THIS CONFORMING PAPER FORMAT DOCUMENT IS BEING SUBMITTED PURSUANT TO
RULE 901(d) OF REGULATION S-T
FORM 10-Q
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 September 30, 1996
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 September 30, 1996
(Common stock, $.15 par value) 2,346,478
ENERGY WEST INCORPORATED
INDEX TO FORM 10-Q
Page No.
Part I - Financial Information
Item 1 - Financial Statements
Condensed consolidated balance sheets as of
September 30, 1996 and June 30, 1996 1
Condensed consolidated statements of income -
three months ended September 30, 1996 and 1995 2
Condensed consolidated statements of cash
flows - three months ended September 30, 1996 and 1995 3
Notes to Condensed Consolidated Financial Statements 4-9
Item 2 - Management's discussion and analysis of
financial condition and results of operations 10-13
Part II Other Information
Item 1 - Legal Proceedings 14
Item 2 - Changes in Securities 14
Item 3 - Defaults upon Senior Securities 14
Item 4 - Submission of Matters to a Vote of Security Holders 14
Item 5 - Other Information 14
Item 6 - Reports on Form 8-K 14
Signatures
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 1996
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 three month
period ended September 30, 1996 are not necessarily indicative of the
results that may be expected for the year ended June 30, 1997 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, 1996.
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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.
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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.
SFAS No. 123, Accounting for Stock-Based Compensation, was issued in
October 1995. This standard addresses the timing and measurement of
stock-based compensation expense. The Company has elected to retain the
approach of Accounting Principles Board Opinion ("APB") No. 25, Accounting
for Stock Issued to Employees (the intrinsic value method), for
recognizing stock-based expense in the consolidated FINANCIAL STATEMENTS.
The Company will adopt SFAS No. 123 in 1997 with respect to the disclosure
requirements set forth therein for companies retaining the intrinsic value
approach of APB No. 25.
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Note 4 - Gain on Sale of Assets
On June 28, 1996, one of the Company's nonregulated subsidiaries sold real
property, consisting of land and office and warehouse buildings, for
$525,000 in cash. Concurrent with the sale, the Company leased the
property back for a period of ten years at an annual rental of $51,975.
The initial ten-year term of the lease is extended for two successive
five-year periods unless the Company provides at least six months notice
prior to the end of either the initial term or the first successive five-
year term.
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Note 5 - Financial Instruments and Risk Management
During 1996, the Company was a party to gas financial swap agreements for
its regulated operations. Under these agreements, the Company is required
to pay the counterparty (an entity making a market in gas futures) a cash
settlement equal to the excess of the stated index price over an agreed
upon fixed price for gas purchases. The Company receives cash from the
counterparty when the stated index price falls below the fixed price.
These swap agreements are made to minimize exposure to gas price
fluctuations. Any cash settlements or receipts are included in gas
purchased. At June 30, 1996, the Company had one swap agreement in place
to hedge 5,000 MMBTU of its daily gas purchases through October 31, 1996.
Beginning on September 1, 1996, the Company is a party to two gas swap
agreements, for its nonregulated operations, to hedge 4,400 MMBTU of its
daily gas purchases. This contract represents approximately 92% of the
supply required for the Company's customers who have selected fixed price
service. The hedges were made to minimize the Company's exposure to price
fluctuations and to secure a known margin for the purchase and resale of
gas in marketing activities.
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Note 6 - 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 September 30,
1996, components of the Company's deferred tax assets and deferred tax
liabilities are as follows:
Deferred tax assets:
Allowance for doubtful accounts...................... $41,657
Unamortized Investment Tax Credit..................... 162,343
Contributions in Aid of Construction...................116,906
Other nondeductible accruals......................... 189,269
Total deferred tax assets.................... .....$510,175
Deferred tax liabilities:
Customer refunds payable..............................$710,335
Property, Plant and Equipment........................2,965,217
Unamortized Debt Issue Costs...........................198,087
Covenant Not to Compete.............. ..................87,980
Total deferred tax liabilities.................... 3,961,619
Net deferred tax liability............................$3,451,444
Income tax expense consists of the following:
Current income taxes (benefits):
Federal............................................ ($675,476)
State................................................(102,583)
Total current income taxes(benefits)................... (778,059)
Deferred income taxes (benefits):
Excess tax depreciation............................ 72,057
Excess tax (book) amortization.................... (4,609)
Recoverable cost of gas purchases.................... 311,080
Regulated Assets.................................... 22,120
Other............................................... 7,281
Total deferred income taxes.............................407,929
Investment tax credit, net................................(5,266)
Total income taxes (benefits)..........................($375,396)
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%...........($342,748)
State income taxes (benefit), net of federal income taxes..(34,323)
Amortization of deferred investment tax credits............ (5,266)
Other........................................................6,941
Total income taxes
(benefits)...............................................($375,396)
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Note 7 - Commitments and Contingencies
Commitments
The Company has entered into long-term, take or pay natural gas supply
contracts which expire beginning in 1997 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 $1.17 to $1.85. Based on current prices, the
minimum take or pay obligation at September 30, 1996 for each of the
next five years and in total is as follows:
Fiscal Year
1997 $1,931,088
1998 1,320,018
1999 1,099,218
2000 832,018
2001 832,018
Thereafter 1,809,672
Total $ 7,824,032
Natural gas purchases under these contracts for the years ended June 30,
1996, 1995 and 1994 approximated $5,520,000, $6,203,000, and $6,091,000,
respectively.
On July 1, 1996, the Company entered into a take or pay propane contract
which expires June 30, 1997. The contract generally requires the
Company to purchase all propane quantities produced by a propane
producer in Wyoming (approximately 182,500 gallons per month) tied to
the Billings, Montana spot price.
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 the 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 a meeting was held with a
representative of the MDHES wherein a process was agreed upon to arrive
at appropriate remediation of the site. The costs incurred by the
Company to date approximate $320,000 and have been capitalized as other
deferred charges. Until further work is done regarding remediation
alternatives, no further estimate of the costs of remediation can be
made. However, management believes that regardless of the alternative
selected, the costs incurred will not materially affect the Company's
financial position.
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 incurred at June 30, 1995
over two years through a surcharge in billing rates effective July 1,
1995. Management intends to request, that future costs be recovered
over a similar time period. The total of recoveries collected through
September 30, 1996 is $229,000.
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Note 8 - Operating Revenues and Expenses
Regulated utility and non-regulated non-utility operating revenues and
expenses were as follows:
Three Months
Ended
September 30
1996 1995
Operating Revenues:
Regulated utilities $2,877,380 $2,657,744
Non-regulated operations 1,042,755 672,412
Gas Trading 657,346 586,770
$4,577,481 $3,916,926
Operating Expenses:
Gas Purchased:
Regulated $1,429,943 $1,245,142
Non-regulated 684,020 307,689
Cost of gas trading 588,348 507,110
$2,702,311 $2,059,941
Distribution, general and administrative:
Regulated $1,546,964 $1,455,661
Non-regulated 374,720 317,280
$1,921,684 $1,772,941
Maintenance:
Regulated $77,961 $75,028
Non-regulated 23,490 15,885
$101,451 $90,913
Depreciation and amortization:
Regulated $373,783 $333,322
Non-regulated 91,358 92,878
$465,141 $426,200
Taxes other than income:
Regulated $120,346 $127,506
Non-regulated 25,617 38,064
$145,963 $165,570
Income taxes (benefit):
Regulated ($344,122) ( $315,171)
Non-regulated (31,274) (1,932)
($375,396) ($317,103)
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; Energy West Resources, Inc. (formerly
Vesta, Inc.), 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 borrowing and liquidation of
temporary cash investments. Historically, to the extent cash flow has
not been sufficient to fund capital expenditures, the Company has
borrowed short-term. To the extend short-term borrowing is used to
finance capital projects it is refinanced with long-term debt or equity
when economically feasible.
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 borrowing during periods when 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. This past fiscal
year and during this first quarter of Fiscal 1997, 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 as well as increasing
its natural gas and propane inventory. Short-term borrowing utilized
for construction or property acquisitions generally are replaced by
permanent financing when it becomes economical and practical to do so.
At September 30, 1996, the Company had an $11,000,000 bank line of
credit, of which $9,360,000 had been borrowed.
The Company used net cash in operating activities for the three months
ended September 30, 1996 in the amount of $1,684,651 as compared to
$3,122,229 for the three months ended September 30, 1995. This decrease
in cash used in operating activities was primarily due to lower working
capital requirements of approximately $1,400,000, primarily due to lower
incentives paid out this year, lower income tax deposits required this
year, lower working capital requirements for West Yellowstone expansion
and lower payments to employee benefit plans and materials and supplies,
partially offset by an increase in utility unrecovered gas costs due to
higher than anticipated gas commodity prices since the last filing and a
higher net loss than one year ago. Cash used in investing activities
was approximately $928,000 for the three months ended September 30,
1996, as compared to approximately $1,348,000 for the three months ended
September 30, 1995, primarily due to lower construction expenditures for
capital projects.. Cash provided by financing activities was
approximately $1,796,000 for the three months ended September 30, 1996,
as compared to approximately $4,174,000 for the three months ended
September 30, 1995. The decrease in cash provided by financing
activities resulted primarily from a decrease in short-term borrowing of
approximately $1,000,000 and an increase in the repayment of short-term
debt of approximately $1,300,000.
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 ompany'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 $4.6 million in
fiscal 1996 and approximately $4.7 million for fiscal 1995. During
fiscal 1996, approximately $1.3 million has been expended for the
construction of the natural gas system in West Yellowstone, Montana and
approximately $1 million had been expended for gas system expansion
projects for new subdivisions in the Broken Bow division's service area
and approximately $350,000 for additions to the office and the east
storage site of Petrogas in Payson, Arizona. Capital expenditures are
expected to be approximately $3.6 million in fiscal 1997, including
approximately $1.4 million for continued expansion in the Broken Bow
division, with the balance for maintenance and other system expansion
projects in the Great Falls and Cody divisions. As of September 30,
1996, approximately $820,000 of that amount had been expended.
Results of Consolidated Operations
Comparison of First Quarter of Fiscal 1996 Ended September 30, 1996 and
Fiscal 1995 Ended September 30, 1995
The Company's net loss for the first quarter ended September 30, 1996 was
($636,811) compared to ($467,136) for the quarter ended September 30,
1995.
The increase in the 1997 net loss was primarily due to an increase in
short-term interest costs and depreciation costs, due to capital
additions and an increase in distribution, general, administrative and
maintenance expenses, due to inflation and less salaries being
capitalized to major projects than was the case one year ago.
Utility Operations -
Utility operating revenues in the first quarter of fiscal 1997 were
approximately $2,877,000 compared to $2,658,000 for the first quarter of
fiscal 1996. Gross Margin, which is defined as operating revenues less
gas purchased, was approximately $1,447,000 for the first quarter of
fiscal 1997 compared to gross margin of approximately $1,412,000 for the
first quarter of fiscal 1996. Gross margins increased 2% because of
higher margins from natural gas sales in the Cody division due to
customer growth resulting in increased natural gas sales as well as
increased margins in West Yellowstone due to customer growth.
Overall revenues in the first quarter of fiscal 1997 was higher than
revenues in the first quarter of fiscal 1996, due to customer growth in
Montana, Wyoming and Arizona .
Operating Expenses -
Utility operating expenses, exclusive of the cost of gas purchased and
federal and state income taxes, were approximately $1,625,000 for the
first quarter of fiscal 1997 as compared to $1,531,000 for the same
period in fiscal 1996. The 6% increase in the period is generally due
to normal inflationary trends.
Interest Charges -
Interest charges allocable to the Company's utility divisions were
approximately $324,000 for the first quarter of fiscal 1997, as
compared to $225,000 in the comparable period in fiscal 1996. Long term
debt interest decreased , 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 tax benefit of the Company's utility
divisions were approximately( $344,000) for the first quarter of fiscal
1997, as compared to approximately ($315,000) for the same period in
fiscal 1996. The increase in the income tax benefit was due to a higher
pre-tax loss of the utility divisions.
Non-Regulated Operations -
Rocky Mountain Fuels -
For the three months ended September 30, 1996, RMF generated a net loss
of approximately ($91,000) compared to a net loss of approximately(
$63,000) for the three months ended September 30, 1995. Approximately
$48,000 of RMF's net loss for the first quarter of fiscal 1997 was
attributable to the Wyo L-P Gas division in Wyoming, approximately
$26,000 to the Petrogas division in Arizona, with the balance of
approximately $16,000 attributable to Missouri River Propane in
Montana. RMF's gross margins remained relatively the same for the three
months ended September 30, 1996 compared to the same period last year
however RMF experienced higher operating expenses, due to normal
inflationary trends experienced and increased use of staff, due to
customer growth, as well as higher short-term interest costs due to
expansion of plant in Montana and Wyoming, financed by short-term debt.
Energy West Resources, Inc. - (formerly Vesta, Inc.) -
For the three months ended September 30, 1996, Energy West Resources,
Inc.'s net income was approximately $26,000 compared to $29,000 for the
three months ended September 30, 1995, primarily due to lower interest
income.
Montana Sun, Inc. -
For the three months ended September 30, 1996, Montana Sun, Inc.'s net
income was approximately $10,000 compared to $10,000 for the three
months ended September 30, 1995,
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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 September 30, 1996.
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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 November 13, 1996
/s/ William J. Quast
__________________________________
(William J. Quast, Vice-President, Treasurer,
Controller and Assistant Secretary
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I. FINANCIAL INFORMATION
Item 1. Financial Statements
FORM 10Q
ENERGY WEST INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
September 30 June 30
1996 1996
Current Assets:
Cash $76,783 $893,301
Restricted Deposit with Trustee - -
Accounts Receivable (net) 3,290,953 3,486,328
Natural Gas and Propane Inventory 2,890,416 2,200,778
Materials and Supplies 578,872 543,316
Prepayments and other 823,831 602,427
Refundable Income Tax Payments 738,548 412,662
Recoverable Cost of Gas Purchases 1,756,544 953,392
Deferred income taxes - current 189,723 -
Total Current Assets 10,345,668 9,092,204
Investments - 12,476
Notes Receivable Due After One Year 8,494 9,190
Property, Plant and Equipment-Net 26,558,074 26,089,830
Deferred Charges 2,871,886 2,290,973
Total Assets $39,784,121 $37,494,673
CAPITALIZATION AND LIABILITIES
Capitalization and liabilities:
Current Liabilities:
Note payable to bank $9,360,000 $7,175,000
Long-term debt due within one year 360,743 348,044
Accounts Payable - Gas Purchases 1,226,981 1,226,508
Other Current and Accrued Liabilities 2,536,817 2,338,011
Total Current Liabilities 13,484,541 11,087,563
Deferred Credits 5,739,247 4,821,148
Long-term obligations 9,690,714 10,045,714
Stockholders' Equity
Preferred Stock $0 $0
Common Stock (2,346,47andNDres were
2,321,314 shares were outstanding at September
30, 1996 and June 30, 1996 respectively) 351,973 348,198
Capital in Excess of Par Value 2,843,250 2,635,540
Retained Earnings 7,674,397 8,556,510
To Stockholder's Equity 10,869,620 11,540,248
Total Capitalization and Liabilities $39,784,121 $37,494,673
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 and
Year-To-Date
September 30
1996 1995
Operating revenue:
Regulated utilities $2,877,380 $2,657,744
Nonregulated operations 1,042,755 672,412
Gas trading 657,346 586,770
Total Revenue 4,577,481 3,916,926
Operating Expenses
Gas Purchased 2,113,963 1,552,831
Cost of gas trading 588,348 507,110
Distribution, general and administrative 1,921,684 1,772,941
Maintenance 101,451 90,913
Depreciation and Amortization 465,141 426,200
Other Taxes 145,963 165,570
Total Operating Expenses 5,336,550 4,515,565
Operating Loss -759,069 -598,639
Other Income (Loss) - Net 85,495 66,223
Loss before interest charges and
income tax benefit -673,574 -532,416
Interest Charges:
Long-Term Debt 172,703 175,991
Other 165,930 75,833
Total Interest Charges 338,633 251,824
Loss before income tax benefit -1,012,207 -784,240
Provisio for Income tax benefit -375,396 -317,103
Net Loss -$636,811 -$467,137
Loss Per Share of Common and
Common Equivalent Stock:
Loss per share -$0.27 -$0.21
Dividends per common share $0.1050 $0.1000
Weighted Average Common
Shares Outstanding 2,335,652 2,265,050
The accompanying notes are an integral part of these condensed
financial statements.
-2-
FORM 10Q
ENERGY WEST INCORPORATED
Condensed Consolidated Statements of Cash Flows
Three Months Ended
September 30
1996 1995
Operating Activities:
Net Loss -$636,812 -$467,137
Adjustment to Reconcile Net Loss to Cash Flows:
Depreciation and Amortization 550,340 522,920
(Gain) Loss on Sale of Property, Plant & Equipment 232 0
Investment Tax Credit - Net -5,266 -5,266
Deferred Income Taxes - Net 401,975 246,159
Change in Operating Assets and Liabilities
Accounts Receivable 195,375 165,452
Gas Inventory -689,638 -712,463
Accounts Payable -24,389 -582,855
Recoverable Cost of Gas Purchases -803,152 -618,202
Prepaids -221,404 -365,430
Other Assets and Liabilities -451,913 -1,305,407
Net Cash Provided by (Used In) Operating Activities -1,684,652 -3,122,229
Investing Activities:
Construction Expenditures -960,718 -1,369,714
Collection of Long-Term Notes Receivable 696 696
Proceeds from Contributions in Aid of Construction 30,160 20,609
Proceeds from Sale of Property, Plant & Equipment 1,811 0
Net Cash Provided by (Used In) Investing Activities -928,051 -1,348,409
Financing Activities:
Proceeds from Notes Payable 5,085,000 6,165,000
Repayment of Long-Term Debt -355,000 -335,641
Repayment of Short-Term Borrowings -2,900,000 -1,635,000
Proceeds from Sale of Common Stock 124,492 127,117
Dividends on Common Stock -158,308 -147,786
Net Cash Provided by (Used In) Financing Activities 1,796,184 4,173,690
Net Increase (Decrease) in Cash and Cash Equivalent -816,519 -296,948
Cash and Cash Equivalents at Beginning of Year 893,301 507,450
Cash and Cash Equivalents at End of Period $76,782 $210,502
The accompanying notes are an integral part of these condensed
financial statements.
-3-