Current Report on Form 8-K



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

     

Form 8-K
CURRENT REPORT

     
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 12, 2002
     

SOUTHWEST GAS CORPORATION
(Exact name of registrant as specified in its charter)

     
California
(State or other jurisdiction of
incorporation or organization)


5241 Spring Mountain Road
Post Office Box 98510
Las Vegas, Nevada
(Address of principal executive offices)
 1-7850
(Commission
File Number) 		88-0085720
(I.R.S. Employer
Identification No.)


89193-8510
(Zip Code)


Registrant's telephone number, including area code: (702) 876-7237





Item 9. Regulation FD Disclosure

On August 12, 2002, Southwest Gas Corporation (the Company) released summary financial information to the general public, including the investment community, regarding the Company’s operating performance and financial position for the quarter, six months, and twelve months ended June 30, 2002. The financial information released is included herein. The following information is summary in nature and should not be considered complete financial statements.



SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)


  SIX MONTHS ENDED
JUNE 30,
  TWELVE MONTHS ENDED
JUNE 30,
  2002   2001   2002   2001  
Gas operating revenues $ 667,630   $ 673,516   $ 1,187,216   $ 1,119,263  
Net cost of gas sold   379,285     409,169     647,663     610,186  
Operating margin   288,345     264,347     539,553     509,077  
Operations and maintenance expenses   130,335     124,261     259,100     241,769  
Depreciation, amortization, and general taxes   73,549     68,381     142,446     130,941  
Operating income   84,461     71,705     138,007     136,367  
Net interest deductions   39,168     39,528     78,386     75,535  
Preferred securities distribution   2,738     2,738     5,475     5,475  
Pretax utility income   42,555     29,439     54,146     55,357  
Utility income taxes   16,184     11,216     17,979     18,796  
Net utility income   26,371     18,223     36,167     36,561  
Merger litigation settlements, net   (9,000 )    --     (9,000 )    --  
Other income (expense), net   3,286     2,741     5,152     4,896  
Contribution to net income - gas operations   20,657     20,964     32,319     41,457  
Contribution to net income - construction services   1,629     1,705     4,454     4,054  
Net income $ 22,286   $ 22,669   $ 36,773   $ 45,511  
Earnings per share - gas operations $ 0.63   $ 0.66   $ 0.99   $ 1.30  
Earnings per share - construction services   0.05     0.05     0.14     0.13  
Basic earnings per share $ 0.68   $ 0.71   $ 1.13   $ 1.43  
Diluted earnings per share $ 0.67   $ 0.70   $ 1.12   $ 1.42  
                         
Average outstanding common shares   32,759     31,911     32,542     31,717  
Average shares outstanding (assuming dilution)   33,025     32,172     32,820     31,967  


See Notes to Summary Financial Statements.



SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)


  THREE MONTHS ENDED
JUNE 30,
  SIX MONTHS ENDED
JUNE 30,
  TWELVE MONTHS ENDED
JUNE 30,
  2002
   2001
   2002
   2001
   2002
   2001
  
Gas operating revenues $ 211,425   $ 226,296   $ 667,630   $ 673,516   $ 1,187,216   $ 1,119,263  
Net cost of gas sold   104,622     129,462     379,285     409,169     647,663     610,186  
 
 
 
 
 
 
 
 
 
Operating margin   106,803     96,834     288,345     264,347     539,553     509,077  
Operations and maintenance expenses   65,033     64,051     130,335     124,261     259,100     241,769  
Depreciation, amortization, and general taxes   36,727     34,018     73,549     68,381     142,446     130,941  
 
 
 
 
 
 
 
Operating income (loss)   5,043     (1,235 )    84,461     71,705     138,007     136,367  
Net interest deductions   20,533     19,753     39,168     39,528     78,386     75,535  
Preferred securities distribution   1,369     1,369     2,738     2,738     5,475     5,475  
 
 
 
 
 
 
 
Pretax utility income (loss)   (16,859 )    (22,357 )    42,555     29,439     54,146     55,357  
Utility income taxes   (6,695 )    (8,567 )    16,184     11,216     17,979     18,796  
 
 
 
 
 
 
 
Net utility income (loss)   (10,164 )    (13,790 )    26,371     18,223     36,167     36,561  
Merger litigation settlements, net   (9,000 )    --     (9,000 )    --     (9,000 )    --  
Other income (expense), net   (2,666 )    1,425     3,286     2,741     5,152     4,896  
 
 
 
 
 
 
 
Contribution to net income (loss)- gas operations   (21,830 )    (12,365 )    20,657     20,964     32,319     41,457  
Contribution to net income - construction services   1,220     1,225     1,629     1,705     4,454     4,054  
 
 
 
 
 
 
 
Net income (loss) $ (20,610 )  $ (11,140 )  $ 22,286   $ 22,669   $ 36,773   $ 45,511  
 
 
 
 
 
 
 
Earnings (loss) per share - gas operations $ (0.67 )  $ (0.39 )  $ 0.63   $ 0.66   $ 0.99   $ 1.30  
Earnings per share - construction services   0.04     0.04     0.05     0.05     0.14     0.13  
 
 
 
 
 
 
 
Basic earnings (loss) per share $ (0.63 )  $ (0.35 )  $ 0.68   $ 0.71   $ 1.13   $ 1.43  
 
 
 
 
 
 
 
Diluted earnings (loss) per share $ (0.63 )  $ (0.35 )  $ 0.67   $ 0.70   $ 1.12   $ 1.42  
 
 
 
 
 
 
 
                                     
Average outstanding common shares   32,897     32,000     32,759     31,911     32,542     31,717  
Average shares outstanding (assuming dilution)   --     --     33,025     32,172     32,820     31,967  


The summary statements of income have been prepared by Southwest Gas Corporation (the Company) using the equity method of accounting for its construction services subsidiary. This presentation is not in accordance with generally accepted accounting principles (GAAP). However, it produces the same net income as the consolidated financial statements and, in management's opinion, is a fair representation of the operations and contributions to net income of the Company's operating segments.



SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT JUNE 30, 2002
(In thousands)
(Unaudited)


ASSETS            
UTILITY PLANT            
    Gas plant, net of accumulated depreciation $ 1,827,324        
    Construction work in progress   58,208        
 
       
        Net utility plant   1,885,532        
 
       
OTHER PROPERTY AND INVESTMENTS            
    Investment in construction services subsidiary   37,545        
    Other   43,229        
 
       
        Total other property and investments   80,774        
 
       
CURRENT AND ACCRUED ASSETS            
    Cash and cash equivalents   4,811        
    Receivables - less reserve of $1,640 for uncollectibles   74,626        
    Accrued utility revenue   27,974        
    Deferred taxes   12,860        
    Other   40,149        
 
       
        Total current and accrued assets   160,420        
 
       
DEFERRED DEBITS            
    Unamortized debt expense   18,210        
    Other deferred debits   24,099        
 
       
        Total deferred debits   42,309        
 
       
        TOTAL ASSETS $ 2,169,035        
 
       
CAPITALIZATION AND LIABILITIES            
CAPITALIZATION            
    Common stockholders' equity            
        Common stock equity, $1 par, 32,969 shares outstanding $ 514,687        
        Retained earnings   65,433        
 
       
            Total common stockholders' equity   580,120   35.1 %  
    Preferred securities of Southwest Gas Capital I, 9.125%   60,000   3.6    
    Long-term debt including current maturities - NOTE 2   1,012,972   61.3    
 
 
 
            Total capitalization   1,653,092   100.0 %  
 
 
 
CURRENT AND ACCRUED LIABILITIES            
    Notes payable   1,500        
    Accounts payable   47,567        
    Customer deposits   32,013        
    Taxes accrued (including income taxes)   38,380        
    Deferred purchased gas costs   19,779        
    Other   67,848        
 
       
            Total current and accrued liabilities   207,087        
 
       
DEFERRED CREDITS            
    Deferred investment tax credits   14,234        
    Deferred income taxes   213,384        
    Other   81,238        
 
       
            Total deferred credits   308,856        
 
       
            TOTAL CAPITALIZATION AND LIABILITIES $ 2,169,035        
 
       


See Notes to Summary Financial Statements.



SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002
(In thousands)
(Unaudited)


CASH FLOWS FROM OPERATIONS:    
    Net income $ 22,286  
    Adjustments to reconcile net income to net      
       cash provided by operating activities:      
       Depreciation and amortization   55,740  
       Change in receivables and payables   46,564  
       Change in gas cost related balancing items   103,280  
       Change in accrued taxes   33,221  
       Change in deferred taxes   (25,093 ) 
       Allowance for funds used during construction   (1,445 ) 
       Other   10,497  
 
 
         Net cash provided by operating activities   245,050  
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:    
    Construction expenditures   (114,662 ) 
    Other   11,476  
 
 
         Net cash used in investing activities   (103,186 ) 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:    
    Net proceeds from stock issuances   10,154  
    Dividends paid   (13,422 ) 
    Change in notes payable   (91,500 ) 
    Retirement of long-term debt   (200,000 ) 
    Temporary paydown of credit facility   (67,000 ) 
    Long-term debt issuances, net   197,948  
 
 
         Net cash used in financing activities   (163,820 ) 
 
 
Change in cash and cash equivalents   (21,956 ) 
Cash at beginning of period   26,767  
 
 
Cash at end of period $ 4,811  
 
 
SUPPLEMENTAL INFORMATION:    
Interest paid, net of amounts capitalized $ 36,675  
Income taxes, net of refunds $ 854  


See Notes to Summary Financial Statements.



SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
 (In thousands)
(Unaudited)


NOTE 1 - BASIS OF PRESENTATION:

        The summary financial statements have been prepared by Southwest Gas Corporation (the Company) using the equity method of
        accounting for its construction services subsidiary. This presentation is not in accordance with generally accepted accounting
        principles (GAAP), and certain information and footnote disclosures normally included in financial statements prepared in accordance
        with GAAP have been omitted. The summary financial statement presentation in this report produces the same net income as
        the consolidated financial statements and, in management's opinion, is a fair representation of the operations and contributions to
        net income of the Company's operating segments.

NOTE 2 - LONG-TERM DEBT:



        Revolving credit facility, variable rate $ 33,000  
        Debentures:      
            7.5% due 2006   75,000  
            8% due 2026   75,000  
        Notes, 8.375%, due 2011   200,000  
        Notes, 7.625%, due 2012   200,000  
        Medium-term notes:      
            7.59% due 2017   25,000  
            7.75% due 2005   25,000  
            7.78% due 2022   25,000  
            7.92% due 2027   25,000  
            6.89% due 2007   17,500  
            6.76% due 2027   7,500  
            6.27% due 2008   25,000  
        Industrial development revenue bonds:      
            Variable-rate bonds, Series A, due 2028   50,000  
            7.3% 1992 Series A, due 2027   30,000  
            7.5% 1992 Series B, due 2032   100,000  
            6.5% 1993 Series A, due 2033   75,000  
            6.1% 1999 Series A, due 2038   12,410  
            5.55% 1999 Series D, due 2038   8,270  
            5.95% 1999 Series C, due 2038   14,320  
        Unamortized discount on long-term debt   (10,028 )  
 
 
        TOTAL LONG-TERM DEBT $ 1,012,972  
 
 
        ESTIMATED CURRENT MATURITIES $ --  
 
 




SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
JUNE 30, 2002


FINANCIAL STATISTICS

Market value to book value per share at year end   141%      
Twelve months to date return on equity -- total company   6.5%  
                                                              -- gas segment   6.0%  
Common stock dividend yield at year end   3.3%  

GAS OPERATIONS SEGMENT

            Authorized  
    Authorized   Authorized   Return on  
    Rate Base   Rate of   Common  
Rate Jurisdiction
   (In thousands)
   Return
   Equity
  
Arizona (1)   $ 541,104     9.38 %   11.25 %
Southern Nevada (1)     237,165     9.50     11.55  
Northern Nevada (1)     63,986     9.67     11.55  
Southern California     69,486     9.94     11.35  
Northern California     28,849     10.02     11.35  
Paiute Pipeline Company (1)     75,059     9.69     11.60

     (1) Estimated amounts based on rate case settlements.

SYSTEM THROUGHPUT BY CUSTOMER CLASS

  SIX MONTHS ENDED
JUNE 30,
  TWELVE MONTHS ENDED
JUNE 30,
(In dekatherms)   2002   2001   2002   2001  
Residential   39,964,402     40,253,470     58,705,210     62,744,237  
Small commercial   16,918,647     17,070,378     27,844,742     28,901,749  
Large commercial   7,432,951     4,216,649     13,974,612     7,484,295  
Industrial / Other   11,651,141     14,251,649     25,776,715     26,829,249  
Transportation   57,251,046     65,119,495     118,951,844     148,143,616  
Total system throughput   133,218,187     140,911,641     245,253,123     274,103,146  


HEATING DEGREE DAY COMPARISON

Actual   1,392     1,449     1,901     2,174  
Ten-year average   1,373     1,361     1,979     1,977  




SIGNATURES



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 hereunto duly authorized.








Date: August 12, 2002 		SOUTHWEST GAS CORPORATION



/s/ ROY R. CENTRELLA
Roy R. Centrella
Vice President/Controller/Chief Accounting Officer