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 27, 1994
NEW JERSEY RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
New Jersey 1-8359 22-2376465
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1415 Wyckoff Road 07719
Wall, New Jersey (Zip Code)
(Address of principal executive
offices)
(908)938-1480
(Registrant's telephone number, including area code)
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Item 5. Other Items
a.) Change in accounting principle
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On April 27, 1994, New Jersey Resources Corporation (the Company)
announced that in conjunction with a shift in the strategic
direction of NJR Energy Corp., its energy subsidiary, it was
changing the accounting method for its natural gas and oil
operations from the full cost method to the successful efforts
method.
The Company will reallocate much of the capital previously
dedicated to the development of natural gas and oil reserves for
use in investment opportunities with closer strategic ties to the
rest of the Company's energy business such as gas gathering,
storage and marketing. No further exploration activity is
planned. The successful efforts accounting method generally
requires that costs attributable to unsuccessful exploratory
wells be expensed in the period incurred. Under the full cost
accounting method, all productive and nonproductive costs related
to exploration and development activity are capitalized and
subject to a "ceiling" test as calculated under the rules of the
Securities and Exchange Commission.
This change in accounting principle requires a restatement of
prior years' financial statements. Accordingly, the Company will
file Form 10-K/A for the year ended September 30, 1993 and Form
10-Q/A for the three months ended December 31, 1993. The
cumulative effect of this change, as of September 30, 1993, is to
reduce retained earnings by $17.2 million, or $1.03 per share of
book value. The Company remains in compliance with all loan
covenants.
The impact on earnings for the fiscal years 1989 to 1993 is
summarized below:
(Millions, except per share data)
Net Income 1993 1992 1991 1990 1989
---- ---- ---- ---- ----
As previously reported $28.5 $23.5 $11.3 $13.0 $16.4
As restated $27.2 $22.2 $8.4 $9.1 $13.5
Earnings per share 1993 1992 1991 1990 1989
---- ---- ---- ---- ----
As previously reported $1.72 $1.64 $.83 $.97 $1.45
As restated $1.64 $1.55 $.61 $.68 $1.19
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The impact on earnings for the fiscal quarters ended December 31,
1993 and 1992 is summarized below:
As previously reported: Three Months Ended,
December 31,
1993 1992
---- ----
Net income before cumulative effect of change
in accounting for income taxes $10.4 $9.9
Cumulative effect of change in accounting
for income taxes 1.0 -
----- -----
Net income available for common stock $11.4 $9.9
===== ====
Earnings per common share before cumulative
effect of change in accounting for income taxes $.62 $.61
Cumulative effect of change in accounting
for income taxes .06 -
---- -----
Earnings per common share $.68 $.61
==== ====
As restated: Three Months Ended,
December 31,
1993 1992
---- ----
Net income before cumulative effect of change
in accounting for income taxes $10.5 $9.7
Cumulative effect of change in accounting
for income taxes .7 -
----- ----
Net income available for common stock $11.2 $9.7
===== ====
Earnings per common share before cumulative effect
of change in accounting for income taxes $.62 $.59
Cumulative effect of change in accounting
for income taxes .04 -
---- -----
Earnings per common share $.66 $.59
==== ====
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b.) Bessie-8
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Reference is made to Note 5 to the Consolidated Financial
Statements - Legal and Regulatory Proceedings - j. Bessie-8 in the
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Company's December 31, 1993 Quarterly Report on Form 10-Q/A
concerning New Jersey Natural Resources Company's (NJNR's)
investment in the Bessie-8 pipeline. In January 1994, the owners
of the plant previously served by the Bessie-8 pipeline entered
into a three-year natural gas contract with another supplier. In
March 1994, NJNR concluded that, based on meetings with its
partners to discuss various alternatives for the pipeline, the
recovery of NJNR's net investment of $1 million is doubtful.
Accordingly, the results for the three and six months ended March
31, 1994 include an after-tax charge to earnings of $650,000, or
$.04 per share.
SIGNATURE
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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.
NEW JERSEY RESOURCES CORPORATION
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Date: April 27, 1994 By: /s/Laurence M. Downes
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Laurence M. Downes
Senior Vice President and
Chief Financial Officer