-----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, DShJwKNAgLaVqXp2xYDTB4GHGo2k2aP8y22vdweTRCPEYptTtrVa1tj5fwzqahDq 6SAYJhticvBoBI2+/aDJug== 0000024751-98-000003.txt : 19980519 0000024751-98-000003.hdr.sgml : 19980519 ACCESSION NUMBER: 0000024751-98-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-00643 FILM NUMBER: 98626704 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 March 31, 1998 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 Identification incorporation or organization) No.) 330 W. William Street, PO 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 change 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 March 31, 1998 were $7,173,161, an increase of $5,609,309 or 358% more than the quarter ending September 30, 1997 and $456,942 or 6% less than the quarter ending March 31, 1997. Degree days for the quarter ending March 31, 1998 were 2,754, an increase of 2,495 or 963% more than the quarter ending September 30, 1997 and 336 or 11% less than the quarter ending March 31, 1997. 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 03/31/98 Quarter Ending 3/31/98 3,069,063 Quarter Ending 9/30/97 824,993 (2,244,070) Quarter Ending 3/31/97 3,455,554 (386,491) 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 $6,047,059, an increase of $4,278,674 or 242% more than the quarter ending September 30, 1997 and $398,690 or 6% less than the quarter ending March 31, 1997. Net Income was $604,959, an increase of $783,817 or 436% more than the quarter ended September 30, 1997 and $84,867 or 12% less than the quarter ending March 31, 1997. Since the Company's business is seasonal by quarters, results for the first six months of fiscal year 1998 should not be used as an indication of what results for the full twelve months of fiscal year 1998 may be. Late in September, 1997, the Company completed a long-term debt financing in the amount of $4.7 million. These funds were obtained as a senior note with interest at 7.9 percent over a 20 year term. This financing allowed the Company to reduce short-term debt in the amount of $3.1 million and to retire a 10 percent bond with a balance of $1.6 million. Savings of over $200,000 were estimated on the bond retirement while the entire package served to strengthen the capitalization structure. In April 1998 the Company's Appliance subsidiary completed the purchase of three local existing businesses. A shopping plaza in South Corning was purchased which consists of eight businesses housed in 52,000 square feet of rentable space with a major grocery store as the anchor. Also purchased was a real estate organization and a tax and financial services company. The real estate firm is a franchise of The Prudential Marketplace Realty and has twenty three agents operating out of offices in both the Corning and Elmira, New York market. Tax Center International provides tax preparation accounting, and payroll services and currently serves over six hundred clients. These purchases are part of the Company's plan to aggressively explore new opportunities in non-traditional areas. 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 March 31, 1998. 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 March 31, 1998. 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 Date May 11, 1998 THOMAS K. BARRY Thomas K. Barry, Chairman of the Board, President and C.E.O. Date May 11, 1998 GARY K. EARLEY Gary K. Earley, Treasurer CORNING NATURAL GAS CORPORATION CONSOLIDATED STATEMENT OF INCOME UNAUDITED FORM 10 QSB FOR QUARTER ENDED SIX MONTHS ENDED 03/31/1998 03/31/1997 03/31/1998 03/31/1997 Operating Revenues $7,173,161 $7,630,103 $11,841,189 $12,515,296 Cost and Expense Operating Exp 6,047,059 6,445,749 10,309,802 10,813,512 Interest Exp 240,779 219,375 477,121 450,675 Income Tax 319,729 324,227 361,511 411,789 Other Deductions 2,635 577 5,157 1,214 Total 6,610,202 6,989,928 11,153,591 11,677,190 Operating Income 562,959 640,175 687,598 838,106 Other Income 100 100 100 888 Corning Natural Gas Appliance Corp.: Operating Revenues 555,028 562,171 1,272,707 1,254,792 Depreciation 59,870 60,754 121,035 122,217 Other Operating Exp 440,052 426,734 940,685 929,822 Federal Income Tax 13,206 25,132 81,017 72,160 Net Income 41,900 49,551 129,970 130,593 Net Income $ 604,959 $ 689,826 $ 817,668 $ 969,587 ======= ======== ======== ========= Earnings Per Share $ 1.315 $ 1.50 $ 1.778 $ 2.108 Dividends Per Share $ .0 $ 0 $ .33 $ .64 Dividends Declared $0 $0 $149,501 $294,400 Shares of common stock outstanding were 460,000 at March 31, 1998 Earnings per share = Net Income as shown above divided by 460,000 shares. Dividends per share = Dividends declared divided by shares outstanding at the time. See Management's Discussion & Analysis on Page 5. CORNING NATURAL GAS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS FORM 10-QSB - UNAUDITED MARCH 31, 1998 MARCH 31, 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 817,668 $ 969,587 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 369,347 360,049 Allowance for Funds Used During Const. 0 0 Changes in Assets and Liabilities: (Increase) Decrease in: Accounts Receivable (1,452,551) (1,361,094) Materials & Supplies Inventory ( 187,339) 724,573 Other Deferred Charges 1,319,858 984,555 Prepaid and Other Assets 263,568 306,636 Increase (Decrease) in: Accounts Payable 40,570 270,285 Accrued General Taxes 72,358 53,765 Accrued Federal Income Tax 333,938 312,023 Deferred Federal Income Tax ( 81,263) ( 25,682) Other Liab and Deferred Credits ( 681,664) ( 693,603) Net Cash Provided (used) by Operating Activities 814,490 1,901,094 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures ( 502,812) ( 462,261) Purchases of Marketable Securities ( 59,173) ( 497,497) Net Cash Used in Investing Act ( 561,985) ( 959,758) CASH FLOWS FROM FINANCING ACTIVITIES: Net Borrowings (Repayments) Under Line-of-Credit Agreement 100,000 ( 125,000) Dividends Paid ( 149,500) ( 294,400) Repayment of Long-Term Debt 0 ( 100,000) Net Cash Provided (used in) Financing Activities (49,500) ( 519,400) NET INC. (DEC.) IN CASH AND CASH EQUIV. 203,005 421,936 CASH AND CASH EQUIV. AT BEG. OF PERIOD 262,752 180,595 CASH AND CASH EQUIV. AT END OF PERIOD $ 465,757 $ 602,531 ======== ========= Supplemental Disclosures of Cash Flow Information: Cash paid During the Year for: Interest (Net of Amount Capitalized) $ 442,524 $ 440,027 Income Taxes $ 110,000 $ 86,000 CORNING NATURAL GAS CORPORATION Consolidated Balance Sheet At March 31, 1998 and September 30, 1997 Form 10-QSB Unaudited Assets 03/31/98 09/30/97 Gas Utility Plant $20,818,424 $20,3 78,449 Non-Utility-Principally Rented Gas App. 2,533,082 2,533,498 23,351,506 22,911,947 Less: Accum. Provision for Depreciation (8,784,540) (8,478,446) $14,566,966 $14,433,501 Current Assets: Cash and Equivalents 465,757 262,752 Marketable Securities Available for Sale 701,072 641,899 Accounts Receivable 2,447,766 995,215 Materials, Supplies and Inventories 2,176,737 1,989,398 Prepayments and Other 783,114 1,046,682 Total Current Assets 6,574,446 4,935,946 Non-Current Assets Def. Tax Assets 440,224 62,000 Def. Debits - Acctg. for Income Taxes 865,837 1,016,661 Deferred Debits ( 72,460) 1,247,398 Total Non-Current Assets 1,233,601 2,326,059 Total Assets $22,375,013 $21,695,506 =========== ============ Capitalization & Liabilities Capitalization: Common Stock 2,300,000 2,300,000 Premium on Capital Stock 653,346 653,346 Retained Earnings 2,924,259 2,256,091 5,877,605 5,209,437 Long Term Debt 9,400,000 9,400,000 Total Capitalization 15,277,605 14,609,437 Current Liabilities: Short Term Notes Payable 875,000 775,000 Accounts Payable 1,870,910 1,830,340 Customer Deposits and Accrued Interest 239,366 673,114 Accrued Federal Income Tax 333,938 0 Other Accrued Taxes 184,725 112,367 Current Maturities of Long Term Debt 0 0 Other Current and Accrued Liabilities 235,177 624,790 Total Current Liabilities 3,739,116 4,015,611 Accumulated Deferred FIT 2,591,103 2,444,966 Reserves and Other Liabilities 767,189 625,492 Total Liab. and Capitalization $ 22,375,013 $ 21,695,506 ========== ========== See Management's Discussion & Analysis on Page 5 EX-27 2
UT 12-MOS 12-MOS 3-MOS 3-MOS SEP-30-1998 SEP-30-1997 SEP-30-1998 SEP-30-1997 MAR-31-1998 MAR-31-1997 MAR-31-1998 MAR-31-1997 PER-BOOK PER-BOOK PER-BOOK PER-BOOK 13555273 13175808 0 0 1011693 1091528 0 0 6574446 5093367 0 0 1233601 1492491 0 0 0 0 0 0 22375013 20853194 0 0 2300000 2300000 0 0 653346 653346 0 0 2924259 2869569 0 0 5877605 5822915 0 0 0 0 0 0 0 0 0 0 9400000 6200000 0 0 875000 2600000 0 0 0 0 0 0 0 0 0 0 0 100000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6242408 6130279 0 0 22375013 20853194 0 0 0 0 7173161 7630103 0 0 319729 324227 0 0 6049694 6446326 0 0 6369423 6770553 0 0 803738 859550 0 0 42000 49651 0 0 845738 909201 0 0 240779 219375 0 0 604959 689826 0 0 0 0 0 0 604959 689826 0 0 147200 147200 0 0 196083 143259 0 0 814490 1901094 0 0 1.315 1.5 0 0 0 0
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