UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
AMENDMENT NO. 1 TO
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Name of Registrant, State of
Commission Incorporation, Address of Principal IRS Employer
File Number Executive Offices and Telephone Number Identification Number
- ----------- -------------------------------------- ---------------------
1-9894 ALLIANT ENERGY CORPORATION 39-1380265
(a Wisconsin corporation)
222 West Washington Avenue
Madison, Wisconsin 53703
Telephone (608)252-3311
0-4117-1 IES UTILITIES INC. 42-0331370
(an Iowa corporation)
Alliant Tower
Cedar Rapids, Iowa 52401
Telephone (319)398-4411
0-337 WISCONSIN POWER AND LIGHT COMPANY 39-0714890
(a Wisconsin corporation)
222 West Washington Avenue
Madison, Wisconsin 53703
Telephone (608)252-3311
Interstate Energy Corporation
(Former name of Alliant Energy Corporation)
Indicate by check mark whether the registrants (1) have 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
registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past (90) days. Yes X No _____
This combined Form 10-Q/A is separately filed by Alliant Energy Corporation, IES
Utilities Inc. and Wisconsin Power and Light Company. Information contained
herein relating to any individual registrant is filed by such registrant on its
own behalf. Each registrant makes no representation as to information relating
to the other registrants.
Number of shares outstanding of each class of common stock as of April 30, 1999:
Alliant Energy Corporation Common stock, $.01 par value, 78,116,598
shares outstanding
IES Utilities Inc. Common stock, $2.50 par value, 13,370,788
shares outstanding (all of which are owned
beneficially and of record by Interstate
Energy Corporation)
Wisconsin Power and Light Company Common stock, $5 par value, 13,236,601
shares outstanding (all of which are owned
beneficially and of record by Interstate
Energy Corporation)
The undersigned registrants hereby amend Item 1 of their combined Quarterly
Report on Form 10-Q for the three months ended March 31, 1999 to provide in its
entirety as follows:
2
DEFINITIONS
Certain abbreviations or acronyms used in the text and notes of this combined
Form 10-Q/A are defined below:
Abbreviation or Acronym Definition
- ----------------------- ----------
Corporate Services Alliant Energy Corporate Services, Inc.
IEC Interstate Energy Corporation
IESU IES Utilities Inc.
IPC Interstate Power Company
McLeod McLeodUSA Incorporated
Resources Alliant Energy Resources, Inc.
SEC Securities and Exchange Commission
WP&L Wisconsin Power and Light Company
3
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
INTERSTATE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months Ended March 31
1999 1998
- --------------------------------------------------------------------------------
(in thousands, except per share amounts
Operating revenues:
Electric utility $ 351,338 $ 357,751
Gas utility 133,684 130,046
Nonregulated and other 61,833 68,486
--------- ---------
546,855 556,283
--------- ---------
- --------------------------------------------------------------------------------
Operating expenses:
Electric and steam production fuels 65,404 69,556
Purchased power 52,065 56,147
Cost of utility gas sold 81,343 77,280
Other operation 130,365 157,352
Maintenance 23,812 25,259
Depreciation and amortization 73,640 69,832
Taxes other than income taxes 27,239 26,977
--------- ---------
453,868 482,403
--------- ---------
- --------------------------------------------------------------------------------
Operating income 92,987 73,880
--------- ---------
- --------------------------------------------------------------------------------
Interest expense and other:
Interest expense 33,400 30,924
Allowance for funds used during
construction (1,934) (1,503)
Preferred dividend requirements
of subsidiaries 1,676 1,674
Miscellaneous, net (6,771) (3,877)
--------- ---------
26,371 27,218
--------- ---------
- --------------------------------------------------------------------------------
Income before income taxes 66,616 46,662
--------- ---------
- --------------------------------------------------------------------------------
Income taxes 24,872 17,787
--------- ---------
- --------------------------------------------------------------------------------
Net income $ 41,744 $ 28,875
========= =========
- --------------------------------------------------------------------------------
Average number of common shares
outstanding 77,780 76,579
========= =========
- --------------------------------------------------------------------------------
Earnings per average common share
(basic and diluted) $ 0.54 $ 0.38
========= =========
- --------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
4
INTERSTATE ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31,
1999 December 31,
ASSETS (Unaudited) 1998
- --------------------------------------------------------------------------------
(in thousands)
Property, plant and equipment:
Utility -
Plant in service -
Electric $ 4,884,916 $ 4,866,152
Gas 517,775 515,074
Other 409,844 409,711
------------ -----------------
5,812,535 5,790,937
Less - Accumulated depreciation 2,917,085 2,852,605
------------ -----------------
2,895,450 2,938,332
Construction work in progress 133,054 119,032
Nuclear fuel, net of amortization 40,709 44,316
------------ -----------------
3,069,213 3,101,680
Other property, plant and equipment,
net of accumulated depreciation and
amortization of $189,289 and
$178,248, respectively 354,075 355,100
------------ -----------------
3,423,288 3,456,780
------------ -----------------
- ------------------------------------------------------------------------------
Current assets:
Cash and temporary cash investments 54,183 31,827
Accounts receivable:
Customer, less allowance for doubtfu
accounts of $2,594 and $2,518,
respectively 96,973 102,966
Other, less allowance for doubtful
accounts of $499 and $490, respectively 22,273 26,054
Notes receivable, less allowance for
doubtful accounts of $117 and $120,
respectively 9,433 13,392
Production fuel, at average cost 44,397 54,140
Materials and supplies, at average cost 55,025 53,490
Gas stored underground, at average cost 12,489 26,013
Regulatory assets 26,628 30,796
Prepaid gross receipts tax 16,882 22,222
Other 24,316 30,767
------------ -----------------
362,599 391,667
------------ -----------------
- ------------------------------------------------------------------------------
Investments:
Investment in McLeodUSA Inc. 431,255 320,280
Nuclear decommissioning trust funds 245,024 225,803
Investment in foreign entities 119,124 68,882
Other 52,619 54,776
------------ -----------------
848,022 669,741
------------ -----------------
- ------------------------------------------------------------------------------
Other assets:
Regulatory assets 278,147 284,467
Deferred charges and other 159,066 156,682
------------ -----------------
437,213 441,149
------------ -----------------
- ------------------------------------------------------------------------------
Total assets $ 5,071,122 $ 4,959,337
============ =================
- ------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
5
INTERSTATE ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS (CONTINUED)
March 31,
1999 December 31,
CAPITALIZATION AND LIABILITIES (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------------------
(in thousands, except share amounts)
Capitalization:
Common stock - $.01 par value - authorized 200,000,000 shares;
outstanding 77,935,693 and 77,630,043 shares, respectively $ 779 $ 776
Additional paid-in capital 913,728 905,130
Retained earnings 540,282 537,372
Accumulated other comprehensive income 237,434 163,017
----------------- -----------------
Total common equity 1,692,223 1,606,295
----------------- -----------------
Cumulative preferred stock of subsidiaries:
Par/Stated Authorized Shares Mandatory
Value Shares Outstanding Series Redemption
----- ------ ----------- ------ ----------
$ 100 * 449,765 4.40% - 6.20% No 44,977 44,977
$ 25 * 599,460 6.50% No 14,986 14,986
$ 50 466,406 366,406 4.30% - 6.10% No 18,320 18,320
$ 50 ** 216,381 4.36% - 7.76% No 10,819 10,819
$ 50 ** 545,000 6.40% Yes *** 27,250 27,250
----------------- -----------------
116,352 116,352
Less: unamortized expenses (2,819) (2,854)
----------------- -----------------
Total cumulative preferred stock of subsidiaries 113,533 113,498
----------------- -----------------
Long-term debt (excluding current portion) 1,545,251 1,543,131
----------------- -----------------
3,351,007 3,262,924
----------------- -----------------
* 3,750,000 authorized shares in total between the two classes
** 2,000,000 authorized shares in total between the two classes
*** $53.20 mandatory redemption price
- ------------------------------------------------------------------------------------------------------------------------
Current liabilities:
Current maturities and sinking funds 54,084 63,414
Variable rate demand bonds 56,975 56,975
Commercial paper 64,000 64,500
Notes payable 50,027 51,784
Capital lease obligations 12,146 11,978
Accounts payable 163,589 204,297
Accrued taxes 106,845 84,921
Other 113,414 111,685
----------------- -----------------
621,080 649,554
----------------- -----------------
- ------------------------------------------------------------------------------------------------------------------------
Other long-term liabilities and deferred credits:
Accumulated deferred income taxes 738,168 691,624
Accumulated deferred investment tax credits 75,949 77,313
Environmental liabilities 68,192 68,399
Customer advances 35,964 37,171
Capital lease obligations 11,499 13,755
Other 169,263 158,597
----------------- -----------------
1,099,035 1,046,859
----------------- -----------------
- ------------------------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 5,071,122 $ 4,959,337
================= =================
- ------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
6
INTERSTATE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three Months Ended March 31,
1999 1998
- -----------------------------------------------------------------------------------------------------
(in thousands)
Cash flows from operating activities:
Net income $ 41,744 $ 28,875
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation and amortization 73,640 69,832
Amortization of nuclear fuel 5,024 5,437
Amortization of deferred energy efficiency expenditures 7,930 8,240
Deferred taxes and investment tax credits (1,799) (13,424)
Refueling outage provision 2,415 1,299
Impairment of oil and gas properties - 6,746
Other (2,070) 1,197
Other changes in assets and liabilities:
Accounts receivable 9,774 20,221
Notes receivable 3,959 2,091
Production fuel 9,743 7,289
Materials and supplies (1,535) (1,543)
Gas stored underground 13,524 21,544
Prepaid gross receipts tax 5,340 4,912
Accounts payable (40,708) (23,964)
Accrued taxes 21,924 29,699
Adjustment clause balances 9,168 14,220
Benefit obligations and other 12,079 (398)
----------------- -----------------
Net cash flows from operating activities 170,152 182,273
----------------- -----------------
- -----------------------------------------------------------------------------------------------------
Cash flows used for financing activities:
Common stock dividends declared (38,834) (36,580)
Proceeds from issuance of common stock 8,538 2,828
Net change in Alliant Energy Resources, Inc. credit facility 42,995 29,562
Proceeds from issuance of other long-term debt 11,994 41
Reductions in other long-term debt (62,310) (1,013)
Net change in short-term borrowings (2,257) (67,676)
Principal payments under capital lease obligations (3,369) (4,106)
Other 113 (423)
----------------- -----------------
Net cash flows used for financing activities (43,130) (77,367)
----------------- -----------------
- -----------------------------------------------------------------------------------------------------
Cashflows used for investing activities:
Construction and acquisition expenditures:
Utility (41,638) (39,160)
Nonregulated businesses (49,198) (22,554)
Nuclear decommissioning trust funds (15,437) (13,642)
Shared savings expenditures (4,247) (1,808)
Other 5,854 7,032
----------------- -----------------
Net cash flows used for investing activities (104,666) (70,132)
----------------- -----------------
- -----------------------------------------------------------------------------------------------------
Net increase in cash and temporary cash investments 22,356 34,774
----------------- -----------------
- -----------------------------------------------------------------------------------------------------
Cash and temporary cash investments at beginning of period 31,827 27,329
----------------- -----------------
- -----------------------------------------------------------------------------------------------------
----------------- -----------------
Cash and temporary cash investments at end of period $ 54,183 $ 62,103
================= =================
- -----------------------------------------------------------------------------------------------------
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 31,952 $ 32,237
================= =================
Income taxes $ 4,600 $ 11,892
================= =================
Noncash investing and financing activities:
Capital lease obligations incurred $ 1,414 $ 1,039
================= =================
- -----------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
7
INTERSTATE ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. The interim consolidated financial statements included herein have been
prepared by IEC, without audit, pursuant to the rules and regulations of
the SEC. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted,
although management believes that the disclosures are adequate to make
the information presented not misleading. The consolidated financial
statements include IEC and its consolidated subsidiaries (WP&L, IESU,
IPC, Resources and Corporate Services). These financial statements should
be read in conjunction with the financial statements and the notes
thereto included in IEC's, IESU's and WP&L's latest Annual Report on Form
10-K.
In the opinion of management, all adjustments, which are normal and
recurring in nature, necessary for a fair presentation of (a) the
consolidated results of operations for the three months ended March 31,
1999 and 1998, (b) the consolidated financial position at March 31, 1999
and December 31, 1998, and (c) the consolidated statement of cash flows
for the three months ended March 31, 1999 and 1998, have been made.
Because of the seasonal nature of IESU's, WP&L's and IPC's operations,
results for the three months ended March 31, 1999 are not necessarily
indicative of results that may be expected for the year ending December
31, 1999. Certain prior period amounts have been reclassified on a basis
consistent with the 1999 presentation.
2. IEC's comprehensive income, and the components of other comprehensive
income (loss), net of taxes, were as follows (in thousands):
For the Three Months
Ended March 31,
1999 1998
-------------- ---------------
Net income $ 41,744 $ 28,875
Other comprehensive income (loss):
Unrealized gain on securities, net of tax (1)
75,031 61,829
Foreign currency translation adjustments
(614) 55
-------------- ---------------
Other comprehensive income 74,417
61,884
-------------- ---------------
Comprehensive income $ 116,161 $ 90,759
============== ===============
(1) Primarily due to the adjustment to the estimated fair value each quarter
of IEC's investment in McLeod.
IESU and WP&L had no comprehensive income in the periods presented.
8
3. Certain financial information relating to IEC's significant business
segments is presented below:
Regulated Domestic Utilities Nonregulated IEC
-------------------------------------------
Electric Gas Other Total Businesses Other Consolidated
------------------------------------------------------------------------------------
(in thousands)
Three Months Ended
March 31, 1999
--------------
Operating revenues $351,338 $133,684 $9,204 $494,226 $53,199 ($570) $546,855
Operating income (loss) 68,615 23,939 2,354 94,908 (1,836) (85) 92,987
Net income (loss) 44,767 (1,906) (1,117) 41,744
Three Months Ended
March 31, 1998
--------------
Operating revenues $357,751 $130,046 $8,409 $496,206 $60,322 ($245) $556,283
Operating income (loss) 55,837 22,376 1,831 80,044 (5,499) (665) 73,880
Net income (loss) 33,177 (3,999) (303) 28,875
Resources' (i.e. the nonregulated businesses) assets increased $150
million during the first quarter of 1999, primarily due to the increase
in market value of its investment in McLeod and additional investments in
foreign entities. Intersegment revenues were not material to IEC's
operations and there was no single customer whose revenues exceeded 10%
or more of IEC's consolidated revenues.
4. The provisions for income taxes are based on the estimated annual
effective tax rate, which differs from the federal statutory rate of 35%
principally due to: state income taxes, tax credits, effects of utility
rate making and certain nondeductible expenses.
5. At March 31, 1999, IEC had $119.1 million of investments in foreign
entities on its Consolidated Balance Sheets that included: (a)
investments in several New Zealand utility entities; (b) investments in
several generation facilities in China; and (c) an investment in an
international venture capital fund. IEC accounts for the China
investments under the equity method and the other investments under the
cost method. The geographic concentration of IEC's investments in foreign
entities at March 31, 1999, included investments of approximately $85.7
million in New Zealand, $32.9 million in China and $0.5 million in other
countries.
6. In October 1998, the Board of Directors of IEC adopted a new Shareowner
Rights Plan (new plan) to replace IEC's former plan that expired on
February 22, 1999. The new plan was approved on January 15, 1999 by the
SEC. On January 20, 1999, the Board of Directors declared a dividend of
one common share purchase right (right) on each outstanding share of
IEC's common stock which was issued on February 22, 1999 to coincide with
the expiration of the former plan. Rights under the new plan will be
exercisable only if a person or group acquires, or announces a tender
offer to acquire, 15% or more of IEC's common stock. Each right will
initially entitle shareowners to buy one-half of one share of IEC's
common stock. The rights will only be exercisable in multiples of two at
an initial price of $95.00 per full share, subject to adjustment. If any
shareowner acquires 15% or more of the outstanding common stock of IEC,
each right (subject to limitations) will entitle its holder to purchase,
at the right's then current exercise price, a number of common shares of
IEC or of the acquirer having a market value at the time of twice the
right's per full share exercise price. The Board of Directors is also
authorized to reduce the 15% thresholds to not less than 10%.
9
7. Summary financial information for Resources was as follows (in
thousands):
March 31,
1999
------------
Current assets $84,950
Non-current assets 934,393
Current liabilities 40,468
Non-current liabilities
(excludes minority interest) 208,785
Minority interest 6,162
Refer to the "Nonregulated Businesses" column of Note 3 for summary
income statement data of Resources.
8. At the Annual Shareowners meeting on May 19, 1999, the shareowners
approved a proposal to change the name of the corporation from Interstate
Energy Corporation to Alliant Energy Corporation. The name change was
effective May 20, 1999.
10
IES UTILITIES INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months Ended March 31,
1999 1998
- -------------------------------------------------------------------------------
(in thousands)
Operating revenues:
Electric utility $ 140,017 $ 140,649
Gas utility 61,296 60,395
Steam and other 7,952 7,234
--------- ---------
209,265 208,278
--------- ---------
- -----------------------------------------------------------------------------
Operating expenses:
Electric and steam production fuels 26,589 30,649
Purchased power 13,150 11,049
Cost of gas sold 37,912 37,657
Other operation 47,439 47,002
Maintenance 9,904 10,991
Depreciation and amortization 25,482 24,335
Taxes other than income taxes 12,616 12,306
--------- ---------
173,092 173,989
--------- ---------
- -----------------------------------------------------------------------------
Operating income 36,173 34,289
--------- ---------
- -----------------------------------------------------------------------------
Interest expense and other:
Interest expense 13,204 13,075
Allowance for funds used during
construction (849) (765)
Miscellaneous, net (857) 279
--------- ---------
11,498 12,589
--------- ---------
- -----------------------------------------------------------------------------
Income before income taxes 24,675 21,700
--------- ---------
- -----------------------------------------------------------------------------
Income taxes 10,216 10,040
--------- ---------
- -----------------------------------------------------------------------------
Net income 14,459 11,660
--------- ---------
- -----------------------------------------------------------------------------
Preferred dividend requirements 229 229
--------- ---------
- -----------------------------------------------------------------------------
Earnings available for common stock $ 14,230 $ 11,431
========= =========
- -----------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
11
IES UTILITIES INC.
CONSOLIDATED BALANCE SHEETS
March 31,
1999 December 31,
ASSETS (Unaudited) 1998
- --------------------------------------------------------------------------------
(in thousands)
Property, plant and equipment:
Utility -
Plant in service -
Electric $ 2,148,059 $ 2,140,322
Gas 199,209 198,488
Steam 55,794 55,797
Common 106,732 106,940
------------- ---------------
2,509,794 2,501,547
Less - Accumulated depreciation 1,237,623 1,209,204
------------- ---------------
1,272,171 1,292,343
Construction work in progress 57,141 48,991
Leased nuclear fuel, net of
amortization 23,559 25,644
------------- ---------------
1,352,871 1,366,978
Other property, plant and equipment,
net of accumulated depreciation and
amortization of $1,984 and $1,948,
respectively 5,586 5,623
------------- ---------------
1,358,457 1,372,601
------------- ---------------
- ------------------------------------------------------------------------------
Current assets:
Cash and temporary cash investments 585 4,175
Temporary cash investments with
associated companies - 53,729
Accounts receivable:
Customer, less allowance for doubtful
accounts of $1,056 and $1,058,
respectively 17,543 16,703
Associated companies 2,466 2,662
Other, less allowance for doubtful
accounts of $363 and $357,
respectively 10,158 10,346
Production fuel, at average cost 13,306 11,863
Materials and supplies, at average cost 25,972 25,591
Gas stored underground, at average cost 5,887 12,284
Regulatory assets 19,324 23,487
Prepayments and other 3,879 4,185
------------- ---------------
99,120 165,025
------------- ---------------
- ------------------------------------------------------------------------------
Investments:
Nuclear decommissioning trust funds 95,398 91,691
Other 6,236 6,019
------------- ---------------
101,634 97,710
------------- ---------------
- ------------------------------------------------------------------------------
Other assets:
Regulatory assets 133,491 137,908
Deferred charges and other 15,201 15,734
------------- ---------------
148,692 153,642
------------- ---------------
- ------------------------------------------------------------------------------
Total assets $ 1,707,903 $ 1,788,978
============= ===============
- ------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
12
IES UTILITIES INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
March 31,
1999 December 31,
CAPITALIZATION AND LIABILITIES (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------------
(in thousands, except share amounts)
Capitalization:
Common stock - $2.50 par value - authorized 24,000,000
shares; 13,370,788 shares outstanding $ 33,427 $ 33,427
Additional paid-in capital 279,042 279,042
Retained earnings 245,626 275,372
------------------ -----------------
Total common equity 558,095 587,841
Cumulative preferred stock, not mandatorily redeemable -
$50 par value - authorized 466,406 shares; 366,406 shares outstanding 18,320 18,320
Long-term debt (excluding current portion) 551,086 602,020
------------------ -----------------
1,127,501 1,208,181
------------------ -----------------
- --------------------------------------------------------------------------------------------------------------------
Current liabilities:
Current maturities and sinking funds 51,140 50,140
Capital lease obligations 12,132 11,965
Notes payable to associated companies 9,694 -
Accounts payable 30,117 43,953
Accounts payable to associated companies 13,930 22,487
Accrued payroll and vacations 9,311 6,365
Accrued interest 10,082 12,045
Accrued taxes 64,480 55,295
Accumulated refueling outage provision 9,020 6,605
Environmental liabilities 5,660 5,660
Other 16,928 17,617
------------------ -----------------
232,494 232,132
------------------ -----------------
- --------------------------------------------------------------------------------------------------------------------
Other long-term liabilities and deferred credits:
Accumulated deferred income taxes 224,893 224,510
Accumulated deferred investment tax credits 28,603 29,243
Environmental liabilities 29,027 29,195
Pension and other benefit obligations 27,283 25,655
Capital lease obligations 11,427 13,679
Other 26,675 26,383
------------------ -----------------
347,908 348,665
------------------ -----------------
- --------------------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 1,707,903 $ 1,788,978
================== =================
- --------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
13
IES UTILITIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three Months Ended March 31,
1999 1998
- -------------------------------------------------------------------------------------------------------------------------
(in thousands)
Cash flows from operating activities:
Net income $ 14,459 $ 11,660
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation and amortization 25,482 24,335
Amortization of leased nuclear fuel 3,499 4,010
Amortization of deferred energy efficiency expenditures 6,064 6,070
Deferred taxes and investment tax credits (473) (8,822)
Refueling outage provision 2,415 1,299
Other 146 319
Other changes in assets and liabilities:
Accounts receivable (456) 2,796
Production fuel (1,443) 197
Materials and supplies (381) (1,249)
Gas stored underground 6,397 10,509
Accounts payable (22,393) (12,292)
Accrued taxes 9,185 13,262
Adjustment clause balances 4,809 9,466
Benefit obligations and other 5,776 5,449
------------------ -----------------
Net cash flows from operating activities 53,086 67,009
------------------ -----------------
- -------------------------------------------------------------------------------------------------------------------------
Cash flows used for financing activities:
Common stock dividends declared (43,976) (14,000)
Dividends payable (4,840) 14,000
Preferred stock dividends (229) (229)
Reductions in long-term debt (50,000) -
Net change in short-term borrowings 9,694 -
Principal payments under capital lease obligations (3,369) (4,106)
Other (3) -
------------------ ------------------
Net cash flows used for financing activities (92,723) (4,335)
------------------ ------------------
- -------------------------------------------------------------------------------------------------------------------------
Cash flows used for investing activities:
Construction expenditures - utility (16,621) (19,198)
Nuclear decommissioning trust funds (1,502) (1,502)
Other 441 72
------------------ ------------------
Net cash flows used for investing activities (17,682) (20,628)
------------------ ------------------
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and temporary cash investments (57,319) 42,046
------------------ ------------------
- -------------------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at beginning of period 57,904 230
------------------ ------------------
- -------------------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at end of period $ 585 $ 42,276
================== ==================
- -------------------------------------------------------------------------------------------------------------------------
Supplemental cash flow information: Cash paid during the period for:
Interest $ 13,989 $ 12,378
================== ==================
Income taxes $ 7,334 $ 11,804
================== ==================
Noncash investing and financing activities - Capital lease obligations incurred $ 1,414 $ 1,039
================== ==================
- -------------------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
14
IES UTILITIES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Except as modified below, the IEC Notes to Consolidated Financial
Statements are incorporated by reference insofar as they relate to IESU.
IEC Notes 5 and 6 do not relate to IESU and, therefore, are not
incorporated by reference.
1. The interim consolidated financial statements included herein have been
prepared by IESU, without audit, pursuant to the rules and regulations of
the SEC. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted,
although management believes that the disclosures are adequate to make
the information presented not misleading. The consolidated financial
statements include IESU and its consolidated wholly-owned subsidiary, IES
Ventures Inc. IESU is a subsidiary of IEC. These financial statements
should be read in conjunction with the financial statements and the notes
thereto included in IESU's latest Annual Report on Form 10-K.
In the opinion of management, all adjustments, which are normal and
recurring in nature, necessary for a fair presentation of (a) the
consolidated results of operations for the three months ended March 31,
1999 and 1998, (b) the consolidated financial position at March 31, 1999
and December 31, 1998, and (c) the consolidated statement of cash flows
for the three months ended March 31, 1999 and 1998, have been made.
Because of the seasonal nature of IESU's operations, results for the
three months ended March 31, 1999 are not necessarily indicative of
results that may be expected for the year ending December 31, 1999.
Certain prior period amounts have been reclassified on a basis consistent
with the 1999 presentation.
15
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Three Months Ended March 31,
1999 1998
- ------------------------------------------------------------------------------
(in thousands)
Operating revenues:
Electric utility $ 149,944 $ 151,310
Gas utility 51,794 50,318
Water 1,252 1,175
---------- -----------
202,990 202,803
---------- -----------
- ------------------------------------------------------------------------------
Operating expenses:
Electric production fuels 27,366 28,897
Purchased power 24,000 28,602
Cost of gas sold 31,181 30,714
Other operation 26,108 34,003
Maintenance 9,103 9,967
Depreciation and amortization 31,139 29,258
Taxes other than income taxes 7,702 7,711
---------- -----------
156,599 169,152
---------- -----------
- ------------------------------------------------------------------------------
Operating income 46,391 33,651
---------- -----------
- ------------------------------------------------------------------------------
Interest expense and other:
Interest expense 9,865 8,383
Allowance for funds used during
construction (923) (656)
Miscellaneous, net (4,344) (1,867)
---------- -----------
4,598 5,860
---------- -----------
- ------------------------------------------------------------------------------
Income before income taxes 41,793 27,791
---------- -----------
- ------------------------------------------------------------------------------
Income taxes 15,505 10,193
---------- -----------
- ------------------------------------------------------------------------------
Net income 26,288 17,598
---------- -----------
- ------------------------------------------------------------------------------
Preferred dividend requirements 828 828
---------- -----------
- ------------------------------------------------------------------------------
Earnings available for common stock $ 25,460 $ 16,770
========== ===========
- ------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
16
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED BALANCE SHEETS
March 31,
1999 December 31,
ASSETS (Unaudited) 1998
- --------------------------------------------------------------------------------
(in thousands)
Property, plant and equipment:
Utility -
Plant in service -
Electric $ 1,847,950 $ 1,839,545
Gas 246,188 244,518
Water 26,584 26,567
Common 219,715 219,268
-------------- -----------------
2,340,437 2,329,898
Less - Accumulated depreciation 1,199,761 1,168,830
-------------- -----------------
1,140,676 1,161,068
Construction work in progress 63,950 56,994
Nuclear fuel, net of amortization 17,151 18,671
-------------- -----------------
1,221,777 1,236,733
Other property, plant and equipment,
net of accumulated depreciation and
amortization of $44 for both years 630 630
-------------- -----------------
1,222,407 1,237,363
-------------- -----------------
- --------------------------------------------------------------------------------
Current assets:
Cash and temporary cash investments 9,496 1,811
Accounts receivable:
Customer 9,932 13,372
Associated companies 1,921 3,019
Other 7,307 8,298
Production fuel, at average cost 14,851 20,105
Materials and supplies, at average cost 21,117 20,025
Gas stored underground, at average cost 5,924 10,738
Regulatory assets 3,707 3,707
Prepaid gross receipts tax 16,882 22,222
Other 1,413 6,987
-------------- -----------------
92,550 110,284
-------------- -----------------
- --------------------------------------------------------------------------------
Investments:
Nuclear decommissioning trust funds 149,627 134,112
Other 15,476 15,960
-------------- -----------------
165,103 150,072
-------------- -----------------
- --------------------------------------------------------------------------------
Other assets:
Regulatory assets 74,788 76,284
Deferred charges and other 113,058 111,147
-------------- -----------------
187,846 187,431
-------------- -----------------
- --------------------------------------------------------------------------------
Total assets $ 1,667,906 $ 1,685,150
============== =================
- --------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
17
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED BALANCE SHEETS (CONTINUED)
March 31,
1999 December 31,
CAPITALIZATION AND LIABILITIES (Unaudited) 1998
- ---------------------------------------------------------------------------------------------------------
(in thousands, except share amounts)
Capitalization:
Common stock - $5 par value - authorized 18,000,000
shares; 13,236,601 shares outstanding $ 66,183 $ 66,183
Additional paid-in capital 199,438 199,438
Retained earnings 305,181 294,309
----------------- -----------------
Total common equity 570,802 559,930
----------------- -----------------
Cumulative preferred stock, not mandatorily redeemable
without par value - authorized 3,750,000 shares, maximum
aggregate stated value $150,000,000:
$100 stated value - 449,765 shares outstanding 44,977 44,977
$25 stated value - 599,460 shares outstanding 14,986 14,986
----------------- -----------------
Total cumulative preferred stock 59,963 59,963
----------------- -----------------
Long-term debt (excluding current portion) 414,603 414,579
----------------- -----------------
1,045,368 1,034,472
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------
Current liabilities:
Variable rate demand bonds 56,975 56,975
Notes payable 50,000 50,000
Notes payable to associated companies 1,102 26,799
Accounts payable 70,884 84,754
Accounts payable to associated companies 16,468 20,315
Accrued payroll and vacations 5,052 5,276
Accrued interest 8,093 6,863
Accrued taxes 16,502 740
Other 10,197 13,860
----------------- -----------------
235,273 265,582
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------
Other long-term liabilities and deferred credits:
Accumulated deferred income taxes 243,750 245,489
Accumulated deferred investment tax credits 32,705 33,170
Customer advances 33,253 34,367
Environmental liabilities 11,644 11,683
Other 65,913 60,387
----------------- -----------------
387,265 385,096
----------------- -----------------
- ---------------------------------------------------------------------------------------------------------
Total capitalization and liabilities $ 1,667,906 $ 1,685,150
================= =================
- ---------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
18
WISCONSIN POWER AND LIGHT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three Months Ended March 31,
1999 1998
- -------------------------------------------------------------------------------------------------------------------
(in thousands)
Cash flows from operating activities:
Net income $ 26,288 $ 17,598
Adjustments to reconcile net income to net cash
flows from operating activities:
Depreciation and amortization 31,139 29,258
Amortization of nuclear fuel 1,525 1,427
Deferred taxes and investment tax credits (1,578) (1,607)
Other (1,617) (457)
Other changes in assets and liabilities:
Accounts receivable 5,529 15,460
Production fuel 5,254 4,889
Materials and supplies (1,092) (32)
Gas stored underground 4,814 8,768
Prepaid gross receipts tax 5,340 4,912
Accounts payable (17,717) (3,302)
Accrued taxes 15,762 10,396
Adjustment clause balances 7,157 3,691
Benefit obligations and other 2,814 (361)
--------------------- ---------------------
Net cash flows from operating activities 83,618 90,640
--------------------- ---------------------
- ---------------------------------------------------------------------------------------------------------------
Cash flows used for financing activities:
Common stock dividends (14,588) (14,586)
Preferred stock dividends (828) (828)
Net change in short-term borrowings (25,697) (42,500)
--------------------- ---------------------
Net cash flows used for financing activities (41,113) (57,914)
--------------------- ---------------------
- ---------------------------------------------------------------------------------------------------------------
Cash flows used for investing activities:
Construction expenditures - utility (18,967) (15,584)
Nuclear decommissioning trust funds (13,935) (12,140)
Shared savings expenditures (2,519) (1,808)
Other 601 477
--------------------- ---------------------
Net cash flows used for investing activities (34,820) (29,055)
--------------------- ---------------------
- ---------------------------------------------------------------------------------------------------------------
Net increase in cash and temporary cash investments 7,685 3,671
--------------------- ---------------------
- ---------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at beginning of period 1,811 2,492
--------------------- ---------------------
- ---------------------------------------------------------------------------------------------------------------
Cash and temporary cash investments at end of period $ 9,496 $ 6,163
===================== =====================
- ---------------------------------------------------------------------------------------------------------------
Supplemental cash flow information:
Cash paid (refunded) during the period for:
Interest $ 8,468 $ 8,150
===================== =====================
Income taxes $ (357) $ 1,668
===================== =====================
- ---------------------------------------------------------------------------------------------------------------
The accompanying Notes to Consolidated Financial Statements are an integral part
of these statements.
19
WISCONSIN POWER AND LIGHT COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Except as modified below, the IEC Notes to Consolidated Financial
Statements are incorporated by reference insofar as they relate to WP&L.
IEC Notes 5 and 6 do not relate to WP&L and, therefore, are not
incorporated by reference.
1. The interim consolidated financial statements included herein have been
prepared by WP&L, without audit, pursuant to the rules and regulations of
the SEC. Accordingly, certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted,
although management believes that the disclosures are adequate to make
the information presented not misleading. The consolidated financial
statements include WP&L and its consolidated subsidiary. WP&L is a
subsidiary of IEC. These financial statements should be read in
conjunction with the financial statements and the notes thereto included
in WP&L's latest Annual Report on Form 10-K.
In the opinion of management, all adjustments, which are normal and
recurring in nature, necessary for a fair presentation of (a) the
consolidated results of operations for the three months ended March 31,
1999 and 1998, (b) the consolidated financial position at March 31, 1999
and December 31, 1998, and (c) the consolidated statement of cash flows
for the three months ended March 31, 1999 and 1998, have been made.
Because of the seasonal nature of WP&L's operations, results for the
three months ended March 31, 1999 are not necessarily indicative of
results that may be expected for the year ending December 31, 1999.
Certain prior period amounts have been reclassified on a basis consistent
with the 1999 presentation.
20
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Alliant
Energy Corporation, IES Utilities Inc. and Wisconsin Power and Light Company
have each duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized on the 1st day of November 1999.
ALLIANT ENERGY CORPORATION
Registrant
By: /s/ John E. Ebright Vice President-Controller
John E. Ebright (Principal Accounting Officer)
IES UTILITIES INC.
Registrant
By: /s/ John E. Ebright Vice President-Controller
John E. Ebright (Principal Accounting Officer)
WISCONSIN POWER AND LIGHT COMPANY
Registrant
By: /s/ John E. Ebright Vice President-Controller
John E. Ebright (Principal Accounting Officer)
21