28  I5 Arial5! Arial5" Arial5# Arial5$ Arial5% Arial5& Arial5'  Arial5(  Arial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` @  a @  b @  c @  d @  e @  f @  g @  h @  i @  j @  k @  l @  m @  n@  o @  q @  r @  s@@ t @ @ u @@ v @@ @ w @@ x @   @ y@  z @  { @  | @  } @ ~ @  @ @  @ @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @ @  @  @ @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @ @  @  @ @  @  @  @  @  @  @  @  @  @  @  @  @  @  @@   @@   @@   @  @   @  @  @  @   @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  @  q@' q@' q@'q0*'ATMOS ENERGY CORPORATION!'CONSOLIDATED BALANCE SHEETS^SEPTEMBER 30^SEPTEMBER 30 ^2002 ^2001^(IN THOUSANDS,^(IN THOUSANDS,^EXCEPT SHARE DATA)^EXCEPT SHARE DATA) ^ASSETS#'Property, plant and equipment"$2,103,428"$2,055,986 'Construction in progress "24,399 "53,881 "2,127,827 "2,109,8674 'Less accumulated depreciation and amortization "827,507 "774,469,' Net property, plant and equipment"1,300,320"1,335,398'Current assets$' Cash and cash equivalents "46,827 "15,2631' Cash held on deposit in margin account "10,192 "66,666D' Accounts receivable, less allowance for doubtful accounts6' of $10,509 in 2002 and $16,151 in 2001 "136,227 "124,046' Inventories "3,769 "6,041!' Gas stored underground "91,783 "89,5551' Assets from risk management activities "27,984 "95,968' Deferred gas cost"-- "10,999/' Other current assets and prepayments "13,209 "15,713)' Total current assets "329,991 "424,251'Intangible assets "5,365 "12,125'Goodwill "185,015 "64,7457'Noncurrent assets from risk management activities "5,241 "29,771''Deferred charges and other assets "154,289 "169,890 "$1,980,221 "$2,036,180$"^CAPITALIZATION AND LIABILITIES#'Shareholders' equityB$' Common stock, no par value (stated at $.005 per share);F%' 100,000,000 shares authorized; issued and outstanding:D&' 2002 -- 41,675,932 shares, 2001 -- 40,791,501 shares&"$ 208&"$ 204%'' Additional paid-in capital '"508,265 '"489,948(' Retained earnings ("106,142 ("95,1328)' Accumulated other comprehensive income (loss))"(41,380) )"(1,420))+' Shareholders' equity +"573,235 +"583,864,'Long-term debt ,"670,463 ,"692,399).' Total capitalization."1,243,698."1,276,263/'Current liabilities/0' Current maturities of long-term debt 0"21,980 0"20,6951' Short-term debt 1"145,791 1"201,24732' Accounts payable and accrued liabilities 2"135,609 2"84,4713' Taxes payable 3"15,626 3"11,6204' Customers' deposits 4"31,147 4"32,35165' Liabilities from risk management activities 5"18,487 5"119,4846' Deferred gas cost 6"21,9476"--$7' Other current liabilities 7"72,520 7"41,161.9' Total current liabilities 9"463,107 9"511,029:'Deferred income taxes :"134,540 :"138,934<;'Noncurrent liabilities from risk management activities ;"3,663 ;"7,412,<'Deferred credits and other liabilities <"135,213 <"102,542>"$1,980,221>"$2,036,180AA'See accompanying notes to consolidated financial statementsC'ATMOS ENERGY CORPORATION'D'CONSOLIDATED STATEMENTS OF INCOMEE^YEAR ENDEDE^YEAR ENDEDE^YEAR ENDEDF^ SEPTEMBER 30F^ SEPTEMBER 30F^ SEPTEMBER 30 G^2002 G^2001 G^2000H^(IN THOUSANDS, H^(IN THOUSANDS, H^(IN THOUSANDS, I^EXCEPT PER SHARE DATA)I^EXCEPT PER SHARE DATA)I^EXCEPT PER SHARE DATA)J'Operating revenuesJ"$950,849J"$1,442,275J"$850,152K'Purchased gas cost K"558,247K"1,067,555 K"524,446M'Gross profit M"392,602 M"374,720 M"325,706N'Gas trading margin N"38,538 N"488N"--O'Operating expenses$P' Operation and maintenance P"158,119 P"139,608 P"147,897(Q' Depreciation and amortization Q"81,469 Q"67,664 Q"63,855#R' Taxes, other than income R"36,221 R"37,655 R"28,638-T' Total operating expenses T"275,809 T"244,927 T"240,390V'Operating income V"155,331 V"130,281 V"85,316W'Other income (expense)<X' Equity in earnings of Woodward Marketing, L.L.C. X"-- X"8,062 X"7,307.Y' Miscellaneous income (expense), net Y"(1,321) Y"(1,874) Y"7,4371[' Total other income (expense) ["(1,321) ["6,188 ["14,744\'Interest charges \"59,174 \"47,011 \"43,823 ^'Income before income taxes ^"94,836 ^"89,458 ^"56,237_'Income taxes _"35,180 _"33,368 _"20,319a' Net incomea"$ 59,656a"$ 56,090a"$ 35,918 c'Basic net income per sharec"$ 1.45c"$ 1.47c"$ 1.14"e'Diluted net income per sharee"$ 1.45e"$ 1.47e"$ 1.14g'Cash dividends per shareg"$ 1.18g"$ 1.16g"$ 1.14*i'Weighted average shares outstanding:j' Basic j"41,171 j"38,156 j"31,461l' Diluted l"41,250 l"38,247 l"31,594Ao'See accompanying notes to consolidated financial statementsq'ATMOS ENERGY CORPORATION5r'CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITYt"ACCUMULATEDu^COMMON STOCKu^COMMON STOCKu^ADDITIONAL u^OTHERv^NUMBER OF v^STATED v^PAID-INv^COMPREHENSIVEv^RETAINED w^SHARES w^VALUE w^CAPITALw^INCOME (LOSS)w^EARNINGS w^TOTAL'x'(IN THOUSANDS, EXCEPT SHARE DATA)!y'Balance, September 30, 1999y"31,247,800 y"$156y"$293,359y"$ 917y"$ 83,231y"$377,663z'Comprehensive income:{' Net income{"--{"--{"--{"-- {"35,918 {"35,918&|' Unrealized holding gains on }' investments, net}"--}"--}"-- }"1,348}"-- }"1,348~"--------4' Total comprehensive income "37,266&'Cash dividends ($1.14 per share)"--"--"--"--"(35,995)"(35,995)'Common stock:%' Direct stock purchase plan "440,990"2 "8,588"--"-- "8,590"' Retirement savings plan "258,049"1 "4,842"--"-- "4,843*' Long-term stock plan for United' Cities Division "4,200"--"66"--"--"66/' Outside directors stock-for-fee plan "2,601"1"50"--"--"51+' Cancellation of restricted stock "(1,300)"-- "(18)"--"-- "(18)!'Balance, September 30, 2000"31,952,340 "160 "306,887 "2,265 "83,154 "392,466'Comprehensive income:' Net income"--"--"--"-- "56,090 "56,090'' Unrealized holding losses on ' investments, net"--"--"-- "(3,685)"-- "(3,685)"---------' Total comprehensive 'income "52,405&'Cash dividends ($1.16 per share)"--"--"--"--"(44,112)"(44,112)'Common stock issued:%' Direct stock purchase plan "411,159"2 "8,682"--"-- "8,684"' Retirement savings plan "225,945"1 "5,098"--"-- "5,099*' Long-term stock plan for United' Cities Division "15,300"-- "240"--"-- "240#' Long-term incentive plan "17,172"-- "272"--"-- "272%' Directors equity incentive!' compensation plan "2,740"--"60"--"--"60/' Outside directors stock-for-fee plan "2,152"--"50"--"--"50%' Woodward Marketing, L.L.C.' acquisition"1,423,193"7 "26,650"--"-- "26,657' Public offering"6,741,500"34 "142,009"--"-- "142,043!'Balance, September 30, 2001"40,791,501 "204 "489,948 "(1,420) "95,132 "583,864'Comprehensive income:' Net income"--"--"--"-- "59,656 "59,656)' Minimum pension liability, net"--"--"--"(39,432)"--"(39,432)'' Unrealized holding losses on ' investments, net"--"--"-- "(528)"-- "(528)"---------' Total comprehensive 'income.................... "19,696&'Cash dividends ($1.18 per share)"--"--"--"--"(48,646)"(48,646)'Common stock issued:%' Direct stock purchase plan "505,202"2 "10,546"--"-- "10,548"' Retirement savings plan "326,335"2 "7,137"--"-- "7,139#' Long-term incentive plan "50,465"-- "579"--"-- "579/' Outside directors stock-for-fee plan "2,429"--"55"--"--"55!'Balance, September 30, 2002"41,675,932 "$208"$508,265"$(41,380)"$106,142"$573,235A'See accompanying notes to consolidated financial statements'ATMOS ENERGY CORPORATION+'CONSOLIDATED STATEMENTS OF CASH FLOWS^YEAR ENDED^YEAR ENDED^YEAR ENDED^ SEPTEMBER 30^ SEPTEMBER 30^ SEPTEMBER 30 ^2002 ^2001 ^2000^(IN THOUSANDS)^(IN THOUSANDS)^(IN THOUSANDS)*'CASH FLOWS FROM OPERATING ACTIVITIES' Net income"$ 59,656"$ 56,090"$ 35,918C' Adjustments to reconcile net income to net cash provided(' by operating activities:.' Depreciation and amortization:=' Charged to depreciation and amortization "81,469 "67,664 "63,855.' Charged to other accounts "2,452 "2,806 "3,065 ' Deferred income taxes "14,509 "18,501 "18,251' Other "(3,371) "(979)"--A' Net assets/liabilities from risk management activities "(9,576) "13,881"--/' Gain on sale of non-regulated assets"--"-- "(5,831)('Changes in assets and liabilities:H' (Increase) decrease in cash held on deposit in margin account "56,474"(62,181)"--5' (Increase) decrease in accounts receivable"(12,181) "65,032"(11,260)"' Decrease in inventories "2,272 "374 "2,037-' Increase in gas stored underground "(2,228) "(3,376)"(17,518)3' (Increase) decrease in deferred gas cost "32,946 "15,440"(31,353)F' (Increase) decrease in other current assets and prepayments "2,504 "(6,646) "(4,930)8' Increase in deferred charges and other assets"(33,515)"(12,143)"(13,053)2' Increase (decrease) in accounts payable "51,138"(94,769) "8,643$' Increase in taxes payable "4,006 "791 "9,6075' Increase (decrease) in customers' deposits "(1,204) "6,078 "(909);' Increase (decrease) in other current liabilities "31,393 "9,019 "(4,866)=' Increase in deferred credits and other liabilities "19,487 "7,413 "2,5409' Net cash provided by operating activities "296,231 "82,995 "54,196-'CASH FLOWS USED IN INVESTING ACTIVITIES' Capital expenditures"(132,252)"(113,109)"(75,557)' Acquisitions"(15,747)"(363,399)"(32,000)<' Retirements of property, plant and equipment, net "(1,725) "(1,460) "957(' Assets for leasing activities "(8,511) "(5,377)"--,' Increase in cash from acquisition"-- "8,644"--,' Proceeds from sale of assets, net"-- "6,625 "6,4675' Net cash used in investing activities"(158,235)"(468,076)"(100,133)*'CASH FLOWS FROM FINANCING ACTIVITIES5' Net increase (decrease) in short-term debt"(55,456)"(48,800) "81,7437' Net proceeds from issuance of long-term debt"-- "347,099"--&' Repayment of long-term debt"(20,651)"(17,670)"(14,567)' Cash dividends paid"(48,646)"(44,112)"(35,995)#' Issuance of common stock "18,321 "14,405 "13,550,' Net proceeds from equity offering"-- "142,043"--@' Net cash provided (used) by financing activities"(106,432) "392,965 "44,731:'Net increase (decrease) in cash and cash equivalents "31,564 "7,884 "(1,206)4'Cash and cash equivalents at beginning of year "15,263 "7,379 "8,585.'Cash and cash equivalents at end of year"$ 46,827"$ 15,263"$ 7,379A'See accompanying notes to consolidated financial statements 6Sheet1 6Sheet2 6Sheet3d_ Arial  O4!*d"""dFM3FM3 PropertyWK3WK3 Property  TW UGW CWU6W 2WCMHdrTW