Atmos Energy 1999 Annual Report Download - page 34

Atmos
Energy
Corporation
30
stock under its DSPP and ESOP, and reduction of capital expenditures
to the range of $75.0 million to $80.0 million from the range of
$110.4 million to $135.0 million in 1999 and 1998.
Cash Flows from Financing Activities Net cash provided by financ-
ing activities totaled $28.7 million for 1999 compared with $25.9
million for 1998 and $47.3 million for 1997. Financing activities dur-
ing these periods included issuance of common stock, dividend pay-
ments, short-term borrowings from banks under the Company’s cred-
it lines, and issuance and repayment of long-term debt.
Cash Dividends Paid The Company paid $33.9 million in cash divi-
dends during 1999 compared with $31.8 million in 1998 and $26.4
million in 1997 (excluding dividends of $3.4 million paid by UCGC in
the quarter ended December 31, 1996). Atmos raised the dividend
rate a total of $.04 per share for both 1998 and 1999.
Short-Term Financing Activities At September 30, 1999, the
Company had committed lines of credit for $250.0 million and $12.0
million to provide for short-term cash requirements. These credit facil-
ities are negotiated at least annually. At September 30, 1999, the
Company also had uncommitted short-term credit lines of $74.0 mil-
lion, of which $70.4 million was unused. In October 1998, the
Company began a commercial paper program under which it is
authorized to issue up to $250.0 million. The commercial paper pro-
gram is supported by a $250.0 million committed line of credit. At
September 30, 1999, the Company had $152.7 million of commer-
cial paper outstanding. During 1999, short-term debt increased
$101.9 million due largely to lower net income and cash require-
ments of $61.0 million for repayments of long-term debt and capital
expenditures of $110.4 million. Short-term debt decreased $100.9
million in 1998, due to the application of a portion of the $150.0
million proceeds from the issuance of 6.75% debentures. Short-term
debt increased $38.8 million during 1997.
Long-Term Financing Activities No long-term debt was issued in fis-
cal 1999. In July 1998, the Company issued $150.0 million of 30-year
6.75% debentures. The debentures are rated A3 by Moody’s and A- by
Standard and Poor’s. Long-term debt payments totaled $61.0 million,
$16.3 million, and $14.7 million for the years ended September 30,
1999, 1998 and 1997, respectively. The amount for 1997 excludes
repayments of $1.4 million by UCGC in the quarter ended December
31, 1996. Payments of long-term debt in 1999, 1998 and 1997 con-
sisted of annual installments under the various loan documents.
The loan agreements pursuant to which the Company’s Senior
Notes and First Mortgage Bonds have been issued contain covenants
by the Company with respect to the maintenance of certain debt-to-
equity ratios and cash flows, and restrictions on the payment of divi-
dends. See Note 4 of the accompanying notes to consolidated finan-
cial statements for more information on these covenants.
See Note 6 “Contingencies” for information regarding guaran-
tees of certain accounts payable and short-term borrowings of
Woodward Marketing, LLC (“WMLLC”).
Issuance of Common Stock The Company issued a total of
849,481, 755,882 and 400,578 shares of common stock in 1999,
1998 and 1997, respectively, under its various plans. See the
Consolidated Statements of Shareholders’ Equity and Note 7 of the
accompanying notes to consolidated financial statements for the
number of shares previously issued and available for future issuance
under each of the Company’s plans.
Future Capital Requirements The Company believes that internally
generated funds, its credit facilities, commercial paper program and
access to the public debt and equity capital markets will provide nec-
essary working capital and liquidity for capital expenditures and other
cash needs for fiscal 2000. The Company has access to $262.0 mil-
lion under its committed lines of credit and $74.0 million under its
uncommitted lines. A committed line of credit of $250.0 million is
used to support the Company’s $250.0 million commercial paper pro-
gram. In early fiscal 2000, the Company plans to seek regulatory
approvals and register a shelf offering with the SEC for the issuance
from time to time of up to $500 million in debt and equity securities
for general corporate purposes.
Pro Forma Statement of Cash Flows for 1997 Because of the pooling
of interests of Atmos, which has a September 30 fiscal year-end, with
UCGC, which had a December 31 year-end, the activities of UCGC for
the quarter ended December 31, 1996 were included in the restated
1996 consolidated statement of cash flows instead of the 1997 consoli-
dated statement of cash flows. As a result, amounts in the 1997 consoli-
dated statement of cash flows as reported are different than they would
have been, had they included a full 12 month’s activity for UCGC.
The following amounts summarize the pro forma condensed con-
solidated statement of cash flows of Atmos and UCGC for the full 12
months ended September 30, 1997.
(In thousands)
Net cash provided by operating activities $ 60,278
Net cash used in investing activities (131,286)
Net cash provided by financing activities 68,267
Decrease in cash (2,741)
Cash at beginning of year 8,757
Cash at end of year $ 6,016