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 22, 1994
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CONNECTICUT NATURAL GAS CORPORATION
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(Exact name of registrant as specified in its charter)
Connecticut
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(State or other jurisdiction of incorporation)
1-7727 06-0383860
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(Commission (I.R.S. Employer
File Number) Identification No.)
100 Columbus Boulevard, Hartford, Connecticut 06103
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(203) 727-3000
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Item 5. Other Information
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(a) Press Release
Fiscal Year 1994 Earnings
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CONNECTICUT NATURAL GAS CORPORATION ANNOUNCES INCREASE IN YEAR-END EARNINGS
HARTFORD, Connecticut, November 22, 1994 --- Connecticut Natural Gas
Corporation (NYSE:CTG) today reported consolidated net income for the
fiscal year ending September 30, 1994 of $17,637,000, up 5.1% from
$16,788,000 for fiscal 1993. Consolidated earnings per share were $1.85,
compared with $1.76 in fiscal 1993.
Victor H. Frauenhofer, Chairman, President and Chief Executive Officer
said, "Earnings for the year benefitted from new rates which were approved
by regulators and took effect in December and from weather that was 7
percent colder than normal and 4 percent colder than the previous year."
Mr. Frauenhofer continued, "Aggressive cost containment and increased off-
system sales were also factors in the year's financial improvement. CTG
continued its aggressive marketing efforts during fiscal 1994 which
resulted in 1.3 million MCF in new sales, from both traditional and non-
traditional sources."
The Company also announced a voluntary early retirement program in August
of 1994. Twenty employees accepted retirement effective November 1, 1994.
The $1.3 million in expenses associated with this program were recognized
by CTG in the fourth quarter of fiscal 1994.
Connecticut Natural Gas Corporation is the largest distributor of natural
gas in Connecticut and currently serves approximately 140,000 customers
in 22 municipalities in Greater Hartford/New Britain areas and Greenwich.
The Company's nonregulated subsidiary provides district heating and cooling
to the downtown Hartford and State Capitol areas.
more. . .
Connecticut Natural Gas Corporation - News Release
November 22, 1994
Page 2
CONNECTICUT NATURAL GAS CORPORATION
Period Ending September 30, 1994
(dollars in thousands except per share data)
Twelve Months Ended Three Months Ended
September 30, September 30,
1994 1993 1994 1993
Consolidated Gross Revenues $ 290,662 $ 265,337 $ 37,954 $ 40,122
Consolidated Net Income/(Loss) $ 17,703 $ 16,855 $ (3,105) $ (2,764)
Balance Available
for Common Stock $ 17,637 $ 16,788 $ (3,122) $ (2,781)
Consolidated Net Income/(Loss)
per Common Share $ 1.85 $ 1.76 $ (.33) $ (.29)
Average Common
Shares Outstanding 9,539,695 9,527,772 9,542,296 9,542,296
Dividends Per Common Share $ 1.48 $ 1.46 $ .37 $ .37
(b) Unaudited financial statements for the fiscal year ending September 30, 1994
"UNAUDITED"
Consolidated Balance Sheets
September 30, 1994 and 1993
(Thousands of Dollars)
Assets
1994 1993
---- ----
Plant and Equipment:
Plant in service $ 428,366 $ 402,175
Construction work in progress 2,762 1,355
--------- ---------
431,128 403,530
Less-Allowance for depreciation 119,392 106,919
--------- ---------
311,736 296,611
--------- ---------
Investments, at equity 5,147 4,874
--------- ---------
Current Assets:
Cash and cash equivalents 1,126 1,546
Accounts receivable (less allowance for
doubtful accounts of $4,017 in 1994
and $3,068 in 1993) 24,376 22,911
Accrued utility revenue 3,714 4,632
Inventories 18,326 20,413
Prepaid expenses 10,107 3,379
Recoverable purchased gas costs 3,769 -
--------- ---------
Total Current Assets 61,418 52,881
--------- ---------
Other Assets:
Unrecovered future taxes 46,759 51,023
Recoverable transition costs 6,925 15,000
Other assets 26,569 24,196
--------- ---------
Total Other Assets 80,253 90,219
--------- ---------
$ 458,554 $ 444,585
========= =========
The accompanying notes are an integral part of these financial statements.
"UNAUDITED"
Consolidated Balance Sheets (Concluded)
September 30, 1994 and 1993
(Thousands of Dollars)
Capitalization and Liabilities
1994 1993
---- ----
Capitalization (see accompanying statements):
Common stock equity $ 139,481 $ 136,322
Preferred stock, not subject to
mandatory redemption 909 944
Long-term debt 154,193 137,984
--------- ---------
294,583 275,250
--------- ---------
Notes Payable Under Revolving Credit Agreements - 4,500
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Current Liabilities:
Current portion of long-term debt 3,791 4,653
Notes payable and commercial paper 18,500 10,000
Accounts payable and accrued expenses 37,906 42,084
Refundable purchased gas costs - 3,758
Accrued taxes 3,543 1,105
Accrued interest 4,236 3,423
--------- ---------
Total Current Liabilities 67,976 65,023
--------- ---------
Deferred Credits:
Deferred income taxes 36,916 27,450
Unfunded deferred income taxes 46,759 51,023
Investment tax credits 3,644 3,864
Refundable taxes 3,275 4,024
Accrued transition costs 1,925 7,678
Other 3,476 5,773
--------- ---------
Total Deferred Credits 95,995 99,812
--------- ---------
Commitments and Contingencies
--------- ---------
$ 458,554 $ 444,585
========= =========
The accompanying notes are an integral part of these financial statements.
"UNAUDITED"
Consolidated Statements of Income
For the Years Ended September 30, 1994, 1993 and 1992
(Thousands of Dollars Except for Per Share Data)
1994 1993 1992
---- ---- ----
Operating Revenues $ 290,662 $ 265,337 $ 236,189
Less: Cost of Energy 155,547 145,904 118,822
State Gross Revenues Tax 11,863 11,095 10,421
--------- --------- ---------
Operating Margin 123,252 108,338 106,946
--------- --------- ---------
Operating Expenses:
Operations 48,361 39,709 39,947
Maintenance 7,683 7,469 7,864
Depreciation and amortization 15,507 12,649 11,333
Income taxes 13,353 13,438 12,334
Local property taxes 5,259 5,090 5,585
Other taxes 2,177 1,797 1,984
--------- --------- ---------
92,340 80,152 79,047
--------- --------- ---------
Operating Income 30,912 28,186 27,899
--------- --------- ---------
Other Income/(Deductions),
net of income taxes:
Allowance for equity funds used
during construction 21 607 19
Equity in partnership earnings 868 970 936
Other income/(deductions) (1,007) (614) 524
Income taxes (113) (552) (374)
--------- --------- ---------
(231) 411 1,105
--------- --------- ---------
Interest and Debt Expense, net:
Interest on long-term debt 10,997 9,985 11,485
Other interest 1,573 1,782 1,908
Allowance for borrowed funds used
during construction (14) (404) (12)
Amortization of debt expense 422 379 358
--------- --------- ---------
12,978 11,742 13,739
--------- --------- ---------
Net Income 17,703 16,855 15,265
Less-Dividends on Preferred Stock 66 67 68
--------- --------- ---------
Net Income Applicable to Common Stock $ 17,637 $ 16,788 $ 15,197
========= ========= =========
The accompanying notes are an integral part of these financial statements.
"UNAUDITED"
Consolidated Statements of Income (Concluded)
For the Years Ended September 30, 1994, 1993 and 1992
(Thousands of Dollars Except for Per Share Data)
1994 1993 1992
---- ---- ----
Net Income Applicable to Common Stock $ 17,637 $ 16,788 $ 15,197
========= ========= =========
Average Common Shares Outstanding
During the Period 9,539,695 9,527,772 8,704,897
========= ========= =========
Income Per Average Share of
Common Stock $ 1.85 $ 1.76 $ 1.75
========= ========= =========
Dividend Per Share of Common Stock $ 1.48 $ 1.46 $ 1.44
========= ========= =========
The accompanying notes are an integral part of these financial statements.
"UNAUDITED"
Consolidated Statements of Cash Flows
For the Years Ended September 30, 1994, 1993 and 1992
(Thousands of Dollars)
1994 1993 1992
---- ---- ----
Cash Flows from Operations: $ 24,929 $ 20,729 $ 42,235
-------- -------- --------
Cash Flows from Investing Activities:
Capital expenditures (27,859) (25,531) (26,145)
Other investing activities (1,890) (9,186) (11,444)
-------- -------- --------
Net cash used in investing activities (29,749) (34,717) (37,589)
-------- -------- --------
Cash Flows from Financing Activities:
Dividends paid (14,184) (13,999) (12,609)
Issuance of common stock - 16,913 3,953
Other stock activity, net (763) (16) (12)
Issuance of long-term debt 20,000 35,100 55,000
Principal retired on long-term debt (4,653) (19,354) (44,515)
Short-term debt 4,000 (3,450) (7,350)
-------- -------- --------
Net cash provided (used) by
financing activities 4,400 15,194 (5,533)
-------- -------- --------
Increase (Decrease) in Cash and
Cash Equivalents (420) 1,206 (887)
Cash and Cash Equivalents at
Beginning of Year 1,546 340 1,227
-------- -------- --------
Cash and Cash Equivalents at
End of Year $ 1,126 $ 1,546 $ 340
======== ======== ========
The accompanying notes are an integral part of these financial statements.
"UNAUDITED"
Consolidated Statements of Cash Flows (Concluded)
For the Years Ended September 30, 1994, 1993 and 1992
(Thousands of Dollars)
1994 1993 1992
---- ---- ----
Schedule Reconciling Earnings to
Cash Flows from Continuing Operations:
Income $ 17,703 $ 16,855 $ 15,265
-------- -------- --------
Adjustments to reconcile income
to net cash:
Depreciation and amortization 16,296 13,028 11,691
Provision for uncollectible
accounts 6,582 3,469 3,247
Deferred income taxes, net 8,538 915 5,169
Undistributed affiliate earnings (868) (970) (936)
Cash distributions received from
investments 240 1,154 -
Change in assets and liabilities:
Accounts receivable (9,047) (4,340) (8,190)
Accrued utility revenue 918 (339) 72
Inventories 2,087 (7,073) (1,489)
Unrecovered/(refundable)
purchased gas costs (7,527) (8,564) 11,524
Prepaid expenses (6,728) (1,021) 1,122
Accounts payable and accrued expenses (927) 10,011 4,334
Other assets/liabilities (2,338) (2,396) 426
-------- -------- --------
Total adjustments 7,226 3,874 26,970
-------- -------- --------
Cash flows from
operations $ 24,929 $ 20,729 $ 42,235
======== ======== ========
Supplemental Disclosures of Cash Flow
Information:
Cash Paid During the Year for:
Interest $ 10,138 $ 8,794 $ 9,379
======== ======== ========
Income taxes $ 9,972 $ 9,837 $ 8,337
======== ======== ========
The accompanying notes are an integral part of these financial statements.
Consolidated Statements of Capitalization "UNAUDITED"
September 30, 1994 and 1993
(Thousands of Dollars)
1994 1993
Common Stock Equity: ---- ----
Common stock, $3.125 par value, authorized
20,000,000 shares, issued 9,542,296 shares
in 1994 and 1993, outstanding 9,539,079
shares in 1994 and 9,542,296 shares in 1993 $ 29,820 $ 29,820
Capital in excess of par value 66,657 66,915
Retained earnings 43,264 39,744
-------- --------
139,741 136,479
-------- --------
Less: Unearned compensation - restricted
stock awards (157) (157)
Treasury stock, 3,217 shares in 1994 (103) -
-------- --------
139,481 136,322
-------- --------
Preferred Stock, Not Subject to Mandatory
Redemption:
$3.125 par value, 8%, noncallable, authorized
916,952 shares in 1994 and 927,687 shares
in 1993, issued and outstanding 141,480 shares
in 1994 and 152,215 shares in 1993, entitled to
preference on liquidation at $6.25 per share 442 476
$100 par value, callable, authorized 9,999,635
shares in 1994 and 9,999,644 shares in 1993
6% Series B, issued and outstanding 4,671
shares in 1994 and 4,680 shares in 1993 467 468
-------- --------
909 944
-------- --------
Long-Term Debt:
First Mortgage Bonds -
8.8%, due 2001 14,000 16,000
9.16%, due 2004 18,000 18,000
Industrial Revenue Demand Bonds -
1986 and 1988 series,
weighted average interest rate of
2.677% in 1994 and 3.18% in 1993, due 2006 13,400 14,000
First Mortgage Notes -
10.5%, due 2010 1,058 1,084
Secured Note, 6.89%, due 2010 14,495 14,997
Secured Term Note, 8.3%, due 1994 - 900
Secured Term Note, 10.72%, due 1997 2,031 2,656
Unsecured Medium Term Notes -
6.48%, due 1997 10,000 10,000
7.61% to 7.82%, due 2002 to 2004 20,000 10,000
6.85% to 8.12%, due 2012 to 2014 30,000 25,000
8.96% to 9.1%, due 2016 to 2017 30,000 30,000
8.49%, due 2024 5,000 -
Less - Current Maturities (3,791) (4,653)
-------- --------
154,193 137,984
-------- --------
$294,583 $275,250
======== ========
The accompanying notes are an integral part of these financial statements.
"UNAUDITED"
Consolidated Statements of Common Stock Equity
For the Years Ended September 30, 1994, 1993 and 1992
(Thousands of Dollars Except for Number of Shares)
Common Stock
------------------- Capital in
Number of Par Excess of Treasury Unearned Retained
Shares Value Par Value Stock Compensation Earnings
--------- ------- ---------- -------- ------------ ---------
Balance at September 30,
1991 8,608,991 $26,906 $49,128 $ (16) $ (321) $34,232
Issuance through dividend
reinvestment and employee
benefit plans 182,315 570 3,294 - - -
Net income after preferred
dividends - - - - - 15,197
Issuance of treasury stock 750 - - 14 - -
Amortization and
adjustment of restricted
shares - - 75 - 13 -
Dividends - - - - - (12,541)
--------- ------- ------- ------ ------ --------
Balance at September 30,
1992 8,792,056 27,476 52,497 (2) (308) 36,888
Public offering 750,000 2,344 14,217 - - -
Issuance through dividend
reinvestment and employee
benefit plans 136 - 4 - - -
Net income after preferred
dividends - - - - - 16,788
Issuance of treasury stock 104 - 1 2 - -
Amortization and
adjustment of restricted
shares - - 196 - 151 -
Dividends - - - - - (13,932)
--------- ------- ------- ------ ------ --------
Balance at September 30,
1993 9,542,296 29,820 66,915 - (157) 39,744
Issuance through dividend
reinvestment and employee
benefit plans - - - - - -
Net income after preferred
dividends - - - - - 17,637
Purchase of restricted
stock awards - - - - (728)
Amortization and
adjustment of restricted
shares (3,217) - (258) (103) 728 -
Dividends - - - - - (14,117)
--------- ------- ------- ------ ------ --------
Balance at September 30,
1994 9,539,079 $29,820 $66,657 $ (103) $ (157) $43,264
========= ======= ======= ====== ====== ========
The accompanying notes are an integral part of these financial statements.
SIGNATURE
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 thereunto duly authorized.
CONNECTICUT NATURAL GAS CORPORATION
Date 11/22/94 S/ Andrew H. Johnson
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(Andrew H. Johnson)
Treasurer and Chief Accounting Officer
(On behalf of the registrant and as Chief
Accounting Officer)