Exhibit 13.1
SIX-YEAR
FINANCIAL REVIEW
Years ended December 31, 1998 1997 1996 1995 1994 1993
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(In thousands, except per share data)
REVENUES:
Natural gas distribution $667,106 $ 754,481 $ 755,391 $698,123 $708,694 $659,310
Marine transportation 261,061 269,259 301,880 296,339 264,692 254,921
Other services 7,097 -- -- -- -- --
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TOTAL REVENUES 935,264 1,023,740 1,057,271 994,462 973,386 914,231
OPERATING EARNINGS:
Natural gas distribution 88,913 87,773 77,291 69,264 73,438 56,421
Marine transportation 26,634 34,614 58,415 57,828 35,805 33,001
Other services (9,043) (1,481) -- -- -- --
Headquarters (6,099) (5,589) (5,472) (5,756) (4,221) (4,675)
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TOTAL OPERATING EARNINGS 100,405 115,317 130,234 121,336 105,022 84,747
OTHER INCOME (EXPENSE):
Interest income 7,582 8,997 9,419 5,633 1,953 3,213
Interest expense (33,584) (37,411) (37,290) (41,273) (41,001) (37,740)
Other, net 5,591 (4,033) (114) 4,109 2,546 (1,241)
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EARNINGS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 79,994 82,870 102,249 89,805 68,520 48,979
Provision for income taxes 29,166 26,954 37,748 26,244 26,311 20,077
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EARNINGS FROM CONTINUING OPERATIONS
BEFORE EXTRAORDINARY ITEMS AND
ACCOUNTING CHANGE 50,828 55,916 64,501 63,561 42,209 28,902
Discontinued operations and
accounting change (1) 8,193 -- -- -- 12,212 (58,182)
Extraordinary items (2) 46,960 -- -- (6,500) -- (45,500)
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NET EARNINGS (LOSS) $105,981 $ 55,916 $ 64,501 $ 57,061 $ 54,421 $(74,780)
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NUMBER OF COMMON SHARES:
Outstanding at year end 22,525 22,383 22,248 22,097 22,272 22,758
Diluted weighted average 22,680 22,498 22,414 22,171 22,626 24,256
DILUTED PER SHARE DATA:(3)
EARNINGS FROM CONTINUING OPERATIONS
BEFORE EXTRAORDINARY ITEMS AND
ACCOUNTING CHANGE $2.24 $2.49 $2.88 $2.87 $1.87 $ 1.19
Discontinued operations and
accounting change(1) 0.36 -- -- -- 0.54 (2.39)
Extraordinary items(2) 2.07 -- -- (0.30) -- (1.88)
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NET EARNINGS (LOSS) $4.67 $2.49 $2.88 $2.57 $2.41 $(3.08)
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Dividends declared $ 1.65 $ 1.61 $ 1.51 $ 1.42 $ 1.40 $ 1.40
Shareholders' equity 24.24 21.64 20.72 19.30 18.09 17.17
FINANL STATISTICS AND RATIOS:
Cash from operating activities $ 134,256 $ 146,640 $ 128,439 $ 163,359 $ 121,885 $ 42,750
Capital expenditures 113,712 89,216 119,783 85,352 64,014 68,122
Depreciation and amortization 75,521 71,322 67,229 64,005 61,197 55,375
Total assets 1,518,370 1,530,365 1,514,853 1,463,924 1,422,830 1,439,726
Long-term debt 385,519 371,492 367,683 379,018 387,901 351,829
Shareholders' equity 546,069 484,470 461,013 426,473 403,004 390,723
Debt/equity ratio 41/59 43/57 44/56 47/53 49/51 47/53
Return on total capital(4) 8.0% 9.3% 10.6% 10.9% 8.5% 6.1%
Return on equity(4) 9.9% 11.9% 14.6% 15.4% 10.6% 6.2%
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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 and 1993.
(2) Provision (credits) for Coal Act liabilities of $(74,500), $10,000 and $70,000 pre-tax in 1998, 1995 and 1993, respectively
and loss on early extinguishment of debt of $2.3 million pre-tax in 1998.
(3) Basic earnings per share from continuing operations before extraordinary items and accounting change were $2.26, $2.50,
$2.90, $2.88 and $1.19 for 1998 through 1993, respectively.
(4) Based on earnings from continuing operations before extraordinary items and accounting change.
STOCK PRICE RANGE
1998 1997
QUARTER HIGH LOW HIGH LOW
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FIRST $45 5/8 $40 3/8 $36 3/8 $30 1/2
SECOND 44 3/4 37 5/8 35 7/8 30 1/2
THIRD 43 1/2 38 1/4 38 1/16 34 3/4
FOURTH 44 1/4 40 45 3/8 36 3/4
DIVIDENDS DECLARED PER SHARE
QUARTER 1998 1997
- ------- ---- ----
FIRST $ .41 $ .40
SECOND .41 .40
THIRD .41 .40
FOURTH .42 .41
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TOTAL $1.65 $1.61
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