File No. 69-78
-----
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2
Statement by Holding Company Claiming Exemption Under
Rule U-3A-2 from the Provisions of the Public Utility
Holding Company Act of 1935
To Be Filed Annually Prior to March 1
MINNESOTA POWER & LIGHT COMPANY
-------------------------------
(Name of company)
hereby files with the Securities Exchange Commission, pursuant to Rule 2, its
statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly or
indirectly holds an interest.
State of
Name Organization Location Nature of Business
- ---- ------------ -------- ------------------
Minnesota Power & Light Minnesota Duluth, MN Electric Utility
Company
Superior Water, Light and Power Wisconsin Superior, WI Electric, Gas and Water
Company Utility
Energy Land, Incorporated Wisconsin Duluth, MN Tugboat Leasing
BNI Coal, Ltd. North Dakota Bismarck, ND Coal Mining
Minnesota Paper, Incorporated Minnesota Duluth, MN Paper Manufacturing
RendField Land Company, Inc. Minnesota Duluth, MN Land Holding
Capital Re Corporation Delaware New York, NY Financial Guaranty
Reinsurance
Rainy River Energy Corporation Minnesota Duluth, MN Steam Generation - Sold
UtilEquip, Incorporated Minnesota Duluth, MN Equipment Manufacturing
Synertec, Incorporated Minnesota Duluth, MN Venture Investor in energy
efficiency, pollution
control and energy
conservation activities
Superior Recycled Fiber Corporation Minnesota Duluth, MN Pulp production from
recycled office scrap paper
Minnesota Pulp, Incorporated Minnesota Duluth, MN Pulp production from
recycled office scrap paper
Minnesota Pulp II, Incorporated Minnesota Duluth, MN Pulp production from
recycled office scrap paper
Lakeview Financial Corporation 1 Minnesota Duluth, MN Financial Investments
Upper Minnesota Properties, Inc. Minnesota Duluth, MN Affordable Housing Project
Upper Minnesota Properties- Minnesota Duluth, MN Affordable Housing Project
Meadowlands, Inc.
Upper Minnesota Properties- Minnesota Duluth, MN Affordable Housing Project
Irving, Inc.
Topeka Group Incorporated Minnesota Duluth, MN Diversification Activities
Pelican Utility Company Florida Apopka, FL Inactive
Heater Utilities, Incorporated North Cary, NC Water and Wastewater
Carolina Treatment Utility
Heater of Seabrook, Inc. South Seabrook Water and Wastewater
Carolina Island, SC Treatment Utility
Brookwood Water Corporation North Fayetteville, Water Utility
Carolina NC
Upstate Heater Utilities, Inc. South Anderson, SC Water Utility
Carolina
Southern States Utilities, Inc. Florida Apopka, FL Water and Wastewater Treatment
Utility
Lehigh Acquisition Corporation Delaware Lehigh Acres, Subdivider, Developer
FL
Lehigh Corporation Florida Lehigh Acres, Subdivider, Developer
FL
Lehigh Building Supply, Inc. Florida Lehigh Acres, Distributive Trades
FL
News-Star Publications, Inc. Florida Lehigh Acres, Newspaper Publisher
FL
Lehigh Land and Investment, Inc. Florida Lehigh Acres, Real Estate Agent
FL
Lehigh Country Club, Inc. Florida Lehigh Acres, Recreation Services
FL
Cliffside Properties, Inc. California Lehigh Acres, Resort Operations
FL
Home at Lehigh, Inc. Florida Lehigh Acres, Construction Company
FL
Meridian Mortgage Services, Inc. Florida Lehigh Acres, Mortgage Broker
FL
Interlachen Lake Estates, Inc. Florida Lehigh Acres, Subdivider, Developer
FL
Sundowner Properties, Inc. Pennsylvania Lehigh Acres, Subdivider, Developer
FL
Atlas Construction Services New York Lehigh Acres, Real Estate Operator
Corporation FL
Orange State Property Services, Florida Lehigh Acres, Property Management
Inc. FL
LRC of Georgia, Inc. Georgia McDonough, GA Real Estate Operator
SRC of Florida, Inc. Florida Homosassa Subdivider, Developer
Springs, FL
Able Land Services, Inc. Florida Lehigh Acres, Land Management
FL
Enterprise Lehigh, Inc. Florida Lehigh Acres, Subdivider, Developer
FL
East L.A. Services Corp. Florida Lehigh Acres, Sanitation Services
FL
FiberCore, Incorporated Minnesota Duluth, MN Fiberoptics - Sold
Minnesota Paper, Inc. is a 50 percent participant in a joint venture
with Pentair Duluth Corp. in Lake Superior Paper Industries (LSPI),
a paper mill in Duluth, MN. Minnesota Paper, Inc. accounts for the
investment in LSPI by the equity method.
Minnesota Power & Light Company has a 21.4 percent ownership interest
in Capital Re Corporation (Capital Re). Capital Re is an investment
accounted for by the equity method and is not considered a
subsidiary in the consolidation of Minnesota Power & Light Company.
UtilEquip, Incorporated owns 82.5 percent of Reach All Partnership
(Reach All), an equipment manufacturer in Duluth, MN. Reach All
is accounted for by the equity method.
Substantially all of the assets of Rainy River Energy Corporation
were sold in 1991. Substantially all of the assets of FiberCore,
Incorporated were sold in 1988.
These companies each contributed less than 1 percent of consolidated
net income for the year ended December 31, 1994.
These companies each consisted of less than 1 percent of
consolidated assets at December 31, 1994.
Topeka Group Incorporated has an 80 percent ownership interest in
Lehigh Acquisition Corporation.
Lehigh Acquisition Corporation has a 60 percent stock ownership in
this corporation.
Superior Recycled Fiber Corporation owns 76 percent of
Superior Recycled Fiber Industries Joint Venture, a pulp production
plant in Duluth, MN. The remaining 24 percent is owned by LSPI
Fiber Co., a partnership. Minnesota Pulp II, Inc., a wholly owned
subsidiary of Minnesota Pulp, Incorporated, owns 50 percent of LSPI
Fiber Co.
Corporation dissolved in 1994.
Lehigh Corporation has a 98 percent stock ownership in this
corporation.
Corporation in process of dissolution.
Corporation sold in 1994.
Lehigh Corporation has a 97 percent stock ownership in this
corporation.
Lehigh Corporation has an 80 percent stock ownership in this
corporation.
Lehigh Corporation owns 100 percent of J. W. Ford, Inc., an
investment accounted for under the equity method. J. W. Ford, Inc.,
owns 50 percent of Joel/Bell Property, Inc., a land management
company in Lehigh Acres, FL.
SRC of Florida, Inc. is a 50 percent partner in Guardian Title of
Lehigh, a title company in Lehigh Acres, FL, and is a 50 percent
participant in Greenbriar Lakes Joint Venture which is involved in
land management in Lehigh Acres, FL.
Cliffside Properties, Inc., owns 50 percent of Admiral Lehigh
Resort, Ltd. Partnership, a resort operation in Lehigh Acres, FL.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission, and
distribution of electric energy for sale, or for the production, transmission,
and distribution of natural or manufactured gas, indicating the location of
principal generating plants, transmission lines, producing fields, gas
manufacturing plants, and electric and gas distribution facilities, including
all such properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which deliver or
receive electric energy or gas at the borders of such State.
Claimant - Minnesota Power & Light Company
Reference is made to Annual Report Form 10-K (File No. 1-3548), filed by
the claimant with the Commission on March 25, 1994, for the fiscal year ended
December 31, 1993, particularly pages 22, 23, 31, and 34, which is hereby
incorporated by reference in this statement.
Subsidiary - Superior Water, Light and Power Company
Same reference as under claimant.
- 4 -
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
(a) Number of kWh of electric energy sold (at retail or wholesale), and
Mcf. of natural or manufactured gas distributed at retail.
Electricity Gas
Minnesota Power & Light Company 8,382,001,627 None
Superior Water, Light and Power Company 543,264,448 21,868,847
Southern States Utilities, Inc. None 27,679
(Liquefied Propane Gas)
(b) Number of kWh of electric energy and Mcf. of natural or manufactured
gas distributed at retail outside the State in which each such company is
organized.
None
(c) Number of kWh of electric energy and Mcf. of natural or manufactured
gas sold at wholesale outside the State in which each such company is
organized, or at the State line.
Electricity Gas
Minnesota Power & Light Company 543,810,000 None
Superior Water, Light and Power Company None None
Southern States Utilities, Inc. None None
(d) Number of kWh of electric energy and Mcf. of natural or manufactured
gas purchased outside the State in which each company is organized or at the
State line.
Electricity Gas
Minnesota Power & Light Company 3,997,963,726 None
Superior Water, Light and Power Company 556,925,288 None
Southern States Utilities, Inc. None None
Purchased only liquefied propane gas and all such purchases were made from
local distributors and delivered in Florida.
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an EWG or a
foreign utility company, stating monetary amounts in United States dollars:
Not applicable to Minnesota Power & Light Company
- 5 -
EXHIBITS
Exhibit A is the consolidating balance sheet of claimant and its subsidiary
companies as of the close of such calendar year, together with a consolidating
statement of income and consolidating statement of retained earnings of the
claimant and its subsidiary companies for the last calendar year.
Exhibit A-1 is the consolidating financial statements for Topeka Group
Incorporated (Topeka Group). These statements are combined in the
consolidating financial statements of Minnesota Power & Light Company which are
filed as Exhibit A.
Exhibit A-2 is the consolidating financial statements for Lehigh Acquisition
Corporation which are combined with Topeka Group. These statements are
combined in the consolidating financial statements of Minnesota Power & Light
Company which are filed as Exhibit A.
Exhibit A-3 is the consolidating financial statements for Heater Utilities,
Incorporated. These statements are combined in the consolidated financial
statements for Topeka Group. These statements are combined in the
consolidating financial statements of Minnesota Power & Light Company which are
filed as Exhibit A.
Exhibit A-4 is the consolidating financial statements for RendField Land
Company. These statements are combined in the consolidating financial
statements of Minnesota Power & Light Company which are filed as Exhibit A.
Exhibit A-5 is the consolidating financial statements for Synertec,
Incorporated. These statements are combined in the consolidating financial
statements of Minnesota Power & Light Company which are filed as Exhibit A.
Exhibit A-6 is the consolidating financial statements for Superior Recycled
Fiber Corporation which are combined with Synertec, Incorporated. These
statements are combined in the consolidating financial statements of
Minnesota Power & Light Company which are filed as Exhibit A.
Exhibit A-7 is the consolidating financial statements for Upper Minnesota
Properties, Inc. These statements are combined in the consolidating financial
statements of Minnesota Power & Light Company which are filed as Exhibit A.
Exhibit A-8 is the consolidating financial statements for Minnesota Pulp,
Incorporated. These statements are combined in the consolidating financial
statements of Minnesota Power & Light Company which are filed as Exhibit A.
Exhibit A-9 is a list of abbreviations used in the Exhibits.
Exhibit B is the Financial Data Schedule.
Exhibit C is not applicable to Minnesota Power & Light Company.
- 6 -
The above-named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 24th day of February 1995.
MINNESOTA POWER & LIGHT COMPANY
-------------------------------------------
(Name of claimant)
By D. G. Gartzke
----------------------------------------
Senior Vice President -
Finance and Chief Financial Officer
Attest:
Philip R. Halverson
- -------------------------------------------
General Counsel and Corporate Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
David G. Gartzke Senior Vice President - Finance and Chief Financial Officer
- ---------------- ----------------------------------------------------------
(Name) (Title)
Minnesota Power & Light Company
30 West Superior Street
Duluth, Minnesota 55802
-------------------------------
(Address)
- 7 -
MINNESOTA POWER CONSOLIDATED BALANCE SHEET Exhibit A
DECEMBER 1994 Page 1 of 8
CONSOLIDATED ELIMINATIONS MPL SWL CNTG
------------ ------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 1185045,556 2,480,981 1159568,319 22,996,256 0
ELECTRIC MISCELLANEOUS -U175 21948,451 0 16628,382 5,320,069 0
GAS -U400 12017,376 775,307 0 11,242,069 0
COAL -U550,551 33067,304 0 0 0 0
COMMON -U500 0 5,168,711- 0 5,168,711 0
------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 1252078,687 1,912,423- 1176196,701 44,727,105 0
------------ ------------ ------------ ------------ ------------
WATER -U300 366840,557 1,912,423 0 15,669,606 349,258,528
WATER MISCELLANEOUS -U350 11131,230 0 0 0 11,131,230
------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 377971,787 1,912,423 0 15,669,606 360,389,758
------------ ------------ ------------ ------------ ------------
PULP -N300 78484,000 1,158,413 0 0 0
AFFORD HOUSING AND OTHE-N350 6345,677 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 84829,677 1,158,413 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL PLANT 1714880,151 1,158,413 1176196,701 60,396,711 360,389,758
ACCUMULATED DEPREC-U600,N600 582075,214- 0 452050,959- 22,921,793- 84,716,267-
CONSTRUCTION IN PRO-U710,711 27619,002 0 21736,180 129,303 5,753,519
------------ ------------ ------------ ------------ ------------
NET PLANT 1160423,939 1,158,413 745881,922 37,604,221 281,427,010
SECURITIES INVESTES-N900,905 144053,181 0 137891,460 0 82,563
EQUITY INVESTMENTS -N910 109370,524 9,166,738- 72054,167 0 0
REAL ESTATE -N400 24091,033 0 0 0 24,091,033
GOODWILL -N700 1884,796 0 0 0 1,884,796
OTHER -N500 2564,303 0 2435,486 0 128,817
INV IN SUBSIDIARIES -N200 3- 249,109,467- 249109,466 0 1-
------------ ------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 1442387,773 257,117,792- 1207372,501 37,604,221 307,614,218
CURRENT ASSETS (A)
CASH -110 20605,204 1 3845,010 214,665 6,812,528
WORKING FUNDS -150 244,143 0 233,118 11,025 0
TEMP CASH INVESTMENTS -200 1996,921 1,900,000- 1980,040 0 426,537
RESTRICTED CASH -115 4154,573 0 0 0 4,154,572
TRADING SECURITIES -250 74045,797 490,275- 74536,072 0 0
CUSTOMER ACCTS REC -321 52146,687 0 35916,239 4,631,450 8,280,729
RESERVE FOR UNCOL ACT-322 1041,479- 0 432,261- 251,091- 358,128-
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 35430,964 0 266,262 0 105,753
OTHER ACCOUNTS REC -409 26223,517 421,559- 5325,332 355,628 4,112,258
ACCTS REC FROM ASSOC -432 0 115,483,307- 54723,036 7,222 44,729,841
FUEL STOCK -500 7726,644 0 7651,459 75,185 0
PLANT & OPER SUPPLIES -610 17428,791 0 9953,787 612,758 964,582
MERCHANDISE -620 1428,315 0 1428,315 0 0
STORES EXPENSE UNDIST-630 179,171- 0 91,929- 87,242- 0
PREPAYMENTS -700 12806,664 0 9981,051 889,169 1,431,417
OTHER CUR & ACCR ASSETS-900 7809,895 0 4580,659 206,117 2,957,919
FUNDS HELD BY TRUSTEE-145 0 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 260827,465 118,295,140- 209896,190 6,664,886 73,618,008
------------ ------------ ------------ ------------ ------------
ALLOW GAIN CAP SALE -255 0 0 0 0 0
OTHER -200 99271,505 177,959- 77576,146 3,876,159 14,428,672
------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED DEBITS 99271,505 177,959- 77576,146 3,876,159 14,428,672
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 1802486,743 375,590,891- 1494844,837 48,145,266 395,660,898
============ ============ ============ ============ ============
ENLD MPAP CNRD BNI RAIN
------------ ------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0 0 0 0 0
ELECTRIC MISCELLANEOUS -U175 0 0 0 0 0
GAS -U400 0 0 0 0 0
COAL -U550,551 0 0 0 33,067,304 0
COMMON -U500 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 0 0 33,067,304 0
------------ ------------ ------------ ------------ ------------
WATER -U300 0 0 0 0 0
WATER MISCELLANEOUS -U350 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
PULP -N300 0 0 0 0 0
AFFORD HOUSING AND OTHE-N350 0 234,035 355,303 0 0
------------ ------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 0 234,035 355,303 0 0
------------ ------------ ------------ ------------ ------------
TOTAL PLANT 0 234,035 355,303 33,067,304 0
ACCUMULATED DEPREC-U600,N600 0 0 4,060- 17,598,323- 0
CONSTRUCTION IN PRO-U710,711 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
NET PLANT 0 234,035 351,243 15,468,981 0
SECURITIES INVESTES-N900,905 4,651,226 0 0 1,344,844 0
EQUITY INVESTMENTS -N910 0 35,967,095 0 0 0
REAL ESTATE -N400 0 0 0 0 0
GOODWILL -N700 0 0 0 0 0
OTHER -N500 0 0 0 0 0
INV IN SUBSIDIARIES -N200 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 4,651,226 36,201,130 351,243 16,813,825 0
CURRENT ASSETS (A)
CASH -110 5,743 2,220 65,587 778,286 13,749
WORKING FUNDS -150 0 0 0 0 0
TEMP CASH INVESTMENTS -200 0 0 0 1,490,344 0
RESTRICTED CASH -115 0 0 0 0 0
TRADING SECURITIES -250 0 0 0 0 0
CUSTOMER ACCTS REC -321 0 0 0 3,318,270 0
RESERVE FOR UNCOL ACT-322 0 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 35,058,949 0 0 0
OTHER ACCOUNTS REC -409 0 0 2,824,247 0 0
ACCTS REC FROM ASSOC -432 1,910,289 3,805,641 4,049,695 0 540,793
FUEL STOCK -500 0 0 0 0 0
PLANT & OPER SUPPLIES -610 0 0 0 2,159,665 0
MERCHANDISE -620 0 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0 0
PREPAYMENTS -700 0 6,775 0 487,298 0
OTHER CUR & ACCR ASSETS-900 0 0 0 48,466 0
FUNDS HELD BY TRUSTEE-145 0 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 1,916,032 38,873,585 6,939,529 8,282,329 554,542
------------ ------------ ------------ ------------ ------------
ALLOW GAIN CAP SALE -255 0 0 0 0 0
OTHER -200 0 0 9,848 3,441,933 0
------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED DEBITS 0 0 9,848 3,441,933 0
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 6,567,258 75,074,715 7,300,620 28,538,087 554,542
============ ============ ============ ============ ============
CNSY
------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0
ELECTRIC MISCELLANEOUS -U175 0
GAS -U400 0
COAL -U550,551 0
COMMON -U500 0
------------
TOTAL ELECTRIC OPERATIONS 0
------------
WATER -U300 0
WATER MISCELLANEOUS -U350 0
------------
TOTAL WATER OPERATIONS 0
------------
PULP -N300 77,325,587
AFFORD HOUSING AND OTHE-N350 845,836
------------
TOTAL INVEST OPERATIONS 78,171,423
------------
TOTAL PLANT 78,171,423
ACCUMULATED DEPREC-U600,N600 4,713,985-
CONSTRUCTION IN PRO-U710,711 0
------------
NET PLANT 73,457,438
SECURITIES INVESTES-N900,905 0
EQUITY INVESTMENTS -N910 0
REAL ESTATE -N400 0
GOODWILL -N700 0
OTHER -N500 0
INV IN SUBSIDIARIES -N200 0
------------
TOTAL PLANT AND ASSETS 73,457,438
CURRENT ASSETS (A)
CASH -110 8,767,934
WORKING FUNDS -150 0
TEMP CASH INVESTMENTS -200 0
RESTRICTED CASH -115 1
TRADING SECURITIES -250 0
CUSTOMER ACCTS REC -321 0
RESERVE FOR UNCOL ACT-322 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0
OTHER ACCOUNTS REC -409 14,016,242
ACCTS REC FROM ASSOC -432 4,779,010
FUEL STOCK -500 0
PLANT & OPER SUPPLIES -610 3,738,000
MERCHANDISE -620 0
STORES EXPENSE UNDIST-630 0
PREPAYMENTS -700 0
OTHER CUR & ACCR ASSETS-900 0
FUNDS HELD BY TRUSTEE-145 0
INTEREST DEP & OTHER -120 0
------------
TOTAL CURRENT ASSETS 31,301,187
------------
ALLOW GAIN CAP SALE -255 0
OTHER -200 42,521
------------
TOTAL DEFERRED DEBITS 42,521
------------
TOTAL ASSETS 104,801,146
============
MINNESOTA POWER CONSOLIDATED BALANCE SHEET Exhibit A
DECEMBER 1994 Page 2 of 8
LFC1 CNUP CNPI
------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0 0 0
ELECTRIC MISCELLANEOUS -U175 0 0 0
GAS -U400 0 0 0
COAL -U550,551 0 0 0
COMMON -U500 0 0 0
------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 0 0
------------ ------------ ------------
WATER -U300 0 0 0
WATER MISCELLANEOUS -U350 0 0 0
------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0
------------ ------------ ------------
PULP -N300 0 0 0
AFFORD HOUSING AND OTHE-N350 0 4,910,503 0
------------ ------------ ------------
TOTAL INVEST OPERATIONS 0 4,910,503 0
------------ ------------ ------------
TOTAL PLANT 0 4,910,503 0
ACCUMULATED DEPREC-U600,N600 0 69,828- 0
CONSTRUCTION IN PRO-U710,711 0 0 0
------------ ------------ ------------
NET PLANT 0 4,840,675 0
SECURITIES INVESTES-N900,905 83,088 0 0
EQUITY INVESTMENTS -N910 0 0 10,516,000
REAL ESTATE -N400 0 0 0
GOODWILL -N700 0 0 0
OTHER -N500 0 0 0
INV IN SUBSIDIARIES -N200 0 0 0
------------ ------------ ------------
TOTAL PLANT AND ASSETS 83,088 4,840,675 10,516,000
CURRENT ASSETS (A)
CASH -110 16,428 56,818 26,234
WORKING FUNDS -150 0 0 0
TEMP CASH INVESTMENTS -200 0 0 0
RESTRICTED CASH -115 0 0 0
TRADING SECURITIES -250 0 0 0
CUSTOMER ACCTS REC -321 0 0 0
RESERVE FOR UNCOL ACT-322 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0
OTHER ACCOUNTS REC -409 51 11,318 0
ACCTS REC FROM ASSOC -432 3,242 208,674 725,865
FUEL STOCK -500 0 0 0
PLANT & OPER SUPPLIES -610 0 0 0
MERCHANDISE -620 0 0 0
STORES EXPENSE UNDIST-630 0 0 0
PREPAYMENTS -700 0 10,953 0
OTHER CUR & ACCR ASSETS-900 16,734 0 0
FUNDS HELD BY TRUSTEE-145 0 0 0
INTEREST DEP & OTHER -120 0 0 0
------------ ------------ ------------
TOTAL CURRENT ASSETS 36,455 287,763 752,099
------------ ------------ ------------
ALLOW GAIN CAP SALE -255 0 0 0
OTHER -200 0 74,184 0
------------ ------------ ------------
TOTAL DEFERRED DEBITS 0 74,184 0
------------ ------------ ------------
TOTAL ASSETS 119,543 5,202,622 11,268,099
============ ============ ============
MINNESOTA POWER CONSOLIDATED BALANCE SHEET Exhibit A
DECEMBER 1994 Page 3 of 8
CONSOLIDATED ELIMINATIONS MPL SWL CNTG
------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 371178,007 130,501,325- 371178,006 5,800,000 62,765,345
LOAN TO LEV ESOP -210 76726,415- 0 76726,415- 0 0
UNREAL GAINS INVEST -215 5409,660- 0 5409,660- 0 0
RETAINED EARNINGS -400 272646,014 117,925,989- 272646,007 11,288,941 85,583,056
PREFERRED STOCK (P)
5% -100 11491,693 0 11491,693 0 0
$7.36 SERIES -210 17054,910 0 17054,910 0 0
$8.90 SERIES 220 0 0 0 0 0
$6.70 SERIES -250 10000,000 0 10000,000 0 0
$9.125 SERIES -320 0 0 0 0 0
$7.125 SERIES -330 10000,000 0 10000,000 0 0
LONG-TERM DEBT (D)
BONDS -100 493207,214 1,150,000- 407705,000 5,800,000 80,852,214
BOND FUNDS HELD BY TRUST 0 0 0 0 0
OTHER LONG-TERM DEBT -700 109535,638 649,709- 13966,059 7,350,000 36,502,600
UNAMORT PREM ON DEBT -850 0 0 0 0 0
UNAMORT DISC ON DEBT -860 1426,088- 0 1426,088- 0 0
------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 1211551,313 250,227,023- 1030479,512 30,238,941 265,703,215
------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 54098,180 1,900,000- 53443,000 1,900,000 655,180
CURRENT MATURITIES -200 12813,737 1,799,708 0 0 2,026,602
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 36792,329 615,935- 23108,113 936,983 4,697,239
ACCOUNTS PAY TO ASSOC-320 0 115,957,163- 60446,864 2,456,107 3,830,256
ACCRUED TAXES
FEDERAL INCOME TAXES -401 4128,584- 364,109 4400,812- 33,835- 278,521-
STATE INCOME TAXES -450 1182,446- 112,152 677,652 1,119- 119,807-
OTHER ACCRUED TAXES -500 41133,253 0 37043,036 59,957 3,516,728
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 13355,079 0 9767,745 285,408 2,985,492
DIVIDENDS DECLARED -620 800,123 0 800,123 0 0
MATURED INTEREST -630 1,709 0 1,709 0 0
OTHER
CUSTOMER DEPOSITS -910 2717,609 0 189,803 12,436 2,515,370
TAX COLLECTIONS PAY -920 755,979 0 579,454 176,525 0
MISC CURR & ACCR LIAB-930 20325,279 1- 15213,606 1,191,296 2,680,972
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 177482,247 116,197,130- 196870,293 6,983,758 22,509,511
------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 87035,552 0 0 1,000,016 86,035,535
ACCUM DEF INC TXS(H254)-100 156458,772 0 132907,500 4,595,451 1,630,015
ACC DEF INV TAX CREDITS-200 35982,161 0 33681,478 1,063,797 1,236,886
OTHER
MINORITY INTEREST -900 14394,812 9,166,738- 0 0 5,226,216
CUST ADV FOR CONSTR -910 2387,987 0 651,874 1,736,113 0
OTHER DEF CREDITS -920 112186,668 0 95246,949 2,527,190 13,319,520
LOST TIME RESERVE -930 5007,231 0 5007,231 0 0
------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 413453,183 9,166,738- 267495,032 10,922,567 107,448,172
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 1802486,743 375,590,891- 1494844,837 48,145,266 395,660,898
============ ============ ============ ============ ============
ENLD MPAP CNRD BNI RAIN
------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 2,500 14,501,000 4,487,500 2,027,426 500,000
LOAN TO LEV ESOP -210 0 0 0 0 0
UNREAL GAINS INVEST -215 0 0 0 0 0
RETAINED EARNINGS -400 2,562,340 16,084,823 7,464,963- 10,820,908 1,111,098-
PREFERRED STOCK (P)
5% -100 0 0 0 0 0
$7.36 SERIES -210 0 0 0 0 0
$8.90 SERIES 220 0 0 0 0 0
$6.70 SERIES -250 0 0 0 0 0
$9.125 SERIES -320 0 0 0 0 0
$7.125 SERIES -330 0 0 0 0 0
LONG-TERM DEBT (D)
BONDS -100 0 0 0 0 0
BOND FUNDS HELD BY TRUST 0 0 0 0 0
OTHER LONG-TERM DEBT -700 0 0 0 10,257,548 0
UNAMORT PREM ON DEBT -850 0 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 2,564,840 30,585,823 2,977,463- 23,105,882 611,098-
------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 0 0 0 0
CURRENT MATURITIES -200 0 0 3,551,180 1,113,035 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 0 0 50,890 676,866 0
ACCOUNTS PAY TO ASSOC-320 194,536 35,835,012 7,692,734 250,173 1,131,630
ACCRUED TAXES
FEDERAL INCOME TAXES -401 18,190- 82,460 59,931 169,357 47,340
STATE INCOME TAXES -450 192,180 851,016- 265,750- 16,038 13,330-
OTHER ACCRUED TAXES -500 0 1,233 7,731 545,698 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0 0 0 249,473 0
DIVIDENDS DECLARED -620 0 0 0 0 0
MATURED INTEREST -630 0 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 0 0 0 0 0
TAX COLLECTIONS PAY -920 0 0 0 0 0
MISC CURR & ACCR LIAB-930 0 0 500,000 739,405 0
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 368,526 35,067,689 11,596,716 3,760,045 1,165,640
------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 0 0 0 0
ACCUM DEF INC TXS(H254)-100 3,633,892 9,404,271 1,318,633- 596,084 0
ACC DEF INV TAX CREDITS-200 0 0 0 0 0
OTHER
MINORITY INTEREST -900 0 0 0 0 0
CUST ADV FOR CONSTR -910 0 0 0 0 0
OTHER DEF CREDITS -920 0 16,932 0 1,076,076 0
LOST TIME RESERVE -930 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 3,633,892 9,421,203 1,318,633- 1,672,160 0
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 6,567,258 75,074,715 7,300,620 28,538,087 554,542
============ ============ ============ ============ ============
CNSY
------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 28,231,266
LOAN TO LEV ESOP -210 0
UNREAL GAINS INVEST -215 0
RETAINED EARNINGS -400 419,088-
PREFERRED STOCK (P)
5% -100 0
$7.36 SERIES -210 0
$8.90 SERIES 220 0
$6.70 SERIES -250 0
$9.125 SERIES -320 0
$7.125 SERIES -330 0
LONG-TERM DEBT (D)
BONDS -100 0
BOND FUNDS HELD BY TRUST 0
OTHER LONG-TERM DEBT -700 39,343,244
UNAMORT PREM ON DEBT -850 0
UNAMORT DISC ON DEBT -860 0
------------
TOTAL CAPITALIZATION 67,155,422
------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0
CURRENT MATURITIES -200 4,026,348
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 7,899,921
ACCOUNTS PAY TO ASSOC-320 3,555,608
ACCRUED TAXES
FEDERAL INCOME TAXES -401 161,614-
STATE INCOME TAXES -450 814,662-
OTHER ACCRUED TAXES -500 41,260-
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0
DIVIDENDS DECLARED -620 0
MATURED INTEREST -630 0
OTHER
CUSTOMER DEPOSITS -910 0
TAX COLLECTIONS PAY -920 0
MISC CURR & ACCR LIAB-930 0
------------
TOTAL CURRENT LIABILITIE 14,464,341
------------
CONTR IN AID OF CONST F-300 0
ACCUM DEF INC TXS(H254)-100 4,847,907
ACC DEF INV TAX CREDITS-200 0
OTHER
MINORITY INTEREST -900 18,333,476
CUST ADV FOR CONSTR -910 0
OTHER DEF CREDITS -920 0
LOST TIME RESERVE -930 0
------------
TOTAL DEFERRED CREDITS 23,181,383
------------
------------
TOTAL LIAB & CAPITALIZATION 104,801,146
============
MINNESOTA POWER CONSOLIDATED BALANCE SHEET Exhibit A
DECEMBER 1994 Page 4 of 8
LFC1 CNUP CNPI
------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 10,000 2,124,189 10,052,099
LOAN TO LEV ESOP -210 0 0 0
UNREAL GAINS INVEST -215 0 0 0
RETAINED EARNINGS -400 2,498- 499,330 84,244
PREFERRED STOCK (P)
5% -100 0 0 0
$7.36 SERIES -210 0 0 0
$8.90 SERIES 220 0 0 0
$6.70 SERIES -250 0 0 0
$9.125 SERIES -320 0 0 0
$7.125 SERIES -330 0 0 0
LONG-TERM DEBT (D)
BONDS -100 0 0 0
BOND FUNDS HELD BY TRUST 0 0 0
OTHER LONG-TERM DEBT -700 0 2,765,896 0
UNAMORT PREM ON DEBT -850 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0
------------ ------------ ------------
TOTAL CAPITALIZATION 7,502 5,389,415 10,136,343
------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 0 0
CURRENT MATURITIES -200 0 296,864 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 1 10,370 27,886
ACCOUNTS PAY TO ASSOC-320 111,620 76,518 376,104
ACCRUED TAXES
FEDERAL INCOME TAXES -401 8 10,760- 51,943
STATE INCOME TAXES -450 412 22,800- 92,396-
OTHER ACCRUED TAXES -500 0 130 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0 66,961 0
DIVIDENDS DECLARED -620 0 0 0
MATURED INTEREST -630 0 0 0
OTHER
CUSTOMER DEPOSITS -910 0 0 0
TAX COLLECTIONS PAY -920 0 0 0
MISC CURR & ACCR LIAB-930 0 0 0
------------ ------------ ------------
TOTAL CURRENT LIABILITIE 112,041 417,283 363,537
------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 0 0
ACCUM DEF INC TXS(H254)-100 0 605,934- 768,219
ACC DEF INV TAX CREDITS-200 0 0 0
OTHER
MINORITY INTEREST -900 0 1,858 0
CUST ADV FOR CONSTR -910 0 0 0
OTHER DEF CREDITS -920 0 0 0
LOST TIME RESERVE -930 0 0 0
------------ ------------ ------------
TOTAL DEFERRED CREDITS 0 604,076- 768,219
------------ ------------ ------------
------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 119,543 5,202,622 11,268,099
============ ============ ============
MINNESOTA POWER CONSOLIDATED STATEMENT OF INCOME Exhibit A
YEAR TO DATE AS OF DECEMBER 1994 Page 5 of 8
CONSOLIDATED ELIMINATIONS MPL SWL CNTG
------------ ------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 407,491,808 20,167,115- 402,950,211 24,708,712 0
- ELECT MISC T513 9,231,438 12,588,487- 21,765,538 77,298- 0
- GAS R400 9,455,807 0 0 9,455,807 0
- COAL R500,R501 26,999,023 0 0 0 0
- AFDC T101 3,934 0 3,934 0 0
------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 453,182,010 32,755,602- 424,719,683 34,087,221 0
- WATER R300 68,003,295 0 0 4,487,648 63,515,647
- WATER MISC R380 23,000,251 0 0 0 23,000,251
- AFDC T102 220,647 0 0 0 220,647
------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 91,224,193 0 0 4,487,648 86,736,545
- INVESTMENT T300 8,258,217 2,135,102- 6,876,214 0 676,911
- PULP T520 52,856,915 0 0 0
- REAL ESTATE T711 31,653,105 0 0 0 31,653,105
- OTHER T530 607,513 0 0 0 151,229
- EQUITY IN SUBS T200 0 26,354,344- 26,354,343 0 0
------------ ------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 93,375,750 28,489,446- 33,230,557 0 32,481,245
------------ ------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 637,781,953 61,245,048- 457,950,240 38,574,869 119,217,790
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 69,905,952 0 69,905,952 0 0
PURCHASED POWER E200 87,781,139 17,318,331- 87,781,138 17,318,332 0
OPERATION E305,T512,350 145,548,877 15,379,888- 61,400,880 9,680,180 28,280,018
MAINTENANCE E405 27,471,642 0 20,544,805 1,069,945 4,115,836
DEPRECIATION E500,T590 50,236,181 40,000 33,634,777 1,861,570 8,812,887
PROPERTY TAXES E610,T570 38,373,226 0 33,328,176 793,377 3,905,078
OTHER TAXES E620,T571 8,974,307 0 4,376,041 456,672 3,558,598
ADMIN AND GENERAL E310 77,888,159 0 46,111,609 3,654,668 24,634,513
MINORITY INTEREST T511 2,033,096 508,000 0 0 2,541,123
INTEREST EXPENSE
INTEREST ON LTD I100 44,452,174 0 27,980,132 999,011 10,965,981
OTHER INTEREST EXP I340 6,762,414 2,192,485- 5,140,432 264,698 955,030
AMORT OF DEBT EXP I300 1,479,030 0 1,429,184 49,846 0
AFDC-DEBT I200 623,236- 0 389,473- 0 233,763-
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 560,282,961 34,342,704- 391,243,653 36,148,299 87,535,301
------------ ------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 5,299,242 508,000 8,138,142 0 0
------------ ------------ ------------ ------------ ------------
OPERATING INCOME 82,798,234 26,394,344- 74,844,729 2,426,570 31,682,489
INCOME TAX EXP E700,T400,6,7 21,465,250- 16,000 13,511,750- 866,921- 8,675,703-
------------ ------------ ------------ ------------ ------------
INCOME BEFORE EXTRAORDINARY 61,332,984 26,378,344- 61,332,979 1,559,649 23,006,786
EXTRAORDINARY ITEM X100 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
NET INCOME 61,332,984 26,378,344- 61,332,979 1,559,649 23,006,786
PREFERRED DIVIDENDS V100 3,200,467- 0 3,200,467- 0 0
TAX BENEFITS OF ESOP DIV P500 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMMON 58,132,517 26,378,344- 58,132,512 1,559,649 23,006,786
COMMOND DIVIDENDS V200 56,663,380- 0 56,663,380- 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0 0
BEGIN RETAINED EARNINGS C425 271,176,872 0 271,176,872 0 0
------------ ------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 272,646,009 26,378,344- 272,646,004 1,559,649 23,006,786
============ ============ ============ ============ ============
ENLD MPAP CNRD BNI RAIN
------------ ------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 0 0 0 0 0
- ELECT MISC T513 0 0 0 0 131,685
- GAS R400 0 0 0 0 0
- COAL R500,R501 0 0 0 26,999,023 0
- AFDC T101 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 0 0 26,999,023 131,685
- WATER R300 0 0 0 0 0
- WATER MISC R380 0 0 0 0 0
- AFDC T102 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0 0
- INVESTMENT T300 131,969 1,793,842 194,232 116,002 0
- PULP T520 0 0 0 0 0
- REAL ESTATE T711 0 0 0 0 0
- OTHER T530 0 0 52,066- 0 0
- EQUITY IN SUBS T200 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 131,969 1,793,842 142,166 116,002 0
------------ ------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 131,969 1,793,842 142,166 27,115,025 131,685
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 0 0 0 0 0
PURCHASED POWER E200 0 0 0 0 0
OPERATION E305,T512,350 0 0 0 16,815,679 0
MAINTENANCE E405 0 0 0 1,741,056 0
DEPRECIATION E500,T590 0 0 840 1,351,533 0
PROPERTY TAXES E610,T570 0 1,118 6,419 24,417 0
OTHER TAXES E620,T571 0 0 0 582,996 0
ADMIN AND GENERAL E310 7,736 311,714 237,816 1,274,331 267,738
MINORITY INTEREST T511 0 0 0 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 0 0 0 1,031,745 0
OTHER INTEREST EXP I340 0 1,955,223 630,680 3,338 10
AMORT OF DEBT EXP I300 0 0 0 0 0
AFDC-DEBT I200 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 7,736 2,268,055 875,755 22,825,095 267,748
------------ ------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 0 1,527,500 5,166,109- 0 0
------------ ------------ ------------ ------------ ------------
OPERATING INCOME 124,233 1,053,287 5,899,698- 4,289,930 136,063-
INCOME TAX EXP E700,T400,6,7 15,787 91,469- 2,492,113 1,153,680- 68,418
------------ ------------ ------------ ------------ ------------
INCOME BEFORE EXTRAORDINARY 140,020 961,818 3,407,585- 3,136,250 67,645-
EXTRAORDINARY ITEM X100 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
NET INCOME 140,020 961,818 3,407,585- 3,136,250 67,645-
PREFERRED DIVIDENDS V100 0 0 0 0 0
TAX BENEFITS OF ESOP DIV P500 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMMON 140,020 961,818 3,407,585- 3,136,250 67,645-
COMMOND DIVIDENDS V200 0 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 140,020 961,818 3,407,585- 3,136,250 67,645-
============ ============ ============ ============ ============
CNSY
------------
REVENUE - ELECTRIC R100 0
- ELECT MISC T513 0
- GAS R400 0
- COAL R500,R501 0
- AFDC T101 0
------------
TOTAL ELECTRIC OPERATIONS 0
- WATER R300 0
- WATER MISC R380 0
- AFDC T102 0
------------
TOTAL WATER OPERATIONS 0
- INVESTMENT T300 588,265
- PULP T520 52,856,915
- REAL ESTATE T711 0
- OTHER T530 403,576
- EQUITY IN SUBS T200 0
------------
TOTAL INV AND OTHER INCOME 53,848,756
------------
TOTAL OPER REVENUE AND INCOME 53,848,756
------------
OPERATING EXPENSES
FUEL E100 0
PURCHASED POWER E200 0
OPERATION E305,T512,350 44,690,000
MAINTENANCE E405 0
DEPRECIATION E500,T590 4,459,984
PROPERTY TAXES E610,T570 312,000
OTHER TAXES E620,T571 0
ADMIN AND GENERAL E310 1,313,820
MINORITY INTEREST T511 1,016,000-
INTEREST EXPENSE
INTEREST ON LTD I100 3,364,777
OTHER INTEREST EXP I340 8
AMORT OF DEBT EXP I300 0
AFDC-DEBT I200 0
------------
TOTAL OPERATING EXPENSES 53,124,589
------------
INCOME FROM EQUITY INVESTMENT 0
------------
OPERATING INCOME 724,167
INCOME TAX EXP E700,T400,6,7 348,663-
------------
INCOME BEFORE EXTRAORDINARY 375,504
EXTRAORDINARY ITEM X100 0
------------
NET INCOME 375,504
PREFERRED DIVIDENDS V100 0
TAX BENEFITS OF ESOP DIV P500 0
------------
EARNINGS AVAILABLE FOR COMMMON 375,504
COMMOND DIVIDENDS V200 0
ADJ TO RETAINED EARNINGS V300 0
BEGIN RETAINED EARNINGS C425 0
------------
ENDING RETAINED EARNINGS 375,504
============
MINNESOTA POWER CONSOLIDATED STATEMENT OF INCOME Exhibit A
YEAR TO DATE AS OF DECEMBER 1994 Page 6 of 8
LFC1 CNUP CNPI
------------ ------------ ------------
REVENUE - ELECTRIC R100 0 0 0
- ELECT MISC T513 0 0 0
- GAS R400 0 0 0
- COAL R500,R501 0 0 0
- AFDC T101 0 0 0
------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 0 0
- WATER R300 0 0 0
- WATER MISC R380 0 0 0
- AFDC T102 0 0 0
------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0
- INVESTMENT T300 9,939 5,944 0
- PULP T520 0 0 0
- REAL ESTATE T711 0 0 0
- OTHER T530 0 104,774 0
- EQUITY IN SUBS T200 0 0 1
------------ ------------ ------------
TOTAL INV AND OTHER INCOME 9,939 110,718 1
------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 9,939 110,718 1
------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 0 0 0
PURCHASED POWER E200 0 0 0
OPERATION E305,T512,350 0 62,010 0
MAINTENANCE E405 0 0 0
DEPRECIATION E500,T590 0 74,589 0
PROPERTY TAXES E610,T570 0 2,641 0
OTHER TAXES E620,T571 0 0 0
ADMIN AND GENERAL E310 0 63,231 10,981
MINORITY INTEREST T511 0 27- 0
INTEREST EXPENSE
INTEREST ON LTD I100 0 110,529 0
OTHER INTEREST EXP I340 5,480 0 0
AMORT OF DEBT EXP I300 0 0 0
AFDC-DEBT I200 0 0 0
------------ ------------ ------------
TOTAL OPERATING EXPENSES 5,480 312,973 10,981
------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 0 0 291,709
------------ ------------ ------------
OPERATING INCOME 4,459 202,255- 280,729
INCOME TAX EXP E700,T400,6,7 1,703- 702,207 109,885-
------------ ------------ ------------
INCOME BEFORE EXTRAORDINARY 2,756 499,952 170,844
EXTRAORDINARY ITEM X100 0 0 0
------------ ------------ ------------
NET INCOME 2,756 499,952 170,844
PREFERRED DIVIDENDS V100 0 0 0
TAX BENEFITS OF ESOP DIV P500 0 0 0
------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMMON 2,756 499,952 170,844
COMMOND DIVIDENDS V200 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0
------------ ------------ ------------
ENDING RETAINED EARNINGS 2,756 499,952 170,844
============ ============ ============
MINNESOTA POWER & LIGHT COMPANY AND SUBSIDIARIES Exhibit A
CONSOLIDATING STATEMENT OF RETAINED EARNINGS Page 7 of 8
FOR THE YEAR ENDED DECEMBER 31, 1994
Superior
Eliminations Minnesota Water, Light
Consolidated and Power & Light and Power
Total Adjustments Company Company
----- ----------- ------- -------
RETAINED EARNINGS
Balance at beginning of period $271,176,874 $(107,347,646) $271,176,874 $11,329,292
Add
Net Income (Loss)
Statement of Income 61,332,979 (26,378,349) 61,332,979 1,559,649
------------ ------------- ------------ -----------
Total 332,509,853 (133,725,995) 332,509,853 12,888,941
------------ ------------- ------------ -----------
Deduct
Dividends - Cash
5% Preferred Stock
($5.00 per share) 566,770 566,770
Serial Preferred Stock
($7.36 per share) 1,251,200 1,251,200
Serial (A) Preferred Stock
($6.70 per share) 669,996 669,996
Serial (A) Preferred Stock
($7.125 per share) 712,500 712,500
Common Stock 56,663,380 (15,800,000) 56,663,380 1,600,000
------------ ------------- ------------ -----------
Total Deduction from Earnings 59,863,846 (15,800,000) 59,863,846 1,600,000
------------ ------------- ------------ -----------
Balance at close of period $272,646,007 $(117,925,995) $272,646,007 $11,288,941
------------ ------------- ------------ -----------
Consolidated Minnesota
Topeka Energy Land, Paper, Consolidated
Group Incorporated Incorporated RendField
----- ------------ ------------ ---------
RETAINED EARNINGS
Balance at beginning of period $74,576,270 $2,422,320 $15,123,005 $(4,057,378)
Add
Net Income (Loss)
Statement of Income 23,006,786 140,020 961,818 (3,407,585)
----------- ---------- ----------- -----------
Total 97,583,056 2,562,340 16,084,823 (7,464,963)
----------- ---------- ----------- -----------
Deduct
Dividends - Cash
5% Preferred Stock
($5.00 per share)
Serial Preferred Stock
($7.36 per share)
Serial (A) Preferred Stock
($6.70 per share)
Serial (A) Preferred Stock
($7.125 per share)
Common Stock 12,000,000
----------- ---------- ----------- -----------
Total Deduction from Earnings 12,000,000
----------- ---------- ----------- -----------
Balance at close of period $85,583,056 $2,562,340 $16,084,823 $(7,464,963)
----------- ---------- ----------- -----------
BNI Rainy River Consolidated
Coal, Ltd. Energy, Inc. Synertec
---------- ------------ --------
RETAINED EARNINGS
Balance at beginning of period $9,884,658 $(1,043,453) $(794,592)
Add
Net Income (Loss)
Statement of Income 3,136,250 (67,645) 375,504
----------- ----------- ---------
Total 13,020,908 (1,111,098) (419,088)
----------- ----------- ---------
Deduct
Dividends - Cash
5% Preferred Stock
($5.00 per share)
Serial Preferred Stock
($7.36 per share)
Serial (A) Preferred Stock
($6.70 per share)
Serial (A) Preferred Stock
($7.125 per share)
Common Stock 2,200,000
----------- ----------- ---------
Total Deduction from Earnings 2,200,000
----------- ----------- ---------
Balance at close of period $10,820,908 $(1,111,098) $(419,088)
----------- ----------- ---------
Common dividends from Superior Water, Light and Power Company, Topeka Group and BNI Coal of $1,600,000,
$12,000,000 and $2,200,000, respectively.
MINNESOTA POWER & LIGHT COMPANY AND SUBSIDIARIES Exhibit A
CONSOLIDATING STATEMENT OF RETAINED EARNINGS Page 8 of 8
FOR THE YEAR ENDED DECEMBER 31, 1994
Consolidated
Lakeview Upper Consolidated
Financial Minnesota Minnesota
Corporation Properties Pulp
----------- ---------- ----
RETAINED EARNINGS
Balance at beginning of period $(5,254) $ (622) $ (86,600)
Add
Net Income (Loss)
Statement of Income 2,756 499,952 170,844
------- -------- ---------
Total (2,498) 499,330 84,244
------- -------- ---------
Deduct
Dividends - Cash
5% Preferred Stock
($5.00 per share)
Serial Preferred Stock
($7.36 per share)
Serial (A) Preferred Stock
($6.70 per share)
Serial (A) Preferred Stock
($7.125 per share)
Common Stock
------- -------- ---------
Total Deduction from Earnings
------- -------- ---------
Balance at close of period $(2,498) $499,330 $ 84,244
------- -------- ---------
TOPEKA GROUP CONSOLIDATED BALANCE SHEET Exhibit A-1
DECEMBER 1994 Page 1 of 3
CONSOLIDATED ELIMINATIONS TOPEKA GROUP ELAG FIBERCORE
------------ ------------ ------------ ------------ ------------
UTILITY PLANT (U)
-WATER -300 349,258,528 165,686- 0 0 0
-GAS -400 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL GROSS PLANT 349,258,528 165,686- 0 0 0
ACCUM DEPRECIATION -600 83,361,576- 0 0 0 0
CONSTR WORK IN PROGRESS-710 5,753,519 0 0 0 0
------------ ------------ ------------ ------------ ------------
NET UTILITY PLANT 271,650,471 165,686- 0 0 0
------------ ------------ ------------ ------------ ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 11,132,061 0 830 1,582,192 0
ACCUM-DEPR NONUTILITY-600 1,354,691- 0 830- 1,353,861- 0
GOODWILL -700 1,884,796 0 1,884,796 0 0
OTHER -950 24,219,020 0 127,987 0 0
INVESTMENTS -900 82,563 0 0 0 0
INVEST IN ASSOC CO. -200 1- 108,264,449- 108,264,448 0 0
------------ ------------ ------------ ------------ ------------
TOTAL NONUTIL PROP & INV 35,963,748 108,264,449- 110,277,231 228,331 0
------------ ------------ ------------ ------------ ------------
CURRENT ASSETS (A)
CASH
CASH -110 6,812,528 0 515,893 239,050 1,384
WORKING FUNDS -150 0 0 0 0 0
TEMP CASH INVESTMENTS -200 426,537 0 0 0 0
RESTRICTED CASH -115 4,154,572 0 0 0 0
TRADE ACCOUNTS RECEIVABLE
CUSTOMER ACCOUNTS REC-321 8,280,729 0 0 0 0
ACCUM PROV UNCOL ACT -322 358,128- 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 105,753 0 97,500 0 0
OTHER ACCTS REC -409 4,112,258 0 0 207,815 0
ACCTS REC FROM ASSOC -432 44,729,842 45,456,829- 79,144,012 307,161 557
FUEL STOCK -500 0 0 0 0 0
MATERIALS & SUPPLIES
PLANT & OPER SUPPLIES-610 964,582 0 0 0 0
MERCHANDISE -620 0 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0 0
PREPAYMENTS -700 1,431,417 0 28,674 0 0
OTHER
OTH CUR & ACCR ASSETS-900 2,957,919 0 0 78,184 0
FUNDS HELD BY TRUSTEE-145 0 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 73,618,009 45,456,829- 79,786,079 832,210 1,941
------------ ------------ ------------ ------------ ------------
ACCUM DEF INC TAXES H-254 19,113,678 0 208,606 0 0
OTHER -200 14,428,672 0 207,103 0 0
------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED DEBITS 33,542,350 0 415,709 0 0
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 414,774,578 153,886,964- 190,479,019 1,060,541 1,941
============ ============ ============ ============ ============
LAC HEATER SSU
------------ ------------ ------------
UTILITY PLANT (U)
-WATER -300 0 42,965,015 306,459,198
-GAS -400 0 0 0
------------ ------------ ------------
TOTAL GROSS PLANT 0 42,965,015 306,459,198
ACCUM DEPRECIATION -600 0 12,478,612- 70,882,963-
CONSTR WORK IN PROGRESS-710 0 0 5,753,519
------------ ------------ ------------
NET UTILITY PLANT 0 30,486,403 241,329,754
------------ ------------ ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 0 33,295 9,515,744
ACCUM-DEPR NONUTILITY-600 0 0 0
GOODWILL -700 0 0 0
OTHER -950 24,091,033 0 0
INVESTMENTS -900 0 82,563 0
INVEST IN ASSOC CO. -200 0 0 0
------------ ------------ ------------
TOTAL NONUTIL PROP & INV 24,091,033 115,858 9,515,744
------------ ------------ ------------
CURRENT ASSETS (A)
CASH
CASH -110 4,262,457 486,325 1,307,421
WORKING FUNDS -150 0 0 0
TEMP CASH INVESTMENTS -200 0 426,537 0
RESTRICTED CASH -115 0 0 4,154,572
TRADE ACCOUNTS RECEIVABLE
CUSTOMER ACCOUNTS REC-321 0 947,235 7,333,494
ACCUM PROV UNCOL ACT -322 0 31,342- 326,785-
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 8,253 0
OTHER ACCTS REC -409 3,463,783 197,474 243,186
ACCTS REC FROM ASSOC -432 1,351,230 536,278 8,847,433
FUEL STOCK -500 0 0 0
MATERIALS & SUPPLIES
PLANT & OPER SUPPLIES-610 235,677 377,332 351,572
MERCHANDISE -620 0 0 0
STORES EXPENSE UNDIST-630 0 0 0
PREPAYMENTS -700 0 1,322,391 80,352
OTHER
OTH CUR & ACCR ASSETS-900 2,495,881 7,893 375,961
FUNDS HELD BY TRUSTEE-145 0 0 0
INTEREST DEP & OTHER -120 0 0 0
------------ ------------ ------------
TOTAL CURRENT ASSETS 11,809,028 4,278,376 22,367,206
------------ ------------ ------------
ACCUM DEF INC TAXES H-254 0 0 18,905,072
OTHER -200 0 0 14,221,569
------------ ------------ ------------
TOTAL DEFERRED DEBITS 0 0 33,126,641
------------ ------------ ------------
TOTAL ASSETS 35,900,061 34,880,637 306,339,345
============ ============ ============
TOPEKA GROUP CONSOLIDATED BALANCE SHEET Exhibit A-1
DECEMBER 1994 Page 2 of 3
CONSOLIDATED ELIMINATIONS TOPEKA GROUP ELAG FIBERCORE
------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 62,765,345 90,013,993- 62,765,345 263,928 5,125,000
CAPITAL STOCK EXPENSE-300 0 0 0 0 0
RETAINED EARNINGS -400 85,583,056 23,476,672- 85,583,055 567,816 4,976,047-
PREFERRED STOCK (P)
5% SERIES -100 0 0 0 0 0
$7.36 SERIES -210 0 0 0 0 0
$8.90 SERIES -220 0 0 0 0 0
$8.30 SERIES -310 0 0 0 0 0
$9.125 SERIES -320 0 0 0 0 0
LONG-TERM DEBT (D)
BONDS 80,852,214 0 0 0 0
BONDS HELD BY TRUSTEE 0 0 0 0 0
OTHER LONG-TERM DEBT -700 36,502,600 29,896,250- 30,000,000 0 0
UNAMORT PREM ON DEBT -850 0 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 265,703,215 143,386,915- 178,348,400 831,744 148,953
------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 655,180 0 0 31,826 0
CURRENT MATURITIES -200 2,026,602 0 0 0 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 4,697,241 0 3 93,452 0
ACCTS PAY TO ASSOC CO-320 3,830,256 15,560,579- 10,143,604 75,612 210,638
ACCRUED TAXES
FEDERAL INCOME TAXES -401 278,521- 0 15,732 3,968- 341,079-
STATE INCOME TAXES -450 119,807- 0 96,946- 0 16,571-
OTHER ACCRUED TAXES -500 3,516,728 0 255 0 0
ACCRD DIVIDENDS & INTEREST
INTEREST ACCRUED -610 2,985,492 0 1,174,505 0 0
DIVIDENDS DECLARED -620 0 0 0 0 0
MATURED INTEREST -630 0 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 2,515,370 0 0 0 0
TAX COLLECTIONS PAY -920 0 0 0 0 0
MISC CURR & ACCR LIAB-930 2,680,972 0 419,351 41,965 0
------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIES 22,509,513 15,560,579- 11,656,504 238,887 147,012-
------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 86,035,535 0 0 0 0
ACCUM DEF INCOME TAXES -100 20,743,693 0 387,549 10,090- 0
ACC DEF INV TAX CREDITS-200 1,236,886 0 0 0 0
OTHER
MINORITY INTEREST -900 5,226,216 5,226,216 0 0 0
CUST ADV FOR CONSTR -910 0 0 0 0 0
OTHER DEF CREDITS -920 13,319,520 165,686- 86,566 0 0
LOST TIME RESERVE -930 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 126,561,850 5,060,530 474,115 10,090- 0
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITY & CAPITAL 414,774,578 153,886,964- 190,479,019 1,060,541 1,941
============ ============ ============ ============ ============
LAC HEATER SSU
------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 5,952,410 5,840,250 72,832,405
CAPITAL STOCK EXPENSE-300 0 0 0
RETAINED EARNINGS -400 20,178,664 2,361,345 5,344,894
PREFERRED STOCK (P)
5% SERIES -100 0 0 0
$7.36 SERIES -210 0 0 0
$8.90 SERIES -220 0 0 0
$8.30 SERIES -310 0 0 0
$9.125 SERIES -320 0 0 0
LONG-TERM DEBT (D)
BONDS 0 0 80,852,214
BONDS HELD BY TRUSTEE 0 0 0
OTHER LONG-TERM DEBT -700 0 12,202,600 24,196,250
UNAMORT PREM ON DEBT -850 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0
------------ ------------ ------------
TOTAL CAPITALIZATION 26,131,074 20,404,195 183,225,763
------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 623,354 0 0
CURRENT MATURITIES -200 0 15,457 2,011,144
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 394,744 300,616 3,908,429
ACCTS PAY TO ASSOC CO-320 1,242,825 411,240 7,306,916
ACCRUED TAXES
FEDERAL INCOME TAXES -401 32,424- 83,218 0
STATE INCOME TAXES -450 0 6,290- 0
OTHER ACCRUED TAXES -500 495,516 324,539 2,696,418
ACCRD DIVIDENDS & INTEREST
INTEREST ACCRUED -610 0 0 1,810,987
DIVIDENDS DECLARED -620 0 0 0
MATURED INTEREST -630 0 0 0
OTHER
CUSTOMER DEPOSITS -910 598,571 219,125 1,697,673
TAX COLLECTIONS PAY -920 0 0 0
MISC CURR & ACCR LIAB-930 572,213 651,969 995,475
------------ ------------ ------------
TOTAL CURRENT LIABILITIES 3,894,799 1,999,874 20,427,042
------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 13,397,757 72,637,779
ACCUM DEF INCOME TAXES -100 0 921,189- 21,287,423
ACC DEF INV TAX CREDITS-200 0 0 1,236,886
OTHER
MINORITY INTEREST -900 0 0 0
CUST ADV FOR CONSTR -910 0 0 0
OTHER DEF CREDITS -920 5,874,188 0 7,524,452
LOST TIME RESERVE -930 0 0 0
------------ ------------ ------------
TOTAL DEFERRED CREDITS 5,874,188 12,476,568 102,686,540
------------ ------------ ------------
TOTAL LIABILITY & CAPITAL 35,900,061 34,880,637 306,339,345
============ ============ ============
TOPEKA GROUP CONSOLIDATED STATEMENT OF INCOME Exhibit A-1
YEAR TO DATE AS OF DECEMBER 1994 Page 3 of 3
CONSOLIDATED ELIMINATIONS TOPEKA GROUP ELAG FIBERCORE
------------ ------------ ------------ ------------ ------------
REVENUE - ELECTRIC R-100 0 0 0 0 0
- WATER -300 63,515,647 0 0 0 0
- GAS -400 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING REVENUE 63,515,647 0 0 0 0
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES (E)
FUEL FOR GENERATION -100 0 0 0 0 0
PURCHASE & INTER POWER -200 0 0 0 0 0
OTHER OPERATION -300 31,891,940 0 0 0 0
MAINTENANCE -410 3,764,958 0 0 0 0
DEPRECIATION -500 8,411,576 0 0 0 0
INCOME TAXES
FEDERAL INCOME TAXES -710 344,765- 0 0 0 0
STATE INCOME TAXES -720 9,735- 0 0 0 0
DEF INV TAX CREDITS -750 41,002- 0 0 0 0
DEFERRED INCOME TAXES-770 690,901 0 0 0 0
PROPERTY TAXES -610 3,905,078 0 0 0 0
OTHER TAXES -620 3,473,856 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 51,742,807 0 0 0 0
------------ ------------ ------------ ------------ ------------
OPERATING INCOME 11,772,840 0 0 0 0
------------ ------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 0 23,851,983- 23,851,983 0 0
ALLOW FOR FUNDS-EQUITY -100 220,647 0 0 0 0
INVESTMENT INCOME -300 676,911 3,139,104- 3,088,755 15,779 0
GAIN ON SALE OF SUB -505 0 0 0 0 0
MISCELLANEOUS INCOME -500 30,403,940 2,541,123- 943,987- 621,683 0
INCOME TAXES - INVEST -400 2,495,789- 0 2,283,651- 0 0
- MISC -600 5,884,515- 0 2,685,062 289,287- 0
------------ ------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 22,921,194 29,532,210- 26,398,162 348,175 0
------------ ------------ ------------ ------------ ------------
INCOME BEFORE INTEREST 34,694,034 29,532,210- 26,398,162 348,175 0
------------ ------------ ------------ ------------ ------------
INTEREST CHARGES (I)
INTEREST EXPENSE
INTEREST ON LTD -100 10,965,981 3,139,104- 3,132,000 7,807 0
AMORT OF DEBT EXPENSE-300 0 0 0 0 0
OTHER INTEREST EXP -340 955,030 0 259,377 0 0
ALLOW FOR FUNDS - DEBT -200 233,763- 0 0 0 0
------------ ------------ ------------ ------------ ------------
TOTAL INTEREST CHARGES 11,687,248 3,139,104- 3,391,377 7,807 0
------------ ------------ ------------ ------------ ------------
INCOME BEFORE EXTRAORD ITEM 23,006,786 26,393,106- 23,006,785 340,368 0
EXTRAORD GAIN REPAY OF DEBT
NET OF MINOR INT $2,415,457 0 0 0 0 0
------------ ------------ ------------ ------------ ------------
NET INCOME 23,006,786 26,393,106- 23,006,785 340,368 0
============ ============ ============ ============ ============
LAC HEATER SSU
------------ ------------ ------------
REVENUE - ELECTRIC R-100 0 0 0
- WATER -300 0 8,832,828 54,682,819
- GAS -400 0 0 0
------------ ------------ ------------
TOTAL OPERATING REVENUE 0 8,832,828 54,682,819
------------ ------------ ------------
OPERATING EXPENSES (E)
FUEL FOR GENERATION -100 0 0 0
PURCHASE & INTER POWER -200 0 0 0
OTHER OPERATION -300 0 4,951,616 26,940,324
MAINTENANCE -410 0 101,764 3,663,194
DEPRECIATION -500 0 1,286,373 7,125,203
INCOME TAXES
FEDERAL INCOME TAXES -710 0 586,090 930,855-
STATE INCOME TAXES -720 0 103,929 113,664-
DEF INV TAX CREDITS -750 0 60- 40,942-
DEFERRED INCOME TAXES-770 0 274,583- 965,484
PROPERTY TAXES -610 0 216,122 3,688,956
OTHER TAXES -620 0 439,947 3,033,910
------------ ------------ ------------
TOTAL OPERATING EXPENSES 0 7,411,198 44,331,610
------------ ------------ ------------
OPERATING INCOME 0 1,421,630 10,351,209
------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 0 0 0
ALLOW FOR FUNDS-EQUITY -100 0 0 220,647
INVESTMENT INCOME -300 0 131,626 579,855
GAIN ON SALE OF SUB -505 0 0 0
MISCELLANEOUS INCOME -500 13,408,100 181,957 19,677,310
INCOME TAXES - INVEST -400 0 47,204- 164,934-
- MISC -600 691,064- 56,816 7,646,042-
------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 12,717,036 323,195 12,666,836
------------ ------------ ------------
INCOME BEFORE INTEREST 12,717,036 1,744,825 23,018,045
------------ ------------ ------------
INTEREST CHARGES (I)
INTEREST EXPENSE
INTEREST ON LTD -100 11,415 1,051,033 9,902,830
AMORT OF DEBT EXPENSE-300 0 0 0
OTHER INTEREST EXP -340 0 17,855 677,797
ALLOW FOR FUNDS - DEBT -200 0 0 233,763-
------------ ------------ ------------
TOTAL INTEREST CHARGES 11,415 1,068,888 10,346,864
------------ ------------ ------------
INCOME BEFORE EXTRAORD ITEM 12,705,621 675,937 12,671,181
EXTRAORD GAIN REPAY OF DEBT
NET OF MINOR INT $2,415,457 0 0 0
------------ ------------ ------------
NET INCOME 12,705,621 675,937 12,671,181
============ ============ ============
Exhibit A-2
Page 1 of 10
LEHIGH ACQUISITION CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
PURCHASE ACCOUNTING
COMBINED ADJUSTMENTS
ENTITIES DR CR
------------- ------------- -------------
ASSETS
Cash and cash equivalents 9,367,928
Inventory and supplies 235,677
Residential construction in progress 786,761
Trade and miscellaneous accounts rec 525,829
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 3,353,905 48,170
Timeshare 851,277 2,317
Commercial notes 2,919,518
------------- ------------- -------------
Total contracts receivable-postacq 7,124,700 50,487
------------- ------------- -------------
Contracts receivable-preacquisition 8,514,393 9,786,578 15,363,017
Due from affiliates:
Water and wastewater connections 1,347,388
Tax share
Other 16,857,514
------------- ------------- -------------
Total due from affiliates 18,204,902
------------- ------------- -------------
Investments/advances to subsidiaries
Property and equipment 7,113,111 1,956,943
Less accum depreciation (4,552,383) 141,707 1,917,210
Less bargain differential-PP&E 29,075 866,286
------------- ------------- -------------
Net property and equipment 2,560,728 2,127,725 2,783,496
------------- ------------- -------------
Land, land improvements and CIP 32,381,287 4,380,536
Less bargain differential-land 2,978,800 29,962,015
------------- ------------- -------------
Net land, land improvements 32,381,287 7,359,336 29,962,015
------------- ------------- -------------
Investment in joint venture 20,161
Other assets 1,807,179
------------- ------------- -------------
81,529,545 28,784,402
============= ============= =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 387,424
Customer Deposits 598,571
Accrued expenses:
Real estate taxes 495,516
Other 572,213
------------- ------------- -------------
Total accrued expenses 1,067,729
------------- ------------- -------------
Due to affiliates:
Utility fee credit 800,000
Tax share 1,046,900
Other 50
------------- ------------- -------------
Total due to affiliates 1,846,950
------------- ------------- -------------
Contingency reserves 4,855,621 425,661
Deferred income 227,764 254,396
Income taxes payable 1,575,000
Notes payable 623,354
Minority interest 110,746
Common stock and R/E (deficit):
Common stock 22,600
Capital in excess of par value 81,312,351 56,219,827
Retained earnings (deficit) (11,098,565) 26,755,368
------------- ------------- -------------
Total C/S and R/E (deficit) 70,236,386 56,219,827 26,755,368
------------- ------------- -------------
81,529,545 28,784,402
============= ============= =============
COMBINED ENTITIES LEHIGH
ADJUSTED FOR ACQUISITION
PURCHASE ADJUSTMTS CORPORATION
------------------ ----------------
ASSETS
Cash and cash equivalents 9,367,928 101,812
Inventory and supplies 235,677
Residential construction in progress 786,761
Trade and miscellaneous accounts rec 525,829
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 3,402,075
Timeshare 853,594
Commercial notes 2,919,518
------------------ -------------
Total contracts receivable-postacq 7,175,187
------------------ -------------
Contracts receivable-preacquisition 2,937,954
Due from affiliates:
Water and wastewater connections 1,347,388
Tax share 1,046,900
Other 16,857,514
------------------ -------------
Total due from affiliates 18,204,902 1,046,900
------------------ -------------
Investments/advances to subsidiaries 40,771,929
Property and equipment 9,070,054 5,286
Less accum depreciation (6,327,886) (449)
Less bargain differential-PP&E (837,211)
------------------ -------------
Net property and equipment 1,904,957 4,837
------------------ -------------
Land, land improvements and CIP 36,761,823
Less bargain differential-land (26,983,215)
------------------ -------------
Net land, land improvements 9,778,608
------------------ -------------
Investment in joint venture 20,161
Other assets 1,807,179 (98,059)
------------------ -------------
52,745,143 41,827,419
================== =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 387,424 7,320
Customer Deposits 598,571
Accrued expenses:
Real estate taxes 495,516
Other 572,213
------------------ -------------
Total accrued expenses 1,067,729
------------------ -------------
Due to affiliates:
Utility fee credit 800,000
Tax share 1,046,900
Other 50 16,853,624
------------------ -------------
Total due to affiliates 1,846,950 16,853,624
------------------ -------------
Contingency reserves 5,281,282
Deferred income 482,160
Income taxes payable 1,575,000 (1,164,599)
Notes payable 623,354
Minority interest 110,746
Common stock and R/E (deficit):
Common stock 22,600 117
Capital in excess of par value 25,092,524 5,952,293
Retained earnings (deficit) 15,656,803 20,178,664
------------------ -------------
Total C/S and R/E (deficit) 40,771,927 26,131,074
------------------ -------------
52,745,143 41,827,419
================== =============
CONSOLIDATED
LEHIGH
ELIMINATIONS ACQUISITION
AND ADJUSTMENTS CORPORATION
---------------- -------------
ASSETS
Cash and cash equivalents 9,469,740
Inventory and supplies 235,677
Residential construction in progress 786,761
Trade and miscellaneous accounts rec 525,829
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 3,402,075
Timeshare 853,594
Commercial notes 2,919,518
---------------- -------------
Total contracts receivable-postacq 7,175,187
---------------- -------------
Contracts receivable-preacquisition 2,937,954
Due from affiliates:
Water and wastewater connections 1,347,388
Tax share (1,046,900)
Other (16,853,672) 3,842
---------------- -------------
Total due from affiliates (17,900,572) 1,351,230
---------------- -------------
Investments/advances to subsidiaries (40,771,929)
Property and equipment 9,075,340
Less accum depreciation (6,328,335)
Less bargain differential-PP&E (837,211)
---------------- -------------
Net property and equipment 1,909,794
---------------- -------------
Land, land improvements and CIP 36,761,823
Less bargain differential-land (26,983,215)
---------------- -------------
Net land, land improvements 9,778,608
---------------- -------------
Investment in joint venture 20,161
Other assets 1,709,120
---------------- -------------
(58,672,501) 35,900,061
================ =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 394,744
Customer Deposits 598,571
Accrued expenses:
Real estate taxes 495,516
Other 572,213
---------------- -------------
Total accrued expenses 1,067,729
---------------- -------------
Due to affiliates:
Utility fee credit 800,000
Tax share (1,046,900)
Other (16,853,674)
---------------- -------------
Total due to affiliates (17,900,574) 800,000
---------------- -------------
Contingency reserves 5,281,282
Deferred income 482,160
Income taxes payable 410,401
Notes payable 623,354
Minority interest 110,746
Common stock and R/E (deficit):
Common stock (22,600) 117
Capital in excess of par value (25,092,524) 5,952,293
Retained earnings (deficit) (15,656,803) 20,178,664
---------------- -------------
Total C/S and R/E (deficit) (40,771,927) 26,131,074
---------------- -------------
(58,672,501) 35,900,061
================ =============
Exhibit A-2
Page 2 of 10
LEHIGH ACQUISITION CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
PURCHASE ACCOUNTING
COMBINED ADJUSTMENTS
ENTITIES DR CR
------------- ------------- -------------
Revenues:
Lots with roads only 1,426,842
Builder lots (serviced) 1,479,108 37,794
Less estimated uncollectible sales (284,191)
------------- ------------- -------------
Net homesite sales 2,621,759 37,794
------------- ------------- -------------
Commercial/bulk land sales 6,595,975
Timeshare sales 94,658
Residential sales 3,683,935
Discount earned on acquired receivables 1,903,564 3,809,662
Bargain differential earned:
Lots with roads only 465,394
Builder lots (serviced) 585,220
Timeshare
Commercial/bulk land 351,194 1,928,186
Receivables
Property and equipment 29,075
------------- ------------- -------------
Total bargain differential earned 351,194 3,007,875
------------- ------------- -------------
Finance income 936,843
Operating revenues - subsidiaries 3,386,440 307,683
Other revenues 5,547,296 3,159 39,864
------------- ------------- -------------
Total revenues 24,770,470 392,147 7,165,084
------------- ------------- -------------
Cost of Sales:
Lots with roads only 586,833 3,633
Builder lots (serviced) 518,612 364,947
Commercial/bulk land sales 3,078,058 315,107
Timeshare sales 14,075 14,075
Residential sales 3,413,959
------------- ------------- -------------
Total cost of sales 7,611,537 364,947 332,815
------------- ------------- -------------
Expenses:
Selling expenses 2,798,339
Property taxes 1,536,671
General and administrative expenses 2,813,484 55,266
Operating expenses - subsidiaries 2,418,475 18,067
Other expenses 510,976 6,666
Depreciation 417,568 141,707
Interest expense 11,415
------------- ------------- -------------
Total expenses 10,506,928 221,706
------------- ------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 6,652,005 757,094 7,719,605
Provision for (reduction) income taxes:
Current 1,115,900
Deferred (896,600)
------------- ------------- -------------
219,300
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 6,432,705 757,094 7,719,605
Minority interest (59,920)
------------- ------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 6,372,785 757,094 7,719,605
Equity in earnings of subsidiaries
------------- ------------- -------------
Net income (loss) 6,372,785 757,094 7,719,605
R/E (deficit) begin of period (9,550,497) 19,792,857
Dividends from (advances to) subs (7,920,853)
------------- ------------- -------------
R/E (deficit) end of period (11,098,565) 26,755,368
============= ============= =============
COMBINED ENTITIES LEHIGH
ADJUSTED FOR ACQUISITION
PURCHASE ADJUSTMTS CORPORATION
------------------ ----------------
Revenues:
Lots with roads only 1,426,842
Builder lots (serviced) 1,441,314
Less estimated uncollectible sales (284,191)
------------------ -------------
Net homesite sales 2,583,965
------------------ -------------
Commercial/bulk land sales 6,595,975
Timeshare sales 94,658
Residential sales 3,683,935
Discount earned on acquired receivables 5,713,226
Bargain differential earned:
Lots with roads only 465,394
Builder lots (serviced) 585,220
Timeshare
Commercial/bulk land 1,576,992
Receivables
Property and equipment 29,075
------------------ -------------
Total bargain differential earned 2,656,681
------------------ -------------
Finance income 936,843 8,150
Operating revenues - subsidiaries 3,694,123
Other revenues 5,584,001 101,548
------------------ -------------
Total revenues 31,543,407 109,698
------------------ -------------
Cost of Sales:
Lots with roads only 583,200
Builder lots (serviced) 883,559
Commercial/bulk land sales 2,762,951
Timeshare sales
Residential sales 3,413,959
------------------ -------------
Total cost of sales 7,643,669
------------------ -------------
Expenses:
Selling expenses 2,798,339
Property taxes 1,536,671
General and administrative expenses 2,758,218 267,310
Operating expenses - subsidiaries 2,400,408
Other expenses 504,310
Depreciation 275,861 299
Interest expense 11,415
------------------ -------------
Total expenses 10,285,222 267,609
------------------ -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 13,614,516 (157,911)
Provision for (reduction) income taxes:
Current 1,115,900 353,305
Deferred (896,600) 118,459
------------------ -------------
219,300 471,764
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 13,395,216 (629,675)
Minority interest (59,920)
------------------ -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 13,335,296 (629,675)
Equity in earnings of subsidiaries 13,335,296
------------------ -------------
Net income (loss) 13,335,296 12,705,621
R/E (deficit) begin of period 10,242,360 15,223,043
Dividends from (advances to) subs (7,920,853) (7,750,000)
------------------ -------------
R/E (deficit) end of period 15,656,803 20,178,664
================== =============
CONSOLIDATED
LEHIGH
ELIMINATIONS ACQUISITION
AND ADJUSTMENTS CORPORATION
---------------- -------------
Revenues:
Lots with roads only 1,426,842
Builder lots (serviced) 1,441,314
Less estimated uncollectible sales (284,191)
---------------- -------------
Net homesite sales 2,583,965
---------------- -------------
Commercial/bulk land sales 6,595,975
Timeshare sales 94,658
Residential sales 3,683,935
Discount earned on acquired receivables 5,713,226
Bargain differential earned:
Lots with roads only 465,394
Builder lots (serviced) 585,220
Timeshare
Commercial/bulk land 1,576,992
Receivables
Property and equipment 29,075
---------------- -------------
Total bargain differential earned 2,656,681
---------------- -------------
Finance income 944,993
Operating revenues - subsidiaries 3,694,123
Other revenues 5,685,549
---------------- -------------
Total revenues 31,653,105
---------------- -------------
Cost of Sales:
Lots with roads only 583,200
Builder lots (serviced) 883,559
Commercial/bulk land sales 2,762,951
Timeshare sales
Residential sales 3,413,959
---------------- -------------
Total cost of sales 7,643,669
---------------- -------------
Expenses:
Selling expenses 2,798,339
Property taxes 1,536,671
General and administrative expenses 3,025,528
Operating expenses - subsidiaries 2,400,408
Other expenses 504,310
Depreciation 276,160
Interest expense 11,415
---------------- -------------
Total expenses 10,552,831
---------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 13,456,605
Provision for (reduction) income taxes:
Current 1,469,205
Deferred (778,141)
---------------- -------------
691,064
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 12,765,541
Minority interest (59,920)
---------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 12,705,621
Equity in earnings of subsidiaries (13,335,296)
---------------- -------------
Net income (loss) (13,335,296) 12,705,621
R/E (deficit) begin of period (10,242,360) 15,223,043
Dividends from (advances to) subs 7,920,853 (7,750,000)
---------------- -------------
R/E (deficit) end of period (15,656,803) 20,178,664
================ =============
Exhibit A-2
Page 3 of 10
COMBINED ENTITIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
LEHIGH COMBINED ORANGE STATE
CORPORATION WEBB PROPERTY
AND SUBSIDIARIES GROUP SERVICES, INC
---------------- ------------- -------------
ASSETS
Cash and cash equivalents 9,316,507 51,421
Inventory and supplies 235,677
Residential construction in progress 786,761
Trade and miscellaneous accounts rec 525,829
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 3,107,589 246,316
Timeshare 851,277
Commercial notes 2,919,518
---------------- ------------- -------------
Total contracts receivable-postacq 6,878,384 246,316
---------------- ------------- -------------
Contracts receivable-preacquisition 9,130,421 (616,028)
Due from affiliates:
Water and wastewater connections 1,347,388
Tax share
Other 14,802,436 1,632,415
---------------- ------------- -------------
Total due from affiliates 16,149,824 1,632,415
---------------- ------------- -------------
Investments/advances to subsidiaries
Property and equipment 7,113,111
Less accum depreciation (4,552,383)
Less bargain differential-PP&E
---------------- ------------- -------------
Net property and equipment 2,560,728
---------------- ------------- -------------
Land, land improvements and CIP 32,257,204 124,083
Less bargain differential-land
---------------- ------------- -------------
Net land, land improvements 32,257,204 124,083
---------------- ------------- -------------
Investment in joint venture 3,409
Other assets 1,188,879 586,900
---------------- ------------- -------------
79,033,623 2,025,107
================ ============= =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 378,929 8,495
Customer Deposits 592,284 6,287
Accrued expenses:
Real estate taxes 389,444 106,072
Other 570,527 1,537
---------------- ------------- -------------
Total accrued expenses 959,971 107,609
---------------- ------------- -------------
Due to affiliates:
Utility fee credit 800,000
Tax share 837,600 168,800
Other
---------------- ------------- -------------
Total due to affiliates 1,637,600 168,800
---------------- ------------- -------------
Contingency reserves 4,855,621
Deferred income 227,764
Income taxes payable 1,575,000
Notes payable 623,354
Minority interest 110,746
Common stock and R/E (deficit):
Common stock 500 20,500
Capital in excess of par value 71,290,534 9,339,164
Retained earnings (deficit) (3,218,680) (7,625,748)
---------------- ------------- -------------
Total C/S and R/E (deficit) 68,072,354 1,733,916
---------------- ------------- -------------
79,033,623 2,025,107
================ ============= =============
ATLAS
CONSTRUCTION LRC OF SRC OF
SERVICES GEORGIA FLORIDA
------------- ------------- -------------
ASSETS
Cash and cash equivalents
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels
Timeshare
Commercial notes
------------- ------------- -------------
Total contracts receivable-postacq
------------- ------------- -------------
Contracts receivable-preacquisition
Due from affiliates:
Water and wastewater connections
Tax share
Other 109,089 313,574
------------- ------------- -------------
Total due from affiliates 109,089 313,574
------------- ------------- -------------
Investments/advances to subsidiaries
Property and equipment
Less accum depreciation
Less bargain differential-PP&E
------------- ------------- -------------
Net property and equipment
------------- ------------- -------------
Land, land improvements and CIP
Less bargain differential-land
------------- ------------- -------------
Net land, land improvements
------------- ------------- -------------
Investment in joint venture 16,752
Other assets 31,400
------------- ------------- -------------
109,089 361,726
============= ============= =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable
Customer Deposits
Accrued expenses:
Real estate taxes
Other 149
------------- ------------- -------------
Total accrued expenses 149
------------- ------------- -------------
Due to affiliates:
Utility fee credit
Tax share 40,500
Other 50
------------- ------------- -------------
Total due to affiliates 50 40,500
------------- ------------- -------------
Contingency reserves
Deferred income
Income taxes payable
Notes payable
Minority interest
Common stock and R/E (deficit):
Common stock 1,000 500 100
Capital in excess of par value 124,712 449,490 108,451
Retained earnings (deficit) (16,772) (450,040) 212,675
------------- ------------- -------------
Total C/S and R/E (deficit) 108,940 (50) 321,226
------------- ------------- -------------
109,089 361,726
============= ============= =============
TOTAL
COMBINED
ENTITIES
-------------
ASSETS
Cash and cash equivalents 9,367,928
Inventory and supplies 235,677
Residential construction in progress 786,761
Trade and miscellaneous accounts rec 525,829
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 3,353,905
Timeshare 851,277
Commercial notes 2,919,518
-------------
Total contracts receivable-postacq 7,124,700
-------------
Contracts receivable-preacquisition 8,514,393
Due from affiliates:
Water and wastewater connections 1,347,388
Tax share
Other 16,857,514
-------------
Total due from affiliates 18,204,902
-------------
Investments/advances to subsidiaries
Property and equipment 7,113,111
Less accum depreciation (4,552,383)
Less bargain differential-PP&E
-------------
Net property and equipment 2,560,728
-------------
Land, land improvements and CIP 32,381,287
Less bargain differential-land
-------------
Net land, land improvements 32,381,287
-------------
Investment in joint venture 20,161
Other assets 1,807,179
-------------
81,529,545
=============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 387,424
Customer Deposits 598,571
Accrued expenses:
Real estate taxes 495,516
Other 572,213
-------------
Total accrued expenses 1,067,729
-------------
Due to affiliates:
Utility fee credit 800,000
Tax share 1,046,900
Other 50
-------------
Total due to affiliates 1,846,950
-------------
Contingency reserves 4,855,621
Deferred income 227,764
Income taxes payable 1,575,000
Notes payable 623,354
Minority interest 110,746
Common stock and R/E (deficit):
Common stock 22,600
Capital in excess of par value 81,312,351
Retained earnings (deficit) (11,098,565)
-------------
Total C/S and R/E (deficit) 70,236,386
-------------
81,529,545
=============
Exhibit A-2
Page 4 of 10
COMBINED ENTITIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
LEHIGH COMBINED ORANGE STATE
CORPORATION WEBB PROPERTY
AND SUBSIDIARIES GROUP SERVICES, INC
---------------- ------------- -------------
Revenues:
Lots with roads only 1,426,842
Builder lots (serviced) 1,479,108
Less estimated uncollectible sales (284,191)
---------------- ------------- -------------
Net homesite sales 2,621,759
---------------- ------------- -------------
Commercial/bulk land sales 6,595,975
Timeshare sales 94,658
Residential sales 3,683,935
Discount earned on acquired receivables 1,549,959 353,605
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
---------------- ------------- -------------
Total bargain differential earned
---------------- ------------- -------------
Finance income 895,791 41,052
Operating revenues - subsidiaries 2,592,509 318,092 338,773
Other revenues 5,547,296
---------------- ------------- -------------
Total revenues 23,581,882 712,749 338,773
---------------- ------------- -------------
Cost of Sales:
Lots with roads only 586,833
Builder lots (serviced) 518,612
Commercial/bulk land sales 3,078,058
Timeshare sales 14,075
Residential sales 3,413,959
---------------- ------------- -------------
Total cost of sales 7,611,537
---------------- ------------- -------------
Expenses:
Selling expenses 2,771,658 26,681
Property taxes 1,510,414 22,855 3,402
General and administrative expenses 2,809,110 4,374
Operating expenses - subsidiaries 2,179,372 18,067 216,536
Other expenses 510,976
Depreciation 394,644 22,924
Interest expense 11,415
---------------- ------------- -------------
Total expenses 10,187,589 71,977 242,862
---------------- ------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 5,782,756 640,772 95,911
Provision for (reduction) income taxes:
Current 879,100 168,800 27,500
Deferred (675,100) (168,800) (21,300)
---------------- ------------- -------------
204,000 6,200
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 5,578,756 640,772 89,711
Minority interest (59,920)
---------------- ------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 5,518,836 640,772 89,711
Equity in earnings of subsidiaries
---------------- ------------- -------------
Net income (loss) 5,518,836 640,772 89,711
R/E (deficit) begin of period (1,237,516) (8,266,520) 331,142
Dividends from (advances to) subs (7,500,000) (420,853)
---------------- ------------- -------------
R/E (deficit) end of period (3,218,680) (7,625,748)
================ ============= =============
ATLAS
CONSTRUCTION LRC OF SRC OF
SERVICES GEORGIA FLORIDA
------------- ------------- -------------
Revenues:
Lots with roads only
Builder lots (serviced)
Less estimated uncollectible sales
------------- ------------- -------------
Net homesite sales
------------- ------------- -------------
Commercial/bulk land sales
Timeshare sales
Residential sales
Discount earned on acquired receivables
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
------------- ------------- -------------
Total bargain differential earned
------------- ------------- -------------
Finance income
Operating revenues - subsidiaries 137,066
Other revenues
------------- ------------- -------------
Total revenues 137,066
------------- ------------- -------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales
------------- ------------- -------------
Total cost of sales
------------- ------------- -------------
Expenses:
Selling expenses
Property taxes
General and administrative expenses
Operating expenses - subsidiaries 4,500
Other expenses
Depreciation
Interest expense
------------- ------------- -------------
Total expenses 4,500
------------- ------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 132,566
Provision for (reduction) income taxes:
Current 40,500
Deferred (31,400)
------------- ------------- -------------
9,100
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 123,466
Minority interest
------------- ------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 123,466
Equity in earnings of subsidiaries
------------- ------------- -------------
Net income (loss) 123,466
R/E (deficit) begin of period (16,772) (450,040) 89,209
Dividends from (advances to) subs
------------- ------------- -------------
R/E (deficit) end of period (16,772) (450,040) 212,675
============= ============= =============
TOTAL
COMBINED
ENTITIES
-------------
Revenues:
Lots with roads only 1,426,842
Builder lots (serviced) 1,479,108
Less estimated uncollectible sales (284,191)
-------------
Net homesite sales 2,621,759
-------------
Commercial/bulk land sales 6,595,975
Timeshare sales 94,658
Residential sales 3,683,935
Discount earned on acquired receivables 1,903,564
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
-------------
Total bargain differential earned
-------------
Finance income 936,843
Operating revenues - subsidiaries 3,386,440
Other revenues 5,547,296
-------------
Total revenues 24,770,470
-------------
Cost of Sales:
Lots with roads only 586,833
Builder lots (serviced) 518,612
Commercial/bulk land sales 3,078,058
Timeshare sales 14,075
Residential sales 3,413,959
-------------
Total cost of sales 7,611,537
-------------
Expenses:
Selling expenses 2,798,339
Property taxes 1,536,671
General and administrative expenses 2,813,484
Operating expenses - subsidiaries 2,418,475
Other expenses 510,976
Depreciation 417,568
Interest expense 11,415
-------------
Total expenses 10,506,928
-------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 6,652,005
Provision for (reduction) income taxes:
Current 1,115,900
Deferred (896,600)
-------------
219,300
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 6,432,705
Minority interest (59,920)
-------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 6,372,785
Equity in earnings of subsidiaries
-------------
Net income (loss) 6,372,785
R/E (deficit) begin of period (9,550,497)
Dividends from (advances to) subs (7,920,853)
-------------
R/E (deficit) end of period (11,098,565)
=============
Exhibit A-2
Page 5 of 10
LEHIGH CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
HOME AT LEHIGH OTHER LEHIGH
LEHIGH, INC. BUILDING CORPORATION
(98% ownership) SUPPLY, INC. SUBSIDIARIES
-------------- ------------- -------------
ASSETS
Cash and cash equivalents 259,018 27,395 196,532
Inventory and supplies 223,514
Residential construction in progress 694,736
Trade and miscellaneous accounts rec 27,170 198,541
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels
Timeshare
Commercial notes
-------------- ------------- -------------
Total contracts receivable-postacq
-------------- ------------- -------------
Contracts receivable-preacquisition
Due from affiliates:
Water and wastewater connections
Tax share 15,400 13,200 65,100
Other 798,904
-------------- ------------- -------------
Total due from affiliates 15,400 13,200 864,004
-------------- ------------- -------------
Investments/advances to subsidiaries
Property and equipment 564,427 979,710 1,416,774
Less accum depreciation (82,027) (530,149) (1,093,693)
Less bargain differential-PP&E
-------------- ------------- -------------
Net property and equipment 482,400 449,561 323,081
-------------- ------------- -------------
Land, land improvements and CIP 631,449
Less bargain differential-land
-------------- ------------- -------------
Net land, land improvements 631,449
-------------- ------------- -------------
Investment in joint venture
Other assets 60,003 30,100 (7,305)
-------------- ------------- -------------
1,511,557 770,940 2,206,302
============== ============= =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 189,971 42,349 34,983
Customer Deposits 562,954 10
Accrued expenses:
Real estate taxes 14,158
Other 79,657 35,657 46,106
-------------- ------------- -------------
Total accrued expenses 79,657 35,657 60,264
-------------- ------------- -------------
Due to affiliates:
Utility fee credit
Tax share 16,800
Other 41,756 984,258 232,403
-------------- ------------- -------------
Total due to affiliates 41,756 984,258 249,203
-------------- ------------- -------------
Contingency reserves 26,195
Deferred income 1,457
Income taxes payable
Notes payable 620,916 49,533 4,470
Minority interest (686) 111,432
Common stock and R/E (deficit):
Common stock 490 500 3,525
Capital in excess of par value 250,783 37,927 4,148,358
Retained earnings (deficit) (260,479) (379,284) (2,407,400)
-------------- ------------- -------------
Total C/S and R/E (deficit) (9,206) (340,857) 1,744,483
-------------- ------------- -------------
1,511,557 770,940 2,206,302
============== ============= =============
TOTAL LEHIGH
CORPORATION
LEHIGH AND
CORPORATION ELIMINATIONS SUBSIDIARIES
------------- ------------- -------------
ASSETS
Cash and cash equivalents 8,833,562 9,316,507
Inventory and supplies 12,163 235,677
Residential construction in progress 92,025 786,761
Trade and miscellaneous accounts rec 304,090 (3,972) 525,829
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 3,107,589 3,107,589
Timeshare 851,277 851,277
Commercial notes 2,980,968 (61,450) 2,919,518
------------- ------------- -------------
Total contracts receivable-postacq 6,939,834 (61,450) 6,878,384
------------- ------------- -------------
Contracts receivable-preacquisition 9,130,421 9,130,421
Due from affiliates:
Water and wastewater connections 1,347,388 1,347,388
Tax share (93,700)
Other 15,261,947 (1,258,415) 14,802,436
------------- ------------- -------------
Total due from affiliates 16,609,335 (1,352,115) 16,149,824
------------- ------------- -------------
Investments/advances to subsidiaries 28,151,625 (28,151,625)
Property and equipment 4,206,954 (54,754) 7,113,111
Less accum depreciation (2,848,349) 1,835 (4,552,383)
Less bargain differential-PP&E
------------- ------------- -------------
Net property and equipment 1,358,605 (52,919) 2,560,728
------------- ------------- -------------
Land, land improvements and CIP 31,354,284 271,471 32,257,204
Less bargain differential-land
------------- ------------- -------------
Net land, land improvements 31,354,284 271,471 32,257,204
------------- ------------- -------------
Investment in joint venture 3,409 3,409
Other assets 1,106,081 1,188,879
------------- ------------- -------------
103,895,434 (29,350,610) 79,033,623
============= ============= =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 111,626 378,929
Customer Deposits 29,320 592,284
Accrued expenses:
Real estate taxes 375,286 389,444
Other 413,079 (3,972) 570,527
------------- ------------- -------------
Total accrued expenses 788,365 (3,972) 959,971
------------- ------------- -------------
Due to affiliates:
Utility fee credit 800,000 800,000
Tax share 914,500 (93,700) 837,600
Other (1,258,417)
------------- ------------- -------------
Total due to affiliates 1,714,500 (1,352,117) 1,637,600
------------- ------------- -------------
Contingency reserves 4,829,426 4,855,621
Deferred income (45,164) 271,471 227,764
Income taxes payable 1,575,000 1,575,000
Notes payable 9,885 (61,450) 623,354
Minority interest 110,746
Common stock and R/E (deficit):
Common stock 500 (4,515) 500
Capital in excess of par value 71,290,534 (4,437,068) 71,290,534
Retained earnings (deficit) 23,591,442 (23,762,959) (3,218,680)
------------- ------------- -------------
Total C/S and R/E (deficit) 94,882,476 (28,204,542) 68,072,354
------------- ------------- -------------
103,895,434 (29,350,610) 79,033,623
============= ============= =============
Exhibit A-2
Page 6 of 10
LEHIGH CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
HOME AT LEHIGH OTHER LEHIGH
LEHIGH, INC. BUILDING CORPORATION
(98% ownership) SUPPLY, INC. SUBSIDIARIES
-------------- ------------- -------------
Revenues:
Lots with roads only
Builder lots (serviced) 371,572
Less estimated uncollectible sales
-------------- ------------- -------------
Net homesite sales 371,572
-------------- ------------- -------------
Commercial/bulk land sales
Timeshare sales
Residential sales 3,683,935
Discount earned on acquired receivables
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
-------------- ------------- -------------
Total bargain differential earned
-------------- ------------- -------------
Finance income
Operating revenues - subsidiaries 15,862 1,087,094 1,908,936
Other revenues 67,241 79,052 30,321
-------------- ------------- -------------
Total revenues 4,138,610 1,166,146 1,939,257
-------------- ------------- -------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales 3,413,959
-------------- ------------- -------------
Total cost of sales 3,413,959
-------------- ------------- -------------
Expenses:
Selling expenses 305,363
Property taxes 20,713 14,722
General and administrative expenses 360,519
Operating expenses - subsidiaries 1,072,958 1,525,797
Other expenses
Depreciation 46,068 43,720 70,502
Interest expense 7,858 26,189
-------------- ------------- -------------
Total expenses 711,950 1,145,249 1,637,210
-------------- ------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 12,701 20,897 302,047
Provision for (reduction) income taxes:
Current (15,400) (13,200) (6,800)
Deferred 15,400 13,200 51,300
-------------- ------------- -------------
44,500
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 12,701 20,897 257,547
Minority interest (254) (59,666)
-------------- ------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 12,447 20,897 197,881
Equity in earnings of subsidiaries
-------------- ------------- -------------
Net income (loss) 12,447 20,897 197,881
R/E (deficit) begin of period (272,926) (400,181) (2,577,234)
Dividends from (advances to) subs (28,047)
-------------- ------------- -------------
R/E (deficit) end of period (260,479) (379,284) (2,407,400)
============== ============= =============
TOTAL LEHIGH
CORPORATION
LEHIGH AND
CORPORATION ELIMINATIONS SUBSIDIARIES
------------- ------------- -------------
Revenues:
Lots with roads only 1,426,842 1,426,842
Builder lots (serviced) 1,107,536 1,479,108
Less estimated uncollectible sales (284,191) (284,191)
------------- ------------- -------------
Net homesite sales 2,250,187 2,621,759
------------- ------------- -------------
Commercial/bulk land sales 6,595,975 6,595,975
Timeshare sales 94,658 94,658
Residential sales 3,683,935
Discount earned on acquired receivables 1,549,959 1,549,959
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
------------- ------------- -------------
Total bargain differential earned
------------- ------------- -------------
Finance income 920,326 (24,535) 895,791
Operating revenues - subsidiaries (419,383) 2,592,509
Other revenues 5,509,310 (138,628) 5,547,296
------------- ------------- -------------
Total revenues 16,920,415 (582,546) 23,581,882
------------- ------------- -------------
Cost of Sales:
Lots with roads only 586,833 586,833
Builder lots (serviced) 518,612 518,612
Commercial/bulk land sales 3,078,058 3,078,058
Timeshare sales 14,075 14,075
Residential sales 3,413,959
------------- ------------- -------------
Total cost of sales 4,197,578 7,611,537
------------- ------------- -------------
Expenses:
Selling expenses 2,466,295 2,771,658
Property taxes 1,474,979 1,510,414
General and administrative expenses 2,448,591 2,809,110
Operating expenses - subsidiaries (419,383) 2,179,372
Other expenses 649,604 (138,628) 510,976
Depreciation 236,189 (1,835) 394,644
Interest expense 1,903 (24,535) 11,415
------------- ------------- -------------
Total expenses 7,277,561 (584,381) 10,187,589
------------- ------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 5,445,276 1,835 5,782,756
Provision for (reduction) income taxes:
Current 914,500 879,100
Deferred (755,000) (675,100)
------------- ------------- -------------
159,500 204,000
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 5,285,776 1,835 5,578,756
Minority interest (59,920)
------------- ------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 5,285,776 1,835 5,518,836
Equity in earnings of subsidiaries 7,195,571 (7,195,571)
------------- ------------- -------------
Net income (loss) 12,481,347 (7,193,736) 5,518,836
R/E (deficit) begin of period 18,610,095 (16,597,270) (1,237,516)
Dividends from (advances to) subs (7,500,000) 28,047 (7,500,000)
------------- ------------- -------------
R/E (deficit) end of period 23,591,442 (23,762,959) (3,218,680)
============= ============= =============
Exhibit A-2
Page 7 of 10
OTHER LEHIGH CORPORATION SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
NEWS-STAR
LEHIGH LAND & CLIFFSIDE PUBLICATIONS,
INVESTMENT, PROPERTIES INC.
INC. INC. (60% ownership)
------------- ------------- --------------
ASSETS
Cash and cash equivalents 95,425
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 91,225
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels
Timeshare
Commercial notes
------------- ------------- --------------
Total contracts receivable-postacq
------------- ------------- --------------
Contracts receivable-preacquisition
Due from affiliates:
Water and wastewater connections
Tax share 65,000
Other 798,904
------------- ------------- --------------
Total due from affiliates 863,904
------------- ------------- --------------
Investments/advances to subsidiaries
Property and equipment 211,837
Less accum depreciation (101,432)
Less bargain differential-PP&E
------------- ------------- --------------
Net property and equipment 110,405
------------- ------------- --------------
Land, land improvements and CIP
Less bargain differential-land
------------- ------------- --------------
Net land, land improvements
------------- ------------- --------------
Investment in joint venture
Other assets (23,800) 995
------------- ------------- --------------
840,104 298,050
============= ============= ==============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 7,234
Customer Deposits
Accrued expenses:
Real estate taxes 2,350
Other 7,512
------------- ------------- --------------
Total accrued expenses 9,862
------------- ------------- --------------
Due to affiliates:
Utility fee credit
Tax share
Other 37,200
------------- ------------- --------------
Total due to affiliates 37,200
------------- ------------- --------------
Contingency reserves
Deferred income 1,457
Income taxes payable
Notes payable 4,470
Minority interest 93,015
Common stock and R/E (deficit):
Common stock 500 1,000 1,500
Capital in excess of par value 2,493,054 909,424 32,187
Retained earnings (deficit) (2,493,554) (70,320) 111,125
------------- ------------- --------------
Total C/S and R/E (deficit) 840,104 144,812
------------- ------------- --------------
840,104 298,050
============= ============= ==============
ABLE LAND ENTERPRISE LEHIGH
SERVICES, LEHIGH, INC. COUNTRY
INC. 80% ownership CLUB, INC.
------------- -------------- --------------
ASSETS
Cash and cash equivalents 99,321 1,786
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 107,316
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels
Timeshare
Commercial notes
------------- -------------- --------------
Total contracts receivable-postacq
------------- -------------- --------------
Contracts receivable-preacquisition
Due from affiliates:
Water and wastewater connections
Tax share 100
Other
------------- -------------- --------------
Total due from affiliates 100
------------- -------------- --------------
Investments/advances to subsidiaries
Property and equipment 1,204,937
Less accum depreciation (992,261)
Less bargain differential-PP&E
------------- -------------- --------------
Net property and equipment 212,676
------------- -------------- --------------
Land, land improvements and CIP 631,449
Less bargain differential-land
------------- -------------- --------------
Net land, land improvements 631,449
------------- -------------- --------------
Investment in joint venture
Other assets 15,600 (100)
------------- -------------- --------------
434,913 633,235
============= ============== ==============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 25,490 2,259
Customer Deposits 10
Accrued expenses:
Real estate taxes 11,808
Other 38,594
------------- -------------- --------------
Total accrued expenses 50,402
------------- -------------- --------------
Due to affiliates:
Utility fee credit
Tax share 16,800
Other 195,203
------------- -------------- --------------
Total due to affiliates 212,003
------------- -------------- --------------
Contingency reserves
Deferred income
Income taxes payable
Notes payable
Minority interest 8,488 9,929
Common stock and R/E (deficit):
Common stock 485 40
Capital in excess of par value 92,411 621,282
Retained earnings (deficit) 45,634 (285)
------------- -------------- --------------
Total C/S and R/E (deficit) 138,530 621,037
------------- -------------- --------------
434,913 633,235
============= ============== ==============
TOTAL OTHER
LEHIGH
CORPORATION
SUBSIDIARIES
--------------
ASSETS
Cash and cash equivalents 196,532
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 198,541
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels
Timeshare
Commercial notes
--------------
Total contracts receivable-postacq
--------------
Contracts receivable-preacquisition
Due from affiliates:
Water and wastewater connections
Tax share 65,100
Other 798,904
--------------
Total due from affiliates 864,004
--------------
Investments/advances to subsidiaries
Property and equipment 1,416,774
Less accum depreciation (1,093,693)
Less bargain differential-PP&E
--------------
Net property and equipment 323,081
--------------
Land, land improvements and CIP 631,449
Less bargain differential-land
--------------
Net land, land improvements 631,449
--------------
Investment in joint venture
Other assets (7,305)
--------------
2,206,302
==============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 34,983
Customer Deposits 10
Accrued expenses:
Real estate taxes 14,158
Other 46,106
--------------
Total accrued expenses 60,264
--------------
Due to affiliates:
Utility fee credit
Tax share 16,800
Other 232,403
--------------
Total due to affiliates 249,203
--------------
Contingency reserves
Deferred income 1,457
Income taxes payable
Notes payable 4,470
Minority interest 111,432
Common stock and R/E (deficit):
Common stock 3,525
Capital in excess of par value 4,148,358
Retained earnings (deficit) (2,407,400)
--------------
Total C/S and R/E (deficit) 1,744,483
--------------
2,206,302
==============
Exhibit A-2
Page 8 of 10
OTHER LEHIGH CORPORATION SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
NEWS-STAR
LEHIGH LAND & CLIFFSIDE PUBLICATIONS,
INVESTMENT, PROPERTIES INC.
INC. INC. (60% ownership)
------------- ------------- --------------
Revenues:
Lots with roads only
Builder lots (serviced)
Less estimated uncollectible sales
------------- ------------- --------------
Net homesite sales
------------- ------------- --------------
Commercial/bulk land sales
Timeshare sales
Residential sales
Discount earned on acquired receivables
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
------------- ------------- --------------
Total bargain differential earned
------------- ------------- --------------
Finance income
Operating revenues - subsidiaries 732,646
Other revenues
------------- ------------- --------------
Total revenues 732,646
------------- ------------- --------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales
------------- ------------- --------------
Total cost of sales
------------- ------------- --------------
Expenses:
Selling expenses
Property taxes 2,350
General and administrative expenses
Operating expenses - subsidiaries 514,920
Other expenses
Depreciation 18,079
Interest expense 8,665
------------- ------------- --------------
Total expenses 544,014
------------- ------------- --------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 188,632
Provision for (reduction) income taxes:
Current (65,000) 41,500
Deferred 65,000
------------- ------------- --------------
41,500
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 147,132
Minority interest (58,853)
------------- ------------- --------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 88,279
Equity in earnings of subsidiaries
------------- ------------- --------------
Net income (loss) 88,279
R/E (deficit) begin of period (2,493,554) (70,320) 22,846
Dividends from (advances to) subs
------------- ------------- --------------
R/E (deficit) end of period (2,493,554) (70,320) 111,125
============= ============= ==============
ABLE LAND ENTERPRISE LEHIGH
SERVICES, LEHIGH, INC. COUNTRY
INC. 80% ownership CLUB, INC.
------------- -------------- --------------
Revenues:
Lots with roads only
Builder lots (serviced)
Less estimated uncollectible sales
------------- -------------- --------------
Net homesite sales
------------- -------------- --------------
Commercial/bulk land sales
Timeshare sales
Residential sales
Discount earned on acquired receivables
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
------------- -------------- --------------
Total bargain differential earned
------------- -------------- --------------
Finance income
Operating revenues - subsidiaries 1,176,290
Other revenues 30,321
------------- -------------- --------------
Total revenues 1,206,611
------------- -------------- --------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales
------------- -------------- --------------
Total cost of sales
------------- -------------- --------------
Expenses:
Selling expenses
Property taxes 12,372
General and administrative expenses
Operating expenses - subsidiaries 1,010,521 356
Other expenses
Depreciation 52,423
Interest expense 17,524
------------- -------------- --------------
Total expenses 1,092,840 356
------------- -------------- --------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 113,771 (356)
Provision for (reduction) income taxes:
Current 16,800 (100)
Deferred (13,800) 100
------------- -------------- --------------
3,000
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 110,771 (356)
Minority interest (884) 71
------------- -------------- --------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 109,887 (285)
Equity in earnings of subsidiaries
------------- -------------- --------------
Net income (loss) 109,887 (285)
R/E (deficit) begin of period (64,253) 28,047
Dividends from (advances to) subs (28,047)
------------- -------------- --------------
R/E (deficit) end of period 45,634 (285)
============= ============== ==============
TOTAL OTHER
LEHIGH
CORPORATION
SUBSIDIARIES
--------------
Revenues:
Lots with roads only
Builder lots (serviced)
Less estimated uncollectible sales
--------------
Net homesite sales
--------------
Commercial/bulk land sales
Timeshare sales
Residential sales
Discount earned on acquired receivables
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
--------------
Total bargain differential earned
--------------
Finance income
Operating revenues - subsidiaries 1,908,936
Other revenues 30,321
--------------
Total revenues 1,939,257
--------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales
--------------
Total cost of sales
--------------
Expenses:
Selling expenses
Property taxes 14,722
General and administrative expenses
Operating expenses - subsidiaries 1,525,797
Other expenses
Depreciation 70,502
Interest expense 26,189
--------------
Total expenses 1,637,210
--------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 302,047
Provision for (reduction) income taxes:
Current (6,800)
Deferred 51,300
--------------
44,500
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 257,547
Minority interest (59,666)
--------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 197,881
Equity in earnings of subsidiaries
--------------
Net income (loss) 197,881
R/E (deficit) begin of period (2,577,234)
Dividends from (advances to) subs (28,047)
--------------
R/E (deficit) end of period (2,407,400)
==============
Exhibit A-2
Page 9 of 10
OTHER FLORIDA SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
INTERLACHEN
LAKES SUNDOWNER
ESTATES PROPERTIES, INC.
-------------- --------------- -------------
ASSETS
Cash and cash equivalents 32,806 18,615
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 145,712 100,604
Timeshare
Commercial notes
-------------- --------------- -------------
Total contracts receivable-postacq 145,712 100,604
-------------- --------------- -------------
Contracts receivable-preacquisition (337,010) (279,018)
Due from affiliates:
Water and wastewater connections
Tax share
Other 857,872 774,543
-------------- --------------- -------------
Total due from affiliates 857,872 774,543
-------------- --------------- -------------
Investments/advances to subsidiaries
Property and equipment
Less accum depreciation
Less bargain differential-PP&E
-------------- --------------- -------------
Net property and equipment
-------------- --------------- -------------
Land, land improvements and CIP 60,659 63,424
Less bargain differential-land
-------------- --------------- -------------
Net land, land improvements 60,659 63,424
-------------- --------------- -------------
Investment in joint venture
Other assets 325,000 261,900
-------------- --------------- -------------
1,085,039 940,068
============== =============== =============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 8,495
Customer Deposits 1,100 5,187
Accrued expenses:
Real estate taxes 51,708 54,364
Other 725 812
-------------- --------------- -------------
Total accrued expenses 52,433 55,176
-------------- --------------- -------------
Due to affiliates:
Utility fee credit
Tax share 96,200 72,600
Other
-------------- --------------- -------------
Total due to affiliates 96,200 72,600
-------------- --------------- -------------
Contingency reserves
Deferred income
Income taxes payable
Notes payable
Minority interest
Common stock and R/E (deficit):
Common stock 20,000 500
Capital in excess of par value 2,089,677 7,249,487
Retained earnings (deficit) (1,182,866) (6,442,882)
-------------- --------------- -------------
Total C/S and R/E (deficit) 926,811 807,105
-------------- --------------- -------------
1,085,039 940,068
============== =============== =============
COMBINED
ELIMINATIONS WEBB GROUP
-------------- --------------
ASSETS
Cash and cash equivalents 51,421
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec
Contracts receivable-postacquisition:
Homesites, net of allowance for cancels 246,316
Timeshare
Commercial notes
-------------- --------------
Total contracts receivable-postacq 246,316
-------------- --------------
Contracts receivable-preacquisition (616,028)
Due from affiliates:
Water and wastewater connections
Tax share
Other 1,632,415
-------------- --------------
Total due from affiliates 1,632,415
-------------- --------------
Investments/advances to subsidiaries
Property and equipment
Less accum depreciation
Less bargain differential-PP&E
-------------- --------------
Net property and equipment
-------------- --------------
Land, land improvements and CIP 124,083
Less bargain differential-land
-------------- --------------
Net land, land improvements 124,083
-------------- --------------
Investment in joint venture
Other assets 586,900
-------------- --------------
2,025,107
============== ==============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 8,495
Customer Deposits 6,287
Accrued expenses:
Real estate taxes 106,072
Other 1,537
-------------- --------------
Total accrued expenses 107,609
-------------- --------------
Due to affiliates:
Utility fee credit
Tax share 168,800
Other
-------------- --------------
Total due to affiliates 168,800
-------------- --------------
Contingency reserves
Deferred income
Income taxes payable
Notes payable
Minority interest
Common stock and R/E (deficit):
Common stock 20,500
Capital in excess of par value 9,339,164
Retained earnings (deficit) (7,625,748)
-------------- --------------
Total C/S and R/E (deficit) 1,733,916
-------------- --------------
2,025,107
============== ==============
Exhibit A-2
Page 10 of 10
OTHER FLORIDA SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-94
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-94
INTERLACHEN
LAKES SUNDOWNER
ESTATES PROPERTIES, INC.
-------------- --------------- -------------
Revenues:
Lots with roads only
Builder lots (serviced)
Less estimated uncollectible sales
-------------- --------------- -------------
Net homesite sales
-------------- --------------- -------------
Commercial/bulk land sales
Timeshare sales
Residential sales
Discount earned on acquired receivables 169,836 183,769
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
-------------- --------------- -------------
Total bargain differential earned
-------------- --------------- -------------
Finance income 23,057 17,995
Operating revenues - subsidiaries 209,983 108,109
Other revenues
-------------- --------------- -------------
Total revenues 402,876 309,873
-------------- --------------- -------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales
-------------- --------------- -------------
Total cost of sales
-------------- --------------- -------------
Expenses:
Selling expenses 14,129 12,552
Property taxes 15,461 7,394
General and administrative expenses 2,861 1,513
Operating expenses - subsidiaries 9,883 8,184
Other expenses
Depreciation
Interest expense
-------------- --------------- -------------
Total expenses 42,334 29,643
-------------- --------------- -------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 360,542 280,230
Provision for (reduction) income taxes:
Current 96,200 72,600
Deferred (96,200) (72,600)
-------------- --------------- -------------
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 360,542 280,230
Minority interest
-------------- --------------- -------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 360,542 280,230
Equity in earnings of subsidiaries
-------------- --------------- -------------
Net income (loss) 360,542 280,230
R/E (deficit) begin of period (1,543,408) (6,723,112)
Dividends from (advances to) subs
-------------- --------------- -------------
R/E (deficit) end of period (1,182,866) (6,442,882)
============== =============== =============
COMBINED
ELIMINATIONS WEBB GROUP
-------------- --------------
Revenues:
Lots with roads only
Builder lots (serviced)
Less estimated uncollectible sales
-------------- --------------
Net homesite sales
-------------- --------------
Commercial/bulk land sales
Timeshare sales
Residential sales
Discount earned on acquired receivables 353,605
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
-------------- --------------
Total bargain differential earned
-------------- --------------
Finance income 41,052
Operating revenues - subsidiaries 318,092
Other revenues
-------------- --------------
Total revenues 712,749
-------------- --------------
Cost of Sales:
Lots with roads only
Builder lots (serviced)
Commercial/bulk land sales
Timeshare sales
Residential sales
-------------- --------------
Total cost of sales
-------------- --------------
Expenses:
Selling expenses 26,681
Property taxes 22,855
General and administrative expenses 4,374
Operating expenses - subsidiaries 18,067
Other expenses
Depreciation
Interest expense
-------------- --------------
Total expenses 71,977
-------------- --------------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 640,772
Provision for (reduction) income taxes:
Current 168,800
Deferred (168,800)
-------------- --------------
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries 640,772
Minority interest
-------------- --------------
Net income (loss) before equity in
earnings of consolidated subsidiaries 640,772
Equity in earnings of subsidiaries
-------------- --------------
Net income (loss) 640,772
R/E (deficit) begin of period (8,266,520)
Dividends from (advances to) subs
-------------- --------------
R/E (deficit) end of period (7,625,748)
============== ==============
HEATER UTILITIES, INC. Exhibit A-3
CONSOLIDATED BALANCE SHEET Page 1 of 3
FOR THE YEAR ENDED DECEMBER 31, 1994
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER
ASSETS
PROPERTY AND EQUIPMENT
Utility plant $31,036,581 $7,917,611 $6,267,067 $1,269,767
Non utility property 33,295
----------- ----------- ----------- -----------
31,069,876 7,917,611 6,267,067 1,269,767
----------- ----------- ----------- -----------
Less:
Acquisition adjustment (net) (3,581,776) 98,241 74,028 (116,503)
Accumulated depreciation (8,365,964) (1,849,442) (1,960,582) (302,625)
----------- ----------- ----------- -----------
(11,947,740) (1,751,201) (1,886,554) (419,128)
----------- ----------- ----------- -----------
INVESTMENTS
Other Investments 618,841
Investments In Subs. 3,491,542
----------- ----------- ----------- -----------
4,110,383 0 0 0
----------- ----------- ----------- -----------
CURRENT ASSETS
Cash 448,528 2,831 17,576 7473
Working funds 9,167 750
Investment in CD's 256,316 100,221 20,000 50,000
Customer accounts receivable 548,166 211,163 152,231 35,674
less allowances for doubtful accounts (21,399) (6,292) (1,677) (1,975)
Notes receivable 4,186,269 8,253
Other accounts receivable 186,998 808 9,139 529
Accts. receivable from Assoc. Companies 254,339
Installation materials and supplies 300,737 37,160 27,490 11,946
Prepaid expenses 902,035 183,475 182,467 54,414
Other current and accrued assets 950
----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS 7,071,156 529,366 416,430 158,811
----------- ----------- ----------- -----------
REGULATORY ASSETS 1,320 5,623
TOTAL ASSETS $30,303,674 $6,695,776 $4,798,263 $1,015,073
=========== =========== =========== ===========
ELIMINATIONS TOTAL
ASSETS
PROPERTY AND EQUIPMENT
Utility plant $46,491,025
Non utility property 33,295
----------- -----------
0 46,524,320
----------- -----------
Less:
Acquisition adjustment (net) (3,526,010)
Accumulated depreciation (12,478,612)
----------- -----------
0 (16,004,622)
----------- -----------
INVESTMENTS
Other Investments 618,841
Investments In Subs. (3,491,542) 0
----------- -----------
(3,491,542) 618,841
----------- -----------
CURRENT ASSETS
Cash 476,408
Working funds 9,917
Investment in CD's 426,537
Customer accounts receivable 947,235
less allowances for doubtful accounts (31,342)
Notes receivable (4,186,269) 8,253
Other accounts receivable (0) 197,474
Accts. receivable from Assoc. Companies (254,339) 0
Installation materials and supplies 377,332
Prepaid expenses 1,322,391
Other current and accrued assets 950
----------- -----------
TOTAL CURRENT ASSETS (4,440,608) 3,735,154
----------- -----------
REGULATORY ASSETS 6,943
TOTAL ASSETS ($7,932,150) $34,880,636
=========== ===========
HEATER UTILITIES, INC. Exhibit A-3
CONSOLIDATED BALANCE SHEET Page 2 of 3
FOR THE YEAR ENDED DECEMBER 31, 1994
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Capital stock, par value $1.00 per
share--authorized 13,500 shares,
issued and outstanding 13,500
shares $13,500 $1,000 $7,500 $1,000
Additional paid in capital 5,826,750 2,241,745 212,024 456,430
Retained Earnings 2,618,655 (332,365) 746,668 (99,773)
----------- ----------- ----------- -----------
8,458,905 1,910,380 966,193 357,656
LONG-TERM DEBT 12,202,600 2,527,186 1,181,072 478,012
CURRENT LIABILITIES
Accounts payable to vendors 234,750 44,979 41,830 1,483
Accts. payable to Assoc. Companies (70,959) 221,293 58,349
Accounts payable to MP&L 387,706 323 665 121
Income taxes payable - Federal 161,067 (16,854) (12,533) (2,806)
Income taxes payable - State (5,845) 4,744 (3,970) (1,219)
Taxes other than income 177,924 97,168 28,893 20,554
Customer deposits 72,848 117 146,151 9
Other accrued expenses 484,842 21,890 105,861 1,638
Current portion of long-term debt 15,457
----------- ----------- ----------- -----------
TOTAL CURRENT LIABILITIES 1,528,751 81,407 528,190 78,130
C.I.A.C. 8,897,717 2,124,971 2,311,368 63,701
ACCUM. DEFERRED INC. TAXES (790,272) 21,210 (190,903) 25,980
REGULATORY LIABILITIES 5,974 30,622 2,344 11,594
----------- ----------- ----------- -----------
$30,303,674 $6,695,776 $4,798,263 $1,015,073
=========== =========== =========== ===========
ELIMINATIONS TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Capital stock, par value $1.00 per
share--authorized 13,500 shares,
issued and outstanding 13,500
shares ($9,500) $13,500
Additional paid in capital (2,910,199) 5,826,750
Retained Earnings (571,843) 2,361,342
----------- -----------
(3,491,542) 8,201,592
LONG-TERM DEBT (4,186,269) 12,202,600
CURRENT LIABILITIES
Accounts payable to vendors 323,043
Accts. payable to Assoc. Companies (208,683) (0)
Accounts payable to MP&L 388,815
Income taxes payable - Federal (45,656) 83,218
Income taxes payable - State (6,290)
Taxes other than income 324,539
Customer deposits 219,125
Other accrued expenses 614,231
Current portion of long-term debt 15,457
----------- -----------
TOTAL CURRENT LIABILITIES (254,339) 1,962,138
C.I.A.C. 13,397,757
ACCUM. DEFERRED INC. TAXES (933,985)
REGULATORY LIABILITIES 50,534
----------- -----------
($7,932,150) $34,880,636
=========== ===========
HEATER UTILITIES, INC. Exhibit A-3
CONSOLIDATED STATEMENT OF INCOME Page 3 of 3
FOR THE YEAR ENDED DECEMBER 31, 1994
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER
Operating Revenues
Water $5,131,515 $736,758 $1,324,611 $336,205
Sewer 464,547 532,007
Other 115,777 89,126 72,680 29,602
---------- ---------- ---------- ----------
Total Operating Revenues 5,711,839 1,357,891 1,397,291 365,807
---------- ---------- ---------- ----------
Operating Revenue Deductions
Operations and Maintenance 2,006,369 473,638 536,752 152,908
Administrative and General 1,143,402 229,702 392,854 117,755
Taxes Other Than Income 306,873 38,320 81,518 13,236
Property Taxes 110,105 69,800 18,050 18,167
Depreciation 904,075 173,322 161,030 47,947
---------- ---------- ---------- ----------
Total Operating Revenue Deductions 4,470,824 984,781 1,190,204 350,013
---------- ---------- ---------- ----------
Income From Operations 1,241,015 373,110 207,087 15,794
---------- ---------- ---------- ----------
Other Income
Interest Income 85,036 26,401 13,611 6578
Other Non-Utility income 141,269 35,846 40,261 2436
Other Income Deductions
Interest Expense 695,856 220,534 110,755 41,743
Other Non-Utility Deductions 32,534 1,734 3,500 89
---------- ---------- ---------- ----------
Total Other Income and Income
Deductions 502,084 160,022 60,382 32,817
---------- ---------- ---------- ----------
Net Income (Loss) Before Income Taxes 738,931 213,088 146,705 (17,023)
Estimated Income Taxes 292,585 78,868 39,470 (5,158)
Net Profit (Loss) $446,346 $134,220 $107,235 ($11,865)
========== ========== ========== ==========
TOTAL
Operating Revenues
Water $7,529,090
Sewer 996,554
Other 307,184
-------------
Total Operating Revenues 8,832,828
-------------
Operating Revenue Deductions
Operations and Maintenance 3,169,667
Administrative and General 1,883,713
Taxes Other Than Income 439,947
Property Taxes 216,122
Depreciation 1,286,373
-------------
Total Operating Revenue Deductions 6,995,822
-------------
Income From Operations 1,837,006
-------------
Other Income
Interest Income 131,626
Other Non-Utility income 219,813
Other Income Deductions
Interest Expense 1,068,888
Other Non-Utility Deductions 37,856
-------------
Total Other Income and Income
Deductions 755,305
-------------
Net Income (Loss) Before Income Taxes 1,081,701
Estimated Income Taxes 405,764
Net Profit (Loss) $675,937
=============
RENDFIELD CONSOLIDATED BALANCE SHEET Exhibit A-4
DECEMBER 1994 Page 1 of 2
CONSOLIDATED ELIMINATIONS REND UTIL
------------- ------------ ------------- ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 355,303 0 355,303 0
ACCUM DEPR-NONUTIL-600 4,060- 0 4,060- 0
OTHER -950 0 0 0 0
SECURITIES INVEST - 900 0 0 0 0
EQUITY INVESTMENTS - 910 0 0 0 0
INVEST IN SUBSIDIARIES-200 0 564,629 564,629- 0
------------- ------------ ------------- ------------
TOTAL NONU PROP & INVEST 351,243 564,629 213,386- 0
------------- ------------ ------------- ------------
CURRENT ASSETS (A)
CASH
CASH -110 65,587 0 63,475 2,113
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 2,824,247 0 0 2,824,247
ACCTS REC FROM ASSOC -432 4,049,695 8,351,039- 8,607,900 3,792,834
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 6,939,529 8,351,039- 8,671,375 6,619,194
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES H-254 1,988,945 0 61,864 1,927,081
OTHER -200 9,848 0 9,848 0
------------- ------------ ------------- ------------
TOTAL DEFERRED DEDITS 1,998,793 0 71,712 1,927,081
------------- ------------ ------------- ------------
TOTAL ASSETS 9,289,565 7,786,410- 8,529,701 8,546,275
============= ============ ============= ============
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP-090 4,487,500 6,397,500- 4,487,500 6,397,500
CAPITAL STOCK EXP-300 0 0 0 0
RETAINED EARNINGS-400 7,464,963- 6,962,129 7,464,963- 6,962,129-
LONG-TERM DEBT D-700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CAPITALIZATION 2,977,463- 564,629 2,977,463- 564,629-
------------- ------------ ------------- ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 3,551,180 0 0 3,551,180
ACCOUNTS PAYABLE 50,890 0 50,890 1
ACCOUNTS PAY TO ASSOC-322 7,692,734 8,351,039- 11,485,569 4,558,204
ACCRUED TAXES
FEDERAL INCOME TAXES -401 59,931 0 12,668- 72,599
STATE INCOME TAXES -450 265,750- 0 25,072- 240,678-
OTHER ACCRUED TAXES -500 7,731 0 7,731 0
MISC CURRENT LIAB -930 500,000 0 0 500,000
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIE 11,596,716 8,351,039- 11,506,450 8,441,306
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES F-100 670,312 0 714 669,598
------------- ------------ ------------- ------------
TOTAL LIAB & CAPITALIZATION 9,289,565 7,786,410- 8,529,701 8,546,275
============= ============ ============= ============
RENDFIELD CONSOLIDATED STATEMENT OF INCOME Exhibit A-4
YEAR TO DATE AS OF DECEMBER 1994 Page 2 of 2
CONSOLIDATED ELIMINATIONS REND UTIL
------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 0 3,180,778 3,180,778- 0
ALLOW FOR FUNDS-EQUITY -100 0 0 0 0
INVESTMENT INCOME -300 194,232 0 905 193,328
EARNINGS FROM REACHALL -542 5,166,109- 0 0 5,166,109-
ALLOW-GAIN ON CAP SALE -543 0 0 0 0
OTHER MISCELLANEOUS INC-500 297,141- 0 99,223- 197,919-
INCOME TAXES - INVEST -400 80,357- 0 375- 79,982-
- MISC -600 2,572,470 0 166,158 2,406,312
------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 2,776,905- 3,180,778 3,113,313- 2,844,370-
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
INCOME BEFORE INTEREST CHARGE 2,776,905- 3,180,778 3,113,313- 2,844,370-
------------ ------------ ------------ ------------
OTHER INTEREST EXPENSE 630,680 0 294,272 336,407
------------ ------------ ------------ ------------
NET INCOME 3,407,585- 3,180,778 3,407,585- 3,180,777-
============ ============ ============ ============
SYNERTEC CONSOLIDATED BALANCE SHEET Exhibit A-5
DECEMBER 1994 Page 1 of 2
CONSOLIDATED ELIMINATIONS SYNR CNSR
------------- ------------ ------------- ------------
ASSETS
CURRENT ASSETS (A)
CASH -110 8,767,934 2 539,087 8,228,847
RESTRICTED CASH -115 1 0 0 1
ACCOUNTS RECEIVABLE
MINNESOTA POWER -433 4,472,829 0 4,472,829 0
SUP REC FIB CORP -436 306,181 10,177,759- 6,318,821 4,165,118
OTHER -409 14,016,242 0 52,366 13,963,875
NOTES RECEIVABLE - SRF -310 0 1- 0 0
INVENTORY -610 3,738,000 0 0 3,738,000
PREPAYMENTS -700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 31,301,187 10,177,758- 11,383,103 30,095,841
INVESTMENTS IN SUB -N200 0 24,273,484- 24,273,484 0
LEASE RECEIVABLE -N950 3,382,940 0 795,940 2,587,000
DEFERRED COST -H200 42,521 0 42,521 0
CWIP AND OTH ASSETS -N100-600 70,074,498 328,184- 16,911 70,385,771
------------- ------------ ------------- ------------
TOTAL ASSETS 104,801,146 34,779,426- 36,511,959 103,068,612
============= ============ ============= ============
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES (L)
ACCOUNTS PAYABLE
MINNESOTA POWER -321 3,377,652 0 3,377,651 0
SUP REC FIB CORP -322 1- 10,177,760- 3,858,938 6,318,821
OTHER -310 7,899,920 0 0 7,899,920
CURRENT MATURITIES -200 4,026,348 0 645,313 3,381,035
NOTES PAY-LSPI FIBER -100 0 1- 0 0
NOTES PAYABLE - MP -101 177,958 0 177,958 0
ACC INCOME TAXES -401-450 976,276- 134,696- 45,340- 796,239-
ACCRUED OTHER TAXES -500 41,260- 0 0 41,260-
ACCRUED INT PAY -610 0 0 0 0
ACCRUED OTH LIAB -930 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 14,464,341 10,312,457- 8,014,520 16,762,277
LONG TERM DEBT -D700 39,343,244 0 0 39,343,244
DEFFERED INCOME TAXES -F100 4,847,907 0 3,113 4,844,794
MINORITY INTEREST -F900 18,333,476 0 0 18,333,476
------------- ------------ ------------- ------------
TOTAL LIABILITIES 76,988,968 10,312,457- 8,017,633 79,283,791
------------- ------------ ------------- ------------
STOCKHOLDER'S EQUITY
COMMON STOCK, WITHOUT PAR
5000 SHARES AUTHORIZED
ISSUED AND OUTST -C090 28,231,266 23,302,655- 28,231,266 23,302,655
RET EARNINGS -C400-INCELIM 419,088- 1,164,314- 263,060 482,166
------------- ------------ ------------- ------------
TOTAL STOCKHOLDER'S EQ 27,812,178 24,466,969- 28,494,326 23,784,821
------------- ------------ ------------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 104,801,146 34,779,426- 36,511,959 103,068,612
============= ============ ============= ============
SYNERTEC CONSOLIDATED STATEMENT OF INCOME Exhibit A-5
YEAR TO DATE AS OF DECEMBER 1994 Page 2 of 2
CONSOLIDATED ELIMINATIONS SYNR CNSR
------------ ------------ ------------ ------------
INCOME
PULP REVENUE -T520 52,856,915 0 0 52,856,915
EQUITY IN SUB EARNINGS-T200 0 717,101- 717,101 0
INTEREST -T300 588,265 0 27,739 560,526
MISCELLANEOUS -T535 403,576 0 0 403,576
------------ ------------ ------------ ------------
TOTAL INCOME 53,848,756 717,101- 744,840 53,821,017
------------ ------------ ------------ ------------
EXPENSES
PULP VARIABLE COSTS -T539 37,315,000 0 0 37,315,000
PULP FIXED COSTS -T540 7,375,000 0 0 7,375,000
DEPRECIATION -T595 4,459,984 10,000- 9,984 4,460,000
LABOR -T563 648,005 0 387,761 260,244
INTEREST -I100-I340 3,364,785 0 8 3,364,777
PROPERTY TAXES -T570 312,000 0 0 312,000
MISCELLANEOUS -T562 665,815 0 258,088 407,728
------------ ------------ ------------ ------------
TOTAL EXPENSES 54,140,589 10,000- 655,841 53,494,749
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES 291,833- 707,101- 88,999 326,268
MINORITY INTEREST -T511 1,016,000 0 0 1,016,000
INC TAX (EXP) BENEF -T401-420 348,663- 4,000- 262,504 607,167-
T610 620 640 650 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME (LOSS) 375,504 711,101- 351,503 735,101
============ ============ ============ ============
SUPERIOR RECYCLED FIBER CONSOLIDATED BALANCE SHEET Exhibit A-6
DECEMBER 1994 Page 1 of 2
CONSOLIDATED ELIMINATIONS SRFC SRJV
------------- ------------ ------------- ------------
ASSETS
CURRENT ASSETS (A)
CASH -110 8,228,847 0 1,847 8,227,000
RESTRICTED CASH -115 1 0 1 0
ACCOUNTS RECEIVABLE
ASSOCIATED COMPANIES -436 4,165,118 769,874- 4,165,118 769,874
OTHER -409 13,963,875 0 13,540,980 422,895
NOTES RECEIVABLE -310 0 0 0 0
INVENTORY -610 3,738,000 0 0 3,738,000
PREPAYMENTS -700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 30,095,841 769,874- 17,707,946 13,157,769
INVEST IN JOINT VENTURE -N200 0 62,028,641- 62,028,641 0
DEFERRED COST -H200 0 0 0 0
NONUTILITY PLANT -N100 75,066,771 830,229- 0 75,897,000
ACCUMULATED DEPRECIATION-N600 4,681,000- 0 0 4,681,000-
OTHER ASSETS N-N950 2,587,000 0 0 2,587,000
------------- ------------ ------------- ------------
TOTAL ASSETS 103,068,612 63,628,744- 79,736,587 86,960,769
============= ============ ============= ============
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES (L)
ACCOUNTS PAYABLE
ASSOC COMPANIES -322 6,318,821 769,873- 7,088,694 0
OTHER -310 7,899,920 0 1,301,268 6,598,652
CURRENT MATURITIES -200 3,381,035 0 3,381,035 0
NOTES PAYABLE -100 0 0 0 0
ACCR INC TAXES -401-450 796,239- 341,567- 454,672- 0
ACCRUED OTHER TAXES -500 41,260- 0 41,260- 0
ACCRUED INTEREST -610 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 16,762,277 1,111,440- 11,275,065 6,598,652
LONG TERM DEBT -D700 39,343,244 0 39,343,244 0
DEFERRED INCOME TAXES -F100 4,844,794 0 4,844,794 0
MINORITY INTEREST -F900 18,333,476 18,333,476 0 0
OTH DEFERRED CREDITS -F920 0 0 0 0
------------- ------------ ------------- ------------
TOTAL LIABILITIES 79,283,791 17,222,036 55,463,103 6,598,652
------------- ------------ ------------- ------------
STOCKHOLDER'S EQUITY
COMMON STOCK, WITHOUT PAR,
50 SHARES ISSUED
AND OUTSTANDING -C090 23,302,655 85,540,117- 23,302,655 85,540,117
RET EARNINGS -C400-INCELIM 482,166 4,689,337 970,829 5,178,000-
------------- ------------ ------------- ------------
TOTAL STOCKHOLDER'S EQUITY 23,784,821 80,850,780- 24,273,484 80,362,117
------------- ------------ ------------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 103,068,612 63,628,744- 79,736,587 86,960,769
============= ============ ============= ============
SUPERIOR RECYCLED FIBER CONSOLIDATED STATEMENT OF INCOME Exhibit A-6
YEAR TO DATE AS OF DECEMBER 1994 Page 2 of 2
CONSOLIDATED ELIMINATIONS SRFC SRJV
------------ ------------ ------------ ------------
INCOME
PULP REVENUE -T520 52,856,915 34,247,223- 42,368,138 44,736,000
EQUITY IN JV EARNINGS -T200 0 3,474,000 3,474,000- 0
INTEREST -T300 560,526 0 294,526 266,000
MISCELLANEOUS -T535 403,576 0 403,576 0
------------ ------------ ------------ ------------
TOTAL INCOME 53,821,017 30,773,223- 39,592,240 45,002,000
------------ ------------ ------------ ------------
EXPENSES
COST OF PULP -T565 1- 34,247,223- 34,247,223 0
PULP VARIABLE COSTS -T539 37,315,000 0 0 37,315,000
PULP FIXED COSTS -T540 7,375,000 0 0 7,375,000
DEPRECIATION -T590,T595 4,460,000 30,000- 0 4,490,000
LABOR -T563 260,244 0 260,244 0
INTEREST -I100 3,364,777 0 3,364,777 0
PROPERTY TAXES -T570 312,000 0 0 312,000
MISCELLANEOUS -T562 407,728 0 407,728 0
------------ ------------ ------------ ------------
TOTAL EXPENSES 53,494,748 34,277,223- 38,279,972 49,492,000
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES 326,269 3,504,000 1,312,268 4,490,000-
MINORITY INTEREST -T511 1,016,000 1,016,000 0 0
INCOME TAX (EXPENSE) BENEFIT 607,167- 12,000- 595,167- 0
-T410,420,610,620
------------ ------------ ------------ ------------
NET INCOME (LOSS) 735,102 4,508,000 717,101 4,490,000-
============ ============ ============ ============
UPPER MINNESOTA PROPERTIES CONSOLIDATED BALANCE SHEET Exhibit A-7
DECEMBER 1994 Page 1 of 2
CONSOLIDATED ELIMINATIONS UMPI IRV MEAD
------------- ------------ ------------- ------------ ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 4,169,695 0 0 4,169,695 0
ACCUM DEPR-NONUTIL-600 69,828- 0 0 53,422- 16,406-
OTHER -950 740,808 0 0 0 740,808
SECURITIES INVEST - 900 0 0 0 0 0
INVEST IN SUBSIDIARIES-200 0 2,666,581- 2,666,581 0 0
------------- ------------ ------------- ------------ ------------
TOTAL NONU PROP & INVEST 4,840,675 2,666,581- 2,666,581 4,116,273 724,402
------------- ------------ ------------- ------------ ------------
CURRENT ASSETS (A)
CASH -110 56,818 0 100 24,742 31,976
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0 0
OTHER ACCOUNTS REC -409 11,318 0 0 10,892 426
ACCTS REC FROM ASSOC -432 208,674 221,574- 229,007 190,040 11,200
PREPAYMENTS -700 10,953 0 0 10,953 0
------------- ------------ ------------- ------------ ------------
TOTAL CURRENT ASSETS 287,763 221,574- 229,107 236,627 43,602
------------- ------------ ------------- ------------ ------------
ACCUM DEF INC TAXES H-254 889,954 0 0 841,507 48,447
OTHER -200 74,184 0 0 64,536 9,647
------------- ------------ ------------- ------------ ------------
TOTAL DEFERRED DEBITS 964,138 0 0 906,043 58,094
------------- ------------ ------------- ------------ ------------
TOTAL ASSETS 6,092,576 2,888,155- 2,895,688 5,258,943 826,098
============= ============ ============= ============ ============
CAPITALIZATION
COMMON STK&PD IN CAP-090 2,124,189 2,134,189- 2,124,189 2,099,074 35,115
RETAINED EARNINGS-400 499,331 532,392- 499,331 501,767 30,625
LONG-TERM DEBT D-700 2,765,896 0 0 2,103,830 662,066
------------- ------------ ------------- ------------ ------------
TOTAL CAPITALIZATION 5,389,416 2,666,581- 2,623,520 4,704,671 727,806
------------- ------------ ------------- ------------ ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 296,864 0 0 239,297 57,567
ACCOUNTS PAYABLE 10,368 0 0 8,168 2,200
ACCOUNTS PAY TO ASSOC-322 76,518 221,574- 277,758 7,496 12,838
ACCRUED TAXES
FEDERAL INCOME TAXES -401 10,760- 0 170- 9,750- 840-
STATE INCOME TAXES -450 22,800- 0 5,420- 13,640- 3,740-
OTHER ACCRUED TAXES -500 130 0 0 0 130
INTEREST ACCRUED - 610 66,961 0 0 41,882 25,079
------------- ------------ ------------- ------------ ------------
TOTAL CURRENT LIABILITIES 417,281 221,574- 272,168 273,453 93,234
------------- ------------ ------------- ------------ ------------
ACCUM DEF INC TAXES F-100 284,020 0 0 280,820 3,200
MINORITY INTEREST F-900 1,858 0 0 0 1,858
------------- ------------ ------------- ------------ ------------
TOTAL LIAB & CAPITALIZATION 6,092,575 2,888,155- 2,895,688 5,258,944 826,098
============= ============ ============= ============ ============
UPPER MINNESOTA PROPERTIES CONSOLIDATED STATEMENT OF INCOME Exhibit A-7
YEAR TO DATE AS OF DECEMBER 1994 Page 2 of 2
CONSOLIDATED ELIMINATIONS UMPI IRV MEAD
------------ ------------ ------------ ------------ ------------
INCOME
EQUITY IN SUB EARNS -T200 0 532,392- 532,392 0 0
RENTAL- RESIDENTIAL -T700 102,409 0 0 61,130 41,279
MISCELLANEOUS -T710 2,365 0 0 1,696 669
INVESTMENT -T300 5,944 0 0 5,944 0
------------ ------------ ------------ ------------ ------------
. 110,718 532,392- 532,392 68,770 41,948
------------ ------------ ------------ ------------ ------------
EXPENSES
MAINTENANCE -T800 9,563 0 0 5,161 4,402
UTILITIES -T830 18,733 0 0 11,957 6,777
INSURANCE -T840 7,000 0 0 4,598 2,403
DEPRECIATION -T595 74,589 0 0 57,424 17,164
INTEREST -I100 110,529 0 0 78,824 31,705
OPERATIONS -T860 26,714 0 0 20,121 6,593
PROPERTY TAXES -T850 2,641 0 0 2,641 0
ADMINISTRATIVE -T531 3,060 0 2,241 619 200
LABOR -T532 60,172 0 53,102 3,936 3,134
------------ ------------ ------------ ------------ ------------
. 313,001 0 55,343 185,281 72,378
------------ ------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES
AND MINORITY INTEREST 202,283- 532,392- 477,049 116,511- 30,430-
INCOME TAX (EXPENSE) BENEFIT 702,207 0 22,903 618,277 61,027
MINORITY INTEREST 27 0 0 0 27
------------ ------------ ------------ ------------ ------------
NET INCOME 499,951 532,392- 499,952 501,766 30,624
============ ============ ============ ============ ============
MINNESOTA PULP CONSOLIDATED BALANCE SHEET Exhibit A-8
DECEMBER 1994 Page 1 of 2
CONSOLIDATED ELIMINATIONS MNPI MNP2
------------- ------------ ------------- ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 0 0 0 0
ACCUM DEPR-NONUTIL-600 0 0 0 0
SECURITIES INVEST - 900 0 0 0 0
EQUITY INVESTMENTS - 910 10,516,000 0 210,320 10,305,680
INVEST IN SUBSIDIARIES-200 0 9,857,778- 9,857,778 0
------------- ------------ ------------- ------------
TOTAL NONU PROP & INVEST 10,516,000 9,857,778- 10,068,098 10,305,680
------------- ------------ ------------- ------------
CURRENT ASSETS (A)
CASH -110 26,234 0 26,234 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 0 0 0 0
ACCTS REC FROM ASSOC -432 725,865 656,339- 1,028,523 353,680
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 752,099 656,339- 1,054,757 353,680
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES H-254 0 0 0 0
OTHER -200 0 0 0 0
------------- ------------ ------------- ------------
TOTAL DEFERRED DEBITS 0 0 0 0
------------- ------------ ------------- ------------
TOTAL ASSETS 11,268,099 10,514,117- 11,122,855 10,659,360
============= ============ ============= ============
CAPITALIZATION
COMMON STK&PD IN CAP-090 10,052,099 9,690,994- 10,052,100 9,690,993
RETAINED EARNINGS-400 84,244 166,784- 84,244 166,785
LONG-TERM DEBT D-700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CAPITALIZATION 10,136,343 9,857,778- 10,136,344 9,857,778
------------- ------------ ------------- ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 0 0 0 0
ACCOUNTS PAYABLE 27,885 0 5,322- 33,208
ACCOUNTS PAY TO ASSOC-322 376,104 656,339- 729,785 302,658
ACCRUED TAXES
FEDERAL INCOME TAXES -401 51,943 0 6,984- 58,927
STATE INCOME TAXES -450 92,396- 0 2,788- 89,608-
OTHER ACCRUED TAXES -500 0 0 0 0
INTEREST ACCRUED - 610 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 363,536 656,339- 714,691 305,185
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES F-100 768,219 0 271,822 496,397
------------- ------------ ------------- ------------
TOTAL LIAB & CAPITALIZATION 11,268,098 10,514,117- 11,122,857 10,659,360
============= ============ ============= ============
MINNESOTA PULP CONSOLIDATED STATEMENT OF INCOME Exhibit A-8
YEAR TO DATE AS OF DECEMBER 1994 Page 2 of 2
CONSOLIDATED ELIMINATIONS MNPI MNP2
------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 1 166,784- 166,785 0
ALLOW FOR FUNDS-EQUITY -100 0 0 0 0
INVESTMENT INCOME -300 0 0 0 0
EARNINGS FROM LSPI FIBER 543 291,709 0 5,834 285,875
OTHER MISCELLANEOUS INC-500 10,981- 0 9,807- 1,174-
INCOME TAXES - INVEST -400 0 0 0 0
- MISC -600 109,885- 0 8,031 117,916-
------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 170,844 166,784- 170,843 166,785
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
INCOME BEFORE INTEREST CHARGE 170,844 166,784- 170,843 166,785
------------ ------------ ------------ ------------
OTHER INTEREST EXPENSE 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME 170,844 166,784- 170,843 166,785
============ ============ ============ ============
Exhibit A-9
Abbreviations Used In Exhibits
Exhibit A
Minnesota Power & Light Company (MPL)
Superior Water, Light and Power Company (SWL)
Consolidated Topeka Group (CNTG)
Energy Land, Incorporated (ENLD)
Minnesota Paper, Incorporated (MPAP)
Consolidated RendField (CNRD)
BNI Coal, Ltd. (BNI)
Rainy River Energy Corporation (RAIN)
Consolidated Synertec (CNSY)
Lakeview Financial Corporation 1 (LFC1)
Consolidated Upper Minnesota Properties (CNUP)
Minnesota Pulp, Incorporated (MNPI)
Exhibit A-1
Topeka Group Incorporated (Topeka Group)
East L.A. Services Corp. (ELAG)
Fibercore, Incorporated (Fibercore)
Lehigh Acquisition Corporation (LAC)
Heater Utilities, Incorporated (Heater)
Southern States Utilities, Inc. (SSU)
Exhibit A-3
Heater Utilities, Incorporated (Heater Utilities)
Heater of Seabrook, Inc. (Heater of Seabrook)
Brookwood Water Corporation (Brookwood Water Corp.)
Upstate Heater Utilities, Inc. (Upstate Heater)
Exhibit A-4
RendField Land Company, Inc. (REND)
UtilEquip, Incorporated (UTIL)
Exhibit A-5
Synertec, Incorporated (SYNR)
Consolidated Superior Recycled Fiber (CNSR)
Exhibit A-6
Superior Recycled Fiber Corporation (SRFC)
Superior Recycled Fiber Industries Joint Venture (SRJV)
Exhibit A-7
Upper Minnesota Properties, Inc. (UMPI)
Upper Minnesota Properties - Irving, Inc. (IRV)
Upper Minnesota Properties - Meadowlands, Inc. (MEAD)
Exhibit A-8
Minnesota Pulp, Inc. (MNPI)
Minnesota Pulp II, Inc. (MNP2)
OPUR3
1,000
YEAR
DEC-31-1994
JAN-01-1994
DEC-31-1994
PER-BOOK
1,807,798
637,782
61,333
