California
|
88-0085720
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
|
5241
Spring Mountain Road
|
||
Post
Office Box 98510
|
||
Las
Vegas, Nevada
|
89193-8510
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer X
|
Accelerated
filer __
|
Non-accelerated
filer __
|
Smaller
reporting company
__
|
Yes
__ No X
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
|||||||
June 30,
2008
|
||||||||
PART I - FINANCIAL
INFORMATION
|
||||||||
ITEM
1. FINANCIAL STATEMENTS
|
||||||||
SOUTHWEST
GAS CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(Thousands
of dollars, except par value)
|
||||||||
(Unaudited)
|
||||||||
JUNE
30,
|
DECEMBER
31,
|
|||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Utility
plant:
|
||||||||
Gas
plant
|
$ | 4,177,855 | $ | 4,043,936 | ||||
Less:
accumulated depreciation
|
(1,309,729 | ) | (1,261,867 | ) | ||||
Acquisition
adjustments, net
|
1,722 | 1,812 | ||||||
Construction
work in progress
|
42,301 | 61,419 | ||||||
Net
utility plant
|
2,912,149 | 2,845,300 | ||||||
Other
property and investments
|
145,134 | 143,097 | ||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
16,511 | 31,991 | ||||||
Accounts
receivable, net of allowances
|
139,628 | 203,660 | ||||||
Accrued
utility revenue
|
33,700 | 74,900 | ||||||
Income
taxes receivable, net
|
223 | 14,286 | ||||||
Deferred
income taxes
|
7,752 | 6,965 | ||||||
Deferred
purchased gas costs
|
- | 33,946 | ||||||
Prepaids
and other current assets
|
71,599 | 136,711 | ||||||
Total
current assets
|
269,413 | 502,459 | ||||||
Deferred
charges and other assets
|
165,534 | 179,332 | ||||||
Total
assets
|
$ | 3,492,230 | $ | 3,670,188 | ||||
CAPITALIZATION
AND LIABILITIES
|
||||||||
Capitalization:
|
||||||||
Common
stock, $1 par (authorized - 60,000,000 shares; issued
|
||||||||
and
outstanding - 43,462,193 and 42,805,706 shares)
|
$ | 45,092 | $ | 44,436 | ||||
Additional
paid-in capital
|
750,685 | 732,319 | ||||||
Accumulated
other comprehensive income (loss), net
|
(12,445 | ) | (12,850 | ) | ||||
Retained
earnings
|
246,617 | 219,768 | ||||||
Total
equity
|
1,029,949 | 983,673 | ||||||
Subordinated
debentures due to Southwest Gas Capital II
|
100,000 | 100,000 | ||||||
Long-term
debt, less current maturities
|
1,168,733 | 1,266,067 | ||||||
Total
capitalization
|
2,298,682 | 2,349,740 | ||||||
Current
liabilities:
|
||||||||
Current
maturities of long-term debt
|
38,040 | 38,079 | ||||||
Short-term
debt
|
- | 9,000 | ||||||
Accounts
payable
|
98,047 | 220,731 | ||||||
Customer
deposits
|
79,047 | 75,019 | ||||||
Accrued
general taxes
|
38,361 | 44,637 | ||||||
Accrued
interest
|
20,682 | 21,290 | ||||||
Deferred
purchased gas costs
|
31,533 | 46,088 | ||||||
Other
current liabilities
|
80,596 | 73,088 | ||||||
Total
current liabilities
|
386,306 | 527,932 | ||||||
Deferred
income taxes and other credits:
|
||||||||
Deferred
income taxes and investment tax credits
|
357,743 | 347,497 | ||||||
Taxes
payable
|
4,093 | 4,387 | ||||||
Accumulated
removal costs
|
157,000 | 146,000 | ||||||
Other
deferred credits
|
288,406 | 294,632 | ||||||
Total
deferred income taxes and other credits
|
807,242 | 792,516 | ||||||
Total
capitalization and liabilities
|
$ | 3,492,230 | $ | 3,670,188 | ||||
The
accompanying notes are an integral part of these
statements.
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
|||||||||||||||||||||||
June 30,
2008
|
||||||||||||||||||||||||
SOUTHWEST
GAS CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
THREE
MONTHS ENDED
|
SIX
MONTHS ENDED
|
TWELVE
MONTHS ENDED
|
||||||||||||||||||||||
JUNE
30,
|
JUNE
30,
|
JUNE
30,
|
||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||
Operating
revenues:
|
||||||||||||||||||||||||
Gas
operating revenues
|
$ | 353,003 | $ | 344,233 | $ | 1,094,303 | $ | 1,071,248 | $ | 1,837,821 | $ | 1,836,332 | ||||||||||||
Construction
revenues
|
94,301 | 82,304 | 166,608 | 149,005 | 354,925 | 300,836 | ||||||||||||||||||
Total
operating revenues
|
447,304 | 426,537 | 1,260,911 | 1,220,253 | 2,192,746 | 2,137,168 | ||||||||||||||||||
Operating
expenses:
|
||||||||||||||||||||||||
Net
cost of gas sold
|
204,580 | 198,417 | 705,279 | 692,628 | 1,098,845 | 1,114,296 | ||||||||||||||||||
Operations
and maintenance
|
83,603 | 83,090 | 168,809 | 167,625 | 332,392 | 333,158 | ||||||||||||||||||
Depreciation
and amortization
|
48,208 | 45,455 | 95,478 | 90,077 | 187,915 | 176,405 | ||||||||||||||||||
Taxes
other than income taxes
|
9,616 | 9,938 | 19,810 | 20,405 | 36,958 | 39,162 | ||||||||||||||||||
Construction
expenses
|
84,009 | 71,992 | 150,267 | 130,985 | 313,314 | 260,993 | ||||||||||||||||||
Total
operating expenses
|
430,016 | 408,892 | 1,139,643 | 1,101,720 | 1,969,424 | 1,924,014 | ||||||||||||||||||
Operating
income
|
17,288 | 17,645 | 121,268 | 118,533 | 223,322 | 213,154 | ||||||||||||||||||
Other
income and (expenses):
|
||||||||||||||||||||||||
Net
interest deductions
|
(21,390 | ) | (21,766 | ) | (43,258 | ) | (43,269 | ) | (88,461 | ) | (86,672 | ) | ||||||||||||
Net
interest deductions on subordinated debentures
|
(1,932 | ) | (1,932 | ) | (3,864 | ) | (3,863 | ) | (7,728 | ) | (7,725 | ) | ||||||||||||
Other
income (deductions)
|
353 | 4,416 | (409 | ) | 6,273 | (46 | ) | 13,457 | ||||||||||||||||
Total
other income and (expenses)
|
(22,969 | ) | (19,282 | ) | (47,531 | ) | (40,859 | ) | (96,235 | ) | (80,940 | ) | ||||||||||||
Income
(loss) before income taxes
|
(5,681 | ) | (1,637 | ) | 73,737 | 77,674 | 127,087 | 132,214 | ||||||||||||||||
Income
tax expense (benefit)
|
(2,956 | ) | (1,300 | ) | 27,310 | 28,247 | 46,841 | 46,816 | ||||||||||||||||
Net
income (loss)
|
$ | (2,725 | ) | $ | (337 | ) | $ | 46,427 | $ | 49,427 | $ | 80,246 | $ | 85,398 | ||||||||||
Basic
earnings (loss) per share
|
$ | (0.06 | ) | $ | (0.01 | ) | $ | 1.08 | $ | 1.17 | $ | 1.87 | $ | 2.05 | ||||||||||
Diluted
earnings (loss) per share
|
$ | (0.06 | ) | $ | (0.01 | ) | $ | 1.07 | $ | 1.16 | $ | 1.86 | $ | 2.03 | ||||||||||
Dividends
declared per share
|
$ | 0.225 | $ | 0.215 | $ | 0.45 | $ | 0.43 | $ | 0.88 | $ | 0.84 | ||||||||||||
Average
number of common shares outstanding
|
43,324 | 42,226 | 43,168 | 42,103 | 42,865 | 41,691 | ||||||||||||||||||
Average
shares outstanding (assuming dilution)
|
- | - | 43,466 | 42,516 | 43,186 | 42,126 | ||||||||||||||||||
The
accompanying notes are an integral part of these
statements.
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
|||||||||||||||
June 30,
2008
|
||||||||||||||||
SOUTHWEST
GAS CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
(Thousands
of dollars)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
SIX
MONTHS ENDED
|
TWELVE
MONTHS ENDED
|
|||||||||||||||
JUNE
30,
|
JUNE
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
CASH
FLOW FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net
income
|
$ | 46,427 | $ | 49,427 | $ | 80,246 | $ | 85,398 | ||||||||
Adjustments
to reconcile net income to net
|
||||||||||||||||
cash
provided by operating activities:
|
||||||||||||||||
Depreciation
and amortization
|
95,478 | 90,077 | 187,915 | 176,405 | ||||||||||||
Deferred
income taxes
|
9,211 | (26,385 | ) | 51,664 | (13,932 | ) | ||||||||||
Changes
in current assets and liabilities:
|
||||||||||||||||
Accounts
receivable, net of allowances
|
64,032 | 84,328 | 1,972 | (11,123 | ) | |||||||||||
Accrued
utility revenue
|
41,200 | 40,200 | (600 | ) | 100 | |||||||||||
Deferred
purchased gas costs
|
19,391 | 59,923 | 48,617 | 71,859 | ||||||||||||
Accounts
payable
|
(122,684 | ) | (157,807 | ) | (9,885 | ) | 25,230 | |||||||||
Accrued
taxes
|
7,493 | 29,400 | (38,444 | ) | 12,940 | |||||||||||
Other
current assets and liabilities
|
47,451 | 69,544 | 2,879 | 5,781 | ||||||||||||
Other
|
(7,666 | ) | (2,869 | ) | (12,058 | ) | (5,250 | ) | ||||||||
Net
cash provided by operating activities
|
200,333 | 235,838 | 312,306 | 347,408 | ||||||||||||
CASH
FLOW FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Construction
expenditures and property additions
|
(153,609 | ) | (174,083 | ) | (320,401 | ) | (368,617 | ) | ||||||||
Other
|
44,532 | 17,521 | 35,951 | 31,133 | ||||||||||||
Net
cash used in investing activities
|
(109,077 | ) | (156,562 | ) | (284,450 | ) | (337,484 | ) | ||||||||
CASH
FLOW FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Issuance
of common stock, net
|
19,022 | 21,007 | 33,112 | 56,139 | ||||||||||||
Dividends
paid
|
(19,003 | ) | (17,688 | ) | (37,586 | ) | (34,867 | ) | ||||||||
Issuance
of long-term debt
|
32,427 | 66,952 | 94,069 | 123,516 | ||||||||||||
Retirement
of long-term debt
|
(30,182 | ) | (55,589 | ) | (116,684 | ) | (135,538 | ) | ||||||||
Change
in long-term portion of credit facility
|
(100,000 | ) | (92,000 | ) | (5,000 | ) | (7,000 | ) | ||||||||
Change
in short-term debt
|
(9,000 | ) | - | - | - | |||||||||||
Net
cash provided by (used in) financing activities
|
(106,736 | ) | (77,318 | ) | (32,089 | ) | 2,250 | |||||||||
Change
in cash and cash equivalents
|
(15,480 | ) | 1,958 | (4,233 | ) | 12,174 | ||||||||||
Cash
at beginning of period
|
31,991 | 18,786 | 20,744 | 8,570 | ||||||||||||
Cash
at end of period
|
$ | 16,511 | $ | 20,744 | $ | 16,511 | $ | 20,744 | ||||||||
Supplemental
information:
|
||||||||||||||||
Interest
paid, net of amounts capitalized
|
$ | 46,207 | $ | 43,705 | $ | 95,837 | $ | 90,470 | ||||||||
Income
taxes paid
|
3,693 | 17,994 | 30,724 | 45,139 | ||||||||||||
The
accompanying notes are an integral part of these
statements.
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
|
||||||||||||||||||||||||
Qualified
Retirement Plan
|
||||||||||||||||||||||||
Period
Ended June 30,
|
||||||||||||||||||||||||
Three
Months
|
Six
Months
|
Twelve
Months
|
||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||
(Thousands
of dollars)
|
||||||||||||||||||||||||
Service
cost
|
$ | 4,027 | $ | 4,122 | $ | 8,054 | $ | 8,245 | $ | 16,300 | $ | 16,387 | ||||||||||||
Interest
cost
|
8,123 | 7,311 | 16,245 | 14,622 | 30,867 | 28,025 | ||||||||||||||||||
Expected
return on plan assets
|
(8,678 | ) | (8,258 | ) | (17,356 | ) | (16,516 | ) | (33,870 | ) | (31,820 | ) | ||||||||||||
Amortization
of prior service costs (credits)
|
(3 | ) | (3 | ) | (5 | ) | (5 | ) | (11 | ) | (10 | ) | ||||||||||||
Amortization
of net loss
|
776 | 1,252 | 1,552 | 2,503 | 4,056 | 5,179 | ||||||||||||||||||
Net
periodic benefit cost
|
$ | 4,245 | $ | 4,424 | $ | 8,490 | $ | 8,849 | $ | 17,342 | $ | 17,761 | ||||||||||||
SERP
|
||||||||||||||||||||||||
Period
Ended June 30,
|
||||||||||||||||||||||||
Three
Months
|
Six
Months
|
Twelve
Months
|
||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||
(Thousands
of dollars)
|
||||||||||||||||||||||||
Service
cost
|
$ | 24 | $ | 38 | $ | 49 | $ | 77 | $ | 125 | $ | 183 | ||||||||||||
Interest
cost
|
511 | 487 | 1,021 | 974 | 1,995 | 1,920 | ||||||||||||||||||
Amortization
of prior service costs
|
- | - | - | - | - | 4 | ||||||||||||||||||
Amortization
of net loss
|
249 | 283 | 498 | 565 | 1,064 | 1,187 | ||||||||||||||||||
Net
periodic benefit cost
|
$ | 784 | $ | 808 | $ | 1,568 | $ | 1,616 | $ | 3,184 | $ | 3,294 | ||||||||||||
PBOP
|
||||||||||||||||||||||||
Period
Ended June 30,
|
||||||||||||||||||||||||
Three
Months
|
Six
Months
|
Twelve
Months
|
||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||
(Thousands
of dollars)
|
||||||||||||||||||||||||
Service
cost
|
$ | 183 | $ | 203 | $ | 366 | $ | 405 | $ | 772 | $ | 832 | ||||||||||||
Interest
cost
|
581 | 576 | 1,162 | 1,152 | 2,314 | 2,211 | ||||||||||||||||||
Expected
return on plan assets
|
(535 | ) | (536 | ) | (1,070 | ) | (1,072 | ) | (2,142 | ) | (1,981 | ) | ||||||||||||
Amortization
of transition obligation
|
217 | 217 | 434 | 434 | 867 | 867 | ||||||||||||||||||
Amortization
of net loss
|
- | 14 | - | 29 | 28 | 113 | ||||||||||||||||||
Net
periodic benefit cost
|
$ | 446 | $ | 474 | $ | 892 | $ | 948 | $ | 1,839 | $ | 2,042 |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Natural
Gas
|
Construction
|
|||||||||||
Operations
|
Services
|
Total
|
||||||||||
Three
months ended June 30, 2008
|
||||||||||||
Revenues
from external customers
|
$ | 353,003 | $ | 78,194 | $ | 431,197 | ||||||
Intersegment
revenues
|
-- | 16,107 | 16,107 | |||||||||
Total
|
$ | 353,003 | $ | 94,301 | $ | 447,304 | ||||||
Segment
net income (loss)
|
$ | (4,907 | ) | $ | 2,182 | $ | (2,725 | ) | ||||
Three
months ended June 30, 2007
|
||||||||||||
Revenues
from external customers
|
$ | 344,233 | $ | 65,947 | $ | 410,180 | ||||||
Intersegment
revenues
|
-- | 16,357 | 16,357 | |||||||||
Total
|
$ | 344,233 | $ | 82,304 | $ | 426,537 | ||||||
Segment
net income (loss)
|
$ | (2,855 | ) | $ | 2,518 | $ | (337 | ) | ||||
Six
months ended June 30, 2008
|
||||||||||||
Revenues
from external customers
|
$ | 1,094,303 | $ | 137,524 | $ | 1,231,827 | ||||||
Intersegment
revenues
|
-- | 29,084 | 29,084 | |||||||||
Total
|
$ | 1,094,303 | $ | 166,608 | $ | 1,260,911 | ||||||
Segment
net income
|
$ | 44,426 | $ | 2,001 | $ | 46,427 | ||||||
Six
months ended June 30, 2007
|
||||||||||||
Revenues
from external customers
|
$ | 1,071,248 | $ | 115,157 | $ | 1,186,405 | ||||||
Intersegment
revenues
|
-- | 33,848 | 33,848 | |||||||||
Total
|
$ | 1,071,248 | $ | 149,005 | $ | 1,220,253 | ||||||
Segment
net income
|
$ | 45,773 | $ | 3,654 | $ | 49,427 | ||||||
Twelve
months ended June 30, 2008
|
||||||||||||
Revenues
from external customers
|
$ | 1,837,821 | $ | 288,304 | $ | 2,126,125 | ||||||
Intersegment
revenues
|
-- | 66,621 | 66,621 | |||||||||
Total
|
$ | 1,837,821 | $ | 354,925 | $ | 2,192,746 | ||||||
Segment
net income
|
$ | 71,147 | $ | 9,099 | $ | 80,246 | ||||||
Twelve
months ended June 30, 2007
|
||||||||||||
Revenues
from external customers
|
$ | 1,836,332 | $ | 225,137 | $ | 2,061,469 | ||||||
Intersegment
revenues
|
-- | 75,699 | 75,699 | |||||||||
Total
|
$ | 1,836,332 | $ | 300,836 | $ | 2,137,168 | ||||||
Segment
net income
|
$ | 75,160 | $ | 10,238 | $ | 85,398 |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Three
Months Ended
|
Six
Months Ended
|
Twelve
Months Ended
|
||||||||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||
(Thousands of dollars) | ||||||||||||||||||||||||
Net
income (loss)
|
$ | (2,725 | ) | $ | (337 | ) | $ | 46,427 | $ | 49,427 | $ | 80,246 | $ | 85,398 | ||||||||||
Additional
minimum pension liability
|
||||||||||||||||||||||||
adjustment,
net of $20.3 million tax expense
|
- | - | 33,047 | |||||||||||||||||||||
Net
actuarial gain arising during period, less
|
||||||||||||||||||||||||
amortization
of unamortized benefit plan cost,
|
||||||||||||||||||||||||
net
of tax
|
203 | 245 | 405 | 489 | 732 | 489 | ||||||||||||||||||
Comprehensive
income (loss)
|
$ | (2,522 | ) | $ | (92 | ) | $ | 46,832 | $ | 49,916 | $ | 80,978 | $ | 118,934 |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Fair
Value Measurements Using:
|
||||||||||||||||
Quoted
Prices in Active Markets for Identical Financial Assets and
Liabilities
|
Significant
Other Observable Inputs
|
Significant
Unobservable Inputs
|
||||||||||||||
(Thousands
of dollars)
|
Total
|
Level
1
|
Level
2
|
Level
3
|
||||||||||||
Assets
at fair value:
|
||||||||||||||||
Prepaids
and other current assets - swaps
|
$ | 7,209 | $ | - | $ | 7,209 | $ | - | ||||||||
Deferred
charges and other assets - swaps
|
582 | - | 582 | - | ||||||||||||
Liabilities
at fair value:
|
||||||||||||||||
Other
current liabilities - swaps
|
- | - | - | - | ||||||||||||
Other
deferred credits - swaps
|
- | - | - | - | ||||||||||||
Net
Assets (Liabilities)
|
$ | 7,791 | $ | - | $ | 7,791 | $ | - |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Summary
Operating Results
|
||||||||||||||||||||||||
Period
Ended June 30,
|
||||||||||||||||||||||||
Three
Months
|
Six
Months
|
Twelve
Months
|
||||||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||||||||
(Thousands
of dollars, except per share amounts)
|
||||||||||||||||||||||||
Contribution to net
income (loss)
|
||||||||||||||||||||||||
Natural
gas operations
|
$ | (4,907 | ) | $ | (2,855 | ) | $ | 44,426 | $ | 45,773 | $ | 71,147 | $ | 75,160 | ||||||||||
Construction
services
|
2,182 | 2,518 | 2,001 | 3,654 | 9,099 | 10,238 | ||||||||||||||||||
Net
income (loss)
|
$ | (2,725 | ) | $ | (337 | ) | $ | 46,427 | $ | 49,427 | $ | 80,246 | $ | 85,398 | ||||||||||
Basic earnings (loss)
per share
|
||||||||||||||||||||||||
Natural
gas operations
|
$ | (0.11 | ) | $ | (0.07 | ) | $ | 1.03 | $ | 1.09 | $ | 1.66 | $ | 1.80 | ||||||||||
Construction
services
|
0.05 | 0.06 | 0.05 | 0.08 | 0.21 | 0.25 | ||||||||||||||||||
Consolidated
|
$ | (0.06 | ) | $ | (0.01 | ) | $ | 1.08 | $ | 1.17 | $ | 1.87 | $ | 2.05 | ||||||||||
Natural Gas
Operations
|
||||||||||||||||||||||||
Operating
margin
|
$ | 148,423 | $ | 145,816 | $ | 389,024 | $ | 378,620 | $ | 738,976 | $ | 722,036 |
·
|
Operating
margin increased $2.6 million from the prior
period
|
·
|
Growth-related
margin was $2 million as Southwest’s customer growth level continues to
moderate in the face of a downturn in the housing
market
|
·
|
Southwest’s
project to expand its use of electronic meter reading technology continues
to progress and is over 90 percent
complete
|
·
|
Operating
expenses (operations and maintenance, depreciation and amortization, and
taxes other than income taxes) increased two percent between periods as
general cost increases were partially offset by labor efficiencies
primarily related to the meter reading
project
|
·
|
Arizona
and California rate cases remain on track with hearings completed in
Arizona and scheduled for California in
August
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Quarterly
Analysis
|
||||||||
Three
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
(Thousands
of dollars)
|
||||||||
Gas
operating revenues
|
$ | 353,003 | $ | 344,233 | ||||
Net
cost of gas sold
|
204,580 | 198,417 | ||||||
Operating margin
|
148,423 | 145,816 | ||||||
Operations
and maintenance expense
|
83,603 | 83,090 | ||||||
Depreciation
and amortization
|
41,297 | 39,076 | ||||||
Taxes
other than income taxes
|
9,616 | 9,938 | ||||||
Operating income
|
13,907 | 13,712 | ||||||
Other
income (expense)
|
(636 | ) | 3,648 | |||||
Net
interest deductions
|
20,938 | 21,315 | ||||||
Net
interest deductions on subordinated debentures
|
1,932 | 1,932 | ||||||
Income (loss) before income taxes
|
(9,599 | ) | (5,887 | ) | ||||
Income
tax expense (benefit)
|
(4,692 | ) | (3,032 | ) | ||||
Contribution to consolidated net income (loss)
|
$ | (4,907 | ) | $ | (2,855 | ) |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Six-Month
Analysis
|
||||||||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
(Thousands
of dollars)
|
||||||||
Gas
operating revenues
|
$ | 1,094,303 | $ | 1,071,248 | ||||
Net
cost of gas sold
|
705,279 | 692,628 | ||||||
Operating margin
|
389,024 | 378,620 | ||||||
Operations
and maintenance expense
|
168,809 | 167,625 | ||||||
Depreciation
and amortization
|
81,942 | 77,606 | ||||||
Taxes
other than income taxes
|
19,810 | 20,405 | ||||||
Operating income
|
118,463 | 112,984 | ||||||
Other
income (expense)
|
(2,162 | ) | 5,024 | |||||
Net
interest deductions
|
42,290 | 42,463 | ||||||
Net
interest deductions on subordinated debentures
|
3,864 | 3,863 | ||||||
Income before income taxes
|
70,147 | 71,682 | ||||||
Income
tax expense
|
25,721 | 25,909 | ||||||
Contribution to consolidated net income
|
$ | 44,426 | $ | 45,773 |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Twelve-Month
Analysis
|
||||||||
Twelve
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
(Thousands
of dollars)
|
||||||||
Gas
operating revenues
|
$ | 1,837,821 | $ | 1,836,332 | ||||
Net
cost of gas sold
|
1,098,845 | 1,114,296 | ||||||
Operating margin
|
738,976 | 722,036 | ||||||
Operations
and maintenance expense
|
332,392 | 333,158 | ||||||
Depreciation
and amortization
|
161,426 | 152,144 | ||||||
Taxes
other than income taxes
|
36,958 | 39,162 | ||||||
Operating income
|
208,200 | 197,572 | ||||||
Other
income (expense)
|
(2,336 | ) | 10,192 | |||||
Net
interest deductions
|
86,263 | 84,823 | ||||||
Net
interest deductions on subordinated debentures
|
7,728 | 7,725 | ||||||
Income before income taxes
|
111,873 | 115,216 | ||||||
Income
tax expense
|
40,726 | 40,056 | ||||||
Contribution to consolidated net income
|
$ | 71,147 | $ | 75,160 |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
June
30, 2008
|
December
31, 2007
|
June
30, 2007
|
||||||||||
Arizona
|
$ | (4.6 | ) | $ | 33.9 | $ | 50.3 | |||||
Northern
Nevada
|
(7.2 | ) | (9.2 | ) | (9.9 | ) | ||||||
Southern
Nevada
|
(17.6 | ) | (36.7 | ) | (20.1 | ) | ||||||
California
|
(2.1 | ) | (0.1 | ) | (3.2 | ) | ||||||
$ | (31.5 | ) | $ | (12.1 | ) | $ | 17.1 |
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
For
the Twelve Months Ended
|
||||
June
30,
|
December
31,
|
|||
2008
|
2007
|
|||
Ratio
of earnings to fixed charges
|
2.21
|
2.25
|
||
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
(1)
|
The
eleven directors nominated were
elected.
|
Name
|
Votes
For
|
Votes
Withheld
|
||||
George
C. Biehl
|
36,077,206
|
2,878,551
|
||||
Thomas
E. Chestnut
|
38,408,185
|
547,572
|
||||
Stephen
C. Comer
|
38,286,782
|
668,975
|
||||
Richard
M. Gardner
|
38,377,584
|
578,173
|
||||
James
J. Kropid
|
37,583,702
|
1,372,055
|
||||
Michael
O. Maffie
|
37,422,021
|
1,533,736
|
||||
Anne
L. Mariucci
|
38,396,420
|
559,337
|
||||
Michael
J. Melarkey
|
38,389,941
|
565,816
|
||||
Jeffrey
W. Shaw
|
37,592,667
|
1,363,091
|
||||
Carolyn
M. Sparks
|
37,568,138
|
1,387,619
|
||||
Terrence
L. Wright
|
37,596,731
|
1,359,027
|
(2)
|
The
proposal to ratify the selection of PricewaterhouseCoopers LLP as the
independent registered public accounting firm for the Company was
approved. Shareholders voted 38,568,314 shares in favor,
223,587 against with 163,860
abstentions.
|
The
following documents are filed as part of this report on
Form 10-Q:
|
|||
Exhibit
10.01
|
-
|
Amended
Southwest Gas Corporation 2006 Restricted Stock/Unit
Plan.
|
|
Exhibit
10.02
|
-
|
Southwest
Gas Corporation Management Incentive Plan, amended and restated effective
January
1, 2009
|
|
Exhibit
12.01
|
-
|
Computation
of Ratios of Earnings to Fixed Charges.
|
|
Exhibit
31.01
|
-
|
Section
302 Certifications.
|
|
Exhibit
32.01
|
-
|
Section
906 Certifications.
|
SOUTHWEST GAS
CORPORATION
|
Form
10-Q
|
June 30, 2008
|
Southwest
Gas Corporation
|
|
(Registrant)
|
|
Date: August
6, 2008
|
|
/s/
Roy R. Centrella
|
|
Roy
R. Centrella
|
|
Vice
President/Controller and Chief Accounting
Officer
|