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UNITED STATES
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) April 26, 2001
SOUTHWEST GAS CORPORATION
(Exact name of registrant as specified in its charter)
California 1-7850 88-0085720
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
5241 Spring Mountain Road
Post Office Box 98510
Las Vegas, Nevada 89193-8510
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702) 876-7237
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Item 9. Regulation FD Disclosure
On April 26, 2001, Southwest Gas Corporation (the Company) released summary
financial information to the general public, including the investment community,
regarding the Company's operating performance and financial position for the
quarter and year ended March 31, 2001. The financial information released is
included herein. The following information is summary in nature and should not
be considered complete financial statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31 , MARCH 31,
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2001 2000 2001 2000
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Gas operating revenues $ 447,220 $ 267,079 $ 1,050,852 $ 779,124
Net cost of gas sold 279,707 123,504 550,914 317,649
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Operating margin 167,513 143,575 499,938 461,475
Operations and maintenance expenses 60,210 57,327 234,058 225,019
Depreciation, amortization, and general taxes 34,363 31,089 127,782 117,830
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Operating income 72,940 55,159 138,098 118,626
Net interest deductions 19,775 16,387 72,280 63,352
Preferred securities distribution 1,369 1,369 5,475 5,475
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Pretax utility income 51,796 37,403 60,343 49,799
Utility income tax 19,783 13,369 20,028 16,382
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Net utility income 32,013 24,034 40,315 33,417
Other income (expense), net 1,316 330 2,558 (645)
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Contribution to net income - gas operations 33,329 24,364 42,873 32,772
Contribution to net income - construction services 480 834 4,049 3,470
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Net income $ 33,809 $ 25,198 $ 46,922 $ 36,242
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Earnings per share - gas operations $ 1.05 $ 0.78 $ 1.36 $ 1.06
Earnings per share - construction services 0.01 0.03 0.13 0.11
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Basic earnings per share $ 1.06 $ 0.81 $ 1.49 $ 1.17
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Diluted earnings per share $ 1.05 $ 0.80 $ 1.48 $ 1.16
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Average outstanding common shares 31,821 31,140 31,540 30,934
Average shares outstanding (assuming dilution) 32,069 31,302 31,765 31,186
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT MARCH 31, 2001
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,670,609
Construction work in progress 43,143
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Net utility plant 1,713,752
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OTHER PROPERTY AND INVESTMENTS
Investment in construction services subsidiary 32,716
Other 49,141
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Total other property and investments 81,857
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CURRENT AND ACCRUED ASSETS
Cash and cash equivalents 40,292
Receivables - less reserve of $2,651 for uncollectibles 139,513
Accrued utility revenue 32,973
Deferred purchased gas costs 158,547
Other 28,929
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Total current and accrued assets 400,254
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DEFERRED DEBITS
Unamortized debt expense 18,340
Other deferred debits 26,888
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Total deferred debits 45,228
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TOTAL ASSETS $ 2,241,091
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CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 31,893 shares outstanding $ 490,438
Retained earnings 73,244
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Total common stockholders' equity 563,682 33.8 %
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 3.6
Long-term debt - NOTE 2 1,041,908 62.6
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Total capitalization 1,665,590 100.0 %
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CURRENT AND ACCRUED LIABILITIES
Accounts payable 141,138
Customer deposits 29,335
Taxes accrued (including income taxes) 33,268
Deferred taxes 54,483
Other 41,759
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Total current and accrued liabilities 299,983
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DEFERRED CREDITS
Deferred investment tax credits 15,319
Deferred income taxes 185,947
Other 74,252
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Total deferred credits 275,518
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TOTAL CAPITALIZATION AND LIABILITIES $ 2,241,091
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See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2001
(In thousands)
(Unaudited)
CASH FLOWS FROM OPERATIONS:
Net income $ 33,809
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 25,644
Change in receivables and payables 9,936
Change in gas cost related balancing items (66,483)
Change in accrued taxes 46,458
Change in deferred taxes 4,479
Allowance for funds used during construction (564)
Other (248)
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Net cash provided by operating activities 53,031
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CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (52,002)
Other (2,508)
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Net cash used in investing activities (54,510)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuances 2,966
Dividends paid (6,523)
Change in notes payable (131,000)
Retirement of long-term debt, net (37,000)
Long-term debt issuances, net 198,682
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Net cash provided by financing activities 27,125
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Change in cash and cash equivalents 25,646
Cash at beginning of period 14,646
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Cash at end of period $ 40,292
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SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 17,478
Income taxes, net of refunds $ (16,601)
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 $ 163,000
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
Notes, 8.375% series, due 2011 200,000
Medium-term notes, 7.59% series, due 2017 25,000
Medium-term notes, 7.75% series, due 2005 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:
Variable-rate bonds, Series A, due 2028 - net of funds held in trust 47,829
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
6.10% 1999 Series A, due 2038 12,410
Variable-rate bonds, 1999 Taxable Series B, due 2038 8,270
5.95% 1999 Series C, due 2038 14,320
Unamortized discount on long-term debt (8,921)
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TOTAL LONG-TERM DEBT $ 1,041,908
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ESTIMATED CURRENT MATURITIES $ -
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SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
MARCH 31, 2001
FINANCIAL STATISTICS
Market value to book value per share at quarter end 118%
Twelve months to date return on equity -- total company 8.9%
-- gas segment 8.5%
Common stock dividend yield at quarter end 3.9%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
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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 28,849 10.02 11.35
Paiute Pipeline Company (1) 75,059 9.69 11.60
(1) Estimated amounts based on rate case settlements.
SYSTEM THROUGHPUT BY CUSTOMER CLASS THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
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(In dekatherms) 2001 2000 2001 2000
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Residential 30,559,650 25,304,315 62,393,089 55,145,073
Small commercial 11,258,004 9,866,297 28,658,996 26,599,623
Large commercial 2,200,276 1,492,823 7,098,291 5,883,039
Industrial / Other 6,609,256 2,696,920 23,883,807 15,668,918
Transportation 35,704,429 29,685,555 154,288,930 120,271,426
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Total system throughput 86,331,615 69,045,910 276,323,113 223,568,079
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HEATING DEGREE DAY COMPARISON
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Actual 1,192 1,005 2,123 1,872
Ten-year average 1,102 1,102 1,993 1,991
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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 hereunto duly authorized.
SOUTHWEST GAS CORPORATION
Date: April 26, 2001 /s/ EDWARD A. JANOV
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Edward A. Janov
Vice President/Controller and
Chief Accounting Officer