UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2005.
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 |
For the transition period from __________ to __________.
Commission File Number 001-31303
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Black Hills Corporation | |
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Incorporated in South Dakota |
IRS Identification Number 46-0458824 |
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625 Ninth Street | |
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Rapid City, South Dakota 57701 | |
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Registrant’s telephone number (605) 721-1700 | |
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Former name, former address, and former fiscal year if changed since last report | |
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NONE | |
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.
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Yes |
x |
No |
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Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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Yes |
x |
No |
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Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
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Class |
Outstanding at April 30, 2005 |
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Common stock, $1.00 par value |
32,544,957 shares |
TABLE OF CONTENTS
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Page |
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PART 1. |
FINANCIAL INFORMATION |
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Item 1. |
Financial Statements |
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Condensed Consolidated Statements of Income – |
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Three Months Ended March 31, 2005 and 2004 |
3 |
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Condensed Consolidated Balance Sheets – |
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March 31, 2005, December 31, 2004 and March 31, 2004 |
4 |
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Condensed Consolidated Statements of Cash Flows – |
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Three Months Ended March 31, 2005 and 2004 |
5 |
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Notes to Condensed Consolidated Financial Statements |
6-22 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and |
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Results of Operations |
22-35 |
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Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
36-38 |
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Item 4. |
Controls and Procedures |
38 |
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PART II. |
OTHER INFORMATION |
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Item 1. |
Legal Proceedings |
39 |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
39 |
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Item 6. |
Exhibits |
39 |
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Signatures |
40 |
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Exhibit Index |
41 |
2
BLACK HILLS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
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Three Months Ended | |||
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March 31 | |||
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2005 |
2004 | ||
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(in thousands, | |||
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except per share amounts) | |||
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Operating revenues |
$ |
305,685 |
$ |
274,328 |
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Operating expenses: |
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Fuel and purchased power |
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190,978 |
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172,906 |
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Operations and maintenance |
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24,524 |
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24,454 |
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Administrative and general |
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23,253 |
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17,963 |
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Depreciation, depletion and amortization |
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23,519 |
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22,272 |
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Taxes, other than income taxes |
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8,369 |
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8,427 |
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270,643 |
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246,022 |
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Operating income |
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35,042 |
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28,306 |
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Other income (expense): |
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Interest expense |
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(12,769) |
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(14,351) |
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Interest income |
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390 |
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392 |
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Other expense |
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(73) |
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(103) |
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Other income |
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374 |
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373 |
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(12,078) |
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(13,689) |
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Income from continuing operations before equity in earnings (losses) |
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of unconsolidated subsidiaries, minority interest and income taxes |
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22,964 |
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14,617 |
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Equity in earnings (losses) of unconsolidated subsidiaries |
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1,475 |
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(249) |
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Minority interest |
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(60) |
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(42) |
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Income taxes |
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(8,514) |
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(4,332) |
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Income from continuing operations |
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15,865 |
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9,994 |
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Loss from discontinued operations, net of taxes |
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(125) |
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(208) |
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Net income |
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15,740 |
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9,786 |
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Preferred stock dividends |
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(79) |
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(88) |
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Net income available for common stock |
$ |
15,661 |
$ |
9,698 |
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Weighted average common shares outstanding: |
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Basic |
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32,444 |
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32,291 |
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Diluted |
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33,009 |
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32,811 |
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Earnings per share: |
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Basic– |
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Continuing operations |
$ |
0.48 |
$ |
0.31 |
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Discontinued operations |
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— |
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(0.01) |
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Total |
$ |
0.48 |
$ |
0.30 |
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Diluted– |
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Continuing operations |
$ |
0.48 |
$ |
0.30 |
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Discontinued operations |
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— |
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— |
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Total |
$ |
0.48 |
$ |
0.30 |
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Dividends paid per share of common stock |
$ |
0.32 |
$ |
0.31 |
The accompanying notes to condensed consolidated financial statements are an integral part of these condensed consolidated financial statements.
3
BLACK HILLS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
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March 31 |
December 31 |
March 31 | |||
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2005 |
2004 |
2004 | |||
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(in thousands, except share amounts) | |||||
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
67,629 |
$ |
64,506 |
$ |
191,484 |
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Restricted cash |
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3,769 |
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3,069 |
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1,070 |
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Receivables (net of allowance for doubtful accounts of $5,720; $4,698 and $7,582, respectively) |
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275,849 |
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256,505 |
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205,051 |
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Notes receivable |
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— |
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239 |
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239 |
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Materials, supplies and fuel |
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66,873 |
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89,732 |
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50,980 |
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Derivative assets |
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34,775 |
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47,977 |
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23,214 |
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Prepaid income taxes |
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1,048 |
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3,978 |
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— |
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Deferred income taxes |
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1,184 |
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4,237 |
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5,350 |
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Other assets |
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7,625 |
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7,005 |
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5,678 |
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Assets of discontinued operations |
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3,085 |
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3,059 |
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4,028 |
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461,837 |
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480,307 |
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487,094 |
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Investments |
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20,934 |
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24,436 |
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27,560 |
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Property, plant and equipment |
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2,141,912 |
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1,971,119 |
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1,897,920 |
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Less accumulated depreciation and depletion |
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(587,110) |
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(525,387) |
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(463,563) |
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1,554,802 |
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1,445,732 |
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