THE PURPOSE OF THIS AMENDED 10-Q IS TO INCLUDE FINANCIAL INFORMATION
SCHEDULES NOT PREVIOUSLY INCLUDED
FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Quarterly Report under section 13 or 15(d)
of the Securities Exchange Act of 1934
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 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 0-14183
ENERGY WEST INCORPORATED
(Exact name of registrant as specified in its charter)
Montana 81-0141785
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1 First Avenue South, Great Falls, Mt. 59401
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code (406)-791-7500
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
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at December 31, 1995
(Common stock, $.15 par value) 2,281,407
ENERGY WEST INCORPORATED
INDEX TO FORM 10-Q
Page No.
Part I - Financial Information
Item 1 - Financial Statements
Condensed consolidated balance sheets as of
December 31, 1995 and June 30, 1995 1
Condensed consolidated statements of income -
three months and six months ended December 31, 1995 and 19942
Condensed consolidated statements of cash
flows - six months ended December 31, 1995 and 1994 3
Notes to Condensed Consolidated Financial Statements 4-8
Item 2 - Management's discussion and analysis of
financial condition and results of operations 9-14
Part II Other Information
Item 1 - Legal Proceedings 15
Item 2 - Changes in Securities 15
Item 3 - Defaults upon Senior Securities 15
Item 4 - Submission of Matters to a Vote of Security Holders 15
Item 5 - Other Information 15
Item 6 - Reports on Form 8-K 15
Signatures
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 1995
Note 1 - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the six month
period ended December 31, 1995 are not necessarily indicative of the results
that may be expected for the year ended June 30, 1996 due to seasonal factors
affecting gas utility, construction and other operations. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Energy West Incorporated (the Company) annual report on
Form 10-K for the year ended June 30, 1995.
Note 2 - Earnings Per Common and Common Equivalent Share
Earnings per common share are computed based on the weighted average number of
common shares issued and outstanding and common stock equivalents, if dilutive.
Note 3 - Principle Accounting Policies
In March 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard (SFAS) No. 121, "Accounting for the Impairment
of Long--Lived Assets and for Long-Lived Assets to be Disposed Of, "
effective for financial statements for fiscal years beginning after December
15, 1995. SFAS No. 121 requires that long-lived assets and certain
identifiable intangibles to be held and used by an entity be reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable and long-lived assets and
certain identifiable intangibles to be disposed of be reported at the lower of
carrying amount or fair value less cost to sell. SFAS No. 121 also established
the procedures for review of recoverability, and measurement of impairment if
necessary, of long-lived assets and certain identifiable intangibles to be held
and used by an entity. The financial effect of adopting the new standard are
not expected to be material to the Company's financial position or operations.
Certain reclassifications have been made to the quarterly and six month
period for fiscal 1995 consolidated financial statements to conform to the
year-end fiscal 1995 presentation.
Note 4 - Income Taxes
Under the liability method prescribed by SFAS No. 109, deferred income taxes
reflect the net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and amounts used for income tax purposes. At December 31, 1995, components of
the Company's deferred tax assets and deferred tax liabilities are as follows:
Deferred tax assets:
Allowance for doubtful accounts.................................$44,796
Unamortized Investment Tax Credit...............................175,983
Contributions in Aid of Construction............................111,313
Other nondeductible accruals....................................173,308
Total deferred tax assets...................................... 505,400
Deferred tax liabilities:
Customer Refunds Payable........................................ 369,318
Property, Plant and Equipment...................................2,697,984
Unamortized Debt Issue Costs.....................................208,731
Unamortized Environmental Study Costs........................... 92,265
Covenant Not to Compete...........................................91,162
Total deferred tax liabilities.................................3,459,460
Net deferred tax liability.......................................$2,954,060
Income tax expense consists of the following:
Current income taxes (benefits):
Federal.................................... ($221,269)
State..........................................(44,626)
Total current income taxes (benefits) .........(265,895)
Deferred income taxes (benefits):
Excess tax depreciation.........................84,425
Excess tax (book) amortization................. (9,217)
Recoverable cost of gas purchases............. 284,793
Environmental Cost Recovery ................... (9,065)
Other...........................................12,992 Total deferred income
taxes............................................ 363,928
Investment tax credit, net........................(10,531)
Total income tax benefits........................ $87,502
Note 4 - Income Taxes (continued)
Income tax expense from operations differs from the amount computed by applying
the federal statutory rate to pre-tax income for the following reasons:
Tax expense (benefit) at statutory rates - 34%...................... $88,466
State income taxes (benefit), net of federal income taxes............. 10,951
Amortization of deferred investment tax credits...................... (10,531)
Other................................................................. (1,384)
Total income taxes (benefits)........................................ $87,502
Note 5 - Commitments and Contingencies
Commitments
The Company has entered into long-term, take or pay natural gas supply
contracts which expire beginning in 1996 and ending in 2005. The contracts
generally require the Company to purchase specified minimum volumes of natural
gas at a fixed price which is subject to renegotiating every two years.
Current prices per Mcf for these contracts range from $1.28 to $1.90. Based
on current prices, the minimum take or pay obligation at December 31, 1995 for
each of the next five years and in total is as follows:
Fiscal Year
1996 2,630,414
1997 1,659,614
1998 1,460,894
1999 1,460,894
2000 1,460,894
Thereafter 5,188,606
Total $13,861,316
Natural gas purchases under these contracts for the years ended June 30, 1995,
1994 and 1993 approximated $6,203,000, $6,901,000, and $7,400,000, respectively.
Potential Acquisition - Nullified
The Company had signed a definitive purchase agreement for the acquisition of
a propane vapor system, contingent on the Company obtaining regulatory
approval for an exclusive natural gas franchise, in Jackson, Wyoming, where
this system is located. The purchase price was approximately $920,000. In
December, 1995, the Wyoming Public Service Commission granted a natural gas
franchise to a competing utility, which now serves electricity in the Jackson
Hole area, thus nullifying the purchase agreement.
Note 5 - Commitments and Contingencies (Continued)
Environmental Contingency
The Company owns property on which it operated a manufactured gas plant from
1909 to 1928. The site is currently used as a service center and to store
certain equipment and materials and supplies. The coal gasification process
utilized in the plant resulted in the production of certain by-products which
have been classified by the federal government and the state of Montana as
hazardous to their environment. After management became aware of the potential
of contamination on this site, it initiated an assessment of the property
through the assistance of a qualified consulting firm. That assessment
revealed the presence of certain hazardous material in quantities exceeding
tolerances established for such material by regulatory authorities. After
making required notifications of that condition to federal and state regulatory
authorities, a report summarizing the assessment was filed with the State of
Montana Department of Health and Environmental Science (MDHES). Subsequent to
that submittal, the Company and its consultant have worked with the MDHES to
arrive at a remediation option acceptable to the Company and MDHES. The costs
incurred by the Company to date approximate $307,600 and have been capitalized
as other deferred charges. Until further work is done regarding remediation
alternative, no further estimate of the costs of remediation can be made.
The Company received formal approval from the Montana Public Service Commission
to recover certain costs associated with the cleanup of this site. The Company
has begun recovery of costs of $182,736 incurred at June 30, 1995 through a
surcharge in billing rates effective July 1, 1995. Management intends to
request, that future costs be recovered in that same manner. Assuming the
commission continues to approve such cost recovery, the Company does not
anticipate a material affect on the Company's financial position as a result
of the remediation over a similar time period.
Note 6 - Operating Revenues and Expenses
Regulated utility and non-regulated non-utility operating revenues and
expenses were as follows:
Three Months Six Months
Ended Ended
December 31 December 31
1995 1994 1995 1994
Operating Revenues:
Regulated utilities $7,060,020 $8,363,454 $9,717,764 $11,016,070
Non-regulated operations 1,140,256 1,191,964 1,812,668 1,828,275
Gas Trading 1,440,204 981,287 2,026,974 1,402,752
$9,640,480 $10,536,705 $13,557,406 $14,247,097
Operating Expenses:
Gas Purchased:
Regulated $4,071,795 $5,405,841 $5,316,937 $6,823,174
Non-regulated 620,045 582,180 927,734 854,502
Cost of gas trading 1,271,188 897,292 1,778,298 1,234,580
$5,963,028 $6,885,313 $8,022,969 $8,912,256
Distribution, general and administrative:
Regulated $1,386,178 $1,286,344 $2,841,839 $2,575,318
Non-regulated 318,316 257,561 635,596 538,852
$1,704,494 $1,543,905 $3,477,435 $3,114,170
Maintenance:
Regulated $65,091 $59,326 $140,119 $134,660
Non-regulated 16,846 25,689 32,731 25,861
$81,937 $85,015 $172,850 $160,521
Depreciation and amortization:
Regulated $345,651 $293,094 $678,973 $587,198
Non-regulated 96,314 92,054 189,192 180,635
$441,965 $385,148 $868,165 $767,833
Taxes other than income:
Regulated $113,353 $124,812 $240,859 $240,850
Non-regulated 31,575 26,516 69,639 49,063
$144,928 $151,328 $310,498 $289,913
Income taxes:
Regulated $329,546 $372,156 $14,375 $74,090
Non-regulated 75,059 76,400 73,127 97,033
$404,605 $448,556 $87,502 $171,123
FORM 10-Q
ENERGY WEST INCORPORATED
Item 2 - Management's Discussion and Analysis of Interim Financial Statements
The following discussion reflects results of operations of the Company and its
consolidated subsidiaries for the periods indicated. The Company's utility
operations are conducted through its Great Falls division, which includes
Great Falls Gas Company, Cascade Gas Company and West Yellowstone Gas Company
in Montana, its Cody division in Cody, Wyoming and the Broken Bow division in
Payson, Arizona. The Company installed an underground natural gas system in
the town of West Yellowstone, Montana, which became operational in the Spring
of 1995.
The Company conducts certain non-utility operations through its three
wholly-owned subsidiaries: Rocky Mountain Fuels, Inc. (RMF), a distributor
of bulk propane in northwestern Wyoming, Cascade, Montana and the Payson,
Arizona areas; Vesta, Inc. (Vesta), which is engaged in oil and gas development
and gas marketing in Montana and Wyoming, and Montana Sun, Inc., which owns
one commercial property and one parcel of undeveloped land in Great Falls,
Montana.
Liquidity and Capital Resources
The Company's operating capital needs, as well as dividend payments and capital
expenditures, are generally funded through cash flow from operating activities,
short-term borrowings and liquidation of temporary cash investments.
Historically, to the extent cash flow has not been sufficient to fund capital
expenditures, the Company has made long-term borrowings or issued equity
securities to fund capital expansion projects or reduce short-term borrowings.
The Company's short-term borrowing requirements vary according to the seasonal
nature of its sales and expense activity. The Company has greater need for
short-term borrowings during periods when internally generated funds are not
sufficient to cover all capital and operating requirements, including costs of
gas purchases, financing of customer accounts receivable and capital
expenditures. In general, the Company's short-term borrowing needs for
purchases of gas inventory and capital expenditures are greatest during the
summer months, and the Company's short-term borrowing needs for financing of
customer accounts receivable are greatest during the winter months. This past
fiscal year and during this first six months of Fiscal 1996, the Company used
short-term borrowing for construction of the natural gas system in West
Yellowstone, Montana and expansion of its natural gas systems in Great Falls,
Montana, Cody, Wyoming and Payson, Arizona. Short-term borrowings utilized
for construction or property acquisitions generally are replaced by permanent
financing when it becomes economical and practical to do so. At December 31,
1995, the Company had a $10,000,000 bank line of credit, of which $9,355,000
had been borrowed. The Company increased its bank line of credit to
$10,000,000 on October 31, 1995.
The Company used net cash in operating activities for the six months ended
December 31, 1995 in the amount of approximately $4,199,000, as compared to
$1,021,000 for the six months ended December 31, 1994 and was primarily due to
timing differences related to lower rates to customers for gas purchases, while
gas purchases costs were equal or higher than last year, timing related prepaid
gas contracts at a Rocky Mountain Fuel division, pension plan deposits now made
annually instead of quarterly last year and higher payment to the Company's
incentive plan this fiscal year. Cash used in investing activities was
approximately $2,160,000 for the six months ended December 31, 1995, as
compared to $2,078,000 for the six months ended December 31, 1994. Cash
provided approximately $6,235,000 for the six months ended December 31, 1995,
as compared to approximately $3,111,700 for the six months ended December 31,
1994. The increase in cash provided by financing activities resulted from an
increase in short-term borrowings of approximately $1,855,000 and a reduction
in the repayment of short-term debt of approximately $1,365,000.
Capital expenditures of the Company are primarily for expansion and
improvement of its gas utility properties. To a lesser extent, funds are also
expended to meet the equipment needs of the Company's operating subsidiaries
and to meet the Company's administrative needs. The Company's capital
expenditures, excluding RMF's expenditures for the acquisition of propane
operations, were approximately $4.5 million in fiscal 1995 and approximately
$2.5 to $2.3 million for the previous two fiscal years. The Company expects to
incur approximately $5.5 million for capital expenditures in fiscal 1996.
As of December 31, 1995, approximately $2.2 million of that amount had been
expended.
Results of Consolidated Operations
Comparison of Second Quarter of Fiscal 1996 Ended December 31, 1995 and Fiscal
1995 Ended December 31, 1994
The Company's net income for the second quarter ended December 31, 1995 was
$651,846 compared to $801,698 for the quarter ended December 31, 1994.
The decrease in the 1996 net income was primarily due to an increase in
distribution, general, administrative and maintenance expenses and an increase
in depreciation and short-term interest costs, due to capital additions.
Utility Operations -
Utility operating revenues in the second quarter of fiscal 1996 were $7,060,020
compared to $8,363,454 for the second quarter of fiscal 1995. Gross Margin,
which is defined as operating revenues less gas purchased, was $2,988,225 for
the second quarter of fiscal 1996 compared to gross margin of $2,957,613 for
the second quarter of fiscal 1995. Gross margins increased 1% because of
higher margin from natural gas transportation sales in the Great Falls
division.
Overall revenues in the second quarter of fiscal 1996 was lower than revenues
in the second quarter of fiscal 1995, due to the warmer than normal
temperatures experienced in Wyoming and Arizona and a rate decrease in the
Great Falls division, effective July 1, 1995, ordered by the Montana Public
Service Commission.
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and federal
and state income taxes, were approximately $1,450,000 for the second quarter
of fiscal 1996 as compared to $1,346,000 for the same period in fiscal 1995.
The 8% increase in the period is generally due to normal inflationary trends
and a higher payout for the regulated operation's incentive plans for
employees.
Other Income -
Other Income in the second quarter of fiscal 1996 was approximately $94,000
as compared to $41,000 for the same period in fiscal 1995. The 129% increase
was generally due to new appliance and service sales in the West Yellowstone
District, increased appliance and service sales in Cody, Wyoming and certain
reclassifications.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $314,000 for the second quarter of fiscal 1996, as compared to
$268,000 in the comparable period in fiscal 1995. Long term debt interest
decreased slightly, however, short term interest increased primarily due to
facility expansion, which has been temporarily financed with short term debt.
Income Taxes -
The state and federal income taxes of the Company's utility divisions were
approximately $330,000 for the second quarter of fiscal 1996, as compared to
approximately $372,000 for the same period in fiscal 1995. The decrease in
income taxes was due to lower pre-tax income of the utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the three months ended December 31, 1995, RMF generated net income of
approximately $41,000 compared to net income of approximately $87,000 for the
three months ended December 31, 1994. Approximately $4,000 of RMF's reduction
in net income for the second quarter of fiscal 1996 was attributable to the
Petrogas division in Arizona, while approximately $39,000 was attributable to
the Wyo L-P Gas division in Wyoming. Missouri River Propane and Big Horn
Answering Service account for the balance, which had a loss for the quarter.
Missouri River Propane in Montana is a new bulk propane operation in the
Cascade, MT area, and Big Horn Answering Service is located in Cody, WY.
RMF's gross margins decreased for the three months ended December 31, 1995
compared to the same period last year, due primarily to competition in the areas
served by the Wyo L-P gas division in the Wyoming area, requiring a freeze in
retail propane prices, even though costs of propane increased. In addition,
higher operating expenses, due to normal inflationary trends and warmer than
normal weather in the Company's Wyoming and Arizona service areas decreased
net income.
Vesta -
For the three months ended December 31, 1995, Vesta's net income was
approximately $83,000 compared to $51,000 for the three months ended December
31, 1994, primarily due to higher margins experienced by Transenergy, Vesta's
gas marketing subsidiary.
Montana Sun, Inc. -
For the three months ended December 31, 1995, Montana Sun, Inc.'s net income
was approximately $21,000 compared to $17,000 for the three months ended
December 31, 1994, primarily due to higher interest income on working capital
invested on a short-term basis.
Results of Consolidated Operations
Comparison of Six Months Ended December 31, 1995 and Fiscal 1995 Ended
December 31, 1994
The Company's net income for the first six months ended December 31, 1995 was
$184,709 compared to $415,580 for the six months ended December 31, 1994.
The decrease in the Fiscal 1996 net income was primarily due to an increase in
distribution, general, administrative and maintenance expenses and an increase
in depreciation and short-term interest costs, due to capital additions.
Utility Operations -
Utility operating revenues in the first six months of fiscal 1996 were
$9,717,764 compared to $11,016,070 for the first six months of fiscal 1995.
Gross Margin, which is defined as operating revenues less gas purchased, was
approximately $4,400,000 for the first six months of fiscal 1996 compared to
gross margin of approximately $4,193,000 for the first six months of fiscal
1995. Gross margins increased 5% because of higher margin natural gas
transportation sales in the Great Falls and Cody divisions.
Overall revenues in the first six months of fiscal 1996 was lower than revenues
in the first six months of fiscal 1995, due to the warmer than normal
termperatures experienced in the Company's divisions in Wyoming and Arizona
and a rate decrease in the Great Falls division in Montana, effective July 1,
1995.
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and federal
and state income taxes, were approximately $2,982,000 for the first six months
of fiscal 1996 as compared to $2,710,000 for the same period in fiscal 1995.
The 10% increase in the period is generally due to normal inflationary trends,
less payroll capitalized since the completion of the West Yellowstone system
and a higher payout for the regulated operation's incentive plans for
employees.
Other Income -
Other Income in the first six months of fiscal 1996 was approximately $160,000
as compared to $97,000 for the same period in fiscal 1995. The 65% increase
was generally due to new applicance and service sales in the West Yellowstone
District, increased appliance and service sales in Cody, Wyoming and certain
reclassifications.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $539,000 for the first six months of fiscal 1996, as compared to
$498,000 in the comparable period in fiscal 1995. Long term debt interest
decreased slightly, however, short term interest increased primarily due to
facility expansion, which has been temporarily financed with short term debt.
Income Taxes -
The state and federal income taxes of the Company's utility divisions were
approximately $14,000 for the first six months of fiscal 1996, as compared to
approximately $74,000 for the same period in fiscal 1995. The decrease in
income taxes was due to lower pre-tax income of the utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the six months ended December 31, 1995, RMF generated a net loss of
approximately ($25,000) compared to net income of approximately $73,000 for the
first six months ended December 31, 1994. Approximately $60,000 of RMF's
reduction in net income for the first six months of fiscal 1996 was
attributable to the Wyo LP Gas division in Wyoming, while approximately
$25,000 was attributable to the Petrogas division in Arizona. Missouri River
Propane and Big Horn Answering Service account for the balance, which had a
loss for the six month period. Missouri River Propane in Montana is a new
bulk propane operation in the Cascade, MT area, and Big Horn Answering Service
is located in Cody, WY. RMF's gross margins decreased approximately 6% for the
six months ended December 31, 1995 compared to the same period last year, due
primarily to competition in the areas served by the Wyo L-P gas division in the
Wyoming area, requiring a freeze in retail propane prices, even though costs
of propane increased. In addition, higher operating expenses, due to normal
inflationary trends and warmer than normal weather in the Company's Wyoming and
Arizona service areas decreased net income.
Vesta -
For the six months ended December 31, 1995, Vesta's net income was
approximately $113,000 compared to $92,000 for the six months ended December 31,
1994, primarily due to higher margins experienced by Transenergy, Vesta's
gas marketing subsidiary, as a result of increased sales.
Montana Sun, Inc. -
For the six months ended December 31, 1995, Montana Sun, Inc.'s net income was
approximately $31,000 compared to $27,000 for the six months ended December 31,
1994, primarily due to higher interest income on working capital invested on
a short-term basis.
FORM 10-Q
Part II - Other Information
Item 1. Legal Proceedings - Not Applicable
Item 2. Changes in Securities - Not Applicable
Item 3. Defaults upon Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders -
Not Applicable
Item 5. Other Information - Not Applicable
Item 6. Exhibits and Reports on Form 8-K
A. There are no exhibits to this report.
B. No reports on Form 8-K have been filed during the quarter ended
December 31, 1995.
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.
/s/Larry D. Geske
_______________________________
(Larry D. Geske, President and
Chief Executive Officer)
Dated February 13, 1996
/s/ William J. Quast
__________________________________
(William J. Quast, Vice-President, Treasurer,
Controller and Assistant Secretary
I. FINANCIAL INFORMATION
Item 1. Financial Statements
FORM 10Q
ENERGY WEST INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
December 31 June 30
1995 1995
Current Assets:
Cash $383,306 $507,450
Restricted Deposit with Trustee 80,135 59,556
Accounts Receivable (net) 6,153,368 3,042,603
Natural Gas and Propane Inventory 2,323,597 1,686,704
Materials and Supplies 566,686 458,596
Prepayments and other 316,356 59,761
Refundable Income Tax Payments 256,114 241,798
Recoverable Cost of Gas Purchases 864,076 125,410
Deferred income taxes - current 179,758 81,398
Total Current Assets 11,123,396 6,263,276
Investments 12,476 12,476
Notes Receivable Due After One Year 12,501 15,984
Property, Plant and Equipment-Net 25,005,219 23,550,337
Deferred Charges 2,872,844 2,532,708
Total Assets $39,026,436 $32,374,781
CAPITALIZATION AND LIABILITIES
Capitalization and liabilities:
Current Liabilities:
Note payable to bank $9,355,000 $2,620,000
Long-term debt due within one year 377,138 365,833
Accounts Payable - Gas Purchases 1,736,414 1,535,736
Other Current and Accrued Liabilities 1,692,417 2,264,424
Total Current Liabilities 13,160,969 6,785,993
Deferred Credits 5,224,198 4,621,073
Long-term obligations 10,081,715 10,434,957
Stockholders' Equity
Preferred Stock 0 0
Common Stock (2,281,407 shares and
2,254,138 shares were outstanding at December
31, 1995 and June 30, 1995 respectiv 343,481 338,121
Capital in Excess of Par Value 2,409,598 2,117,730
Retained Earnings 7,806,475 8,076,907
To Stockholder's Equity 10,559,554 10,532,758
Total Capitalization and Liabilities $39,026,436 $32,374,781
The accompanying notes are an integral part of these condensed
financial statements.
-1-
FORM 10Q
ENERGY WEST INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
December 31 December 31
1995 1994 1995 1994
Operating revenue:
Regulated utilities $7,060,020 $8,363,454 $9,717,764 $11,016,070
Nonregulated operations 1,140,256 1,191,964 1,812,668 1,828,275
Gas trading 1,440,204 981,287 2,026,974 1,402,752
Total Revenue 9,640,480 10,536,705 13,557,406 14,247,097
Operating Expenses
Gas Purchased 4,691,840 5,988,021 6,244,671 7,677,676
Cost of gas trading 1,271,188 897,292 1,778,298 1,234,580
Distribution, general and administrati 1,786,431 1,628,920 3,650,285 3,274,691
Depreciation and Amortization 441,965 385,148 868,165 767,833
Other Taxes 144,928 151,328 310,498 289,913
Total Operating Expenses 8,336,352 9,050,709 12,851,917 13,244,693
Operating Income 1,304,128 1,485,996 705,489 1,002,404
Other Income - Net 93,562 41,093 159,786 96,687
Income Before Interest Charges & Taxes 1,397,690 1,527,089 865,275 1,099,091
Interest Charges:
Long-Term Debt 165,921 169,580 341,912 350,735
Other 175,318 107,255 251,151 161,653
Total Interest Charges 341,239 276,835 593,063 512,388
Net Income Before Income Taxes 1,056,451 1,250,254 272,212 586,703
Income Taxes 404,605 448,556 87,502 171,123
Net Income $651,846 $801,698 $184,710 $415,580
Loss Per Share of Common and
Common Equivalent Stock:
Earnings per Share $0.29 $0.36 $0.08 $0.19
Dividends per common share $0.1000 $0.0950 $0.2000 $0.1900
Weighted Average Common
Shares Outstanding 2,232,297 2,230,809 2,278,780 2,240,370
The accompanying notes are an integral part of these condensed
financial statements.
-2-
FORM 10Q
ENERGY WEST INCORPORATED
Condensed Consolidated Statements of Cash Flows
Six Months Ended
December 31
1995 1994
Operating Activities:
Net Income $184,710 $415,580
Adjustments to Reconcile Net Income to Cash Flow
Depreciation and Amortization 914,324 802,969
(Gain) Loss on Sale of Property, Plant & Equipment -3,681 -1,164
Investment Tax Credit - Net -10,531 -10,531
Deferred Income Taxes - Net 360,530 -104,842
Changes in Working Capital Amounts Other than Cash -5,644,262 -2,122,971
Net Cash Provided by (Used In) Operating Activiti -4,198,910 -1,020,959
Investing Activities:
Construction Expenditures -2,191,478 -2,207,627
Restricted Deposits 0 2,449
Collection of Long-Term Notes Receivable 3,483 12,990
Proceeds from Contributions in Aid of Construction 19,586 62,723
Proceeds from Sale of Property, Plant & Equipment 8,028 51,335
Net Cash Provided by (Used In) Investing Activ -2,160,381 -2,078,130
Financing Activities:
Proceeds from Long-Term Debt 11,305 56,601
Proceeds from Notes Payable 11,150,000 9,295,000
Repayment of Long-Term Debt -353,242 -320,000
Repayment of Short-Term Borrowings -4,415,000 -5,780,000
Proceeds from Sale of Common Stock 127,117 279,819
Dividends on Common Stock -285,033 -419,713
Net Cash Provided by (Used In) Financing Activit 6,235,147 3,111,707
Net Increase (Decrease) in Cash and Cash Equival -124,144 12,618
Cash and Cash Equivalents at Beginning of Year 507,450 512,213
Cash and Cash Equivalents at End of Period $383,306 $524,831
The accompanying notes are an integral part of these condensed
financial statements.
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