ 2,152,624
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See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2001
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 22,669
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 51,442
Change in receivables and payables 7,697
Change in gas cost related balancing items (41,005)
Change in accrued taxes 21,586
Change in deferred taxes (5,239)
Allowance for funds used during construction (1,115)
Other 2,896
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Net cash provided by operating activities 58,931
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (109,985)
Other (1,740)
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Net cash used in investing activities (111,725)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 8,675
Dividends paid (13,071)
Change in notes payable (131,000)
Long-term debt issuances, net 179,686
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Net cash provided by financing activities 44,290
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Change in cash and temporary cash investments (8,504)
Cash at beginning of period 14,646
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Cash at end of period $ 6,142
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SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 33,758
Income taxes, net of refunds $ (3,719)
See Notes to Summary Financial Statements.
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:
Revolving credit facility, variable rate $ 179,000
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
Notes, 8.375%, due 2011 200,000
Medium-term notes, 7.59% series, due 2017 25,000
Medium-term notes, 7.75% series, due 2005 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 50,000
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
6.10% 1999 Series A, due 2038 12,410
Variable-rate bonds, 1999 Taxable Series B, due 2038 8,270
5.95% 1999 Series C, due 2038 14,320
Unamortized discount on long-term debt (8,744)
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TOTAL LONG-TERM DEBT $ 1,060,256
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ESTIMATED CURRENT MATURITIES $ 279,000
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SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
JUNE 30, 2001
FINANCIAL STATISTICS
Market value to book value per share at quarter end 138%
Twelve months to date return on equity -- total company 8.5%
-- gas segment 8.1%
Common stock dividend yield at quarter end 3.5%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
- -------------------------------- --------------- --------------- ---------------
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 28,849 10.02 11.35
Paiute Pipeline Company (1) 75,059 9.69 11.60
(1) Estimated amounts based on rate case settlements.
SYSTEM THROUGHPUT BY CUSTOMER CLASS SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
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(In dekatherms) 2001 2000 2001 2000
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Residential 40,253,470 34,646,987 62,744,237 53,046,169
Small commercial 17,070,378 15,435,918 28,901,749 26,081,514
Large commercial 4,216,649 3,123,192 7,484,295 5,796,083
Industrial / Other 14,251,649 7,393,871 26,829,249 16,004,040
Transportation 65,119,495 65,245,934 148,143,616 127,310,256
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Total system throughput 140,911,641 125,845,902 274,103,146 228,238,062
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HEATING DEGREE DAY COMPARISON
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Actual 1,454 1,207 2,182 1,702
Ten-year average 1,365 1,373 1,984 1,985
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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: July 31, 2001 /s/ ROY R. CENTRELLA
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Roy R. Centrella
Controller