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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993 COMMISSION FILE NUMBER 1-6659
PHILADELPHIA SUBURBAN CORPORATION
---------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Pennsylvania 23-1702594
-------------- -------------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
762 Lancaster Avenue, Bryn Mawr, Pennsylvania 19010
---------------------------------------------- -------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code: (215)-527-8000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
------------------------- --------------------------
NEW YORK STOCK EXCHANGE, INC.
COMMON STOCK, PAR VALUE $.50 PER SHARE PHILADELPHIA STOCK EXCHANGE INC.
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
filing requirements for the past 90 days.
Yes __X__ No ______
State the aggregate market value of the voting stock held by nonaffiliates of
the registrant as of March 1, 1994. $184,498,379
For purposes of determining this amount only, registrant has defined
affiliates as including (a) the executive officers named in Part I of this 10-K
report, (b) all directors of registrant, and (c) each shareholder that has
informed registrant by March 1, 1994, that it has sole or shared voting power of
5% or more of the outstanding common stock of registrant.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock as of March 1, 1994. 11,404,928
Documents incorporated by reference
(1) Portions of registrant's 1993 Annual Report to shareholders have been
incorporated by reference into Parts I and II of this Form 10-K Report.
(2) Portions of the Proxy Statement, relative to the May 19, 1994 annual
meeting of shareholders of registrant, to be filed within 120 days after the end
of the fiscal year covered by this Form 10-K Report, have been incorporated by
reference into Part III of this Form 10-K Report.
PART I
ITEM 1. BUSINESS
Philadelphia Suburban Corporation ('PSC' or the 'Registrant'), a
Pennsylvania corporation, was incorporated in 1968. The business of PSC is
conducted almost entirely through its subsidiary Philadelphia Suburban Water
Company ('PSW'), a regulated public utility. PSC also owns a small data
processing service operation, Utility & Municipal Services, Inc. The information
appearing in 'Management's Discussion and Analysis' from the portions of PSC's
1993 Annual Report to shareholders filed as Exhibit 13 to this Form 10-K Report
is incorporated by reference herein.
In the third quarter of 1990, the Board of Directors authorized the sale of
Mentor Information Systems, Inc., Digital Systems, Inc., American Tele/Response
Group, Inc., Stoner Associates, Inc., and its subsidiary Kesler Engineering,
Inc.; and during the first quarter of 1991, the Board of Directors authorized
the sale of PSC Engineers & Consultants, Inc. During 1991, all the businesses
were sold except for American Tele/Response Group, Inc. and Kesler Engineering,
Inc., which were sold in the first quarter of 1993. The results of operations of
these businesses are accounted for as discontinued operations. Unless otherwise
indicated, as used herein the 'Company' includes the continuing operations of
both PSC and its consolidated subsidiaries. The sales of the non-water service
subsidiaries were authorized in order to allow the Company to concentrate its
activities on its core water utility operations.
Consistent with that decision, in December 1993, PSW acquired the water
utility assets and franchise rights of the Borough of Malvern for $1,323,000 in
cash. The acquisition of this water system added approximately 859 customers or
.3% to PSW's customer base and one square mile of service territory or .3% to
PSW's existing service territory. PSW has made a proposal to acquire a municipal
water system serving approximately 13,000 customers in an area contiguous to
PSW's service territory for a purchase price in excess of $20,000,000, although
there can be no assurance that the proposal will be accepted or that such a
transaction will be consummated. PSW is not currently a party to any definitive
agreement with respect to any pending acquisition. In December 1992, PSW
acquired the water utility assets of the West Whiteland Township and the Uwchlan
Township Municipal Authority water systems for $9,128,257 in cash and the
issuance of $1,776,947 in debt. The December 1992 acquisitions added
approximately 6,900 customers or 2.9% to PSW's customer base and 40 square miles
of service territory or 11.8% to PSW's existing service territory.
PHILADELPHIA SUBURBAN WATER COMPANY
General. PSW is an operating public utility company, which supplies water
to approximately 247,195 residential, commercial, industrial and public
customers. PSW's contiguous service territory is approximately 380 square miles,
comprising a large portion of the suburban area west and north of the City of
Philadelphia. This territory is primarily residential in nature and is
completely metered, except for fire hydrant service.
Based on the 1990 census, PSW estimates that the total number of persons
currently served is approximately 800,000. Excluding the customers that were
added as a result of the acquisitions in December 1993 and 1992, customer
accounts have grown at an average rate of approximately .6% per annum for the
last three years.
2
Operating revenues during the twelve months ended December 31, 1993 were
derived approximately as follows:
66.5% from residential customers
20.1% from commercial customers
4.6% from industrial customers
1.0% from public customers
5.9% from fire protection services
from sales to other water utilities and miscellaneous
1.9% customers
- ---------
100.0%
- ---------
- ---------
Selected operating statistics. Set forth below is a table showing certain
selected operating statistics for PSW for the past three years.
Revenues from water sales (000's omitted)
1993 1992 1991
--------- --------- ---------
Residential............................................ $ 66,183 $ 58,738 $ 57,191
Commercial............................................. 19,970 18,755 17,764
Industrial............................................. 4,568 4,387 4,065
Public................................................. 1,027 1,003 938
Fire protection........................................ 5,912 5,330 4,561
Other.................................................. 1,095 1,057 1,255
Tax Surcharge.......................................... 706 2,281 1,292
--------- --------- ---------
Total............................................. $ 99,461 $ 91,551 $ 87,066
--------- --------- ---------
--------- --------- ---------
Water sales (million gallons)
Residential............................................ 16,729 16,034 16,436
Commercial............................................. 7,441 7,146 7,224
Industrial............................................. 1,985 1,947 1,892
Public................................................. 294 277 291
Fire protection -- metered............................. 60 56 53
Other.................................................. 401 383 487
--------- --------- ---------
Total............................................. 26,910 25,843 26,383
--------- --------- ---------
--------- --------- ---------
System delivery by source (million gallons)
Surface (including Upper Merion reservoir)............. 24,635 24,230 24,567
Wells.................................................. 5,466 4,642 4,785
Purchased.............................................. 2,446 2,392 2,466
--------- --------- ---------
Total............................................. 32,547 31,264 31,818
--------- --------- ---------
--------- --------- ---------
3
Number of metered customers (end of year)
Residential............................................ 232,684 230,740 223,635
Commercial............................................. 10,720 10,547 9,800
Industrial............................................. 832 837 820
Public................................................. 696 671 658
Fire protection........................................ 2,248 1,980 1,694
Other.................................................. 15 13 9
--------- --------- ---------
Total............................................. 247,195 244,788 236,616
--------- --------- ---------
--------- --------- ---------
Average consumption per customer in gallons............ 110,368 108,258 110,978
--------- --------- ---------
--------- --------- ---------
Water supplies and usage. PSW derives its principal supply of water from
the Schuylkill River, five rural streams which are tributaries of the Schuylkill
and Delaware Rivers, and the Upper Merion Reservoir, a former quarry now
impounding groundwater. All of these are either within or adjacent to PSW's
service territory. PSW acquired the right to remove water from these sources,
and in connection with such rights, PSW has secured the necessary regulatory
approvals. PSW has constructed five impounding reservoirs and four treatment and
pumping facilities to provide storage and purification of these surface water
supplies.
The Pennsylvania Department of Environmental Resources ('DER') has
regulatory power with respect to sources of supply and the construction,
operation and safety practices for certain dams and other water containment
structures under the Pennsylvania Dam Safety and Encroachments Act of 1979.
PSW's dams are in compliance with these requirements in all material respects.
PSW's surface supplies are supplemented by 39 wells. PSW also has
interconnections with: the Chester Water Authority, which permits PSW to
withdraw up to 6.2 million gallons per day ('mgd'); the Bucks County Water and
Sewer Authority, which provides for a supply of up to 7.0 mgd; and the West
Chester Area Municipal Authority, which provides up to a maximum of 1.0 mgd.
Agreements regarding the first two interconnections require PSW to purchase
certain minimum amounts of water. PSW believes it possesses all the necessary
permits to obtain its supply of water from the sources indicated above.
The minimum safe yield of all sources of supply described above, based on
low stream flows of record with respect to surface supplies, is as follows:
Surface supplies................................... 90.5 mgd
Upper Merion Reservoir............................. 7.2
Wells.............................................. 17.7
Purchased supplies................................. 8.1
---------
Total......................................... 123.5 mgd
---------
---------
During periods of normal precipitation, the safe yield is more than the
minimum shown above. Under normal operating conditions, PSW can deliver a
maximum of 139 mgd to its distribution system for short periods of time. The
average daily send-out for 1993, 1992 and 1991 was 89.1, 85.4, and 87.2 mgd,
respectively.
The maximum demand ever placed upon PSW's facilities for one month occurred
during June 1988, when send-out averaged 101.4 mgd. The peak day of record
occurred during July 1993 when water use reached 118.8 mgd.
Actual water usage (as measured by the water meters installed at each
service location) is less than the amount of water delivered into the system due
to leaks, PSW's operational use of water, fire hydrant usage and other similar
uses. Water consumption per customer is affected by local weather conditions
during the year. In general, during the late spring and summer, an increase in
rainfall
4
reduces water consumption, while a decrease in rainfall increases it.
Also, an increase in the average temperature generally causes an increase in
water consumption.
Energy supplies. PSW does all of its pumping using electric power
purchased from PECO Energy Company. Energy supplies have been sufficient to meet
customer demand.
Water shortages. The Delaware River Basin, which is the drainage area of
the Delaware River from New York State to Delaware, periodically experiences
water shortages during the summer months. To the extent that the reservoirs in
the upper part of the Basin are affected by a lack of precipitation, the
Delaware River Basin Commission (the 'DRBC') may impose either voluntary or
mandatory water use restrictions on portions or all of the Basin.
PSW's raw water supplies have generally been adequate to meet customer
demand for the past five years principally because of its five impounding
reservoirs. However, since PSW's service territory is within the Basin, PSW's
customers may be required to comply with DRBC water use restrictions, even if
PSW's supplies are adequate, if the availability of water
in the entire DRBC area is inadequate.
During 1988 and the two preceding years, the lower regions of the Basin
experienced hot, dry weather conditions while the upper regions of the Basin
enjoyed normal or above normal precipitation. During all three years PSW had
sufficient quantities of raw water available and no drought restrictions were
imposed by the DRBC. However, in the summer of 1988, with the record breaking
heat and the resulting high water demand created by lawn sprinkling, PSW imposed
restrictions banning nonessential water uses in order to maintain adequate
storage levels of treated water and to reduce peak demands in the distribution
system. No water use restrictions were imposed by PSW in the years subsequent to
1988. The addition of the 15 mgd Pickering Creek treatment plant in 1991 and
improvements to the distribution system in the past five years have reduced the
possibility of PSW issuing water use restrictions in the future due to demands
on its system.
Regulation by the Pennsylvania Public Utility Commission. PSW is subject
to regulation by the Pennsylvania Public Utility Commission (the 'PUC') which
has jurisdiction with respect to rates, service, accounting procedures, issuance
of securities and other matters.
Under applicable Pennsylvania statutes, PSW has rights granted under its
Articles of Incorporation and by certificates of public convenience from the PUC
authorizing it to conduct its present operations in the manner in which such
operations are now conducted and in the territory in which it now renders
service, to exercise the right of eminent domain and to maintain its mains in
the streets and highways of such territory. Such rights are generally
nonexclusive, although it has been the practice of the PUC to allow only one
water company to actually provide service to a given area. Consequently, PSW is
subject to competition only with respect to potential customers located on the
fringe of areas that it presently serves who also may have access to the service
of another water supplier.
In 1992, the PUC issued a policy statement which, under certain
circumstances, required utilities to extend service to new customers without the
benefit of a customer advance for construction. As a result of various problems
and uncertainties associated with the implementation of this policy statement,
the PUC initiated a rulemaking procedure in December 1993, intended to
facilitate the development of practical standards by which the broad policy
statement can be applied. The Company believes that when instituted, the new
standards will reflect the position that the cost of service extensions should
be justified by anticipated revenues from the extension or should be paid by the
service applicant.
Water Quality & Environmental Issues. PSW is subject to regulation of
water quality by the U.S. Environmental Protection Agency ('EPA') under the
Federal Safe Drinking Water Act (the 'SDWA') and by the Pennsylvania Department
of Environmental Resources ('DER') under the Pennsylvania Safe Drinking Water
Act. The SDWA provides for the establishment of uniform
5
minimum national water quality standards, as well as governmental authority to
specify the type of treatment process to be used for public drinking water.
PSW is presently in compliance with all standards and treatment requirements
promulgated to date.
The EPA has an ongoing directive to issue additional regulations under the
SDWA. The directive was clarified in 1986 when Congress amended the SDWA to
require, among other revisions, disinfection of all drinking water, additional
maximum contaminant level ('MCL') specifications, and filtration of all surface
water supplies. PSW has already installed the necessary equipment to provide for
the disinfection of the drinking water throughout the system and is monitoring
for the additional specified contaminants. PSW's principal surface water
supplies are currently filtered. PSW began to provide full filtration of its
supply from the Upper Merion Reservoir in November 1993 upon the completion of a
filtration facility at that location. This facility was necessary in order to
maintain PSW's compliance with the SDWA.
In addition, the 1986 SDWA Amendments require the EPA to promulgate MCLs
for many chemicals not previously regulated. EPA has to date promulgated MCLs
for numerous additional
contaminants and is required to mandate further MCLs every three years.
Promulgation of additional MCLs by the EPA in the future may require PSW to
change some of its treatment techniques, however, PSW meets all existing MCL
requirements and believes that the currently proposed MCLs will not have a
significant impact on its capital requirements or operating expenses. In 1991,
the EPA proposed regulations pertaining to radionuclides (including radon).
Recently, the Congress placed a one year moratorium on radon regulations.
Depending upon the final MCLs permitted, PSW will likely be required to take
remedial action at certain of its groundwater facilities. The remediation
options presently under evaluation include dilution, treatment, or replacement
of the supply with other groundwater or surface water supplies. Based on the MCL
initially proposed, it is anticipated that the capital costs of compliance will
range from $2.5 to $3.5 million over the next 10 years. PSW may, in the future,
have to change its method of treating drinking water at certain of its sources
of supply if additional regulations become effective.
In June, 1991, EPA promulgated final regulations for lead and copper (the
'Lead and Copper Rule'). Under the Lead and Copper Rule, large water utilities
are required to conduct corrosion control studies and to sample certain
high-risk customer homes to determine the extent of treatment techniques that
may be required. PSW conducted the two required rounds of sampling in 1992 and
did not exceed the EPA action levels for either lead or copper. Additional
sampling will be required in the future. PSW has developed a corrosion control
program for its surface sources of supply and does not foresee the need to make
any major additional treatment changes or capital expenditures as a result of
the Lead and Copper Rule.
On January 1, 1993, new federal regulations ('Phase II') became effective
for certain volatile organics, herbicides, pesticides and inorganic parameters.
Although PSW will not be required by the DER to monitor for most of these
parameters until 1995, PSW has already done substantial monitoring. In the few
cases where Phase II contaminants were detected, concentrations were below MCLs.
Future monitoring will be required, but no major treatment modifications are
anticipated as a result of these regulations.
PSW is also subject to other environmental statutes administered by the EPA
and DER. These include the Federal Clean Water Act and the Resource Conservation
and Recovery Act ('RCRA'). Under the Federal Clean Water Act, the Company must
obtain National Pollutant Discharge Elimination System ('NPDES') permits for
discharges from its treatment stations. PSW currently maintains three NPDES
permits relating to its surface water treatment plants, which are subject to
renewal every five years. During the past five years, PSW has installed the
required waste water treatment facilities and presently meets all NPDES
requirements. Although management recognizes that permit renewal may become more
difficult if more stringent guidelines are imposed, no significant obstacles to
permit renewal are presently foreseen.
6
Under RCRA, PSW is subject to specific regulations regarding the solid
waste generated from the water treatment process. The DER promulgated 'Final
Rulemaking' for solid waste (Residual Waste Management) in July 1992. PSW has
retained an engineering consultant to assist with the extensive monitoring,
record keeping and reporting required under these regulations. A preliminary
application for permitting has been filed, and formal permitting of these
facilities should be completed by 1996 in accordance with regulatory
requirements.
Where PSW is required to make certain capital investments in order to
maintain its compliance with any of the various regulations discussed above, it
is management's belief that all such expenditures would be fully recoverable in
PSW's water rates. However, the capital costs, under current law, would have to
be financed prior to their inclusion in PSW's rate structure, and the resulting
rate increases would not necessarily be timely.
UTILITY & MUNICIPAL SERVICES, INC.
Utility & Municipal Services, Inc. ('UMS') provides data processing
services to several water utilities including PSW, and to several municipal
water and sewer systems. The services provided to the utilities and
municipalities include billing services and the processing of financial reports.
EMPLOYEE RELATIONS
As of December 31, 1993, the Registrant employed a total of 523 persons, of
which 511 are employees of PSW. Hourly employees of PSW are represented by the
International Brotherhood of Firemen and Oilers, Local No. 473. The contract
with the union expires on December 1, 1994. Management considers its employee
relations to be satisfactory.
ITEM 2. PROPERTIES
The Registrant believes that the facilities used in the operation of its
various businesses are generally in excellent condition in terms of suitability,
adequacy and utilization.
The property of PSW consists of a waterworks system devoted to the
collection, storage, treatment and distribution of water in its service
territory. Management considers that its properties are maintained in good
operating condition and in accordance with current standards of good waterworks
practice. The following table summarizes the principal physical properties owned
by PSW:
NO. OF SQUARE FEET
LOCATION BUILDINGS DESCRIPTION FLOOR AREA
- --------------- ------------- ------------------------------------------ -----------------
Pennsylvania 5 Office & warehouse 151,185
Pennsylvania 14 Pumping stations and 155,116
treatment buildings
Pennsylvania 22 Well stations App. 600 ea.
Pennsylvania 17 Well stations App. 150 ea.
Pennsylvania 36 Booster stations App. 1,100 ea.
In addition, PSW also owns 45 standpipes with a combined distribution
storage capacity of 137.9 million gallons and five surface water impounding
reservoirs. The water utility also owns approximately 2,960 miles of
transmission and distribution mains, has 247,195 active metered services and
10,991 fire hydrants.
PSW's properties referred to herein, with certain minor exceptions which do
not materially interfere with their use, are owned and are subject to the lien
of an Indenture of Mortgage dated as of January 1, 1941, as supplemented. In the
case of properties acquired through the exercise of the power of eminent domain
and certain properties acquired through purchase, it has title only for water
supply purposes.
7
The Registrant's corporate offices and the facilities of UMS are leased
from PSW and located in Bryn Mawr, Pennsylvania.
ITEM 3. LEGAL PROCEEDINGS
There are no pending legal proceedings to which the Registrant or any of
its subsidiaries is a party or to which any of their properties is the subject
that present a reasonable likelihood of a material adverse impact on the
Registrant. In March of 1992, PSW received notice of an arbitration proceeding
against the New Jersey Spill Fund by a party claiming damages of approximately
$2.5 million as a result of a fire at a warehouse in Newark, New Jersey, where
hazardous substances had been stored. The Spill Fund had previously denied this
claim, but the claimant demanded an arbitration proceeding to review the claim.
If the claimant is successful in the arbitration proceeding, the Spill Fund
could commence a civil action seeking to recover the amount of its payment to
the claimant from a group of over 70 entities, including PSW, who have been
identified as having some of their material stored at the warehouse. The Company
does not believe that any assessment against the Company as a result of
the arbitration proceeding will be material to the business or financial
condition of the Company. PSW has also been advised that on February 15, 1994
the State of New Jersey and the Spill Fund instituted a separate action
against approximately 100 entities in the Superior Court of New Jersey Law
Division -- Essex County seeking to recover, among other related expenses, the
State's cost of $3.82 million in cleaning up the site of the Newark warehouse.
PSW is one of the defendants named in the Complaint, but PSW has not been
served with a Complaint as of March 24, 1994. PSC does not believe that any
assessment against PSW as a result of this action will be material to the
business or financial condition of PSC.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth
quarter of 1993.
Information with respect to the executive officers of the Company is
contained in Item 10 hereof and is hereby incorporated by reference herein.
8
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDER
MATTERS
The Company's common stock is traded on the New York Stock Exchange and the
Philadelphia Stock Exchange. As of March 1, 1994, there were approximately
10,968 holders of record of the Company's common stock.
The following selected quarterly financial data of the Company is in
thousands of dollars, except for per share amounts:
FIRST SECOND THIRD FOURTH
QUARTER QUARTER QUARTER QUARTER TOTAL YEAR
--------- --------- --------- --------- -----------
1993
Earned revenues...................................... $ 22,726 $ 25,048 $ 27,948 $ 25,522 $ 101,244
Operating expenses................................... 10,733 11,205 12,078 11,973 45,989
Net income........................................... 2,587 3,604 4,257 3,387 13,835
Net income per share................................. .26 .33 .38 .30 1.27
Dividend paid per share.............................. .26 .27 .27 .27 1.07
Price range of common stock
-- high......................................... 18.25 18.38 20.75 20.13 20.75
-- low.......................................... 15.63 17.25 18.13 17.75 15.63
1992
Earned revenues...................................... $ 22,925 $ 23,236 $ 24,175 $ 22,971 $ 93,307
Operating expenses................................... 10,875 10,594 11,151 10,404 43,024
Income, continuing operations........................ 2,102 2,628 3,071 2,825 10,626
Income per share, continuing operations.............. .26 .32 .35 .30 1.23
Loss, discontinued operations........................ -- -- (5,500) -- (5,500)
Loss per share, discontinued operations.............. -- -- (.63) -- (.63)
Extraordinary charge................................. -- -- (784) (50) (834)
Extraordinary charge per share....................... -- -- (.09) (.01) (.10)
Net income (loss).................................... 2,102 2,628 (3,213) 2,775 4,292
Net income (loss) per share.......................... .26 .32 (.37) .29 .50
Dividend paid per share.............................. .26 .26 .26 .26 1.04
Price range of common stock
-- high......................................... 16.00 14.88 16.38 16.63 16.63
-- low.......................................... 14.38 13.75 14.25 15.63 13.75
Following is a recent history of income from continuing operations and
dividends of the Company:
INCOME PER
SHARE FROM
CASH DIVIDEND CONTINUING PAYOUT
PER SHARE OPERATIONS RATIO
--------------- ----------- -----------
1989..... $ .94 $ 1.25 75%
1990..... 1.00 1.27 79
1991..... 1.00 1.29 78
1992..... 1.04 1.23 85
1993..... 1.07 1.27 84
Dividends have averaged approximately 80% of income from continuing
operations during this period. In March 1993, the annual dividend increased by
4% to $1.08 beginning with the June 1993 dividend.
ITEM 6. SELECTED FINANCIAL DATA
The information appearing in the section captioned 'Summary of Selected
Financial Data' from the portions of the Company's 1993 Annual Report to
shareholders filed as Exhibit 13 to this Form 10-K Report is incorporated by
reference herein.
9
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The information appearing in the section captioned 'Management's Discussion
and Analysis' from the portions of the Company's 1993 Annual Report to
shareholders filed as Exhibit 13 to this Form 10-K Report is incorporated by
reference herein.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Information appearing under the captions 'Consolidated Statements of
Income', 'Consolidated Balance Sheets', 'Consolidated Cash Flow Statements' and
'Notes to Consolidated Financial Statements' from the portions of the Company's
1993 Annual Report to shareholders filed as Exhibit 13 to this Form 10-K Report
is incorporated by reference herein. Also, the information appearing in the
section captioned 'Reports on Financial Statements' from the portions of the
Company's 1993 Annual Report to shareholders filed as Exhibit 13 to this Form
10-K Report is incorporated by reference herein.
ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
10
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
DIRECTORS OF THE REGISTRANT
The information appearing in the section captioned 'Information Regarding
Nominees and Directors' of the Proxy Statement relating to the May 19, 1994,
annual meeting of shareholders of the Company, to be filed within 120 days after
the end of the fiscal year covered by this Form 10-K Report, is incorporated by
reference herein.
EXECUTIVE OFFICERS OF THE REGISTRANT
The following table and the notes thereto set forth information with
respect to the executive officers of the Registrant, including their names,
ages, positions with the Registrant and business experience during the last five
years:
POSITION WITH THE REGISTRANT
NAME AGE AND DATE OF ELECTION (1)
- --------------------------------------------- --- ------------------------------------------------------------
Nicholas DeBenedictis 48 President and Chairman (May 1993 to present); President and
Chief Executive Officer (July 1992 to May 1993) (2)
John W. Boyer, Jr. 65 Chairman (July 1992 to May 1993); Chairman and President
(July 1981 to May 1983 and October 1983 to July 1992);
Chairman and Chief Executive Officer (May 1983 to October
1983) (3)
Robert A. Luksa 59 President, Philadelphia Suburban Water Company (October 1986
to present) (4)
Roy H. Stahl 41 Senior Vice President and General Counsel (April 1991 to
present) (5)
Michael P. Graham 45 Senior Vice President -- Finance and Treasurer (March 1993
to present) (6)
- ------------------
(1) In addition to the capacities indicated, the individuals named in the above
table hold other offices or directorships with subsidiaries of the
Registrant. Officers serve at the discretion of the Board of Directors.
(2) Mr. DeBenedictis was Secretary of the Pennsylvania Department of
Environmental Resources from 1983 to 1986. From December 1986 to April 1989,
he was President of the Greater Philadelphia Chamber of Commerce. Mr.
DeBenedictis was Senior Vice President for Corporate and Public Affairs of
Philadelphia Electric Company from April 1989 to June 1992.
(3) Mr. Boyer has served as Vice Chairman of PSW from July 1992 to May 1993, and
from June 1976 to July 1992 he was Chairman of this subsidiary. He also
served as the utility's Chief Executive Officer from June 1976 to May 1983
and from January 1986 to July 1992.
(4) Mr. Luksa was Executive Vice President of PSW from April 1982 to October
1986 and from 1971 to April 1982 he was Vice President and Chief Engineer of
this subsidiary.
(5) From January 1984 to August 1985, Mr. Stahl was Corporate Counsel, from
August 1985 to May 1988 he was Vice President - Administration and Corporate
Counsel of the Registrant, and from May 1988 to April 1991 he was Vice
President and General Counsel of the Registrant.
(6) Mr. Graham was Controller of the Company from 1984 to September 1990, and
from September 1990 to May 1991 he was Chief Financial Officer and
Treasurer. From May 1991 to March 1993, Mr. Graham was Vice President
-- Finance and Treasurer.
11
ITEM 11. MANAGEMENT REMUNERATION
The information appearing in the sections captioned 'Compensation of
Directors and Executive Officers' of the Proxy Statement relating to the May 19,
1994, annual meeting of shareholders of the Company, to be filed within 120 days
after the end of the fiscal year covered by this Form 10-K Report, is
incorporated by reference herein.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information appearing in the sections captioned 'Ownership of Common
Stock' of the Proxy Statement relating to the May 19, 1994, annual meeting of
shareholders of the Company, to be filed within 120 days after the end of the
fiscal year covered by this Form 10-K Report, is incorporated by reference
herein.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information appearing in the sections captioned 'Other Remuneration and
Certain Transactions' of the Proxy Statement relating to the May 19, 1994,
annual meeting of shareholders of the Company, to be filed within 120 days after
the end of the fiscal year covered by this Form 10-K Report, is incorporated by
reference herein.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
Financial Statements. The following is a list of the consolidated
financial statements of the Company and its subsidiaries and supplementary data
incorporated by reference in Item 8 hereof:
Management's Report
Independent Auditors' Report
Consolidated Balance Sheets -- December 31, 1993 and 1992
Consolidated Statements of Income -- 1993, 1992 and 1991
Consolidated Statements of Cash Flow -- 1993, 1992, and 1991
Notes to Consolidated Financial Statements
Financial Statement Schedules. The following is a list of financial
statement schedules, or supplemental schedules, filed as part of this annual
report on Form 10-K. All other schedules are omitted because they are not
applicable or not required, or because the required information is included in
the consolidated financial statements or notes thereto.
Auditors' Report on Additional Financial Data
Schedule III -- Condensed Financial Information of Registrant
Schedule V -- Property, Plant and Equipment
Schedule VI -- Accumulated Depreciation of Property, Plant and Equipment
Schedule IX -- Short-Term Borrowings
Schedule X -- Supplementary Income Statement Information
Reports on Form 8-K. The Company filed no report on Form 8-K during the
quarter ended December 31, 1993.
Exhibits, Including Those Incorporated by Reference. The following is a
list of exhibits filed as part of this annual report on Form 10-K. Where so
indicated by footnote, exhibits which were previously filed are incorporated by
reference. For exhibits incorporated by reference, the location of the exhibit
in the previous filing is indicated in parenthesis. The page numbers listed
refer to page number where such exhibits are located using the sequential
numbering system specified by Rules 0-3 and 403.
12
EXHIBIT INDEX
EXHIBIT
NO. PAGE NO.
- ---------- -----------
3.1 Amended and Restated Articles of Incorporation, as amended (1) (Exhibit 3.1)
3.2 By-Laws, as amended (1) (Exhibit 3.2)
4.1 Indenture of Mortgage dated as of January 1, 1941 between Philadelphia Suburban Water
Company and The Pennsylvania Company for Insurance on Lives and Granting Annuities (now
First Pennsylvania Bank, N.A.),as Trustee, with supplements thereto through the Twentieth
Supplemental Indenture dated as of August 1,1983 (2) (Exhibits 4.1 through 4.16)
4.2 Revolving Credit Agreement between Philadelphia Suburban Water Company and Mellon Bank
(East) National Association dated as of February 16, 1990 (3) (Exhibit 4.3)
4.3 First Amendment to Revolving Credit Agreement between Philadelphia Suburban Water Company
and Mellon Bank N.A. dated as of September 1, 1992 (1) (Exhibit 4.3)
4.4 Preferred Stock Agreement between Philadelphia Suburban Water Company and Provident Life
and Accident Insurance Company dated as of January 1, 1991 (3) (Exhibit 4.4)
4.5 Indenture dated as of July 1, 1988 between Philadelphia Suburban Corporation and the
Philadelphia National Bank, as Trustee. (4) (Exhibit 4)
4.6 Form of Rights Agreement, dated as of February 19, 1988, between Philadelphia Suburban
Corporation and Mellon Bank (East) National Association, as amended by Amendment No. 1. (5)
(Exhibit 1)
4.7 Agreement to furnish copies of other long-term debt instruments (1) (Exhibit 4.7)
4.8 Twenty-first Supplemental Indenture dated as of August 1, 1985 (6) (Exhibit 4.2)
4.9 Twenty-second Supplemental Indenture dated as of April 1, 1986 (7) (Exhibit 4.3)
4.10 Twenty-third Supplemental Indenture dated as of April 1, 1987 (8) (Exhibit 4.4)
4.11 Twenty-fourth Supplemental Indenture dated as of June 1, 1988 (9) (Exhibit 4.5)
4.12 Twenty-fifth Supplemental Indenture dated as of January 1, 1990 (10) (Exhibit 4.6)
4.13 Twenty-sixth Supplemental Indenture dated as of November 1, 1991 (11) (Exhibit 4.12)
4.14 Twenty-seventh Supplemental Indenture dated as of June 1, 1992 (1) (Exhibit 4.14)
4.15 Twenty-eighth Supplemental Indenture dated as of April 1, 1993 22
4.16 Revolving Credit Agreement between Philadelphia Suburban Water Company and Mellon Bank, 44
N.A., PNC Bank, National Association, First Fidelity Bank, N.A. and Meridian Bank, N.A.
dated as of March 17, 1994
10.1 1982 Stock Option Plan, as amended and restated effective May 21, 1992* (1) (Exhibit 10.1)
10.2 1988 Stock Option Plan, as amended and restated effective May 21, 1992* (1) (Exhibit 10.2)
10.3 Executive Incentive Award Plan, as amended March 21, 1989 and February 6, 1990* (10)
(Exhibit 10.3)
10.4 Excess Benefit Plan for Salaried Employees, effective December 1, 1989* (10) (Exhibit 10.4)
10.5 Supplemental Executive Retirement Plan, effective December 1, 1989* (10) (Exhibit 10.5)
13
10.6 Supplemental Executive Retirement Plan, effective March 15, 1992* (1) (Exhibit 10.6)
10.7 1993 Incentive Compensation Plan* (1) (Exhibit 10.7)
10.8 Employment letter agreement with Mr. Nicholas DeBenedictis* (1) (Exhibit 10.8)
10.9 1994 Incentive Compensation Program* 94
10.10 1994 Equity Compensation Plan* 99
13. Selected portions of Annual Report to shareholders for the year ended December 31, 1993 109
incorporated by reference in Annual Report on Form 10-K for the year ended December 31,
1993
22. Subsidiaries of Philadelphia Suburban Corporation 143
24. Consent of Independent Auditors 144
25. Power of Attorney (set forth as a part of this report) 15
28. Undertakings with respect to Form S-8 registrations 144
14
NOTES
DOCUMENTS INCORPORATED BY REFERENCE
* Indicates management contract or compensatory plan or arrangement.
(1) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1992
(2) Indenture of Mortgage dated as of January 1, 1941 with supplements thereto through the Twentieth
Supplemental Indenture dated as of August 1, 1983 were filed as an Exhibit to Annual Report on Form 10-K
for the year ended December 31, 1983.
(3) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1990.
(4) Filed as Exhibit 4 to the Registration Statement on Form S-3 filed with the Securities and Exchange
Commission on June 14, 1988.
(5) Filed as Exhibit 1 to the Registration Statement on Form 8-A filed with the Securities and Exchange
Commission on March 1, 1988, with respect to the New York Stock Exchange, and on November 9, 1988, with
respect to the Philadelphia Stock Exchange.
(6) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1985.
(7) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1986.
(8) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1987.
(9) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1988.
(10) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1989.
(11) Filed as an Exhibit to Annual Report on Form 10-K for the year ended December 31, 1991.
15
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
PHILADELPHIA SUBURBAN CORPORATION
By _____NICHOLAS DEBENEDICTIS_________
Nicholas DeBenedictis
President and
Chairman
Date: March 29, 1994
Pursuant to the requirements of the Securities and Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Each person in so signing also makes, constitutes and appoints Nicholas
DeBenedictis, President and Chairman of Philadelphia Suburban Corporation,
Michael P. Graham, Senior Vice President -- Finance and Treasurer of
Philadelphia Suburban Corporation, and each of them, his or her true and lawful
attorneys-in-fact, in his or her name, place and stead to execute and cause to
be filed with the Securities and Exchange Commission any and all amendments to
this report.
CLAUDIO ELIA
John H. Austin, Jr. Claudio Elia
Director Director
JOHN W. BOYER, JR. MICHAEL P. GRAHAM
John W. Boyer, Jr. Michael P. Graham
Director Senior Vice President -- Finance and
Treasurer (principal financial and
accounting officer)
MARY C. CARROLL JOSEPH C. LADD
Mary C. Carroll Joseph C. Ladd
Director Director
NICHOLAS DEBENEDICTIS JOHN F. MCCAUGHAN
Nicholas DeBenedictis John F. McCaughan
President and Director
Chairman (principal executive
officer) and Director
G. FRED DIBONA, JR. HARVEY J. WILSON
G. Fred DiBona, Jr. Harvey J. Wilson
Director Director
16
AUDITORS' REPORT ON ADDITIONAL FINANCIAL DATA
The Board of Directors
Philadelphia Suburban Corporation
Under date of February 1, 1994, we reported on the consolidated balance sheets
of Philadelphia Suburban Corporation and subsidiaries as of December 31, 1993
and 1992 and the related consolidated statements of income and cash flows for
each of the years in the three-year period ended December 31, 1993, as contained
in the 1993 Annual Report to shareholders. These consolidated financial
statements and our report thereon are incorporated by reference in the annual
report on Form 10-K for the year 1993. In connection with our audits of the
aforementioned consolidated financial statements, we also have audited the
related additional financial data listed in Item 14. -- Financial Statement
Schedules of this report on Form 10-K. These financial statement schedules are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statement schedules based on our audits.
In our opinion, such additional financial data, when considered in relation to
the basic consolidated financial statements taken as a whole, present fairly, in
all material respects the information set forth therein.
KPMG PEAT MARWICK
Philadelphia, Pennsylvania
February 1, 1994
17
SCHEDULE III
PHILADELPHIA SUBURBAN CORPORATION (PARENT COMPANY)
CONDENSED BALANCE SHEETS
(IN THOUSANDS OF DOLLARS)
DECEMBER 31, 1993 AND 1992
1993 1992
--------- ---------
Current assets............................................................................. $ 251 $ 583
Advances to subsidiaries................................................................... 3,109 2,881
Furniture and fixtures, at cost............................................................ -- 153
Less accumulated depreciation......................................................... -- (139)
--------- ---------
Net furniture and fixtures......................................................... -- 14
--------- ---------
Investments in subsidiaries, at equity
Continuing operations*................................................................... 135,662 102,779
Discontinued operations............................................................... -- 1,256
--------- ---------
135,662 104,035
--------- ---------
Deferred charges and other assets.......................................................... 360 907
--------- ---------
$ 139,382 $ 108,420
--------- ---------
--------- ---------
Current liabilities:
Net reserves related to discontinued operations.......................................... $ 2,578 $ --
Other.................................................................................... 870 1,449
--------- ---------
Total current liabilities............................................................. 3,448 1,449
Common stockholders' equity................................................................ 135,934 106,971
--------- ---------
$ 139,382 $ 108,420
--------- ---------
--------- ---------
- ------------------
* The Company's investment in Philadelphia Suburban Water Company amounted to
$133,967 and $101,086 at December 31, 1993 and 1992, respectively, which
includes $51,000 and $47,000, respectively, of retained earnings, free of
dividend restrictions imposed by PSW's debt agreements.
See accompanying notes to the consolidated financial statements.
18
PHILADELPHIA SUBURBAN CORPORATION (PARENT COMPANY)
CONDENSED STATEMENTS OF INCOME
(IN THOUSANDS OF DOLLARS)
DECEMBER 31, 1993 AND 1992
1993 1992 1991
--------- --------- ---------
Earned revenues.................................................................. $ -- $ -- $ --
Costs and expenses:
Operating expenses............................................................. 1,122 1,088 1,959
Depreciation and amortization............................................... 25 69 77
Interest, net............................................................... (575) 1,305 1,485
--------- --------- ---------
572 2,462 3,521
--------- --------- ---------
Loss before provision for income taxes, income from subsidiaries, and
extraordinary charge........................................................... (572) (2,462) (3,521)
Provision for income taxes....................................................... (224) (761) (1,209)
--------- --------- ---------
Loss before income from subsidiaries, and extraordinary charge................... (348) (1,701) (2,312)
--------- --------- ---------
Income (loss) from subsidiaries
Continuing operations.......................................................... 14,183 12,327 12,491
Discontinued operations*....................................................... -- (5,500) (5,290)
--------- --------- ---------
14,183 6,827 7,201
--------- --------- ---------
Income before extraordinary charge............................................... 13,835 5,126 4,889
Extraordinary charge from early retirement of debt, net of income tax benefits... -- (834) --
--------- --------- ---------
Net income....................................................................... $ 13,835 $ 4,292 $ 4,889
--------- --------- ---------
- ------------------
* Parent expenses of $510, $329 and $1,887 in 1993, 1992 and 1991, respectively,
have been charged to the reserves related to discontinued operations.
See accompanying notes to the consolidated financial statements.
19
PHILADELPHIA SUBURBAN CORPORATION (PARENT COMPANY)
CONDENSED CASH FLOW STATEMENTS
(IN THOUSANDS OF DOLLARS)
YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
1993 1992 1991
--------- --------- ---------
Cash flows from operating activities:
Income before extraordinary charge............................................. $ 13,835 $ 5,126 $ 4,889
Adjustment to reconcile income before extraordinary charge to net cash flows
from operating activities:
Depreciation and amortization............................................... 25 69 77
Deferred income taxes....................................................... 543 (78) (130)
Net decrease (increase) in receivables, inventory and prepayments.............. 108 133 (117)
Net increase (decrease) in payables and other accrued liabilities.............. (228) 911 70
Net decrease in accrued interest............................................... -- (1,266) (83)
Other.......................................................................... -- 3 (53)
Income from subsidiaries, net of parent expenses associated with discontinued
operations.................................................................. (14,183) (6,827) (7,201)
--------- --------- ---------
Net cash flows from operating activities....................................... 100 (1,929) (2,548)
--------- --------- ---------
Cash flows from investing activities:
Purchase of property, plant and equipment...................................... -- (3) --
Net cash flows from the sales and operations of the discontinued operations.... 494 440 9,971
--------- --------- ---------
Other.......................................................................... 10 -- 10
--------- --------- ---------
Net cash flows from investing activities....................................... 504 437 9,981
--------- --------- ---------
Cash flows from financing activities:
Repayments of long-term debt including premium on early retirement............. -- (26,067) (9,995)
Proceeds from issuing common stock............................................. 27,749 25,950 3,459
Repurchase of common stock..................................................... (992) (26) --
Dividends paid................................................................. (11,629) (8,866) (7,859)
Dividends received from subsidiary............................................. 10,300 9,600 9,400
Capital contributed to subsidiary.............................................. (29,000) -- --
Net change in intercompany advances............................................ 2,777 (1,491) (1,277)
Other.......................................................................... -- -- (62)
--------- --------- ---------
Net cash flows from financing activities....................................... (795) (900) (6,334)
--------- --------- ---------
Net increase (decrease) in cash.................................................. (191) (2,392) 1,099
Cash balance beginning of year................................................... 376 2,768 1,669
--------- --------- ---------
Cash balance end of year......................................................... $ 185 $ 376 $ 2,768
--------- --------- ---------
--------- --------- ---------
See accompanying notes to the consolidated financial statements.
20
SCHEDULE V
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
PROPERTY, PLANT AND EQUIPMENT
YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(IN THOUSANDS OF DOLLARS)
BALANCE AT RETIREMENTS
BEGINNING ADDITIONS SALE AND BALANCE AT
OF YEAR AT COST OTHER RECLASSIFICATIONS END OF YEAR
----------- ----------- ----------- ---------------- -----------
1993
-------------------------------------------------------------------
Utility plant and equipment................... $ 390,138 1,323* 3,150** 34,126 $ 428,737
Construction in progress...................... 9,343 27,090 -- (34,126) 2,307
Other equipment............................... 2,395 8 (145) -- 2,258
----------- ----------- ----------- --------------- -----------
$ 401,876 28,421 3,005 -- $ 433,302
----------- ----------- ----------- --------------- -----------
----------- ----------- ----------- --------------- -----------
1992
-------------------------------------------------------------------
Utility plant and equipment................... $ 366,290 10,905* (2,130) 15,073 $ 390,138
Construction in progress...................... 2,192 22,224 -- (15,073) 9,343
Other equipment............................... 2,376 31 (12) -- 2,395
----------- ----------- ----------- --------------- -----------
$ 370,858 33,160 (2,142) -- $ 401,876
----------- ----------- ----------- --------------- -----------
----------- ----------- ----------- --------------- -----------
1991
--------------------------------------------------------------------
Utility plant and equipment................... $ 322,930 -- (1,300) 44,660 $ 366,290
Construction in progress...................... 24,814 22,038 -- (44,660) 2,192
Other equipment............................... 2,560 92 (276) -- 2,376
----------- ----------- ----------- --------------- -----------
$ 350,304 22,130 (1,576) -- $ 370,858
----------- ----------- ----------- --------------- -----------
----------- ----------- ----------- --------------- -----------
- ------------------
* Represents net assets of water systems acquired during the year.
** Includes $2,633 related to the final allocation of 1992 water system
acquisitions, and $919 related to the implementation of Statement of
Financial Accounting Standards No. 109, 'Accounting for Income Taxes'.
See accompanying notes to the consolidated financial statements.
21
SCHEDULE VI
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(IN THOUSANDS OF DOLLARS)
BALANCE AT RETIREMENTS
BEGINNING SALE AND BALANCE AT
OF YEAR ADDITIONS OTHER END OF YEAR
----------- ----------- ----------- -----------
1993
--------------------------------------------------
Utility plant and equipment...................................... $ 54,455 9,476 (1,014) $ 64,945
Other equipment.................................................. 1,811 451 135 2,127
----------- ----------- ----------- -----------
$ 56,266 9,927 (879) $ 67,072
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
1992
--------------------------------------------------
Utility plant and equipment...................................... $ 48,333 8,374 2,252 $ 54,455
Other equipment.................................................. 1,551 272 12 1,811
----------- ----------- ----------- -----------
$ 49,884 8,646 2,264 $ 56,266
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
1991
--------------------------------------------------
Utility plant and equipment...................................... $ 42,242 7,318 1,227 $ 48,333
Other equipment.................................................. 1,360 294 103 1,551
----------- ----------- ----------- -----------
$ 43,602 7,612 1,330 $ 49,884
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
See accompanying notes to the consolidated financial statements.
22
SCHEDULE IX
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
SHORT-TERM BORROWINGS
YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(IN THOUSANDS OF DOLLARS)
MAXIMUM AVERAGE WEIGHTED
WEIGHTED AMOUNT AMOUNT AVERAGE
BALANCE AVERAGE OUTSTANDING OUTSTANDING INTEREST
AT END INTEREST RATE AT END OF DURING RATE DURING
OF YEAR AT YEAR END ANY MONTH THE YEAR THE YEAR
--------- ------------- ------------ ------------- -------------
1993
--------------------------------------------------------------------
Payable to bank (1).............................. $ 819 4.10% $ 819 $ 393 4.35%(2)
1992
--------------------------------------------------------------------
Payable to bank (1).............................. $ 959 3.99% $ 2,190 $ 686 4.90%(2)
1991
--------------------------------------------------------------------
Payable to bank (1).............................. $ 160 5.34% $ 1,110 $ 590 7.84%(2)
- ------------------
(1) Short-term line of credit with interest at prime or rates based on the
federal funds.
(2) Computed based on the varying interest rates in effect at the time the funds
were borrowed.
See accompanying notes to the consolidated financial statements.
23
SCHEDULE X
PHILADELPHIA SUBURBAN CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY INCOME STATEMENT INFORMATION
YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(IN THOUSANDS OF DOLLARS)
1993 1992 1991
--------- --------- ---------
Maintenance and Repairs............................................................ $ 7,586 $ 7,262 $ 7,297
--------- --------- ---------
--------- --------- ---------
Taxes, other than payroll and income taxes......................................... $ 5,475 $ 5,220 $ 4,830
--------- --------- ---------
--------- --------- ---------
See accompanying notes to the consolidated financial statements.
24