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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) April 29, 1998
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 5. OTHER EVENTS
On April 29, 1998, 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, 1998. 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 1998
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: April 29, 1998 /s/ EDWARD A. JANOV
-----------------------------
Edward A. Janov
Vice President/Controller and
Chief Accounting Officer
PAGE
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,
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
Gas operating revenues $ 274,363 $ 211,564 $ 677,464 $ 569,573
Net cost of gas sold 120,987 84,599 245,726 193,710
----------- ----------- ----------- -----------
Operating margin 153,376 126,965 431,738 375,863
Operations and maintenance expenses 50,850 48,448 203,561 199,601
Depreciation, amortization, and general taxes 27,274 25,612 105,583 97,078
----------- ----------- ----------- -----------
Operating income 75,252 52,905 122,594 79,184
Net interest deductions 16,025 14,261 63,515 54,311
Preferred securities distribution 1,369 1,369 5,475 5,475
----------- ----------- ----------- -----------
Pretax utility income 57,858 37,275 53,604 19,398
Utility income tax expense 22,254 14,440 16,736 7,028
----------- ----------- ----------- -----------
Net utility income 35,604 22,835 36,868 12,370
Other income (expense), net 53 (299) (7,922) (774)
----------- ----------- ----------- -----------
Contribution to net income - gas operations 35,657 22,536 28,946 11,596
Contribution to net income - construction services 296 (968) 1,908 1,687
----------- ----------- ----------- -----------
Net income $ 35,953 $ 21,568 $ 30,854 $ 13,283
=========== =========== =========== ===========
Earnings per share - gas operations $ 1.30 $ 0.84 $ 1.06 $ 0.44
Earnings (loss) per share - construction services 0.01 (0.04) 0.07 0.06
----------- ----------- ----------- -----------
Basic earnings per share $ 1.31 $ 0.80 $ 1.13 $ 0.50
=========== =========== =========== ===========
Diluted earnings per share $ 1.30 $ 0.80 $ 1.13 $ 0.50
=========== =========== =========== ===========
Average outstanding common shares 27,447 26,816 27,225 26,437
Average shares outstanding (assuming dilution) 27,605 26,939 27,358 26,527
See Notes to Summary Financial Statements.
/TABLE
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT MARCH 31, 1998
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,340,043
Construction work in progress 37,325
------------
Net utility plant 1,377,368
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 25,335
Other 50,662
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Total other property and investments 75,997
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 8,763
Receivables - less reserve of $2,162 for uncollectibles 67,038
Accrued utility revenue 33,500
Deferred purchased gas costs 86,351
Other 24,130
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Total current and accrued assets 219,782
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DEFERRED DEBITS
Unamortized debt expense 18,915
Other deferred debits 29,761
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Total deferred debits 48,676
------------
TOTAL ASSETS $ 1,721,823
============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 27,521 shares outstanding $ 392,042
Retained earnings 26,581
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Total common stockholders' equity 418,623 33.4%
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.8
Long-term debt - NOTE 2 773,093 61.8
------------ ------
Total capitalization 1,251,716 100.0%
------------ ======
CURRENT AND ACCRUED LIABILITIES
Notes payable 78,000
Accounts payable 55,106
Customer deposits 22,496
Taxes accrued (including income taxes) 31,400
Other 65,326
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Total current and accrued liabilities 252,328
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DEFERRED CREDITS
Deferred investment tax credits 17,922
Deferred income taxes 150,227
Other 49,630
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Total deferred credits 217,779
------------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,721,823
============
See Notes to Summary Financial Statements.
/END TABLE
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1998
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 35,953
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 19,301
Change in receivables and payables 11,058
Change in gas cost related balancing items 559
Change in accrued taxes 29,508
Change in deferred taxes 3,268
Allowance for funds used during construction (404)
Other 6,807
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Net cash provided by operating activities 106,050
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (36,658)
Other (7,991)
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Net cash used in investing activities (44,649)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 2,342
Dividends paid (5,623)
Change in notes payable (64,000)
Long-term debt issuances, net 1,300
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Net cash used in financing activities (65,981)
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Change in cash and temporary cash investments (4,580)
Cash at beginning of period 13,343
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Cash at end of period $ 8,763
============
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 15,054
Income taxes, net of refunds $ (613)
See Notes to Summary Financial Statements.
/TABLE
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:
Term loan facility $ 200,000
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
Industrial development revenue bonds:
Variable-rate bonds, Series A, due 2028 - net of funds held in trust 25,138
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 (7,045)
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TOTAL LONG-TERM DEBT $ 773,093
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ESTIMATED CURRENT MATURITIES $ --
===========
/TABLE
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
MARCH 31, 1998
FINANCIAL STATISTICS
Market value to book value per share at quarter end 137%
Twelve months to date return on equity -- total company 7.9%
-- gas segment 7.8%
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 19,910 10.02 11.35
Paiute Pipeline Company (1) 61,602 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,
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(In dekatherms) 1998 1997 1998 1997
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Residential 27,948,401 24,174,330 54,328,952 48,957,887
Small commercial 10,305,324 9,412,867 25,552,999 24,093,705
Large commercial 2,057,455 2,037,777 7,673,862 7,741,028
Industrial / Other 2,376,968 1,954,350 9,026,219 5,561,016
Transportation 21,807,076 19,570,001 105,322,803 96,196,677
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Total system throughput 64,495,224 57,149,325 201,904,835 182,550,313
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HEATING DEGREE DAY COMPARISON
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Actual 1,292 1,093 2,174 1,983
Ten-year average 1,155 1,145 2,032 2,022
============================================================================================================================
/TABLE
