FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2003
Commission file number: 1-7196
CASCADE NATURAL GAS CORPORATION
(Exact name of Registrant as specified in its charter)
|
Washington |
|
91-0599090 |
|
|
(State or other
jurisdiction of |
|
(I.R.S. Employer |
|
|
|
|
|
|
|
222 Fairview Avenue North, Seattle, WA |
|
|
98109 |
|
(Address of principal executive offices) |
|
|
(Zip code) |
|
|
|
|
|
|
(Registrant’s telephone number including area code) |
|
|
(206) 624-3900 |
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 ý No o
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
|
Title |
|
Outstanding |
|
|
|
|
|
Common Stock, Par Value $1 per Share |
|
11,105,778 as of July 31, 2003 |
CASCADE NATURAL GAS CORPORATION
Index
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
||
|
|
|
|
|
|
|
|
|
Item 3. Quantitative and Qualitative Disclosures about Market Risk |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||
2
CASCADE NATURAL GAS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited)
|
|
|
THREE MONTHS ENDED |
|
NINE MONTHS ENDED |
|
|||||||||
|
|
|
Jun 30, 2003 |
|
Jun 30, 2002 |
|
Jun 30, 2003 |
|
Jun 30, 2002 |
|
|||||
|
|
|
(thousands except per share data) |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating revenues |
|
$ |
53,793 |
|
$ |
56,815 |
|
$ |
263,575 |
|
$ |
281,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Less: |
Gas purchases |
|
32,652 |
|
38,509 |
|
169,481 |
|
186,792 |
|
||||
|
|
Revenue taxes |
|
3,813 |
|
4,053 |
|
17,610 |
|
18,794 |
|
||||
|
Operating margin |
|
17,328 |
|
14,253 |
|
76,484 |
|
76,352 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cost of operations: |
|
|
|
|
|
|
|
|
|
|||||
|
Operating expenses |
|
11,953 |
|
9,854 |
|
33,063 |
|
30,815 |
|
|||||
|
Depreciation and amortization |
|
3,846 |
|
3,746 |
|
11,466 |
|
11,144 |
|
|||||
|
Property and payroll taxes |
|
1,450 |
|
1,290 |
|
4,258 |
|
4,123 |
|
|||||
|
|
|
17,249 |
|
14,890 |
|
48,787 |
|
46,082 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Income (loss) from operations |
|
79 |
|
(637 |
) |
27,697 |
|
30,270 |
|
|||||
|
Less interest and other deductions - net |
|
3,197 |
|
3,224 |
|
9,508 |
|
9,372 |
|
|||||
|
Income (loss) before income taxes |
|
(3,118 |
) |
(3,861 |
) |
18,189 |
|
20,898 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Income taxes |
|
(1,138 |
) |
(1,409 |
) |
6,639 |
|
7,628 |
|
|||||
|
Net income (loss) |
|
(1,980 |
) |
(2,452 |
) |
11,550 |
|
13,270 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Weighted average common shares outstanding |
|
11,086 |
|
11,045 |
|
11,063 |
|
11,045 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net earnings (loss) per common share, |
|
|
|
|
|
|
|
|
|
|||||
|
Basic |
|
$ |
(0.18 |
) |
$ |
(0.22 |
) |
$ |
1.04 |
|
$ |
1.20 |
|
|
|
Diluted |
|
$ |
(0.18 |
) |
$ |
(0.22 |
) |
$ |
1.04 |
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash dividends per share |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.72 |
|
$ |
0.72 |
|
|
The accompanying notes are an integral part of these financial statements
3
CASCADE NATURAL GAS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands)
|
|
|
Jun 30, 2003 |
|
Sep 30, 2002 |
|
||
|
|
|
(Unaudited) |
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Utility Plant, net of accumulated |
|
$ |
296,655 |
|
$ |
291,650 |
|
|
Construction work in progress |
|||||||