-----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, DY4kc4nFP324b8/g6ZFyRlVjBsSOKmOtc1iOEcovlgm77iyLOQg9ddWdANnS+z4+ 551OfNVqRk837ffbXDnRfg== 0000024751-97-000002.txt : 19970220 0000024751-97-000002.hdr.sgml : 19970220 ACCESSION NUMBER: 0000024751-97-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970203 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: 1934 Act SEC FILE NUMBER: 000-00643 FILM NUMBER: 97516495 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 December 31, 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 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 December 31, 1996 were $3,242,434 or 197% more than the quarter ending September 30, 1996 and $389,889 or 8% more than the quarter ending December 31, 1995. Degree days for the quarter ending December 31, 1996 were 2,362 or 4072% more than the quarter ending September 30, 1996 and 79 or 3% less than the quarter ending December 31, 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 12/31/96 Quarter Ending 12/31/96 2,126,330 Quarter Ending 9/30/96 876,534 (1,249,796) Quarter Ending 12/31/95 2,200,305 73,975 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 $2,714,219 or 138% more than the quarter ending September 30, 1996 and $392,627 or 9% more than the quarter ending December 31, 1995. Net Income was $566,691 or 297% more than the quarter ended September 30, 1996 and $31,926 or 10% more than the quarter ending December 31, 1995. Since the Company's business is seasonal by quarters, results for the first three months of fiscal year 1997 should not be used as an indication of what results for the full twelve months of fiscal year 1997 may be. In September 1995 the Company purchased the assets of a local gas distribution system, 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. 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, did not have a significant impact on 1995, but contributed in excess of $150,000 to gross margin (revenues less gas cost) for the period ended September 30, 1996. In December, 1994 the New York Public Service Commission instituted a proceeding to address issues related to the emerging competitive natural gas market. This proceeding was 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. New tariff filings were approved and became effective September 1, 1996. The Company considers this a transitional step towards full unbundling of services with future changes made as circumstances warrant. The Company received approval for a rate increase from the New York State Public Service Commission of approximately $124,000 in revenues with an effective date of September 1, 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 December 31, 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 December 31, 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 January 30, 1997 THOMAS K. BARRY Thomas K. Barry, Chairman of the Board, President and C.E.O. Date January 30, 1997 GARY K. EARLEY Gary K. Earley, Treasurer CORNING NATURAL GAS CORPORATION CONSOLIDATED STATEMENT OF INCOME UNAUDITED FORM 10 QSB FOR QUARTER ENDED ----------------- Dec. 31, 1996 Dec. 31, 1995 ------------- ------------- Operating Revenues $ 4,885,193 $ 4,495,304 Cost and Expense Operating Expenses 4,367,763 3,963,028 Interest Expense 231,300 246,209 Federal Income Tax 87,562 83,455 Other Deductions Net 637 1,943 ----------- ----------- Total Costs and Expenses 4,687,262 4,294,635 ----------- ----------- Operating Income 197,931 200,669 Other Income 789 13,676 Corning Natural Gas Appliance Corp.: Operating Revenues 692,621 605,519 Depreciation 61,463 58,442 Other Operating Expenses 503,088 406,077 Federal Income Tax 47,028 43,657 ----------- ----------- Net Income of Appliance Corp. 81,042 97,343 ----------- ----------- Net Income $ 279,762 $ 311,688 =========== =========== Earnings Per Share $ 0.608 $ 0.678 Dividends Per Share $ 0.64 $ 0.315 Total Dividends Paid $ 147,200 $ 144,900 Shares of common stock outstanding were 460,000 at December 31, 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. CORNING NATURAL GAS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS FORM 10-QSB - UNAUDITED DEC. 31, 1996 DEC. 31, 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income 279,762 311,689 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 180,279 173,066 Allowance for Funds Used During Const. 0 0 Changes in Assets and Liabilities: (Increase) Decrease in: Accounts Receivable (1,181,052) (1,697,098) Materials, Supplies & Appliance Inventory 232,174 478,564 Other Deferred Charges 311,465 (284,438) Prepaid and Other Assets 494,035 (406,755) Increase (Decrease) in: Accounts Payable 1,266,475 362,605 Accrued General Taxes (10,232) (132,122) Accrued Federal Income Tax (51,603) 404,730 Deferred Federal Income Tax 57,087 103,475 Other Liabilities and Deferred Credits (965,395) 381,450 Net Cash Provided (used) by Operating Activities 612,995 (304,834) CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (228,135) (221,231) Allowance for Funds Used During Const. 0 0 Net Cash Used in Investing Activities (228,135) (221,231) CASH FLOWS FROM FINANCING ACTIVITIES: Net Borrowings (Repayments) Under Line-of-Credit Agreement 715,000 550,000 Dividends Paid (294,400) (144,901) Repayment of Long-Term Debt (100,000) (100,000) Restricted Funds used for Qualified Additions 0 0 Common Stock Issued 0 0 Net Cash Provided (used in) Financing Activities 320,600 305,099 NET INC. (DEC.) IN CASH AND CASH EQUIV. 705,460 (220,966) CASH AND CASH EQUIV. AT BEG. OF PERIOD 180,595 363,871 CASH AND CASH EQUIV. AT END OF PERIOD $ 886,055 $ 142,905 =========== =========== Supplemental Disclosures of Cash Flow Information: Cash paid During the Year for: Interest (Net of Amount Capitalized) $ 296,588 $ 314,561 Income Taxes $ 0 $ 83,500 CORNING NATURAL GAS CORPORATION Consolidated Balance Sheet At December 31, 1996 Form 10-QSB Unaudited Assets 12/31/96 09/30/96 Gas Utility Plant $19,803,085 $19,616,872 Non-Utility-Principally Rented Gas App. 2,476,294 2,451,396 22,279,379 22,068,268 Less: Accum. Provision for Depreciation (8,009,383) (7,846,128) $14,269,996 $14,222,140 Current Assets: Cash and Equivalents 886,055 180,595 Restricted Short-Term Investments 0 0 Accounts Receivable 1,970,729 789,677 Materials, Supplies and Inventories 1,767,955 2,000,129 Prepayments and Other 379,613 873,648 Total Current Assets 5,004,352 3,844,049 Non-Current Assets Def. Tax Assets 573,022 257,000 Def. Debits - Acctg. for Income Taxes 669,550 1,016,661 Deferred Debits 906,247 1,217,712 Total Non-Current Assets 2,148,819 2,491,373 Total Assets $21,423,167 $20,557,562 ============ ============ Capitalization & Liabilities Capitalization: Common Stock 2,300,000 2,300,000 Premium on Capital Stock - Common 653,346 653,346 Retained Earnings 2,179,744 2,194,382 5,133,090 5,147,728 Long Term Debt 6,200,000 6,300,000 Total Capitalization 11,333,090 11,447,728 Current Liabilities: Short Term Notes Payable 3,440,000 2,725,000 Accounts Payable 2,412,665 1,146,190 Customer Deposits and Accrued Interest 214,428 735,398 Accrued Federal Income Tax (51,603) 0 Other Accrued Taxes 131,366 141,598 Current Maturities of Long Term Debt 100,000 100,000 Other Current and Accrued Liabilities 302,602 884,710 Total Current Liabilities 6,549,458 5,732,896 Accumulated Deferred FIT 2,643,211 2,617,213 Reserves and Other Liabilities 897,408 759,725 Total Liabilities and Capitalization $ 21,423,167 $ 20,557,562 =========== ========== See Management's Discussion & Analysis on Page 5 EX-27 2
UT 12-MOS 12-MOS 3-MOS 3-MOS SEP-30-1997 SEP-30-1996 SEP-30-1997 DEC-31-1995 DEC-31-1996 SEP-30-1996 DEC-31-1996 DEC-31-1995 PER-BOOK PER-BOOK PER-BOOK PER-BOOK 13140883 13185928 0 0 1081257 1084068 0 0 5004352 3844049 0 0 2148819 2491373 0 0 0 0 0 0 21423167 20557562 0 0 2300000 2300000 0 0 653346 653346 0 0 2179744 2194382 0 0 5133090 5147728 0 0 0 0 0 0 0 0 0 0 6200000 6300000 0 0 3440000 2725000 0 0 0 0 0 0 0 0 0 0 100000 100000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6550077 6284834 0 0 21423167 20557562 0 0 0 0 4885193 4495304 0 0 87562 83455 0 0 4368400 3964971 0 0 4455962 4048426 0 0 429231 446878 0 0 81831 111019 0 0 511062 557897 0 0 231300 246209 0 0 279762 311688 0 0 0 0 0 0 279762 311688 0 0 147200 144900 0 0 145758 148258 0 0 612995 (304834) 0 0 .608 .678 0 0 0 0
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