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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) February 26, 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 February 26, 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 and year ended December 31, 2000. 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)
YEAR ENDED DECEMBER 31,
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2000 1999 1998
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Gas operating revenues $ 870,711 $ 791,155 $ 799,597
Net cost of gas sold 394,711 330,031 329,849
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Operating margin 476,000 461,124 469,748
Operations and maintenance expenses 231,175 221,258 209,172
Depreciation, amortization, and general taxes 124,508 115,864 111,877
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Operating income 120,317 124,002 148,699
Net interest deductions 68,892 61,597 62,284
Preferred securities distribution 5,475 5,475 5,475
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Pretax utility income 45,950 56,930 80,940
Utility income tax expense 13,614 20,398 33,464
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Net utility income 32,336 36,532 47,476
Other income (expense), net * 1,572 (1,059) (2,646)
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Contribution to net income - gas operations 33,908 35,473 44,830
Contribution to net income - construction services 4,403 3,837 2,707
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Net income $ 38,311 $ 39,310 $ 47,537
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Earnings per share - gas operations $ 1.08 $ 1.16 $ 1.57
Earnings per share - construction services 0.14 0.12 0.09
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Basic earnings per share $ 1.22 $ 1.28 $ 1.66
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Diluted earnings per share $ 1.21 $ 1.27 $ 1.65
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Average outstanding common shares 31,371 30,690 28,611
Average shares outstanding (assuming dilution) 31,575 30,965 28,815
* Merger-related costs, net of tax, were $497,000 in 2000, $2,531,000 in 1999,
and $666,000 in 1998.
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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2000 1999 2000 1999
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Gas operating revenues $ 295,569 $ 220,176 $ 870,711 $ 791,155
Net cost of gas sold 130,875 75,595 394,711 330,031
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Operating margin 164,694 144,581 476,000 461,124
Operations and maintenance expenses 60,669 57,693 231,175 221,258
Depreciation, amortization, and general taxes 31,449 28,798 124,508 115,864
--------------- --------------- --------------- ---------------
Operating income 72,576 58,090 120,317 124,002
Net interest deductions 18,842 16,877 68,892 61,597
Preferred securities distribution 1,369 1,369 5,475 5,475
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Pretax utility income 52,365 39,844 45,950 56,930
Utility income tax 17,914 14,024 13,614 20,398
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Net utility income 34,451 25,820 32,336 36,532
Other income (expense), net (2,340) 2,268 1,572 (1,059)
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Contribution to net income - gas operations 32,111 28,088 33,908 35,473
Contribution to net income - construction services 411 740 4,403 3,837
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Net income $ 32,522 $ 28,828 $ 38,311 $ 39,310
=============== =============== =============== ===============
Earnings per share - gas operations $ 1.02 $ 0.91 $ 1.08 $ 1.16
Earnings per share - construction services 0.01 0.02 0.14 0.12
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Basic earnings per share $ 1.03 $ 0.93 $ 1.22 $ 1.28
=============== =============== =============== ===============
Diluted earnings per share $ 1.02 $ 0.93 $ 1.21 $ 1.27
=============== =============== =============== ===============
Average outstanding common shares 31,627 30,894 31,371 30,690
Average shares outstanding (assuming dilution) 31,902 31,151 31,575 30,965
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 DECEMBER 31, 2000
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,644,355
Construction work in progress 41,727
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Net utility plant 1,686,082
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 32,986
Other 46,049
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Total other property and investments 79,035
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 14,646
Receivables - less reserve of $1,564 for uncollectibles 113,942
Accrued utility revenue 57,873
Deferred purchased gas costs 92,064
Taxes accrued (including income taxes) 13,190
Other 83,255
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Total current and accrued assets 374,970
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DEFERRED DEBITS
Unamortized debt expense 18,626
Other deferred debits 28,528
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Total deferred debits 47,154
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TOTAL ASSETS $ 2,187,241
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 31,710 shares outstanding $ 487,472
Retained earnings 45,995
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Total common stockholders' equity 533,467 36.2 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.1
Long-term debt - NOTE 2 880,099 59.7
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Total capitalization 1,473,566 100.0 %
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CURRENT AND ACCRUED LIABILITIES
Notes payable 131,000
Accounts payable 189,085
Customer deposits 29,039
Other 110,631
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Total current and accrued liabilities 459,755
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DEFERRED CREDITS
Deferred investment tax credits 15,536
Deferred income taxes 184,675
Other 53,709
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Total deferred credits 253,920
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TOTAL CAPITALIZATION AND LIABILITIES $ 2,187,241
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See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
TWELVE MONTHS ENDED DECEMBER 31, 2000
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 38,311
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 94,689
Change in receivables and payables 86,215
Change in gas cost related balancing items (83,013)
Change in accrued taxes (54,159)
Change in deferred taxes 80,239
Allowance for funds used during construction (1,569)
Other (51,052)
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Net cash provided by operating activities 109,661
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (205,161)
Other 3,900
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Net cash used in investing activities (201,261)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 15,595
Dividends paid (25,715)
Change in notes payable 70,000
Long-term debt issuances, net 34,101
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Net cash provided by financing activities 93,981
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Change in cash and temporary cash investments 2,381
Cash at beginning of period 12,265
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Cash at end of period $ 14,646
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SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 65,895
Income taxes, net of refunds $ (13,998)
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 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, 7.75% 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 - net of funds held in trust 46,355
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 (6,256)
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TOTAL LONG-TERM DEBT $ 880,099
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ESTIMATED CURRENT MATURITIES $ --
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SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
DECEMBER 31, 2000
FINANCIAL STATISTICS
Market value to book value per share at year end 130%
Twelve months to date return on equity -- total company 7.4%
-- gas segment 6.9%
Common stock dividend yield at year end 3.7%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
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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
YEAR ENDED DECEMBER 31,
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(In dekatherms) 2000 1999 1998
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Residential 57,137,754 55,450,748 58,694,167
Small commercial 27,267,289 26,603,025 26,993,684
Large commercial 6,390,838 6,256,564 7,932,567
Industrial / Other 19,971,471 15,430,564 16,705,989
Transportation 148,270,056 118,685,947 100,137,195
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Total system throughput 259,037,408 222,426,848 210,463,602
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YEAR ENDED DECEMBER 31,
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HEATING DEGREE DAY COMPARISON 2000 1999 1998
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Actual 1,938 1,917 2,298
Ten-year average 1,991 2,021 2,023
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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: February 26, 2001 /s/ EDWARD A. JANOV
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Edward A. Janov
Vice President/Controller and
Chief Accounting Officer