EXHIBIT 99
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------------ ------------------------------
1999 1998 1999 1998
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Gas operating revenues $ 220,176 $ 231,988 $ 791,155 $ 799,597
Net cost of gas sold 75,595 83,595 330,031 329,849
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Operating margin 144,581 148,393 461,124 469,748
Operations and maintenance expenses 57,693 55,376 221,258 209,172
Depreciation, amortization, and general taxes 28,798 28,822 115,864 111,877
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Operating income 58,090 64,195 124,002 148,699
Net interest deductions 16,877 15,478 61,597 62,284
Preferred securities distribution 1,369 1,369 5,475 5,475
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Pretax utility income 39,844 47,348 56,930 80,940
Utility income tax expense 14,024 20,722 20,398 33,464
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Net utility income 25,820 26,626 36,532 47,476
Other income (expense), net (1) 2,268 (2,433) (1,059) (2,646)
------------- -------------- ------------- --------------
Contribution to net income - gas operations 28,088 24,193 35,473 44,830
Contribution to net income - construction services 740 850 3,837 2,707
============= ============== ============= ==============
Net income $ 28,828 $ 25,043 $ 39,310 $ 47,537
============= ============== ============= ==============
Earnings per share - gas operations $ 0.91 $ 0.80 $ 1.16 $ 1.57
Earnings per share - construction services 0.02 0.03 0.12 0.09
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Basic earnings per share $ 0.93 $ 0.83 $ 1.28 $ 1.66
============= ============== ============= ==============
Diluted earnings per share $ 0.93 $ 0.82 $ 1.27 $ 1.65
============= ============== ============= ==============
Average outstanding common shares 30,894 30,339 30,690 28,611
Average shares outstanding (assuming dilution) 31,151 30,591 30,965 28,815
The summary statements of income have been prepared by Southwest Gas Corporation (the Company) using the equity method of
accounting for its construction services subsidiary. This presentation is not in accordance with generally accepted accounting
principles (GAAP). However, it produces the same net income as the consolidated financial statements and, in management's opinion,
is a fair representation of the operations and contributions to net income of the Company's operating segments.
(1) Merger-related costs, net of tax, were $2,531,000 in 1999 and $666,000 in 1998.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
YEAR ENDED DECEMBER 31,
-----------------------------------------------
1999 1998 1997
- -----------------------------------------------------------------------------------------------------------
Gas operating revenues $ 791,155 $ 799,597 $ 614,665
Net cost of gas sold 330,031 329,849 209,338
- -----------------------------------------------------------------------------------------------------------
Operating margin 461,124 469,748 405,327
Operations and maintenance expenses 221,258 209,172 201,159
Depreciation, amortization, and general taxes 115,864 111,877 103,921
- -----------------------------------------------------------------------------------------------------------
Operating income 124,002 148,699 100,247
Net interest deductions 61,597 62,284 61,751
Preferred securities distribution 5,475 5,475 5,475
- -----------------------------------------------------------------------------------------------------------
Pretax utility income 56,930 80,940 33,021
Utility income tax expense 20,398 33,464 8,922
- -----------------------------------------------------------------------------------------------------------
Net utility income 36,532 47,476 24,099
Other income (expense), net* (1,059) (2,646) (8,274)
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Contribution to net income - gas operations 35,473 44,830 15,825
Contribution to net income - construction services 3,837 2,707 644
- -----------------------------------------------------------------------------------------------------------
Net income $ 39,310 $ 47,537 $ 16,469
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Earnings per share - gas operations $ 1.16 $ 1.57 $ 0.59
Earnings per share - construction services 0.12 0.09 0.02
- -----------------------------------------------------------------------------------------------------------
Basic earnings per share $ 1.28 $ 1.66 $ 0.61
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Diluted earnings per share $ 1.27 $ 1.65 $ 0.61
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Average outstanding common shares 30,690 28,611 27,069
Average shares outstanding (assuming dilution) 30,965 28,815 27,193
* Merger-related costs, net of tax, were $2,531,000 in 1999, $666,000 in 1998, and $0 in 1997.
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT DECEMBER 31, 1999
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,544,216
Construction work in progress 36,886
--------------
Net utility plant 1,581,102
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 30,083
Other 44,918
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Total other property and investments 75,001
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CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 12,265
Receivables - less reserve of $1,730 for uncollectibles 70,193
Accrued utility revenue 56,373
Deferred purchased gas costs 9,051
Other 36,035
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Total current and accrued assets 183,917
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DEFERRED DEBITS
Unamortized debt expense 19,438
Other deferred debits 24,354
--------------
Total deferred debits 43,792
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TOTAL ASSETS $ 1,883,812
==============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 30,985 shares outstanding $ 471,877
Retained earnings 33,548
--------------
Total common stockholders' equity 505,425 35.8 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 4.3
Long-term debt - NOTE 2 845,623 59.9
-------------- -----------
Total capitalization 1,411,048 100.0 %
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CURRENT AND ACCRUED LIABILITIES
Notes payable 61,000
Accounts payable 60,684
Customer deposits 27,408
Taxes accrued (including income taxes) 40,969
Other 54,419
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Total current and accrued liabilities 244,480
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DEFERRED CREDITS
Deferred investment tax credits 16,403
Deferred income taxes 159,700
Other 52,181
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Total deferred credits 228,284
--------------
TOTAL CAPITALIZATION AND LIABILITIES $ 1,883,812
==============
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1999
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 39,310
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 88,254
Change in receivables and payables 3,769
Change in gas cost related balancing items 45,765
Change in accrued taxes 7,268
Change in deferred taxes (20,537)
Allowance for funds used during construction (2,270)
Other 1,194
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Net cash provided by operating activities 162,753
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (207,773)
Other 4,759
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Net cash used in investing activities (203,014)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 14,997
Dividends paid (25,164)
Change in notes payable 9,000
Long-term debt issuances, net 40,341
-------------
Net cash provided by financing activities 39,174
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Change in cash and temporary cash investments (1,087)
Cash at beginning of period 13,352
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Cash at end of period $ 12,265
=============
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 59,833
Income taxes, net of refunds $ 29,518
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
(In thousands)
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION:
The summary financial statements have been prepared by Southwest Gas
Corporation (the Company) using the equity method of accounting for its
construction services subsidiary. This presentation is not in accordance
with generally accepted accounting principles (GAAP), and certain
information and footnote disclosures normally included in financial
statements prepared in accordance with GAAP have been omitted. The summary
financial statement presentation in this report produces the same net
income as the consolidated financial statements and, in management's
opinion, is a fair representation of the operations and contributions to
net income of the Company's operating segments.
NOTE 2 - LONG-TERM DEBT:
Revolving credit facility, variable rate $ 200,000
Debentures and notes:
Debentures, 9.75% series F, due 2002 100,000
Debentures, 7.50% series, due 2006 75,000
Debentures, 8% series, due 2026 75,000
Medium-term notes, 7.59% series, due 2017 25,000
Medium-term notes, 7.78% series, due 2022 25,000
Medium-term notes, 7.92% series, due 2027 25,000
Medium-term notes, 6.89% series, due 2007 17,500
Medium-term notes, 6.76% series, due 2027 7,500
Medium-term notes, 6.27% series, due 2008 25,000
Industrial development revenue bonds:
7.30% 1992 Series A, due 2027 30,000
7.50% 1992 Series B, due 2032 100,000
6.50% 1993 Series A, due 2033 75,000
Variable-rate bonds, 1993 Series A, due 2028 - net of funds held in trust 37,232
6.10% 1999 Series A, due 2038 12,410
Variable-rate bonds, 1999 Taxable Series B, due 2038 22,590
Unamortized discount on long-term debt (6,609)
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TOTAL LONG-TERM DEBT $ 845,623
==============
ESTIMATED CURRENT MATURITIES $ -
==============
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
DECEMBER 31, 1999
FINANCIAL STATISTICS
Market value to book value per share at year end 141%
Twelve months to date return on equity -- total company 8.0%
-- gas segment 7.5%
Common stock dividend yield at year end 3.6%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
- ------------------------------- --------------- -------------- ---------------
Arizona (1) $ 541,104 9.38 % 11.25 %
Southern Nevada (1) 237,165 9.50 11.55
Northern Nevada (1) 63,986 9.67 11.55
Southern California 69,486 9.94 11.35
Northern California 23,484 10.02 11.35
Paiute Pipeline Company (1) 72,054 9.69 11.60
(1) Estimated amounts based on rate case settlements.
SYSTEM THROUGHPUT BY CUSTOMER CLASS
YEAR ENDED DECEMBER 31,
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(In dekatherms) 1999 1998 1997
- ----------------------------------------------------------------------------------------------------------------------------
Residential 55,450,748 58,694,167 50,554,880
Small commercial 26,603,025 26,993,684 24,660,541
Large commercial 6,256,564 7,932,567 7,654,182
Industrial / Other 15,430,564 16,705,989 8,603,601
Transportation 118,685,947 100,137,195 103,085,729
- ----------------------------------------------------------------------------------------------------------------------------
Total system throughput 222,426,848 210,463,602 194,558,933
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YEAR ENDED DECEMBER 31,
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HEATING DEGREE DAY COMPARISON 1999 1998 1997
- ----------------------------------------------------------------------------------------------------------------------------
Actual 1,928 2,309 1,960
Ten-year average 2,031 2,032 2,007
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