-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MOk70EMLI4QAyciGTN1kIjSqOj3o4BnW0N/QY/XsCOu0EXgsN9OLQychlEThXmOI KtMQTLyuD7ptRp+hpFpj1w== 0000024751-96-000013.txt : 19960725 0000024751-96-000013.hdr.sgml : 19960725 ACCESSION NUMBER: 0000024751-96-000013 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960724 SROS: CBOE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNING NATURAL GAS CORP CENTRAL INDEX KEY: 0000024751 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 160397420 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-00643 FILM NUMBER: 96598370 BUSINESS ADDRESS: STREET 1: 330 W WILLIAM ST STREET 2: P O BOX 58 CITY: CORNING STATE: NY ZIP: 14830 BUSINESS PHONE: 6079363755 MAIL ADDRESS: STREET 1: 330 W WILLIAM STREET STREET 2: P O BOX 58 CITY: CORNING STATE: NY ZIP: 14830 10QSB 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended June 30, 1996 Commission File Number 0-643 Corning Natural Gas Corporation (Exact name of registrant as specified in its charter) New York 16-0397420 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) identification No.) 330 W. William St,. P.O. Box 58, Corning, New York 14830 607-936-3755 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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 such filing requirements for the past 90 days. Yes X No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No There were 460,000 shares of Common Stock outstanding at the end of the quarter. There is only one class of Common Stock and no Preference Stock outstanding. Management's Discussion Operating revenues for the quarter ending June 30, 1996 were $108,313 or 3% less than the quarter ending December 31, 1995 and $774,381 or 22% more than the quarter ending June 30, 1995. Degree days for the quarter ending June 30, 1996 were 1,510 or 60% less than the quarter ending December 31, 1995 and 8 or 1% more than the quarter ending June 30, 1995. Since much of the Company's sales are dependent on weather conditions, the effects of the changes in degree days are reflected in the total MCF (thousand Cubic feet) deliveries. Increase (Decrease) From Quarter Ending Actual MCF Deliveries 6/30/96 Quarter Ending 06/30/96 1,545,045 Quarter Ending 12/31/95 2,200,305 ( 655,260) Quarter Ending 06/30/95 1,460,330 ( 84,715) MCF deliveries include transportation of customer owned gas for specific end use customers for which the Company receives a fee equal to its normal markup for transporting the gas. Operating expenses, made up largely of the cost of purchased gas were $195,278 or 5% more than the quarter ending December 31, 1995 and $756,808 or 22% more than the quarter ending June 30, 1995. Net Income was $262,152 or 84% less than the quarter ended December 31, 1995 and $16,123 or 48% more than the quarter ending June 30, 1995. Since the Company's business is seasonal by quarters, results for the first six months of 1996 should not be used as an indication of what results for the full twelve months of 1996 may be. In September 1995 the Company purchased the assets of a local gas distribution company, Finger Lakes Gas Company, through the Federal Bankruptcy Court. Finger Lakes Gas served customers in the Hammondsport, NY area and had a customer base of approximately 320 customers. The Company was able to purchase this all plastic system with a bid of $560,000. The Company was pleased to purchase these assets that originally cost over $1.5 million to construct for its relatively low bid. The nearly new, all plastic, system was already connected and serving 320 customers with a potential to add 200 more in the near future. On a per customer basis, this represents a very low investment. The capital to purchase these assets was obtained through short term debt. The Company has not found it necessary to apply for an increase in rates on this part of our system which means the original rates made effective in 1990 remain in effect six years later. Shortly after the Company took possession of the system, Mercury Aircraft, Inc. announced it would purchase the former Taylor Wine Company facilities and centralize their other plants there. The reopening of this major facility will most certainly contribute toward the stability and future viability of the new gas system which is now part of the Company. The former Finger Lakes Gas Company's operations, which did not have a significant impact on 1995, are included in the consolidated results from the acquisition date. In December, 1994 the New York Public Service Commission instituted a proceeding to address issues related to the merging competitive natural gas market. This proceeding is intended to provide a framework whereby access to facilities on upstream pipelines made available by FERC Order 636 would be available to end use customers on the Local Distribution Company level. The Company made the required filings; they were approved and became effective May 1, 1996. The Company considers this a transitional step towards full unbundling of services with future changes made as circumstances warrant. The Company currently has a rate application before the New York State Public Service Commission requesting an increase of approximately 2.5% of revenues. Negotiations are on going and the Company expects approval of the application and the ability to implement the new rates in 1996. Internal generation of funds should be sufficient to meet the needs of the Company coupled with some intermittent short- term borrowings. There has been no change in independent public accountants. The Company has not filed any reports on Form 8-K for the quarter ended June 30, 1996. The information furnished herewith reflects all adjustments which are in the opinion of management necessary to a fair statement of the results for the period. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to SEC rules and regulations, although the Company believes the disclosures which are made are adequate to make the information presented not misleading. The condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's latest annual report on Form 10-KSB. The statements contained herein have not been examined or certified by a firm of certified public accountants. There were no sales of unregistered securities (debt or equity) during the fiscal quarter ending June 30, 1996. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CORNING NATURAL GAS CORPORATION (Registrant) Date July 19, 1996 THOMAS K. BARRY Thomas K. Barry, Chairman of the Board, President and C.E.O. Date July 19, 1996 GARY K. EARLEY Gary K. Earley, Treasurer SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CORNING NATURAL GAS CORPORATION (Registrant) Date July 19, 1996 Thomas K. Barry, Chairman of the Board, President and C.E.O. Date July 19, 1996 Gary K. Earley, Treasurer CONSOLIDATED STATEMENT OF INCOME UNAUDITED FORM 10 QSB FOR QUARTER ENDED 6 MONTHS ENDED June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995 Operating Revenues $ 4,386,990 $ 3,612,609 $ 13,356,313 $ 10,561,311 Cost and Expense Operating Expenses 4,161,307 3,404,499 11,907,061 9,282,860 Interest Expense 187,664 188,059 407,652 410,605 Income Tax 26,218 17,818 450,713 320,022 Other Deductions Net 1,029 2,350 2,662 5,304 Total Costs and Expenses 4,376,218 3,612,726 12,768 088 10,018,791 Operating Income 10,722 (117) 588,225 542,520 Other Income 2,884 4,360 92,143 12,226 Corning Natural Gas Appl. Corp. Operating Revenues 494,754 468,545 1,035,759 939,087 Depreciation 58,328 59,529 116,579 116,440 Other Operating Expenses 373,858 364,286 757,629 715,201 Federal Income Tax 26,687 15,559 71,604 40,803 Net Income of Appl. Corp. 35,881 29,171 89,947 66,643 Net Income $ 49,537 $ 33,414 $ 770,315 $ 621,389 Earnings Per Share $ .108 $ .073 $ 1.675 $ 1.351 Dividends Per Share $ .315 .31 .63 .62 Total Dividends Paid $ 144,901 142,600 289,801 285,200 Shares of common stock outstanding were 460,000 at June 30, 1996. Earnings per share = Net Income as shown above divided by 460,000 shares. Dividends per share = Dividends paid divided by shares outstanding at the time. See Management's Discussion & Analysis on Page 5. CONSOLIDATED STATEMENT OF CASH FLOWS FORM 10-QSB - UNAUDITED June 30, 1996 June 30, 1995 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 770,316 621,388 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 355,929 285,444 All. for Funds Used During Const. 0 0 Changes in Assets and Liabilities: (Increase) Decrease in: Accounts Receivable 231,495 243,519 Materials, Supplies & Appliance Inventory (475,915) 442,578 Other Deferred Charges 2,487,393 2,089,476 Prepaid and Other Assets (124,741) 127,982 Increase (Decrease) in: Accounts Payable (222,258) (143,482) Accrued General Taxes 208,596 72,885 Accrued Federal Income Tax (84,484) 234,498 Deferred Federal Income Tax (390,942) 18,619 Other Liabilities and Deferred Credits ( 38,093) ( 752,469) Net Cash Provided (used) by Operating Activities 2,717,296 3,240,438 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures ( 343,461) (338,700) Allowance for Funds Used During Construction 0 0 Net Cash Used in Investing Activities( 343,461) (338,700) CASH FLOWS FROM FINANCING ACTIVITIES: Net Borrowings (Repayments) Under Line-of-Credit Agreement (1,980,000) (2,045,000) Dividends Paid (289,801) (285,200) Repayment of Long-Term Debt 0 0 Restricted Funds used for Qualified Additions 0 0 Common Stock Issued 0 0 Net Cash Provided (Used In) Financing Activities (2,269,801) (2,690,200) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 104,034 211,538 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 405,806 183,086 CASH AND CASH EQUIVALENTS AT END OF PERIOD 509,840 394,624 =========== =========== Supplemental Disclosures of Cash Flow Information: Cash Paid During The Year For: Interest (Net of Amount Capitalized) 387,974 398,679 Income Taxes 865,063 61,750 Consolidated Balance Sheet At June 30, 1996 Assets 06/30/96 12/31/95 Gas Utility Plant $ 19,445,643 $19,309,418 Non-Utility Principally Rented Gas Appl. 2,400,268 2,366,834 21,845,911 21,675,252 Less: Accum. Provision for Depreciation (7,701,345) (7,519,218) $ 14,144,566 $14,156,034 Current Assets: Cash and Equivalents 509,840 405,806 Restricted Short-Term Investments 0 0 Accounts Receivable 1,586,711 1,818,206 Materials, Supplies and Inventories 1,914,759 1,438,844 Prepayments and Other 616,104 491,363 Total Current Assets 4,627,414 4,154,219 Non-Current Assets: Def. Tax Assets 613,463 1,016,661 Def. Debits - Acctg. for Income Taxes 660,720 315,000 Deferred Debits (317,592) 2,169,801 Total Non-Current Assets 956,591 3,501,462 Total Assets $ 19,728,571 $21,812,715 ========== ========== Capitalization and Liabilities Capitalization: Common Stock 2,300,000 2,300,000 Premium on Capital Stock-Common 653,346 653,346 Retained Earnings 2,626,212 2,145,697 5,579,558 5,099,043 Long Term Debt 6,300,000 6,300,000 Total Capitalization 11,879,558 11,399,043 Current Liabilities: Short Term Notes Payable 1,835,000 3,815,000 Accounts Payable 1,398,380 1,620,638 Customer Deposits and Accrued Int. 202,080 192,213 Accrued Federal Income Tax 6,579 91,063 Other Accrued Taxes 316,183 107,587 Current Maturities of Long Term Debt 100,000 100,000 Other Current and Accrued Liabilities 499,188 343,498 Total Current Liabilities 4,357,410 6,269,999 Accrued Deferred FIT 2,454,983 2,963,403 Reserves and Other Liabilities 1,036,620 1,240,220 Total Liabilities and Capitalization $ 19,728,571 $21,812,715 ========== ========== See Management's Discussion & Analysis on Page 5 EX-27 2
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