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 Company Minnesota Duluth, MN Electric Utility
Superior Water, Light and Power Wisconsin Superior, WI Electric, Gas and
Company Water Utility
Energy Land, Incorporated Wisconsin Duluth, MN Tugboat Leasing
BNI Coal, Ltd. North Dakota Bismarck, ND Coal Mining
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 Inactive
Synertec, Incorporated Minnesota Duluth, MN Venture Investor in
energy efficiency,
pollution control and
energy conservation
activities
Minnesota Pulp, Incorporated Minnesota Duluth, MN Inactive
Minnesota Pulp II, Incorporated Minnesota Duluth, MN Inactive
Lakeview Financial Corporation 1 Minnesota Duluth, MN Inactive
Lakeview Financial Corporation 2 Minnesota Duluth, MN Inactive
-1-
Upper Minnesota Properties, Minnesota Duluth, MN Affordable Housing
Inc. Projects and Economic
Development
Upper Minnesota Properties- Minnesota Duluth, MN Affordable Housing
Meadowlands, Inc. Project
Upper Minnesota Properties- Minnesota Duluth, MN Affordable Housing
Irving, Inc. ( Project
Upper Minnesota Properties- Minnesota Duluth, MN Economic Development
Development, Inc.
Minnesota Power Enterprises, Minnesota Duluth, MN Product and Marketing
Inc. Coordination
Minnesota Power Services Group, Minnesota Duluth, MN Product Development
Inc.
Electric Outlet, Inc. Minnesota Duluth, MN Retailer
MP Water Resources Group, Minnesota Duluth, MN Water and Wastewater
Inc.
MP Real Estate Holdings, Inc. Minnesota Duluth, MN Real Estate
MP&L Capital I Minnesota Duluth, MN Trust
PCUC Acquisition Sub, Inc. Minnesota Duluth, MN Inactive
Heater Utilities, Inc. South Carolina Cary, NC Water and Wastewater
Treatment Utility
Heater of Seabrook, Inc. South Carolina Seabrook Island, Water and Wastewater
SC Treatment Utility -
Assets Sold
Brookwood Water Corporation North Carolina Fayetteville, NC Water Utility
Upstate Heater Utilities, South Carolina Anderson, SC Water Utility
Inc.
Florida Water Services Florida Apopka, FL Water and Wastewater
Corporation Treatment Utility
Pelican Utility Corporation Florida Apopka, FL Liquefied Propane Gas
Instrumentation Services, Inc North Carolina Apopka, FL Predictive Maintenance
Services
Lehigh Acquisition Corporation Delaware Lehigh Acres, FL Subdivider, Developer
Lehigh Corporation Florida Lehigh Acres, FL Subdivider, Developer
News-Star Publications, Inc. Florida Lehigh Acres, FL Newspaper Publisher -
Sold
-2-
Lehigh Land & Investment, Inc. Florida Lehigh Acres, FL Inactive
Cliffside Properties, Inc. California Lehigh Acres, FL Resort Operations
Home at Lehigh, Inc. Florida Lehigh Acres, FL Construction Company -
Sold
Interlachen Lakes Estates, Inc. Florida Interlachen, FL Subdivider, Developer
Sundowner Properties, Inc. Pennsylvania Williston, FL Subdivider, Developer
SRC of Florida, Inc. Florida Lehigh Acres, FL Subdivider, Developer
Able Land Services, Inc. Florida Lehigh Acres, FL Land Management - Sold
Enterprise Lehigh, Inc. Florida Lehigh Acres, FL Subdivider, Developer
Palm Coast Holdings, Inc. Florida Palm Coast, FL Subdivider, Developer
Sugarmill Woods Communities, Inc. Florida Homosassa, FL Subdivider, Developer
FiberCore, Incorporated Minnesota Duluth, MN Inactive
MP Automotive Services, Inc. Minnesota Duluth, MN Automotive Services
Holding Company
ADESA Houston, Inc. Texas Houston, TX Automobile Auction
ADESA San Antonio, Inc. Texas San Antonio, TX Automobile Auction
ADESA Corporation Indiana Indianapolis, IN Automobile Auction -
Corporate Operation
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 Plainfield, IN Automobile Auction
-3-
ADESA Funding Corporation Indiana Indianapolis, IN Inactive
A.D.E. Management Company Indiana Indianapolis, IN Automobile Auction
Holding Company
A.D.E. of Jacksonville, Inc. Florida Jacksonville, FL Automobile Auction
Sarasota/
Bradenton, FL
A.D.E. of Knoxville, Inc. Tennessee Knoxville, TN Automobile Auction
ADESA Charlotte, Inc. North Carolina Charlotte, NC Automobile Auction
ADESA Texas, Inc. Texas Austin, TX Automobile Auction
Mesquite, TX
Auto Banc Corporation New Jersey Manville, NJ Wholesale Vehicle
Redistributor
ADESA New Jersey, Inc. New Jersey Manville, NJ Automobile Auction
ADESA Wisconsin, Inc. Wisconsin Portage, WI Automobile Auction
ADESA Pennsylvania, Inc. Pennsylvania Pittsburgh, PA Automobile Auction
Automotive Finance Corporation Indiana Indianapolis, IN Financial Services
AFC Funding Corporation Indiana Indianapolis, IN Financial Services
ADESA Canada, Inc. Quebec Vars, Ontario, Automobile Auction
Canada Corporate Operations
ADESA Montreal, Inc. Quebec St. Eustache, Automobile Auction
Quebec, Canada
3095-1115 Quebec Inc. Quebec St. Eustache, Inactive
Quebec, Canada
ADESA Halifax, Inc. Nova Scotia Lr. Sackville, Automobile Auction
Nova Scotia,
Canada
ADESA Ottawa, Inc. Ontario Vars, Ontario, Automobile Auction
Canada
ADESA Remarketing Services, Inc. Ontario Vars, Ontario, Automobile Remarketing
Canada
ADESA Moncton, Inc. New Brunswick Moncton, New Automobile Auction
Brunswick, Canada
-4-
Footnotes
Subsidiary of Minnesota Power & Light Company.
Contributed less than 1 percent of consolidated net income for the year ended December 31, 1996.
Consisted of less than 1 percent of consolidated assets at December 31, 1996.
Minnesota Power & Light Company has a 20.6 percent ownership interest
in Capital Re Corporation (Capital Re). Capital Re is an investment
accounted for by the equity method.
Subsidiary of RendField Land Company, Inc.
Subsidiary of Minnesota Power Enterprises, Inc.
MP Water Resources Group, Inc. has an 80 percent ownership interest in this corporation.
Previously Topeka Group Incorporated.
Subsidiary of Minnesota Power Services Group, Inc.
Subsidiary of Upper Minnesota Properties, Inc.
Subsidiary of MP Water Resources Group, Inc.
Previously Southern States Utilities, Inc.
Subsidiary of Heater Utilities, Inc.
Subsidiary of Florida Water Services Corporation.
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.
Sold in 1996.
Lehigh Corporation had an 80 percent stock ownership in this
corporation until it acquired the remaining 20 percent stock ownership
on February 29, 1996.
Sugarmill Woods Communities, Inc. dissolved its 50 percent participation in Greenbriar Lakes Joint
Venture.
Cliffside Properties, Inc. owned 50 percent of Admiral Lehigh Resort, Ltd. Partnership, a resort
operation in Lehigh Acres, FL. which was sold in 1996.
MP Automotive Services, Inc., formerly ADESA Holdings, Inc., purchased
80 percent of ADESA Corporation on July 1, 1995, 3 percent on January
31, 1996 and the remaining 17 percent on August 21, 1996.
Subsidiary of MP Automotive Services, Inc.
Subsidiary of ADESA Corporation.
ADESA Corporation has an 93.4 percent stock ownership in this corporation. ADESA Canada, Inc. owns
20 percent of Impact Auto Auctions Ltd.
-5-
Footnotes Continued
Subsidiary of ADESA Canada, Inc.
Subsidiary of Automotive Finance Corporation.
Subsidiary of A.D.E. Management Company.
ADESA Corporation owns 51 percent of ADESA South Florida, L.L.C. which is an automobile auction in
Opa-Locka, FL.
Subsidiary of Minnesota Pulp, Incorporated.
In process of dissolution.
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 28, 1996, for the fiscal year ended
December 31, 1995, particularly pages 25, 26, and 27, which is hereby
incorporated by reference in this statement.
Subsidiary - Superior Water, Light and Power Company
Same reference as under claimant.
-6-
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 9,347,351,193 None
Superior Water, Light and Power Company 544,674,112 28,963,176
Florida Water Services Corporation None 28,634
(Liquefied Propane Gas)
(b) Number of kWh of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which each such
company is organized.
None
(c) Number of kWh of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each such company
is organized, or at the State line.
Electricity Gas
Minnesota Power & Light Company 1,856,682,000 None
Superior Water, Light and Power Company None None
Florida Water Services Corporation 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 6,657,376,001 None
Superior Water, Light and Power Company 562,969,047 None
Florida Water Services Corporation* 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 MP Water Resources
Group, Inc. (MP Water Resources). 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 MP Water Resources and filed as Exhibit A-1.
Exhibit A-3 is the consolidating financial statements for Heater Utilities, Inc.
These statements are combined in the consolidated financial statements for MP
Water Resources and filed as Exhibit A-1.
Exhibit A-4 is the consolidating financial statements for MP Automotive
Services, Inc. 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 MP Automotive Services,
Inc. 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 - Consolidating financial statements for Upper Minnesota Properties,
Inc. are combined in the consolidating financial statements of Minnesota Power &
Light Company which are filed as Exhibit A. These statements have been excluded
from this exhibit because each subsidiary within this consolidated group is not
material to Minnesota Power & Light Company's consolidating financial
statements.
Exhibit A-8 is the consolidating financial statements for Minnesota Pulp,
Incorporated. These statements are combined in the consolidating financial
statements of Minnesota Power & Light Company which are filed as Exhibit A.
Exhibit A-9 is a list of abbreviations used in the Exhibits.
Exhibit B is the Financial Data Schedule.
Exhibit C is not applicable to Minnesota Power & Light Company.
-8-
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 26th day of February 1997.
MINNESOTA POWER & LIGHT COMPANY
------------------------------------
(Name of Claimant)
By D.G. Gartzke
------------------------------------
Senior Vice President -
Finance and Chief Financial Officer
Attest:
Mark A. Schober
- -------------------------------------------------
Controller
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
David G. Gartzke Senior Vice President - Finance and Chief Financial Officer
---------------- -----------------------------------------------------------
(Name) (Title)
Minnesota Power & Light Company
30 West Superior Street
Duluth, Minnesota 55802
-----------------------
(Address)
-9-
Exhibit A
Page 1 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1996
CONSOLIDATED ELIMINATIONS MPL SWL CNWR ENLD CNAD
------------ ------------ ------------ ------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 1225373,334 3,094,205 1197665,455 24,613,674 0 0 0
ELECTRIC MISCELLANEOUS -U175 23305,532 0 17290,439 54,026 0 0 0
GAS -U400 13857,571 953,178 0 12,904,393 0 0 0
WATER (SWLP) -U401 19115,962 2,384,623 0 16,731,339 0 0 0
COAL -U550,551 43997,263 0 0 0 0 0 0
COMMON -U500 0 6,432,006- 0 6,432,006 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 1325649,662 0 1214955,894 60,735,438 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
WATER -U300 418977,793 0 0 0 418,977,793 0 0
WATER MISCELLANEOUS -U350 11563,244 0 0 0 11,563,244 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 430541,037 0 0 0 430,541,037 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
AUTO REDISTRIBUTION -N550 162170,984 0 0 0 0 0 162,170,984
------------ ------------ ------------ ------------ ------------ ------------ ------------
PULP -N300 0 0 0 0 0 0 0
AFFORD HOUSING AND OTHE-N350 552,170 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 552,170 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL PLANT 1918913,853 0 1214955,894 60,735,438 430,541,037 0 162,170,984
ACCUMULATED DEPREC-U600,N600 653816,068- 0 491648,484- 20,754,094- 113,785,923- 0 6,476,221-
CONSTRUCTION IN PRO-U710,711 22652,473 0 3313,885 645,385 7,114,203 0 11,579,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET PLANT 1287750,258 0 726621,295 40,626,729 323,869,317 0 167,273,763
SECURITIES INVESTES-N900,905 78922,762 817,836- 74552,268 0 198,949 4,989,380 0
EQUITY INVESTMENTS -N910 102289,664 0 102289,664 0 0 0 0
REAL ESTATE -N400 50996,767 0 0 0 50,996,767 0 0
OTHER -N500 3747,701 0 2145,005 0 1,602,696 0 0
INV IN SUBSIDIARIES -N200 3- 580,202,915- 580202,911 0 0 0 1
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 1523707,149 581,020,751- 1485811,143 40,626,729 376,667,729 4,989,380 167,273,764
CURRENT ASSETS (A)
CASH -110 30947,581 1 1937,963 716,655 5,379,267 5,677 22,646,027
WORKING FUNDS -150 202,761 0 193,236 9,525 0 0 0
TEMP CASH INVESTMENTS -200 8944,671 5,800,000- 13508,176 0 830,000 0 0
RESTRICTED CASH -115 0 0 0 0 0 0 0
TRADING SECURITIES -250 86819,405 533,834- 87353,239 0 0 0 0
CUSTOMER ACCTS REC -321 150628,221 0 40527,229 6,444,832 10,613,414 0 89,488,730
RESERVE FOR UNCOL ACT-322 6568,445- 0 316,156- 308,147- 509,796- 0 5,434,346-
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 482,015 0 247,716 0 234,299 0 0
OTHER ACCOUNTS REC -409 20237,374 336,553- 7748,984 781,173 10,619,999 41,723 0
ACCTS REC FROM ASSOC -432 0 293,083,779- 58272,672 30,000 45,131,789 3,915,226 56,320,168
FUEL STOCK -500 7637,973 0 7581,648 56,326 0 0 0
PLANT & OPER SUPPLIES -610 15030,903 0 9546,446 656,309 1,000,429 0 1,220,782
MERCHANDISE -620 489,495 0 302,931 0 0 0 0
STORES EXPENSE UNDIST-630 63,122 0 85 63,037 0 0 0
PREPAYMENTS -700 8929,933 1,692,400 1861,128 927,971 1,033,647 0 3,341,341
OTHER CUR & ACCR ASSETS-900 3162,229 0 1953,657 227,636 979,844 0 0
FUNDS HELD BY TRUSTEE-145 5102,489 6,500,000- 4903,177 6,699,312 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 332109,727 304,561,765- 235622,131 16,304,629 75,312,892 3,962,626 167,582,702
------------ ------------ ------------ ------------ ------------ ------------ ------------
DEFERRED CHARGES H-200 110581,733 887,058 84902,038 1,702,394 18,890,939 250,000 821,265
------------ ------------ ------------ ------------ ------------ ------------ ------------
INTANGIBLES - GOODWILL N-700 166985,544 0 0 0 1,304,860 0 165,680,684
- OTHER N-702 12665,336 0 0 0 0 0 11,823,417
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INTANGIBLES 179650,880 0 0 0 1,304,860 0 177,504,101
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 2146049,489 884,695,458- 1806335,312 58,633,752 472,176,420 9,202,006 513,181,832
============ ============ ============ ============ ============ ============ ============
CNRD BNI RAIN SYNR
------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0 0 0 0
ELECTRIC MISCELLANEOUS -U175 0 0 470,633 55,218
GAS -U400 0 0 0 0
WATER (SWLP) -U401 0 0 0 0
COAL -U550,551 0 43,997,263 0 0
COMMON -U500 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 43,997,263 470,633 55,218
------------ ------------ ------------ ------------
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 552,170 0 0 0
------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 552,170 0 0 0
------------ ------------ ------------ ------------
TOTAL PLANT 552,170 43,997,263 470,633 55,218
ACCUMULATED DEPREC-U600,N600 0 20,745,892- 6,260- 47,416-
CONSTRUCTION IN PRO-U710,711 0 0 0 0
------------ ------------ ------------ ------------
NET PLANT 552,170 23,251,371 464,373 7,802
SECURITIES INVESTES-N900,905 0 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 0 0 0
------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 552,170 23,251,371 464,373 7,802
CURRENT ASSETS (A)
CASH -110 60,063 4,885- 57,429 19,933
WORKING FUNDS -150 0 0 0 0
TEMP CASH INVESTMENTS -200 0 381,495 0 0
RESTRICTED CASH -115 0 0 0 0
TRADING SECURITIES -250 0 0 0 0
CUSTOMER ACCTS REC -321 0 3,554,016 0 0
RESERVE FOR UNCOL ACT-322 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 848 0 82,655 68,833
ACCTS REC FROM ASSOC -432 11,490,604 0 2,255,952 21,251,554
FUEL STOCK -500 0 0 0 0
PLANT & OPER SUPPLIES -610 0 2,606,938 0 0
MERCHANDISE -620 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0
PREPAYMENTS -700 0 68,271 0 0
OTHER CUR & ACCR ASSETS-900 0 1,094 0 0
FUNDS HELD BY TRUSTEE-145 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 11,551,515 6,606,929 2,396,036 21,340,320
------------ ------------ ------------ ------------
DEFERRED CHARGES H-200 32,036 3,040,151 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 12,135,721 32,898,451 2,860,409 21,348,122
============ ============ ============ ============
Exhibit A
Page 2 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1996
LFC1 CNUP CNPI MPC1 ELOT
------------ ------------ ------------ ------------ ------------ ------------
PLANT AND OTHER ASSETS
ELECTRIC -U100 0 0 0 0 0 0
ELECTRIC MISCELLANEOUS -U175 0 5,108,173 0 0 0 327,044
GAS -U400 0 0 0 0 0 0
WATER (SWLP) -U401 0 0 0 0 0 0
COAL -U550,551 0 0 0 0 0 0
COMMON -U500 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 5,108,173 0 0 0 327,044
------------ ------------ ------------ ------------ ------------ ------------
WATER -U300 0 0 0 0 0 0
WATER MISCELLANEOUS -U350 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
AUTO REDISTRIBUTION -N550 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
PULP -N300 0 0 0 0 0 0
AFFORD HOUSING AND OTHE-N350 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INVEST OPERATIONS 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PLANT 0 5,108,173 0 0 0 327,044
ACCUMULATED DEPREC-U600,N600 0 329,820- 0 0 0 21,957-
CONSTRUCTION IN PRO-U710,711 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
NET PLANT 0 4,778,353 0 0 0 305,087
SECURITIES INVESTES-N900,905 0 0 0 0 0 0
EQUITY INVESTMENTS -N910 0 0 0 0 0 0
REAL ESTATE -N400 0 0 0 0 0 0
OTHER -N500 0 0 0 0 0 0
INV IN SUBSIDIARIES -N200 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL PLANT AND ASSETS 0 4,778,353 0 0 0 305,087
CURRENT ASSETS (A)
CASH -110 13,141 77,677 32,259 0 0 6,377
WORKING FUNDS -150 0 0 0 0 0 0
TEMP CASH INVESTMENTS -200 0 25,000 0 0 0 0
RESTRICTED CASH -115 0 0 0 0 0 0
TRADING SECURITIES -250 0 0 0 0 0 0
CUSTOMER ACCTS REC -321 0 0 0 0 0 0
RESERVE FOR UNCOL ACT-322 0 0 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0 0 0
OTHER ACCOUNTS REC -409 51 1,203,190 1,400 0 0 25,072
ACCTS REC FROM ASSOC -432 4,242 1,970,435 14,620,591 0 77,657,646 162,900
FUEL STOCK -500 0 0 0 0 0 0
PLANT & OPER SUPPLIES -610 0 0 0 0 0 0
MERCHANDISE -620 0 0 0 0 0 186,565
STORES EXPENSE UNDIST-630 0 0 0 0 0 0
PREPAYMENTS -700 0 5,175 0 0 0 0
OTHER CUR & ACCR ASSETS-900 0 0 0 0 0 0
FUNDS HELD BY TRUSTEE-145 0 0 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 17,434 3,281,477 14,654,250 0 77,657,646 380,914
------------ ------------ ------------ ------------ ------------ ------------
DEFERRED CHARGES H-200 0 55,852 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
INTANGIBLES - GOODWILL N-700 0 0 0 0 0 0
- OTHER N-702 0 0 0 0 0 841,919
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INTANGIBLES 0 0 0 0 0 841,919
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 17,434 8,115,682 14,654,250 0 77,657,646 1,527,920
============ ============ ============ ============ ============ ============
Exhibit A
Page 3 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1996
CONSOLIDATED ELIMINATIONS MPL SWL CNWR ENLD CNAD
------------ ------------ ------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 394186,749 432,984,341- 394186,749 5,800,000 62,774,485 2,500 332,351,924
LOAN TO LEV ESOP -210 69123,697- 0 69123,697- 0 0 0 0
UNREAL GAINS INVEST -215 2752,347 0 2752,347 0 0 0 0
CUM TRANSLATION ADJ -216 73,000 0 0 0 0 0 73,000
RETAINED EARNINGS -400 282959,751 147,218,573- 282959,750 11,755,362 124,640,539 5,263,532 5,803,495
PREFERRED STOCK (P)
5% -100 11491,693 0 11491,693 0 0 0 0
$7.36 SERIES -210 0 0 0 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
QUIPS (Q) -100 75000,000 0 0 0 0 0 0
LONG-TERM DEBT (D)
BONDS -100 511105,576 3,450,000- 406180,000 5,000,000 103,375,576 0 0
BOND FUNDS HELD BY TRUST 0 0 0 0 0 0 0
OTHER LONG-TERM DEBT -700 184509,309 84,946,482- 89766,348 13,850,000 52,291,225 0 98,915,099
UNAMORT PREM ON DEBT -850 0 0 0 0 0 0 0
UNAMORT DISC ON DEBT -860 1191,236- 0 1061,236- 130,000- 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 1411763,492 668,599,396- 1137151,954 36,275,362 343,081,825 5,266,032 437,143,518
------------ ------------ ------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 155725,809 5,800,000- 154162,285 5,800,000 1,318,524 0 245,000
CURRENT MATURITIES -200 7208,206 4,396,481 0 0 686,740 0 132,000
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 72787,205 1,776,832- 16123,783 2,160,423 3,132,268 100,000 52,670,257
ACCOUNTS PAY TO ASSOC-320 7 213,490,988- 157313,688 1,938,237 3,568,259 956,428 6,539,306
ACCRUED TAXES
FEDERAL INCOME TAXES -401 5295,246 0 5195,950 28,706 211,904- 119,420- 675,068
STATE INCOME TAXES -450 1487,664 0 1114,052 97,452- 145,445 149,030 450,430
OTHER ACCRUED TAXES -500 42030,162 0 35779,455 121,742 5,572,663 0 12,963
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 14361,577 0 9876,853 288,605 3,938,878 0 0
DIVIDENDS DECLARED -620 487,323 0 487,323 0 0 0 0
MATURED INTEREST -630 1,709 0 1,709 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 2515,850 0 298,485 12,391 2,204,974 0 0
TAX COLLECTIONS PAY -920 395,394 0 224,516 171,137 259- 0 0
MISC CURR & ACCR LIAB-930 34687,123 311,781- 14486,444 1,483,373 7,062,214 0 11,036,290
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 336983,275 216,983,120- 395064,543 11,907,162 27,417,802 1,086,038 71,761,314
------------ ------------ ------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 98378,144 0 0 1,033,634 97,344,511 0 0
ACCUM DEF INC TXS(H254)-100 116340,918 0 128453,536 3,061,455 21,781,751- 2,849,936 2,501,000
ACC DEF INV TAX CREDITS-200 32590,513 0 30324,417 959,931 1,306,165 0 0
OTHER
MINORITY INTEREST -900 13864,011 0 0 0 12,086,365 0 1,776,000
CUST ADV FOR CONSTR -910 2932,544 0 1046,872 1,885,672 0 0 0
OTHER DEF CREDITS -920 128595,423 889,770 109690,109 3,510,536 12,721,503 0 0
LOST TIME RESERVE -930 4601,169 2,712- 4603,881 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 397302,722 887,058 274118,815 10,451,228 101,676,793 2,849,936 4,277,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 2146049,489 884,695,458- 1806335,312 58,633,752 472,176,420 9,202,006 513,181,832
============ ============ ============ ============ ============ ============ ============
CNRD BNI RAIN SYNR
------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 5,487,500 2,027,426 1,350,000 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 12,003,960- 11,961,198 1,578,085- 469,832-
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
QUIPS (Q) -100 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 12,193,572 0 0
UNAMORT PREM ON DEBT -850 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0
------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 6,516,460- 26,182,196 228,085- 4,604,385
------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 0 0 0
CURRENT MATURITIES -200 0 1,824,692 0 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 266,754 86,700 1 1
ACCOUNTS PAY TO ASSOC-320 18,900,000 177,324 3,151,477 16,895,768
ACCRUED TAXES
FEDERAL INCOME TAXES -401 43,710- 4,994- 32,330 10,970-
STATE INCOME TAXES -450 98,167- 44,146 25,940- 34,760-
OTHER ACCRUED TAXES -500 7,646 520,066 0 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0 207,246 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 0 923,843 0 0
------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 19,032,523 3,779,023 3,157,868 16,850,039
------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 0 0 0
ACCUM DEF INC TXS(H254)-100 380,342- 1,153,727 69,374- 106,302-
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 1,783,505 0 0
LOST TIME RESERVE -930 0 0 0 0
------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 380,342- 2,937,232 69,374- 106,302-
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 12,135,721 32,898,451 2,860,409 21,348,122
============ ============ ============ ============
Exhibit A
Page 4 of 8
MINNESOTA POWER CONSOLIDATED BALANCE SHEET
DECEMBER 1996
LFC1 CNUP CNPI MPC1 ELOT
------------ ------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 10,000 3,524,189 10,282,100 0 2,500,000 1,800,000
LOAN TO LEV ESOP -210 0 0 0 0 0 0
UNREAL GAINS INVEST -215 0 0 0 0 0 0
CUM TRANSLATION ADJ -216 0 0 0 0 0 0
RETAINED EARNINGS -400 1,029- 833,255 1,342,016 0 0 327,918-
PREFERRED STOCK (P)
5% -100 0 0 0 0 0 0
$7.36 SERIES -210 0 0 0 0 0 0
$8.90 SERIES 220 0 0 0 0 0 0
$6.70 SERIES -250 0 0 0 0 0 0
$9.125 SERIES -320 0 0 0 0 0 0
$7.125 SERIES -330 0 0 0 0 0 0
QUIPS (Q) -100 0 0 0 0 75,000,000 0
LONG-TERM DEBT (D)
BONDS -100 0 0 0 0 0 0
BOND FUNDS HELD BY TRUST 0 0 0 0 0 0
OTHER LONG-TERM DEBT -700 0 2,439,547 0 0 0 0
UNAMORT PREM ON DEBT -850 0 0 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 8,971 6,796,991 11,624,116 0 77,500,000 1,472,082
------------ ------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 0 0 0 0 0
CURRENT MATURITIES -200 0 168,292 0 0 0 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 1 23,861 0 0 0 1
ACCOUNTS PAY TO ASSOC-320 8,342 730,049 3,030,134 0 157,646 124,337
ACCRUED TAXES
FEDERAL INCOME TAXES -401 10- 29,010 0 0 0 274,810-
STATE INCOME TAXES -450 130 23,370- 0 0 0 135,880-
OTHER ACCRUED TAXES -500 0 15,626 0 0 0 0
ACCRD DIVIDEND & INTEREST
INTEREST ACCRUED -610 0 49,995 0 0 0 0
DIVIDENDS DECLARED -620 0 0 0 0 0 0
MATURED INTEREST -630 0 0 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 0 0 0 0 0 0
TAX COLLECTIONS PAY -920 0 0 0 0 0 0
MISC CURR & ACCR LIAB-930 0 6,740 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIE 8,463 1,000,203 3,030,134 0 157,646 286,352-
------------ ------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 0 0 0 0 0 0
ACCUM DEF INC TXS(H254)-100 0 316,842 0 0 0 342,190
ACC DEF INV TAX CREDITS-200 0 0 0 0 0 0
OTHER
MINORITY INTEREST -900 0 1,646 0 0 0 0
CUST ADV FOR CONSTR -910 0 0 0 0 0 0
OTHER DEF CREDITS -920 0 0 0 0 0 0
LOST TIME RESERVE -930 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 0 318,488 0 0 0 342,190
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIAB & CAPITALIZATION 17,434 8,115,682 14,654,250 0 77,657,646 1,527,920
============ ============ ============ ============ ============ ============
Exhibit A
Page 5 of 8
MINNESOTA POWER CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1996
CONSOLIDATED ELIMINATIONS MPL SWL CNWR ENLD CNAD
------------ ------------ ------------ ------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 467,645,277 17,187,647- 460,840,770 23,992,154 0 0 0
- ELECT MISC T513 13,742,279 9,493,647- 20,210,364 246,141 0 0 0
- GAS R400 13,349,924 0 0 13,349,924 0 0 0
- WATER (SWLP) R401 4,262,488 0 0 4,262,488 0 0 0
- COAL R500,R501 30,190,123 0 0 0 0 0 0
- AFDC T101 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 529,190,091 26,681,294- 481,051,134 41,850,707 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
- WATER R300 75,108,553 0 0 0 75,108,553 0 0
- WATER MISC R380 9,647,676 0 0 0 9,647,676 0 0
- AFDC T102 473,181 0 0 0 473,181 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 85,229,410 0 0 0 85,229,410 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
- AUTO REDIST T900 183,940,883 0 0 0 0 0 183,940,883
------------ ------------ ------------ ------------ ------------ ------------ ------------
- INVESTMENT T300 19,245,867 6,315,307- 11,772,714 0 4,552,169 2,475,588 1,873,164
- PULP T520 0 0 0 0 0 0 0
- REAL ESTATE T711 29,166,453 0 0 0 29,166,453 0 0
- OTHER T530 155,433 0 0 0 43,565 0 0
- GAIN ON SALE T505 0 0 0 0 0 0 0
- EQUITY IN SUBS T200 1 34,538,891- 34,538,891 0 1 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 48,567,754 40,854,198- 46,311,605 0 33,762,188 2,475,588 1,873,164
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 846,928,138 67,535,492- 527,362,739 41,850,707 118,991,598 2,475,588 185,814,047
------------ ------------ ------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 75,878,418 0 75,878,418 0 0 0 0
PURCHASED POWER E200 115,050,224 16,522,372- 115,050,227 16,522,369 0 0 0
OPERATION E305,T512,350 207,309,467 10,105,812- 84,325,526 12,642,358 23,918,579 0 75,257,196
MAINTENANCE E405 31,677,906 0 22,203,060 1,023,994 4,453,877 0 2,255,919
DEPRECIATION E500,T590 65,091,564 0 37,984,896 2,215,204 11,154,525 0 11,753,084
PROPERTY TAXES E610,T570 40,218,028 0 33,257,564 781,859 4,147,061 0 1,974,759
OTHER TAXES E620,T571 9,912,308 0 4,517,348 460,808 4,316,944 0 0
ADMIN AND GENERAL E310 153,419,207 0 40,287,786 3,864,308 32,329,709 15,735 74,635,276
MINORITY INTEREST T511 4,477,115 0 0 0 3,698,211 0 778,972
INTEREST EXPENSE
INTEREST ON LTD I100 50,930,074 0 28,029,390 951,512 12,616,135 0 7,922,977
OTHER INTEREST EXP I340 10,192,715 6,210,770- 14,097,864 421,170 786,505 0 0
AMORT OF DEBT EXP I300 1,455,508 0 1,433,406 22,102 0 0 0
AFCD-DEBT I200 464,388- 0 154,997- 0 309,391- 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 765,148,146 32,838,954- 456,910,488 38,905,684 97,112,155 15,735 174,578,183
------------ ------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 11,809,698 0 11,809,698 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 93,589,690 34,696,538- 82,261,949 2,945,023 21,879,443 2,459,853 11,235,864
DISTRIBUTION-QUIPS 4,729,374- 157,647 0 0 0 0 0
INCOME TAX EXP E700,T400,6,7 19,638,998- 0 13,040,635- 1,088,264- 10,973- 354,961- 5,499,526-
------------ ------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 69,221,318 34,538,891- 69,221,314 1,856,759 21,868,470 2,104,892 5,736,338
DISCONTINUED OPERATIONS X200 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
NET INCOME 69,221,318 34,538,891- 69,221,314 1,856,759 21,868,470 2,104,892 5,736,338
PREFERRED DIVIDENDS V100 2,408,290- 0 2,408,290- 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMON 66,813,028 34,538,891- 66,813,024 1,856,759 21,868,470 2,104,892 5,736,338
COMMON DIVIDENDS V200 59,581,128- 0 59,581,128- 0 0 0 0
ADJ TO RETAINED EARNINGS V300 512,890- 0 512,890- 0 0 0 0
BEGIN RETAINED EARNINGS C425 276,240,744 0 276,240,744 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 282,959,754 34,538,891- 282,959,750 1,856,759 21,868,470 2,104,892 5,736,338
============ ============ ============ ============ ============ ============ ============
CNRD BNI RAIN SYNR
------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 0 0 0 0
- ELECT MISC T513 0 0 1,996,830 189,895
- GAS R400 0 0 0 0
- WATER (SWLP) R401 0 0 0 0
- COAL R500,R501 0 30,190,123 0 0
- AFDC T101 0 0 0 0
------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 30,190,123 1,996,830 189,895
------------ ------------ ------------ ------------
- 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 0 0 0 0
- PULP T520 0 0 0 0
- REAL ESTATE T711 0 0 0 0
- OTHER T530 111,868 0 0 0
- GAIN ON SALE T505 0 0 0 0
- EQUITY IN SUBS T200 0 0 0 0
------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 111,868 0 0 0
------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 111,868 30,190,123 1,996,830 189,895
------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 0 0 0 0
PURCHASED POWER E200 0 0 0 0
OPERATION E305,T512,350 0 18,570,374 1,805,755 0
MAINTENANCE E405 0 1,741,056 0 0
DEPRECIATION E500,T590 0 1,809,395 6,260 4,921
PROPERTY TAXES E610,T570 7,488 30,816 0 0
OTHER TAXES E620,T571 0 617,208 0 0
ADMIN AND GENERAL E310 43,239 1,258,483 502,976 430,485
MINORITY INTEREST T511 0 0 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 0 1,215,580 0 0
OTHER INTEREST EXP I340 1,035,258 28,860 0 0
AMORT OF DEBT EXP I300 0 0 0 0
AFCD-DEBT I200 0 0 0 0
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 1,085,985 25,271,772 2,314,991 435,406
------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 0 0 0 0
------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 974,117- 4,918,351 318,161- 245,511-
DISTRIBUTION-QUIPS 0 0 0 0
INCOME TAX EXP E700,T400,6,7 402,691 964,515- 131,720 150,520
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 571,426- 3,953,836 186,441- 94,991-
DISCONTINUED OPERATIONS X200 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME 571,426- 3,953,836 186,441- 94,991-
PREFERRED DIVIDENDS V100 0 0 0 0
------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMON 571,426- 3,953,836 186,441- 94,991-
COMMON 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 571,426- 3,953,836 186,441- 94,991-
============ ============ ============ ============
Exhibit A
Page 6 of 8
MINNESOTA POWER CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1996
LFC1 CNUP CNPI MPAP MPC1 ELOT
------------ ------------ ------------ ------------ ------------ ------------
REVENUE - ELECTRIC R100 0 0 0 0 0 0
- ELECT MISC T513 0 393,142 0 0 0 199,554
- GAS R400 0 0 0 0 0 0
- WATER (SWLP) R401 0 0 0 0 0 0
- COAL R500,R501 0 0 0 0 0 0
- AFDC T101 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ELECTRIC OPERATIONS 0 393,142 0 0 0 199,554
------------ ------------ ------------ ------------ ------------ ------------
- WATER R300 0 0 0 0 0 0
- WATER MISC R380 0 0 0 0 0 0
- AFDC T102 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
- AUTO REDIST T900 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
- INVESTMENT T300 519 0 0 0 4,887,021 0
- PULP T520 0 0 0 0 0 0
- REAL ESTATE T711 0 0 0 0 0 0
- OTHER T530 0 0 0 0 0 0
- GAIN ON SALE T505 0 0 0 0 0 0
- EQUITY IN SUBS T200 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 519 0 0 0 4,887,021 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 519 393,142 0 0 4,887,021 199,554
------------ ------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES
FUEL E100 0 0 0 0 0 0
PURCHASED POWER E200 0 0 0 0 0 0
OPERATION E305,T512,350 0 183,777 0 0 0 711,715
MAINTENANCE E405 0 0 0 0 0 0
DEPRECIATION E500,T590 0 141,323 0 0 0 21,957
PROPERTY TAXES E610,T570 0 18,363 0 0 0 117
OTHER TAXES E620,T571 0 0 0 0 0 0
ADMIN AND GENERAL E310 0 26,125 0 0 0 25,083
MINORITY INTEREST T511 0 68- 0 0 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 0 194,480 0 0 0 0
OTHER INTEREST EXP I340 1,276 32,552 0 0 0 0
AMORT OF DEBT EXP I300 0 0 0 0 0 0
AFCD-DEBT I200 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 1,276 596,552 0 0 0 758,872
------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM EQUITY INVESTMENT 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 757- 203,410- 0 0 4,887,021 559,318-
DISTRIBUTION-QUIPS 0 0 0 0 4,887,021- 0
INCOME TAX EXP E700,T400,6,7 16 388,855 14,673 0 0 231,400
------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 741- 185,445 14,673 0 0 327,918-
DISCONTINUED OPERATIONS X200 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
NET INCOME 741- 185,445 14,673 0 0 327,918-
PREFERRED DIVIDENDS V100 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMON 741- 185,445 14,673 0 0 327,918-
COMMON DIVIDENDS V200 0 0 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 741- 185,445 14,673 0 0 327,918-
============ ============ ============ ============ ============ ============
Exhibit A
Page 7 of 8
Minnesota Power & Light Company and Subsidiaries
Consolidating Statement of Retained Earnings
for the Year Ended December 31, 1996
Minnesota Superior Consolidated Consolidated
Eliminations Power Water, Light MP Water MP
Consolidated and & Light and Power Resources Energy Land Automotive
Total Adjustments Company Company Group, Inc. Incorporated Services, Inc.
----- ------------ ------- ------- ----------- ------------ --------------
Balance at Beginning of
Period $276,240,745 $(116,965,668) $276,240,745 $11,498,603 $102,563,110 $3,158,640 $ (37,894)
Additions
Net Income (Loss) from
Statement of Income 69,221,314 (34,538,896) 69,221,314 1,856,759 21,868,470 2,104,892 5,736,338
Acquisition of
Subsidiaries (314,010) 208,959 105,051
------------ ------------- ------------ ----------- ------------ ---------- ----------
345,462,059 (151,818,574) 345,462,059 13,355,362 124,640,539 5,263,532 5,803,495
------------ ------------- ------------ ----------- ------------ ---------- ----------
Deductions
Dividends - Cash
5% Preferred Stock
($5.00 per share) 566,790 566,790
Serial Preferred Stock
($7.36 per share) 459,000 459,000
Serial (A) Preferred
Stock ($6.70 per share) 670,000 670,000
Serial Preferred Stock
($7.125 per share) 712,500 712,500
Common Stock 59,581,128 (4,600,000) 59,581,128 1,600,000
Redemption of Preferred
Stock 512,890 512,890
------------ ------------- ------------ ----------- ------------ ---------- ----------
Total Deductions 62,502,308 (4,600,000) 62,502,308 1,600,000
------------ ------------- ------------ ----------- ------------ ---------- ----------
Balance at End of Period $282,959,751 $(147,218,574) $282,959,751 $11,755,362 $124,640,539 $5,263,532 $5,803,495
------------ ------------- ------------ ----------- ------------ ---------- ----------
Consolidated BNI Rainy River
RendField Coal, Ltd. Energy, Inc. Synertec
--------- ---------- ------------ --------
Balance at Beginning of
Period $(11,432,534) $11,007,363 $(1,391,643) $(374,841)
Additions
Net Income (Loss) from
Statement of Income (571,426) 3,953,836 (186,441) (94,991)
Acquisition of
Subsidiaries
----------- ---------- ---------- ---------
(12,003,960) 14,961,199 (1,578,084) (469,832)
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
Redemption of Preferred
Stock
----------- ----------- ----------- ----------
Total Deductions 3,000,000
----------- ----------- ----------- ----------
Balance at End of Period (12,003,960) $11,961,199 $(1,578,084) $ (469,832)
----------- ----------- ----------- ----------
Accounted for as pooling of interests.
Common dividends from Superior Water, Light and Power Company and BNI Coal of $1,600,000 and $3,000,000,
respectively.
Exhibit A
Page 8 of 8
Minnesota Power & Light Company and Subsidiaries
Consolidating Statement of Retained Earnings
for the Year Ended December 31, 1996
Consolidated
Lakeview Upper Consolidated
Financial Minnesota Minnesota Electric
Corporation Properties Pulp Outlet, Inc.
----------- ---------- ---- ------------
Balance at Beginning of Period $ (288) $ 647,809 $1,327,343
Additions
Net Income (Loss) from
Statement of Income (741) 185,445 14,673 $ (327,918)
Acquisition of
Subsidiaries
------- --------- ---------- ----------
(1,029) 833,254 1,342,016 (327,918)
------- --------- ---------- ----------
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
Redemption of Preferred Stock
------- --------- ---------- ----------
Total Deductions
------- --------- ---------- ----------
Balance at End of Period $(1,029) $ 833,254 $1,342,016 $ (327,918)
------- --------- ---------- ----------
Accounted for as pooling of interests.
Exhibit A-1
Page 1 of 3
MP WATER RESOURCES GROUP, INC. CONSOLIDATED BALANCE SHEET
DECEMBER 1996
CONSOLIDATED ELIMINATIONS MP WATER FIBERCORE LAC
------------ ------------ ------------ ------------ ------------ ------------
UTILITY PLANT (U)
-WATER -300 418,977,793 0 0 0 0 0
-GAS -400 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL GROSS PLANT 418,977,793 0 0 0 0 0
ACCUM DEPRECIATION -600 113,267,976- 0 0 0 0 0
CONSTR WORK IN PROGRESS-710 7,114,203 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
NET UTILITY PLANT 312,824,020 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 11,564,075 0 830 0 0 0
ACCUM-DEPR NONUTILITY-600 517,947- 0 830- 0 0 0
GOODWILL -700 1,304,860 0 1,304,860 0 0 0
OTHER -950 52,598,632 0 1,594,995 0 0 50,996,767
INVESTMENTS -900 198,949 0 0 0 0 0
INVEST IN ASSOC CO. -200 0 143,867,566- 143,867,566 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL NONUTIL PROP & INV 65,148,569 143,867,566- 146,767,421 0 0 50,996,767
------------ ------------ ------------ ------------ ------------ ------------
CURRENT ASSETS (A)
CASH
CASH -110 5,379,267 0 98,786 0 1,384 1,490,754
WORKING FUNDS -150 0 0 0 0 0 0
TEMP CASH INVESTMENTS -200 830,000 0 0 0 0 0
RESTRICTED CASH -115 0 0 0 0 0 0
TRADE ACCOUNTS RECEIVABLE
CUSTOMER ACCOUNTS REC-321 10,613,414 0 0 0 0 0
ACCUM PROV UNCOL ACT -322 509,796- 0 0 0 0 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 234,299 0 170,206 0 0 0
OTHER ACCTS REC -409 10,619,999 0 0 0 0 9,976,513
ACCTS REC FROM ASSOC -432 45,131,790 57,129,398- 84,847,129 0 557 4,299,328
FUEL STOCK -500 0 0 0 0 0 0
MATERIALS & SUPPLIES
PLANT & OPER SUPPLIES-610 1,000,429 0 0 0 0 0
MERCHANDISE -620 0 0 0 0 0 0
STORES EXPENSE UNDIST-630 0 0 0 0 0 0
PREPAYMENTS -700 1,033,647 0 28,936 0 0 0
OTHER
OTH CUR & ACCR ASSETS-900 979,844 0 0 0 0 920,667
FUNDS HELD BY TRUSTEE-145 0 0 0 0 0 0
INTEREST DEP & OTHER -120 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT ASSETS 75,312,893 57,129,398- 85,145,057 0 1,941 16,687,262
------------ ------------ ------------ ------------ ------------ ------------
ACCUM DEF INC TAXES H-254 42,194,874 0 678,366 0 0 23,571,484
OTHER -200 18,890,939 0 214,211 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED DEBITS 61,085,813 0 892,577 0 0 23,571,484
------------ ------------ ------------ ------------ ------------ ------------
TOTAL ASSETS 514,371,295 200,996,964- 232,805,055 0 1,941 91,255,513
============ ============ ============ ============ ============ ============
HEATER SSU ISI
------------ ------------ ------------
UTILITY PLANT (U)
-WATER -300 40,803,494 378,174,299 0
-GAS -400 0 0 0
------------ ------------ ------------
TOTAL GROSS PLANT 40,803,494 378,174,299 0
ACCUM DEPRECIATION -600 11,977,095- 101,290,881- 0
CONSTR WORK IN PROGRESS-710 0 7,114,203 0
------------ ------------ ------------
NET UTILITY PLANT 28,826,399 283,997,621 0
------------ ------------ ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 10,520 10,107,081 1,445,644
ACCUM-DEPR NONUTILITY-600 0 0 517,117-
GOODWILL -700 0 0 0
OTHER -950 0 0 6,870
INVESTMENTS -900 198,949 0 0
INVEST IN ASSOC CO. -200 0 0 0
------------ ------------ ------------
TOTAL NONUTIL PROP & INV 209,469 10,107,081 935,397
------------ ------------ ------------
CURRENT ASSETS (A)
CASH
CASH -110 579,889 3,139,583 68,873
WORKING FUNDS -150 0 0 0
TEMP CASH INVESTMENTS -200 830,000 0 0
RESTRICTED CASH -115 0 0 0
TRADE ACCOUNTS RECEIVABLE
CUSTOMER ACCOUNTS REC-321 890,724 8,968,396 754,294
ACCUM PROV UNCOL ACT -322 19,465- 490,330- 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 64,093 0 0
OTHER ACCTS REC -409 197,651 445,835 0
ACCTS REC FROM ASSOC -432 5,821,633 7,292,540 0
FUEL STOCK -500 0 0 0
MATERIALS & SUPPLIES
PLANT & OPER SUPPLIES-610 326,557 437,491 236,382
MERCHANDISE -620 0 0 0
STORES EXPENSE UNDIST-630 0 0 0
PREPAYMENTS -700 820,227 181,065 3,418
OTHER
OTH CUR & ACCR ASSETS-900 3,387 55,790 0
FUNDS HELD BY TRUSTEE-145 0 0 0
INTEREST DEP & OTHER -120 0 0 0
------------ ------------ ------------
TOTAL CURRENT ASSETS 9,514,696 20,030,370 1,062,967
------------ ------------ ------------
ACCUM DEF INC TAXES H-254 0 17,945,024 0
OTHER -200 0 18,557,808 118,920
------------ ------------ ------------
TOTAL DEFERRED DEBITS 0 36,502,832 118,920
------------ ------------ ------------
TOTAL ASSETS 38,550,564 350,637,904 2,117,284
============ ============ ============
Exhibit A-1
Page 2 of 3
MP WATER RESOURCES GROUP, INC. CONSOLIDATED BALANCE SHEET
DECEMBER 1996
CONSOLIDATED ELIMINATIONS MP WATER FIBERCORE LAC
------------ ------------ ------------ ------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 62,774,485 94,759,205- 62,774,485 0 5,125,000 5,952,410
CAPITAL STOCK EXPENSE-300 0 0 0 0 0 0
RETAINED EARNINGS -400 124,640,539 61,194,726- 124,640,537 0 4,976,047- 54,479,392
PREFERRED STOCK (P)
5% SERIES -100 0 0 0 0 0 0
$7.36 SERIES -210 0 0 0 0 0 0
$8.90 SERIES -220 0 0 0 0 0 0
$8.30 SERIES -310 0 0 0 0 0 0
$9.125 SERIES -320 0 0 0 0 0 0
LONG-TERM DEBT (D)
BONDS 103,375,576 0 0 0 0 0
BONDS HELD BY TRUSTEE 0 0 0 0 0 0
OTHER LONG-TERM DEBT -700 52,291,225 29,896,250- 30,000,000 0 0 14,400,000
UNAMORT PREM ON DEBT -850 0 0 0 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CAPITALIZATION 343,081,825 185,850,181- 217,415,022 0 148,953 74,831,802
------------ ------------ ------------ ------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 1,318,524 0 0 0 0 1,058,185
CURRENT MATURITIES -200 686,740 0 0 0 0 0
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 3,132,269 0 25 0 0 247,167
ACCTS PAY TO ASSOC CO-320 3,568,259 19,502,648- 11,784,318 0 210,638 6,996,646
ACCRUED TAXES
FEDERAL INCOME TAXES -401 211,904- 0 118,388- 0 341,079- 676,100
STATE INCOME TAXES -450 145,445 0 298,033 0 16,571- 0
OTHER ACCRUED TAXES -500 5,572,663 0 0 0 0 613,089
ACCRD DIVIDENDS & INTEREST
INTEREST ACCRUED -610 3,938,878 0 1,174,500 0 0 0
DIVIDENDS DECLARED -620 0 0 0 0 0 0
MATURED INTEREST -630 0 0 0 0 0 0
OTHER
CUSTOMER DEPOSITS -910 2,204,974 0 0 0 0 134,172
TAX COLLECTIONS PAY -920 259- 0 259- 0 0 0
MISC CURR & ACCR LIAB-930 7,062,214 0 1,560,320 0 0 952,826
------------ ------------ ------------ ------------ ------------ ------------
TOTAL CURRENT LIABILITIES 27,417,803 19,502,648- 14,698,549 0 147,012- 10,678,185
------------ ------------ ------------ ------------ ------------ ------------
CONTR IN AID OF CONST F-300 97,344,511 0 0 0 0 0
ACCUM DEF INCOME TAXES -100 20,413,123 0 387,846 0 0 0
ACC DEF INV TAX CREDITS-200 1,306,165 0 0 0 0 0
OTHER
MINORITY INTEREST -900 12,086,365 12,086,365 0 0 0 0
CUST ADV FOR CONSTR -910 0 0 0 0 0 0
OTHER DEF CREDITS -920 12,721,503 7,730,500- 303,638 0 0 5,745,526
LOST TIME RESERVE -930 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL DEFERRED CREDITS 143,871,667 4,355,865 691,484 0 0 5,745,526
------------ ------------ ------------ ------------ ------------ ------------
TOTAL LIABILITY & CAPITAL 514,371,295 200,996,964- 232,805,055 0 1,941 91,255,513
============ ============ ============ ============ ============ ============
HEATER SSU ISI
------------ ------------ ------------
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP -090 5,840,250 77,832,405 9,140
CAPITAL STOCK EXPENSE-300 0 0 0
RETAINED EARNINGS -400 4,824,710 6,385,900 480,773
PREFERRED STOCK (P)
5% SERIES -100 0 0 0
$7.36 SERIES -210 0 0 0
$8.90 SERIES -220 0 0 0
$8.30 SERIES -310 0 0 0
$9.125 SERIES -320 0 0 0
LONG-TERM DEBT (D)
BONDS 0 103,375,576 0
BONDS HELD BY TRUSTEE 0 0 0
OTHER LONG-TERM DEBT -700 13,560,801 24,196,250 30,424
UNAMORT PREM ON DEBT -850 0 0 0
UNAMORT DISC ON DEBT -860 0 0 0
------------ ------------ ------------
TOTAL CAPITALIZATION 24,225,761 211,790,131 520,337
------------ ------------ ------------
CURRENT LIABILITIES (L)
NOTES PAYABLE -100 0 260,339 0
CURRENT MATURITIES -200 5,400 624,500 56,840
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE -310 423,949 2,259,018 202,111
ACCTS PAY TO ASSOC CO-320 888,483 2,101,073 1,089,749
ACCRUED TAXES
FEDERAL INCOME TAXES -401 428,537- 0 0
STATE INCOME TAXES -450 136,017- 0 0
OTHER ACCRUED TAXES -500 60,419 4,885,394 13,762
ACCRD DIVIDENDS & INTEREST
INTEREST ACCRUED -610 0 2,764,378 0
DIVIDENDS DECLARED -620 0 0 0
MATURED INTEREST -630 0 0 0
OTHER
CUSTOMER DEPOSITS -910 189,701 1,881,101 0
TAX COLLECTIONS PAY -920 0 0 0
MISC CURR & ACCR LIAB-930 1,349,510 2,965,073 234,485
------------ ------------ ------------
TOTAL CURRENT LIABILITIES 2,352,908 17,740,876 1,596,947
------------ ------------ ------------
CONTR IN AID OF CONST F-300 13,484,797 83,859,713 0
ACCUM DEF INCOME TAXES -100 1,512,902- 21,538,180 0
ACC DEF INV TAX CREDITS-200 0 1,306,165 0
OTHER
MINORITY INTEREST -900 0 0 0
CUST ADV FOR CONSTR -910 0 0 0
OTHER DEF CREDITS -920 0 14,402,839 0
LOST TIME RESERVE -930 0 0 0
------------ ------------ ------------
TOTAL DEFERRED CREDITS 11,971,895 121,106,897 0
------------ ------------ ------------
TOTAL LIABILITY & CAPITAL 38,550,564 350,637,904 2,117,284
============ ============ ============
Exhibit A-1
Page 3 of 3
MP WATER RESOURCES GROUP, INC. CONSOLIDATED STATEMENT OF INCOME
DECEMBER 1996
CONSOLIDATED ELIMINATIONS MP WATER FIBERCORE LAC
------------ ------------ ------------ ------------ ------------ ------------
REVENUE - WATER R300 75,108,553 0 0 0 0 0
- WATER MISC R380 8,208,348 0 10,725 0 0 0
- AFDC T100 473,181 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL WATER OPERATIONS 83,790,082 0 10,725 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
- INVESTMENT T300 5,991,497 3,832,184- 8,384,353 0 0 0
- REAL ESTATE T711 29,166,453 0 0 0 0 29,166,453
- OTHER T530 43,565 0 43,565 0 0 0
- GAIN ON SALE T505 0 0 0 0 0 0
- EQUITY IN SUBS T200 1 20,166,757- 20,166,758 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL INV AND OTHER INCOME 35,201,516 23,998,941- 28,594,676 0 0 29,166,453
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 118,991,598 23,998,941- 28,605,401 0 0 29,166,453
------------ ------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES
OPERATION E305,T512 23,918,579 0 0 0 0 3,649,183
MAINTENANCE E405 4,453,877 0 0 0 0 0
DEPRECIATION E500,T590 11,154,525 0 0 0 0 175,741
PROPERTY TAXES E610,T570 4,147,061 0 0 0 0 0
OTHER TAXES E620,E621 4,316,944 0 0 0 0 0
ADMIN AND GENERAL E310 32,329,709 0 2,237,374 0 0 9,708,136
MINORITY INTEREST T511 3,698,211 3,698,211 0 0 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 12,616,135 3,832,184- 3,132,000 0 0 1,180,349
OTHER INTEREST EXP I340 786,505 0 79,186 0 0 0
AMORT OF DEBT EXP I300 0 0 0 0 0 0
AFDC-DEBT I200 309,391- 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 97,112,155 133,973- 5,448,560 0 0 14,713,409
------------ ------------ ------------ ------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 21,879,443 23,864,968- 23,156,841 0 0 14,453,044
INCOME TAX EXP E700,T400,6,7 10,973- 0 1,288,373- 0 0 4,038,013
------------ ------------ ------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERS 21,868,470 23,864,968- 21,868,468 0 0 18,491,057
NET INCOME 21,868,470 23,864,968- 21,868,468 0 0 18,491,057
PREFERRED DIVIDENDS V100 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMON 21,868,470 23,864,968- 21,868,468 0 0 18,491,057
COMMON DIVIDENDS V200 0 0 0 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
ENDING RETAINED EARNINGS 21,868,470 23,864,968- 21,868,468 0 0 18,491,057
============ ============ ============ ============ ============ ============
HEATER SSU ISI
------------ ------------ -----------
REVENUE - WATER R300 8,981,474 66,127,079 0
- WATER MISC R380 2,196,200 713,871 5,287,552
- AFDC T100 0 473,181 0
------------ ------------ ------------
TOTAL WATER OPERATIONS 11,177,674 67,314,131 5,287,552
------------ ------------ ------------
- INVESTMENT T300 549,844 889,484 0
- REAL ESTATE T711 0 0 0
- OTHER T530 0 0 0
- GAIN ON SALE T505 0 0 0
- EQUITY IN SUBS T200 0 0 0
------------ ------------ ------------
TOTAL INV AND OTHER INCOME 549,844 889,484 0
------------ ------------ ------------
TOTAL OPER REVENUE AND INCOME 11,727,518 68,203,615 5,287,552
------------ ------------ ------------
OPERATING EXPENSES
OPERATION E305,T512 3,140,949 16,541,023 587,424
MAINTENANCE E405 119,905 4,333,971 0
DEPRECIATION E500,T590 1,370,810 9,607,973 0
PROPERTY TAXES E610,T570 192,772 3,954,289 0
OTHER TAXES E620,E621 458,922 3,858,022 0
ADMIN AND GENERAL E310 2,352,050 13,809,144 4,223,005
MINORITY INTEREST T511 0 0 0
INTEREST EXPENSE
INTEREST ON LTD I100 1,244,334 10,881,691 9,946
OTHER INTEREST EXP I340 54,776 652,544 0
AMORT OF DEBT EXP I300 0 0 0
AFDC-DEBT I200 0 309,391- 0
------------ ------------ ------------
TOTAL OPERATING EXPENSES 8,934,518 63,329,266 4,820,375
------------ ------------ ------------
OPER INCOME FROM CONTIN OPER 2,793,000 4,874,349 467,177
INCOME TAX EXP E700,T400,6,7 1,088,823- 1,476,429- 195,361-
------------ ------------ ------------
INCOME FROM CONTINUING OPERS 1,704,177 3,397,920 271,816
NET INCOME 1,704,177 3,397,920 271,816
PREFERRED DIVIDENDS V100 0 0 0
------------ ------------ ------------
EARNINGS AVAILABLE FOR COMMON 1,704,177 3,397,920 271,816
COMMON DIVIDENDS V200 0 0 0
ADJ TO RETAINED EARNINGS V300 0 0 0
BEGIN RETAINED EARNINGS C425 0 0 0
------------ ------------ ------------
ENDING RETAINED EARNINGS 1,704,177 3,397,920 271,816
============ ============ ============
Exhibit A-2
Page 1 of 6
LEHIGH ACQUISITION CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-DEC-96
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-DEC-96
COMBINED
ENTITIES CONSOLIDATED
PURCHASE ACCOUNTING ADJUSTED LEHIGH ELIMINATIONS LEHIGH
COMBINED ADJUSTMENTS FOR PURCHASE ACQUISITION AND ACQUISITION
ENTITIES DR CR ADJUSTMTS CORPORATION ADJUSTMENTS CORPORATION
----------- ----------- ----------- ------------ ------------ ------------ ------------
ASSETS
Cash and cash equivalents 4,040,244 4,040,244 391,033 4,431,277
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 494,820 494,820 494,820
Contracts receivable-postacquisition:
Homesites, net of allowance
for cancels 3,715,273 48,170 3,763,443 3,763,443
Timeshare 583,455 2,317 585,772 585,772
Commercial notes 7,145,255 7,145,255 7,145,255
----------- ----------- ----------- ----------- ----------- ------------ -----------
Total contracts receivable-postacq 11,443,983 50,487 11,494,470 11,494,470
----------- ----------- ----------- ----------- ----------- ------------ -----------
Contracts receivable-preacquisition 10,690,535 1,208,842 9,481,693 9,481,693
Due from affiliates:
Water and wastewater connections 4,199,328 4,199,328 4,199,328
Tax share 1,308,566 (1,308,566)
Other 14,673,168 14,673,168 (14,673,168)
----------- ----------- ----------- ----------- ----------- ------------ -----------
Total due from affiliates 18,872,496 18,872,496 1,308,566 (15,981,734) 4,199,328
----------- ----------- ----------- ----------- ----------- ------------ -----------
Investments/advances to subsidiaries 55,886,432 (55,886,432)
Property and equipment 2,944,010 2,739,409 5,683,419 2,225 5,685,644
Less accum depreciation (2,052,999) 20,221 2,534,540 (4,567,318) (779) (4,568,097)
Less bargain differential-PP&E 548,342 688,415 (140,073) (140,073)
----------- ----------- ----------- ----------- ----------- ------------ -----------
Net property and equipment 891,011 3,307,972 3,222,955 976,028 1,446 977,474
----------- ----------- ----------- ----------- ----------- ------------ -----------
Land, land improvements and CIP 50,199,383 6,240,285 56,439,668 56,439,668
Less bargain differential-land 2,686,186 23,860,715 (21,174,529) (21,174,529)
----------- ----------- ----------- ----------- ----------- ------------ -----------
Net land, land improvements 50,199,383 8,926,471 23,860,715 35,265,139 35,265,139
----------- ----------- ----------- ----------- ----------- ------------ -----------
Investment in joint venture 743,580 424,419 319,161 319,161
Deferred Income Tax 23,571,484 23,571,484
Other assets 931,240 931,240 (10,573) 920,667
----------- ----------- ----------- ----------- ----------- ------------ -----------
98,307,292 16,432,001 81,875,291 81,148,388 (71,868,166) 91,155,513
=========== =========== =========== =========== =========== ============ ===========
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 247,167 247,167 247,167
Customer Deposits 134,172 134,172 134,172
Accrued expenses:
Real estate taxes 613,089 613,089 613,089
Other 947,220 947,220 5,606 952,826
----------- ----------- ----------- ----------- ----------- ------------ -----------
Total accrued expenses 1,560,309 1,560,309 5,606 1,565,915
----------- ----------- ----------- ----------- ----------- ------------ -----------
Due to affiliates:
Utility fee credit 1,100,000 1,100,000 1,100,000
Tax share 2,542,366 2,542,366 (1,308,566) 1,233,800
Other 19,177,647 (14,673,169) 4,504,478
----------- ----------- ----------- ----------- ----------- ------------ -----------
Total due to affiliates 3,642,366 3,642,366 19,177,647 (15,981,735) 6,838,278
----------- ----------- ----------- ----------- ----------- ------------ -----------
Contingency reserves 4,522,394 4,522,394 4,522,394
Deferred income 190,133 1,091,367 1,281,500 1,281,500
Income taxes payable 176,100 176,100 500,000 676,100
Notes payable 24,852 24,852 1,033,333 1,058,185
Notes payable - long term 14,400,000 14,400,000 14,400,000
Minority interest
Common stock and R/E (deficit):
Common stock 21,100 21,100 117 (21,100) 117
Capital in excess of par value 88,738,150 56,219,827 32,518,323 5,952,293 (32,518,323) 5,952,293
Retained earnings (deficit) (15,349,451) 38,696,459 23,347,008 54,479,392 (23,347,008) 54,479,392
----------- ----------- ----------- ----------- ----------- ------------ -----------
Total C/S and R/E (deficit) 73,409,799 56,219,827 38,696,459 55,886,431 60,431,802 (55,886,431) 60,431,802
----------- ----------- ----------- ----------- ----------- ------------ -----------
98,307,292 16,432,001 81,875,291 81,148,388 (71,868,166) 91,155,513
=========== =========== =========== =========== =========== ============ ===========
Exhibit A-2
Page 2 of 6
COMBINED ENTITIES CONSOLDIATING BALANCE SHEET AS OF 31-Dec-96
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-Dec-96
LEHIGH INTERLACKEN SUNDOWNER TOTAL
CORPORATION LAKES PROPERTIES, SRC OF COMBINED
AND SUBSIDIARIES ESTATES INC. FLORIDA ENTITIES
---------------- ----------- ------------ -------- -------- ------- -----------
ASSETS
Cash and cash equivalents 3,986,715 40,403 13,126 4,040,244
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 437,952 28,549 28,319 494,820
Contracts receivable-postacquisition:
Homesites, net of allowance for
cancels 3,544,830 87,371 83,072 3,715,273
Timeshare 583,455 583,455
Commercial notes 7,145,255 7,145,255
----------- ----------- ----------- --------- -------- ------- -----------
Total contracts receivable-postacq 11,273,540 87,371 83,072 11,443,983
----------- ----------- ----------- --------- -------- ------- -----------
Contracts receivable-preacquisition 10,690,535 10,690,535
Due from affiliates:
Water and wastewater connections 4,199,328 4,199,328
Tax share
Other 13,391,700 538,777 399,167 343,524 14,673,168
----------- ----------- ----------- --------- -------- ------- -----------
Total due from affiliates 17,591,028 538,777 399,167 343,524 18,872,496
----------- ----------- ----------- --------- -------- ------- -----------
Investments/advances to subsidiaries
Property and equipment 2,944,010 2,944,010
Less accum depreciation (2,052,999) (2,052,999)
Less bargain differential-PP&E
----------- ----------- ----------- --------- -------- ------- -----------
Net property and equipment 891,011 891,011
----------- ----------- ----------- --------- -------- ------- -----------
Land, land improvements and CIP 50,142,288 57,095 50,199,383
Less bargain differential-land
----------- ----------- ----------- --------- -------- ------- -----------
Net land, land improvements 50,142,288 57,095 50,199,383
----------- ----------- ----------- --------- -------- ------- -----------
Investment in joint venture 743,580 743,580
Deferred Income Tax
Other assets 928,679 2,561 931,240
----------- ----------- ----------- --------- -------- ------- -----------
96,685,328 695,100 580,779 346,085 98,307,292
=========== =========== =========== ========= ======== ======= ===========
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 244,734 2,204 229 247,167
Customer Deposits 125,000 317 8,855 134,172
Accrued expenses:
Real estate taxes 537,264 38,066 37,759 613,089
Other 945,415 526 1,279 947,220
----------- ----------- ----------- --------- -------- ------- -----------
Total accrued expenses 1,482,679 38,592 39,038 1,560,309
----------- ----------- ----------- --------- -------- ------- -----------
Due to affiliates:
Utility fee credit 1,100,000 1,100,000
Tax share 2,387,366 126,400 19,100 9,500 2,542,366
Other
----------- ----------- ----------- --------- -------- ------- -----------
Total due to affiliates 3,487,366 126,400 19,100 9,500 3,642,366
----------- ----------- ----------- --------- -------- ------- -----------
Contingency reserves 4,522,394 4,522,394
Deferred income 190,133 190,133
Income taxes payable 176,100 176,100
Notes payable 24,852 24,852
Notes payable - long term 14,400,000 14,400,000
Minority interest
Common stock and R/E (deficit):
Common stock 500 20,000 500 100 21,100
Capital in excess of par value 79,290,534 2,089,678 7,249,487 108,451 88,738,150
Retained earnings (deficit) (7,258,964) (1,582,091) (6,736,430) 228,034 (15,349,451)
----------- ----------- ----------- --------- -------- ------- -----------
Total C/S and R/E (deficit) 72,032,070 527,587 513,557 336,585 73,409,799
----------- ----------- ----------- --------- -------- ------- -----------
96,685,328 695,100 580,779 346,085 98,307,292
=========== =========== =========== ========= ======== ======= ===========
Exhibit A-2
Page 3 of 6
LEHIGH CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-DEC-96
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-DEC-96
TOTAL LEHIGH
HOME AT OTHER LEHIGH CORPORATION
LEHIGH, INC. PALM COAST CORPORATION LEHIGH AND
(Sold 1/31/96) HOLDINGS, INC. SUBSIDIARIES CORPORATION ELIMINATIONS SUBSIDIARIES
-------------- -------------- ------------ ------------- ------------ ------------
ASSETS
Cash and cash equivalents 650,859 237,350 3,098,506 3,986,715
Inventory and supplies
Residential construction in progress
Trade and miscellaneous accounts rec 240,616 34,058 163,278 437,952
Contracts receivable-postacquisition:
Homesites, net of allowance for
cancels 672,094 673,698 2,199,038 3,544,830
Timeshare 583,455 583,455
Commercial notes 1,587,000 625,000 4,933,255 7,145,255
----------- ----------- ------------ ------------ ----------- -----------
Total contracts receivable-postacq 2,259,094 1,298,698 7,715,748 11,273,540
----------- ----------- ------------ ------------ ----------- -----------
Contracts receivable-preacquisition 8,042,504 2,648,031 10,690,535
Due from affiliates:
Water and wastewater connections 4,199,328 4,199,328
Tax share 691,534 (691,534)
Other 4,663,336 12,238,797 (3,510,433) 13,391,700
----------- ----------- ------------ ------------ ----------- -----------
Total due from affiliates 4,663,336 17,129,659 (4,201,967) 17,591,028
----------- ----------- ------------ ------------ ----------- -----------
Investments/advances to subsidiaries 60,196,962 (60,196,962)
Property and equipment 37,348 6,149 2,900,513 2,944,010
Less accum depreciation (1,372) (512) (2,051,115) (2,052,999)
Less bargain differential-PP&E
----------- ----------- ------------ ------------ ----------- -----------
Net property and equipment 35,976 5,637 849,398 891,011
----------- ----------- ------------ ------------ ----------- -----------
Land, land improvements and CIP 23,237,875 3,924,179 23,167,808 (187,574) 50,142,288
Less bargain differential-land
----------- ----------- ------------ ------------ ----------- -----------
Net land, land improvements 23,237,875 3,924,179 23,167,808 (187,574) 50,142,288
----------- ----------- ------------ ------------ ----------- -----------
Investment in joint venture 743,580 743,580
Deferred Income Tax
Other assets 556,081 70,418 302,180 928,679
----------- ----------- ------------ ------------ ----------- -----------
35,023,005 10,233,676 116,015,150 (64,586,503) 96,685,328
=========== =========== ============ ============ =========== ===========
LIAB, CAP STOCK AND R/E (DEFICIT)
Trade accounts payable 49,380 4,320 191,034 244,734
Customer Deposits 125,000 125,000
Accrued expenses:
Real estate taxes 409,564 127,700 537,264
Other 494,173 42,412 408,830 945,415
----------- ----------- ------------ ------------ ----------- -----------
Total accrued expenses 903,737 42,412 536,530 1,482,679
----------- ----------- ------------ ------------ ----------- -----------
Due to affiliates:
Utility fee credit 1,100,000 1,100,000
Tax share 1,530,200 1,548,700 (691,534) 2,387,366
Other 3,486,312 24,121 (3,510,433)
----------- ----------- ------------ ------------ ----------- -----------
Total due to affiliates 5,016,512 1,572,821 1,100,000 (4,201,967) 3,487,366
----------- ----------- ------------ ------------ ----------- -----------
Contingency reserves 1,235,554 3,286,840 4,522,394
Deferred income 386,244 (8,537) (187,574) 190,133
Income taxes payable 174,100 2,000 176,100
Notes payable 23,852 1,000 24,852
Notes payable - long term 14,400,000 14,400,000
Minority interest
Common stock and R/E (deficit):
Common stock 500 1,550 500 (2,050) 500
Capital in excess of par value 13,037,927 8,512,929 79,290,534 (21,550,856) 79,290,534
Retained earnings (deficit) 181,443 (288,600) 31,492,249 (38,644,056) (7,258,964)
----------- ----------- ------------ ------------ ----------- -----------
Total C/S and R/E (deficit) 13,219,870 8,225,879 110,783,283 (60,196,962) 72,032,070
----------- ----------- ------------ ------------ ----------- -----------
35,023,005 10,233,676 116,015,150 (64,586,503) 96,685,328
=========== =========== ============ ============ =========== ===========
Exhibit A-2
Page 4 of 6
LEHIGH ACQUISITION CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-DEC-96
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-DEC-96
COMBINED
ENTITIES CONSOLIDATED
PURCHASE ACCOUNTING ADJUSTED LEHIGH ELIMINATIONS LEHIGH
COMBINED ADJUSTMENTS FOR PURCHASE ACQUISITION AND ACQUISITION
ENTITIES DR CR ADJUSTMTS CORPORATION ADJUSTMENTS CORPORATION
----------- ----------- ----------- ------------ ------------ ------------ ------------
Revenues:
Lots with roads only 858,281 858,281 858,281
Builder lots (serviced) 1,910,079 1,910,079 1,910,079
Other lot sales 3,643,753 3,643,753 3,643,753
Less estimated uncollectible
sales (140,317) (140,317) (140,317)
----------- ----------- ----------- ----------- ------------ ----------- -----------
Net homesite sales 6,271,796 6,271,796 6,271,796
----------- ----------- ----------- ----------- ------------ ----------- -----------
Commercial/bulk land sales 9,888,292 9,888,292 9,888,292
Timeshare sales 182,265 6,691 188,956 188,956
Residential sales 129,660 129,660 129,660
Discount earned on acquired
receivables 2,967,843 1,614,422 4,582,265 4,582,265
Bargain differential earned:
Lots with roads only 384,824 384,824 384,824
Builder lots (serviced) 348,353 348,353 348,353
Timeshare
Commercial/bulk land 1,408,118 1,408,118 1,408,118
Receivables
Property and equipment 548,342 548,342 548,342
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total bargain differential
earned 2,689,637 2,689,637 2,689,637
----------- ----------- ----------- ----------- ------------ ----------- -----------
Finance income 870,849 870,849 3,011 873,860
Operating revenues - subsidiaries 4,562,045 5,416 4,567,461 4,567,461
Other revenues 2,588,750 75,413 2,664,163 2,664,163
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total revenues 27,461,500 4,391,579 31,853,079 3,011 31,856,090
----------- ----------- ----------- ----------- ------------ ----------- -----------
Cost of Sales:
Lots with roads only 449,540 35,866 485,406 485,406
Builder lots (serviced) 988,853 15,367 1,004,220 1,004,220
Other lot sales 937,174 937,174 937,174
Commercial/bulk land sales 2,704,425 1,105,318 3,809,743 3,809,743
Timeshare sales 123,064 123,064
Residential sales 102,277 102,277 102,277
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total cost of sales 5,305,333 1,156,551 123,064 6,338,820 6,338,820
----------- ----------- ----------- ----------- ------------ ----------- -----------
Expenses:
Selling expenses 3,397,689 3,397,689 3,397,689
Property taxes 2,792,445 2,792,445 2,792,445
General and administrative
expenses 2,814,337 291,251 2,523,086 147,030 240,000 2,910,116
Operating expenses - subsidiaries 602,428 5,923 596,505 (240,000) 356,505
Other expenses 4,774,566 4,515,012 259,554 259,554
Depreciation 195,660 20,141 175,519 222 175,741
Interest expense 924,637 924,637 255,712 1,180,349
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total expenses 15,501,762 4,832,327 10,669,435 402,964 11,072,399
----------- ----------- ----------- ----------- ------------ ----------- -----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 6,654,405 1,156,551 9,346,970 14,844,824 (399,953) 14,444,871
Provision for (reduction) income
taxes:
Current 2,947,438 2,947,438 (291,400) 2,656,038
Deferred (6,694,051) (6,694,051)
----------- ----------- ----------- ----------- ------------ ----------- -----------
2,947,438 2,947,438 (6,985,451) (4,038,013)
Income (loss) before minority
interest and equity in
earnings of consolidated
subsidiaries 3,706,967 1,156,551 9,346,970 11,897,386 6,585,498 18,482,884
Minority interest 8,173 8,173 8,173
----------- ----------- ----------- ----------- ------------ ----------- -----------
Net income (loss) before equity in
earnings of consolidated
subsidiaries 3,715,140 1,156,551 9,346,970 11,905,559 6,585,498 18,491,057
Equity in earnings of subsidiaries 11,905,559 (11,905,559)
----------- ----------- ----------- ----------- ------------ ----------- -----------
Net income (loss) 3,715,140 1,156,551 9,346,970 11,905,559 18,491,057 (11,905,559) 18,491,057
R/E (deficit) begin of period (15,964,591) 30,506,040 14,541,449 35,988,335 (14,541,449) 35,988,335
Dividends from (advances to) subs (3,100,000) (3,100,000) 3,100,000
----------- ----------- ----------- ----------- ------------ ----------- -----------
R/E (deficit) end of period (15,349,451) 38,696,459 23,347,008 54,479,392 (23,347,008) 54,479,392
=========== =========== =========== =========== ============ =========== ===========
Exhibit A-2
Page 5 of 6
COMBINED ENTITIES CONSOLIDATING BALANCE SHEET AS OF 31-DEC-96
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-DEC-96
LEHIGH
CORPORATION INTERLACHEN SUNDOWNER TOTAL
AND LAKES PROPERTIES SRC OF COMBINED
SUBSIDIARIES ESTATES INC. FLORIDA ENTITIES
------------ ----------- ----------- ------------ ------------ ------------ ------------
Revenues:
Lots with roads only 858,281 858,281
Builder lots (serviced) 1,910,079 1,910,079
Other lot sales 3,643,753 3,643,753
Less estimated uncollectible
sales (140,317) (140,317)
----------- ----------- ----------- ----------- ------------ ----------- -----------
Net homesite sales 6,271,796 6,271,796
----------- ----------- ----------- ----------- ------------ ----------- -----------
Commercial/bulk land sales 9,888,292 9,888,292
Timeshare sales 182,265 182,265
Residential sales 129,660 129,660
Discount earned on acquired
receivables 2,221,428 344,076 402,339 2,967,843
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total bargain differential
earned
----------- ----------- ----------- ----------- ------------ ----------- -----------
Finance income 838,733 16,515 15,601 870,849
Operating revenues - subsidiaries 4,427,046 59,635 37,116 38,248 4,562,045
Other revenues 2,588,750 2,588,750
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total revenues 26,547,970 420,226 455,056 38,248 27,461,500
----------- ----------- ----------- ----------- ------------ ----------- -----------
Cost of Sales:
Lots with roads only 449,540 449,540
Builder lots (serviced) 988,853 988,853
Other lot sales 937,174 937,174
Commercial/bulk land sales 2,704,425 2,704,425
Timeshare sales 123,064 123,064
Residential sales 102,277 102,277
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total cost of sales 5,305,333 5,305,333
----------- ----------- ----------- ----------- ------------ ----------- -----------
Expenses:
Selling expenses 3,366,990 23,269 7,430 3,397,689
Property taxes 2,773,648 9,902 8,895 2,792,445
General and administrative
expenses 2,811,747 1,837 753 2,814,337
Operating expenses - subsidiaries 355,555 121,330 124,593 950 602,428
Other expenses 4,774,566 4,774,566
Depreciation 195,660 195,660
Interest expense 924,637 924,637
----------- ----------- ----------- ----------- ------------ ----------- -----------
Total expenses 15,202,803 156,338 141,671 950 15,501,762
----------- ----------- ----------- ----------- ------------ ----------- -----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 6,039,834 263,888 313,385 37,298 6,654,405
Provision for (reduction) income
taxes:
Current 2,791,999 126,400 19,100 9,939 2,947,438
Deferred
----------- ----------- ----------- ----------- ------------ ----------- -----------
2,791,999 126,400 19,100 9,939 2,947,438
Income (loss) before minority
interest and equity in
earnings of consolidated
subsidiaries 3,247,835 137,488 294,285 27,359 3,706,967
Minority interest 8,173 8,173
----------- ----------- ----------- ----------- ------------ ----------- -----------
Net income (loss) before equity in
earnings of consolidated
subsidiaries 3,256,008 137,488 294,285 27,359 3,715,140
Equity in earnings of subsidiaries
----------- ----------- ----------- ----------- ------------ ----------- -----------
Net income (loss) 3,256,008 137,488 294,285 27,359 3,715,140
R/E (deficit) begin of period (7,414,972) (1,719,579) (7,030,715) 200,675 (15,964,591)
Dividends from (advances to) subs (3,100,000) (3,100,000)
----------- ----------- ----------- ----------- ------------ ----------- -----------
R/E (deficit) end of period (7,258,964) (1,582,091) (6,736,430) 228,034 (15,349,451)
=========== =========== =========== =========== ============ =========== ===========
Exhibit A-2
Page 6 of 6
LEHIGH CORPORATION AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET AS OF 31-DEC-96
INCOME STATEMENT FOR THE 12 MONTHS ENDED 31-DEC-96
HOME AT TOTAL LEHIGH
LEHIGH, OTHER LEHIGH CORPORATION
INC.(Sold PALM COAST CORPORATION LEHIGH AND
1/31/96) HOLDINGS, INC. SUBSIDIARIES CORPORATION ELIMINATIONS SUBSIDIARIES
------------ -------------- ------------ ------------ ------------ ------------
Revenues:
Lots with roads only 858,281 858,281
Builder lots (serviced) 1,910,079 1,910,079
Other lot sales 1,620,295 2,023,458 3,643,753
Less estimated uncollectible
sales (35,600) (35,400) (69,317) (140,317)
---------- ------------ ----------- ------------ ----------- -----------
Net homesite sales 1,584,695 1,988,058 2,699,043 6,271,796
---------- ------------ ----------- ------------ ----------- -----------
Commercial/bulk land sales 5,616,677 275,000 3,996,615 9,888,292
Timeshare sales 182,265 182,265
Residential sales 129,660 129,660
Discount earned on acquired
receivables 1,556,671 664,757 2,221,428
Bargain differential earned:
Lots with roads only
Builder lots (serviced)
Timeshare
Commercial/bulk land
Receivables
Property and equipment
---------- ------------ ----------- ------------ ----------- -----------
Total bargain differential
earned
---------- ------------ ----------- ------------ ----------- -----------
Finance income 32,029 44,575 763,187 (1,058) 838,733
Operating revenues - subsidiaries 230,865 4,155,845 68,581 (28,245) 4,427,046
Other revenues 78,666 (238,550) 153,409 2,594,658 567 2,588,750
---------- ------------ ----------- ------------ ----------- -----------
Total revenues 208,326 8,782,387 6,616,887 10,969,106 (28,736) 26,547,970
---------- ------------ ----------- ------------ ----------- -----------
Cost of Sales:
Lots with roads only 449,540 449,540
Builder lots (serviced) 988,853 988,853
Other lot sales 327,726 609,448 937,174
Commercial/bulk land sales 1,123,335 74,161 1,506,929 2,704,425
Timeshare sales 123,064 123,064
Residential sales 102,277 102,277
---------- ------------ ----------- ------------ ----------- -----------
Total cost of sales 102,277 1,451,061 683,609 3,068,386 5,305,333
---------- ------------ ----------- ------------ ----------- -----------
Expenses:
Selling expenses 9,245 1,348,059 696,396 1,313,290 3,366,990
Property taxes 1,565,940 184,174 1,023,534 2,773,648
General and administrative
expenses 22,830 999,376 115,568 1,673,973 2,811,747
Operating expenses - subsidiaries 383,800 (28,245) 355,555
Other expenses 4,774,566 4,774,566
Depreciation 1,005 11,797 9,733 174,043 (918) 195,660
Interest expense 910,872 2,436 12,387 (1,058) 924,637
---------- ------------ ----------- ------------ ----------- -----------
Total expenses 33,080 4,836,044 1,392,107 8,971,793 (30,221) 15,202,803
---------- ------------ ----------- ------------ ----------- -----------
Income (loss) before income taxes,
minority interest, and equity in
earnings of subsidiaries 72,969 2,495,282 4,541,171 (1,071,073) 1,485 6,039,834
Provision for (reduction) income
taxes:
Current 1,755,100 1,710,840 (673,941) 2,791,999
Deferred
---------- ------------ ----------- ------------ ----------- -----------
1,755,100 1,710,840 (673,941) 2,791,999
Income (loss) before minority
interest and equity in
earnings of consolidated
subsidiaries 72,969 740,182 2,830,331 (397,132) 1,485 3,247,835
Minority interest (1,459) (14,015) 23,647 8,173
---------- ------------ ----------- ------------ ----------- -----------
Net income (loss) before equity in
earnings of consolidated
subsidiaries 71,510 740,182 2,816,316 (397,132) 25,132 3,256,008
Equity in earnings of subsidiaries 11,843,559 (11,843,559)
---------- ------------ ----------- ------------ ----------- -----------
Net income (loss) 71,510 740,182 2,816,316 11,446,427 (11,818,427) 3,256,008
R/E (deficit) begin of period (391,364) (558,739) (2,575,823) 23,145,822 (27,034,868) (7,414,972)
Dividends from (advances to) subs 319,854 (529,093) (3,100,000) 209,239 (3,100,000)
---------- ------------ ----------- ------------ ----------- -----------
R/E (deficit) end of period 181,443 (288,600) 31,492,249 (38,644,056) (7,258,964)
========== ============ =========== ============ =========== ===========
Exhibit A-3
Page 1 of 3
HEATER UTILITIES, INC.
CONSOLIDATED BALANCE SHEET
FOR THE PERIOD ENDED DECEMBER 31, 1996
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER ELIMINATIONS TOTAL
ASSETS
PROPERTY AND EQUIPMENT
Utility plant 34,972,262 8,059,216 1,420,701 44,452,179
Non utility property 10,520 10,520
------------- --------- ----------- ----------- ------------ -------------
34,982,782 8,059,216 1,420,701 44,462,699
------------- --------- ----------- ----------- ------------ -------------
Less:
Acquisition adjustment (net) (3,605,996) 68,989 (111,679) (3,648,685)
Accumulated depreciation (9,064,389) (2,520,462) (392,243) (11,977,095)
------------- --------- ----------- ----------- ------------ -------------
(12,670,385) (2,451,472) (503,922) (15,625,780)
------------- --------- ----------- ----------- ------------ -------------
INVESTMENTS
Other Investments 6,020,582 6,020,582
Investments In Subs. 1,258,636 (1,258,636)
------------- --------- ----------- ----------- ------------ -------------
7,279,218 (1,258,636) 6,020,582
------------- --------- ----------- ----------- ------------ -------------
CURRENT ASSETS
Cash 535,982 39,168 75 575,225
Working funds 3,913 750 4,663
Investment in CD's 750,000 30,000 50,000 830,000
Customer accounts receivable 673,267 173,216 44,241 890,724
less allowances for doubtful accounts (16,394) (2,057) (1,014) (19,465)
Notes receivable 1,980,961 12,020 (1,928,887) 64,093
Other accounts receivable 172,254 5,374 310 9,713 187,651
Accts. receivable from Assoc. Companies 511,086 (511,086)
Installation materials and supplies 274,669 39,406 12,481 326,557
Prepaid expenses 666,202 132,491 21,534 820,227
Other current and accrued assets 950 950
------------- --------- ----------- ----------- ------------ -------------
TOTAL CURRENT ASSETS 5,551,939 430,568 128,377 (2,430,260) 3,680,624
------------- --------- ----------- ----------- ------------ -------------
REGULATORY ASSETS 1,320 1,117 2,437
TOTAL ASSETS 35,143,554 6,039,631 1,046,273 (3,688,896) 38,540,563
============= ========= =========== =========== ============ =============
Exhibit A-3
Page 2 of 3
HEATER UTILITIES, INC.
CONSOLIDATED BALANCE SHEET
FOR THE PERIOD ENDED DECEMBER 31, 1996
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 7,500 1,000 (8,500) 13,500
Additional paid in capital 5,826,750 213,428 464,864 (678,293) 5,826,750
Retained Earnings 4,479,274 1,054,336 (137,064) (571,843) 4,824,703
------------ ----------- ----------- ----------- ----------- -----------
10,319,524 1,275,264 328,801 (1,258,636) 10,664,953
LONG-TERM DEBT 13,560,801 1,400,961 527,926 (1,928,887) 13,560,801
CURRENT LIABILITIES
Accounts payable to vendors 664,605 46,634 23,962 735,201
Accts. payable to Assoc. Companies 542,991 (41,619) (501,373) 0
Accounts payable to MP&L 567,238 567,238
Income taxes payable - Federal (342,626) (115,060) 29,149 (428,537)
Income taxes payable - State (105,950) (31,132) 1,065 (136,017)
Taxes other than income 42,473 13,950 3,996 60,419
Customer deposits 29,703 159,998 189,701
Other accrued expenses 1,046,686 239,442 71,158 1,357,286
Current portion of long-term debt 5,400 5,400
------------ ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT LIABILITIES 1,907,528 856,824 87,710 (501,373) 2,350,690
C.I.A.C. 10,670,510 2,707,185 107,101 13,484,797
ACCUM. DEFERRED INC. TAXES (1,305,681) (201,811) (5,411) (1,512,902)
REGULATORY LIABILITIES (9,129) 1,208 145 (7,776)
------------ ----------- ----------- ----------- ----------- -----------
35,143,554 6,039,631 1,046,273 (3,688,896) 38,540,563
============ =========== =========== =========== =========== ===========
Exhibit A-3
Page 3 of 3
HEATER UTILITIES, INC.
CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
HEATER HEATER OF BROOKWOOD UPSTATE
UTILITIES SEABROOK WATER CORP. HEATER TOTAL
Operating Revenues
Water $5,807,725 $189,858 $1,470,655 $348,118 $7,816,357
Sewer 562,435 175,634 738,069
Other 279,751 6,143 114,162 26,992 427,048
---------- ---------- ---------- ---------- -----------
Total Operating Revenues 6,649,911 371,635 1,584,817 375,110 8,981,474
---------- ---------- ---------- ---------- -----------
Operating Revenue Deductions
Operations and Maintenance 2,327,505 142,369 478,922 156,375 3,105,172
Administrative and General 1,607,334 109,444 494,994 140,278 2,352,050
Taxes Other Than Income 344,865 11,006 88,963 14,088 458,922
Property Taxes 133,715 16,670 21,593 20,794 192,772
Depreciation 999,726 87,673 229,526 53,885 1,370,810
---------- ---------- ---------- ---------- -----------
Total Operating Revenue
Deductions 5,413,146 367,162 1,313,998 385,420 7,479,726
---------- ---------- ---------- ---------- -----------
Income From Operations 1,236,765 4,473 270,820 (10,310) 1,501,748
---------- ---------- ---------- ---------- -----------
Other Income
Interest Income 527,560 9,166 7,718 5402 549,847
Other Non-Utility income 929,423 1,204,709 57,984 4243 2,196,359
Other Income Deductions
Interest Expense 979,812 137,406 131,634 50,258 1,299,109
Other Non-Utility Deductions 152,010 1,078 2,706 47 155,841
---------- ---------- ---------- ---------- -----------
Total Other Income and Income
Deductions (325,161) (1,075,391) 68,637 40,660 (1,291,255)
---------- ---------- ---------- ---------- -----------
Net Income (Loss) Before Income Taxes 1,561,926 1,079,863 202,183 (50,969) 2,793,003
Estimated Income Taxes 623,885 401,624 80,992 (17,674) 1,088,828
Net Profit (Loss) $938,041 $678,239 $121,190 ($33,295) $1,704,175
========== ========== ========== ========== ===========
Exhibit A-4
Page 1 of 3
Consolidated MP Automotive Services, Inc. Balance Sheet
December 1996
Consolidated Eliminations ATSV ADSA
----------------- ---------------- ---------------- ----------------
Assets
Current Assets
Cash 22,646,028 0 1 22,646,027
Accounts Receivable 0 0 0 0
Minnesota Power 56,320,168 (6,830,755) 56,320,168 6,830,755
ADESA 0 (2,927,082) 2,927,082 0
Other 0 0 0 0
Trade 89,488,730 0 0 89,488,730
Allowance - Doubtful Accounts (5,434,346) 0 0 (5,434,346)
Inventory 1,220,782 0 0 1,220,782
Notes Receivable 0 (31,270,000) 31,270,000 0
Prepayments 3,341,341 0 5,791 3,335,550
Other Current Assets 0 0 0 0
----------------- ---------------- ---------------- ----------------
Total Current Assets 167,582,703 (41,027,837) 90,523,042 118,087,498
Investments in Sub 1 (256,914,517) 256,914,518 0
Auto Plant - Net 155,694,763 0 0 155,694,763
CWIP 11,579,000 0 0 11,579,000
Deferred Cost 821,265 0 0 821,265
Goodwill 170,433,001 (1,999) 0 170,435,000
Goodwill Amortization (4,752,317) 0 0 (4,752,317)
Intangible Assets 14,607,417 0 0 14,607,417
Intangible Amortization (2,784,000) 0 0 (2,784,000)
----------------- ---------------- ---------------- ----------------
Total Assets 513,181,833 (297,944,353) 347,437,560 463,688,626
================= ================ ================ ================
Exhibit A-4
Page 2 of 3
Consolidated MP Automotive Services, Inc. Balance Sheet
December 1996
Consolidated Eliminations ATSV ADSA
----------------- ---------------- ---------------- ----------------
Liabilities and Stockholder's Equity
Current Liabilities
Accounts Payable
ADESA 1 (33,557,837) 1,161,007 32,396,831
Minnesota Power 6,539,306 0 6,539,306 0
Other 52,670,257 0 1,153,750 51,516,507
Current maturities 132,000 0 0 132,000
Notes Payable 245,000 (7,470,000) 0 7,715,000
Accrued Income Taxes 1,125,498 0 428,080 697,418
Accrued Other Taxes 12,963 0 0 12,963
Accrued Other Liabilities 11,036,290 0 0 11,036,290
----------------- ---------------- ---------------- ----------------
Total Current Liabilities 71,761,315 (41,027,837) 9,282,143 103,507,009
Long-Term Debt 98,915,099 0 0 98,915,099
Deferred Income Taxes 2,501,000 0 0 2,501,000
Minority Interest 1,776,000 0 0 1,776,000
----------------- ---------------- ---------------- ----------------
Total Liabilities 174,953,414 (41,027,837) 9,282,143 206,699,108
----------------- ---------------- ---------------- ----------------
Stockholder's Equity
Common Stock, Without Par
XXXX Shares Authorized
Issued and Outstanding 332,351,924 (253,294,857) 332,351,924 253,294,857
Retained Earnings 5,803,495 (3,621,659) 5,803,493 3,621,661
Cumulative Translation Adjustment 73,000 0 0 73,000
----------------- ---------------- ---------------- ----------------
Total Stockholder's Equity 338,228,419 (256,916,516) 338,155,417 256,989,518
----------------- ---------------- ---------------- ----------------
Total Liabilities and
Stockholder's Equity 513,181,833 (297,944,353) 347,437,560 463,688,626
================= ================ ================ ================
Exhibit A-4
Page 3 of 3
Consolidated MP Automotive Services, Inc. Statement of Income
Year To Date as of December 1996
Consolidated Eliminations ATSV ADSA
---------------- ---------------- ---------------- ----------------
Income
Auto Redistribution 182,949,376 0 0 182,949,376
Equity in Sub Earnings 0 (3,651,801) 3,651,801 0
Interest 2,864,671 (3,743,961) 5,617,126 991,506
Miscellaneous 0 0 0 0
---------------- ---------------- ---------------- ----------------
Total Income 185,814,047 (7,395,762) 9,268,927 183,940,882
---------------- ---------------- ---------------- ----------------
Expenses
Direct Auction 75,257,196 0 0 75,257,196
Maintenance 2,255,919 0 0 2,255,919
Property Taxes 1,974,759 0 0 1,974,759
Depreciation / Amortization 11,753,084 0 0 11,753,084
Interest 7,922,977 (3,743,961) 0 11,666,938
Administrative and General 74,635,276 0 2,061,709 72,573,567
---------------- ---------------- ---------------- ----------------
Total Expenses 173,799,211 (3,743,961) 2,061,709 175,481,463
---------------- ---------------- ---------------- ----------------
Income (Loss) Before Taxes 12,014,836 (3,651,801) 7,207,218 8,459,419
Minority Interest (778,972) (778,972) 0 0
Income Tax (Expense) Benefit (5,499,526) 0 (1,470,881) (4,028,645)
---------------- ---------------- ---------------- ----------------
Net Income (Loss) 5,736,338 (4,430,773) 5,736,337 4,430,774
---------------- ---------------- ---------------- ----------------
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 1996
CONSOLIDATED ELIMINATIONS REND UTIL
------------- ------------ ------------- ------------
NONUTIL PROP & INVESTMENTS(N)
NONUTILITY & OTHER
NONUTILITY PLANT -100 552,170 0 552,170 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 552,170 5,708,187 5,156,017- 0
------------- ------------ ------------- ------------
CURRENT ASSETS (A)
CASH
CASH -110 60,063 0 60,063 0
OTHER ACCOUNTS RECEIVABLE
NOTES RECEIVABLE -310 0 0 0 0
OTHER ACCOUNTS REC -409 848 0 848 0
ACCTS REC FROM ASSOC -432 11,490,604 17,115,320- 22,704,854 5,901,070
OTHER CURRENT ASSETS -900 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 11,551,515 17,115,320- 22,765,765 5,901,070
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES H-254 5,203,741 0 5,203,741 0
OTHER -200 32,036 0 32,036 0
------------- ------------ ------------- ------------
TOTAL DEFERRED DEBITS 5,235,777 0 5,235,777 0
------------- ------------ ------------- ------------
TOTAL ASSETS 17,339,462 11,407,133- 22,845,525 5,901,070
============= ============ ============= ============
CAPITALIZATION
COMMON EQUITY (C)
COMMON STK&PD IN CAP-090 5,487,500 6,397,500- 5,487,500 6,397,500
CAPITAL STOCK EXP-300 0 0 0 0
RETAINED EARNINGS-400 12,003,960- 12,105,687 12,003,960- 12,105,687-
LONG-TERM DEBT D-700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CAPITALIZATION 6,516,460- 5,708,187 6,516,460- 5,708,187-
------------- ------------ ------------- ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 0 0 0 0
ACCOUNTS PAYABLE 266,754 0 266,755 0
ACCOUNTS PAY TO ASSOC-322 18,900,000 17,115,320- 24,801,069 11,214,250
ACCRUED TAXES
FEDERAL INCOME TAXES -401 43,710- 0 1,951,840 1,995,550-
STATE INCOME TAXES -450 98,167- 0 923,860 1,022,027-
OTHER ACCRUED TAXES -500 7,646 0 7,646 0
MISC CURRENT LIAB -930 0 0 3,412,584- 3,412,584
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIE 19,032,523 17,115,320- 24,538,586 11,609,257
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES F-100 4,823,399 0 4,823,399 0
------------- ------------ ------------- ------------
TOTAL LIAB & CAPITALIZATION 17,339,462 11,407,133- 22,845,525 5,901,070
============= ============ ============= ============
Exhibit A-6
Page 2 of 2
RENDFIELD CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1996
CONSOLIDATED ELIMINATIONS REND UTIL
------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 0 0 0 0
ALLOW FOR FUNDS-EQUITY -100 0 0 0 0
INVESTMENT INCOME -300 139,659 0 139,659 0
EARNINGS FROM REACHALL -542 0 0 0 0
ALLOW-GAIN ON CAP SALE -543 0 0 0 0
OTHER MISCELLANEOUS INC-500 78,518- 0 78,518- 0
INCOME TAXES - INVEST -400 57,780- 0 57,780- 0
- MISC -600 460,471 0 460,471 0
------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 463,832 0 463,832 0
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
INCOME BEFORE INTEREST CHARGE 463,832 0 463,832 0
------------ ------------ ------------ ------------
OTHER INTEREST EXPENSE 1,035,258 0 1,035,258 0
------------ ------------ ------------ ------------
NET INCOME 571,426- 0 571,426- 0
============ ============ ============ ============
Exhibit A-7
Page 1 of 1
Upper Minnesota Properties, Inc.
Consolidating financial statements for Upper Minnesota Properties,
Inc. have been excluded from this exhibit because each subsidiary
within this consolidated group is not material to Minnesota
Power & Light Company's consolidating financial statements.
Exhibit A-8
Page 1 of 2
MINNESOTA PULP CONSOLIDATED BALANCE SHEET
DECEMBER 1996
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 11,101,353- 11,101,353 0
------------- ------------ ------------- ------------
TOTAL NONU PROP & INVEST 0 11,101,353- 11,101,353 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 14,620,591 17,159,205- 17,663,231 14,116,565
------------- ------------ ------------- ------------
TOTAL CURRENT ASSETS 14,654,250 17,159,205- 17,669,465 14,143,991
------------- ------------ ------------- ------------
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 14,654,250 28,260,558- 28,770,818 14,143,991
============= ============ ============= ============
CAPITALIZATION
COMMON STK&PD IN CAP-090 10,282,100 10,151,313- 10,282,100 10,151,314
RETAINED EARNINGS-400 1,342,016 950,040- 1,342,017 950,039
LONG-TERM DEBT D-700 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CAPITALIZATION 11,624,116 11,101,353- 11,624,117 11,101,353
------------- ------------ ------------- ------------
CURRENT LIABILITIES (L)
CURRENT MATURITITES - 200 0 0 0 0
ACCOUNTS PAYABLE 0 0 0 0
ACCOUNTS PAY TO ASSOC-322 3,030,134 17,159,205- 17,146,701 3,042,638
ACCRUED TAXES
FEDERAL INCOME TAXES -401 0 0 0 0
STATE INCOME TAXES -450 0 0 0 0
OTHER ACCRUED TAXES -500 0 0 0 0
INTEREST ACCRUED - 610 0 0 0 0
------------- ------------ ------------- ------------
TOTAL CURRENT LIABILITIES 3,030,134 17,159,205- 17,146,701 3,042,638
------------- ------------ ------------- ------------
ACCUM DEF INC TAXES F-100 0 0 0 0
------------- ------------ ------------- ------------
TOTAL LIAB & CAPITALIZATION 14,654,250 28,260,558- 28,770,818 14,143,991
============= ============ ============= ============
Exhibit A-8
Page 2 of 2
MINNESOTA PULP CONSOLIDATED STATEMENT OF INCOME
YEAR TO DATE AS OF DECEMBER 1996
CONSOLIDATED ELIMINATIONS MNPI MNP2
------------ ------------ ------------ ------------
OTHER INCOME & DEDUCTIONS (T)
EQUITY IN EARN OF SUBS -200 0 14,673- 14,673 0
ALLOW FOR FUNDS-EQUITY -100 0 0 0 0
INVESTMENT INCOME -300 0 0 0 0
EARNINGS FROM LSPI FIBER 543 0 0 0 0
OTHER MISCELLANEOUS INC-500 0 0 0 0
INCOME TAXES - INVEST -400 0 0 0 0
- MISC -600 14,673 0 0 14,673
------------ ------------ ------------ ------------
TOTAL OTHER INC & DEDUCT 14,673 14,673- 14,673 14,673
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
INCOME BEFORE INTEREST CHARGE 14,673 14,673- 14,673 14,673
------------ ------------ ------------ ------------
OTHER INTEREST EXPENSE 0 0 0 0
------------ ------------ ------------ ------------
NET INCOME 14,673 14,673- 14,673 14,673
============ ============ ============ ============
Exhibit A-9
Page 1 of 1
Abbreviations Used in Exhibits
Exhibit A
Minnesota Power & Light Company (MPL)
Superior Water, Light and Power Company (SWL)
Consolidated MP Water Resources Group, Inc. (CNWR)
Energy Land, Incorporated (ENLD)
Consolidated MP Automotive Services, Inc. (CNAD)
Consolidated RendField (CNRD)
BNI Coal, Ltd. (BNI)
Rainy River Energy Corporation (RAIN)
Synertec, Incorporated (SYNR)
Lakeview Financial Corporation 1 (LFC1)
Consolidated Upper Minnesota Properties, Inc. (CNUP)
Consolidated Minnesota Pulp, Incorporated (CNPI)
MP&L Capital I (MPC1)
Electric Outlet, Inc. (ELOT)
Exhibit A-1
MP Water Resources Group, Inc. (MP Water)
Fibercore, Incorporated (Fibercore)
Lehigh Acquisition Corporation (LAC)
Heater Utilities, Inc. (Heater)
Florida Water Services Corporation (SSU)
Instrumentation Services, Inc. (ISI)
Exhibit A-2
No abbreviations used
Exhibit A-3
Heater Utilities, Inc. (Heater Utilities)
Heater of Seabrook, Inc. (Heater of Seabrook)
Brookwood Water Corporation (Brookwood Water Corp.)
Upstate Heater Utilities, Inc. (Upstate Heater)
Exhibit A-4
MP Automotive Services, Inc. (ATSV)
ADESA Corporation (ADSA)
Exhibit A-5
No abbreviations used
Exhibit A-6
RendField Land Company, Inc. (REND)
UtilEquip, Incorporated (UTIL)
Exhibit A-7
No abbreviations used
Exhibit A-8
Minnesota Pulp, Inc. (MNPI)
Minnesota Pulp II, Inc. (MNP2)
OPUR3
1,000
YEAR
DEC-31-1996
JAN-01-1996
DEC-31-1996
PER-BOOK
2,146,049
846,928
69,221
