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) October 30, 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 October 30, 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, nine months, and twelve months ended September 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)

  NINE MONTHS ENDED
SEPTEMBER 30,		   TWELVE MONTHS ENDED
SEPTEMBER 30,		  
 
 
 
  2002   2001   2002   2001  
Gas operating revenues $ 834,817   $ 862,482   $ 1,165,437   $ 1,158,051  
Net cost of gas sold   449,345     508,282     618,610     639,157  
Operating margin   385,472     354,200     546,827     518,894  
Operations and maintenance expenses   196,259     187,727     261,558     248,396  
Depreciation, amortization, and general taxes   111,462     102,591     146,149     134,040  
Operating income   77,751     63,882     139,120     136,458  
Net interest deductions   58,547     59,253     78,040     78,095  
Preferred securities distribution   4,106     4,106     5,475     5,475  
Pretax utility income   15,098     523     55,605     52,888  
Utility income taxes   4,940     88     17,863     18,002  
Net utility income   10,158     435     37,742     34,886  
Merger litigation settlements, net   (9,000 )   --     (9,000 )   --  
Other income (expense), net   1,396     2,287     3,716     (53 )
Contribution to net income - gas operations   2,554     2,722     32,458     34,833  
Contribution to net income - construction services   3,596     3,459     4,667     3,870  
Net income $ 6,150   $ 6,181   $ 37,125   $ 38,703  
Earnings per share - gas operations $ 0.08   $ 0.08   $ 0.99   $ 1.09  
Earnings per share - construction services   0.11     0.11     0.14     0.12  
Basic earnings per share $ 0.19   $ 0.19   $ 1.13   $ 1.21  
Diluted earnings per share $ 0.19   $ 0.19   $ 1.12   $ 1.20  
Average outstanding common shares   32,862     32,019     32,752     31,920  
Average shares outstanding (assuming dilution)   33,132     32,290     33,028     32,191  

See Notes to Summary Financial Statements.




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



  THREE MONTHS ENDED
SEPTEMBER 30,		   NINE MONTHS ENDED
SEPTEMBER 30,		   TWELVE MONTHS ENDED
SEPTEMBER 30,
 
 
 
  2002   2001   2002   2001   2002   2001  
 
 
 
 
 
 
Gas operating revenues $ 167,187   $ 188,966   $ 834,817   $ 862,482   $ 1,165,437   $ 1,158,051  
Net cost of gas sold   70,060     99,113     449,345     508,282     618,610     639,157  
 
 
 
 
 
 
Operating margin   97,127     89,853     385,472     354,200     546,827     518,894  
Operations and maintenance expenses   65,924     63,466     196,259     187,727     261,558     248,396  
Depreciation, amortization, and general taxes   37,913     34,210     111,462     102,591     146,149     134,040  
 
 
 
 
 
 
Operating income (loss)   (6,710 )   (7,823 )   77,751     63,882     139,120     136,458  
Net interest deductions   19,379     19,725     58,547     59,253     78,040     78,095  
Preferred securities distribution   1,368     1,368     4,106     4,106     5,475     5,475  
 
 
 
 
 
 
Pretax utility income (loss)   (27,457 )   (28,916 )   15,098     523     55,605     52,888  
Utility income taxes   (11,244 )   (11,128 )   4,940     88     17,863     18,002  
 
 
 
 
 
 
Net utility income (loss)   (16,213 )   (17,788 )   10,158     435     37,742     34,886  
Merger litigation settlements, net   --     --     (9,000 )   --     (9,000 )   --  
Other income (expense), net   (1,890 )   (454 )   1,396     2,287     3,716     (53 )
 
 
 
 
 
 
Contribution to net income (loss) - gas operations   (18,103 )   (18,242 )   2,554     2,722     32,458     34,833  
Contribution to net income - construction services   1,967     1,754     3,596     3,459     4,667     3,870  
 
 
 
 
 
 
Net income (loss) $ (16,136 ) $ (16,488 ) $ 6,150   $ 6,181   $ 37,125   $ 38,703  
 
 
 
 
 
 
Earnings (loss) per share - gas operations $ (0.55 ) $ (0.56 ) $ 0.08   $ 0.08   $ 0.99   $ 1.09  
Earnings per share - construction services   0.06     0.05     0.11     0.11     0.14     0.12  
 
 
 
 
 
 
Basic earnings (loss) per share $ (0.49 ) $ (0.51 ) $ 0.19   $ 0.19   $ 1.13   $ 1.21  
 
 
 
 
 
 
Diluted earnings (loss) per share $ (0.49 ) $ (0.51 ) $ 0.19   $ 0.19   $ 1.12   $ 1.20  
 
 
 
 
 
 
Average outstanding common shares   33,065     32,231     32,862     32,019     32,752     31,920  
Average shares outstanding (assuming dilution)   --     --     33,132     32,290     33,028     32,191  


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 SEPTEMBER 30, 2002
(In thousands)
(Unaudited)


ASSETS            
UTILITY PLANT            
    Gas plant, net of accumulated depreciation $ 1,868,498        
    Construction work in progress   55,427        
 
       
        Net utility plant   1,923,925        
 
       
OTHER PROPERTY AND INVESTMENTS            
    Investment in construction services subsidiary   37,812        
    Other   43,211        
 
       
        Total other property and investments   81,023        
 
       
CURRENT AND ACCRUED ASSETS            
    Cash and cash equivalents   8,425        
    Receivables - less reserve of $1,235 for uncollectibles   53,102        
    Accrued utility revenue   29,072        
    Other   45,373        
 
       
        Total current and accrued assets   135,972        
 
       
DEFERRED DEBITS            
    Unamortized debt expense   17,789        
    Other deferred debits   24,619        
 
       
        Total deferred debits   42,408        
 
       
        TOTAL ASSETS $ 2,183,328        
 
       
CAPITALIZATION AND LIABILITIES            
CAPITALIZATION            
    Common stockholders' equity            
        Common stock equity, $1 par, 33,162 shares outstanding $ 519,307        
        Retained earnings   42,480        
 
       
            Total common stockholders' equity   561,787   33.0 %  
    Preferred securities of Southwest Gas Capital I, 9.125%   60,000   3.5    
    Long-term debt including current maturities - NOTE 2   1,080,133   63.5    
 
 
 
            Total capitalization   1,701,920   100.0 %  
 
 
 
CURRENT AND ACCRUED LIABILITIES            
    Accounts payable   45,248        
    Customer deposits   32,680        
    Taxes accrued (including income taxes)   8,076        
    Deferred purchased gas costs   28,528        
    Deferred taxes   2,581        
    Other   45,338        
 
       
            Total current and accrued liabilities   162,451        
 
       
DEFERRED CREDITS            
    Deferred investment tax credits   14,018        
    Deferred income taxes   221,564        
    Other   83,375        
 
       
            Total deferred credits   318,957        
 
       
            TOTAL CAPITALIZATION AND LIABILITIES $ 2,183,328        
 
       


See Notes to Summary Financial Statements.



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


CASH FLOWS FROM OPERATIONS:    
    Net income $ 6,150  
    Adjustments to reconcile net income to net      
       cash provided by operating activities:      
       Depreciation and amortization   84,980  
       Change in receivables and payables   58,147  
       Change in gas cost related balancing items   112,029  
       Change in accrued taxes   2,917  
       Change in deferred taxes   (1,688 ) 
       Allowance for funds used during construction   (2,115 ) 
       Other   (15,994 ) 
 
 
         Net cash provided by operating activities   244,426  
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:    
    Construction expenditures   (181,465 ) 
    Other   19,175  
 
 
         Net cash used in investing activities   (162,290 ) 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:    
    Net proceeds from stock issuances   14,774  
    Dividends paid   (20,200 ) 
    Change in notes payable   (93,000 ) 
    Retirement of long-term debt   (200,000 ) 
    Long-term debt issuances, net   197,948  
 
 
         Net cash used in financing activities   (100,478 ) 
 
 
Change in cash and cash equivalents   (18,342 ) 
Cash at beginning of period   26,767  
 
 
Cash at end of period $ 8,425  
 
 
SUPPLEMENTAL INFORMATION:    
Interest paid, net of amounts capitalized $ 57,663  
Income taxes, net of refunds $ 161  


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 $ 100,000  
        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   (9,867 )  
 
 
        TOTAL LONG-TERM DEBT $ 1,080,133  
 
 
        ESTIMATED CURRENT MATURITIES $ --  
 
 




SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
SEPTEMBER 30, 2002


FINANCIAL STATISTICS

Market value to book value per share at quarter end   131%      
Twelve months to date return on equity -- total company   6.5%  
                                                              -- gas segment   6.0%  
Common stock dividend yield at quarter end   3.7%  

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

  NINE MONTHS ENDED
SEPTEMBER 30,
  TWELVE MONTHS ENDED
SEPTEMBER 30,
(In dekatherms)   2002   2001   2002   2001  
Residential   45,667,595     45,738,064     58,923,809     62,692,076  
Small commercial   21,149,996     21,236,405     27,910,064     28,948,473  
Large commercial   9,805,353     7,205,514     13,358,149     8,710,658  
Industrial / Other   17,934,551     22,498,756     23,813,018     28,444,099  
Transportation   95,745,051     98,234,119     124,331,225     138,111,462  
Total system throughput   190,302,546     194,912,858     248,336,265     266,906,768  


HEATING DEGREE DAY COMPARISON

Actual   1,410     1,466     1,902     2,167  
Ten-year average   1,402     1,391     1,977     1,975  




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: October 30, 2002 		SOUTHWEST GAS CORPORATION



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