|
UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION
|
WASHINGTON, D.C. 20549 |
|
Form 10-Q |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended March 31, 2005 |
|
Commission File Number 1-7850 |
|
SOUTHWEST GAS CORPORATION | ||
|
|
(Exact name of registrant as specified in its charter) |
|
|
|
California |
88-0085720 |
| ||||
|
|
(State or other jurisdiction of |
(I.R.S. Employer |
| ||||
|
incorporation or organization) |
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 |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes |X| No |_|
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes |X| No |_|
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
|
Common Stock, $1 Par Value, 37,617,317 shares as of May 3, 2005. |
|
SOUTHWEST GAS CORPORATION |
Form 10-Q |
March 31, 2005
SOUTHWEST
GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Thousands of dollars, except par value)
(Unaudited)
| MARCH 31, 2005 |
DECEMBER 31, 2004 | |||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Utility plant: | ||||||||
| Gas plant | $ | 3,329,082 | $ | 3,287,591 | ||||
| Less: accumulated depreciation | (1,009,824 | ) | (985,919 | ) | ||||
| Acquisition adjustments, net | 2,308 | 2,353 | ||||||
| Construction work in progress | 32,338 | 31,967 | ||||||
| Net utility plant | 2,353,904 | 2,335,992 | ||||||
| Other property and investments | 100,661 | 99,879 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 16,714 | 13,641 | ||||||
| Accounts receivable, net of allowances | 149,332 | 176,090 | ||||||
| Accrued utility revenue | 40,700 | 68,200 | ||||||
| Deferred purchased gas costs | 74,002 | 82,076 | ||||||
| Prepaids and other current assets | 50,474 | 91,986 | ||||||
| Total current assets | 331,222 | 431,993 | ||||||
| Deferred charges and other assets | 71,671 | 70,252 | ||||||
| Total assets | $ | 2,857,458 | $ | 2,938,116 | ||||
| CAPITALIZATION AND LIABILITIES | ||||||||
| Capitalization: | ||||||||
| Common stock, $1 par (authorized - 45,000,000 shares; issued | ||||||||
| and outstanding - 37,308,042 and 36,794,343 shares) | $ | 38,938 | $ | 38,424 | ||||
| Additional paid-in capital | 577,579 | 566,646 | ||||||
| Accumulated other comprehensive income (loss), net | (10,892 | ) | (10,892 | ) | ||||
| Retained earnings | 136,610 | 111,498 | ||||||
| Total equity | 742,235 | 705,676 | ||||||
| Subordinated debentures due to Southwest Gas Capital II | 100,000 | 100,000 | ||||||
| Long-term debt, less current maturities | 1,162,126 | 1,162,936 | ||||||
| Total capitalization | 2,004,361 | 1,968,612 | ||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt | 29,252 | 29,821 | ||||||
| Short-term debt | 11,000 | 100,000 | ||||||
| Accounts payable | 103,052 | 165,872 | ||||||
| Customer deposits | 52,499 | 50,194 | ||||||
| Accrued general taxes | 48,590 | 38,189 | ||||||
| Accrued interest | 20,605 | 22,425 | ||||||
| Deferred income taxes | 22,547 | 26,676 | ||||||
| Other current liabilities | 44,328 | 49,854 | ||||||
| Total current liabilities | 331,873 | 483,031 | ||||||
| Deferred income taxes and other credits: | ||||||||
| Deferred income taxes and investment tax credits | 300,507 | 281,743 | ||||||
| Taxes payable | 8,400 | 3,965 | ||||||
| Accumulated removal costs | 90,000 | 84,000 | ||||||
| Other deferred credits | 122,317 | 116,765 | ||||||
| Total deferred income taxes and other credits | 521,224 | 486,473 | ||||||
| Total capitalization and liabilities | $ | 2,857,458 | $ | 2,938,116 | ||||
|
The accompanying notes are an integral part of these statements.
2
|
|
SOUTHWEST GAS CORPORATION |
Form 10-Q |
March 31, 2005
SOUTHWEST GAS
CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
| THREE MONTHS ENDED MARCH 31, |
TWELVE MONTHS ENDED MARCH 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 |
2004 |
2005 |
2004 | |||||||||||
| Operating revenues: | ||||||||||||||
| Gas operating revenues | $ | 494,983 | $ | 433,784 | $ | 1,323,251 | $ | 1,108,154 | ||||||
| Construction revenues | 47,897 | 39,616 | 223,289 | 192,965 | ||||||||||
| Total operating revenues | 542,880 | 473,400 | 1,546,540 | 1,301,119 | ||||||||||
| Operating expenses: | ||||||||||||||
| Net cost of gas sold | 303,927 | 236,598 | 713,095 | 525,629 | ||||||||||
| Operations and maintenance | 74,276 | 69,981 | 295,095 | 270,786 | ||||||||||
| Depreciation and amortization | 38,492 | 36,084 | 148,426 | 139,211 | ||||||||||
| Taxes other than income taxes | 10,314 | 9,909 | 38,074 | 36,519 | ||||||||||
| Construction expenses | 43,022 | 35,026 | 195,036 | 170,381 | ||||||||||
| Total operating expenses | 470,031 | 387,598 | 1,389,726 | 1,142,526 | ||||||||||
| Operating income | 72,849 | 85,802 | 156,814 | 158,593 | ||||||||||
| Other income and (expenses): | ||||||||||||||
| Net interest deductions | (20,033 | ) | (18,744 | ) | (80,071 | ) | (75,613 | ) | ||||||
| Net interest deductions on subordinated debentures | (1,931 | ) | (1,930 | ) | (7,725 | ) | (4,610 | ) | ||||||
| Preferred securities distributions | -- | -- | -- | (2,811 | ) | |||||||||
| Other income (deductions) | 1,393 | 144 | 5,000 | 4,406 | ||||||||||
| Total other income and (expenses) | (20,571 | ) | (20,530 | ) | (82,796 | ) | (78,628 | ) | ||||||
| Income before income taxes | 52,278 | 65,272 | 74,018 | 79,965 | ||||||||||
| Income tax expense | 19,449 | 24,228 | 25,458 | 25,958 | ||||||||||
| Net income | $ | 32,829 | $ | 41,044 | $ | 48,560 | $ | 54,007 | ||||||
| Basic earnings per share | $ | 0.88 | $ | 1.19 | $ | 1.35 | $ | 1.59 | ||||||
| Diluted earnings per share | $ | 0.88 | $ | 1.18 | $ | 1.34 | $ | 1.57 | ||||||
| Dividends paid per share | $ | 0.205 | $ | 0.205 | $ | 0.82 | $ | 0.82 | ||||||
| Average number of common shares outstanding | 37,097 | 34,411 | 35,869 | 34,001 | ||||||||||
| Average shares outstanding (assuming dilution) | 37,390 | 34,672 | 36,161 | 34,292 | ||||||||||
|
The accompanying notes are an integral part of these statements.
3
|
|
SOUTHWEST GAS CORPORATION |
Form 10-Q |
March 31, 2005
SOUTHWEST GAS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of dollars)
(Unaudited)
| THREE MONTHS ENDED MARCH 31, |
TWELVE MONTHS ENDED MARCH 31, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2005 |
2004 |
2005 |
2004 | |||||||||||
| CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||||
| Net income | $ | 32,829 | $ | 41,044 | $ | 48,560 | $ | 54,007 | ||||||
| Adjustments to reconcile net income to net | ||||||||||||||
| cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 38,492 | 36,084 | 148,426 | 139,211 | ||||||||||
| Deferred income taxes | 14,635 | 23,042 | 29,594 | 68,126 | ||||||||||
| Changes in current assets and liabilities: | ||||||||||||||
| Accounts receivable, net of allowances | 26,758 | (783 | ) | (21,766 | ) | (6,623 | ) | |||||||
| Accrued utility revenue | 27,500 | 32,000 | (6,000 | ) | 2,000 | |||||||||
| Deferred purchased gas costs | 8,074 | (46,460 | ) | (18,391 | ) | (97,869 | ) | |||||||
| Accounts payable | (62,820 | ) | (24,824 | ) | 17,762 | 5,455 | ||||||||
| Accrued taxes | 14,836 | 17,573 | 290 | (11,497 | ) | |||||||||
| Other current assets and liabilities | 36,492 | 1,041 | 10,045 | 3,177 | ||||||||||
| Other | (673 | ) | (1,018 | ) | 1,395 | 4,828 | ||||||||
| Net cash provided by operating activities | 136,123 | 77,699 | 209,915 | 160,815 | ||||||||||
| CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||||||||
| Construction expenditures and property additions | (50,075 | ) | (51,097 | ) | (301,666 | ) | (241,760 | ) | ||||||
| Other | 3,760 | (92 | ) | 9,958 | (19,105 | ) | ||||||||
| Net cash used in investing activities | (46,315 | ) | (51,189 | ) | (291,708 | ) | (260,865 | ) | ||||||
| CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||||||||
| Issuance of common stock, net | 11,447 | 5,450 | 64,684 | 22,293 | ||||||||||
| Dividends paid | (7,612 | ) | (7,055 | ) | (29,393 | ) | (27,884 | ) | ||||||
| Issuance of subordinated debentures, net | -- | -- | -- | 96,312 | ||||||||||
| Issuance of long-term debt, net | -- | -- | 147,135 | 11,647 | ||||||||||
| Retirement of long-term debt, net | (1,420 | ) | (1,590 | ) | (83,267 | ) | (9,691 | ) | ||||||
| &nbs | ||||||||||||||