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The Winnipeg Tribune
April 16, 1948

Winnipeg Electric '47
Surplus Up $549,000

(The) earned surplus account of the Winnipeg Electric company was increased $538,747.29 at Dec. 31, 1947, to a new record total of $3,315,347.23, the annual report of W. H. Carter, president, released today, shows.

Gross assets of the company area shown at $85,864,000, an increase of $1,434,000, after depreciation allowance of $2,141,847, the statement shows.

Gross income for the year for all three public services utilities, transportation, electric and gas (inclusive of its three primary power stations on the Winnipeg River, was $13,246,236, an upturn over 1946 of $282,078 from 1946.

The increased income was largely offset by the increased operating costs of $219,583.

(The) major item of declined revenue from 1946 was the transportation utility which carried 102,802,620 revenue passengers, 3 per cent below the 105,983,270 passengers carried in 1946, its peak year. There is no break-down of income from the transportation unit.

The report notes that the company had entered into capital commitments involving expenditures of about $5,000,000 in 1948 and further substantial capital expenditures in the years 1949 and 1950.

Net income for 1947 also shows an increase over 1946 of $398,006. This is due principally to a saving of $251,095 in bond interest as a result of the 1946 refinancing of the company's bonds.

(An) increase in the company's gross earnings is accounted for by a 8.1 per cent increase in the gross revenue from electric power sales over the year 1946, an increase amounting to $418,648.

New services during the year added 35,228 horsepower to the connected load.

The company is proceeding with its $8,000,000 development program at the Seven Sisters power plant, which will increase its capacity by 50,000 horsepower.

The gas utility also showed an increase in gross revenue of 4.35 per cent.

The transit utility, on the other hand, experienced a decline of roughly 3 per cent in gross earnings, carrying 3,180,650 fewer revenue passengers than in 1946. On the other hand, operating expenses, exclusive of taxes and depreciation, increased by 3 per cent due to higher wages and increased cost of materials.

The transit utility added 44 new trolley buses, 20 new motor buses and three new substations to its system during the year.

At the end of 1947 the Company had in operation 213 street cars, 195 motor buses, and 74 trolley buses. Since then 31 new buses have been added to the fleet.

Included in the report is a chart showing the distribution of each dollar of revenue as follows:

CONSOLIDATED INCOME
(000 Omitted)
                                                         1947     1946
Gross Earnings, Operating .............                $13,246  $12,964
Operating Costs .......................                  7,002    6,783
                                                       _______  _______
Net Operating Income ..................                  6,244    6,181
Interest and Other Income .............                    156      177
                                                         _______  _______
Gross Income ..........................                  6,399    6,359
Interest on Funded Debt ...............$1,035   $1,286
Other Interest ........................    39       40
Taxes .................................   765      767
Depreciation .......................... 2,240    2,142
Income, EPT (Est) .....................   962    1,155
Other Income Deductions ...............     1        4   5,042    5,399
Net Income ............................                  1,358      960

SURPLUS ACCOUNT
(000 Omitted)

Balance, January 1 ....................                  2,776    1,835
Add Net Income for Year ...............                  1,358      960
                                                         _____    _____

Deduct:
Deduct, 1945 Interest "B" Bonds .......                             297
Dividends, Preferred Stock ............                    250      250
Dividends, Common Stock ...............                    557      282
Adjustments, Prior Years ..............                     11
                                                           ___      ___
                                                           818      830
Balance, December 31 ..................                 $3,315    $2,7761
1Includes non-recurring net profit of $511,009.02 from sale of
company own bonds held as investment, after deducting cost of 1946 refinancing.

ASSETS
(000 Omitted)

Physical Properties ...................                $79,582   $76,773
Investments ...........................                  2,998     4,132
Cash on Hand and in Banks .............                    593     1,232
Accounts Receivable, Less Ress ........                    946       751
Working Funds and WCB Depos. ..........                     71        72
Materials, Supps., and Mcdse. for sale                   1,187       876
Prepaid Insurance Etc. ................                     94        51
For Special Liabilities ...............                     75        47
Miscellaneous Deferred Charges ........                     61        37
Exp. Leased premises ..................                     38        47
Deferred EPT Refundable ...............                    220       220
                                                       _______   _______
                                                       $85,864   $84,434

CAPITAL AND LIABILITIES
(000 Omitted)

Capital Stock:
50.000 $100 shares 5% Non-Cumulative ..                $ 5,000   $ 5,000
564,9890 npv common shares ............                 13,755    13,755
Less Adj. Prop. Accts .................                  2,835     2,088
                                                       _______   _______
                                                        11,420    11,667
                                                       _______   _______
                                                        16,420    16,666

Funded Debt:
2 3/4% Serial 1st Mortgage Bonds (1948-56)               3,600     4,000
3.3/4% Series 1st Mortgage Bonds, 1971                  11,000    11,000
4% Series 1st Mortgage Bonds, 1971                      13,000    13,000
                                                        ______    ______
                                                        27,600    28,000

Bond Interest Accrued ..................    172    174
Current Accounts Payable ...............  1,346  1,110
Current Accounts Payable ...............  6.roa    830 Yr,oa.... ETAETA
Taxes Accrued (est) ....................    613    813
Consumer Depsosits & Interest...........    138    135
Other Liabilities ......................    149    187
Special Liabilities:
Matured Interest Coupons ...............     73    132
Surp. Certs. (Northwestern Power)             2      2
Deferred Water Charges .................    558    567
Deferred Maintenance and Reconv ........  1,321  1,302   1,321     1,302
Depreciation Reserve ................... 26,559 24,883
Property Reserve .......................  7,291  7,291
                                                         33,850    32,174
Deferred Credit to Surplus EPT .........                    220       220
Earned Surplus .........................                  3,315     2,776

COMPARATIVE SERVICES
Comparative services, noted in the 1947 and 1946 reports are shown below:

Kw-hours generated .....................   1,277,514,800    1,220,191,700
Passengers carried .....................     102,802,620      105,983,270
Street Cars ............................             213              215
Motor Buses ............................             195              184
Trolley Buses ..........................              74               30
Street Car route miles .................              39               44
Motor Bus route miles ..................             111              104
Trolley Bus route miles ................              17               11
Gas from coke, daily ...................       2,500,000        2,500,000
Liquid Petroleum Gas, daily ............       5,000,000        5,000,000
Coke production yearly, tons ...........          45,000           45,000
Employees ..............................           2,436            2,432
Annual Payrolls ........................      $5,078,754       $4,714,529
Average weekly pay rate ................          $39.35           $36.25
Average annual pay rate ................          $2,046           $1,885
Taxes, excluding pay rate ..............        $946,469         $931,483