[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
New
Jersey
|
22-1901645
|
(State
of incorporation)
|
(IRS
employer identification no.)
|
Common
Stock
|
|
($1.25
par value per share)
|
New
York Stock Exchange
|
(Title
of each class)
|
(Name
of exchange on which registered)
|
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
|||||||
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|||||||
(In
Thousands Except for Per Share Data)
|
|||||||
Three
Months Ended
|
|||||||
March
31,
|
|||||||
2006
|
|
|
2005
|
||||
(As
Restated
See
Note 13)
|
|
(As
Restated
See
Note 13)
|
|||||
Operating
Revenues:
|
|||||||
Utility
|
$
|
269,521
|
$
|
212,167
|
|||
Nonutility
|
103,090
|
116,345
|
|||||
Total
Operating Revenues
|
372,611
|
328,512
|
|||||
Operating
Expenses:
|
|||||||
Cost
of
Sales - Utility
|
201,060
|
141,975
|
|||||
Cost
of
Sales - Nonutility
|
83,178
|
103,141
|
|||||
Operations
|
17,667
|
20,197
|
|||||
Maintenance
|
1,405
|
1,493
|
|||||
Depreciation
|
6,342
|
5,873
|
|||||
Energy
and Other Taxes
|
4,731
|
5,158
|
|||||
Total
Operating Expenses
|
314,383
|
277,837
|
|||||
Operating
Income
|
58,228
|
50,675
|
|||||
Other
Income and Expense
|
149
|
384
|
|||||
Interest
Charges
|
(6,366
|
)
|
(5,305
|
)
|
|||
Income
Before Income Taxes
|
52,011
|
45,754
|
|||||
Income
Taxes
|
(21,486
|
)
|
(19,090
|
)
|
|||
Equity
in Affiliated Companies
|
378
|
194
|
|||||
Income
from Continuing Operations
|
30,903
|
26,858
|
|||||
Loss
from Discontinued Operations - Net
|
(166
|
)
|
(144
|
)
|
|||
Net
Income
|
$
|
30,737
|
$
|
26,714
|
|||
Basic
Earnings Per Common Share:
|
|||||||
Continuing
Operations
|
$
|
1.064
|
$
|
0.966
|
|||
Discontinued
Operations - Net
|
$
|
(0.006
|
)
|
$
|
(0.005
|
)
|
|
Basic
Earnings Per Common Share
|
$
|
1.058
|
$
|
0.961
|
|||
Average
Shares of Common Stock Outstanding - Basic
|
29,032
|
27,800
|
|||||
Diluted
Earnings Per Common Share:
|
|||||||
Continuing
Operations
|
$
|
1.062
|
$
|
0.958
|
|||
Discontinued
Operations - Net
|
$
|
(0.006
|
)
|
$
|
(0.005
|
)
|
|
Diluted
Earnings Per Common Share
|
$
|
1.056
|
$
|
0.953
|
|||
Average
Shares of Common Stock Outstanding - Diluted
|
29,100
|
28,024
|
|||||
Dividends
Declared per Common Share
|
$
|
0.2250
|
$
|
0.2125
|
|||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
|||||||
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
|||||||
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
|
|||||||
(In
Thousands)
|
|||||||
|
Three
Months Ended
|
||||||
March 31,
|
|||||||
2006
|
|
|
2005
|
||||
(As
Restated
See
Note 13)
|
|
(As
Restated
See
Note 13)
|
|||||
Net
Income
|
$
|
30,737
|
$
|
26,714
|
|||
Other
Comprehensive Income (Loss), Net of Tax:*
|
|||||||
Change
in Fair Value of Investments
|
157
|
(43
|
)
|
||||
Change
in Fair Value of Derivatives - Other
|
1,224
|
385
|
|||||
Other
Comprehensive Income - Net of Tax*
|
1,381
|
342
|
|||||
Comprehensive
Income
|
$
|
32,118
|
$
|
27,056
|
|||
* Determined using a combined statutory tax rate of 40.85%. | |||||||
The accompanying notes are an integral part of the condensed consolidated financial statements. |
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
|||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|||||||
(In
Thousands)
|
|||||||
|
Three
Months Ended
|
||||||
March
31,
|
|||||||
|
2006
|
|
|
2005
|
|||
(As
Restated
See
Note 13)
|
|
(As
Restated
See
Note 13)
|
|||||
Cash
Flows from Operating Activities:
|
|||||||
Income
from Continuing Operations
|
$
|
30,903
|
$
|
26,858
|
|||
Adjustments
to
Reconcile Net Income from Continuing Operations
|
|||||||
to Net Cash Flows Provided by Operating Activities:
|
|||||||
Depreciation and Amortization
|
6,913
|
6,585
|
|||||
Unrealized Gain on Derivatives - Energy Related
|
(9,531
|
)
|
(4,070
|
)
|
|||
Provision for Losses on Accounts Receivable
|
1,045
|
2,313
|
|||||
Stock-Based Compensation Charge
|
278
|
368
|
|||||
Revenues and Fuel Costs Deferred - Net
|
15,606
|
442
|
|||||
Deferred and Noncurrent Income Taxes and Credits - Net
|
5,077
|
5,471
|
|||||
Environmental Remediation Costs - Net
|
(958
|
)
|
(363
|
)
|
|||
Gas Plant Cost of Removal
|
(304
|
)
|
(165
|
)
|
|||
Changes in:
|
|||||||
Accounts
Receivable
|
(11,972
|
)
|
(33,592
|
)
|
|||
Inventories
|
48,913
|
64,612
|
|||||
Other
Prepayments and Current Assets
|
525
|
(13
|
)
|
||||
Prepaid
and Accrued Taxes - Net
|
23,220
|
22,045
|
|||||
Accounts
Payable and Other Accrued Liabilities
|
(67,880
|
)
|
(7,542
|
)
|
|||
Other
Assets
|
(10,120
|
) |
4,308
|
||||
Other
Liabilities
|
11,699
|
848
|
|||||
Discontinued
Operations
|
104
|
(155
|
)
|
||||
Net
Cash Provided by Operating Activities
|
43,518
|
87,950
|
|||||
Cash
Flows from Investing Activities:
|
|||||||
(Loan
to) Repayment of Loan to Affiliate
|
(50
|
)
|
195
|
||||
Net
(Purchase of) Proceeds from Sale of Restricted Investments
|
(8,495
|
)
|
13,379
|
||||
Capital
Expenditures
|
(20,410
|
)
|
(19,933
|
)
|
|||
Net
Cash Used in Investing Activities
|
(28,955
|
)
|
(6,359
|
)
|
|||
Cash
Flows from Financing Activities:
|
|||||||
Net
Repayments of Lines of Credit
|
(25,200
|
)
|
(59,900
|
)
|
|||
Proceeds
from
Issuance of Long-Term Debt
|
16,400
|
-
|
|||||
Principal
Repayments of Long-Term Debt
|
(38
|
)
|
(10,500
|
)
|
|||
Proceeds
from
Sale of Common Stock
|
950
|
735
|
|||||
Payments
for
Issuance of Long-Term Debt
|
(353
|
)
|
(51
|
)
|
|||
Premium
for Early Retirement of Long-Term Debt
|
-
|
(184
|
)
|
||||
Net
Cash Used in Financing Activities
|
(
8,241
|
)
|
(69,900
|
)
|
|||
Net
Increase in Cash and Cash Equivalents
|
6,322
|
11,691
|
|||||
Cash
and Cash Equivalents at Beginning of Period
|
4,884
|
5,272
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
11,206
|
$
|
16,963
|
|||
Supplemental
Disclosures of Non-Cash Investing
Activities:
|
|||||||
Capital Expenditures acquired on account but unpaid as of March 31 | $ | 5,976 | $ | 2,702 | |||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
|||||||
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
|||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|||||||
(In
Thousands)
|
|||||||
March
31,
|
December
31,
|
||||||
2006
|
|
|
2005
|
||||
Assets
|
(As
Restated
See
Note 13)
|
||||||
Property,
Plant and Equipment:
|
|||||||
Utility
Plant, at original cost
|
$
|
1,042,046
|
$
|
1,030,028
|
|||
Accumulated Depreciation
|
(245,811
|
)
|
(241,242
|
)
|
|||
Nonutility
Property and Equipment, at cost
|
97,688
|
94,623
|
|||||
Accumulated Depreciation
|
(6,574
|
)
|
(6,061
|
)
|
|||
Property,
Plant
and Equipment - Net
|
887,349
|
877,348
|
|||||
Investments:
|
|||||||
Available-for-Sale
Securities
|
5,907
|
5,642
|
|||||
Restricted
|
16,729
|
8,234
|
|||||
Investment
in
Affiliates
|
2,472
|
2,094
|
|||||
Total
Investments
|
25,108
|
15,970
|
|||||
Current
Assets:
|
|||||||
Cash
and Cash Equivalents
|
11,206
|
4,884
|
|||||
Accounts
Receivable
|
166,720
|
138,139
|
|||||
Unbilled
Revenues
|
41,930
|
59,066
|
|||||
Provision
for
Uncollectibles
|
(6,389
|
)
|
(5,871
|
)
|
|||
Natural
Gas in Storage, average cost
|
68,945
|
117,542
|
|||||
Materials
and
Supplies, average cost
|
4,442
|
4,758
|
|||||
Deferred
Income
Taxes - Net
|
-
|
624
|
|||||
Prepaid
Taxes
|
1,490
|
13,061
|
|||||
Derivatives
-
Energy Related Assets
|
21,953
|
24,408
|
|||||
Other
Prepayments and Current Assets
|
4,887
|
5,415
|
|||||
Total
Current Assets
|
315,184
|
362,026
|
|||||
Regulatory
and Other Noncurrent Assets:
|
|||||||
Regulatory
Assets
|
122,885
|
122,486
|
|||||
Prepaid
Pension
|
29,283
|
30,075
|
|||||
Derivatives
-
Energy Related Assets
|
5,311
|
5,080
|
|||||
Derivatives
-
Other
|
1,567
|
-
|
|||||
Unamortized
Debt Issuance Costs
|
7,376
|
7,147
|
|||||
Contract
Receivables
|
14,473
|
14,766
|
|||||
Other
|
6,604
|
6,814
|
|||||
Total
Regulatory and Other Noncurrent Assets
|
187,499
|
186,368
|
|||||
Total
Assets
|
$
|
1,415,140
|
$
|
1,441,712
|
|||
The
accompanying footnotes are an integral part of the condensed
consolidated
financial statements.
|
|||||||
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
|||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|||||||
(In
Thousands)
|
|||||||
|
|||||||
March
31,
|
December
31,
|
||||||
2006
|
|
|
2005
|
||||
Capitalization
and Liabilities
|
(As
Restated
See
Note 13)
|
||||||
Common
Equity:
|
|||||||
Common
Stock
|
$
|
36,396
|
$
|
36,228
|
|||
Premium
on Common Stock
|
233,205
|
231,861
|
|||||
Accumulated
Other Comprehensive Loss
|
(3,064
|
)
|
(4,445
|
)
|
|||
Retained
Earnings
|
154,187
|
130,001
|
|||||
Total
Common Equity
|
420,724
|
393,645
|
|||||
Long-Term
Debt
|
335,428
|
319,066
|
|||||
Total
Capitalization
|
756,152
|
712,711
|
|||||
Minority
Interest
|
435
|
394
|
|||||
Current
Liabilities:
|
|||||||
Notes
Payable
|
122,100
|
147,300
|
|||||
Current
Maturities of Long-Term Debt
|
2,364
|
2,364
|
|||||
Accounts
Payable
|
103,946
|
179,023
|
|||||
Customer
Deposits
|
14,208
|
12,534
|
|||||
Environmental
Remediation Costs
|
20,774
|
18,165
|
|||||
Taxes
Accrued
|
19,022
|
7,456
|
|||||
Derivatives
-
Energy Related Liabilities
|
28,603
|
21,957
|
|||||
Deferred
Income
Taxes - Net
|
3,697
|
-
|
|||||
Deferred
Contract Revenues
|
4,139
|
5,077
|
|||||
Dividends Payable | 6,551 | - | |||||
Interest Accrued | 4,920 | 6,258 | |||||
Other Current Liabilities | 9,552 | 6,077 | |||||
Total
Current Liabilities
|
339,876
|
406,211
|
|||||
Deferred
Credits and Other Noncurrent Liabilities:
|
|||||||
Deferred
Income
Taxes - Net
|
171,324
|
169,423
|
|||||
Investment
Tax
Credits
|
2,714
|
2,795
|
|||||
Pension
and Other Postretirement Benefits
|
18,561
|
18,942
|
|||||
Asset
Retirement Obligations
|
22,934
|
22,588
|
|||||
Environmental
Remediation Costs
|
37,345
|
42,489
|
|||||
Derivatives
-
Energy Related Liabilities
|
3,746
|
4,895
|
|||||
Derivatives
-
Other
|
-
|
-
|
|||||
Regulatory
Liabilities
|
55,437
|
54,002
|
|||||
Other | 6,616 | 7,262 | |||||
Total
Deferred Credits
|
|||||||
and
Other Noncurrent Liabilities
|
318,677
|
322,396
|
|||||
Commitments
and Contingencies (Note 11)
|
|||||||
Total
Capitalization and Liabilities
|
$
|
1,415,140
|
$
|
1,441,712
|
|||
The
accompanying notes are an integral part of the condensed consolidated
financial statements.
|
|||||||
Amount
|
|
|
Fixed
Interest
Rate
|
Start
Date
|
|
|
Maturity
|
|
|
Type
|
|
|
Amortization
|
|
|||
$ 6,000,000
|
*
|
|
4.550
|
%
|
|
11/19/2001
|
|
|
12/01/2007
|
|
|
Taxable
|
|
|
Yes
|
|
|
$
3,900,000
|
|
|
4.795
|
%
|
|
12/01/2004
|
|
|
12/01/2014
|
|
|
Taxable
|
|
|
No
|
|
|
$ 8,000,000
|
|
|
4.775
|
%
|
|
11/12/2004
|
|
|
11/12/2014
|
|
|
Taxable
|
|
|
No
|
|
|
$ 20,000,000
|
|
|
4.080
|
%
|
|
11/19/2001
|
|
|
12/01/2011
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 14,500,000
|
|
|
3.905
|
%
|
|
03/17/2006
|
|
|
01/15/2026
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$
500,000
|
|
|
3.905
|
%
|
|
03/17/2006
|
|
|
01/15/2026
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$
330,000
|
|
|
3.905
|
%
|
|
03/17/2006
|
|
|
01/15/2026
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 12,500,000
|
**
|
|
3.430
|
%
|
|
12/01/2006
|
|
|
02/01/2036
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 12,500,000
|
**
|
|
3.430
|
%
|
|
12/01/2006
|
|
|
02/01/2036
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$
7,100,000
|
4.895
|
%
|
02/01/2006
|
02/01/2016
|
Taxable
|
No
|
Grant
|
Shares
|
|
Fair
Value
|
|
|
Expected
|
|
|
Risk-Free
|
|
||||||
|
|
|
Date
|
|
|
Granted
|
|
|
Per
Share
|
|
|
Volatility
|
|
|
Interest
Rate
|
|
Officers
-
|
Jan. 2004
|
43,798
|
$
|
20.105
|
|
|
16.4%
|
|
|
2.4%
|
|
|||||
|
|
|
Jan.
2005
|
|
|
38,316
|
|
$
|
25.155
|
|
|
15.5%
|
|
|
3.4%
|
|
Jan.
2006
|
42,983
|
$
|
27.950
|
16.9%
|
|
4.5%
|
|
|||||||||
Directors
-
|
Dec. 2003
|
4,560
|
$
|
19.738
|
-
|
|
|
-
|
|
|||||||
Dec.
2004
|
5,220
|
$
|
24.955
|
-
|
|
|
-
|
|
||||||||
Dec.
2005
|
6,340
|
$
|
29.970
|
-
|
|
|
-
|
|
Officers
*
|
Directors
*
|
|||
|
||||
Nonvested
Shares Outstanding, beginning of Period
|
143,734
|
|
16,120
|
|
Granted
|
42,983
|
|
-
|
|
Vested**
|
(61,620)
|
-
|
||
Cancelled/Forfeited
|
-
|
-
|
||
|
|
|
||
Nonvested
Shares Outstanding, end of Period
|
125,097
|
16,120
|
||
|
||||
*
excludes accrued dividend equivalents
|
||||
**
actual shares awarded upon vesting, including dividend equivalents
and
adjustments for
|
||||
performance measures, totaled 101,009
shares.
|
|
|
Years
Remaining
|
|
|
|
|
|
||||||
|
|
as
of
|
|
March
31,
|
December
31,
|
||||||||
|
|
March
31, 2006
|
|
2006
|
|
2005
|
|||||||
Environmental
Remediation Costs:
|
|
|
|
|
|
|
|
|
|
||||
Expended
— Net
|
|
|
Various
|
|
$
|
10,305
|
|
$
|
9,350
|
||||
Liability
for Future Expenditures
|
|
|
Not
Applicable
|
|
|
54,189
|
|
|
56,717
|
||||
Income
Taxes — Flowthrough
|
|
|
|
|
|
|
|
|
|||||
Depreciation
|
|
|
5
|
|
|
5,419
|
|
|
5,663
|
||||
Deferred
Fuel Costs — Net
|
|
|
Various
|
|
|
17,958
|
|
|
21,237
|
||||
Deferred
Asset Retirement Obligation-Related Costs
|
|
|
Not
Applicable
|
|
|
20,255
|
|
|
19,986
|
||||
Postretirement
Benefit Costs
|
|
|
7
|
|
|
2,551
|
|
|
2,646
|
||||
Gross
Receipts and Franchise Taxes
|
|
|
1
|
|
|
370
|
|
|
480
|
||||
Temperature Adjustment Clause Receivable |
Various
|
7,021 | 1,003 | ||||||||||
Societal
Benefit Costs
|
|
|
Various
|
|
|
2,160
|
|
|
2,691
|
||||
Premium
for Early Retirement of Debt
|
|
|
Various
|
|
|
1,654
|
|
|
1,694
|
||||
Other
|
|
|
Not
Applicable
|
|
|
1,003
|
|
|
1,019
|
||||
Total
Regulatory Assets
|
|
|
|
|
$
|
122,885
|
|
$
|
122,486
|
March
31,
|
December
31,
|
||||||
|
|
2006
|
|
2005
|
|
||
Excess
Plant Removal Costs
|
|
$
|
48,260
|
|
$
|
48,071
|
|
Overcollected
State Taxes
|
|
|
4,073
|
|
|
4,025
|
|
Other
|
|
|
3,104
|
|
|
1,906
|
|
Total
Regulatory Liabilities
|
|
$
|
55,437
|
|
$
|
54,002
|
|
|
|
2006
|
2005
|
|
|||
Loss
before Income Taxes:
|
|
|
|
|
|
|
|
Sand
Mining
|
|
$
|
(143
|
)
|
$
|
(212
|
)
|
Fuel
Oil
|
|
|
(112
|
)
|
|
(10
|
)
|
Income
Tax Benefits
|
|
|
89
|
|
78
|
|
|
Loss
from Discontinued Operations — Net
|
|
$
|
(166
|
)
|
$
|
(144
|
)
|
Earnings
Per Common Share from
|
|
|
|
|
|
||
Discontinued
Operations — Net:
|
|
|
|
|
|
||
Basic
and Diluted
|
|
$
|
(0.006
|
)
|
$
|
(0.005
|
)
|
|
|
March
31,
2006
|
|
December
31,
2005
|
|||||
Beginning
Balance, January 1
|
|
|
28,982,440
|
|
Beginning
Balance, January 1
|
|
27,759,936
|
||
New
Issues During Quarter:
|
|
|
|
|
New
Issues During Year:
|
|
|
||
Dividend
Reinvestment Plan
|
|
|
33,099
|
|
Dividend
Reinvestment Plan
|
|
1,141,590
|
||
Stock-Based
Compensation Plan
|
|
|
101,009
|
|
Stock-Based
Compensation Plan
|
|
80,914
|
||
Ending
Balance, March 31
|
|
|
29,116,548
|
|
Ending
Balance, December 31
|
|
28,982,440
|
|
|
2006
|
2005
|
|
|||
(Restated)
|
|
||||||
Operating
Revenues:
|
|
|
|
|
|
||
Gas
Utility Operations
|
|
$
|
277,081
|
$
|
214,537
|
|
|
Wholesale
Gas Operations
|
|
|
21,985
|
|
11,502
|
|
|
Retail
Gas and Other Operations
|
|
|
59,063
|
|
74,487
|
|
|
Retail
Electric Operations
|
|
|
13,036
|
|
22,698
|
|
|
On-Site
Energy Production
|
|
|
7,843
|
|
6,498
|
|
|
Appliance
Service Operations
|
|
|
3,774
|
|
3,425
|
|
|
Corporate
and Services
|
3,170
|
540
|
|||||
Subtotal
|
|
|
385,952
|
|
333,687
|
|
|
Intersegment
Sales
|
|
|
(13,341
|
)
|
|
(5,175
|
)
|
Total
Operating Revenues
|
|
$
|
372,611
|
$
|
328,512
|
|
|
|
|
|
|
|
||
Operating
Income:
|
|
|
|
|
|
||
Gas
Utility Operations
|
|
$
|
43,180
|
$
|
43,160
|
|
|
Wholesale
Gas Operations
|
|
|
12,705
|
|
4,642
|
|
|
Retail
Gas and Other Operations
|
|
|
(1,100
|
) |
|
303
|
|
Retail
Electric Operations
|
|
|
508
|
|
434
|
|
|
On-Site
Energy Production
|
|
|
2,021
|
|
1,624
|
|
|
Appliance
Service Operations
|
|
|
752
|
|
698
|
|
|
Corporate
and Services
|
|
|
162
|
|
(186
|
)
|
|
Total
Operating Income
|
|
$
|
58,228
|
$
|
50,675
|
|
|
|
|
|
|
|
|
||
Depreciation
and Amortization:
|
|
|
|
|
|
||
Gas
Utility Operations
|
|
$
|
6,329
|
$
|
6,069
|
|
|
Wholesale
Gas Operations
|
|
|
3
|
|
4
|
|
|
Retail
Gas and Other Operations
|
|
|
2
|
|
3
|
|
|
Appliance
Service Operations
|
|
|
57
|
|
36
|
|
|
On-Site
Energy Production
|
|
|
461
|
|
446
|
|
|
Corporate
and Services
|
|
|
61
|
|
27
|
|
|
Discontinued
Operations
|
|
|
—
|
|
—
|
|
|
Total
Depreciation and Amortization
|
|
$
|
6,913
|
$
|
6,585
|
|
|
|
|
|
|
|
|
||
Property
Additions:
|
|
|
|
|
|
||
Gas
Utility Operations
|
|
$
|
13,121
|
$
|
12,110
|
|
|
Wholesale
Gas Operations
|
|
|
3
|
|
—
|
|
|
Retail
Gas and Other Operations
|
|
|
—
|
|
3
|
|
|
Appliance
Service Operations
|
|
|
45
|
|
27
|
|
|
On-Site
Energy Production
|
|
|
2,745
|
|
5,391
|
|
|
Corporate
and Services
|
|
|
208
|
|
5
|
|
|
Discontinued
Operations
|
—
|
—
|
|||||
Total
Property Additions
|
|
$
|
16,122
|
$
|
17,536
|
|
|
|
|
|
|
|
|
||
March
31,
|
December
31,
|
||||||
2006
|
2005
|
||||||
|
|
|
(Restated)
|
||||
Identifiable
Assets:
|
|
|
|
|
|
||
Gas
Utility Operations
|
|
$
|
1,153,372
|
$
|
1,167,398
|
|
|
Wholesale
Gas Operations
|
|
|
108,138
|
|
124,922
|
|
|
Retail
Gas and Other Operations
|
|
|
44,759
|
|
50,880
|
|
|
Retail
Electric Operations
|
|
|
6,303
|
|
7,751
|
|
|
Appliance
Service Operations
|
|
|
13,286
|
|
13,624
|
|
|
On-Site
Energy Production
|
|
|
112,976
|
|
105,822
|
||
Discontinued
Operations
|
|
|
403
|
|
408
|
|
|
Subtotal
|
|
|
1,439,237
|
|
1,470,805
|
|
|
Corporate
and Services
|
|
|
70,734
|
|
70,379
|
|
|
Intersegment
Assets
|
|
|
(94,831
|
)
|
|
(99,472
|
)
|
Total
Identifiable Assets
|
|
$
|
1,415,140
|
$
|
1,441,712
|
|
Pension
Benefits
|
Other
Postretirement Benefits
|
|||||||||||||||||
|
2006
|
2005
|
|
2006
|
2005
|
|
||||||||||||
Service
Cost
|
|
$
|
855
|
|
$
|
831
|
|
$
|
198
|
$
|
409
|
|
||||||
Interest
Cost
|
|
|
1,786
|
|
|
1,719
|
|
|
471
|
|
704
|
|
||||||
Expected
Return on Plan Assets
|
|
|
(2,264
|
)
|
|
(1,939
|
)
|
|
(349
|
|
(409
|
)
|
||||||
Amortization
of Loss and Other
|
|
|
793
|
|
|
663
|
|
|
30
|
|
39
|
|
||||||
Net
Periodic
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefit Cost
|
|
|
1,170
|
|
|
1,274
|
|
|
350
|
|
743
|
|
||||||
Capitalized
Benefit Costs
|
|
|
(399
|
)
|
|
(386
|
)
|
|
(98
|
|
(221
|
)
|
||||||
Total
Net Periodic
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefit
Expense
|
|
$
|
771
|
|
$
|
888
|
|
$
|
252
|
$
|
522
|
|
|
|
|
|
Other
Postretirement
|
|
||
|
|
Pension
Benefits
|
|
Benefits
|
|
||
2006
|
|
$
|
5,937
|
|
$
|
2,262
|
|
2007
|
|
|
6,028
|
|
|
2,490
|
|
2008
|
|
|
6,132
|
|
|
2,636
|
|
2009
|
|
|
6,256
|
|
|
2,733
|
|
2010
|
|
|
6,369
|
|
|
2,891
|
|
2011-2015
|
|
|
35,830
|
|
|
14,537
|
|
|
|
|
Up
to
|
|
Years
|
|
Years
|
|
More
than
|
|
||||||
Contractual
Cash Obligations
|
|
Total
|
|
1
Year
|
|
2
& 3
|
|
4
& 5
|
|
5
Years
|
|
|||||
Long-Term
Debt
|
|
$
|
337,792
|
|
$
|
2,364
|
|
$
|
2,479
|
|
$
|
10,235
|
|
$
|
322,714
|
|
Interest
on Long-Term Debt
|
|
|
289,509
|
|
|
19,647
|
|
|
38,805
|
|
|
38,685
|
|
|
192,372
|
|
Operating
Leases
|
|
|
697
|
|
|
299
|
|
|
299
|
|
|
99
|
|
|
—
|
|
Construction
Obligations
|
|
|
113,272
|
|
|
43,444
|
|
|
69,828
|
|
|
—
|
|
|
—
|
|
Commodity
Supply Purchase Obligations
|
|
|
427,815
|
|
|
195,367
|
|
|
112,387
|
|
|
49,181
|
|
|
70,880
|
|
New
Jersey Clean Energy Program
|
|
|
18,383
|
|
|
5,133
|
|
|
13,250
|
|
|
—
|
|
|
—
|
|
Other
Purchase Obligations
|
|
|
18,676
|
|
|
9,693
|
|
|
8,083
|
|
|
900
|
|
|
—
|
|
Total
Contractual Cash Obligations
|
|
$
|
1,206,144
|
|
$
|
275,947
|
|
$
|
245,131
|
|
$
|
99,100
|
|
$
|
585,966
|
|
|
|
|
Three
Months Ended March 31, 2006
|
Year
Ended
December
31, 2005
|
|||
Beginning
Balance
|
|
$
|
60,654
|
|
$
|
54,991
|
|
Accruals
and Adjustments
|
|
|
(76
|
)
|
|
11,791
|
|
Expenditures
|
|
|
(1,987
|
)
|
|
(6,128
|
)
|
Insurance
Recoveries
|
|
|
(473
|
)
|
|
-
|
|
Ending
Balance
|
|
$
|
58,118
|
|
$
|
60,654
|
Three
Months Ended March 31, 2006
|
Three
Months Ended March 31, 2005
|
||||||||
As
Previously
|
As
Previously
|
||||||||
Condensed Consolidated Statements of Income |
Reported
|
As
Restated
|
Reported
|
As
Restated
|
|||||
|
|||||||||
Nonutility
Revenue
|
95,454
|
103,090
|
116,403
|
116,345
|
|||||
Total
Operating Revenues
|
364,975
|
372,611
|
328,570
|
328,512
|
|||||
Cost
of Sales - Nonutility
|
82,056
|
83,178
|
103,141
|
103,141
|
|||||
Total
Operating Expenses
|
313,261
|
314,383
|
277,837
|
277,837
|
|||||
Operating
Income
|
51,714
|
58,228
|
50,733
|
50,675
|
|||||
Income
Before Income Taxes
|
45,497
|
52,011
|
45,812
|
45,754
|
|||||
Income
Taxes
|
(18,810
|
) |
(21,486
|
) |
(19,114
|
) |
(19,090
|
) | |
Income
from Continuing Operations
|
27,065
|
30,903
|
26,892
|
26,858
|
|||||
Net
Income
|
26,899
|
30,737
|
26,748
|
26,714
|
|||||
Basic
Earnings per Common Share - Continuing Operations
|
0.932
|
1.064
|
0.967
|
0.966
|
|||||
Basic
Earnings per Common Share
|
0.926
|
1.058
|
0.962
|
0.961
|
|||||
Diluted
Earnings per Common Share - Cont Ops
|
0.930
|
1.062
|
0.960
|
0.958
|
|||||
Diluted
Earnings per Common Share
|
0.924
|
1.056
|
0.955
|
0.953
|
|||||
Three
Months Ended March 31, 2006
|
Three
Months Ended March 31, 2005
|
||||||||
As
Previously
|
As
Previously
|
||||||||
Condensed Consolidated Statements of Comprehensive Income |
Reported
|
As
Restated
|
Reported
|
As
Restated
|
|||||
|
|
|
|||||||
Net
Income
|
|
26,899
|
30,737
|
26,748
|
26,714
|
||||
Change
in Fair Value of Derivatives - Energy Related
|
5,129
|
-
|
(43
|
) |
-
|
||||
Other
Comprehensive Income (Loss) - Net of Tax
|
|
6,510
|
1,381
|
299
|
342
|
||||
Comprehensive
Income
|
33,409
|
32,118
|
27,047
|
27,056
|
|||||
Three
Months Ended March 31, 2006
|
Three
Months Ended March 31, 2005
|
||||||||
As
Previously
|
As
Previously
|
||||||||
Condensed
Consolidated Statements of Cash Flows
|
Reported
|
As
Restated
|
Reported
|
As
Restated
|
|||||
Income
from Continuing Operations
|
27,065
|
30,903
|
26,892
|
26,858
|
|||||
Unrealized
Gain on Derivatives - Energy Related
|
(5,003)
|
(9,531)
|
(4,143)
|
(4,070)
|
|||||
Deferred and Noncurrent Income Taxes and Credits - Net | 3,217 | 5,077 | 5,501 | 5,471 | |||||
Accounts
Receivable
|
(17,977)
|
(11,972)
|
(33,592)
|
(33,592)
|
|||||
Inventories
|
47,862
|
48,913
|
64,627
|
64,612
|
|||||
Prepaid
and Accrued Taxes - Net
|
22,404
|
23,220
|
22,039
|
22,045
|
|||||
Accounts
Payable and Other Accrued Liabilities
|
(62,464)
|
(67,880)
|
(1,366)
|
(7,542)
|
|||||
Other Assets | 57 | (10,120 | ) | 4,308 | 4,308 | ||||
Net
Cash Provided by Operating Activities
|
50,069
|
43,518
|
94,126
|
87,950
|
|||||
Dividends
on Common Stock
|
(6,551)
|
-
|
(6,176)
|
-
|
|||||
Net
Cash Used in Financing Activities
|
(14,792)
|
(8,241)
|
(76,076)
|
(69,900)
|
March
31, 2006
|
||||||||
As
Previously
|
||||||||
Condensed
Consolidated Balance Sheets
|
Reported
|
As
Restated
|
||||||
Accounts
Receivable
|
170,622
|
166,720
|
||||||
Natural Gas in Storage, avg cost | 65,837 | 68,945 | ||||||
Total
Current Assets
|
315,978
|
315,184
|
||||||
Regulatory Assets | 115,864 | 122,885 | ||||||
Total Regulatory and Noncurrent Assets | 180,478 | 187,499 | ||||||
Total
Assets
|
1,408,913
|
1,415,140
|
||||||
Accumulated
Other Comprehensive Loss
|
(4,751
|
) |
(3,064
|
) | ||||
Retained
Earnings
|
154,705
|
154,187
|
||||||
Total
Common Equity
|
419,555
|
420,724
|
||||||
Total
Capitalization
|
754,983
|
756,152
|
||||||
Customer Deposits | 9,967 | 14,208 | ||||||
Taxes
Accrued
|
18,205
|
19,022
|
||||||
Total
Current Liabilities
|
334,818
|
339,876
|
||||||
Total
Capitalization and Liabilities
|
1,408,913
|
1,415,140
|
||||||
|
|
|
2006
|
|
2005
|
|
|||
|
|
|
|||||||
Utility
Operating Revenues (Thousands):
|
|
|
|||||||
Firm
Sales -
|
|
|
|||||||
Residential
|
$
|
166,436
|
$
|
97,171
|
|||||
Commercial
|
51,409
|
35,204
|
|||||||
Industrial
|
2,014
|
2,055
|
|||||||
Cogeneration
&
Electric
Generation
|
1,057
|
849
|
|||||||
Firm
Transportation -
|
|
||||||||
Residential
|
1,362
|
15,486
|
|||||||
Commercial
|
4,221
|
5,908
|
|||||||
Industrial
|
3,270
|
3,318
|
|||||||
Cogeneration
&
Electric
Generation
|
-
|
45
|
|||||||
|
|
|
|||||||
Total
Firm Revenues
|
229,769
|
160,036
|
|||||||
|
|
|
|||||||
Interruptible
|
399
|
415
|
|||||||
Interruptible
Transportation
|
634
|
599
|
|||||||
Off-System
|
41,643
|
48,905
|
|||||||
Capacity
Release & Storage
|
4,302
|
4,192
|
|||||||
Other
|
334
|
390
|
|||||||
Intercompany
Sales
|
|
(7,560 | ) |
(2,370
|
)
|
||||
|
|
|
|||||||
Total
Utility Operating
Revenues
|
$ |
269,521
|
$
|
212,167
|
|||||
|
|
|
|||||||
Utility
Throughput (MMcf):
|
|
|
|||||||
Firm
Sales -
|
|
|
|||||||
Residential
|
9,774
|
8,304
|
|||||||
Commercial
|
3,279
|
3,353
|
|||||||
Industrial
|
100
|
100
|
|||||||
Cogeneration
&
Electric
Generation
|
29
|
65
|
|||||||
Firm
Transportation -
|
|
||||||||
Residential
|
312
|
3,804
|
|||||||
Commercial
|
1,594
|
2,279
|
|||||||
Industrial
|
3,360
|
4,139
|
|||||||
Cogeneration
&
Electric
Generation
|
2
|
11
|
|||||||
|
|
|
|||||||
Total
Firm
Throughput
|
18,450
|
22,055
|
|||||||
|
|
|
|||||||
Interruptible
|
31
|
38
|
|||||||
Interruptible
Transportation
|
972
|
855
|
|||||||
Off-System
|
4,118
|
6,663
|
|||||||
Capacity
Release & Storage
|
15,105
|
17,354
|
|||||||
|
|
|
|||||||
Total
Utility
Throughput
|
38,676
|
46,965
|
|||||||
|
|
|
2006
vs. 2005
|
||||
Utility
|
$
|
(1,457
|
)
|
|
Nonutility:
|
||||
Wholesale
Gas
|
257
|
|||
Retail
Gas and Other
|
(1,120
|
)
|
||
Retail
Electricity
|
(36
|
)
|
||
On-Site
Energy Production
|
396
|
|||
Appliance
Service
|
(23
|
)
|
||
Total
Nonutility
|
(526
|
)
|
||
Corporate
and Services
|
1,926
|
|||
Intercompany
Eliminations
|
(2,473
|
)
|
||
Total
Operations
|
$
|
(2,530
|
)
|
|
|
2006
vs. 2005
|
|
|
Maintenance
|
|
$
|
(88
|
)
|
Depreciation
|
|
|
469
|
|
Energy
and Other Taxes
|
|
|
(427
|
)
|
As
of
|
As
of
|
||||||||
|
March
31, 2006
|
December
31, 2005
|
|||||||
|
|||||||||
Common
Equity
|
47.7%
|
45.6%
|
|||||||
Long-Term
Debt
|
38.1%
|
37.3%
|
|||||||
Short-Term
Debt
|
14.2%
|
17.1%
|
|||||||
Total
|
100.0%
|
100.0%
|
|
|
|
Up
to
|
|
Years
|
|
Years
|
|
More
than
|
|
||||||
Contractual
Cash Obligations
|
|
Total
|
|
1
Year
|
|
2
& 3
|
|
4
& 5
|
|
5
Years
|
|
|||||
Long-Term
Debt
|
|
$
|
337,792
|
|
$
|
2,364
|
|
$
|
2,479
|
|
$
|
10,235
|
|
$
|
322,714
|
|
Interest
on Long-Term Debt
|
|
|
289,509
|
|
|
19,647
|
|
|
38,805
|
|
|
38,685
|
|
|
192,372
|
|
Operating
Leases
|
|
|
697
|
|
|
299
|
|
|
299
|
|
|
99
|
|
|
—
|
|
Construction
Obligations
|
|
|
113,272
|
|
|
43,444
|
|
|
69,828
|
|
|
—
|
|
|
—
|
|
Commodity
Supply Purchase Obligations
|
|
|
427,815
|
|
|
195,367
|
|
|
112,387
|
|
|
49,181
|
|
|
70,880
|
|
New
Jersey Clean Energy Program
|
|
|
18,383
|
|
|
5,133
|
|
|
13,250
|
|
|
—
|
|
|
—
|
|
Other
Purchase Obligations
|
|
|
18,676
|
|
|
9,693
|
|
|
8,083
|
|
|
900
|
|
|
—
|
|
Total
Contractual Cash Obligations
|
|
$
|
1,206,144
|
|
$
|
275,947
|
|
$
|
245,131
|
|
$
|
99,100
|
|
$
|
585,966
|
|
Assets
|
|
Source
of
|
|
Maturity
|
|
Maturity
|
|
Beyond
|
|
|
|
|||||
|
|
|
Fair
Value
|
|
|
<
1 Year
|
|
|
1
-
3 Years
|
|
|
3
Years
|
|
|
Total
|
|
Prices
Actively Quoted
|
|
|
NYMEX
|
|
$
|
14,375
|
|
$
|
3,058
|
|
$
|
921
|
|
$
|
18,354
|
|
Other
External Sources
|
|
|
Basis
|
|
$
|
7,578
|
|
$
|
1,248
|
|
$
|
84
|
|
$
|
8,910
|
|
Total
|
|
|
|
|
$
|
21,953
|
|
$
|
4,306
|
|
$
|
1,005
|
|
$
|
27,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
Source
of
|
|
|
Maturity
|
|
|
Maturity
|
|
|
Beyond
|
|
|
|
|
|
|
|
Fair Value
|
|
|
<
1 Year
|
|
|
1
-
3 Years
|
|
|
3
Years
|
|
|
Total
|
|
Prices
Actively Quoted
|
|
|
NYMEX
|
|
$
|
24,700
|
|
$
|
2,670
|
|
$
|
839
|
|
$
|
28,209
|
|
Other
External Sources
|
|
|
Basis
|
|
$
|
3,903
|
|
$
|
237
|
|
$
|
-
|
|
$
|
4,140
|
|
Total
|
|
|
|
|
$
|
28,603
|
|
$
|
2,907
|
|
$
|
839
|
|
$
|
32,349
|
|
Net
Derivatives — Energy Related Assets, January 1, 2006
|
|
$
|
2,636
|
|
Contracts
Settled During
Quarter Ended March 31, 2006, Net
|
|
|
1,398
|
|
Other
Changes in Fair Value
from Continuing and New Contracts, Net
|
|
|
(9,119
|
)
|
|
|
|
|
|
Net
Derivatives — Energy Related Liabilities, March 31, 2006
|
|
$
|
(5,085
|
)
|
Amount
|
Fixed
Interest
Rate
|
Start
Date
|
Maturity
|
Type
|
Amortization
|
|
|||||||||||
$
6,000,000
|
*
|
|
4.550
|
%
|
|
11/19/2001
|
|
|
12/01/2007
|
|
|
Taxable
|
|
|
Yes
|
|
|
$
3,900,000
|
|
|
4.795
|
%
|
|
12/01/2004
|
|
|
12/01/2014
|
|
|
Taxable
|
|
|
No
|
|
|
$
8,000,000
|
|
|
4.775
|
%
|
|
11/12/2004
|
|
|
11/12/2014
|
|
|
Taxable
|
|
|
No
|
|
|
$ 20,000,000
|
|
|
4.080
|
%
|
|
11/19/2001
|
|
|
12/01/2011
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 14,500,000
|
|
|
3.905
|
%
|
|
03/17/2006
|
|
|
01/15/2026
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$
500,000
|
|
|
3.905
|
%
|
|
03/17/2006
|
|
|
01/15/2026
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$
330,000
|
|
|
3.905
|
%
|
|
03/17/2006
|
|
|
01/15/2026
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 12,500,000
|
**
|
|
3.430
|
%
|
|
12/01/2006
|
|
|
02/01/2036
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 12,500,000
|
**
|
|
3.430
|
%
|
|
12/01/2006
|
|
|
02/01/2036
|
|
|
Tax-exempt
|
|
|
No
|
|
|
$ 7,100,000
|
4.895
|
%
|
02/01/2006
|
02/01/2016
|
Taxable
|
No
|
Exhibit
No.
|
Description
|
|
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange
Act.
|
|
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange
Act.
|
|
|
32.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(b) of the Exchange
Act
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(subsections (a) and (b) of Section 1350, Chapter 63 of Title 18,
United
States Code).
|
|
|
32.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(b) of the Exchange
Act
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(subsections (a) and (b) of Section 1350, Chapter 63 of Title 18,
United
States Code).
|
Dated: April
9, 2007
|
By:
/s/ Edward J. Graham
|
Edward
J. Graham
|
|
Chairman,
President & Chief Executive Officer
|
|
Dated: April
9, 2007
|
By:
/s/ David A. Kindlick
|
David
A. Kindlick
|
|
Vice
President & Chief Financial
Officer
|