FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-7324
KANSAS GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
KANSAS 48-1093840
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. BOX 208
WICHITA, KANSAS 67201
(Address of Principal Executive Offices)
316/261-6611
(Registrant's telephone number, including area code)
Indicated by check mark whether the registrant (1) has 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
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at October 25, 1996
Common Stock (No par value) 1,000 Shares
Registrant meets the conditions of General Instruction H(1)(a) and (b) to Form
10-Q and is therefore filing this form with a reduced disclosure format.
KANSAS GAS AND ELECTRIC COMPANY
INDEX
Page
PART I. Financial Information
Item 1. Financial Statements
Balance Sheets 3
Statements of Income 4 - 6
Statements of Cash Flows 7 - 8
Statements of Capitalization 9
Statements of Common Stock Equity 10
Notes to Financial Statements 11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 18
Part II. Other Information
Item 5. Other Information 21
Item 6. Exhibits and Reports on Form 8-K 21
Signature 22
KANSAS GAS AND ELECTRIC COMPANY
BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
September 30, December 31,
1996 1995
ASSETS
UTILITY PLANT:
Electric plant in service . . . . . . . . . . . . . . . . $3,476,803 $3,427,928
Less - Accumulated depreciation . . . . . . . . . . . . . 956,599 893,728
2,520,204 2,534,200
Construction work in progress . . . . . . . . . . . . . . 31,394 40,810
Nuclear fuel (net). . . . . . . . . . . . . . . . . . . . 44,072 53,942
Net utility plant . . . . . . . . . . . . . . . . . . . 2,595,670 2,628,952
OTHER PROPERTY AND INVESTMENTS:
Decommissioning trust . . . . . . . . . . . . . . . . . . 30,627 25,070
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 8,745 7,885
39,372 32,955
CURRENT ASSETS:
Cash and cash equivalents . . . . . . . . . . . . . . . . 64 53
Accounts receivable and unbilled revenues (net) . . . . . 86,241 76,490
Advances to parent company . . . . . . . . . . . . . . . 227,419 34,948
Fossil fuel, at average cost. . . . . . . . . . . . . . . 15,628 17,522
Materials and supplies, at average cost . . . . . . . . . 30,286 31,458
Prepayments and other current assets. . . . . . . . . . . 23,114 17,128
382,752 177,599
DEFERRED CHARGES AND OTHER ASSETS:
Deferred future income taxes . . . . . . . . . . . . . . 208,367 208,367
Deferred coal contract settlement costs . . . . . . . . . 12,396 14,612
Phase-in revenues . . . . . . . . . . . . . . . . . . . . 30,703 43,861
Other deferred plant costs. . . . . . . . . . . . . . . . 31,339 31,539
Corporate-owned life insurance (net). . . . . . . . . . . 10,474 7,279
Unamortized debt expense. . . . . . . . . . . . . . . . . 23,969 25,605
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 40,261 32,645
357,509 363,908
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $3,375,303 $3,203,414
CAPITALIZATION AND LIABILITIES
CAPITALIZATION (See Statements):
Common stock equity . . . . . . . . . . . . . . . . . . . $1,184,766 $1,186,077
Long-term debt (net). . . . . . . . . . . . . . . . . . . 684,037 684,082
1,868,803 1,870,159
CURRENT LIABILITIES:
Short-term debt . . . . . . . . . . . . . . . . . . . . . 210,000 50,000
Long-term debt due within one year. . . . . . . . . . . . - 16,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . 43,772 50,783
Accrued taxes . . . . . . . . . . . . . . . . . . . . . . 56,875 17,766
Accrued interest. . . . . . . . . . . . . . . . . . . . . 14,270 7,903
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 6,604 6,608
331,521 149,060
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes . . . . . . . . . . . . . . . . . . 789,040 800,934
Deferred investment tax credits . . . . . . . . . . . . . 70,534 72,970
Deferred gain from sale-leaseback . . . . . . . . . . . . 235,470 242,700
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 79,935 67,591
1,174,979 1,184,195
COMMITMENTS AND CONTINGENCIES (Note 2)
TOTAL CAPITALIZATION AND LIABILITIES . . . . . . . . . $3,375,303 $3,203,414
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF INCOME
(Dollars in Thousands)
(Unaudited)
Three Months Ended
September 30,
1996 1995
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . . $ 193,198 $ 202,382
OPERATING EXPENSES:
Fuel used for generation:
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . 29,082 24,360
Nuclear fuel. . . . . . . . . . . . . . . . . . . . . . 6,299 5,084
Power purchased . . . . . . . . . . . . . . . . . . . . . 1,916 2,276
Other operations. . . . . . . . . . . . . . . . . . . . . 31,355 27,831
Maintenance . . . . . . . . . . . . . . . . . . . . . . . 11,388 11,460
Depreciation and amortization . . . . . . . . . . . . . . 23,847 20,033
Amortization of phase-in revenues . . . . . . . . . . . . 4,386 4,386
Taxes:
Federal income. . . . . . . . . . . . . . . . . . . . . 18,156 26,774
State income . . . . . . . . . . . . . . . . . . . . . 4,825 6,482
General . . . . . . . . . . . . . . . . . . . . . . . . 12,512 11,736
Total operating expenses. . . . . . . . . . . . . . . 143,766 140,422
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . . 49,432 61,960
OTHER INCOME AND DEDUCTIONS:
Corporate-owned life insurance (net). . . . . . . . . . . 2,648 (2,248)
Miscellaneous (net) . . . . . . . . . . . . . . . . . . . 1,091 872
Income taxes (net). . . . . . . . . . . . . . . . . . . . 2,563 3,459
Total other income and deductions . . . . . . . . . . 6,302 2,083
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . . 55,734 64,043
INTEREST CHARGES:
Long-term debt. . . . . . . . . . . . . . . . . . . . . . 11,505 11,759
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 3,937 1,194
Allowance for borrowed funds used
during construction (credit). . . . . . . . . . . . . . (444) (746)
Total interest charges. . . . . . . . . . . . . . . . 14,998 12,207
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . . $ 40,736 $ 51,836
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF INCOME
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
September 30,
1996 1995
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . . $ 501,270 $ 485,686
OPERATING EXPENSES:
Fuel used for generation:
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . 73,062 61,756
Nuclear fuel. . . . . . . . . . . . . . . . . . . . . . 13,674 14,848
Power purchased . . . . . . . . . . . . . . . . . . . . . 8,740 3,482
Other operations. . . . . . . . . . . . . . . . . . . . . 101,031 90,030
Maintenance . . . . . . . . . . . . . . . . . . . . . . . 38,726 36,086
Depreciation and amortization . . . . . . . . . . . . . . 70,709 56,702
Amortization of phase-in revenues . . . . . . . . . . . . 13,158 13,158
Taxes:
Federal income. . . . . . . . . . . . . . . . . . . . . 30,828 42,252
State income . . . . . . . . . . . . . . . . . . . . . 8,817 10,944
General . . . . . . . . . . . . . . . . . . . . . . . . 36,600 35,122
Total operating expenses. . . . . . . . . . . . . . . 395,345 364,380
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . . 105,925 121,306
OTHER INCOME AND DEDUCTIONS:
Corporate-owned life insurance (net). . . . . . . . . . . (1,101) (5,785)
Miscellaneous (net) . . . . . . . . . . . . . . . . . . . 2,662 3,702
Income taxes (net). . . . . . . . . . . . . . . . . . . . 7,890 7,278
Total other income and deductions . . . . . . . . . . 9,451 5,195
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . . 115,376 126,501
INTEREST CHARGES:
Long-term debt. . . . . . . . . . . . . . . . . . . . . . 34,804 35,310
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 8,306 3,806
Allowance for borrowed funds used
during construction (credit). . . . . . . . . . . . . . (1,423) (1,890)
Total interest charges. . . . . . . . . . . . . . . . 41,687 37,226
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . . $ 73,689 $ 89,275
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF INCOME
(Dollars in Thousands)
(Unaudited)
Twelve Months Ended
September 30,
1996 1995
OPERATING REVENUES. . . . . . . . . . . . . . . . . . . . . $ 639,452 $ 624,773
OPERATING EXPENSES:
Fuel used for generation:
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . 91,898 80,477
Nuclear fuel. . . . . . . . . . . . . . . . . . . . . . 18,251 16,677
Power purchased . . . . . . . . . . . . . . . . . . . . . 9,835 5,757
Other operations. . . . . . . . . . . . . . . . . . . . . 128,877 120,413
Maintenance . . . . . . . . . . . . . . . . . . . . . . . 50,696 48,887
Depreciation and amortization . . . . . . . . . . . . . . 93,686 70,757
Amortization of phase-in revenues . . . . . . . . . . . . 17,545 17,544
Taxes:
Federal income. . . . . . . . . . . . . . . . . . . . . 36,906 50,870
State income . . . . . . . . . . . . . . . . . . . . . 10,416 13,211
General . . . . . . . . . . . . . . . . . . . . . . . . 47,719 45,267
Total operating expenses. . . . . . . . . . . . . . . 505,829 469,860
OPERATING INCOME. . . . . . . . . . . . . . . . . . . . . . 133,623 154,913
OTHER INCOME AND DEDUCTIONS:
Corporate-owned life insurance (net). . . . . . . . . . . 2,016 (7,418)
Miscellaneous (net) . . . . . . . . . . . . . . . . . . . 3,844 5,140
Income taxes (net). . . . . . . . . . . . . . . . . . . . 9,698 9,193
Total other income and deductions . . . . . . . . . . 15,558 6,915
INCOME BEFORE INTEREST CHARGES. . . . . . . . . . . . . . . 149,181 161,828
INTEREST CHARGES:
Long-term debt. . . . . . . . . . . . . . . . . . . . . . 46,567 47,105
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 9,690 5,268
Allowance for borrowed funds used
during construction (credit). . . . . . . . . . . . . . (2,363) (2,032)
Total interest charges. . . . . . . . . . . . . . . . 53,894 50,341
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . . $ 95,287 $ 111,487
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
September 30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . $ 73,689 $ 89,275
Depreciation and amortization . . . . . . . . . . . . . . . 55,691 54,978
Other amortization (including nuclear fuel) . . . . . . . . 10,777 11,274
Gain on sales of utility plant (net of tax) . . . . . . . . - (951)
Deferred taxes and investment tax credits (net) . . . . . . (14,330) (16,470)
Amortization of phase-in revenues . . . . . . . . . . . . . 13,158 13,158
Corporate-owned life insurance. . . . . . . . . . . . . . . (23,334) (14,757)
Amortization of gain from sale-leaseback. . . . . . . . . . (7,230) (7,231)
Amortization of acquisition adjustment. . . . . . . . . . . 15,018 1,724
Changes in working capital items:
Accounts receivable and unbilled revenues (net) . . . . . (9,751) (21,617)
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . . 1,894 (2,072)
Accounts payable. . . . . . . . . . . . . . . . . . . . . (7,011) (4,774)
Interest and taxes accrued. . . . . . . . . . . . . . . . 45,476 49,769
Other . . . . . . . . . . . . . . . . . . . . . . . . . . (2,664) (7,856)
Changes in other assets and liabilities . . . . . . . . . . (4,966) 7,591
Net cash flows from operating activities. . . . . . . . 146,417 152,041
CASH FLOWS USED IN INVESTING ACTIVITIES:
Additions to utility plant. . . . . . . . . . . . . . . . . 47,430 65,850
Sales of utility plant. . . . . . . . . . . . . . . . . . . - (1,723)
Corporate-owned life insurance policies . . . . . . . . . . 24,905 25,643
Death proceeds of corporate-owned life insurance. . . . . . (9,010) (250)
Net cash flows used in investing activities . . . . . . 63,325 89,520
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term debt (net) . . . . . . . . . . . . . . . . . . . 160,000 (20,950)
Advances to parent company (net). . . . . . . . . . . . . . (192,471) (87,047)
Bonds retired . . . . . . . . . . . . . . . . . . . . . . . (16,135) (25)
Borrowings against life insurance policies. . . . . . . . . 45,136 45,578
Repayment of borrowings against life insurance policies . . (4,611) (73)
Dividends to parent company . . . . . . . . . . . . . . . . (75,000) -
Net cash flows (used in) financing activities. . . . . . (83,081) (62,517)
NET INCREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . 11 4
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . 53 47
END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . $ 64 $ 51
,
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID FOR:
Interest on financing activities (net of amount
capitalized) . . . . . . . . . . . . . . . . . . . . . $ 59,873 $ 54,274
Income taxes . . . . . . . . . . . . . . . . . . . . . . . 21,600 31,100
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Twelve Months Ended
September 30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . $ 95,287 $ 111,487
Depreciation and amortization . . . . . . . . . . . . . . . 73,663 69,033
Other amortization (including nuclear fuel) . . . . . . . . 14,696 13,789
Gain on sales of utility plant (net of tax) . . . . . . . . - (951)
Deferred taxes and investment tax credits (net) . . . . . . 5,991 (5,563)
Amortization of phase-in revenues . . . . . . . . . . . . . 17,545 17,544
Corporate-owned life insurance. . . . . . . . . . . . . . . (37,125) (18,403)
Amortization of gain from sale-leaseback. . . . . . . . . . (9,639) (9,641)
Amortization of acquisition adjustment. . . . . . . . . . . 20,023 1,724
Changes in working capital items:
Accounts receivable and unbilled revenues (net) . . . . . 3,208 (30,282)
Fossil fuel . . . . . . . . . . . . . . . . . . . . . . . 196 (2,172)
Accounts payable. . . . . . . . . . . . . . . . . . . . . (547) (4,047)
Interest and taxes accrued. . . . . . . . . . . . . . . . (3,326) 11,406
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 3,213 (4,934)
Changes in other assets and liabilities . . . . . . . . . . 1,968 14,575
Net cash flows from operating activities. . . . . . . . 185,153 163,565
CASH FLOWS USED IN INVESTING ACTIVITIES:
Additions to utility plant. . . . . . . . . . . . . . . . . 75,518 90,084
Sales of utility plant. . . . . . . . . . . . . . . . . . . - (1,723)
Corporate-owned life insurance policies . . . . . . . . . . 29,609 27,473
Death proceeds of corporate-owned life insurance. . . . . . (19,343) (250)
Net cash flows used in investing activities . . . . . . 85,784 115,584
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term debt (net) . . . . . . . . . . . . . . . . . . . 180,950 (13,250)
Advances to parent company (net). . . . . . . . . . . . . . (75,979) 44,112
Bonds retired . . . . . . . . . . . . . . . . . . . . . . . (16,135) (25)
Borrowings against life insurance policies. . . . . . . . . 46,604 46,249
Repayment of borrowings against life insurance policies . . (9,796) 73
Dividends to parent company . . . . . . . . . . . . . . . . (225,000) (125,000)
Net cash flows (used in) financing activities. . . . . . (99,356) (47,987)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS. . . . . 13 (6)
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . . . 51 57
END OF PERIOD . . . . . . . . . . . . . . . . . . . . . . . $ 64 $ 51
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID FOR:
Interest on financing activities (net of amount
capitalized) . . . . . . . . . . . . . . . . . . . . . $ 77,407 $ 72,661
Income taxes . . . . . . . . . . . . . . . . . . . . . . . 32,600 37,951
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF CAPITALIZATION
(Dollars in Thousands)
(Unaudited)
September 30, December 31,
1996 1995
COMMON STOCK EQUITY (see Statements):
Common stock, without par value, authorized and issued
1,000 shares. . . . . . . . . . . . . . . . . . . . . . . $1,065,634 $1,065,634
Retained earnings . . . . . . . . . . . . . . . . . . . . . 119,132 120,443
Total common stock equity . . . . . . . . . . . . . . . . 1,184,766 63% 1,186,077 63%
LONG-TERM DEBT:
First Mortgage Bonds:
Series Due 1996 1995
5-5/8% 1996 $ - $ 16,000
7.6% 2003 135,000 135,000
6-1/2% 2005 65,000 65,000
6.20% 2006 100,000 100,000
300,000 316,000
Pollution Control Bonds:
5.10% 2023 13,822 13,957
Variable (a) 2027 21,940 21,940
7.0% 2031 327,500 327,500
Variable (a) 2032 14,500 14,500
Variable (a) 2032 10,000 10,000
387,762 387,897
Total bonds. . . . . . . . . . . . . . . . . . . . . . 687,762 703,897
Less:
Unamortized premium and discount (net). . . . . . . . . . 3,725 3,815
Long-term debt due within one year. . . . . . . . . . . . - 16,000
Total long-term debt . . . . . . . . . . . . . . . . . 684,037 37% 684,082 37%
TOTAL CAPITALIZATION. . . . . . . . . . . . . . . . . . . . . $1,868,803 100% $1,870,159 100%
(a) Market-Adjusted Tax Exempt Securities (MATES). As of September 30, 1996, the rate
on these bonds ranged from 3.55% to 3.63%.
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
STATEMENTS OF COMMON STOCK EQUITY
(Dollars in Thousands)
(Unaudited)
Common Retained
Stock Earnings
BALANCE DECEMBER 31, 1993, 1,000 shares. . . . . . . $1,065,634 $ 180,044
Net income . . . . . . . . . . . . . . . . . . . . . 104,526
Dividend to parent company . . . . . . . . . . . . . (125,000)
BALANCE DECEMBER 31, 1994, 1,000 shares. . . . . . . 1,065,634 159,570
Net income . . . . . . . . . . . . . . . . . . . . . 110,873
Dividend to parent company . . . . . . . . . . . . . (150,000)
BALANCE DECEMBER 31, 1995, 1,000 shares. . . . . . . 1,065,634 120,443
Net Income . . . . . . . . . . . . . . . . . . . . . 73,689
Dividend to parent company . . . . . . . . . . . . . (75,000)
BALANCE SEPTEMBER 30, 1996, 1,000 shares . . . . . . $1,065,634 $ 119,132
The NOTES TO FINANCIAL STATEMENTS are an integral part of these statements.
KANSAS GAS AND ELECTRIC COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. ACCOUNTING POLICIES AND OTHER INFORMATION
General: Kansas Gas and Electric Company (the Company, KGE) is a rate-
regulated electric utility and wholly-owned subsidiary of Western Resources,
Inc. (Western Resources). The Company is engaged in the production, purchase,
transmission, distribution, and sale of electricity. The Company serves
approximately 275,000 electric customers in southeastern Kansas.
On March 31, 1992, Western Resources through its wholly-owned subsidiary
KCA Corporation (KCA), acquired all of the outstanding common and preferred
stock of KGE. Simultaneously, KCA and KGE merged and adopted the name of KGE
(the KGE Merger).
The Company owns 47% of the Wolf Creek Nuclear Operating Corporation
(WCNOC), the operating company for the Wolf Creek Generating Station (Wolf
Creek). The Company records in its financial statements its proportionate
share of all transactions of WCNOC as it does other jointly-owned facilities.
The Company prepares its financial statements in conformity with
generally accepted accounting principles as applied to regulated public
utilities. The accounting and rates of the Company are subject to
requirements of the Kansas Corporation Commission (KCC) and the Federal Energy
Regulatory Commission (FERC). The financial statements require management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities, to disclose contingent assets and liabilities at the balance
sheet date, and to report amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion
of the Company, the accompanying condensed financial statements reflect all
adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the financial position of the Company as of September 30, 1996
and December 31, 1995, and the results of its operations for the three, nine
and twelve month periods ended September 30, 1996 and 1995. These condensed
financial statements should be read in conjunction with the financial
statements and the notes thereto included in the Company's 1995 Annual Report
on Form 10-K.
On April 24, 1996, FERC issued its final rule on Order No. 888, Promoting
Wholesale Competition Through Open Access Non-discriminatory Transmission
Services by Public Utilities; Recovery of Stranded Costs by Public Utilities
and Transmitting Utilities. The Company has reviewed this order and does not
expect it to have a material effect on operations.
Cash Surrender Value of Life Insurance Contracts: The following amounts
related to corporate-owned life insurance contracts (COLI) are recorded in
Corporate-owned Life Insurance (net) on the balance sheets:
September 30, December 31,
1996 1995
(Dollars in Millions)
Cash surrender value of contracts. . $404.0 $360.3
Borrowings against contracts . . . . (393.5) (353.0)
COLI (net) . . . . . . . . . . . $ 10.5 $ 7.3
Income is recorded for increases in cash surrender value and net death
proceeds. Interest expense is recognized for COLI borrowings. The net income
generated from COLI contracts, including the tax benefit of the interest
deductions and premium expenses, are recorded as Corporate-owned Life
Insurance (net) on the Statements of Income. The income from increases in
cash surrender value and net death proceeds was $9.5 million, $19.7 million
and $29.6 million for the three, nine and twelve months ended September 30,
1996, respectively, compared to $4.6 million, $12.7 million and $16.7 million
for the three, nine and twelve months ended 1995, respectively. The interest
expense deduction taken was $6.9 million, $20.8 million and $27.6 million for
the three, nine and twelve months ended September 30, 1996, respectively,
compared to $6.9 million, $18.5 million and $24.1 million for the nine and
twelve months ended 1995, respectively. On August 2, 1996, Congress passed
the Health Insurance Portability and Accountability Act of 1996 which was
signed into law by President Clinton on August 21, 1996. The act is expected
to have minimal impact on the Company's COLI contracts.
Cash and Cash Equivalents: For purposes of the Statements of Cash Flows,
cash and cash equivalents include cash on hand and highly liquid
collateralized debt instruments purchased with maturities of three months or
less.
2. COMMITMENTS AND CONTINGENCIES
Manufactured Gas Sites: The Company has been associated with three former
manufactured gas sites which may contain coal tar and other potentially
harmful materials. The Company and the Kansas Department of Health and
Environment (KDHE) entered into a consent agreement governing all future work
at the three sites. The terms of the consent agreement will allow the Company
to investigate these sites and set remediation priorities based upon the
results of the investigations and risk analysis. The prioritized sites will
be investigated over a 10 year period. The agreement will allow the Company
to set mutual objectives with the KDHE in order to expedite effective response
activities and to control costs and environmental impact. The costs incurred
for site investigation and risk assessment in 1995 and 1994 were minimal. The
Company is aware of other Midwestern utilities which have incurred remediation
costs ranging between $500,000 and $14 million per site. The KCC has
permitted another Kansas utility to recover its remediation costs through
rates. To the extent that such remediation costs are not recovered through
rates, the costs could be material to the Company's financial position or
results of operations depending on the degree of remediation and number of
years over which the remediation must be completed.
Decommissioning: The Company accrues decommissioning costs over the
expected life of the Wolf Creek generating facility. The accrual is based on
estimated unrecovered decommissioning costs which consider inflation over the
remaining estimated life of the generating facility and are net of expected
earnings on amounts recovered from customers and deposited in an external
trust fund.
On June 9, 1994, the KCC issued an order approving the estimated
decommissioning costs of the 1993 Wolf Creek Decommissioning Cost Study which
estimates the Company's share of Wolf Creek decommissioning costs, under the
immediate dismantlement method, to be approximately $595 million during the
period 2025 through 2033, or approximately $174 million in 1993 dollars.
These costs were calculated using an assumed inflation rate of 3.45% over the
remaining service life, in 1993, of 32 years.
Decommissioning costs are being charged to operating expenses in
accordance with the KCC order. Electric rates charged to customers provide
for recovery of these decommissioning costs over the life of Wolf Creek.
Amounts expensed approximated $3.6 million in 1995 and will increase annually
to $5.5 million in 2024. These expenses are deposited in an external trust
fund. The average after tax expected return on trust assets is 5.9%
The Company's investment in the decommissioning fund, including
reinvested earnings approximated $30.6 million and $25.1 million at September
30, 1996 and December 31, 1995, respectively. Trust fund earnings accumulate
in the fund balance and increase the recorded decommissioning liability.
These amounts are reflected in Decommissioning Trust, and the related
liability is included in Deferred Credits and Other Liabilities, Other, on the
Balance Sheets.
The staff of the Securities and Exchange Commission (SEC) has questioned
certain current accounting practices used by nuclear electric generating
station owners regarding the recognition, measurement and classification of
decommissioning costs for nuclear electric generating stations. In response to
these questions, the Financial Accounting Standards Board is expected to issue
new accounting standards for removal costs, including decommissioning in 1997.
If current electric utility industry accounting practices for such
decommissioning costs are changed: (1) annual decommissioning expenses could
increase, (2) the estimated present value of decommissioning costs could be
recorded as a liability rather than as accumulated depreciation, and (3) trust
fund income from the external decommissioning trusts could be reported as
investment income rather than as a reduction to decommissioning expense.
When revised accounting guidance is issued, the Company will also have to
evaluate its effect on accounting for removal costs of other long-lived
assets. The Company is not able to predict what effect such changes would
have on results of operations, financial position, or related regulatory
practices until the final issuance of revised accounting guidance, but such
effect could be material.
The Company carries premature decommissioning insurance which has several
restrictions. One of these is that it can only be used if Wolf Creek incurs
an accident exceeding $500 million in expenses to safely stabilize the
reactor, to decontaminate the reactor and reactor station site in accordance
with a plan approved by the Nuclear Regulatory Commission (NRC), and to pay
for on-site property damages. This decommissioning insurance will only be
available if the insurance funds are not needed to implement the NRC-approved
plan for stabilization and decontamination.
Nuclear Insurance: The Price-Anderson Act limits the combined public
liability of the owners of nuclear power plants to $8.9 billion for a single
nuclear incident. If this liability limitation is insufficient, the U.S.
Congress will consider taking whatever action is necessary to compensate the
public for valid claims. The Wolf Creek owners (Owners) have purchased the
maximum available private insurance of $200 million and the balance is
provided by an assessment plan mandated by the NRC. Under this plan, the
Owners are jointly and severally subject to a retrospective assessment of up
to $79.3 million ($37.3 million, Company's share) in the event there is a
major nuclear incident involving any of the nation's licensed reactors. This
assessment is subject to an inflation adjustment based on the Consumer Price
Index and applicable premium taxes. There is a limitation of $10 million
($4.7 million, Company's share) in retrospective assessments per incident, per
year.
The Owners carry decontamination liability, premature decommissioning
liability, and property damage insurance for Wolf Creek totaling approximately
$2.8 billion ($1.3 billion, Company's share). This insurance is provided by a
combination of "nuclear insurance pools" ($500 million) and Nuclear Electric
Insurance Limited (NEIL) ($2.3 billion). In the event of an accident,
insurance proceeds must first be used for reactor stabilization and site
decontamination. The Company's share of any remaining proceeds can be used
for property damage or premature decommissioning costs up to $1.3 billion
(Company's share). Premature decommissioning insurance cost recovery is
excess of funds previously collected for decommissioning (as discussed under
"Decommissioning").
The Owners also carry additional insurance with NEIL to cover costs of
replacement power and other extra expenses incurred during a prolonged outage
resulting from accidental property damage at Wolf Creek. If losses incurred
at any of the nuclear plants insured under the NEIL policies exceed premiums,
reserves, and other NEIL resources, the Company may be subject to
retrospective assessments of approximately $11 million per year. Effective
November 15, 1996, the Company's potential retrospective assessment will be
reduced to $8 million per year.
Although the Company maintains various insurance policies to provide
coverage for potential losses and liabilities resulting from an accident or an
extended outage, the Company's insurance coverage may not be adequate to cover
the costs that could result from a catastrophic accident or extended outage at
Wolf Creek. Any substantial losses not covered by insurance, to the extent
not recoverable through rates, would have a material adverse effect on the
Company's financial position and results of operations.
Clean Air Act: The Clean Air Act Amendments of 1990 (the Act) require a
two-phase reduction in certain emissions. To meet the monitoring and
reporting requirements under the acid rain program, the Company installed
continuous monitoring and reporting equipment at a total cost of approximately
$2.3 million by the December 31, 1995 deadline. The Company expects some
additional equipment acquisitions and other expenditures to be needed to meet
Phase II sulfur dioxide requirements. Current estimated costs for Phase II
are approximately $5 million.
The nitrogen oxides and toxic limits, which were not set in the law, were
proposed by the EPA in January 1996. The Company is currently evaluating the
steps it will need to take in order to comply with the proposed new rules, but
is unable to determine its compliance options or related compliance costs,
which could be substantial, until the evaluation is finished. The Company will
have three years to comply with the new rules.
Fuel Commitments: To supply a portion of the fuel requirements for its
generating plants, the Company has entered into various commitments to obtain
nuclear fuel, coal, and natural gas. Some of these contracts contain
provisions for price escalation and minimum purchase commitments. At
December 31, 1995, WCNOC's nuclear fuel commitments (Company's share) were
approximately $15.3 million for uranium concentrates expiring at various times
through 2001, $120.8 million for enrichment expiring at various times through
2014, and $72.7 million for fabrication through 2025. At December 31, 1995,
the Company's coal and natural gas contract commitments in 1995 dollars under
the remaining terms of the contracts were $643 million. The largest coal
contract expires in 2020, with the remaining coal contracts expiring at
various times through 2013.
Energy Act: As part of the 1992 Energy Policy Act, a special assessment
is being collected from utilities for a uranium enrichment, decontamination,
and decommissioning fund. The Company's portion of the assessment for Wolf
Creek is approximately $7 million, payable over 15 years. Management expects
such costs to be recovered through the ratemaking process.
3. INCOME TAXES
Total income tax expense included in the Statements of Income reflects
the Federal statutory rate of 35 percent. The Federal statutory rate produces
effective income tax rates of 33.4% and 39.1% for the three month periods,
30.1% and 37.3% for the nine month periods, and 28.3% and 36.5% for the twelve
month periods ended September 30, 1996 and 1995, respectively. The effective
income tax rates vary from the Federal statutory rate due to the permanent
differences, including the amortization of investment tax credits, and
accelerated amortization of certain deferred income taxes.
4. RATE MATTERS AND REGULATION
KCC Rate Proceedings: On August 17, 1995, the Company filed with the KCC
a request to more rapidly recover its investment in its assets of Wolf Creek
over the next seven years. The request involved acceleration of depreciation
of Wolf Creek by $50 million for each of the next seven years. The Company
sought to reduce electric rates for its customers by approximately $8.7
million annually for the seven year period. The Company also requested to
extend the service life of certain of its transmission and distribution assets
for both the Company's and KPL's electric jurisdictions.
On May 23, 1996, the Company implemented an $8.7 million electric rate
reduction to its customers on an interim basis. On October 22, 1996, Western
Resources, the Company, the KCC Staff, the City of Wichita, and the Citizens
Utility Ratepayer Board filed an agreement at the KCC whereby the Company's
retail electric rates would be reduced, subject to approval by the KCC. Under
the agreement, on February 1, 1997, the Company's rates would be reduced by
$36.3 million and the May, 1996 interim reduction would become permanent. The
Company's rates would be reduced by another $10 million effective
June 1, 1998, and again on June 1, 1999. The KCC, at its discretion, may
allocate to the Company some portion of two one-time rebates of $5 million to
be credited to its customers in January 1998 and 1999.
On April 15, 1996, Western Resources filed an application with the KCC
requesting an order approving its proposal to merge with Kansas City Power &
Light Company (KCPL) and for other related relief. On July 29, 1996, Western
Resources filed its First Amended Application with the KCC in its proceeding
for approval to merge with KCPL. The amended application reflected the
increase in Western Resources' offer for KCPL from $28 to $31 per share and
proposed an incentive rate mechanism requiring all regulated earnings in
excess of the merged Company's 12.61% return on equity to be split among
customers, shareholders, and additional depreciation on Wolf Creek.
FERC Proceedings: On August 22, 1996, Western Resources filed an
application with the FERC under section 203 of the Federal Power Act
requesting an order approving its proposal to merge with KCPL.
5. WESTERN RESOURCES' PROPOSED MERGER WITH KANSAS CITY POWER & LIGHT COMPANY
On April 14, 1996, Western Resources proposed an offer to merge with
KCPL.
Western Resources currently has a registration statement on Form S-4
filed with the SEC to exchange shares of Western Resources common stock for
each KCPL share (the Offer). Western Resources' exchange offer for KCPL is
set to expire at 5 p.m. EDT October 25, 1996 unless extended by Western
Resources.
The number of shares of Western Resources common stock to be delivered
per KCPL share pursuant to the Offer would be equal to the quotient (rounded
to the nearest 1/100,000) determined by dividing $31 by the average of the
high and low sales prices of Western Resources common stock on the New York
Stock Exchange for each of the twenty consecutive trading days ending with the
second trading day immediately preceding the expiration of the Offer (the
Exchange Ratio), provided that the Exchange Ratio would not have been less
than 0.91 nor greater than 0.985.
Western Resources intends to acquire, after consummation of the Offer,
the remaining KCPL shares pursuant to a merger of Western Resources and KCPL
(the KCPL Merger).
Western Resources has filed applications with the KCC, Missouri Public
Service Commission, and FERC seeking approval of the KCPL Merger. Western
Resources will also need approval from the NRC. See Note 4 of the Notes to
Financial Statements for discussion of rate proceedings.
Completion of the Offer and the KCPL Merger are subject to various
conditions, including approvals from shareholders, regulatory and other
governmental agencies.
The KCPL Merger proposal contains certain analyses and statements with
respect to the financial condition, results of operations and business of the
Company following the consummation of the Offer and the KCPL Merger, including
statements relating to the cost savings that will be realized from the KCPL
Merger. Such analyses and statements include forward looking statements with
respect to, among other things: (1) expected cost savings from the KCPL
Merger; (2) normal weather conditions; (3) future national and regional
economic and competitive conditions; (4) inflation rates; (5) regulatory
treatment; (6) future financial market conditions; (7) interest rates; (8)
future business decisions; and (9) other uncertainties, which though
considered reasonable by the Company, are beyond the Company's control and
difficult to predict.
KANSAS GAS AND ELECTRIC COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition
and Results of Operations should be read in conjunction with Item 7 of the
Company's Annual Report on Form 10-K for 1995. The following updates certain
information provided in the 1995 Form 10-K, and analyzes the changes in the
results of operations between the three, nine and twelve month periods ended
September 30, 1996 and comparable periods of 1995.
Certain matters discussed in this Form 10-Q are "forward-looking
statements" intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes,"
"anticipates," "expects" or words of similar import. Similarly, statements
that describe the Company's future plans, objectives or goals are also
forward-looking statements. Such statements address future events and
conditions concerning capital expenditures, earnings, litigation, rate and
other regulatory matters, the pending KCPL Merger, liquidity and capital
resources, interest rates, changing weather conditions, and accounting
matters. Actual results in each case could differ materially from those
currently anticipated in such statements, by reason of factors such as
electric utility restructuring, including the ongoing state and federal
activities; future economic conditions; developments in the legislative,
regulatory and competitive markets in which the Company operates; and other
circumstances affecting anticipated revenues and costs.
FINANCIAL CONDITION
General: The Company had net income of $40.7 million for the third
quarter of 1996 compared to $51.8 million for the third quarter in 1995. The
decrease in net income was primarily due to lower revenues as a result of
decreased sales in all retail customer classes and the amortization of the
acquisition adjustment as a result of the KGE Merger.
Net income for the nine and twelve months ended September 30, 1996, was
$73.7 million and $95.3 million, respectively, compared to $89.3 million and
$111.5 million for the comparable periods in 1995, respectively. These
decreases were primarily due to the amortization of the acquisition adjustment
as a result of the KGE Merger and higher operating expenses, resulting from
Wolf Creek's eighth refueling outage during the first quarter of 1996. An
increase in net generation due to increased sales to interchange customers
during 1996 also contributed to higher operating expenses. These higher
expenses offset the increases in sales and revenues the Company experienced
during the nine and twelve months ended September 30, 1996 as compared to the
same periods of 1995.
Liquidity and Capital Resources: All 1,000 shares of the Company's common
stock are held by Western Resources.
The Company's short-term financing requirements are satisfied through
short-term bank loans and borrowings under unsecured lines of credit
maintained with banks. At September 30, 1996, short-term borrowing amounted
to $210 million compared to $50 million at December 31, 1995.
During 1996, the Company has increased its borrowings against the
accumulated cash surrender values of the corporate-owned life insurance
policies by $43.3 million and received $1.8 million from increased borrowings
on Wolf Creek Nuclear Operating Company policies.
OPERATING RESULTS
The following discussion explains variances for the three, nine and
twelve months ended September 30, 1996, to the comparable periods of 1995.
Revenues: The Company's revenues vary with levels of usage as a result
of changing weather conditions during comparable periods and are sensitive to
seasonal fluctuations between consecutive periods. Future electric sales will
continue to be affected by weather conditions, competing fuel sources,
wholesale demand, and the overall economy of the Company's service area.
The following table reflects changes in electric sales for the three,
nine and twelve months ended September 30, 1996 from the comparable periods of
1995.
Increase (Decrease) in electric sales volumes:
3 Months 9 Months 12 Months
Ended Ended Ended
Residential (9.0)% 4.4% 3.7%
Commercial (2.6)% 3.4% 2.4%
Industrial (8.3)% (1.4)% (0.3)%
Total Retail (7.0)% 1.6% 1.6%
Wholesale & Interchange 137.4% 84.5% 63.1%
Total electric sales 8.2% 12.9% 10.1%
Revenues for the three months ended September 30, 1996, of $193.2 million
decreased approximately five percent from revenues of $202.4 million for the
comparable period of 1995. The decrease was largely due to decreased
residential sales as a result of cooler summer temperatures experienced during
the third quarter of 1996 compared to 1995.
The Company's service territory experienced a 15% decrease in the number
of cooling degree days during the third quarter of 1996, as compared to the
third quarter of 1995 and 18% lower than normal number of cooling degree days.
Revenues for the nine and twelve months ended September 30, 1996,
increased approximately three and two percent to $501.3 million and $639.5
million, respectively, from revenues of $485.7 million and $624.8 million for
the comparable periods of 1995, respectively. The increases are primarily
attributable to increased interchange and residential sales as a result of
warmer spring temperatures experienced during the second quarter of 1996
compared to 1995.
Operating Expenses: Total operating expenses increased two percent for
the three months ended September 30, 1996 compared to the same period of 1995.
The increase was primarily attributable to the amortization of the acquisition
adjustment and increased fuel and other operating expenses due to the increase
in net generation as a result of the increase in sales to interchange
customers.
Total operating expenses increased approximately nine and eight percent
for the nine and twelve months ended September 30, 1996 compared to the same
periods of 1995. The increases were primarily due to the amortization of the
acquisition adjustment, increased fuel and other operating expenses and Wolf
Creek being off-line for its eight refueling and maintenance outage during the
first quarter of 1996. Also contributing to the increases in fuel and
operating expenses was the increase in net generation due to increased sales
to interchange customers and demand for air conditioning load from residential
customers during the spring months of 1996.
The amortization of the acquisition adjustment, which began in August
1995, amounted to $5.0 million, $15.0 million and $20.0 million for the three,
nine and twelve months ended September 30, 1996, respectively.
Partially offsetting these increases in operating expenses for the three,
nine and twelve months ended September 30, 1996, was the decrease in federal
and state income taxes due to the decrease in net income during each period.
Other Income and Deductions: Other income and deductions, net of taxes,
increased for the three, nine and twelve months ended September 30, 1996,
compared to the same periods of 1995 primarily due to the receipt of death
benefit proceeds under COLI contracts during the third quarter of 1996 and the
fourth quarter of 1995. The reclassification of income taxes applicable to
the amortization of acquisition adjustment also contributed to the increase.
Interest Expense: Interest expense increased $2.8 million, $4.5 million
and $3.6 million for the three, nine and twelve months ended September 30,
1996, compared to the same periods of 1995. These increases are primarily
attributable to higher interest expense on short-term debt during 1996 as
compared to 1995.
OTHER INFORMATION
Amortization: In accordance with the KCC order relating to the
acquisition of the Company by Western Resources, amortization of the
acquisition adjustment commenced in August 1995. The amortization will amount
to approximately $20 million (pre-tax) per year for 40 years. Western
Resources and the Company can recover the amortization of the acquisition
adjustment through cost savings under a sharing mechanism approved by the KCC.
KANSAS GAS AND ELECTRIC COMPANY
Part II Other Information
Item 5. Other Information
Proposed Merger of Western Resources with Kansas City Power & Light
Company: See Note 5 of the Notes to Financial Statements.
Rate Plans: See Note 4 of the Notes to Financial Statements.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges for
12 Months Ended September 30, 1996 (filed electronically)
Exhibit 27 - Financial Data Schedule (filed electronically)
(b) Reports on Form 8-K:
None
SIGNATURE
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, thereunto duly authorized.
KANSAS GAS AND ELECTRIC COMPANY
Date October 25, 1996 By /s/ Richard D. Terrill
Richard D. Terrill
Secretary, Treasurer and
General Counsel
Exhibit 12
KANSAS GAS AND ELECTRIC COMPANY
Computations of Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Unaudited
Twelve
Months
Ended
September 30,
1996 1995 1994 1993
Net Income. . . . . . . . . . . . . $ 95,287 $110,873 $104,526 $108,103
Taxes on Income . . . . . . . . . . 37,624 51,787 55,349 46,896
Net Income Plus Taxes. . . . . 132,911 162,660 159,875 154,999
Fixed Charges:
Interest on Long-Term Debt. . . . 46,567 47,073 47,827 53,908
Interest on Other Indebtedness. . 9,690 5,190 5,183 6,075
Interest on Corporate-owned
Life Insurance Borrowings . . . 27,615 25,357 20,990 11,865
Interest Applicable to Rentals. . 25,367 25,375 25,096 24,967
Total Fixed Charges . . . . . 109,239 102,995 99,096 96,815
Earnings (1). . . . . . . . . . . . $242,150 $265,655 $258,971 $251,814
Ratio of Earnings to Fixed Charges. 2.22 2.58 2.61 2.60
1992
Pro Forma April 1 | January 1
1992 (2) to Dec. 31 | to March 31 1991
(Successor) |(Predecessor)
Net Income. . . . . . . . . . . . . $ 77,981 $ 71,941 | $ 6,040 $ 53,602
Taxes on Income . . . . . . . . . . 20,378 23,551 | (3,173) 15,955
Net Income Plus Taxes. . . . . 98,359 95,492 | 2,867 69,557
|
Fixed Charges: |
Interest on Long-Term Debt. . . . 57,862 42,889 | 14,973 59,668
Interest on Other Indebtedness. . 15,121 11,777 | 3,344 17,838
Interest on Corporate-owned |
Life Insurance Borrowings . . . 7,155 5,294 | 1,861 7,304
Interest Applicable to Rentals. . 30,212 22,133 | 8,079 32,193
Total Fixed Charges . . . . . 110,350 82,093 | 28,257 117,003
|
Earnings (1). . . . . . . . . . . . $208,709 $177,585 | $ 31,124 $186,560
|
Ratio of Earnings to Fixed Charges. 1.89 2.16 | 1.10 1.59
(1) Earnings are deemed to consist of net income to which has been added income taxes (including net
deferred investment tax credit) and fixed charges. Fixed charges consist of all interest
on indebtedness, amortization of debt discount and expense, and the portion of rental
expense which represents an interest factor.
(2) The pro forma information for the year ended December 31, 1992 was derived by combining the
historical information of the three month period ended March 31, 1992 (Predecessor) and the nine
month period ended December 31, 1992 (Successor). No purchase accounting adjustments were made
for periods prior to the Merger in determining pro forma amounts because such adjustments
would be immaterial. (See Note 1 of Notes to Financial Statements)
UT
1,000
9-MOS
DEC-31-1996
SEP-30-1996
PER-BOOK
2,595,670
39,372
382,752
357,509
0
3,375,303
1,065,634
0
119,132
1,184,766
0
0
684,037
210,000
0
0
0
0
0
0
1,296,500
3,375,303
501,270
31,755
355,700
395,345
105,925
9,451
115,376
41,687
73,689
0
73,689
75,000
34,804
146,417
0
0
