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 - Sold
Capital Re Corporation Delaware New York, NY Financial Guaranty
Reinsurance
Rainy River Energy Corporation Minnesota Duluth, MN Energy Management
RendField Land Company, Inc. Minnesota Duluth, MN Land Holding
UtilEquip, Incorporated Minnesota Duluth, MN Equipment Manufacturing -
Assets Sold
Synertec, Incorporated Minnesota Duluth, MN Venture Investor in energy
efficiency, pollution
control and energy
-1- conservation activities
Superior Recycled Fiber Minnesota Duluth, MN Pulp Production - Sold
Corporation
Minnesota Pulp, Incorporated Minnesota Duluth, MN Pulp Production
Minnesota Pulp II, Incorporated Minnesota Duluth, MN Pulp Production
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
Meadowlands, Inc. Project
Upper Minnesota Properties- Minnesota Duluth, MN Affordable Housing
Irving, Inc. Project
Topeka Group Incorporated Minnesota Duluth, MN Diversification Activities
Heater Utilities, Incorporated North Carolina Cary, NC Water and Wastewater
Treatment Utility
Heater of Seabrook, Inc. South Carolina Seabrook Island, Water and Wastewater
SC Treatment Utility
Brookwood Water Corporation North Carolina Fayetteville, NC Water Utility
Upstate Heater Utilities, Inc. South Carolina Anderson, SC Water Utility
Southern States Utilities, Inc. Florida Apopka, FL Water and Wastewater
Treatment Utility
Pelican Utililty Company Florida Apopka, FL Inactive
Lehigh Acquisition Corporation Delaware Lehigh Acres, FL Subdivider, Developer
Lehigh Corporation Florida Lehigh Acres, FL Subdivider, Developer
Lehigh Building Supply, Inc. Florida Lehigh Acres, FL Distributive Trades
News-Star Publications, Inc. Florida Lehigh Acres, FL Newspaper Publisher
Lehigh Land and Investment, Inc. Florida Lehigh Acres, FL Real Estate Agent
Cliffside Properties, Inc. California Lehigh Acres, FL Resort Operations
Home at Lehigh, Inc. Florida Lehigh Acres, FL Construction Company
-2-
Interlachen Lake Estates, Inc. Florida Lehigh Acres, FL Subdivider, Developer
Sundowner Properties, Inc. Pennsylvania Lehigh Acres, FL Subdivider, Developer
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, FL Land Management
Enterprise Lehigh Florida Lehigh Acres, FL Subdivider, Developer
East L.A. Services Corp. Florida Lehigh Acres, FL Sanitation Services
FiberCore, Incorporated Minnesota Duluth, MN Fiberoptics - Sold
ADESA Holdings Minnesota Duluth, MN Automobile Auction
Holding
ADESA Corporation Indiana Indianapolis, IN Automobile Auction
Holding
ADESA Auto Transport, Inc. Indiana Moody, AL Automobile Transport
A.D.E. of Birmingham, Inc. Alabama Moody, AL Automobile Auction
ADESA Ohio, Inc. Ohio Cleveland, OH Automobile Auction
Franklin, OH
Auto Dealers Exchange of Tennessee Memphis, TN Automobile Auction
Memphis, Inc.
A.D.E. of Lexington, Inc. Kentucky Lexington, KY Automobile Auction
Auto Dealers Exchange of Massachusetts Acton, MA Automobile Auction
Concord, Inc. Framingham, MA
Greater Buffalo Auto Auction, Inc. New York Akron, NY Automobile Auction
ADESA Indianapolis, Inc. Indiana Indianapolis, IN Automobile Auction
A.D.E. Management Company Indiana Indianapolis, IN Automobile Auction
Holding
ADESA Funding Corporation Indiana Indianapolis, IN Financial Services
A.D.E. of Jacksonville, Inc. Florida Jacksonville, FL Automobile Auction
A.D.E. of Knoxville, Inc. Tennessee Knoxville, TN Automobile Auction
ADESA-Charlotte, Inc. North Carolina Charlotte, NC Automobile Auction
-3-
Automotive Finance Corporation Indiana Indianapolis, IN Financial Services
AFC Funding Corporation Indiana Indianapolis, IN Financial Services
ADESA Austin, Inc. Texas Austin, TX Automobile Auction
Auto Banc Corporation New Jersey Manville, NJ Automobile Remarketing
ADESA New Jersey, Inc. New Jersey Manville, NJ Automobile Auction
ADESA Canada Inc. Quebec Vars, Ontario, Automobile Auction
Canada Holding
3059-0539 Quebec Inc. Quebec St. Eustache, Automobile Auction
Quebec, Canada
3095-1115 Quebec Inc. Quebec St. Eustache, Inactive
Quebec, Canada
Greater Halifax Auto Exchange Nova Scotia Lr. Sackville, Automobile Auction
Incorporated Nova Scotia,
Canada
ADESA-Ottawa, Inc. Ontario Vars, Ontario, Automobile Auction
Canada
ADESA Remarketing Services, Inc. Ontario Vars, Ontario, Automobile Remarketing
Canada
Subsidiary of Minnesota Power & Light Company.
Minnesota Power & Light Company has a 22.1 percent ownership interest
in Capital Re Corporation (Capital Re). Capital Re is an investment
accounted for by the equity method.
A subsidiary of RendField Land Company, Inc., UtilEquip, Incorporated
owned 82.5 percent of Reach All Partnership (Reach All), an equipment
manufacturer in Duluth, MN that was closed in 1995. Reach All was
accounted for by the equity method.
Minnesota Paper, Inc., was a subsidiary of Minnesota Power &
Light Company, and was 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. was sold in 1995.
Contributed less than 1 percent of consolidated net income for the year
ended December 31, 1995, and consisted of less than 1 percent of
consolidated assets at December 31, 1995.
These companies each consisted of less than 1 percent of consolidated
assets at December 31, 1995.
Topeka Group Incorporated has an 80 percent ownership interest in
this corporation.
Lehigh Corporation has a 60 percent stock ownership in this
corporation.
-4-
Synertec, Incorporated, owned 100 percent of Superior Recycled Fiber
Corporation which owned 76 percent of Superior Recycled Fiber
Industries Joint Venture, a pulp production plant in Duluth, MN. The
remaining 24 percent was owned by LSPI Fiber Co., a former partnership
of Minnesota Pulp, Incorporated. Minnesota Pulp II, Inc. a wholly owned
subsidiary of Minnesota Pulp, Incorporated, owned 50 percent of LSPI
Fiber Co. Superior Recycled Fiber Corporation, Superior Recycled Fiber
Industries Joint Venture and LSPI Fiber Co. were sold in 1995.
Subsidiary of Upper Minnesota Properties, Inc.
Subsidiary of Topeka Group Incorporated.
Sanitation services ceased in 1995.
Subsidiary of Heater Utilities, Incorporated.
Subsidiary of Southern States Utilities, Inc.
Subsidiary of Lehigh Acquisition Corporation.
SRC of Florida, Inc. is a 50 percent partner in Guardian Title of
Lehigh, a title company in Lehigh Acres, FL.
Subsidiary of Lehigh 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. Lehigh Corporation is also a 40 percent participant in Westminster
L.L.P., which is involved in residential development in Lehigh Acres,
FL.
Lehigh Corporation has a 98 percent stock ownership in this
corporation.
Lehigh Corporation has a 94 percent stock ownership in this
corporation.
Lehigh Corporation has an 80 percent stock ownership in this
corporation.
Corporation in process of dissolution.
Lehigh Land and Investment, Inc. 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.
ADESA Holdings purchased 80 percent of ADESA Corporation on July 1,
1995.
Subsidiary of ADESA Corporation.
ADESA Corporation has an 86.7 percent stock ownership in this
corporation. ADESA Canada Inc. owns 20 percent of Import Auto Auctions
Limited.
Subsidiary of ADESA Canada, Inc.
Subsidiary of Automotive Finance Corporation.
-5-
Subsidiary of A.D.E. Management Company.
ADESA Corporation owns 51 percent of ADESA South Florida, LLC which is
an automobile auction in Opa-Locka, FL.
Subsidiary of ADESA-Ottawa, Inc.
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, 1995, for the fiscal year ended
December 31, 1994, 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.
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 9,250,575,715 None
Superior Water, Light and Power Company 555,794,000 28,440,441
Southern States Utilities, Inc. None 30,524
(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
-6-
(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 740,519,000 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 5,051,176,830 None
Superior Water, Light and Power Company 573,573,145 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
-7-
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 and filed as Exhibit A-1.
Exhibit A-3 is the consolidating financial statements for Heater Utilities,
Incorporated. These statements are combined in the consolidated financial
statements for Topeka Group and filed as Exhibit A-1.
Exhibit A-4 is the consolidating financial statements for ADESA Holdings. These
statements are combined in the consolidating financial statements of Minnesota
Power & Light Company which are filed as Exhibit A.
Exhibit A-5 - Consolidating financial statements for ADESA Corporation are
combined in the consolidating financial statements for ADESA Holdings and are
filed as Exhibit A-4. Consolidating financial statements for ADESA Corporation
have been excluded from this exhibit due to the competitive nature of the
information.
Exhibit A-6 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-7 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-8 is the consolidating financial statements for Superior Recycled
Fiber Corporation which are combined with Synertec, Incorporated and are filed
as Exhibit A-7.
Exhibit A-9 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-10 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-11 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.
-8-
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 23th day of February 1996.
MINNESOTA POWER & LIGHT COMPANY
-----------------------------------
(Name of Claimant)
By D.G. Gartzke
-----------------------------------
Senior Vice President -
Finance and Chief Financial Officer
Attest:
Mark A. Schober
- ----------------------------------------
Corporate Controller
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Senior Vice President -
David G. Gartzke Finance and Chief Financial Officer
---------------- -----------------------------------
(Name) (Title)
Minnesota Power & Light Company
30 West Superior Street
Duluth, Minnesota 55802
-----------------------
(Address)
-9-
Exhibit A
Page 1 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS MPL SWL CNTG ENLD CNAD
------------ ------------ ------------ ------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 1205056,826 2,762,175 1178348,707 23,945,944 0 0 0
ELECTRIC MISCELLANEOUS -U175 27978,188 0 17756,311 5,304,913 0 0 0
GAS -U400 13252,121 848,205 0 12,403,916 0 0 0
COAL -U550,551 38663,466 0 0 0 0 0 0
COMMON -U500 0 5,739,020- 0 5,739,020 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 1284950,601 2,128,640- 1196105,018 47,393,793 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
WATER -U300 424894,699 2,128,640 0 16,237,584 406,528,475 0 0
WATER MISCELLANEOUS -U350 13415,829 0 0 0 13,415,829 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 438310,528 2,128,640 0 16,237,584 419,944,304 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
AUTO REDISTRIBUTION -N550 87303,000 0 0 0 0 0 87,303,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
PULP -N300 0 0 0 0 0 0 0
AFFORD HOUSING AND OTHE-N350 518,126 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 518,126 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL PLANT 1811082,255 0 1196105,018 63,631,377 419,944,304 0 87,303,000
ACCUMULATED DEPREC-U600,N600 619342,564- 0 464670,433- 24,779,913- 108,786,679- 0 1,990,000-
CONSTRUCTION IN PRO-U710,711 56019,418 0 5386,418 289,716 12,024,284 0 38,319,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET PLANT 1247759,109 0 736821,003 39,141,180 323,181,909 0 123,632,000
SECURITIES INVESTES-N900,905 78086,916 0 71227,157 0 154,962 4,907,926 0
EQUITY INVESTMENTS -N910 92851,019 0 92851,019 0 0 0 0
REAL ESTATE -N400 25912,564 0 0 0 25,912,564 0 0
OTHER -N500 4041,597 0 2442,379 0 1,599,218 0 0
INV IN SUBSIDIARIES -N200 3- 402,556,261- 402556,257 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 1448651,202 402,556,261- 1305897,815 39,141,180 350,848,653 4,907,926 123,632,000
CURRENT ASSETS (A)
CASH -110 27140,930 1 273,966 171,093 5,198,074 5,743 20,143,001
WORKING FUNDS -150 214,405 0 205,398 9,008 0 0 0
TEMP CASH INVESTMENTS -200 4221,721 2,900,000- 5587,938 0 504,248 0 0
RESTRICTED CASH -115 0 0 0 0 0 0 0
TRADING SECURITIES -250 40006,578 1,547,264- 41553,842 0 0 0 0
CUSTOMER ACCTS REC -321 131397,132 0 39398,016 5,281,389 8,353,016 0 75,345,000
RESERVE FOR UNCOL ACT-322 3325,254- 0 358,383- 292,171- 256,701- 0 2,418,000-
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 476,849 0 258,391 0 218,458 0 0
OTHER ACCOUNTS REC -409 11743,236 1,233,892- 7351,968 1,578,610 3,944,795 0 0
ACCTS REC FROM ASSOC -432 0 122,134,898- 39588,044 7,222 37,311,714 1,570,854 452,500
FUEL STOCK -500 7419,432 0 7350,217 69,215 0 0 0
PLANT & OPER SUPPLIES -610 17774,196 0 9634,084 517,742 851,094 0 4,332,000
MERCHANDISE -620 1168,840 0 1168,840 0 0 0 0
STORES EXPENSE UNDIST-630 21,180 0 40,970 19,790- 0 0 0
PREPAYMENTS -700 7542,639 0 1756,396 927,577 1,673,545 0 2,699,325
OTHER CUR & ACCR ASSETS-900 4093,163 0 2505,943 169,749 1,359,146 0 0
FUNDS HELD BY TRUSTEE-145 2069,743 0 2069,743 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 251964,790 127,816,053- 158385,373 8,419,644 59,157,389 1,576,597 100,553,826
------------ ------------ ------------ ------------ ------------ ------------ ------------
DEFERRED CHARGES H-200 113667,345 2,190,104 89019,238 2,229,328 16,511,879 0 363,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
INTANGIBLES - GOODWILL N-700 120245,311 0 0 0 1,594,828 0 118,650,483
- OTHER N-702 13096,000 0 0 0 0 0 13,096,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INTANGIBLES 133341,311 0 0 0 1,594,828 0 131,746,483
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 1947624,648 528,182,210- 1553302,426 49,790,152 428,112,749 6,484,523 356,295,309
============ ============ ============ ============ ============ ============ ============
CNRD BNI RAIN CNSY
------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0 0 0 0
ELECTRIC MISCELLANEOUS -U175 0 0 0 0
GAS -U400 0 0 0 0
COAL -U550,551 0 38,663,466 0 0
COMMON -U500 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 38,663,466 0 0
------------ ------------ ------------ ------------
WATER -U300 0 0 0 0
WATER MISCELLANEOUS -U350 0 0 0 0
------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0
------------ ------------ ------------ ------------
AUTO REDISTRIBUTION -N550 0 0 0 0
------------ ------------ ------------ ------------
PULP -N300 0 0 0 0
AFFORD HOUSING AND OTHE-N350 468,230 0 0 49,896
------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 468,230 0 0 49,896
------------ ------------ ------------ ------------
TOTAL PLANT 468,230 38,663,466 0 49,896
ACCUMULATED DEPREC-U600,N600 0 18,875,379- 0 42,495-
CONSTRUCTION IN PRO-U710,711 0 0 0 0
------------ ------------ ------------ ------------
NET PLANT 468,230 19,788,087 0 7,401
SECURITIES INVESTES-N900,905 0 1,737,743 0 0
EQUITY INVESTMENTS -N910 0 0 0 0
REAL ESTATE -N400 0 0 0 0
OTHER -N500 0 0 0 0
INV IN SUBSIDIARIES -N200 0 0 0 0
------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 468,230 21,525,830 0 7,401
CURRENT ASSETS (A)
CASH -110 2,362 542,197 13,750 673,247
WORKING FUNDS -150 0 0 0 0
TEMP CASH INVESTMENTS -200 0 1,014,536 0 0
RESTRICTED CASH -115 0 0 0 0
TRADING SECURITIES -250 0 0 0 0
CUSTOMER ACCTS REC -321 0 3,019,711 0 0
RESERVE FOR UNCOL ACT-322 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 0 0 0 20,277
ACCTS REC FROM ASSOC -432 7,802,675 0 734,078 19,580,500
FUEL STOCK -500 0 0 0 0
PLANT & OPER SUPPLIES -610 0 2,439,275 0 0
MERCHANDISE -620 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0
PREPAYMENTS -700 0 474,844 0 0
OTHER CUR & ACCR ASSETS-900 0 37,809 0 0
FUNDS HELD BY TRUSTEE-145 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 7,805,037 7,528,372 747,828 20,274,024
------------ ------------ ------------ ------------
DEFERRED CHARGES H-200 11,713 3,277,066 0 0
------------ ------------ ------------ ------------
INTANGIBLES - GOODWILL N-700 0 0 0 0
- OTHER N-702 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INTANGIBLES 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ASSETS 8,284,980 32,331,268 747,828 20,281,425
============ ============ ============ ============
Exhibit A
Page 2 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1995
LFC1 CNUP CNPI MPAP
------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0 0 0 0
ELECTRIC MISCELLANEOUS -U175 0 4,916,964 0 0
GAS -U400 0 0 0 0
COAL -U550,551 0 0 0 0
COMMON -U500 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 4,916,964 0 0
------------ ------------ ------------ ------------
WATER -U300 0 0 0 0
WATER MISCELLANEOUS -U350 0 0 0 0
------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0
------------ ------------ ------------ ------------
AUTO REDISTRIBUTION -N550 0 0 0 0
------------ ------------ ------------ ------------
PULP -N300 0 0 0 0
AFFORD HOUSING AND OTHE-N350 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 0 0 0 0
------------ ------------ ------------ ------------
TOTAL PLANT 0 4,916,964 0 0
ACCUMULATED DEPREC-U600,N600 0 197,664- 0 0
CONSTRUCTION IN PRO-U710,711 0 0 0 0
------------ ------------ ------------ ------------
NET PLANT 0 4,719,300 0 0
SECURITIES INVESTES-N900,905 59,129 0 0 0
EQUITY INVESTMENTS -N910 0 0 0 0
REAL ESTATE -N400 0 0 0 0
OTHER -N500 0 0 0 0
INV IN SUBSIDIARIES -N200 0 1 0 0
------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 59,129 4,719,301 0 0
CURRENT ASSETS (A)
CASH -110 48,420 36,821 32,259 0
WORKING FUNDS -150 0 0 0 0
TEMP CASH INVESTMENTS -200 0 15,000 0 0
RESTRICTED CASH -115 0 0 0 0
TRADING SECURITIES -250 0 0 0 0
CUSTOMER ACCTS REC -321 0 0 0 0
RESERVE FOR UNCOL ACT-322 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 51 80,026 1,400 0
ACCTS REC FROM ASSOC -432 3,542 1,771,776 13,311,993 0
FUEL STOCK -500 0 0 0 0
PLANT & OPER SUPPLIES -610 0 0 0 0
MERCHANDISE -620 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0
PREPAYMENTS -700 0 10,953 0 0
OTHER CUR & ACCR ASSETS-900 20,517 0 0 0
FUNDS HELD BY TRUSTEE-145 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 72,530 1,914,576 13,345,652 0
------------ ------------ ------------ ------------
DEFERRED CHARGES H-200 0 65,018 0 0
------------ ------------ ------------ ------------
INTANGIBLES - GOODWILL N-700 0 0 0 0
- OTHER N-702 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INTANGIBLES 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ASSETS 131,659 6,698,895 13,345,652 0
============ ============ ============ ============
Exhibit A
Page 3 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS MPL SWL CNTG ENLD CNAD
------------ ------------ ------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 377684,029 285,590,587- 377684,029 5,800,000 62,765,345 2,500 191,317,310
LOAN TO LEV ESOP -210 72882,245- 0 72882,245- 0 0 0 0
UNREAL GAINS INVEST -215 3206,726 0 3206,726 0 0 0 0
CUM TRANSLATION ADJ -216 177,000- 0 0 0 0 0 177,000-
RETAINED EARNINGS -400 276240,740 116,965,673- 276240,744 11,498,603 102,563,110 3,158,640 37,894-
PREFERRED STOCK (P)
5% -100 11491,693 0 11491,693 0 0 0 0
$7.36 SERIES -210 17054,910 0 17054,910 0 0 0 0
$8.90 SERIES 220 0 0 0 0 0 0 0
$6.70 SERIES -250 10000,000 0 10000,000 0 0 0 0
$9.125 SERIES -320 0 0 0 0 0 0 0
$7.125 SERIES -330 10000,000 0 10000,000 0 0 0 0
LONG-TERM DEBT (D)
BONDS -100 510564,418 1,175,000- 406955,000 5,400,000 99,384,418 0 0
BOND FUNDS HELD BY TRUST 0 0 0 0 0 0 0
OTHER LONG-TERM DEBT -700 130227,173 789,987- 13176,334 7,350,000 38,002,600 0 56,781,000
UNAMORT PREM ON DEBT -850 0 0 0 0 0 0 0
UNAMORT DISC ON DEBT -860 1243,452- 0 1243,452- 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 1272166,992 404,521,247- 1051683,739 30,048,603 302,715,473 3,161,140 247,883,416
------------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 96217,711 2,900,000- 62994,297 2,900,000 808,414 0 32,415,000
CURRENT MATURITIES -200 9743,191 1,964,986 0 0 795,497 0 5,173,000
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 68082,636 1,733,343- 19877,650 1,003,434 6,009,677 0 42,514,484
ACCOUNTS PAY TO ASSOC-320 4 121,944,556- 82542,595 1,940,928 2,499,202 383,307 1,053,257
ACCRUED TAXES
FEDERAL INCOME TAXES -401 1353,033 0 1955,733 399,726 166,236 37,480- 328,290-
STATE INCOME TAXES -450 1427,414 0 1087,589- 11,392- 442,991 248,340 68,870
OTHER ACCRUED TAXES -500 38218,625 0 36795,586 136,322 727,099 0 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 13668,891 0 9603,776 284,446 3,492,904 0 0
DIVIDENDS DECLARED -620 800,123 0 800,123 0 0 0 0
MATURED INTEREST -630 1,709 0 1,709 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 2991,077 0 233,721 22,001 2,625,021 0 0
TAX COLLECTIONS PAY -920 1145,756 0 948,057 197,699 0 0 0
MISC CURR & ACCR LIAB-930 23155,606 1,238,154- 11718,239 2,824,491 4,471,560 0 4,734,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 256805,776 125,851,067- 226383,897 9,697,655 22,038,601 594,167 85,630,321
------------ ------------ ------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 98166,838 0 0 1,073,668 97,093,169 0 0
ACCUM DEF INC TXS(H254)-100 130367,328 0 137830,262 2,543,065 14,805,418- 2,729,216 1,230,000
ACC DEF INV TAX CREDITS-200 34369,360 0 32001,806 1,011,144 1,356,410 0 0
OTHER
MINORITY INTEREST -900 29941,441 0 0 0 8,388,154 0 21,551,572
CUST ADV FOR CONSTR -910 2691,689 0 840,968 1,850,721 0 0 0
OTHER DEF CREDITS -920 118205,132 2,188,756 99653,010 3,565,296 11,326,360 0 0
LOST TIME RESERVE -930 4910,092 1,348 4908,744 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 418651,880 2,190,104 275234,790 10,043,894 103,358,675 2,729,216 22,781,572
------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 1947624,648 528,182,210- 1553302,426 49,790,152 428,112,749 6,484,523 356,295,309
============ ============ ============ ============ ============ ============ ============
CNRD BNI RAIN CNSY
------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 4,487,500 2,027,426 500,000 5,074,217
LOAN TO LEV ESOP -210 0 0 0 0
UNREAL GAINS INVEST -215 0 0 0 0
CUM TRANSLATION ADJ -216 0 0 0 0
RETAINED EARNINGS -400 11,432,534- 11,007,363 1,391,643- 374,841-
PREFERRED STOCK (P)
5% -100 0 0 0 0
$7.36 SERIES -210 0 0 0 0
$8.90 SERIES 220 0 0 0 0
$6.70 SERIES -250 0 0 0 0
$9.125 SERIES -320 0 0 0 0
$7.125 SERIES -330 0 0 0 0
LONG-TERM DEBT (D)
BONDS -100 0 0 0 0
BOND FUNDS HELD BY TRUST 0 0 0 0
OTHER LONG-TERM DEBT -700 0 13,101,598 0 0
UNAMORT PREM ON DEBT -850 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 6,945,034- 26,136,387 891,643- 4,699,376
------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 0 0 0
CURRENT MATURITIES -200 0 1,647,573 0 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 194,924 191,000 0 0
ACCOUNTS PAY TO ASSOC-320 15,705,073 274,378 1,833,521 13,830,253
ACCRUED TAXES
FEDERAL INCOME TAXES -401 278,780 240,330 2,270- 387,330-
STATE INCOME TAXES -450 786,037- 58,203 1,910- 2,137,364
OTHER ACCRUED TAXES -500 6,877 539,997 0 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0 230,665 0 0
DIVIDENDS DECLARED -620 0 0 0 0
MATURED INTEREST -630 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 0 0 0 0
TAX COLLECTIONS PAY -920 0 0 0 0
MISC CURR & ACCR LIAB-930 0 645,471 0 0
------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 15,399,617 3,827,617 1,829,341 15,580,287
------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 0 0 0
ACCUM DEF INC TXS(H254)-100 169,603- 895,554 189,870- 1,762
ACC DEF INV TAX CREDITS-200 0 0 0 0
OTHER
MINORITY INTEREST -900 0 0 0 0
CUST ADV FOR CONSTR -910 0 0 0 0
OTHER DEF CREDITS -920 0 1,471,710 0 0
LOST TIME RESERVE -930 0 0 0 0
------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 169,603- 2,367,264 189,870- 1,762
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 8,284,980 32,331,268 747,828 20,281,425
============ ============ ============ ============
Exhibit A
Page 4 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1995
LFC1 CNUP CNPI MPAP
------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 10,000 3,324,189 10,282,100 0
LOAN TO LEV ESOP -210 0 0 0 0
UNREAL GAINS INVEST -215 0 0 0 0
CUM TRANSLATION ADJ -216 0 0 0 0
RETAINED EARNINGS -400 288- 647,809 1,327,343 0
PREFERRED STOCK (P)
5% -100 0 0 0 0
$7.36 SERIES -210 0 0 0 0
$8.90 SERIES 220 0 0 0 0
$6.70 SERIES -250 0 0 0 0
$9.125 SERIES -320 0 0 0 0
$7.125 SERIES -330 0 0 0 0
LONG-TERM DEBT (D)
BONDS -100 0 0 0 0
BOND FUNDS HELD BY TRUST 0 0 0 0
OTHER LONG-TERM DEBT -700 0 2,605,629 0 0
UNAMORT PREM ON DEBT -850 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 9,712 6,577,627 11,609,443 0
------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 0 0 0
CURRENT MATURITIES -200 0 162,135 0 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 1 24,816 0 0
ACCOUNTS PAY TO ASSOC-320 121,801 362,880 1,397,366 0
ACCRUED TAXES
FEDERAL INCOME TAXES -401 200- 882,116- 50,086- 0
STATE INCOME TAXES -450 345 30,700- 388,929 0
OTHER ACCRUED TAXES -500 0 12,743 0 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0 57,101 0 0
DIVIDENDS DECLARED -620 0 0 0 0
MATURED INTEREST -630 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 0 110,334 0 0
TAX COLLECTIONS PAY -920 0 0 0 0
MISC CURR & ACCR LIAB-930 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 121,947 182,807- 1,736,209 0
------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 0 0 0
ACCUM DEF INC TXS(H254)-100 0 302,360 0 0
ACC DEF INV TAX CREDITS-200 0 0 0 0
OTHER
MINORITY INTEREST -900 0 1,715 0 0
CUST ADV FOR CONSTR -910 0 0 0 0
OTHER DEF CREDITS -920 0 0 0 0
LOST TIME RESERVE -930 0 0 0 0
------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 0 304,075 0 0
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 131,659 6,698,895 13,345,652 0
============ ============ ============ ============
Exhibit A
Page 5 of 8
MINNESOTA POWER CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS MPL SWL CNTG ENLD CNAD
------------ ------------ ------------ ------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 446,935,954 19,399,520- 441,600,468 24,735,006 0 0 0
- ELECT MISC T513 11,987,475 6,152,647- 17,964,618 68,908- 0 0 0
- GAS R400 10,557,163 0 0 10,557,163 0 0 0
- COAL R500,R501 28,871,783 0 0 0 0 0 0
- AFDC T101 135- 0 135- 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 498,352,240 25,552,167- 459,564,951 35,223,261 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
- WATER R300 65,319,695 0 0 4,441,879 60,877,817 0 0
- WATER MISC R380 3,821,911 0 0 0 3,821,911 0 0
- AFDC T102 236,678 0 0 0 236,678 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 69,378,284 0 0 4,441,879 64,936,406 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
- AUTO REDIST T900 61,254,000 0 0 0 0 0 61,254,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
- INVESTMENT T300 24,146,855 4,366,923- 18,791,705 0 6,459,339 592,928 306,000
- PULP T520 0 42,348,016- 0 0 0 0 0
- REAL ESTATE T711 19,557,485 0 0 0 19,557,485 0 0
- OTHER T530 227,777 0 0 0 200,550 0 0
- GAIN ON SALE T505 0 3,401,189 12,765,356- 0 0 0 0
- EQUITY IN SUBS T200 0 39,499,829- 39,499,829 0 1 0 1
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 43,932,117 82,813,579- 45,526,178 0 26,217,375 592,928 306,001
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 672,916,641 108,365,746- 505,091,129 39,665,140 91,153,781 592,928 61,560,001
------------ ------------ ------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 72,075,044 0 72,075,044 0 0 0 0
PURCHASED POWER E200 104,885,185 17,560,273- 104,885,185 17,560,273 0 0 0
OPERATION E305,T512,350 148,990,341 44,752,083- 77,081,640 9,702,895 26,367,268 0 25,173,000
MAINTENANCE E405 30,725,377 0 23,475,720 972,768 3,739,833 0 796,000
DEPRECIATION E500,T590 57,306,527 2,247,722- 36,655,517 1,985,724 12,645,466 0 4,367,000
PROPERTY TAXES E610,T570 38,919,577 140,283- 33,500,178 780,632 3,765,017 0 824,000
OTHER TAXES E620,T571 10,261,822 0 5,691,827 460,785 3,490,297 0 0
ADMIN AND GENERAL E310 98,418,309 813,257- 36,417,990 3,900,758 27,012,193 3,097 28,155,672
MINORITY INTEREST T511 4,476,543 507,703 0 0 4,111,938 0 364,748
INTEREST EXPENSE
INTEREST ON LTD I100 42,601,700 0 28,157,014 966,889 9,775,694 0 674,896
OTHER INTEREST EXP I340 4,708,183 5,410,730- 6,523,522 383,903 760,354 0 0
AMORT OF DEBT EXP I300 1,488,719 0 1,433,727 54,992 0 0 0
AFCD-DEBT I200 758,391- 0 414,263- 0 344,128- 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 614,098,936 70,416,645- 425,483,101 36,769,619 91,323,932 3,097 60,355,316
------------ ------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 4,195,028 7,241,255- 9,810,500 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 63,012,733 45,190,356- 89,418,528 2,895,521 170,151- 589,831 1,204,685
INCOME TAX EXP E700,T400,6,7 1,155,859- 2,842,302 24,713,419- 1,085,857- 17,150,206 6,470 1,242,580-
------------ ------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 61,856,874 42,348,054- 64,705,109 1,809,664 16,980,055 596,301 37,895-
DISCONTINUED OPERATIONS X200 2,848,225 2,848,225 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET INCOME 64,705,099 39,499,829- 64,705,109 1,809,664 16,980,055 596,301 37,895-
PREFERRED DIVIDENDS V100 3,200,498- 0 3,200,498- 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMMON 61,504,601 39,499,829- 61,504,611 1,809,664 16,980,055 596,301 37,895-
COMMOND DIVIDENDS V200 57,909,873- 0 57,909,873- 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0 0 0 0
BEGIN RETAINED EARNINGS C425 272,646,007 0 272,646,007 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 276,240,735 39,499,829- 276,240,745 1,809,664 16,980,055 596,301 37,895-
============ ============ ============ ============ ============ ============ ============
CNRD BNI RAIN CNSY
------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 0 0 0 0
- ELECT MISC T513 0 0 0 0
- GAS R400 0 0 0 0
- COAL R500,R501 0 28,871,783 0 0
- AFDC T101 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 28,871,783 0 0
------------ ------------ ------------ ------------
- WATER R300 0 0 0 0
- WATER MISC R380 0 0 0 0
- AFDC T102 0 0 0 0
------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0
------------ ------------ ------------ ------------
- AUTO REDIST T900 0 0 0 0
------------ ------------ ------------ ------------
- INVESTMENT T300 153,035 159,681 0 647,201
- PULP T520 0 0 0 42,348,016
- REAL ESTATE T711 0 0 0 0
- OTHER T530 27,228 0 0 0
- GAIN ON SALE T505 0 0 0 9,364,167
- EQUITY IN SUBS T200 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 180,263 159,681 0 52,359,384
------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 180,263 29,031,464 0 52,359,384
------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 0 0 0 0
PURCHASED POWER E200 0 0 0 0
OPERATION E305,T512,350 0 18,453,635 0 36,815,166
MAINTENANCE E405 0 1,741,056 0 0
DEPRECIATION E500,T590 0 1,506,307 0 2,257,232
PROPERTY TAXES E610,T570 6,231 23,290 0 139,797
OTHER TAXES E620,T571 0 618,912 0 0
ADMIN AND GENERAL E310 282,092 1,003,127 478,491 1,952,777
MINORITY INTEREST T511 0 0 0 507,703-
INTEREST EXPENSE
INTEREST ON LTD I100 0 1,218,968 0 1,601,279
OTHER INTEREST EXP I340 1,041,519 30,667 0 0
AMORT OF DEBT EXP I300 0 0 0 0
AFCD-DEBT I200 0 0 0 0
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 1,329,842 24,595,962 478,491 42,258,548
------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 5,615,472- 0 0 0
------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 6,765,051- 4,435,502 478,491- 10,100,836
INCOME TAX EXP E700,T400,6,7 2,797,480 1,249,045- 197,945 4,121,789-
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 3,967,571- 3,186,457 280,546- 5,979,047
DISCONTINUED OPERATIONS X200 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME 3,967,571- 3,186,457 280,546- 5,979,047
PREFERRED DIVIDENDS V100 0 0 0 0
------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMMON 3,967,571- 3,186,457 280,546- 5,979,047
COMMOND DIVIDENDS V200 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0 0
------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 3,967,571- 3,186,457 280,546- 5,979,047
============ ============ ============ ============
Exhibit A
Page 6 of 8
MINNESOTA POWER CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
LFC1 CNUP CNPI MPAP
------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 0 0 0 0
- ELECT MISC T513 0 244,412 0 0
- GAS R400 0 0 0 0
- COAL R500,R501 0 0 0 0
- AFDC T101 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 244,412 0 0
------------ ------------ ------------ ------------
- WATER R300 0 0 0 0
- WATER MISC R380 0 0 0 0
- AFDC T102 0 0 0 0
------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0
------------ ------------ ------------ ------------
- AUTO REDIST T900 0 0 0 0
------------ ------------ ------------ ------------
- INVESTMENT T300 11,866 26,154 1,849 1,364,020
- PULP T520 0 0 0 0
- REAL ESTATE T711 0 0 0 0
- OTHER T530 0 0 0 0
- GAIN ON SALE T505 0 0 0 0
- EQUITY IN SUBS T200 0 0 2- 0
------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 11,866 26,154 1,847 1,364,020
------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 11,866 270,566 1,847 1,364,020
------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 0 0 0 0
PURCHASED POWER E200 0 0 0 0
OPERATION E305,T512,350 0 148,819 0 0
MAINTENANCE E405 0 0 0 0
DEPRECIATION E500,T590 0 137,002 0 0
PROPERTY TAXES E610,T570 0 20,228 0 486
OTHER TAXES E620,T571 0 0 0 0
ADMIN AND GENERAL E310 0 19,665 221,673- 227,377
MINORITY INTEREST T511 0 143- 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 0 206,960 0 0
OTHER INTEREST EXP I340 8,079 6,849 0 1,364,020
AMORT OF DEBT EXP I300 0 0 0 0
AFCD-DEBT I200 0 0 0 0
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 8,079 539,380 221,673- 1,591,883
------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 0 0 1,888,255 5,353,000
------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 3,787 268,814- 2,111,775 5,125,137
INCOME TAX EXP E700,T400,6,7 1,577- 417,291 868,677- 8,715,391
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 2,210 148,477 1,243,098 13,840,528
DISCONTINUED OPERATIONS X200 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME 2,210 148,477 1,243,098 13,840,528
PREFERRED DIVIDENDS V100 0 0 0 0
------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMMON 2,210 148,477 1,243,098 13,840,528
COMMOND DIVIDENDS V200 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0 0
------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 2,210 148,477 1,243,098 13,840,528
============ ============ ============ ============
Exhibit A
Page 7 of 8
Minnesota Power & Light Company and Subsidiaries
Consolidating Statement of Retained Earnings
for the Year Ended December 31, 1995
Superior
Eliminations Minnesota Water, Light Consolidated
Consolidated and Power & Light and Power Topeka Energy Land
Total Adjustments Company Company Group Incorporated
------------ ------------- ------------- ------------ ------------- ------------
Balance at Beginning of Period $272,646,012 $(117,925,995) $272,646,012 $11,288,941 $ 85,583,056 $2,562,340
Additions
Net Income (Loss) from
Statement of Income 64,705,099 (39,499,829) 64,705,099 1,809,665 16,980,056 596,302
------------ ------------- ------------ ----------- ------------- ----------
337,351,111 (157,425,824) 337,351,111 13,098,606 102,563,112 3,158,642
------------ ------------- ------------ ----------- ------------- ----------
Deductions
Dividends - Cash
5% Preferred Stock
($5.00 per share) 566,789 566,789
Serial Preferred Stock
($7.36 per share) 1,251,200 1,251,200
Serial (A) Preferred Stock
($6.70 per share) 670,009 670,009
Serial Preferred Stock
($7.125 per share) 712,500 712,500
Common Stock 57,909,873 (10,534,800) 57,909,873 1,600,000
Sale of Subsidiary (29,925,351)
------------ ------------- ------------ ----------- ------------- ----------
Total Deductions 61,110,371 (40,460,151) 61,110,371 1,600,000
------------ ------------- ------------ ----------- ------------- ----------
Balance at End of Period $276,240,740 $(116,965,673) $276,240,740 $11,498,606 $ 102,563,112 $3,158,642
------------ ------------- ------------ ----------- ------------- ----------
Consolidated
ADESA Consolidated BNI Rainy River Consolidated
Corporation RendField Coal, Ltd. Energy, Inc. Synertec
------------ ------------- ----------- ------------ ------------
Balance at Beginning of Period $ (7,464,963) $10,820,908 $(1,111,098) $ (419,088)
Additions
Net Income (Loss) from
Statement of Income $(37,894) (3,967,571) 3,186,457 (280,546) 5,979,047
-------- ------------ ----------- ----------- ----------
(37,894) (11,432,534) 14,007,365 (1,391,644) 5,559,959
-------- ------------ ----------- ----------- ----------
Deductions
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 Preferred Stock
($7.125 per share)
Common Stock 3,000,000 5,934,800
Sale of Subsidiary
-------- ------------ ----------- ----------- ----------
Total Deductions 3,000,000 5,934,800
-------- ------------ ----------- ----------- ----------
Balance at End of Period $(37,894) $(11,432,534) $11,007,365 $(1,391,644) $ (374,841)
-------- ------------ ----------- ----------- ----------
Common dividends from Superior Water, Light and Power Company, BNI Coal and Synertec of $1,600,000, $3,000,000, and
$5,934,800, respectively.
Exhibit A
Page 8 of 8
Minnesota Power & Light Company and Subsidiaries
Consolidating Statement of Retained Earnings
for the Year Ended December 31, 1995
Consolidated
Lakeview Upper Consolidated
Financial Minnesota Minnesota Minnesota
Corporation Properties Pulp Paper
----------- ---------- ------------ -----------
Balance at Beginning of Period $(2,498) $ 499,330 $ 84,244 $16,084,823
Additions
Net Income (Loss) from
Statement of Income 2,210 148,477 1,243,098 13,840,528
------- --------- ---------- -----------
(288) 647,807 1,327,342 29,925,351
------- --------- ---------- -----------
Deductions
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 Preferred Stock
($7.125 per share)
Common Stock
Sale of Subsidiary 29,925,351
------- --------- ---------- -----------
Total Deductions 29,925,351
------- --------- ---------- -----------
Balance at End of Period $ (288) $ 647,807 $1,327,342 $ 0
------- --------- ---------- -----------
Exhibit A-1
Page 1 of 3
TOPEKA GROUP CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS TOPEKA GROUP ELAG FIBERCORE LAC HEATER SSU
------------ ------------ ------------ --------- ---------- ---------- ----------- ------------
UTILITY PLANT (U)
-WATER -300 406,528,475 0 0 0 0 0 47,982,326 358,546,149
-GAS -400 0 0 0 0 0 0 0 0
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
TOTAL GROSS PLANT 406,528,475 0 0 0 0 0 47,982,326 358,546,149
ACCUM DEPRECIATION -600 108,785,849- 0 0 0 0 0 14,451,685- 94,334,164-
CONSTR WORK IN PROGRESS-710 12,024,284 0 0 0 0 0 0 12,024,284
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
NET UTILITY PLANT 309,766,910 0 0 0 0 0 33,530,641 276,236,269
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 13,416,659 0 830 0 0 0 40,295 13,375,534
ACCUM-DEPR NONUTILITY-600 830- 0 830- 0 0 0 0 0
GOODWILL -700 1,594,828 0 1,594,828 0 0 0 0 0
OTHER -950 27,510,952 0 1,598,388 0 0 25,912,564 0 0
INVESTMENTS -900 154,962 0 0 0 0 0 154,962 0
INVEST IN ASSOC CO -200 0 119,571,174- 119,571,174 0 0 0 0 0
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
TOTAL NONUTIL PROP & INV 42,676,571 119,571,174- 122,764,390 0 0 25,912,564 195,257 13,375,534
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
CURRENT ASSETS (A)
CASH
CASH -110 5,198,074 0 40,541 185,207 1,384 2,360,566 701,038 1,909,337
WORKING FUNDS -150 0 0 0 0 0 0 0 0
TEMP CASH INVESTMENTS -200 504,248 0 0 0 0 0 504,248 0
RESTRICTED CASH -115 0 0 0 0 0 0 0 0
TRADE ACCOUNTS RECEIVABLE
CUSTOMER ACCOUNTS REC-321 8,353,016 0 0 0 0 0 1,034,151 7,318,865
ACCUM PROV UNCOL ACT -322 256,701- 0 0 0 0 0 31,193- 225,507-
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 218,458 0 164,642 0 0 0 53,816 0
OTHER ACCTS REC -409 3,944,795 0 0 0 0 3,405,337 144,610 394,849
ACCTS REC FROM ASSOC -432 37,311,715 44,082,416- 76,582,755 927,887 557 2,932,932 0 950,000
FUEL STOCK -500 0 0 0 0 0 0 0 0
MATERIALS & SUPPLIES
PLANT & OPER SUPPLIES-610 851,094 0 0 0 0 6,431 417,516 427,148
MERCHANDISE -620 0 0 0 0 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0 0 0 0 0
PREPAYMENTS -700 1,673,545 0 27,577 0 0 0 1,507,363 138,605
OTHER
OTH CUR & ACCR ASSETS-900 1,359,146 0 0 0 0 1,258,710 3,340 97,096
FUNDS HELD BY TRUSTEE-145 0 0 0 0 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0 0 0 0
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
TOTAL CURRENT ASSETS 59,157,390 44,082,416- 76,815,515 1,113,094 1,941 9,963,976 4,334,889 11,010,393
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
ACCUM DEF INC TAXES H-254 34,893,973 0 574,092 0 0 16,877,433 0 17,442,448
OTHER -200 16,511,879 0 213,275 0 0 0 0 16,298,604
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
TOTAL DEFERRED DEBITS 51,405,852 0 787,367 0 0 16,877,433 0 33,741,052
----------- ----------- ----------- --------- ---------- ---------- ----------- -----------
TOTAL ASSETS 463,006,723 163,653,590- 200,367,272 1,113,094 1,941 52,753,973 38,060,787 334,363,248
=========== =========== =========== ========= ========== ========== =========== ===========
Exhibit A-1
Page 2 of 3
TOPEKA GROUP CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS TOPEKA GROUP ELAG FIBERCORE LAC HEATER SSU
------------ ------------ ------------ --------- ---------- ---------- ----------- ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 62,765,345 90,013,993- 62,765,345 263,928 5,125,000 5,952,410 5,840,250 72,832,405
CAPITAL STOCK EXPENSE-300 0 0 0 0 0 0 0 0
RETAINED EARNINGS -400 102,563,110 37,945,335- 102,563,113 824,534 4,976,047- 35,988,335 3,120,532 2,987,979
PREFERRED STOCK (P)
5% SERIES -100 0 0 0 0 0 0 0 0
$7.36 SERIES -210 0 0 0 0 0 0 0 0
$8.90 SERIES -220 0 0 0 0 0 0 0 0
$8.30 SERIES -310 0 0 0 0 0 0 0 0
$9.125 SERIES -320 0 0 0 0 0 0 0 0
LONG-TERM DEBT (D)
BONDS 99,384,418 0 0 0 0 0 0 99,384,418
BONDS HELD BY TRUSTEE 0 0 0 0 0 0 0 0
OTHER LONG-TERM DEBT -700 38,002,600 29,896,250- 30,000,000 0 0 0 13,702,600 24,196,250
UNAMORT PREM ON DEBT -850 0 0 0 0 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0 0 0 0 0
----------- ----------- ----------- ---------- ---------- ----------- ---------- -----------
TOTAL CAPITALIZATION 302,715,473 157,855,578- 195,328,458 1,088,462 148,953 41,940,745 22,663,382 199,401,052
----------- ----------- ----------- ---------- ---------- ----------- ---------- -----------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 808,414 0 0 0 0 759,359 0 49,055
CURRENT MATURITIES -200 795,497 0 0 0 0 0 8,000 787,497
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 6,009,678 0 173,225 1,960- 0 558,567 420,826 4,859,020
ACCTS PAY TO ASSOC CO-320 2,499,202 14,186,166- 1,118,287 45,496 210,638 1,001,654 1,332,925 12,976,367
ACCRUED TAXES
FEDERAL INCOME TAXES -401 166,236 0 341,062 8,323- 341,079- 200,000 25,424- 0
STATE INCOME TAXES -450 442,991 0 481,008 0 16,571- 0 21,446- 0
OTHER ACCRUED TAXES -500 727,099 0 0 0 0 292,365 80,249 354,485
ACCRD DIVIDENDS & INTEREST
INTEREST ACCRUED -610 3,492,904 0 1,174,500 0 0 0 0 2,318,404
DIVIDENDS DECLARED -620 0 0 0 0 0 0 0 0
MATURED INTEREST -630 0 0 0 0 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 2,625,021 0 0 0 0 620,005 223,304 1,781,713
TAX COLLECTIONS PAY -920 0 0 0 0 0 0 0 0
MISC CURR & ACCR LIAB-930 4,471,560 0 1,288,262 0 0 1,499,407 802,388 881,503
----------- ----------- ----------- ---------- ---------- ----------- ---------- -----------
TOTAL CURRENT LIABILITIES 22,038,602 14,186,166- 4,576,344 35,213 147,012- 4,931,357 2,820,822 24,008,044
----------- ----------- ----------- ---------- ---------- ----------- ---------- -----------
CONTR IN AID 97,093,16930 0 0 0 0 0 14,310,409 82,782,760
ACCUM DEF INCOME TAXES -100 20,088,555 0 387,846 10,581- 0 0 1,733,826- 21,445,116
ACC DEF INV TAX CREDITS-200 1,356,410 0 0 0 0 0 0 1,356,410
OTHER
MINORITY INTEREST -900 8,388,154 8,388,154 0 0 0 0 0 0
CUST ADV FOR CONSTR -910 0 0 0 0 0 0 0 0
OTHER DEF CREDITS -920 11,326,360 0 74,624 0 0 5,881,871 0 5,369,866
LOST TIME RESERVE -930 0 0 0 0 0 0 0 0
----------- ----------- ----------- ---------- ---------- ----------- ---------- -----------
TOTAL DEFERRED CREDITS 138,252,648 8,388,154 462,470 10,581- 0 5,881,871 12,576,583 110,954,152
----------- ----------- ----------- ---------- ---------- ----------- ---------- -----------
TOTAL LIABILITY & CAPITAL 463,006,723 163,653,590- 200,367,272 1,113,094 1,941 52,753,973 38,060,787 334,363,248
=========== =========== =========== ========== ========== =========== ========== ===========
Exhibit A-1
Page 3 of 3
TOPEKA GROUP CONSOLIDATED BALANCE SHEET
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS TOPEKA GROUP ELAG FIBERCORE LAC HEATER SSU
------------ ------------ ------------ --------- ---------- ---------- ----------- ------------
REVENUE - WATER R300 60,877,817 0 0 0 0 0 9,504,693 51,373,124
- WATER MISC R380 3,821,911 0 273,198 2,228,767 0 0 332,402 987,544
- AFDC T100 236,678 0 0 0 0 0 0 236,678
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
TOTAL WATER OPERATIONS 64,936,406 0 273,198 2,228,767 0 0 9,837,095 52,597,346
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
- INVESTMENT T300 6,459,339 3,162,362- 8,404,888 88,814 0 0 113,876 1,014,124
- REAL ESTATE T711 19,557,485 0 0 0 0 19,557,485 0 0
- OTHER T530 200,550 0 200,550 0 0 0 0 0
- GAIN ON SALE T505 0 0 0 0 0 0 0 0
- EQUITY IN SUBS T200 1 15,106,725- 15,106,726 0 0 0 0 0
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
TOTAL INV AND OTHER INCOME 26,217,375 18,269,087- 23,712,164 88,814 0 19,557,485 113,876 1,014,124
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
TOTAL OPER REVENUE AND INCOME 91,153,781 18,269,087- 23,985,362 2,317,581 0 19,557,485 9,950,971 53,611,470
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
OPERATING EXPENSES
OPERATION E305,T512 26,367,268 0 0 1,217,089 0 5,509,431 3,272,352 16,368,396
MAINTENANCE E405 3,739,833 0 0 287,987 0 0 110,023 3,341,823
DEPRECIATION E500,T590 12,645,466 0 0 48,365 0 276,584 1,414,397 10,906,120
PROPERTY TAXES E610,T570 3,765,017 0 0 0 0 0 257,960 3,507,057
OTHER TAXES E620,E621 3,490,297 0 0 57,197 0 0 453,662 2,979,438
ADMIN AND GENERAL E310 27,012,193 0 2,224,114 296,562 0 10,620,516 2,054,876 11,816,125
MINORITY INTEREST T511 4,111,938 4,111,938 0 0 0 0 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 9,775,694 3,162,362- 3,132,000 4,123 0 26,022 1,131,367 8,644,544
OTHER INTEREST EXP I340 760,354 0 86,260 0 0 0 41,991 632,102
AMORT OF DEBT EXP I300 0 0 0 0 0 0 0 0
AFDC-DEBT I200 344,128- 0 0 0 0 0 0 344,128-
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 91,323,932 949,576 5,442,374 1,911,323 0 16,432,553 8,736,628 57,851,477
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
OPER INCOME FROM CONTIN OPER 170,151- 19,218,663- 18,542,988 406,258 0 3,124,932 1,214,343 4,240,007-
INCOME TAX EXP E700,T400,6,7 17,150,207 0 1,562,930- 149,540- 0 17,434,739 455,155- 1,883,092
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
INCOME FROM CONTINUING OPERS 16,980,056 19,218,663- 16,980,058 256,718 0 20,559,671 759,188 2,356,915-
NET INCOME 16,980,056 19,218,663- 16,980,058 256,718 0 20,559,671 759,188 2,356,915-
PREFERRED DIVIDENDS V100 0 0 0 0 0 0 0 0
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
EARNINGS AVAILABLE FOR COMMON 16,980,056 19,218,663- 16,980,058 256,718 0 20,559,671 759,188 2,356,915-
COMMON DIVIDENDS V200 0 0 0 0 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0 0 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0 0 0 0 0 0
---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
ENDING RETAINED EARNINGS 16,980,056 19,218,663- 16,980,058 256,718 0 20,559,671 759,188 2,356,915-
========== ========== ========== ========= ========== ========== ========== ==========
Exhibit A-2
Page 1 of 8
LEHIGH ACQUISITION CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
COMBINED
ENTITIES CONSOLIDATED
PURCHASE ACCOUNTING ADJUSTED FOR LEHIGH ELIMINATIONS LEHIGH
COMBINED ADJUSTMENTS PURCHASE ACQUISITION AND ACQUISITION
ENTITIES DR CR ADJUSTMENTS CORPORATION ADJUSTMENTS CORPORATION
----------- ---------- ---------- ------------ ----------- ----------- -----------
ASSETS
Cash and cash equivalents 6,824,477 6,824,477 127,548 6,952,025
Inventory and supplies 6,431 6,431 6,431
Residential construction in progress 931,849 931,849 931,849
Trade and miscellaneous accounts rec 656,422 656,422 656,422
Contracts receivable-postacquisition:
Homesites, net of allowance for
cancels 3,034,761 48,170 3,082,931 3,082,931
Timeshare 654,139 2,317 656,456 656,456
Commercial notes 4,411,292 4,411,292 4,411,292
----------- ---------- ---------- ----------- ---------- ----------- -----------
Total contracts receivable-postacq 8,100,192 50,487 8,150,679 8,150,679
----------- ---------- ---------- ----------- ---------- ----------- -----------
Contracts receivable-preacquisition 5,137,216 3,030,933 2,106,283 2,106,283
Due from affiliates:
Water and wastewater connections 2,932,932 2,932,932 2,932,932
Tax share 725,532 (82,900) 642,632
Other 14,661,738 14,661,738 (14,661,738)
----------- ---------- ---------- ----------- ---------- ----------- -----------
Total due from affiliates 17,594,670 17,594,670 725,532 (14,744,638) 3,575,564
----------- ---------- ---------- ----------- ---------- ----------- -----------
Investments/advances to subsidiaries 39,080,873 (39,080,873)
Property and equipment 5,236,196 2,573,157 7,809,353 2,225 7,811,578
Less accum depreciation (3,554,608) 50,580 2,203,304 (5,707,332) (556) (5,707,888)
Less bargain differential-PP&E 148,796 837,211 (688,415) (688,415)
----------- ---------- ---------- ----------- ---------- ----------- -----------
Net property and equipment 1,681,588 2,772,533 3,040,515 1,413,606 1,669 1,415,275
----------- ---------- ---------- ----------- ---------- ----------- -----------
Land, land improvements and CIP 32,781,641 2,697,412 35,479,053 35,479,053
Less bargain differential-land 3,122,500 26,983,215 (23,860,715) (23,860,715)
----------- ---------- ---------- ----------- ---------- ----------- -----------
Net land, land improvements 32,781,641 5,819,912 26,983,215 11,618,338 11,618,338
----------- ---------- ---------- ----------- ---------- ----------- -----------
Investment in joint venture 736,619 599,806 136,813 136,813
Deferred Income Tax 16,877,433 16,877,433
Other assets 337,434 337,434 (10,573) 326,861
----------- ---------- ---------- ----------- ---------- ----------- -----------
74,788,539 25,011,537 49,777,002 56,802,482 (53,825,511) 52,753,973
=========== ========== ========== =========== ========== =========== ===========
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 610,223 610,223 (2) 610,221
Customer Deposits 620,005 620,005 620,005
Accrued expenses:
Real estate taxes 292,365 292,365 292,365
Other 1,499,407 1,499,407 1,499,407
----------- ---------- ---------- ----------- ---------- ----------- -----------
Total accrued expenses 1,791,772 1,791,772 1,791,772
----------- ---------- ---------- ----------- ---------- ----------- -----------
Due to affiliates:
Utility fee credit 950,000 950,000 950,000
Tax share 82,900 82,900 (82,900)
Other 14,661,737 (14,661,737)
----------- ---------- ---------- ----------- ---------- ----------- -----------
Total due to affiliates 1,032,900 1,032,900 14,661,737 (14,744,637) 950,000
----------- ---------- ---------- ----------- ---------- ----------- -----------
Contingency reserves 4,828,777 4,828,777 4,828,777
Deferred income 227,051 702,250 929,301 929,301
Income taxes payable 200,000 200,000
Notes payable 759,359 759,359 759,359
Minority interest 123,793 123,793 123,793
Common stock and R/E (deficit):
Common stock 21,100 21,100 117 (21,100) 117
Capital in excess of par value 80,738,150 56,219,827 24,518,323 5,952,293 (24,518,323) 5,952,293
Retained earnings (deficit) (15,964,591) 30,506,040 14,541,449 35,988,335 (14,541,449) 35,988,335
----------- ---------- ---------- ----------- ---------- ----------- -----------
Total C/S and R/E (deficit) 64,794,659 56,219,827 30,506,040 39,080,872 41,940,745 (39,080,872) 41,940,745
----------- ---------- ---------- ----------- ---------- ----------- -----------
74,788,539 25,011,537 49,777,002 56,802,482 (53,825,511) 52,753,973
=========== ========== ========== =========== ========== =========== ===========
Exhibit A-2
Page 2 of 8
COMBINED ENTITIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
LEHIGH INTERLACHEN ATLAS TOTAL
CORPORATION AND LAKES SUNDOWNER CONSTRUCTION LRC OF SRC OF COMBINED
SUBSIDIARIES ESTATES PROPERTIE,INC. SERVICES GEORGIA FLORIDA ENTITIES
--------------- ------------- -------------- ------------ --------- -------- -----------
ASSETS
Cash and cash equivalents 6,749,755 45,566 29,156 6,824,477
Inventory and supplies 6,431 6,431
Residential construction in progress 931,849 931,849
Trade and miscellaneous accounts rec 593,052 29,568 33,802 656,422
Contracts receivable-postacquisition:
Homesites, net of allowance for
cancels 2,834,846 117,613 82,302 3,034,761
Timeshare 654,139 654,139
Commercial notes 4,411,292 4,411,292
----------- ------------- ------------- ----------- --------- -------- -----------
Total contracts receivable-postacq 7,900,277 117,613 82,302 8,100,192
----------- ------------- ------------- ----------- --------- -------- -----------
Contracts receivable-preacquisition 5,137,216 5,137,216
Due from affiliates:
Water and wastewater connections 2,932,932 2,932,932
Tax share
Other 14,005,218 251,406 91,640 313,474 14,661,738
----------- ------------- ------------- ----------- --------- -------- -----------
Total due from affiliates 16,938,150 251,406 91,640 313,474 17,594,670
----------- ------------- ------------- ----------- --------- -------- -----------
Investments/advances to subsidiaries
Property and equipment 5,236,196 5,236,196
Less accum depreciation (3,554,608) (3,554,608)
Less bargain differential-PP&E
----------- ------------- ------------- ----------- --------- -------- -----------
Net property and equipment 1,681,588 1,681,588
----------- ------------- ------------- ----------- --------- -------- -----------
Land, land improvements and CIP 32,722,335 59,306 32,781,641
Less bargain differential-land
----------- ------------- ------------- ----------- --------- -------- -----------
Net land, land improvements 32,722,335 59,306 32,781,641
----------- ------------- ------------- ----------- --------- -------- -----------
Investment in joint venture 734,867 1,752 736,619
Deferred Income Tax
Other assets 334,434 3,000 337,434
----------- ------------- ------------- ----------- --------- -------- -----------
73,729,954 444,153 296,206 318,226 74,788,539
=========== ============= ============= =========== ========= ======== ===========
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 606,321 3,902 610,223
Customer Deposits 615,700 1,373 2,932 620,005
Accrued expenses:
Real estate taxes 205,980 36,960 49,425 292,365
Other 1,494,411 4,419 577 1,499,407
----------- ------------- ------------- ----------- --------- -------- -----------
Total accrued expenses 1,700,391 41,379 50,002 1,791,772
----------- ------------- ------------- ----------- --------- -------- -----------
Due to affiliates:
Utility fee credit 950,000 950,000
Tax share 42,500 7,400 24,000 9,000 82,900
Other
----------- ------------- ------------- ----------- --------- -------- -----------
Total due to affiliates 992,500 7,400 24,000 9,000 1,032,900
----------- ------------- ------------- ----------- --------- -------- -----------
Contingency reserves 4,828,777 4,828,777
Deferred income 227,051 227,051
Income taxes payable
Notes payable 759,359 759,359
Minority interest 123,793 123,793
Common stock and R/E (deficit):
Common stock 500 20,000 500 100 21,100
Capital in excess of par value 71,290,534 2,089,678 7,249,487 108,451 80,738,150
Retained earnings (deficit) (7,414,972) (1,719,579) (7,030,715) 200,675 (15,964,591)
----------- ------------- ------------- ----------- --------- -------- -----------
Total C/S and R/E (deficit) 63,876,062 390,099 219,272 309,226 64,794,659
----------- ------------- ------------- ----------- --------- -------- -----------
73,729,954 444,153 296,206 318,226 74,788,539
=========== ============= ============= =========== ========= ======== ===========
Exhibit A-2
Page 3 of 8
LEHIGH CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
TOTAL LEHIGH
HOME AT LEHIGH OTHER LEHIGH CORPORATION
LEHIGH, INC. BUILDING CORPORATION LEHIGH AND
(98% ownership) SUPPLY, INC. SUBSIDIARIES CORPORATION ELIMINATIONS SUBSIDIARIES
--------------- ------------ ------------ ------------ ------------ ------------
ASSETS
Cash and cash equivalents 91,162 94,163 202,636 6,361,794 6,749,755
Inventory and supplies 6,431 6,431
Residential construction in progress 931,849 931,849
Trade and miscellaneous accounts rec 14,814 165,563 416,922 (4,247) 593,052
Contracts receivable-postacquisition:
Homesites, net of allowance for
cancels 23,600 2,811,246 2,834,846
Timeshare 654,139 654,139
Commercial notes 4,458,792 (47,500) 4,411,292
------------ ------------ ------------ ------------ ------------ ------------
Total contracts receivable-postacq 23,600 7,924,177 (47,500) 7,900,277
------------ ------------ ------------ ------------ ------------ ------------
Contracts receivable-preacquisition 5,137,216 5,137,216
Due from affiliates:
Water and wastewater connections 2,932,932 2,932,932
Tax share 65,300 13,900 208,500 (287,700)
Other 842,473 14,464,337 (1,301,592) 14,005,218
------------ ------------ ------------ ------------ ------------ ------------
Total due from affiliates 65,300 13,900 1,050,973 17,397,269 (1,589,292) 16,938,150
------------ ------------ ------------ ------------ ------------ ------------
Investments/advances to subsidiaries 35,854,660 (35,854,660)
Property and equipment 94,532 608,768 1,423,520 3,162,295 (52,919) 5,236,196
Less accum depreciation (49,253) (250,241) (1,164,995) (2,091,955) 1,836 (3,554,608)
Less bargain differential-PP&E
------------ ------------ ------------ ------------ ------------ ------------
Net property and equipment 45,279 358,527 258,525 1,070,340 (51,083) 1,681,588
------------ ------------ ------------ ------------ ------------ ------------
Land, land improvements and CIP 4,806,441 28,246,758 (330,864) 32,722,335
Less bargain differential-land
------------ ------------ ------------ ------------ ------------ ------------
Net land, land improvements 4,806,441 28,246,758 (330,864) 32,722,335
------------ ------------ ------------ ------------ ------------ ------------
Investment in joint venture (100,000) 834,867 734,867
Deferred Income Tax
Other assets 33,844 24,795 11,555 264,240 334,434
------------ ------------ ------------ ------------ ------------ ------------
1,167,434 506,199 6,419,293 103,514,674 (37,877,646) 73,729,954
============ ============ ============ ============ ============ ============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 95,622 6,407 43,574 460,718 606,321
Customer Deposits 610,318 10 5,372 615,700
Accrued expenses:
Real estate taxes 16,143 189,837 205,980
Other 43,911 28,253 41,173 1,385,321 (4,247) 1,494,411
------------ ------------ ------------ ------------ ------------ ------------
Total accrued expenses 43,911 28,253 57,316 1,575,158 (4,247) 1,700,391
------------ ------------ ------------ ------------ ------------ ------------
Due to affiliates:
Utility fee credit 950,000 950,000
Tax share 330,200 (287,700) 42,500
Other 165,670 954,110 181,813 (1,301,593)
------------ ------------ ------------ ------------ ------------ ------------
Total due to affiliates 165,670 954,110 181,813 1,280,200 (1,589,293) 992,500
------------ ------------ ------------ ------------ ------------ ------------
Contingency reserves 24,223 4,804,554 4,828,777
Deferred income 2,746 555,169 (330,864) 227,051
Income taxes payable
Notes payable 372,471 37,741 396,647 (47,500) 759,359
Minority interest (4,690) 153,330 (24,847) 123,793
Common stock and R/E (deficit):
Common stock 490 500 3,510 500 (4,500) 500
Capital in excess of par value 250,783 37,927 8,552,703 71,290,534 (8,841,413) 71,290,534
Retained earnings (deficit) (391,364) (558,739) (2,575,709) 23,145,822 (27,034,982) (7,414,972)
------------ ------------ ------------ ------------ ------------ ------------
Total C/S and R/E (deficit) (140,091) (520,312) 5,980,504 94,436,856 (35,880,895) 63,876,062
------------ ------------ ------------ ------------ ------------ ------------
1,167,434 506,199 6,419,293 103,514,674 (37,877,646) 73,729,954
============ ============ ============ ============ ============ ============
Exhibit A-2
Page 4 of 8
OTHER LEHIGH CORPORATION SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
NEWS-STAR ABLE LAND
LEHIGH PUBLICATIONS, SERVICES, ENTERPRISE TOTAL OTHER
LAND & CLIFFSIDE INC. INC. LEHIGH, INC. LEHIGH
INVESTMENT, PROPERTIES (60% (94% (80% CORPORATION
INC. INC. ownership) ownership) ownership) SUBSIDIARIES
------------- ----------- ------------- ----------- ----------- --------- ------------
ASSETS
Cash and cash equivalents 29,333 119,132 53,899 272 202,636
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 76,274 89,289 165,563
Contracts receivable-postacquisition:
Homesites, net of allowance for
cancels 23,600 23,600
Timeshare
Commercial notes
----------- --------- ---------- ----------- --------- ------- ------------
Total contracts receivable-postacq 23,600 23,600
----------- --------- ---------- ----------- --------- ------- ------------
Contracts receivable-preacquisition
Due from affiliates:
Water and wastewater connections
Tax share 66,200 104,200 38,000 100 208,500
Other 102 842,371 842,473
----------- --------- ---------- ----------- --------- ------- ------------
Total due from affiliates 66,302 946,571 38,000 100 1,050,973
----------- --------- ---------- ----------- --------- ------- ------------
Investments/advances to subsidiaries
Property and equipment 218,583 1,204,937 1,423,520
Less accum depreciation (128,698) (1,036,297) (1,164,995)
Less bargain differential-PP&E
----------- --------- ---------- ----------- --------- ------- ------------
Net property and equipment 89,885 168,640 258,525
----------- --------- ---------- ----------- --------- ------- ------------
Land, land improvements and CIP 4,112,264 694,177 4,806,441
Less bargain differential-land
----------- --------- ---------- ----------- --------- ------- ------------
Net land, land improvements 4,112,264 694,177 4,806,441
----------- --------- ---------- ----------- --------- ------- ------------
Investment in joint venture (100,000) (100,000)
Deferred Income Tax
Other assets 835 8,720 2,000 11,555
----------- --------- ---------- ----------- --------- ------- ------------
4,132,334 946,571 294,011 351,828 694,549 6,419,293
=========== ========= ========== =========== ========= ======= ============
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 8,086 5,195 17,374 12,919 43,574
Customer Deposits 10 10
Accrued expenses:
Real estate taxes 16,143 16,143
Other 3,205 7,337 30,631 41,173
----------- --------- ---------- ---------- --------- ------- ------------
Total accrued expenses 7,337 46,774 57,316
----------- --------- ---------- ---------- --------- ------- ------------
Due to affiliates:
Utility fee credit
Tax share
Other 1,915 179,898 181,813
----------- --------- ---------- ---------- -------- ------ -----------
Total due to affiliates 1,915 179,898 181,813
----------- --------- ---------- ---------- -------- ------ -----------
Contingency reserves
Deferred income 2,746 2,746
Income taxes payable
Notes payable
Minority interest 130,369 8,067 14,894 153,330
Common stock and R/E (deficit):
Common stock 500 1,000 1,500 470 40 3,510
Capital in excess of par value 6,853,938 909,424 32,187 90,111 667,043 8,552,703
Retained earnings (deficit) (2,733,395) 36,147 112,762 9,134 (357) (2,575,709)
----------- --------- ---------- ---------- -------- ------ -----------
Total C/S and R/E (deficit) 4,121,043 946,571 146,449 99,715 666,726 5,980,504
----------- --------- ---------- ---------- -------- ------ -----------
4,132,334 946,571 294,011 351,828 694,549 6,419,293
=========== ========= ========== ========== ======== ====== ===========
Exhibit A-2
Page 5 of 8
LEHIGH ACQUISITION CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
COMBINED
ENTITIES CONSOLIDATED
ADJUSTED FOR LEHIGH ELIMINATIONS LEHIGH
COMBINED PURCHASE ACCOUNTING PURCHASE ACQUISITION AND ACQUISITION
ENTITIES DR CR ADJUSTMENTS CORPORATION ADJUSTMENTS CORPORATION
----------- ---------- ---------- ------------ ----------- ------------ ------------
Revenues:
Lots with roads only 1,598,332 1,598,332 1,598,332
Builder lots (serviced) 924,787 924,787 924,787
Less estimated uncollectible sales (168,436) (168,436) (168,436)
----------- --------- ---------- ----------- ----------- ----------- -----------
Net homesite sales 2,354,683 2,354,683 2,354,683
----------- --------- ---------- ----------- ----------- ----------- -----------
Commercial/bulk land sales 4,275,949 4,275,949 4,275,949
Timeshare sales 68,735 68,735 68,735
Residential sales 2,605,011 2,605,011 2,605,011
Discount earned on acquired
receivables 1,272,603 2,835,637 4,108,240 4,108,240
Bargain differential earned:
Lots with roads only 558,885 558,885 558,885
Builder lots (serviced) 258,586 258,586 258,586
Timeshare
Commercial/bulk land 1,055,085 1,055,085 1,055,085
Receivables
Property and equipment 148,796 148,796 148,796
----------- --------- ---------- ----------- ----------- ----------- -----------
Total bargain differential
earned 2,021,352 2,021,352 2,021,352
----------- --------- ---------- ----------- ----------- ----------- -----------
Finance income 1,027,262 1,027,262 4,058 1,031,320
Operating revenues - subsidiaries 2,501,808 3,576 2,498,232 2,498,232
Other revenues 767,105 66,858 833,963 (240,000) 593,963
----------- --------- ---------- ----------- ----------- ----------- -----------
Total revenues 14,873,156 3,576 4,923,847 19,793,427 4,058 (240,000) 19,557,485
----------- --------- ---------- ----------- ----------- ----------- -----------
Cost of Sales:
Lots with roads only 569,405 146,718 716,123 716,123
Builder lots (serviced) 394,683 201,160 595,843 595,843
Commercial/bulk land sales 1,657,274 126,092 1,783,366 1,783,366
Timeshare sales 13,141 13,141
Residential sales 2,414,099 2,414,099 2,414,099
----------- --------- ---------- ----------- ----------- ----------- -----------
Total cost of sales 5,048,602 473,970 13,141 5,509,431 5,509,431
----------- --------- ---------- ----------- ----------- ----------- -----------
Expenses:
Selling expenses 2,136,423 2,136,423 2,136,423
Property taxes 1,293,834 1,293,834 1,293,834
General and administrative expenses 2,802,341 84,261 2,718,080 179,691 2,897,771
Operating expenses - subsidiaries 2,478,210 85,174 2,393,036 (240,000) 2,153,036
Other expenses 1,177,188 928,785 2,105,973 2,908 2,108,881
Depreciation 326,903 50,580 276,323 261 276,584
Interest expense 26,022 26,022 26,022
----------- --------- ---------- ----------- ----------- ----------- -----------
Total expenses 10,240,921 928,785 220,015 10,949,691 182,860 (240,000) 10,892,551
----------- --------- ---------- ----------- ----------- ----------- -----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries (416,367) 1,406,331 5,157,003 3,334,305 (178,802) 3,155,503
Provision for (reduction) income taxes:
Current (1,263,708) (1,263,708) (693,206) (1,956,914)
Deferred 1,399,608 1,399,608 (16,877,433) (15,477,825)
----------- --------- ---------- ----------- ----------- ----------- -----------
135,900 135,900 (17,570,639) (17,434,739)
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries (552,267) 1,406,331 5,157,003 3,198,405 17,391,837 20,590,242
Minority interest (30,571) (30,571) (30,571)
----------- --------- ---------- ----------- ----------- ----------- -----------
Net income (loss) before equity in
earnings of consolidated subsidiaries (582,838) 1,406,331 5,157,003 3,167,834 17,391,837 20,559,671
Equity in earnings of subsidiaries 3,167,834 (3,167,834)
----------- --------- ---------- ----------- ----------- ----------- -----------
Net income (loss) (582,838) 1,406,331 5,157,003 3,167,834 20,559,671 (3,167,834) 20,559,671
R/E (deficit) begin of period (11,098,565) 26,755,368 15,656,803 20,178,664 (15,656,803) 20,178,664
Dividends from (advances to) subs (4,283,188) (4,283,188) (4,750,000) 4,283,188 (4,750,000)
----------- --------- ---------- ----------- ----------- ----------- -----------
R/E (deficit) end of period (15,964,591) 30,506,040 14,541,449 35,988,335 (14,541,449) 35,988,335
=========== ========= ========== =========== =========== =========== ===========
Exhibit A-2
Page 6 of 8
COMBINED ENTITIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
LEHIGH ATLAS
CORPORATION INTERLACHEN SUNDOWNER CONSTRUC- TOTAL
AND LAKES PROPERTIES, TION LRC OF SRC OF COMBINED
SUBSIDIARIES ESTATES INC. SERVICES GEORGIA FLORIDA ENTITIES
------------ ----------- ----------- --------- -------- ---------- -----------
Revenues:
Lots with roads only 1,598,332 1,598,332
Builder lots (serviced) 924,787 924,787
Less estimated uncollectible sales (168,436) (168,436)
----------- ---------- ---------- ------- -------- ---------- -----------
Net homesite sales 2,354,683 2,354,683
----------- ---------- ---------- ------- -------- ---------- -----------
Commercial/bulk land sales 4,275,949 4,275,949
Timeshare sales 68,735 68,735
Residential sales 2,605,011 2,605,011
Discount earned on acquired receivables 1,012,012 119,724 140,867 1,272,603
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
----------- ---------- ---------- ------- -------- ---------- -----------
Total bargain differential earned
----------- ---------- ---------- ------- -------- ---------- -----------
Finance income 990,858 21,521 14,883 1,027,262
Operating revenues - subsidiaries 2,271,020 155,051 75,737 2,501,808
Other revenues (480,974) 683,087 564,992 767,105
----------- ---------- ---------- ------- -------- ---------- -----------
Total revenues 13,097,294 979,383 796,479 14,873,156
----------- ---------- ---------- ------- -------- ---------- -----------
Cost of Sales:
Lots with roads only 569,405 569,405
Builder lots (serviced) 394,683 394,683
Commercial/bulk land sales 1,657,274 1,657,274
Timeshare sales 13,141 13,141
Residential sales 2,414,099 2,414,099
----------- ---------- ---------- ------- -------- ---------- -----------
Total cost of sales 5,048,602 5,048,602
----------- ---------- ---------- ------- -------- ---------- -----------
Expenses:
Selling expenses 2,090,372 41,002 5,049 2,136,423
Property taxes 1,282,937 7,273 3,624 1,293,834
General and administrative expenses 2,796,904 4,245 1,192 2,802,341
Operating expenses - subsidiaries 2,150,036 192,673 132,501 3,000 2,478,210
Other expenses 1,177,188 1,177,188
Depreciation 326,903 326,903
Interest expense 26,022 26,022
----------- ---------- ---------- ------- -------- ---------- -----------
Total expenses 9,850,362 245,193 142,366 3,000 10,240,921
----------- ---------- ---------- ------- -------- ---------- -----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries (1,801,670) 734,190 654,113 (3,000) (416,367)
Provision for (reduction) income taxes:
Current (1,198,657) (54,097) (19,954) 9,000 (1,263,708)
Deferred 812,708 325,000 261,900 1,399,608
----------- ---------- ---------- ------- -------- ---------- -----------
(385,949) 270,903 241,946 9,000 135,900
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries (1,415,721) 463,287 412,167 (12,000) (552,267)
Minority interest (30,571) (30,571)
----------- ---------- ---------- ------- -------- ---------- -----------
Net income (loss) before equity in
earnings of consolidated subsidiaries (1,446,292) 463,287 412,167 (12,000) (582,838)
Equity in earnings of subsidiaries
----------- ---------- ---------- ------- -------- ---------- -----------
Net income (loss) (1,446,292) 463,287 412,167 (12,000) (582,838)
R/E (deficit) begin of period (3,218,680) (1,182,866) (6,442,882) (16,772) (450,040) 212,675 (11,098,565)
Dividends from (advances to) subs (2,750,000) (1,000,000) (1,000,000) 16,772 450,040 (4,283,188)
----------- ---------- ---------- ------- -------- ---------- -----------
R/E (deficit) end of period (7,414,972) (1,719,579) (7,030,715) 200,675 (15,964,591)
=========== ========== ========== ======= ======== ========== ===========
Exhibit A-2
Page 7 of 8
LEHIGH CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
HOME AT LEHIGH OTHER TOTAL LEHIGH
LEHIGH, INC. BUILDING LEHIGH CORPORATION
(98% SUPPLY, CORPORATION LEHIGH AND
ownership) INC. SUBSIDIARIES CORPORATION ELIMINATIONS SUBSIDIARIES
------------ -------- ------------ ----------- ------------ ------------
Revenues:
Lots with roads only 1,598,332 1,598,332
Builder lots (serviced) 46,506 878,281 924,787
Less estimated uncollectible sales (168,436) (168,436)
---------- -------- ---------- ----------- ----------- -----------
Net homesite sales 46,506 2,308,177 2,354,683
---------- -------- ---------- ----------- ----------- -----------
Commercial/bulk land sales 4,275,949 4,275,949
Timeshare sales 68,735 68,735
Residential sales 2,605,011 2,605,011
Discount earned on acquired receivables 1,012,012 1,012,012
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
---------- -------- ---------- ----------- ----------- -----------
Total bargain differential earned
---------- -------- ---------- ----------- ----------- -----------
Finance income 1,009,882 (19,024) 990,858
Operating revenues - subsidiaries 46,383 805,402 1,719,367 (300,132) 2,271,020
Other revenues (100,000) (263,676) (117,298) (480,974)
---------- -------- ---------- ----------- ----------- -----------
Total revenues 2,697,900 805,402 1,619,367 8,411,079 (436,454) 13,097,294
---------- -------- ---------- ----------- ----------- -----------
Cost of Sales:
Lots with roads only 569,405 569,405
Builder lots (serviced) 394,683 394,683
Commercial/bulk land sales 1,657,274 1,657,274
Timeshare sales 13,141 13,141
Residential sales 2,414,099 2,414,099
---------- -------- ---------- ----------- ----------- -----------
Total cost of sales 2,414,099 2,634,503 5,048,602
---------- -------- ---------- ----------- ----------- -----------
Expenses:
Selling expenses 138,765 162,560 1,789,047 2,090,372
Property taxes 19,163 66,088 1,197,686 1,282,937
General and administrative expenses 305,533 2,491,371 2,796,904
Operating expenses - subsidiaries 941,357 1,508,811 (300,132) 2,150,036
Other expenses 1,294,486 (117,298) 1,177,188
Depreciation 39,692 32,405 71,302 185,340 (1,836) 326,903
Interest expense 5,832 37,722 1,492 (19,024) 26,022
---------- -------- ---------- ----------- ----------- -----------
Total expenses 483,990 998,757 1,846,483 6,959,422 (438,290) 9,850,362
---------- -------- ---------- ----------- ----------- -----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries (200,189) (193,355) (227,116) (1,182,846) 1,836 (1,801,670)
Provision for (reduction) income taxes:
Current (65,300) (13,900) (155,500) (963,957) (1,198,657)
Deferred 812,708 812,708
---------- -------- ---------- ----------- ----------- -----------
(65,300) (13,900) (155,500) (151,249) (385,949)
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries (134,889) (179,455) (71,616) (1,031,597) 1,836 (1,415,721)
Minority interest 4,004 (34,575) (30,571)
---------- -------- ---------- ----------- ----------- -----------
Net income (loss) before equity in
earnings of consolidated subsidiaries (130,885) (179,455) (106,191) (1,031,597) 1,836 (1,446,292)
Equity in earnings of subsidiaries 3,335,977 (3,335,977)
---------- -------- ---------- ----------- ----------- -----------
Net income (loss) (130,885) (179,455) (106,191) 2,304,380 (3,334,141) (1,446,292)
R/E (deficit) begin of period (260,479) (379,284) (2,407,400) 23,591,442 (23,762,959) (3,218,680)
Dividends from (advances to) subs (62,118) (2,750,000) 62,118 (2,750,000)
---------- -------- ---------- ----------- ----------- -----------
R/E (deficit) end of period (391,364) (558,739) (2,575,709) 23,145,822 (27,034,982) (7,414,972)
========== ======== ========== =========== =========== ===========
Exhibit A-2
Page 8 of 8
OTHER LEHIGH CORPORATION SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-Dec-95
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-95
NEWS-STAR ABLE LAND
LEHIGH PUBLICATIONS SERVICES, ENTERPRISE TOTAL OTHER
LAND & CLIFFSIDE INC. INC. LEHIGH, INC. LEHIGH
INVESTMENT, PROPERTIES (60% (94% (80% CORPORATION
INC. INC. ownership) ownership) ownership) 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 39,500 5,800 755,401 918,666 1,719,367
Other revenues (100,000) (100,000)
---------- -------- -------- -------- ---------- ---------- ----------
Total revenues (60,500) 5,800 755,401 918,666 1,619,367
---------- -------- -------- -------- ---------- ---------- ----------
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 162,560 162,560
Property taxes 48,508 2,751 14,829 66,088
General and administrative expenses
Operating expenses - subsidiaries 11,568 3,264 570,558 923,206 215 1,508,811
Other expenses
Depreciation 27,266 44,036 71,302
Interest expense 22,905 269 717 13,831 37,722
---------- -------- -------- -------- ---------- ---------- ----------
Total expenses 245,541 3,533 601,292 995,902 215 1,846,483
---------- -------- -------- -------- ---------- ---------- ----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries (306,041) 2,267 154,109 (77,236) (215) (227,116)
Provision for (reduction) income taxes:
Current (66,200) (104,200) 53,000 (38,000) (100) (155,500)
Deferred
---------- -------- -------- -------- ---------- ---------- ----------
(66,200) (104,200) 53,000 (38,000) (100) (155,500)
Income (loss) before minority
interest and equity in earnings of
consolidated subsidiaries (239,841) 106,467 101,109 (39,236) (115) (71,616)
Minority interest (37,354) 2,736 43 (34,575)
---------- -------- -------- -------- ---------- ---------- ----------
Net income (loss) before equity in
earnings of consolidated subsidiaries (239,841) 106,467 63,755 (36,500) (72) (106,191)
Equity in earnings of subsidiaries
---------- -------- -------- -------- ---------- ---------- ----------
Net income (loss) (239,841) 106,467 63,755 (36,500) (72) (106,191)
R/E (deficit) begin of period (2,493,554) (70,320) 111,125 45,634 (285) (2,407,400)
Dividends from (advances to) subs (62,118) (62,118)
---------- -------- -------- -------- ---------- ---------- ----------
R/E (deficit) end of period (2,733,395) 36,147 112,762 9,134 (357) (2,575,709)
========== ======== ======== ======== ========== ========== ==========
Exhibit A-3
Page 1 of 3
HEATER UTILITIES, INC.
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1995
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER ELIMINATIONS TOTAL
ASSETS
PROPERTY AND EQUIPMENT
Utility plant 35,660,979 8,269,964 7,417,632 1,350,319 52,698,894
Non utility property 40,295 40,295
----------- ---------- ---------- ---------- ----------- -----------
35,701,274 8,269,964 7,417,632 1,350,319 0 52,739,189
----------- ---------- ---------- ---------- ----------- -----------
Less:
Acquisition adjustment (net) (4,728,591) 55,970 71,509 (115,456) (4,716,568)
Accumulated depreciation (9,776,935) (2,087,686) (2,231,806) (355,258) (14,451,685)
----------- ---------- ---------- ---------- ----------- -----------
(14,505,526) (2,031,715) (2,160,297) (470,714) 0 (19,168,253)
----------- ---------- ---------- ---------- ----------- -----------
INVESTMENTS
Other Investments 154,962 154,962
Investments In Subs 3,379,082 (3,379,082) 0
----------- ---------- ---------- ---------- ----------- -----------
3,534,043 0 0 0 (3,379,082) 154,962
----------- ---------- ---------- ---------- ----------- -----------
CURRENT ASSETS
Cash 683,279 1,968 4,355 5772 695,374
Working funds 4,859 805 5,664
Investment in CD's 323,964 100,284 30,000 50,000 504,248
Customer accounts receivable 611,902 214,520 169,041 38,688 1,034,151
less allowances for doubtful accounts (21,548) (5,648) (2,146) (1,853) (31,193)
Notes receivable 4,539,127 13,148 8,954 (4,507,413) 53,816
Other accounts receivable 105,277 562 3,689 0 35,082 144,610
Accts. receivable from Assoc. Companies 428,736 (428,736) 0
Installation materials and supplies 336,586 37,731 31,538 11,661 417,516
Prepaid expenses 894,726 423,075 141,262 48,300 1,507,363
Other current and accrued assets 950 950
----------- ---------- ---------- ---------- ----------- -----------
TOTAL CURRENT ASSETS 7,906,908 785,638 387,644 153,374 (4,901,067) 4,332,498
----------- ---------- ---------- ---------- ----------- -----------
REGULATORY ASSETS 1,320 1,070 2,390
TOTAL ASSETS 32,636,698 7,023,887 5,646,299 1,034,050 (8,280,148) 38,060,785
=========== ========== ========== ========== =========== ===========
Exhibit A-3
Page 2 of 3
HEATER UTILITIES, INC.
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1995
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER 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 13,500 1,000 7,500 1,000 (9,500) 13,500
Additional paid in capital 5,826,750 2,119,446 213,428 464,864 (2,797,738) 5,826,750
Retained Earnings 3,073,044 (210,050) 933,145 (103,768) (571,843) 3,120,528
----------- ---------- ---------- ---------- ----------- -----------
8,913,294 1,910,396 1,154,074 362,096 (3,379,082) 8,960,778
LONG-TERM DEBT 13,702,600 2,578,526 1,400,961 527,926 (4,507,413) 13,702,600
CURRENT LIABILITIES
Accounts payable to vendors 949,076 192,341 75,775 23,023 1,240,216
Accts. payable to Assoc. Companies 1,083 (88,595) 472,703 8,463 (393,654) 0
Accounts payable to MP&L 513,538 0 0 0 513,538
Income taxes payable - Federal (115,249) 76,483 21,282 (7,941) 0 (25,424)
Income taxes payable - State (37,448) 15,636 191 175 (21,446)
Taxes other than income 56,574 4,067 16,503 3,105 80,249
Customer deposits 70,440 117 152,738 9 223,304
Other accrued expenses 475,151 272,543 64,112 1,778 813,585
Current portion of long-term debt 8,000 8,000
----------- ---------- ---------- ---------- ----------- -----------
TOTAL CURRENT LIABILITIES 1,921,165 472,592 803,305 28,613 (393,654) 2,832,021
C.I.A.C 9,605,789 2,078,710 2,536,381 89,529 14,310,409
ACCUM. DEFERRED INC. TAXES (1,510,371) (13,558) (250,113) 25,521 (1,748,521)
REGULATORY LIABILITIES 4,221 (2,779) 1,692 364 3,498
----------- ---------- ---------- ---------- ----------- -----------
TOTAL LIABILITIES 32,636,698 7,023,887 5,646,299 1,034,050 (8,280,148) 38,060,785
=========== ========== ========== ========== =========== ===========
Exhibit A-3
Page 3 of 3
HEATER UTILITIES, INC.
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1995
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER TOTAL
Operating Revenues
Water $5,591,312 $ 747,922 $1,446,321 $ 345,494 $8,131,049
Sewer 501,454 548,088 1,049,542
Other 130,762 78,676 86,845 27,818 324,101
---------- ---------- ---------- --------- ----------
Total Operating Revenues 6,223,528 1,374,687 1,533,166 373,312 9,504,693
---------- ---------- ---------- --------- ----------
Operating Revenue Deductions
Operations and Maintenance 2,233,998 494,100 450,734 160,897 3,339,729
Administrative and General 1,304,942 238,878 399,406 111,650 2,054,876
Taxes Other Than Income 324,348 31,007 88,189 10,118 453,662
Property Taxes 121,937 95,897 20,516 19,609 257,960
Depreciation 1,006,177 176,358 184,133 47,728 1,414,397
---------- ---------- ---------- --------- ----------
Total Operating Revenue Deductions 4,991,403 1,036,240 1,142,979 350,003 7,520,624
---------- ---------- ---------- --------- ----------
Income From Operations 1,232,126 338,446 390,187 23,309 1,984,068
---------- ---------- ---------- --------- ----------
Other Income
Interest Income 72,370 23,924 10,984 6598 113,876
Other Non-Utility income 242,218 37,830 49,093 3261 332,402
Other Income Deductions
Interest Expense 764,132 234,559 126,644 48,023 1,173,358
Other Non-Utility Deductions 38,066 1,580 2,906 95 42,646
---------- ---------- ---------- --------- ----------
Total Other Income and Income Deductions 487,610 174,384 69,473 38,259 769,727
---------- ---------- ---------- --------- ----------
Net Income (Loss) Before Income Taxes 744,516 164,062 320,714 (14,950) 1,214,342
Estimated Income Taxes 290,126 41,747 134,237 (10,955) 455,155
Net Profit (Loss) $ 454,389 $ 122,315 $ 186,477 $ (3,995) $ 759,186
========== ========== ========== ========= ==========
Exhibit A-4
Page 1 of 2
ADESA CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS ADHD ADSA
------------- ------------ ------------- ------------
ASSETS
CURRENT ASSETS (A)
CASH -110 20,143,001 0 1 20,143,000
ACCOUNTS RECEIVABLE
MINNESOTA POWER -432 452,501 452,500- 452,501 452,500
ADESA -431 1- 597,365- 597,364 0
OTHER -409 0 0 0 0
TRADE -321 75,345,000 0 0 75,345,000
ALLOWANCE-DOUBT ACCTS-322 2,418,000- 0 0 2,418,000-
INVENTORY -700 4,332,000 0 0 4,332,000
NOTES RECEIVABLE -310 0 20,000,000- 20,000,000 0
PREPAYMENTS -700 2,699,325 0 62,325 2,637,000
OTHER CURRENT ASSETS -900 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 100,553,826 21,049,865- 21,112,191 100,491,500
INVESTMENTS IN SUB -N200 0 171,204,078- 171,204,078 0
AUTO PLANT - NET -N550-N600 85,313,000 0 0 85,313,000
CWIP -U711 38,319,000 0 0 38,319,000
DEFERRED COST -H200 363,000 0 0 363,000
GOODWILL -N701 120,159,483 0 413,483 119,746,000
GOODWILL AMORTIZATION -N710 1,509,000- 0 0 1,509,000-
INTANGIBLE ASSETS -N703 13,898,000 0 0 13,898,000
INTANGIBLE AMORTIZATION -N711 802,000- 0 0 802,000-
------------- ------------ ------------- ------------
TOTAL ASSETS 356,295,309 192,253,943- 192,729,752 355,819,500
============= ============ ============= ============
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES (L)
ACCOUNTS PAYABLE
ADESA -321 0 21,049,865- 452,500 20,597,365
MINNESOTA POWER -322 1,053,257 0 1,053,257 0
OTHER -310 42,514,484 0 0 42,514,484
CURRENT MATURITIES -200 5,173,000 0 0 5,173,000
NOTES PAYABLE -100 32,415,000 0 0 32,415,000
ACC INCOME TAXES -401-450 259,420- 0 55,420- 204,000-
ACCRUED OTH LIAB -930 4,734,000 0 0 4,734,000
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 85,630,321 21,049,865- 1,450,337 105,229,849
LONG TERM DEBT -D700 56,781,000 0 0 56,781,000
DEFFERED INCOME TAXES -F100 1,230,000 0 0 1,230,000
MINORITY INTEREST -F900 21,551,572 20,051,572 0 1,500,000
------------- ------------ ------------- ------------
TOTAL LIABILITIES 165,192,893 998,293- 1,450,337 164,740,849
------------- ------------ ------------- ------------
STOCKHOLDER'S EQUITY
COMMON STOCK, WITHOUT PAR
XXXX SHARES AUTHORIZED
ISSUED AND OUTST -C090 191,317,310 190,590,651- 191,317,310 190,590,651
RET EARNINGS -C400-INCELIM 37,894- 664,999- 37,895- 665,000
CUM TRANSLATION ADJ -216 177,000- 0 0 177,000-
------------- ------------ ------------- ------------
TOTAL STOCKHOLDER'S EQ 191,102,416 191,255,650- 191,279,415 191,078,651
------------- ------------ ------------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 356,295,309 192,253,943- 192,729,752 355,819,500
============= ============ ============= ============
Exhibit A-4
Page 2 of 2
ADESA CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS ADHD ADSA
------------ ------------ ------------ ------------
INCOME
AUTO REDISTRIBUTION -T900 61,254,000 0 0 61,254,000
EQUITY IN SUB EARNINGS-T200 1 300,251- 300,252 0
INTEREST -T300 306,000 305,104- 305,104 306,000
MISCELLANEOUS -T500 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INCOME 61,560,001 605,355- 605,356 61,560,000
------------ ------------ ------------ ------------
EXPENSES
DIRECT AUCTION -T512 25,173,000 0 0 25,173,000
MAINTENANCE -E405 796,000 0 0 796,000
PROPERTY TAXES -E610 824,000 0 0 824,000
DEPRECIATION/AMORT -T590 4,367,000 0 0 4,367,000
INTEREST I100-I340 674,896 305,104- 0 980,000
ADM AND GENERAL -E310 28,155,672 0 698,672 27,457,000
------------ ------------ ------------ ------------
TOTAL EXPENSES 59,990,568 305,104- 698,672 59,597,000
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES 1,569,433 300,251- 93,316- 1,963,000
MINORITY INTEREST -T511 364,748- 364,748- 0 0
INC TX (EXP)BEN E700-T400/600 1,242,580- 0 55,420 1,298,000-
------------ ------------ ------------ ------------
NET INCOME (LOSS) 37,895- 664,999- 37,896- 665,000
============ ============ ============ ============
Exhibit A-5
Page 1 of 1
ADESA CORPORATION
Consolidating financial statements for ADESA Corporation have been excluded from
this exhibit due to the competitive nature of the information.
Exhibit A-6
Page 1 of 2
RENDFIELD CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS REND UTIL
------------- ------------ ------------- ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 468,230 0 468,230 0
ACCUM DEPR-NONUTIL-600 0 0 0 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 5,708,187 5,708,187- 0
------------- ------------ ------------- ------------
TOTAL NONU PROP & INVEST 468,230 5,708,187 5,239,957- 0
------------- ------------ ------------- ------------
CURRENT ASSETS (A)
CASH
CASH -110 2,362 0 2,362 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 0 0 0 0
ACCTS REC FROM ASSOC -432 7,802,675 17,115,320- 19,016,925 5,901,070
OTHER CURRENT ASSETS -900 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 7,805,037 17,115,320- 19,019,287 5,901,070
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES H-254 171,062 0 171,062 0
OTHER -200 11,713 0 11,713 0
------------- ------------ ------------- ------------
TOTAL DEFERRED DEDITS 182,775 0 182,775 0
------------- ------------ ------------- ------------
TOTAL ASSETS 8,456,042 11,407,133- 13,962,105 5,901,070
============= ============ ============= ============
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 11,432,534- 12,105,687 11,432,534- 12,105,687-
LONG-TERM DEBT D-700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CAPITALIZATION 6,945,034- 5,708,187 6,945,034- 5,708,187-
------------- ------------ ------------- ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 0 0 0 0
ACCOUNTS PAYABLE 194,924 0 194,924 0
ACCOUNTS PAY TO ASSOC-322 15,705,073 17,115,320- 21,606,143 11,214,250
ACCRUED TAXES
FEDERAL INCOME TAXES -401 278,780 0 2,274,330 1,995,550-
STATE INCOME TAXES -450 786,037- 0 235,990 1,022,027-
OTHER ACCRUED TAXES -500 6,877 0 6,877 0
MISC CURRENT LIAB -930 0 0 3,412,584- 3,412,584
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIE 15,399,617 17,115,320- 20,905,680 11,609,257
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES F-100 1,459 0 1,459 0
------------- ------------ ------------- ------------
TOTAL LIAB & CAPITALIZATION 8,456,042 11,407,133- 13,962,105 5,901,070
============= ============ ============= ============
Exhibit A-6
Page 2 of 2
RENDFIELD CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS REND UTIL
------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 0 5,143,558 5,143,558- 0
ALLOW FOR FUNDS-EQUITY -100 0 0 0 0
INVESTMENT INCOME -300 153,035 0 7,514 145,522
EARNINGS FROM REACHALL -542 5,615,472- 0 2,912,584 8,528,056-
ALLOW-GAIN ON CAP SALE -543 0 0 0 0
OTHER MISCELLANEOUS INC-500 261,095- 0 35,212- 225,882-
INCOME TAXES - INVEST -400 63,310- 0 3,110- 60,200-
- MISC -600 2,860,790 0 827,061- 3,687,851
------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 2,926,052- 5,143,558 3,088,843- 4,980,765-
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
INCOME BEFORE INTEREST CHARGE 2,926,052- 5,143,558 3,088,843- 4,980,765-
------------ ------------ ------------ ------------
OTHER INTEREST EXPENSE 1,041,519 0 878,727 162,792
------------ ------------ ------------ ------------
NET INCOME 3,967,571- 5,143,558 3,967,570- 5,143,557-
============ ============ ============ ============
Exhibit A-7
Page 1 of 2
SYNERTEC CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS SYNR CNSR
------------- ------------ ------------- ------------
ASSETS
CURRENT ASSETS (A)
CASH -110 673,247 0 673,247 0
RESTRICTED CASH -115 0 0 0 0
ACCOUNTS RECEIVABLE
MINNESOTA POWER -433 19,580,500 0 19,580,500 0
SUP REC FIB CORP -436 0 0 0 0
OTHER -409 20,277 0 20,277 0
NOTES RECEIVABLE - SRF -310 0 0 0 0
INVENTORY -610 0 0 0 0
PREPAYMENTS -700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 20,274,024 0 20,274,024 0
INVESTMENTS IN SUB -N200 0 0 0 0
LEASE RECEIVABLE -N950 0 0 0 0
DEFERRED COST -H200 0 0 0 0
CWIP AND OTH ASSETS -N100-600 7,401 0 7,401 0
------------- ------------ ------------- ------------
TOTAL ASSETS 20,281,425 0 20,281,425 0
============= ============ ============= ============
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES (L)
ACCOUNTS PAYABLE
MINNESOTA POWER -321 13,830,253 0 13,830,253 0
SUP REC FIB CORP -322 0 0 0 0
OTHER -310 0 0 0 0
CURRENT MATURITIES -200 0 0 0 0
NOTES PAY-LSPI FIBER -100 0 0 0 0
NOTES PAYABLE - MP -101 0 0 0 0
ACC INCOME TAXES -401-450 1,750,034 0 1,750,034 0
ACCRUED OTHER TAXES -500 0 0 0 0
ACCRUED INT PAY -610 0 0 0 0
ACCRUED OTH LIAB -930 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 15,580,287 0 15,580,287 0
LONG TERM DEBT -D700 0 0 0 0
DEFFERED INCOME TAXES -F100 1,762 0 1,762 0
MINORITY INTEREST -F900 0 0 0 0
------------- ------------ ------------- ------------
TOTAL LIABILITIES 15,582,049 0 15,582,049 0
------------- ------------ ------------- ------------
STOCKHOLDER'S EQUITY
COMMON STOCK, WITHOUT PAR
5000 SHARES AUTHORIZED
ISSUED AND OUTST -C090 5,074,217 0 5,074,217 0
RET EARNINGS -C400-INCELIM 374,841- 0 374,841- 0
------------- ------------ ------------- ------------
TOTAL STOCKHOLDER'S EQ 4,699,376 0 4,699,376 0
------------- ------------ ------------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 20,281,425 0 20,281,425 0
============= ============ ============= ============
Exhibit A-7
Page 2 of 2
SYNERTEC CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS SYNR CNSR
------------ ------------ ------------ ------------
INCOME
PULP REVENUE -T520 42,348,016 0 0 42,348,016
EQUITY IN SUB EARNINGS-T200 0 6,796,343- 6,796,343 0
INTEREST -T300 647,201 0 34,752 612,449
MISCELLANEOUS -T535 9,364,167 0 9,364,167 0
------------ ------------ ------------ ------------
TOTAL INCOME 52,359,384 6,796,343- 16,195,262 42,960,465
------------ ------------ ------------ ------------
EXPENSES
PULP VARIABLE COSTS -T539 32,037,435 0 0 32,037,435
PULP FIXED COSTS -T540 4,777,731 0 0 4,777,731
DEPRECIATION -T595 2,257,232 0 9,510 2,247,722
LABOR -T563 386,631 0 265,210 121,421
INTEREST -I100-I340 1,601,279 0 0 1,601,279
PROPERTY TAXES -T570 139,797 0 0 139,797
MISCELLANEOUS -T562 1,566,146 0 875,832 690,314
------------ ------------ ------------ ------------
TOTAL EXPENSES 42,766,251 0 1,150,552 41,615,699
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES 9,593,133 6,796,343- 15,044,710 1,344,766
MINORITY INTEREST -T511 507,703 0 0 507,703
INC TAX (EXP) BENEF -T401-420 4,121,789- 0 9,065,663- 4,943,874
T610 620 640 650 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME (LOSS) 5,979,047 6,796,343- 5,979,047 6,796,343
============ ============ ============ ============
Exhibit A-8
Page 1 of 2
SUPERIOR RECYCLED FIBER CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS SRFC SRJV
------------- ------------ ------------- ------------
ASSETS
CURRENT ASSETS (A)
CASH -110 0 0 0 0
RESTRICTED CASH -115 0 0 0 0
ACCOUNTS RECEIVABLE
ASSOCIATED COMPANIES -436 0 0 0 0
OTHER -409 0 0 0 0
NOTES RECEIVABLE -310 0 0 0 0
INVENTORY -610 0 0 0 0
PREPAYMENTS -700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 0 0 0 0
INVEST IN JOINT VENTURE -N200 0 0 0 0
DEFERRED COST -H200 0 0 0 0
NONUTILITY PLANT -N100 0 0 0 0
ACCUMULATED DEPRECIATION-N600 0 0 0 0
OTHER ASSETS N-N950 0 0 0 0
------------- ------------ ------------- ------------
TOTAL ASSETS 0 0 0 0
============= ============ ============= ============
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES (L)
ACCOUNTS PAYABLE
ASSOC COMPANIES -322 0 0 0 0
OTHER -310 0 0 0 0
CURRENT MATURITIES -200 0 0 0 0
NOTES PAYABLE -100 0 0 0 0
ACCR INC TAXES -401-450 0 0 0 0
ACCRUED OTHER TAXES -500 0 0 0 0
ACCRUED INTEREST -610 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 0 0 0 0
LONG TERM DEBT -D700 0 0 0 0
DEFERRED INCOME TAXES -F100 0 0 0 0
MINORITY INTEREST -F900 0 0 0 0
OTH DEFERRED CREDITS -F920 0 0 0 0
------------- ------------ ------------- ------------
TOTAL LIABILITIES 0 0 0 0
------------- ------------ ------------- ------------
STOCKHOLDER'S EQUITY
COMMON STOCK, WITHOUT PAR,
50 SHARES ISSUED
AND OUTSTANDING -C090 0 0 0 0
RET EARNINGS -C400-INCELIM 0 0 0 0
------------- ------------ ------------- ------------
TOTAL STOCKHOLDER'S EQUITY 0 0 0 0
------------- ------------ ------------- ------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 0 0 0 0
============= ============ ============= ============
Exhibit A-8
Page 2 of 2
SUPERIOR RECYCLED FIBER CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS SRFC SRJV
------------ ------------ ------------ ------------
INCOME
PULP REVENUE -T520 42,348,016 27,913,280- 33,511,018 36,750,278
EQUITY IN JV EARNINGS -T200 0 1,740,019 1,740,019- 0
INTEREST -T300 612,449 0 407,765 204,684
MISCELLANEOUS -T535 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INCOME 42,960,465 26,173,261- 32,178,764 36,954,962
------------ ------------ ------------ ------------
EXPENSES
COST OF PULP -T565 0 27,913,280- 27,913,280 0
PULP VARIABLE COSTS -T539 31,697,017 0 0 31,697,017
PULP FIXED COSTS -T540 5,118,149 0 0 5,118,149
DEPRECIATION -T590,T595 2,247,722 0 0 2,247,722
LABOR -T563 121,421 0 121,421 0
INTEREST -I100 1,601,279 0 1,601,279 0
PROPERTY TAXES -T570 139,797 0 0 139,797
MISCELLANEOUS -T562 690,314 0 690,314 0
------------ ------------ ------------ ------------
TOTAL EXPENSES 41,615,699 27,913,280- 30,326,294 39,202,685
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES 1,344,766 1,740,019 1,852,470 2,247,723-
MINORITY INTEREST -T511 507,703 507,703 0 0
INCOME TAX (EXPENSE) BENEFIT 4,943,874 0 4,943,874 0
-T410,420,610,620
------------ ------------ ------------ ------------
NET INCOME (LOSS) 6,796,343 2,247,722 6,796,344 2,247,723-
============ ============ ============ ============
Exhibit A-9
Page 1 of 2
UPPER MINNESOTA PROPERTIES CONSOLIDATED BALANCE SHEET
DECEMBER 1995
CONSOLIDATED ELIMINATIONS UMPI IRV MEAD
------------- ------------ ------------- ------------ ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 4,176,156 0 0 4,176,156 0
ACCUM DEPR-NONUTIL-600 197,664- 0 0 161,313- 36,350-
OTHER -950 740,808 0 0 0 740,808
SECURITIES INVEST - 900 0 0 0 0 0
INVEST IN SUBSIDIARIES-200 1 2,813,919- 2,813,919 0 0
------------- ------------ ------------- ------------ ------------
TOTAL NONU PROP & INVEST 4,719,301 2,813,919- 2,813,919 4,014,843 704,458
------------- ------------ ------------- ------------ ------------
CURRENT ASSETS (A)
CASH -110 36,821 0 435 20,763 15,623
TEMP CASH INV-A200 15,000 0 0 0 15,000
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0 0
OTHER ACCOUNTS REC -409 80,026 0 79,599 0 428
ACCTS REC FROM ASSOC -432 1,771,776 785,428- 2,065,466 390,511 101,227
PREPAYMENTS -700 10,953 0 0 10,953 0
------------- ------------ ------------- ------------ ------------
TOTAL CURRENT ASSETS 1,914,576 785,428- 2,145,500 422,227 132,278
------------- ------------ ------------- ------------ ------------
ACCUM DEF INC TAXES H-254 0 0 0 0 0
OTHER -200 65,018 0 0 56,303 8,715
------------- ------------ ------------- ------------ ------------
TOTAL DEFERRED DEBITS 65,018 0 0 56,303 8,715
------------- ------------ ------------- ------------ ------------
TOTAL ASSETS 6,698,895 3,599,347- 4,959,419 4,493,373 845,451
============= ============ ============= ============ ============
CAPITALIZATION
COMMON STK&PD IN CAP-090 3,324,189 2,134,189- 3,324,189 2,099,074 35,115
RETAINED EARNINGS-400 647,809 679,730- 647,809 626,305 53,425
LONG-TERM DEBT D-700 2,605,629 0 0 2,006,837 598,792
------------- ------------ ------------- ------------ ------------
TOTAL CAPITALIZATION 6,577,627 2,813,919- 3,971,998 4,732,216 687,332
------------- ------------ ------------- ------------ ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 162,135 0 0 99,675 62,460
ACCOUNTS PAYABLE 24,815 0 17,269 2,746 4,800
ACCOUNTS PAY TO ASSOC-322 362,880 785,428- 854,618 191,245 102,445
ACCRUED TAXES
FEDERAL INCOME TAXES -401 882,116- 0 5,010 841,333- 45,793-
STATE INCOME TAXES -450 30,700- 0 190 23,590- 7,300-
OTHER ACCRUED TAXES -500 12,743 0 0 5,151 7,592
MISC CUR LIABILITY 910 110,334 0 110,334 0 0
INTEREST ACCRUED - 610 57,101 0 0 33,063 24,038
------------- ------------ ------------- ------------ ------------
TOTAL CURRENT LIABILITIES 182,808- 785,428- 987,421 533,043- 148,242
------------- ------------ ------------- ------------ ------------
ACCUM DEF INC TAXES F-100 302,360 0 0 294,200 8,160
MINORITY INTEREST F-900 1,715 0 0 0 1,715
------------- ------------ ------------- ------------ ------------
TOTAL LIAB & CAPITALIZATION 6,698,894 3,599,347- 4,959,419 4,493,373 845,449
============= ============ ============= ============ ============
Exhibit A-9
Page 2 of 2
UPPER MINNESOTA PROPERTIES CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS UMPI IRV MEAD
------------ ------------ ------------ ------------ ------------
INCOME
EQUITY IN SUB EARNS -T200 1 147,338- 147,339 0 0
RENTAL- RESIDENTIAL -T700 236,098 0 0 197,454 38,644
MISCELLANEOUS -T710 8,314 0 0 7,552 763
INVESTMENT -T300 26,154 12,276- 27,220 10,782 428
------------ ------------ ------------ ------------ ------------
270,567 159,614- 174,559 215,788 39,835
------------ ------------ ------------ ------------ ------------
EXPENSES
MAINTENANCE -T800 27,396 0 0 22,724 4,672
UTILITIES -T830 54,581 0 0 43,679 10,903
INSURANCE -T840 11,414 0 0 9,195 2,219
DEPRECIATION -T595 137,002 0 0 116,125 20,877
INTEREST -I100 213,809 12,276- 12,276 170,068 43,741
OPERATIONS -T860 55,428 0 0 48,643 6,785
PROPERTY TAXES -T850 20,228 0 0 10,309 9,920
ADMINISTRATIVE -T531 6,120 0 4,997 618 506
LABOR -T532 13,545 0 8,010 2,847 2,688
------------ ------------ ------------ ------------ ------------
539,523 12,276- 25,283 424,208 102,311
------------ ------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE TAXES
AND MINORITY INTEREST 268,956- 147,338- 149,276 208,420- 62,476-
INCOME TAX (EXPENSE) BENEFIT 417,291 0 799- 332,957 85,133
MINORITY INTEREST 143 0 0 0 143
------------ ------------ ------------ ------------ ------------
NET INCOME 148,478 147,338- 148,477 124,537 22,800
============ ============ ============ ============ ============
Exhibit A-10
Page 1 of 2
MINNESOTA PULP CONSOLIDATED BALANCE SHEET
DECEMBER 1995
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 0 0 0 0
INVEST IN SUBSIDIARIES-200 0 11,086,680- 11,086,680 0
------------- ------------ ------------- ------------
TOTAL NONU PROP & INVEST 0 11,086,680- 11,086,680 0
------------- ------------ ------------- ------------
CURRENT ASSETS (A)
CASH -110 32,259 0 6,234 26,026
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 1,400 0 0 1,400
ACCTS REC FROM ASSOC -432 13,311,993 15,450,102- 15,591,030 13,171,065
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 13,345,652 15,450,102- 15,597,264 13,198,491
------------- ------------ ------------- ------------
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 13,345,652 26,536,782- 26,683,944 13,198,491
============= ============ ============= ============
CAPITALIZATION
COMMON STK&PD IN CAP-090 10,282,100 10,151,313- 10,282,100 10,151,314
RETAINED EARNINGS-400 1,327,343 935,367- 1,327,344 935,366
LONG-TERM DEBT D-700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CAPITALIZATION 11,609,443 11,086,680- 11,609,444 11,086,680
------------- ------------ ------------- ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 0 0 0 0
ACCOUNTS PAYABLE 0 0 0 0
ACCOUNTS PAY TO ASSOC-322 1,397,366 15,450,102- 14,931,531 1,915,937
ACCRUED TAXES
FEDERAL INCOME TAXES -401 50,086- 0 109,100 159,186-
STATE INCOME TAXES -450 388,929 0 33,869 355,060
OTHER ACCRUED TAXES -500 0 0 0 0
INTEREST ACCRUED - 610 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 1,736,209 15,450,102- 15,074,500 2,111,811
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES F-100 0 0 0 0
------------- ------------ ------------- ------------
TOTAL LIAB & CAPITALIZATION 13,345,652 26,536,782- 26,683,944 13,198,491
============= ============ ============= ============
Exhibit A-10
Page 2 of 2
MINNESOTA PULP CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1995
CONSOLIDATED ELIMINATIONS MNPI MNP2
------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 2- 768,583- 768,581 0
ALLOW FOR FUNDS-EQUITY -100 0 0 0 0
INVESTMENT INCOME -300 1,849 0 0 1,849
EARNINGS FROM LSPI FIBER 543 1,888,255 0 0 1,888,255
OTHER MISCELLANEOUS INC-500 221,673 0 345,575 123,902-
INCOME TAXES - INVEST -400 760- 0 0 760-
- MISC -600 867,917- 0 128,944 996,861-
------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 1,243,098 768,583- 1,243,100 768,581
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
INCOME BEFORE INTEREST CHARGE 1,243,098 768,583- 1,243,100 768,581
------------ ------------ ------------ ------------
OTHER INTEREST EXPENSE 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME 1,243,098 768,583- 1,243,100 768,581
============ ============ ============ ============
Exhibit A-11
Page 1 of 1
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)
Consolidated ADESA Holdings (CNAD)
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)
Consolidated Minnesota Pulp, Incorporated (CNPI)
Minnesota Paper, Incorporation (MPAP)
Exhibit A-1
Topeka Group Incorporated (Topeka Group)
East L.A. Services Corp. (ELAG)
Fibercore, Incorporated (Fibercore)
Lehigh Acquisitions Corporation (LAC)
Heater Utilities, Incorporated (Heater)
Southern States Utilities, Inc. (SSU)
Exhibit A-2
No abbreviations used
Exhibit A-3
Heater Utilities, Incorporation (Heater Utilities)
Heater of Seabrook, Inc. (Heater of Seabrook)
Brookwood Water Corporation (Brookwood Water Corp.)
Upstate Heater Utilities, Inc. (Upstate Heater)
Exhibit A-4
ADESA Holdings (ADHD)
ADESA Corporation (ADSA)
Exhibit A-5
No abbreviations used
Exhibit A-6
Rendfield Land Company, Inc. (REND)
UtilEquip, Incorporated (UTIL)
Exhibit A-7
Synertec, Incorporated (SYNR)
Consolidated Superior Recycled Fiber (CNSR)
Exhibit A-8
Superior Recycled Fiber Corporation (SRFC)
Superior Recycled Fiber Industries Joint Venture (SRJV)
Exhibit A-9
Upper Minnesota Properties, Inc. (UMPI)
Upper Minnesota Properties - Irving, Inc. (IRV)
Upper Minnesota Properties - Meadowlands, Inc. (MEAD)
Exhibit A-10
Minnesota Pulp, Inc. (MNPI)
Minnesota Pulp II, Inc. (MNP2)
OPUR3
1,000
YEAR
DEC-31-1995
JAN-01-1995
DEC-31-1995
PER-BOOK
1,947,625
672,917
64,705
