Exhibit 13.1
SIX-YEAR FINANCIAL REVIEW
Years ended December 31, 1999 1998 1997 1996 1995 1994
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(In thousands, except per share amounts)
REVENUES:
Natural gas distribution $690,809 $667,106 $ 754,481 $ 755,391 $698,123 $708,694
Marine transportation 267,269 261,061 269,259 301,880 296,339 264,692
Other services 20,624 7,097 -- -- -- --
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TOTAL REVENUES 978,702 935,264 1,023,740 1,057,271 994,462 973,386
OPERATING EARNINGS:
Natural gas distribution 101,359 88,913 87,773 77,291 69,264 73,438
Marine transportation 21,114 26,634 34,614 58,415 57,828 35,805
Other services (2,932) (9,043) (1,481) -- -- --
Headquarters (6,102) (6,099) (5,589) (5,472) (5,756) (4,221)
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TOTAL OPERATING EARNINGS 113,439 100,405 115,317 130,234 121,336 105,022
OTHER INCOME (EXPENSE):
Interest income 7,964 7,582 8,997 9,419 5,633 1,953
Interest expense (39,136) (33,584) (37,411) (37,290) (41,273) (41,001)
Other, net 8,980 5,591 (4,033) (114) 4,109 2,546
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EARNINGS FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 91,247 79,994 82,870 102,249 89,805 68,520
Provision for income taxes 36,154 29,166 26,954 37,748 26,244 26,311
EARNINGS FROM CONTINUING OPERATIONS BEFORE
EXTRAORDINARY ITEMS AND ACCOUNTING CHANGE 55,093 50,828 55,916 64,501 63,561 42,209
Discontinued operations and accounting change (1) -- 8,193 -- -- -- 12,212
Extraordinary items(2) -- 46,960 -- -- (6,500) --
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NET EARNINGS $ 55,093 $105,981 $ 55,916 $ 64,501 $ 57,061 $ 54,421
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NUMBER OF COMMON SHARES:
Outstanding at year end 27,114 22,525 22,383 22,248 22,097 22,272
Diluted weighted average 24,254 22,680 22,498 22,414 22,171 22,626
DILUTED PER SHARE DATA:
EARNINGS FROM CONTINUING OPERATIONS BEFORE
EXTRAORDINARY ITEMS AND ACCOUNTING CHANGE(3) $2.27 $2.24 $2.49 $2.88 $2.87 $1.87
Discontinued operations and accounting change(1) -- 0.3 -- -- -- 0.54
Extraordinary items(2) -- 2.07 -- -- (0.30) --
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NET EARNINGS $2.27 $4.67 $2.49 $2.88 $2.57 $2.41
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Dividends declared $ 1.69 $ 1.65 $ 1.61 $ 1.51 $ 1.42 $ 1.40
Shareholders' equity 27.83 24.24 21.64 20.72 19.30 18.09
FINANCIAL STATISTICS AND RATIOS:
Cash from operating activities $ 113,931 $ 134,256 $ 146,640 $ 128,439 $ 163,359 $ 121,885
Capital expenditures 88,117 113,712 89,216 119,783 85,352 64,014
Depreciation and amortization 81,373 75,521 71,322 67,229 64,005 61,197
Total assets 2,019,757 1,518,612 1,530,365 1,514,853 1,463,924 1,422,830
Long-term debt 515,232 385,519 371,492 367,683 379,018 387,901
Shareholders' equity 754,630 546,069 484,470 461,013 426,473 403,004
Debt/equity ratio 41/59 41/59 43/57 44/56 47/53 49/51
Return on total capital(4) 7.0% 8.0% 9.3% 10.6% 10.9% 8.5%
Return on equity(4) 8.5% 9.9% 11.9% 14.6% 15.4% 10.6%
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(1) Includes accounting change to adopt accrual method for unbilled revenue in 1998, and results from Water Products Group net of
tax in 1994.
(2) Provision (credits) for Coal Act liabilities of $(74,500) and $10,000 pre-tax in 1998 and 1995, respectively, and loss on
early extinguishment of debt of $2,255 pre-tax in 1998.
(3) Basic earnings per share from continuing operations before extraordinary items and accounting change were $2.28, $2.26, $2.50,
$2.90, $2.88 and $1.87 for 1999 through 1994, respectively.
(4) Based on earnings from continuing operations before extraordinary items and accounting change.
STOCK PRICE RANGE
1999 1998
QUARTER HIGH LOW HIGH LOW
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FIRST $45 $36 3/8 $45 5/8 $40 3/8
SECOND 40 9/16 33 1/2 44 3/4 37 5/8
THIRD 47 3/8 38 1/16 43 1/2 38 1/4
FOURTH 57 7/16 46 44 1/4 40
DIVIDENDS DECLARED PER SHARE
QUARTER 1998 1997
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FIRST $ .42 $ .41
SECOND .42 .41
THIRD .42 .41
FOURTH .43 .42
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TOTAL $1.69 $1.65
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