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) May 4, 1999
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
Item 5. Other Events
On May 4, 1999, 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 March 31, 1999. 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 1999
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: May 4, 1999 /s/ EDWARD A. JANOV
-----------------------------
Edward A. Janov
Vice President/Controller and
Chief Accounting Officer
EXHIBIT 99
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
----------------------------- -----------------------------
1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
Gas operating revenues $ 279,110 $ 274,363 $ 804,344 $ 677,464
Net cost of gas sold 135,886 120,987 344,748 245,726
- ----------------------------------------------------------------------------------------------------------------------
Operating margin 143,224 153,376 459,596 431,738
Operations and maintenance expenses 53,566 50,850 211,888 203,561
Depreciation, amortization, and general taxes 29,123 27,274 113,726 105,583
- ----------------------------------------------------------------------------------------------------------------------
Operating income 60,535 75,252 133,982 122,594
Net interest deductions 14,632 16,025 60,891 63,515
Preferred securities distribution 1,369 1,369 5,475 5,475
- ----------------------------------------------------------------------------------------------------------------------
Pretax utility income 44,534 57,858 67,616 53,604
Utility income tax expense 17,385 22,254 28,595 16,736
- ----------------------------------------------------------------------------------------------------------------------
Net utility income 27,149 35,604 39,021 36,868
Other income (expense), net (84) 53 (2,783) (7,922)
- ----------------------------------------------------------------------------------------------------------------------
Contribution to net income - gas operations 27,065 35,657 36,238 28,946
Contribution to net income - construction services 1,201 296 3,612 1,908
- ----------------------------------------------------------------------------------------------------------------------
Net income $ 28,266 $ 35,953 $ 39,850 $ 30,854
======================================================================================================================
Earnings per share - gas operations $ 0.89 $ 1.30 $ 1.24 $ 1.06
Earnings per share - construction services 0.04 0.01 0.12 0.07
- ----------------------------------------------------------------------------------------------------------------------
Basic earnings per share $ 0.93 $ 1.31 $ 1.36 $ 1.13
======================================================================================================================
Diluted earnings per share $ 0.92 $ 1.30 $ 1.35 $ 1.13
======================================================================================================================
Average outstanding common shares 30,497 27,447 29,363 27,225
Average shares outstanding (assuming dilution) 30,753 27,605 29,591 27,358
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT MARCH 31, 1999
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,437,953
Construction work in progress 44,527
-------------
Net utility plant 1,482,480
-------------
OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 28,197
Other 44,780
-------------
Total other property and investments 72,977
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 10,006
Receivables - less reserve of $2,108 for uncollectibles 64,972
Accrued utility revenue 33,000
Deferred purchased gas costs 23,068
Other 28,120
-------------
Total current and accrued assets 159,166
-------------
DEFERRED DEBITS
Unamortized debt expense 18,131
Other deferred debits 26,266
-------------
Total deferred debits 44,397
-------------
TOTAL ASSETS $ 1,759,020
=============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 30,555 shares outstanding $ 459,726
Retained earnings 41,505
-------------
Total common stockholders' equity 501,231 37.6 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.5
Long-term debt - NOTE 2 771,354 57.9
------------- -----------------
Total capitalization 1,332,585 100.0 %
------------- =================
CURRENT AND ACCRUED LIABILITIES
Notes payable 720
Accounts payable 52,012
Customer deposits 24,981
Taxes accrued (including income taxes) 66,415
Other 56,481
-------------
Total current and accrued liabilities 200,609
-------------
DEFERRED CREDITS
Deferred investment tax credits 17,054
Deferred income taxes 157,765
Other 51,007
-------------
Total deferred credits 225,826
-------------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,759,020
=============
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1999
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 28,266
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 21,911
Change in receivables and payables 21,028
Change in gas cost related balancing items 34,561
Change in accrued taxes 32,714
Change in deferred taxes (10,640)
Allowance for funds used during construction (557)
Other (2,224)
-----------
Net cash provided by operating activities 125,059
-----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (43,748)
Other 2,029
-----------
Net cash used in investing activities (41,719)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 2,846
Dividends paid (6,252)
Change in notes payable (51,280)
Long-term debt issuances, net 1,000
Retirement of long-term debt (33,000)
-----------
Net cash used in financing activities (86,686)
-----------
Change in cash and temporary cash investments (3,346)
Cash at beginning of period 13,352
-----------
Cash at end of period $ 10,006
===========
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 14,139
Income taxes, net of refunds $ 4,167
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 $ 167,000
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:
Variable-rate bonds, Series A, due 2028 - net of funds held in trust 31,147
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
Unamortized discount on long-term debt (6,793)
-------------
TOTAL LONG-TERM DEBT $ 771,354
=============
ESTIMATED CURRENT MATURITIES $ --
=============
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
MARCH 31, 1999
FINANCIAL STATISTICS
Market value to book value per share at quarter end 168%
Twelve months to date return on equity -- total company 8.8%
-- gas segment 8.4%
Common stock dividend yield at quarter end 3.0%
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 21,917 10.02 11.35
Paiute Pipeline Company (1) 72,054 9.69 11.60
(1) Estimated amounts based on rate case settlements.
SYSTEM THROUGHPUT BY CUSTOMER CLASS THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
------------------------------ ------------------------------
(In dekatherms) 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
Residential 25,609,991 27,948,401 56,355,757 54,328,952
Small commercial 9,869,700 10,305,324 26,558,059 25,552,999
Large commercial 1,866,347 2,057,455 7,741,455 7,673,862
Industrial / Other 2,458,566 2,376,968 16,787,587 9,026,219
Transportation 28,100,075 21,807,076 106,430,195 105,322,803
- ------------------------------------------------------------------------------- ------------------------------ ---------------
Total system throughput 67,904,679 64,495,224 213,873,053 201,904,835
==============================================================================================================================
HEATING DEGREE DAY COMPARISON
- ------------------------------------------------------------------------------------------------------------------------------
Actual 1,055 1,288 2,086 2,166
Ten-year average 1,137 1,151 2,025 2,025
==============================================================================================================================
