-----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, MmMWjr1RrL+NQXW68G71BmM+PwqstczE1k2xfflRKJjZxiss3CqhJ4KyNP4zww8+ QSTdVPFcdXmyQwVTJFBG8g== 0000024751-00-000008.txt : 20000516 0000024751-00-000008.hdr.sgml : 20000516 ACCESSION NUMBER: 0000024751-00-000008 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 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: 635025 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 EX-27 1
UT 12-MOS 12-MOS 3-MOS 3-MOS SEP-30-2000 SEP-30-1999 SEP-30-2000 SEP-30-1999 MAR-30-2000 SEP-30-1999 MAR-30-2000 MAR-30-1999 PER-BOOK PER-BOOK PER-BOOK PER-BOOK 14206844 164953000 0 0 0 0 0 0 5983288 4634607 0 0 2721208 2594352 0 0 4908259 2764936 0 0 27819599 26489195 0 0 2300000 2300000 0 0 653346 653346 0 0 2834602 2158820 0 0 5787948 5112166 0 0 0 0 0 0 0 0 0 0 10958632 11223256 0 0 2455000 2165000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5783417 7988773 0 0 27819599 26489195 0 0 0 0 7404771 4127298 0 0 0 0 0 0 6656746 3812956 0 0 6656746 3812956 0 0 748025 314342 0 0 22000 103823 0 0 770025 418165 0 0 277298 254843 0 0 492727 163322 0 0 0 0 0 0 492727 163322 0 0 0 0 0 0 277298 254843 0 0 677056 908175 0 0 1.071 (0.355) 0 0 0 0
10QSB 2 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For Quarter Ended March 31, 2000 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 IRS Employer ID No incorporation or organization) 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 checkmark 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 Securities Exchange Act of 1934 and 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. As the Company's business is seasonal, the interim results should not be used as an indication of what results for the twelve months of the fiscal year 2000 may be. Net consolidated income for the quarter ended March 31, 2000 was $492,727, compared to income of $488,847 in the same quarter the previous year. Earnings from gas operations decreased $86,000 due to increased costs, particularly interest and wages. The Foodmart Plaza and Tax Center International produced earnings that met forecasted levels, contributing an additional $19,500 to consolidated net income. The Appliance Company experienced an increase in earnings of $27,000 due to a 27% increase in revenues. Earnings from Corning Realty Associates increased $60,500 due to implementation of some new policies and budgets. Segment Overview: Information concerning the Company's 5 operating segments for the second quarter of 2000 and 1999 is provided below. The table reflects the results of the segments on a basis that is consistent with the manner in which management evaluates the performance of each of the segments. Gas Appliance Tax Corning Foodmart Company Corporatio Center Realty Plaza Consolidated ------------------------------------------------------------ Revenue: 2000 7,404,771 619,204 92,139 826,427 69,950 9,012,491 1999 7,521,905 488,999 61,438 811,771 67,825 8,951,938 Net income (loss): 2000 471,355 52,305 15,413 (52,480) 6,134 492,727 1999 557,395 25,395 15,661 (117,684) 8,080 488,847 Interest income: 2000 478 23,256 68 -- -- 23,802 1999 662 13,103 -- -- -- 13,765 Interest expense: 2000 280,346 2,699 1,213 35,891 22,509 342,658 1999 240,052 179 1,279 28,896 23,071 293,477 Identifiable assets*: 2000 20,563,446 3,044,522 187,064 1,941,345 1,207,704 26,944,081 1999 22,087,245 2,573,469 139,812 2,017,247 1,231,175 28,048,948 Depreciation and amortization: 2000 118,006 58,935 2,889 39,762 15,578 235,170 1999 108,036 59,050 2,451 33,591 7,152 210,280 Income tax expense (benefit): 2000 293,512 40,772 6,702 (34,899) 4,080 310,167 1999 284,483 21,390 10,278 (54,561) 5,374 266,964 *Identifiable assets include property, plant and equipment, accounts receivable, inventories, cash and other amounts specifically related to each identified segment. Interest income and expense have been displayed in the segment in which it has been earned or incurred. Segment interest expense other than the Gas Company is included within unregulated expenses in the consolidated statements of income. On January 1, 1999 the Company adopted Financial Accounting Standards Board Statement No. 130, Reporting Comprehensive Income(Statement 130).Statement 130 established standards for reporting and presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and net unrealized gains on marketable securities and is presented in a statement of comprehensive income. The statement requires only additional disclosures in the consolidated financial statements; it does not affect the Company's financial position or results of operations. The year 2000 issue (Y2K) refers to the inability of certain computerized systems and technologies to recognize and/or correctly process dates beyond December 31, 1999. Corning Natural Gas Corporation has identified those areas within the Company where the potential exists for computer system failure or miscalculations by computer programs could cause a disruption in the Company's operations or services. A Y2K Coordinator, Thomas S. Roye, was assigned and a Y2K plan was developed. The event has passed, without any significant problems, and although problems may still occur, the Company anticipates no further problems. Internal generation of funds should be sufficient to meet the needs of the Company coupled with some intermittent short-term borrowings. 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 ofcertified public accountants. There were no sales of unregistered securities (debt or equity) during the quarter ending March 31, 2000. As reported on Form 8-K, dated April 19, 2000, the Board of Directors voted on April 13, 2000 to terminate KPMG LLP's appointment as principal accountants and Deloitte & Touche LLP were engaged as principal accountants. 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. Date May 12, 2000 /S/THOMAS K. BARRY Thomas K. Barry, Chairman of the Board, President and CEO. Date May 12, 2000 /S/ GARY K. EARLEY Gary K. Earley, Treasurer CORNING NATURAL GAS CORPORATION Condensed Consolidated Balance Sheets Form 10-QSB March 30, 2000 Sept 30, 1999 Assets Property, plant & equipment, at original cost: Utility $ 21,913,797 21,667,115 Non-Utility-principally rented appl and plaza property 4,148,956 3,941,231 ------------------------------ 26,062,753 25,608,346 Less accumulated depreciation ( 9,443,445) ( 9,113,046) ------------------------------ 16,619,308 16,495,300 ------------------------------ Current assets: Cash 229,658 205,787 Marketable securities available for sale, at fair value 1,235,770 1,021,696 Accounts receivable, less allowance for uncollectibles 2,503,034 1,883,915 Gas stored underground, at average cost 610,944 134,650 Gas and appliance inventories 573,623 634,348 Prepaid income taxes 80,194 340,328 Deferred income tax assets 11,000 11,000 Prepaid expenses 559,065 402,883 ------------------------- 5,983,288 4,634,607 ------------------------- Deferred charges: Prepaid pension & other 1,572,642 1,380,984 Regulatory assets 0 196,707 Deferred debits-accounting for income taxes 1,016,661 1,016,661 Unrecovered gas costs 131,905 0 ------------------------- 2,721,208 2,594,352 Goodwill, net of amortization 1,793,109 1,851,625 Long-term debt issuance costs 360,538 371,317 Other assets 522,148 541,994 -------------------------- $ 27,819,599 26,489,195 =========================== Capitalization and Liabilities Common stock $ 2,300,000 2,300,000 Additional paid-in capital 653,346 653,346 Accumulated Comprehensive Income Net unrealized gain on securities available for sale 145,235 64,883 Retained earnings 2,689,367 2,093,937 --------------------------- 5,787,948 5,112,166 Long-term debt,less curr installments 10,958,632 11,223,256 --------------------------- Total capitalization 16,746,580 16,335,422 --------------------------- Current liabilities: Borrowings under lines-of-credit 2,455,000 2,165,000 Accounts payable 1,810,731 1,404,370 Dividends payable 0 149,500 Current installments of long-term debt 202,774 202,774 Customers' deposits and accrued interest 341,874 665,990 Accrued general taxes 473,183 94,441 Supplier refunds due customers 284,919 268,862 Accrued expenses 725,541 668,224 -------------------------- Total current liabilities 6,294,022 5,619,161 -------------------------- Deferred credits: Deferred income tax liabilities 2,531,126 2,413,080 Deferred compensation, postretirement benefits, and other 1,519,142 1,519,142 Other 728,729 602,390 -------------------------- 4,778,997 4,534,612 -------------------------- $ 27,819,599 26,489,195 ============================= CORNING NATURAL GAS CORPORATION Condensed Consolidated Statements of Income Unaudited Form 10 QSB 03/31/00 03/31/99 03/31/00 03/31/99 ------------------------------------------------ Utililty Operating Revenues $ 7,404,771 $7,521,905 $11,318,118 $11,649,203 Cost and Expense Operating Expenses 6,360,186 6,431,452 9,861,946 10,256,977 Interest Expense 277,297 244,109 551,785 498,952 Income Tax 293,512 284,483 334,444 266,871 Other Deductions, Net 3,049 ( 4,056) 2,222 986 ----------------------------------------------- Total Costs and Expenses 6,934,043 6,955,988 10,750,396 11,023,786 Utility Operating Income 470,727 565,917 567,721 625,417 --------------------------------------------- Other Income 628 ( 8,522) 5,799 (7,712) ---------------------------------------------- Corning Natural Gas Appliance Corp. Operating Revenues 619,204 488,999 1,383,180 1,151,913 Depreciation 58,935 59,050 121,483 117,471 Operating Expense 476,379 387,984 1,034,983 897,931 Federal Income Tax 31,585 16,570 79,946 49,749 Equity in Earnings of Assoc. Cos. (30,933) (93,943) (13,171) (52,297) --------------------------------------------- Net Income of Appliance Co. 21,372 (68,548) 133,597 34,465 --------------------------------------------- $492,727 $488,847 $707,117 $652,170 ============================================ Earnings Per Share- basic & diluted $ 1.071 $ 1.063 $ 1.537 $ 1.418 Dividends Per Share $ 0.000 $ 0.000 $ 0.325 $ 0.650 Dividends Declared $ 0 $ 0 $ 149,500 $ 299,000 Shares of common stock outstanding were 460,000 at March 31, 2000. Earnings per share=Net Income as shown above divided by 460,000 shares. Dividends per share=Dividends declared divided by shares outstanding at time. CORNING NATURAL GAS CORPORATION Statement of Comprehensive Income Unaudited Form 10 QSB Quarter Ended Six Months Ended 03/31/00 03/31/99 3/31/00 03/31/99 -------------------------------------------- Net Income(loss) $ 492,727 $ 488,847 $ 707,117 $ 652,170 Other comprehensive income, net of tax: Unrealized gains on securities: 36,393 19,312 80,352 71,999 -------------------------------------------- Comprehenisve Income $ 529,120 $ 508,159 $787,469 $724,169 ============================================ CORNING NATURAL GAS CORPORATION Condensed Consolidated Statements of Cash Flows For Six Months Ended March 31, 2000 Form 10-QSB 03/31/00 03/31/99 Cash flows from operating activities: --------------------- Net Income $707,117 652,170 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 476,135 414,778 (Gain)loss on Sale of marketable securities ( 10,836) 11,704 Changes in assets and liabilities: (Increase)decrease in: Accounts receivable (619,119) (1,476,952) Gas stored underground (476,294) 962,535 Gas and appliance inventories 60,725 15,251 Prepaid expenses (156,182) (181,719) Unrecovered gas costs (131,905) 191,819 Prepaid income taxes 260,134 11,003 Deferred charges-pension & other (191,658) (290,821) Other assets 19,846 ( 7,966) Increase(decrease) in: Accounts payable 406,361 ( 52,211) Accrued general taxes 378,742 200,112 Supplier refunds due customers 16,057 ( 70,731) Deferred income taxes 118,046 23,227 Other liabilities & deferred credits (180,113) 895,563 --------------------- Net cash provided by operating activities 677,056 1,297,762 Cash flows from investing activities: Purchase of securities available for sale, net 0 ( 77,584) Acquisitions of businesses, net of cash acquired 0 (468,334) Capital expenditures, net of minor disposals ( 529,061) (699,456) ----------------------- Net cash used in investing activities (529,061) (1,245,374) Cash flows from financing activities: Net borrowings(repayments)under line-of-credit agreements 290,000 (115,000) Dividends paid (149,500) (299,000) Borrowings(repayments) under long-term debt agreements (264,624) 415,779 ----------------------- Net cash provided by (used in) financing activities (124,124) 1,779 Net increase in cash 23,871 54,167 Cash at beginning of period 205,787 284,426 --------------------- Cash at end of period $ 229,658 338,593 --------------------- Supplemental disclosures of cash flow information: Cash paid during period for: Interest $ 301,269 561,935 Income taxes 158,600 56,357 Non cash investing and finacing activities: Aquisition of business financed by seller $ 0 1,056,666 -----END PRIVACY-ENHANCED MESSAGE-----