EXHIBIT 99
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ---------------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------
Gas operating revenues $ 291,065 $ 325,710 $ 528,857 $ 609,345
Net cost of gas purchased 115,157 153,666 188,947 258,154
- ------------------------------------------------------------------------------------------------------------
Operating margin 175,908 172,044 339,910 351,191
Operations and maintenance expenses 95,471 93,722 189,718 185,839
Depreciation, amortization, and general taxes 47,854 44,366 93,153 85,999
- ------------------------------------------------------------------------------------------------------------
Operating income 32,583 33,956 57,039 79,353
Net interest deductions 26,008 26,361 53,002 52,348
Preferred securities distribution 2,738 -- 3,651 --
- ------------------------------------------------------------------------------------------------------------
Pre-tax utility income 3,837 7,595 386 27,005
Utility income tax expense (benefit) 1,124 2,905 (923) 9,805
- ------------------------------------------------------------------------------------------------------------
Net utility income 2,713 4,690 1,309 17,200
Other income (expense), net (243) (192) (683) (176)
- ------------------------------------------------------------------------------------------------------------
Contribution to net income - gas operations 2,470 4,498 626 17,024
- ------------------------------------------------------------------------------------------------------------
Equity in earnings of Northern Pipeline 577 -- 577 --
Acquisition carrying costs, net of tax (131) -- (131) --
- ------------------------------------------------------------------------------------------------------------
Contribution to net income - Northern Pipeline 446 -- 446 --
- ------------------------------------------------------------------------------------------------------------
Discontinued operations - PriMerit Bank - NOTE 2 -- 806 (18,342) 1,653
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Net income (loss) 2,916 5,304 (17,270) 18,677
Preferred & preference dividends -- 190 117 423
- ------------------------------------------------------------------------------------------------------------
Net income (loss) applicable to common stock $ 2,916 $ 5,114 $ (17,387) $ 18,254
============================================================================================================
Earnings per share from gas segment $ 0.10 $ 0.19 $ 0.02 $ 0.77
Earnings per share from Northern Pipeline 0.02 -- 0.02 --
Earnings (loss) per share from discontinued operations -- 0.04 (0.74) 0.07
- ------------------------------------------------------------------------------------------------------------
Earnings (loss) per share of common stock $ 0.12 $ 0.23 $ (0.70) $ 0.84
============================================================================================================
Average outstanding common shares 25,211 22,110 24,773 21,615
============================================================================================================
See Notes to Summary Financial Statements.
/TABLE
SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT JUNE 30, 1996
(In thousands)
(Unaudited)
ASSETS
UTILITY PLANT
Gas plant, net of accumulated depreciation $ 1,162,187
Construction work in progress 27,287
------------
Net utility plant 1,189,474
------------
OTHER PROPERTY AND INVESTMENTS
Investment in discontinued operations - PriMerit Bank - NOTE 2 175,118
Investment in Northern Pipeline Construction Co. 24,577
Other 36,532
------------
Total other property and investments 236,227
------------
CURRENT AND ACCRUED ASSETS
Cash, working funds and temporary cash investments 9,480
Receivables - less reserve of $1,486 for uncollectibles 23,446
Accrued utility revenue 19,964
Other 48,143
------------
Total current and accrued assets 101,033
------------
DEFERRED DEBITS
Unamortized debt expense 13,029
Other deferred debits 32,920
------------
Total deferred debits 45,949
------------
TOTAL ASSETS $ 1,572,683
============
CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS
CAPITALIZATION
Common stockholders' equity
Common stock equity, $1 par, 26,403 shares outstanding $ 370,698
Retained earnings 9,411
------------
Total common stockholders' equity 380,109 32.4%
Preferred securities of Southwest Gas Capital I, 9.125% 60,000 5.1
Long-term debt - NOTE 3 733,576 62.5
------------ ----------
Total capitalization 1,173,685 100.0%
------------ ==========
CURRENT AND ACCRUED LIABILITIES
Notes payable 45,000
Accounts payable 29,631
Customer deposits 21,020
Taxes accrued (including income taxes) 31,696
Deferred purchased gas costs 46,398
Other 41,317
------------
Total current and accrued liabilities 215,062
------------
DEFERRED CREDITS
Deferred investment tax credits 19,440
Deferred income taxes 123,622
Other 40,874
------------
Total deferred credits 183,936
------------
TOTAL CAPITALIZATION, LIABILITIES AND DEFERRED CREDITS $ 1,572,683
============
See Notes to Summary Financial Statements.
/TABLE
SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1996
(In thousands)
(Unaudited)
[S]
CASH FLOWS FROM OPERATIONS:
Net income $ 2,916
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation and amortization 32,991
Change in receivables and payables 25,821
Change in gas cost related balancing items 15,174
Change in accrued taxes 4,095
Change in deferred taxes (2,882)
Allowance for funds used during construction (767)
Other (2,654)
----------
Net cash provided from operating activities 74,694
----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from stock issuance 8,069
Stock issuance - Northern Pipeline acquisition 24,000
Dividends paid (10,427)
Change in notes payable 8,000
Long-term debt issuance, net 5,849
Other 1,269
----------
Net cash provided from financing activities 36,760
----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (86,770)
Investment in Northern Pipeline (24,000)
Other (2,091)
----------
Net cash used in investing activities (112,861)
----------
Change in cash and temporary cash investments (1,407)
Cash at beginning of period 10,887
----------
Cash at end of period $ 9,480
==========
SUPPLEMENTAL INFORMATION:
Interest paid, net of amounts capitalized $ 29,937
Income taxes, net of refunds $ 4,301
See Notes to Summary Financial Statements.
SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
(In thousands, except par values)
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION:
The financial statements have been prepared by Southwest Gas Corporation
(the Company) using the equity method of accounting for Northern Pipeline
Construction Co. 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 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 - DISCONTINUED OPERATIONS:
In January 1996, Southwest Gas Corporation (the Company) reached an agreement
to sell PriMerit Bank (PriMerit) to Norwest Corporation. Discontinued
operations includes the net income of PriMerit and its subsidiaries on a
stand-alone basis as adjusted, reduced by allocated carrying costs associated
with the Company's investment in PriMerit (principally interest) net of taxes.
The discontinued operations also includes the estimated loss on the
disposition. The sale of PriMerit to Norwest was completed in July 1996.
NOTE 3 - LONG-TERM DEBT:
Commercial paper facility $ 200,000
Debentures:
Debentures, 9% series A, due 2011 26,838
Debentures, 9% series B, due 2011 31,158
Debentures, 8.75% series C, due 2011 18,323
Debentures, 9.375% series D, due 2017 120,000
Debentures, 10% series E, due 2013 23,069
Debentures, 9.75% series F, due 2002 100,000
Industrial development revenue bonds - net of funds heldin trust 223,840
Unamortized discount on long-term debt (9,652)
----------
TOTAL LONG-TERM DEBT $ 733,576
==========
ESTIMATED CURRENT MATURITIES $ 120,000
==========
/TABLE
SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
JUNE 30, 1996
FINANCIAL STATISTICS
Market value to book value per share at quarter end 112%
Twelve months to date return on equity -- total company (4.7)%
-- gas segment 0.2%
Common stock dividend yield at quarter end 5.1%
GAS OPERATIONS SEGMENT
Authorized
Authorized Authorized Return on
Rate Base Rate of Common
Rate Jurisdiction (In thousands) Return Equity
- ----------------------- -------------- -------------- --------------
Central Arizona $ 267,348 9.13% 10.75%
Southern Arizona 157,620 9.12 11.00
Southern Nevada 184,673 8.89 11.55
Northern Nevada 47,695 9.16 11.55
Southern California 69,486 9.94 11.35
Northern California 9,521 10.02 11.35
Paiute Pipeline Company 61,057 10.09 12.50
SYSTEM THROUGHPUT BY CUSTOMER CLASS
SIX MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------- ---------------------------
(In dekatherms) 1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------------------
Residential 28,320,580 28,889,283 41,704,732 45,836,876
Small commercial 13,845,218 13,919,969 22,874,442 23,740,156
Large commercial 4,084,374 4,570,048 7,858,394 9,204,993
Industrial / Other 2,900,420 4,092,423 5,829,712 8,599,301
Transportation 42,930,403 46,964,610 97,566,915 98,628,474
- -------------------------------------------------------------------------------------------------------------------------
Total system throughput 92,080,995 98,436,333 175,834,195 186,009,800
=========================================================================================================================
HEATING DEGREE DAY COMPARISON
- -------------------------------------------------------------------------------------------------------------------------
Actual 1,249 1,538 1,684 2,418
Ten year average 1,414 1,598 2,035 2,350
=========================================================================================================================
/TABLE