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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) November 1, 2000
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 November 1, 2000, 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, 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)
THREE MONTHS ENDED NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------------------ ----------------------- ------------------------
2000 1999 2000 1999 2000 1999
----------- ----------- ----------- ----------- ----------- -----------
Gas operating revenues $ 150,178 $125,190 $ 575,142 $570,979 $ 795,318 $802,967
Net cost of gas sold 70,142 46,711 263,836 254,436 339,431 338,031
----------- ----------- ----------- ----------- ----------- -----------
Operating margin 80,036 78,479 311,306 316,543 455,887 464,936
Operations and maintenance expenses 56,839 54,621 170,506 163,565 228,199 218,941
Depreciation, amortization, and general taxes 31,111 28,992 93,059 87,066 121,857 115,888
----------- ----------- ----------- ----------- ----------- -----------
Operating income (loss) (7,914) (5,134) 47,741 65,912 105,831 130,107
Net interest deductions 17,165 15,657 50,050 44,720 66,927 60,198
Preferred securities distribution 1,368 1,368 4,106 4,106 5,475 5,475
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Pretax utility income (loss) (26,447) (22,159) (6,415) 17,086 33,429 64,434
Utility income tax (10,334) (8,815) (4,300) 6,374 9,724 27,096
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Net utility income (loss) (16,113) (13,344) (2,115) 10,712 23,705 37,338
Other income (expense), net 4,495 (1,960) 3,912 (3,327) 6,180 (5,760)
----------- ----------- ----------- ----------- ----------- -----------
Contribution to net income (loss) - gas operations (11,618) (15,304) 1,797 7,385 29,885 31,578
Contribution to net income - construction services 1,938 1,116 3,992 3,097 4,732 3,947
----------- ----------- ----------- ----------- ----------- -----------
Net income (loss) $ (9,680) $ (14,188) $ 5,789 $ 10,482 $ 34,617 $ 35,525
=========== =========== =========== =========== =========== ===========
Earnings (loss) per share - gas operations $ (0.37) $ (0.50) $ 0.06 $ 0.24 $ 0.96 $ 1.03
Earnings per share - construction services 0.06 0.04 0.13 0.10 0.15 0.13
----------- ----------- ----------- ----------- ----------- -----------
Basic earnings (loss) per share $ (0.31) $ (0.46) $ 0.19 $ 0.34 $ 1.11 $ 1.16
=========== =========== =========== =========== =========== ===========
Diluted earnings (loss) per share $ (0.31) $ (0.46) $ 0.18 $ 0.34 $ 1.10 $ 1.15
=========== =========== =========== =========== =========== ===========
Average outstanding common shares 31,424 30,742 31,285 30,621 31,272 30,550
Average shares outstanding (assuming dilution) -- -- 31,465 30,902 31,471 30,824
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 STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2000 1999 2000 1999
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Gas operating revenues $ 575,142 $ 570,979 $ 795,318 $ 802,967
Net cost of gas sold 263,836 254,436 339,431 338,031
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Operating margin 311,306 316,543 455,887 464,936
Operations and maintenance expenses 170,506 163,565 228,199 218,941
Depreciation, amortization, and general taxes 93,059 87,066 121,857 115,888
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Operating income 47,741 65,912 105,831 130,107
Net interest deductions 50,050 44,720 66,927 60,198
Preferred securities distribution 4,106 4,106 5,475 5,475
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Pretax utility income (loss) (6,415) 17,086 33,429 64,434
Utility income tax expense (benefit) (4,300) 6,374 9,724 27,096
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Net utility income (loss) (2,115) 10,712 23,705 37,338
Other income (expense), net 3,912 (3,327) 6,180 (5,760)
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Contribution to net income - gas operations 1,797 7,385 29,885 31,578
Contribution to net income - construction services 3,992 3,097 4,732 3,947
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Net income $ 5,789 $ 10,482 $ 34,617 $ 35,525
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Earnings per share - gas operations $ 0.06 $ 0.24 $ 0.96 $ 1.03
Earnings per share - construction services 0.13 0.10 0.15 0.13
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Basic earnings per share $ 0.19 $ 0.34 $ 1.11 $ 1.16
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Diluted earnings per share $ 0.18 $ 0.34 $ 1.10 $ 1.15
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Average outstanding common shares 31,285 30,621 31,272 30,550
Average shares outstanding (assuming dilution) 31,465 30,902 31,471 30,824
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT SEPTEMBER 30, 2000
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,609,695
Construction work in progress 47,196
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Net utility plant 1,656,891
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 32,950
Other 45,903
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Total other property and investments 78,853
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 10,250
Receivables - less reserve of $1,588 for uncollectibles 43,816
Accrued utility revenue 24,373
Deferred purchased gas costs 17,677
Other 29,055
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Total current and accrued assets 125,171
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DEFERRED DEBITS
Unamortized debt expense 18,715
Other deferred debits 24,245
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Total deferred debits 42,960
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TOTAL ASSETS $ 1,903,875
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 31,530 shares outstanding $ 482,893
Retained earnings 19,992
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Total common stockholders' equity 502,885 35.6 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.2
Long-term debt - NOTE 2 851,161 60.2
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Total capitalization 1,414,046 100.0 %
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CURRENT AND ACCRUED LIABILITIES
Notes payable 89,000
Accounts payable 49,571
Customer deposits 28,427
Taxes accrued (including income taxes) 27,527
Other 59,460
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Total current and accrued liabilities 253,985
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DEFERRED CREDITS
Deferred investment tax credits 15,753
Deferred income taxes 166,810
Other 53,281
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Total deferred credits 235,844
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TOTAL CAPITALIZATION AND LIABILITIES $ 1,903,875
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See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2000
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 5,789
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 70,371
Change in receivables and payables 48,886
Change in gas cost related balancing items (8,626)
Change in accrued taxes (13,442)
Change in deferred taxes 10,398
Allowance for funds used during construction (1,152)
Other 4,842
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Net cash provided by operating activities 117,066
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (145,323)
Other 1,045
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Net cash used in investing activities (144,278)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 11,016
Dividends paid (19,234)
Change in notes payable 28,000
Long-term debt issuances, net 5,415
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Net cash provided by financing activities 25,197
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Change in cash and temporary cash investments (2,015)
Cash at beginning of period 12,265
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Cash at end of period $ 10,250
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SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 48,287
Income taxes, net of refunds $ 52
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, 7.78% 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 42,418
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 (6,257)
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TOTAL LONG-TERM DEBT $ 851,161
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ESTIMATED CURRENT MATURITIES $ --
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SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
SEPTEMBER 30, 2000
FINANCIAL STATISTICS
Market value to book value per share at quarter end 131%
Twelve months to date return on equity -- total company 6.8%
-- gas segment 6.2%
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
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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 24,344 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 NINE MONTHS ENDED TWELVE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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(In dekatherms) 2000 1999 2000 1999
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Residential 40,183,742 42,517,543 53,116,949 56,318,193
Small commercial 19,555,221 19,988,237 26,170,012 26,649,200
Large commercial 4,885,694 4,995,617 6,146,638 6,811,334
Industrial / Other 14,026,128 11,637,753 17,818,938 15,136,892
Transportation 108,392,712 88,181,939 138,896,720 115,135,917
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Total system throughput 187,043,497 167,321,089 242,149,257 220,051,536
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HEATING DEGREE DAY COMPARISON
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Actual 1,235 1,463 1,691 2,031
Ten-year average 1,408 1,442 1,988 2,029
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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: November 1, 2000 /s/ EDWARD A. JANOV
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Edward A. Janov
Vice President/Controller and
Chief Accounting Officer