Current Report on Form 8-K



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

     

Form 8-K
CURRENT REPORT

     
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 18, 2003
     

SOUTHWEST GAS CORPORATION
(Exact name of registrant as specified in its charter)

     
California
(State or other jurisdiction of
incorporation or organization)


5241 Spring Mountain Road
Post Office Box 98510
Las Vegas, Nevada
(Address of principal executive offices)
 1-7850
(Commission
File Number) 		88-0085720
(I.R.S. Employer
Identification No.)


89193-8510
(Zip Code)


Registrant's telephone number, including area code: (702) 876-7237





Item 9.   Regulation FD Disclosure

On February 18, 2003, Southwest Gas Corporation (the Company) released summary financial information to the general public, including the investment community, regarding the Company’s operating performance and financial position for the quarter and twelve months ended December 31, 2002. The financial information released is included herein. The following information is summary in nature and should not be considered complete financial statements.



SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)


  THREE MONTHS ENDED
DECEMBER 31,
  TWELVE MONTHS ENDED
DECEMBER 31,
  2002
   2001
   2002
   2001
  
Gas operating revenues $ 281,083   $ 330,620   $ 1,115,900   $ 1,193,102  
Net cost of gas sold   114,034     169,265     563,379     677,547  
 
 
 
 
 
Operating margin   167,049     161,355     552,521     515,555  
Operations and maintenance expenses   67,929     65,299     264,188     253,026  
Depreciation, amortization, and general taxes   38,278     34,687     149,740     137,278  
 
 
 
 
 
Operating income   60,842     61,369     138,593     125,251  
Net interest deductions   19,958     19,493     78,505     78,746  
Preferred securities distribution   1,369     1,369     5,475     5,475  
 
 
 
 
 
Pretax utility income   39,515     40,507     54,613     41,030  
Utility income taxes   12,211     12,923     17,151     13,011  
 
 
 
 
 
Net utility income   27,304     27,584     37,462     28,019  
Other income (expense), net   9,370     2,320     1,766     4,607  
 
 
 
 
 
Contribution to net income - gas operations   36,674     29,904     39,228     32,626  
Contribution to net income - construction services   1,141     1,071     4,737     4,530  
 
 
 
 
 
Net income $ 37,815   $ 30,975   $ 43,965   $ 37,156  
 
 
 
 
 
Earnings per share - gas operations $ 1.11   $ 0.93   $ 1.19   $ 1.02  
Earnings per share - construction services   0.03     0.03     0.14     0.14  
 
 
 
 
 
Basic earnings per share $ 1.14   $ 0.96   $ 1.33   $ 1.16  
 
 
 
 
 
Diluted earnings per share $ 1.13   $ 0.95   $ 1.32   $ 1.15  
 
 
 
 
 
                         
Average outstanding common shares   33,223     32,427     32,953     32,122  
Average shares outstanding (assuming dilution)   33,533     32,720     33,233     32,398  


The summary statements of income have been prepared by Southwest Gas Corporation (the Company) using the equity method of accounting for its construction services subsidiary. This presentation is not in accordance with generally accepted accounting principles (GAAP). However, it produces the same net income as the consolidated financial statements and, in management's opinion, is a fair representation of the operations and contributions to net income of the Company's operating segments.



SOUTHWEST GAS CORPORATION
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)

  YEAR ENDED DECEMBER 31,
    2002     2001     2000  
Gas operating revenues $ 1,115,900   $ 1,193,102   $ 870,711  
Net cost of gas sold   563,379     677,547     394,711  
Operating margin   552,521     515,555     476,000  
Operations and maintenance expenses   264,188     253,026     231,175  
Depreciation, amortization, and general taxes   149,740     137,278     124,508  
Operating income   138,593     125,251     120,317  
Net interest deductions   78,505     78,746     68,892  
Preferred securities distribution   5,475     5,475     5,475  
Pretax utility income   54,613     41,030     45,950  
Utility income taxes   17,151     13,011     13,614  
Net utility income   37,462     28,019     32,336  
Other income (expense), net   1,766     4,607     1,572  
Contribution to net income - gas operations   39,228     32,626     33,908  
Contribution to net income - construction services   4,737     4,530     4,403  
Net income $ 43,965   $ 37,156   $ 38,311  
Earnings per share - gas operations $ 1.19   $ 1.02   $ 1.08  
Earnings per share - construction services   0.14     0.14     0.14  
Basic earnings per share $ 1.33   $ 1.16   $ 1.22  
Diluted earnings per share $ 1.32   $ 1.15   $ 1.21  
                   
Average outstanding common shares   32,953     32,122     31,371  
Average shares outstanding (assuming dilution)   33,233     32,398     31,575  


See Notes to Summary Financial Statements.



SOUTHWEST GAS CORPORATION
SUMMARY BALANCE SHEET
AT DECEMBER 31, 2002
(In thousands)
(Unaudited)


ASSETS            
UTILITY PLANT            
    Gas plant, net of accumulated depreciation $ 1,912,766        
    Construction work in progress   66,693        
 
       
        Net utility plant   1,979,459        
 
       
OTHER PROPERTY AND INVESTMENTS            
    Investment in construction services subsidiary   38,953        
    Other   42,240        
 
       
        Total other property and investments   81,193        
 
       
CURRENT AND ACCRUED ASSETS            
    Cash and cash equivalents   15,538        
    Receivables - less reserve of $1,825 for uncollectibles   104,757        
    Accrued utility revenue   65,073        
    Deferred taxes   224        
    Other   41,859        
 
       
        Total current and accrued assets   227,451        
 
       
DEFERRED DEBITS            
    Unamortized debt expense   17,398        
    Other deferred debits   23,497        
 
       
        Total deferred debits   40,895        
 
       
        TOTAL ASSETS $ 2,328,998        
 
       
CAPITALIZATION AND LIABILITIES            
CAPITALIZATION            
    Common stockholders' equity            
        Common stock equity, $1 par, 33,289 shares outstanding $ 522,707        
        Retained earnings   73,460        
 
       
            Total common stockholders' equity   596,167   34.3 %  
    Preferred securities of Southwest Gas Capital I, 9.125%   60,000   3.5    
    Long-term debt including current maturities - NOTE 2   1,080,297   62.2    
 
 
 
            Total capitalization   1,736,464   100.0 %  
 
 
 
CURRENT AND ACCRUED LIABILITIES            
    Notes payable   53,000        
    Accounts payable   82,870        
    Customer deposits   34,313        
    Taxes accrued (including income taxes)   39,372        
    Deferred purchased gas costs   26,718        
    Other   50,004        
 
       
            Total current and accrued liabilities   286,277        
 
       
DEFERRED CREDITS            
    Deferred investment tax credits   13,801        
    Deferred income taxes   208,868        
    Other   83,588        
 
       
            Total deferred credits   306,257        
 
       
            TOTAL CAPITALIZATION AND LIABILITIES $ 2,328,998        
 
       


See Notes to Summary Financial Statements.



SOUTHWEST GAS CORPORATION
SUMMARY STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(In thousands)
(Unaudited)


CASH FLOWS FROM OPERATIONS:    
    Net income $ 43,965  
    Adjustments to reconcile net income to net      
       cash provided by operating activities:      
       Depreciation and amortization   115,175  
       Change in receivables and payables   11,260  
       Change in gas cost related balancing items   110,219  
       Change in accrued taxes   34,213  
       Change in deferred taxes   (17,406 )  
       Allowance for funds used during construction   (3,125 )  
       Other   (13,154 )  
 
 
         Net cash provided by operating activities   281,147  
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:    
    Construction expenditures   (263,576 )  
    Other   22,087  
 
 
         Net cash used in investing activities   (241,489 )  
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:    
    Net proceeds from stock issuances   18,174  
    Dividends paid   (27,009 )  
    Change in notes payable   (40,000 )  
    Retirement of long-term debt   (200,000 )  
    Long-term debt issuances, net   197,948  
 
 
         Net cash used in financing activities   (50,887 )  
 
 
Change in cash and cash equivalents   (11,229 )  
Cash at beginning of period   26,767  
 
 
Cash at end of period $ 15,538  
 
 
SUPPLEMENTAL INFORMATION:    
Interest paid, net of amounts capitalized $ 75,514  
Income taxes, net of refunds $ 383  


See Notes to Summary Financial Statements.



SOUTHWEST GAS CORPORATION
NOTES TO SUMMARY FINANCIAL STATEMENTS
 (In thousands)
(Unaudited)


NOTE 1 - BASIS OF PRESENTATION:

        The summary financial statements have been prepared by Southwest Gas Corporation (the Company) using the equity method of
        accounting for its construction services subsidiary. This presentation is not in accordance with generally accepted accounting
        principles (GAAP), and certain information and footnote disclosures normally included in financial statements prepared in accordance
        with GAAP have been omitted. The summary financial statement presentation in this report produces the same net income as
        the consolidated financial statements and, in management's opinion, is a fair representation of the operations and contributions to
        net income of the Company's operating segments.

NOTE 2 - LONG-TERM DEBT:



        Revolving credit facility, variable rate $ 100,000  
        Debentures:      
            7.5% due 2006   75,000  
            8% due 2026   75,000  
            8.375% due 2011   200,000  
            7.625% due 2012   200,000  
        Medium-term notes:      
            7.59% due 2017   25,000  
            7.75% due 2005   25,000  
            7.78% due 2022   25,000  
            7.92% due 2027   25,000  
            6.89% due 2007   17,500  
            6.76% due 2027   7,500  
            6.27% due 2008   25,000  
        Industrial development revenue bonds:      
            Variable-rate bonds, Series A, due 2028   50,000  
            7.3% 1992 Series A, due 2027   30,000  
            7.5% 1992 Series B, due 2032   100,000  
            6.5% 1993 Series A, due 2033   75,000  
            6.1% 1999 Series A, due 2038   12,410  
            5.55% 1999 Series D, due 2038   8,270  
            5.95% 1999 Series C, due 2038   14,320  
        Unamortized discount on long-term debt   (9,703 )  
 
 
        TOTAL LONG-TERM DEBT $ 1,080,297  
 
 
        ESTIMATED CURRENT MATURITIES $ --  
 
 




SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
DECEMBER 31, 2002


FINANCIAL STATISTICS

Market value to book value per share at year end   131%      
Twelve months to date return on equity -- total company   7.5%  
                                                              -- gas segment   7.1%  
Common stock dividend yield at year end   3.5%  

GAS OPERATIONS SEGMENT

            Authorized  
    Authorized   Authorized   Return on  
    Rate Base   Rate of   Common  
Rate Jurisdiction
   (In thousands)
   Return
   Equity
  
Arizona (1)   $ 688,202     9.20 %   11.00 %
Southern Nevada (1)     457,314     8.78     10.64  
Northern Nevada (1)     91,936     9.02     10.21  
Southern California     69,486     9.94     11.35  
Northern California     28,849     10.02     11.35  
Paiute Pipeline Company (1)     75,059     9.69     11.60

     (1) Estimated amounts based on rate case settlements.


SYSTEM THROUGHPUT BY CUSTOMER CLASS

  YEAR ENDED DECEMBER 31,
(In dekatherms)   2002     2001     2000  
Residential   58,821,449     58,994,278     57,137,754  
Small commercial   28,027,082     27,996,473     27,267,289  
Large commercial   12,149,989     10,758,310     6,390,838  
Industrial / Other   22,405,541     28,377,223     19,971,471  
Transportation   132,514,914     126,820,293     148,270,056  
Total system throughput   253,918,975     252,946,577     259,037,408  

HEATING DEGREE DAY COMPARISON

Actual   1,912     1,958     1,925  
Ten-year average   1,963     1,965     1,979  



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.








Date: February 18, 2003 		SOUTHWEST GAS CORPORATION



/s/ ROY R. CENTRELLA
Roy R. Centrella
Vice President/Controller/Chief Accounting Officer