UNITED STATES
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California (State or other jurisdiction of incorporation or organization) 5241 Spring Mountain Road Post Office Box 98510 Las Vegas, Nevada (Address of principal executive offices) |
1-7850 (Commission File Number) |
88-0085720 (I.R.S. Employer Identification No.) 89193-8510 (Zip Code) |
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Registrant's telephone number, including area code: (702) 876-7237 |
Item 9. Regulation FD DisclosureOn November 1, 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 September 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)
NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------------- -----------------------------
2001 2000 2001 2000
---------------------------------------------------------------------------------------------------------------------
Gas operating revenues $ 862,482 $ 575,142 $ 1,158,051 $ 795,318
Net cost of gas sold 508,282 263,836 639,157 339,431
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Operating margin 354,200 311,306 518,894 455,887
Operations and maintenance expenses 187,727 170,506 248,396 228,199
Depreciation, amortization, and general taxes 102,591 93,059 134,040 121,857
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Operating income 63,882 47,741 136,458 105,831
Net interest deductions 59,253 50,050 78,095 66,927
Preferred securities distribution 4,106 4,106 5,475 5,475
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Pretax utility income (loss) 523 (6,415) 52,888 33,429
Utility income taxes 88 (4,300) 18,002 9,724
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Net utility income (loss) 435 (2,115) 34,886 23,705
Other income (expense), net 2,287 3,912 (53) 6,180
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Contribution to net income - gas operations 2,722 1,797 34,833 29,885
Contribution to net income - construction services 3,459 3,992 3,870 4,732
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Net income $ 6,181 $ 5,789 $ 38,703 $ 34,617
====================================================================================================================
Earnings per share - gas operations $ 0.08 $ 0.06 $ 1.09 $ 0.96
Earnings per share - construction services 0.11 0.13 0.12 0.15
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Basic earnings per share $ 0.19 $ 0.19 $ 1.21 $ 1.11
====================================================================================================================
Diluted earnings per share $ 0.19 $ 0.18 $ 1.20 $ 1.10
====================================================================================================================
Average outstanding common shares 32,019 31,285 31,920 31,272
Average shares outstanding (assuming dilution) 32,290 31,465 32,191 31,471
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------ ------------------------
2001 2000 2001 2000 2001 2000
----------- ----------- ----------- ----------- ----------- -----------
Gas operating revenues $ 188,966 $ 150,178 $ 862,482 $ 575,142 $ 1,158,051 $ 795,318
Net cost of gas sold 99,113 70,142 508,282 263,836 639,157 339,431
----------- ----------- ----------- ----------- ----------- -----------
Operating margin 89,853 80,036 354,200 311,306 518,894 455,887
Operations and maintenance expenses 63,466 56,839 187,727 170,506 248,396 228,199
Depreciation, amortization, and general taxes 34,210 31,111 102,591 93,059 134,040 121,857
----------- ----------- ----------- ----------- ----------- -----------
Operating income (loss) (7,823) (7,914) 63,882 47,741 136,458 105,831
Net interest deductions 19,725 17,165 59,253 50,050 78,095 66,927
Preferred securities distribution 1,368 1,368 4,106 4,106 5,475 5,475
----------- ----------- ----------- ----------- ----------- -----------
Pretax utility income (loss) (28,916) (26,447) 523 (6,415) 52,888 33,429
Utility income taxes (11,128) (10,334) 88 (4,300) 18,002 9,724
----------- ----------- ----------- ----------- ----------- -----------
Net utility income (loss) (17,788) (16,113) 435 (2,115) 34,886 23,705
Other income (expense), net (454) 4,495 2,287 3,912 (53) 6,180
----------- ----------- ----------- ----------- ----------- -----------
Contribution to net income (loss) - gas operations (18,242) (11,618) 2,722 1,797 34,833 29,885
Contribution to net income - construction services 1,754 1,938 3,459 3,992 3,870 4,732
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) $ (16,488) $ (9,680) $ 6,181 $ 5,789 $ 38,703 $ 34,617
=========== =========== =========== =========== =========== ===========
Earnings (loss) per share - gas operations $ (0.56) $ (0.37) $ 0.08 $ 0.06 $ 1.09 $ 0.96
Earnings per share - construction services 0.05 0.06 0.11 0.13 0.12 0.15
----------- ----------- ----------- ----------- ----------- -----------
Basic earnings (loss) per share $ (0.51) $ (0.31) $ 0.19 $ 0.19 $ 1.21 $ 1.11
=========== =========== =========== =========== =========== ===========
Diluted earnings (loss) per share $ (0.51) $ (0.31) $ 0.19 $ 0.18 $ 1.20 $ 1.10
=========== =========== =========== =========== =========== ===========
Average outstanding common shares 32,231 31,424 32,019 31,285 31,920 31,272
Average shares outstanding (assuming dilution) -- -- 32,290 31,465 32,191 31,471
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 SEPTEMBER 30, 2001
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $1,734,859
Construction work in progress 50,375
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Net utility plant 1,785,234
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 35,270
Other 46,858
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Total other property and investments 82,128
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CURRENT AND ACCRUED ASSETS
Cash and cash equivalents 13,338
Receivables - less reserve of $1,527 for uncollectibles 71,556
Accrued utility revenue 25,973
Deferred purchased gas costs 112,332
Other 39,508
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Total current and accrued assets 262,707
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DEFERRED DEBITS
Unamortized debt expense 18,164
Other deferred debits 29,443
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Total deferred debits 47,607
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TOTAL ASSETS $2,177,676
==========
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 32,363 shares outstanding $ 501,391
Retained earnings 32,365
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Total common stockholders' equity 533,756 31.9 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 3.6
Long-term debt including current maturities - NOTE 2 1,081,438 64.5
---------- ------
Total capitalization 1,675,194 100.0 %
---------- ======
CURRENT AND ACCRUED LIABILITIES
Notes payable 36,000
Accounts payable 62,449
Customer deposits 29,204
Taxes accrued (including income taxes) 13,436
Deferred taxes 34,860
Other 45,309
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Total current and accrued liabilities 221,258
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DEFERRED CREDITS
Deferred investment tax credits 14,885
Deferred income taxes 188,329
Other 78,010
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Total deferred credits 281,224
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TOTAL CAPITALIZATION AND LIABILITIES $2,177,676
==========
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2001
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 6,181
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 77,582
Change in receivables and payables 6,114
Change in gas cost related balancing items (20,268)
Change in accrued taxes 26,626
Change in deferred taxes (13,196)
Allowance for funds used during construction (1,731)
Other (5,580)
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Net cash provided by operating activities 75,728
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (176,173)
Other (540)
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Net cash used in investing activities (176,713)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 13,919
Dividends paid (19,679)
Change in notes payable (95,000)
Long-term debt issuances, net 200,437
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Net cash provided by financing activities 99,677
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Change in cash and cash equivalents (1,308)
Cash at beginning of period 14,646
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Cash at end of period $ 13,338
=========
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 55,959
Income taxes, net of refunds $ (5,508)
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 $ 200,000
Debentures:
9.75% Series F, due 2002 100,000
7.5% due 2006 75,000
8% due 2026 75,000
Notes, 8.375%, due 2011 200,000
Medium-term notes:
7.59% due 2017 25,000
7.75% due 2005 25,000
7.78% due 2022 25,000
7.92% due 2027 25,000
6.89% due 2007 17,500
6.76% due 2027 7,500
6.27% due 2008 25,000
Industrial development revenue bonds:
Variable-rate bonds, Series A, due 2028 50,000
7.3% 1992 Series A, due 2027 30,000
7.5% 1992 Series B, due 2032 100,000
6.5% 1993 Series A, due 2033 75,000
6.1% 1999 Series A, due 2038 12,410
5.55% 1999 Series D, due 2038 8,270
5.95% 1999 Series C, due 2038 14,320
Unamortized discount on long-term debt (8,562)
-----------
TOTAL LONG-TERM DEBT $ 1,081,438
===========
ESTIMATED CURRENT MATURITIES $ 300,000
===========
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
SEPTEMBER 30, 2001
FINANCIAL STATISTICS
Market value to book value per share at quarter end 129%
Twelve months to date return on equity -- total company 7.2%
-- gas segment 6.8%
Common stock dividend yield at quarter end 3.9%
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 NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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(In dekatherms) 2001 2000 2001 2000
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Residential 45,738,064 40,183,742 62,692,076 53,116,949
Small commercial 21,236,405 19,555,221 28,948,473 26,170,012
Large commercial 7,205,514 4,885,694 8,710,658 6,146,638
Industrial / Other 22,498,756 14,026,128 28,444,099 17,818,938
Transportation 98,234,119 108,392,712 138,111,462 138,896,720
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Total system throughput 194,912,858 187,043,497 266,906,768 242,149,257
============================================================================================================================
HEATING DEGREE DAY COMPARISON
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Actual 1,471 1,231 2,173 1,685
Ten-year average 1,395 1,404 1,981 1,983
============================================================================================================================
SIGNATURESPursuant 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. |
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Date: November 1, 2001 |
SOUTHWEST
GAS CORPORATION /s/ ROY R. CENTRELLA Roy R. Centrella Controller |