UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number 1-2385
THE DAYTON POWER AND LIGHT COMPANY
(Exact name of registrant as specified in its charter)
OHIO 31-0258470
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Courthouse Plaza Southwest
Dayton, Ohio 45402
(Address of principal executive offices)
(513) 224-6000
(Registrant's telephone number, including area code)
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
---- ----
The registrant meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing
this form with the reduced disclosure format.
Indicate the number of shares of the issuer's classes of common
stock, as of the latest practicable date.
Common Stock, $.01 par value 41,172,173 Shares
---------------------------- -----------------
(Title of each class) (Outstanding at March 31, 1995)
THE DAYTON POWER AND LIGHT COMPANY
INDEX
Page No.
--------
Part I - Financial Information
Item 1. Financial Statements
Consolidated Statement of Results of Operations 1
Consolidated Statement of Cash Flows 2
Consolidated Balance Sheet 3
Notes to Consolidated Financial Statements 5
Operating Statistics 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 9
Part II - Other Information 11
Signatures 12
i
CONSOLIDATED STATEMENT OF RESULTS OF OPERATIONS
The Dayton Power and Light Company
Three Months Ended
March 31
------------------
1995 1994
---- ----
--thousands--
Income
- ------
Utility service revenues ---
Electric $256,075 $250,298
Gas 97,187 118,876
Steam 2,906 3,547
--------- --------
Total utility service revenues 356,168 372,721
Interest and other income 1,545 1,357
--------- --------
Total Income 357,713 374,078
--------- --------
Expenses
- --------
Fuel used in electric and steam production 64,147 58,681
Gas purchased for resale 63,019 79,215
Operation and maintenance 51,150 60,108
Depreciation and amortization 28,059 27,900
General taxes 31,181 28,995
Interest expense 23,221 23,484
Amortization (deferral) of regulatory
assets,net 2,725 2,630
--------- --------
Total Expenses 263,502 281,013
--------- --------
Income Before Income Taxes 94,211 93,065
Income Taxes 34,887 36,847
--------- --------
Net Income 59,324 56,218
Preferred Dividends 217 2,120
--------- --------
Earnings on Common Stock $ 59,107 $ 54,098
========= ========
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
-1-
CONSOLIDATED STATEMENT OF CASH FLOWS
The Dayton Power and Light Company
Three Months Ended
March 31
------------------
1995 1994
---- ----
--thousands--
Operating Activities
- --------------------
Cash received from utility customers $344,238 $355,790
Other operating cash receipts 2,509 1,330
Cash paid for:
Fuel and purchased power (61,472) (57,443)
Purchased gas (33,621) (53,057)
Operation and maintenance labor (25,103) (25,111)
Nonlabor operating expenditures (40,770) (46,399)
Interest (net of amounts capitalized) (23,094) (23,365)
Income taxes 12,028 (4)
Property, excise and payroll taxes (49,516) (45,710)
-------- --------
Net cash provided by operating
activities 125,199 106,031
-------- --------
Investing Activities
- --------------------
Net cash used for property
expenditures and other (22,708) (17,195)
-------- --------
Financing Activities
- --------------------
Dividends paid on common and preferred
stock (33,153) (31,120)
Retirement of short-term debt - (25,000)
Retirement of long-term debt (42) (38)
-------- --------
Net cash used for financing activities (33,195) (56,158)
-------- --------
Net increase in cash and temporary cash
investments 69,296 32,678
Cash and temporary cash investments at
beginning of period 8,297 5,980
--------- --------
Cash and temporary cash investments at
end of period $ 77,593 $ 38,658
========= ========
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
-2-
CONSOLIDATED BALANCE SHEET
The Dayton Power and Light Company
At At
March 31, December 31,
1995 1994
-------- -----------
--thousands--
ASSETS
- ------
Electric property and plant $2,974,248 $2,961,563
Gas property and plant 252,172 251,751
Steam and other property and plant 38,703 38,571
Construction work in progress 69,879 68,549
---------- ----------
3,335,002 3,320,434
Less--
Accumulated depreciation and
amortization (1,066,709) (1,043,779)
---------- ----------
Net property and plant 2,268,293 2,276,655
---------- ----------
Current Assets
- --------------
Cash and temporary cash investments 77,593 8,297
Accounts receivable, less provision
for uncollectible accounts 111,478 99,785
Inventories, at average cost 72,885 83,345
Taxes applicable to subsequent years 49,772 78,289
Prepaid utility excise tax 35,856 17,928
Prepayments and other 10,669 11,627
---------- ----------
Total current assets 358,253 299,271
---------- ----------
Other Assets
- ------------
Income taxes recoverable through
future revenues 246,535 249,330
Regulatory assets (Note 1) 167,791 168,844
Other assets 158,586 152,950
---------- ----------
Total other assets 572,912 571,124
---------- ----------
Total Assets $3,199,458 $3,147,050
========== ==========
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
-3-
CONSOLIDATED BALANCE SHEET
(continued)
The Dayton Power and Light Company
At At
March 31, December 31,
1995 1994
-------- -----------
--thousands--
CAPITALIZATION AND LIABILITIES
- ------------------------------
Capitalization
- --------------
Common shareholder's equity--
Common stock $ 412 $ 412
Other paid-in capital 738,540 738,494
Earnings reinvested in the business 447,690 421,410
---------- ----------
Total common shareholder's equity 1,186,642 1,160,316
Preferred stock--
Without mandatory redemption provisions 22,851 22,851
Long-term debt 1,003,710 1,003,736
---------- ----------
Total capitalization 2,213,203 2,186,903
---------- ----------
Current Liabilities
- -------------------
Accounts payable 77,689 75,650
Current portion of first mortgage bonds 4,730 4,730
Accrued taxes 133,376 123,491
Accrued interest 20,395 20,713
Gas costs refundable 17,169 5,635
Other 22,065 26,055
---------- ----------
Total current liabilities 275,424 256,274
---------- ----------
Deferred Credits and Other
- --------------------------
Deferred taxes 536,496 530,630
Unamortized investment tax credit 81,688 81,212
Other 92,647 92,031
---------- ----------
Total deferred credits and other 710,831 703,873
---------- ----------
Total Capitalization and Liabilities $3,199,458 $3,147,050
========== ==========
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
-4-
Notes to Consolidated Financial Statements
1. Regulatory assets on the balance sheet consist of:
March 31, Dec. 31,
1995 1994
---- ----
--millions--
Phase-in $ 73.4 $ 75.9
Demand-Side Management 34.1 31.9
Deferred interest - Zimmer 60.3 61.0
------ ------
Total $167.8 $168.8
====== ======
2. Statement of Cash Flow Reconciliation
Reconciliation of Net Income to Net Cash Provided by
Operating Activities:
Three Months Ended
March 31
1995 1994
---- ----
--millions--
Net Income $ 59.3 $ 56.2
Adjustments for non-cash items:
Depreciation and amortization 28.1 27.9
Deferred income taxes 5.0 (4.0)
Taxes applicable to subsequent years 28.6 26.1
Amortization (deferral) of regulatory
assets, net 2.7 2.6
Changes in Working Capital:
Accounts receivable and unbilled
revenue (11.7) (13.9)
Accounts payable 6.0 (23.0)
Other 14.1 31.5
Other operating activities (6.9) 2.6
------ ------
Net cash provided by operating
activities $125.2 $106.0
====== ======
3. Reclassifications have been made in certain prior years'
amounts to conform to the current reporting presentation of the
Company.
-5-
4. The consolidated financial statements in this report have
been prepared by the Company, without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. These consolidated
financial statements should be read in conjunction with the
consolidated financial statements and notes thereto in the
Company's 1994 Annual Report on Form 10-K.
The information included in this Form 10-Q reflects all
adjustments which are, in the opinion of management, necessary
for a fair statement of the results of operations for the periods
presented. Any adjustments are of a normal recurring nature.
-6-
OPERATING STATISTICS
The Dayton Power and Light Company
Three Months Ended
March 31
------------------
1995 1994
---- ----
Electric
- --------
Sales (millions of kWh) --
Residential 1,346 1,426
Commercial 772 749
Industrial 1,096 1,039
Other 1,020 544
------- -------
Total 4,234 3,758
Revenues (thousands of dollars)--
Residential 110,309 115,575
Commercial 53,837 53,005
Industrial 56,045 55,170
Other 35,885 26,548
------- -------
Total 256,076 250,298
Other Electric Statistics--
Average price per kWh--retail and
wholesale customers (cents) 5.99 6.60
Fuel cost per net kWh generated (cents) 1.34 1.47
Electric customers at end of period 471,596 465,934
Average kWh use per residential customer 3,194 3,417
Peak demand--maximum one hour use (mw),
(net) 2,508 2,747
-7-
OPERATING STATISTICS
(continued)
The Dayton Power and Light Company
Three Months Ended
March 31
------------------
1995 1994
---- ----
Gas
- ---
Sales (millions of mcf) --
Residential 12,771 14,753
Commercial 3,545 4,284
Industrial 1,225 1,894
Other 1,196 1,415
Transportation gas delivered 5,453 5,177
------- -------
Total 24,190 27,523
Revenues (thousands of dollars) --
Residential 65,472 79,004
Commercial 17,344 21,905
Industrial 5,839 8,797
Other 8,532 9,170
------- -------
Total 97,187 118,876
Other Gas Statistics --
Average price per mcf--retail customers
(dollars) 5.03 5.21
Gas customers at end of period 291,315 287,640
Degree Days (based on calendar month) --
Heating 2,831 3,194
Cooling 0 0
-8-
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The Company's earnings for the first quarter of 1995
increased $5.0 million compared to the first quarter of 1994.
Successful efforts in the areas of cost containment, productivity
and efficiency contributed to the first quarter financial
results. Mild winter weather kept overall retail electric sales
flat, but sales to business customers continued to grow, up 4%
over the first quarter of 1994. This is strong evidence of the
continuing economic expansion in West Central Ohio.
An analysis of the financial condition and results of
operation for the first quarter ended March 31, 1995 and 1994 is
discussed below.
Financial Condition
- -------------------
Construction plans are subject to continuing review and are
expected to be revised in light of changes in financial and
economic conditions, load forecasts, legislative and regulatory
developments and changing environmental standards, among other
factors. The Company's ability to complete its capital projects
and the reliability of future service will be affected by its
financial condition, the availability of external funds at
reasonable cost and adequate and timely rate increases.
As of March 31, 1995, the Company's cash and temporary cash
investment balance was $77.6 million.
The Company has available to it $97 million in short-term
informal lines of credit. As of March 31, 1995, the Company had
no short-term debt outstanding. DPL Inc. and its subsidiaries
have $200 million available through a Revolving Credit Agreement.
As of March 31, 1995, DPL Inc. had no outstanding borrowings
under this Credit Agreement. The Company has authority from the
PUCO to issue short term debt up to $200 million with a maximum
debt limit of $300 million including loans from DPL Inc. under
the terms of the Credit Agreement.
The Company anticipates that it has sufficient capacity to
issue First Mortgage Bonds to satisfy its requirements in
connection with the financing of its construction and refinancing
programs during the five year period 1995-1999.
-9-
Results of Operations
- ---------------------
Electric revenues increased by $5.8 million for the first
quarter of 1995. Sales to other public utilities increased
revenues by $8.3 million over the first quarter of 1994, which
offset lower residential revenues resulting from mild winter
temperatures. Revenues from business customers increased by
$1.7 million reflecting good economic conditions in the area.
Gas revenues and gas purchased for resale decreased
$21.7 million and $16.2 million, respectively, from the
corresponding quarter last year. The decrease reflects a decline
of 12% in gas sales due primarily to mild winter temperatures.
Operation and maintenance expense decreased $9.0 million in
the first quarter of 1995 as compared to 1994. This variance was
due to decreased benefits and claims costs as well as a company-
wide cost reduction effort.
General taxes increased $2.2 million from the first quarter
of 1994. This increase includes higher property taxes resulting
from increased tax rates and increased public utility excise tax.
Preferred stock dividends decreased $1.9 million from the
same period last year due to redemptions of several series of
stock in 1994.
-10-
Part II. Other Information
---------------------------
Item 5. Other Information.
Rate Regulations and Government Legislation
- -------------------------------------------
On March 29, 1995, the Federal Energy Regulatory Commission
("FERC") issued a Notice of Proposed Rulemaking ("NOPR") that
seeks comments on FERC's initiative to create a more competitive
wholesale electric power market. In this NOPR, FERC announced
its intention to require all electric utilities that own or
control transmission facilities to file open access transmission
service tariffs. Open access transmission tariffs provide third
parties with non-discriminatory transmission service comparable
to what the utility provides itself. A final order on this
rulemaking is anticipated by December 1995.
Item 6. Exhibits and Reports on Form 8-K.
(b) Reports on Form 8-K
-------------------
No reports on Form 8-K were filed by the Company during the
quarter ended March 31, 1995.
-11-
SIGNATURES
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.
THE DAYTON POWER AND LIGHT COMPANY
----------------------------------
(Registrant)
Date May 9, 1995 /s/ Paul R. Anderson
----------- ----------------------------------
Paul R. Anderson
Controller
(Principal Accounting Officer)
Date May 9, 1995 /s/ Thomas M. Jenkins
----------- ----------------------------------
Thomas M. Jenkins
Group Vice President and Treasurer
(Principal Financial Officer)
-12-