Southwest Gas Corporation
) reported second-quarter 2013 pro forma earnings per share of 22
cents, beating the Zacks Consensus Estimate by 15 cents.
Quarterly earnings increased substantially from the prior-year
loss of 8 cents per share.
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The improvement in earnings was primarily driven by a rise in
revenues, higher contribution from the company's subsidiary NPL
Construction Co., a decline in interest expenses and higher
income from the company-owned life insurance.
In the quarter under review, Southwest Gas' total revenues were
$411.6 million, missing the Zacks Consensus Estimate by $11.4
However, quarterly revenues increased 0.4% year over year due to
higher sales at the company's
segment; partially offset by lower
Natural Gas Operations
Southwest Gas' total operating expenses were $382.7 million, down
3% year over year mainly due to a decline in net cost of gas
sold. The decline in operating expenses was partially offset by
an increase in operations and maintenance, depreciation and
amortization expenses, and higher construction expenses and taxes
(other than income taxes) and more than offset by an increase in
In the reported quarter, operating margin increased to 7% from
3.8% in the year-ago quarter.
Southwest Gas' net interest deductions totaled $15.3 million,
down 16.4% year over year.
As of Jun 30, 2013, Southwest Gas' cash balance was $17.7 million
versus $25.5 million as of Dec 31, 2012.
Long-term debt (less current maturities) as of Jun 30, 2013 was
$1,256.3 million versus $1,268.4 million as of Dec 31, 2012.
Southwest Gas' net cash provided by operating activities during
the first six months of 2013 was $215.2 million compared with
$261.5 million in the prior-year comparable period.
In the first six months of 2013, the company's capital
expenditure was $152 million compared with $176.4 million in the
Other Company Releases
AGL Resources Inc.
) second-quarter 2013 pro forma earnings per share of 41 cents
beat the Zacks Consensus Estimate by 14 cents.
MDU Resources Group Inc.
) announced second-quarter 2013 operating earnings of 25 cents
per share, missing the Zacks Consensus Estimate by a penny.
) reported second-quarter 2013 earnings per share of 22 cents, in
line with the Zacks Consensus Estimate.
It is evident from the last quarter that Southwest Gas is in the
process of adding new customers. In the second quarter of 2013,
the company recorded an additional $2 million in its operating
margin by virtue of adding roughly 24,000 new customers during
the last twelve months. We believe continuous growth in customer
headcounts will help the company to improve its future
Las Vegas-based Southwest Gas is engaged in purchasing,
distributing and transporting natural gas in Arizona, Nevada and
California. The company currently has a Zacks Rank #4 (Sell).