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 28, 1995
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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 1995 Earnings
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CTG ANNOUNCES YEAR-END EARNINGS
HARTFORD, Connecticut, November 28, 1995 --- Connecticut Natural Gas
Corporation (NYSE:CTG) today reported consolidated net income for the
fiscal year ending September 30, 1995 of $17,019,000, compared to
$17,703,000, for fiscal 1994. Consolidated earnings per share were $1.71,
compared with $1.85 in fiscal 1994.
Victor H. Frauenhofer, Chairman, President and Chief Executive Officer
said, "The primary reason for the decline in earnings per share was due to
the fact that fiscal year 1995 was 14% warmer than fiscal 1994, which
resulted in a loss of $.52 per share of earnings. This loss was partially
offset by higher margins on interruptible sales and increased earnings from
the Company's nonregulated subsidiary, Energy Networks, Inc., which
provides district heating and cooling to most large buildings in the
downtown Hartford and Capitol areas. Subsidiary earnings were increased
by $.24 per share due to the settlement of the Steam Purchase Agreement
with Hacogen Cogeneration. Offsetting this was a one-time charge to ENI
Transmission of $.05 per share for the anticipated settlement costs for
Iroquois Gas Transmission System, regarding the ongoing federal suit."
Mr. Frauenhofer continued, "The Company has continued its strong commitment
to cost containment, including reductions in operating and maintenance
expenses, depreciation, other taxes and interest charges which contributed
$.12 per share to earnings."
more...
Connecticut Natural Gas Corporation - News Release
November 28, 1995
Page 2
Mr. Frauenhofer concluded, "The Company's total throughput of natural gas
increased by 4.7 BCF to 53.9 BCF. The increase was caused primarily by an
increase in off-system sales of 7.1 BCF, offset by a decrease in firm sales
of 2.9 BCF, due to warmer weather. Interruptible sales and transportation
services both registered small increases."
Connecticut Natural Gas Corporation is the largest distributor of natural
gas in Connecticut and currently serves approximately 140,000 customers in
22 municipalities in the Greater Hartford region and Greenwich.
CONNECTICUT NATURAL GAS CORPORATION
Period Ending September 30, 1995
(dollars in thousands except per share data)
Twelve Months Ended Three Months Ended
September 30, September 30,
1995 1994 1995 1994
Consolidated Gross Revenues $ 275,185 $ 290,662 $ 42,967 $ 37,954
Consolidated Net Income/(Loss) $ 17,019 $ 17,703 $ (1,364) $ (3,105)
Balance Available
for Common Stock $ 16,957 $ 17,637 $ (1,380) $ (3,122)
Consolidated Net Income/(Loss)
per Common Share $ 1.71 $ 1.85 $ (.14) $ (.33)
Average Common
Shares Outstanding 9,926,980 9,539,695 9,931,279 9,542,296
Dividends Per Common Share $ 1.48 $ 1.48 $ .37 $ .37
(b) Unaudited financial statements for the fiscal year ending
September 30, 1995
"UNAUDITED"
Consolidated Balance Sheets
September 30, 1995 and 1994
(Thousands of Dollars)
Assets
1995 1994
---- ----
Plant and Equipment:
Plant in service $ 451,843 $ 428,366
Construction work in progress 3,564 2,762
--------- ---------
455,407 431,128
Less-Allowance for depreciation 133,314 119,392
--------- ---------
322,093 311,736
--------- ---------
Investments, at equity 5,743 5,147
--------- ---------
Current Assets:
Cash and cash equivalents 3,042 1,126
Accounts receivable (less allowance for
doubtful accounts of $4,590 in 1995
and $4,017 in 1994) 26,914 24,376
Accrued utility revenue 5,093 3,714
Inventories 14,511 18,326
Prepaid expenses 6,095 10,107
Recoverable purchased gas costs - 3,769
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Total Current Assets 55,655 61,418
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Other Assets:
Unrecovered future taxes 51,634 46,759
Recoverable transition costs 4,636 6,925
Other assets 25,278 26,569
--------- ---------
Total Other Assets 81,548 80,253
--------- ---------
$ 465,039 $ 458,554
========= =========
The accompanying notes are an integral part of these consolidated financial statements.
"UNAUDITED"
Consolidated Balance Sheets (Concluded)
September 30, 1995 and 1994
(Thousands of Dollars)
Capitalization and Liabilities
1995 1994
---- ----
Capitalization (see accompanying statements):
Common stock equity $ 150,111 $ 139,481
Preferred stock, not subject to
mandatory redemption 904 909
Long-term debt 150,390 154,193
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301,405 294,583
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Current Liabilities:
Current portion of long-term debt 3,921 3,791
Notes payable and commercial paper 4,200 18,500
Accounts payable and accrued expenses 46,341 37,906
Refundable purchased gas costs 2,300 -
Accrued taxes 2,021 3,543
Accrued interest 4,518 4,236
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Total Current Liabilities 63,301 67,976
--------- ---------
Deferred Credits:
Deferred income taxes 37,985 36,916
Unfunded deferred income taxes 51,634 46,759
Investment tax credits 3,423 3,644
Refundable taxes 3,365 3,275
Accrued transition costs 0 1,925
Other 3,926 3,476
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Total Deferred Credits 100,333 95,995
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Commitments and Contingencies
--------- ---------
$ 465,039 $ 458,554
========= =========
The accompanying notes are an integral part of these consolidated financial statements.
"UNAUDITED"
Consolidated Statements of Income
For the Years Ended September 30, 1995, 1994 and 1993
(Thousands of Dollars Except for Per Share Data)
1995 1994 1993
---- ---- ----
Operating Revenues $ 275,185 $ 290,662 $ 265,337
Less: Cost of energy 147,764 155,547 145,904
State gross revenues tax 11,296 11,863 11,095
--------- --------- ---------
Operating Margin 116,125 123,252 108,338
--------- --------- ---------
Operating Expenses:
Operations 45,311 48,361 39,709
Maintenance 7,917 7,683 7,469
Depreciation and amortization 16,977 15,507 12,649
Income taxes 9,430 13,353 13,438
Local property taxes 5,148 5,259 5,090
Other taxes 2,183 2,177 1,797
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86,966 92,340 80,152
--------- --------- ---------
Operating Income 29,159 30,912 28,186
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Other Income/(Deductions),
net of income taxes:
Allowance for equity funds used
during construction 106 21 607
Equity in partnership earnings 1,032 868 970
Other income/(deductions) (872) (1,007) (614)
Nonrecurring items 3,624 - -
Income taxes (1,839) (113) (552)
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2,051 (231) 411
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Interest and Debt Expense, net:
Interest on long-term debt 12,158 10,997 9,985
Other interest 1,650 1,573 1,782
Allowance for borrowed funds used
during construction (70) (14) (404)
Amortization of debt expense 453 422 379
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14,191 12,978 11,742
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Net Income 17,019 17,703 16,855
Less-Dividends on Preferred Stock 62 66 67
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Net Income Applicable to Common Stock $ 16,957 $ 17,637 $ 16,788
========= ========= =========
The accompanying notes are an integral part of these consolidated financial statements.
"UNAUDITED"
Consolidated Statements of Income (Concluded)
For the Years Ended September 30, 1995, 1994 and 1993
(Thousands of Dollars Except for Per Share Data)
1995 1994 1993
---- ---- ----
Net Income Applicable to Common Stock $ 16,957 $ 17,637 $ 16,788
========= ========= =========
Average Common Shares Outstanding
During the Period 9,926,980 9,539,695 9,527,772
========= ========= =========
Income Per Average Share of
Common Stock $ 1.71 $ 1.85 $ 1.76
========= ========= =========
Dividend Per Share of Common Stock $ 1.48 $ 1.48 $ 1.46
========= ========= =========
The accompanying notes are an integral part of these consolidated financial statements.
"UNAUDITED"
Consolidated Statements of Cash Flows
For the Years Ended September 30, 1995, 1994 and 1993
(Thousands of Dollars)
1995 1994 1993
---- ---- ----
Cash Flows from Operations: $ 54,262 $ 24,929 $ 20,729
-------- -------- --------
Cash Flows from Investing Activities:
Capital expenditures (26,839) (27,859) (25,531)
Other investing activities (1,242) (1,890) (9,186)
-------- -------- --------
Net cash used in investing activities (28,081) (29,749) (34,717)
-------- -------- --------
Cash Flows from Financing Activities:
Dividends paid (14,761) (14,184) (13,999)
Issuance of common stock 8,474 - 16,913
Other stock activity, net (5) (763) (16)
Issuance of long-term debt - 20,000 35,100
Principal retired on long-term debt (3,673) (4,653) (19,354)
Short-term debt (14,300) 4,000 (3,450)
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Net cash provided (used) by
financing activities (24,265) 4,400 15,194
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Increase (Decrease) in Cash and
Cash Equivalents 1,916 (420) 1,206
Cash and Cash Equivalents at
Beginning of Year 1,126 1,546 340
-------- -------- --------
Cash and Cash Equivalents at
End of Year $ 3,042 $ 1,126 $ 1,546
======== ======== ========
The accompanying notes are an integral part of these consolidated financial statements.
"UNAUDITED"
Consolidated Statements of Cash Flows (Concluded)
For the Years Ended September 30, 1995, 1994 and 1993
(Thousands of Dollars)
1995 1994 1993
---- ---- ----
Schedule Reconciling Earnings to
Cash Flows from Continuing Operations:
Income $ 17,019 $ 17,703 $ 16,855
-------- -------- --------
Adjustments to reconcile income
to net cash:
Depreciation and amortization 17,216 16,296 13,028
Provision for uncollectible
accounts 4,886 6,582 3,469
Deferred income taxes, net 897 8,538 915
Equity in partnership earnings (1,032) (868) (970)
Cash distributions received from
investments 168 240 1,154
Changes in assets and liabilities:
Accounts receivable (5,571) (9,047) (4,340)
Accrued utility revenue (1,379) 918 (339)
Inventories 3,815 2,087 (7,073)
Purchased gas costs 6,069 (7,527) (8,564)
Prepaid expenses 4,012 (6,728) (1,021)
Accounts payable and accrued expenses 7,671 (927) 10,011
Other assets/liabilities 491 (2,338) (2,396)
-------- -------- --------
Total adjustments 37,243 7,226 3,874
-------- -------- --------
Cash flows from
operations $ 54,262 $ 24,929 $ 20,729
======== ======== ========
Supplemental Disclosures of Cash Flow
Information:
Cash Paid During the Year for:
Interest $ 11,330 $ 10,138 $ 8,794
======== ======== ========
Income taxes $ 8,967 $ 9,972 $ 9,837
======== ======== ========
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Capitalization "UNAUDITED"
September 30, 1995 and 1994
(Thousands of Dollars)
1995 1994
---- ----
Common Stock Equity:
Common stock, $3.125 par value, authorized
20,000,000 shares, issued 9,934,496 shares
in 1995 and 9,542,296 shares in 1994,
outstanding 9,931,279 shares in 1995 and
9,539,079 shares in 1994 $ 31,045 $ 29,820
Capital in excess of par value 74,018 66,657
Retained earnings 45,522 43,264
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150,585 139,741
-------- --------
Less: Unearned compensation - restricted
stock awards (371) (157)
Treasury stock, 3,217 shares in 1995 and 1994 (103) (103)
-------- --------
150,111 139,481
-------- --------
Preferred Stock, Not Subject to Mandatory
Redemption:
$3.125 par value, 8%, noncallable, authorized
915,204 shares in 1995 and 916,952 shares
in 1994, issued and outstanding 139,732 shares
in 1995 and 141,480 shares in 1994, entitled to
preference on liquidation at $6.25 per share 437 442
$100 par value, callable, authorized 9,999,634
shares in 1995 and 9,999,635 shares in 1994
6% Series B, issued and outstanding 4,670
shares in 1995 and 4,671 shares in 1994 467 467
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904 909
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Long-Term Debt:
First Mortgage Bonds -
8.8%, due 2001 12,000 14,000
9.16%, due 2004 18,000 18,000
Industrial Revenue Demand Bonds -
1986 and 1988 series,
weighted average interest rate of
3.857% in 1995 and 2.677% in 1994, due 2006 12,800 13,400
First Mortgage Notes -
10.5%, due 2010 1,030 1,058
Secured Note, 6.89%, due 2010 14,075 14,495
Secured Term Note, 10.72%, due 1997 1,406 2,031
Unsecured Medium Term Notes -
6.48%, due 1997 10,000 10,000
7.61% to 7.82%, due 2002 to 2004 20,000 20,000
6.85% to 8.12%, due 2012 to 2014 30,000 30,000
8.96% to 9.1%, due 2016 to 2017 30,000 30,000
8.49%, due 2024 5,000 5,000
Less - Current Maturities (3,921) (3,791)
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150,390 154,193
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$301,405 $294,583
======== ========
The accompanying notes are an integral part of these consolidated financial statements.
"UNAUDITED"
Consolidated Statements of Common Stock Equity
For the Years Ended September 30, 1995, 1994 and 1993
(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,
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
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
Public offering 392,200 1,225 7,249 - - -
Net income after preferred
dividends - - - - - 16,957
Amortization and
adjustment of restricted
shares - - 112 - (214) -
Dividends - - - - - (14,699)
--------- ------- ------- ------ ------ --------
Balance at September 30,
1995 9,931,279 $31,045 $74,018 $ (103) $ (371) $45,522
========= ======= ======= ====== ====== ========
The accompanying notes are an integral part of these consolidated 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 11/28/95 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)