-----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, Q3F6sr0atngv4tawewbaNBLM2jRcEwsdAxagD+VJIbL9IQbRmUzAo8DacL5YEQtU W1O4rv2lZhsS3Iw6B/sbmA== 0000024751-97-000003.txt : 19970523 0000024751-97-000003.hdr.sgml : 19970523 ACCESSION NUMBER: 0000024751-97-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970522 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: 97613117 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, 1997 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 March 31, 1997 were $5,987,344 or 364% more than the quarter ending September 30, 1996 and $1,339,220 or 15% less than the quarter ending March 31, 1996. Degree days for the quarter ending March 31, 1997 were 3,032 or 5228% more than the quarter ending September 30, 1996 and 440 or 12% less than the quarter ending March 31, 1996. 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 03/31/97 Quarter Ending 03/31/97 3,455,554 Quarter Ending 9/30/96 876,534 (2,579,020) Quarter Ending 03/31/96 3,611,230 155,676 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 $5,016,885 or 254% more than the quarter ending September 30, 1996 and $1,401,942 or 17% less than the quarter ending March 31, 1996. Net Income was $976,755 more than the quarter ended September 30, 1996 and $30,952 less than the quarter ending March 31, 1996. Since the Company's business is seasonal by quarters, results for the first six 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 March 31, 1997. 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, 1997. 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 April 30, 1997 THOMAS K. BARRY Thomas K. Barry, Chairman of the Board, President and C.E.O. Date April 30, 1997 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 March 31, 1997 March 31, 1996 March 31, 1997 March 31, 1996 ---------------------- ---------------------- --------------------- - --------------------- Operating Revenues $7,630,103 $ 8,969,323 $12,515,296 $13,464,627 Cost and Expense Operating Expenses 6,445,749 7,745,754 10,813,512 11,708,782 Interest Expense 219,375 219,988 405,675 466,197 Federal Income Tax 324,227 424,495 411,789 507,950 Other Deductions Net 577 1,633 1,214 3,576 ------------- ------------------ - ---------------- --------------- Total Costs and Expenses 6,989,928 8,391,870 11,677,190 12,686,505 ------------- ------------- - --------------- -------------- Operating Income 640,175 577,453 838,106 778,122 Other Income 100 89,259 888 102,935 Corning Natural Gas Appliance Corp.: Operating Revenues 562,171 541,005 1,254,792 1,146,524 Depreciation 60,754 58,251 122,217 116,693 Other Operating Expense 426,734 383,771 929,822 789,848 Federal Income Tax 25,132 44,917 72,160 88,574 ------------ --------------- - --------------- -------------- Net Income of Appliance Corp. 49,551 54,066 130,593 151,409 ----------- - -------------- --------------- -------------- Net Income $ 689,826 $ 720,778 $ 969,587 $ 1,032,466 ========== ========= ========= ========== Earnings Per Share $ 1.50 $ 1.567 $ 2.108 $ 2.244 Dividends Per Share $ .32 $ .315 $ .64 $ .63 Total Dividends Paid $ 147,200 $ 144,900 $ 294,400 $ 289,801 Shares of common stock outstanding were 460,000 at March 31, 1997 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 MARCH 31, 1997 MARCH 31, 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 969,587 $ 720,778 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 360,049 179,535 Allowance for Funds Used During Const. 0 0 Changes in Assets and Liabilities: (Increase) Decrease in: Accounts Receivable (1,361,094) (1,561,916) Materials, Supplies & Appliance Inventory 724,573 674,721 Other Deferred Charges 984,555 1,795,752 Prepaid and Other Assets 306,636 92,325 Increase (Decrease) in: Accounts Payable 270,285 (288,515) Accrued General Taxes 53,765 195,310 Accrued Federal Income Tax 312,023 316,281 Deferred Federal Income Tax (25,682) (174,492) Other Liabilities and Deferred Credits (693,603) ( 64,198) Net Cash Provided (used) by Operating Activities 1,901,094 1,885,581 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (462,461) (157,934) Allowance for Funds Used During Const. 0 0 Net Cash Used in Investing Activities (462,261) (157,934) CASH FLOWS FROM FINANCING ACTIVITIES: Net Borrowings (Repayments) Under Line-of-Credit Agreement 125,000 1,515,000 Dividends Paid (294,400) (144,900) Repayment of Long-Term Debt (100,000) 0 Restricted Funds used for Qualified Additions 0 0 Common Stock Issued 0 0 Net Cash Provided (used in) Financing Activities (519,400) (1,659,900) NET INC. (DEC.) IN CASH AND CASH EQUIV. 919,433 67,747 CASH AND CASH EQUIV. AT BEG. OF PERIOD 180,595 405,806 CASH AND CASH EQUIV. AT END OF PERIOD $ 1,100,028 $ 473,553 ======== ========= Supplemental Disclosures of Cash Flow Information: Cash paid During the Year for: Interest (Net of Amount Capitalized) $ 440,027 $ 144,580 Income Taxes $ 86,000 $ 253,126 CORNING NATURAL GAS CORPORATION Consolidated Balance Sheet At March 31, 1997 Form 10-QSB Unaudited Assets 03/31/97 09/30/96 Gas Utility Plant $19,993,380$19,616,872 Non-Utility-Principally Rented Gas App. 2,512,087 2,451,396 22,445,467 22,068,268 Less: Accum. Provision for Depreciation (8,178,131) (7,846,128) $14,267,336 $14,222,140 Current Assets: Cash and Equivalents 1,100,028 180,595 Restricted Short-Term Investments 0 0 Accounts Receivable 2,150,771 789,677 Materials, Supplies and Inventories 1,275,556 2,000,129 Prepayments and Other 567,012 873,648 Total Current Assets 5,093,367 3,844,049 Non-Current Assets Def. Tax Assets 588,868 257,000 Def. Debits - Acctg. for Income Taxes 670,466 1 ,016,661 Deferred Debits 233,157 1,217,712 Total Non-Current Assets 1,492,491 2,491,373 Total Assets $20,853,194 $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 2,869,569 2,194,382 5,822,915 5,147,728 Long Term Debt 6,200,000 6,300,000 Total Capitalization 12,022,915 11,447,728 Current Liabilities: Short Term Notes Payable 2,600,000 2,725,000 Accounts Payable 1,416,475 1,146,190 Customer Deposits and Accrued Interest 220,422 735,398 Accrued Federal Income Tax 312,023 0 Other Accrued Taxes 195,363 141,598 Current Maturities of Long Term Debt 100,000 100,000 Other Current and Accrued Liabilities 418,548 884,710 Total Current Liabilities 5,262,831 5,732,896 Accumulated Deferred FIT 2,577,204 2,617,213 Reserves and Other Liabilities 990,244 759,725 Total Liab. and Capitalization $ 20,853,194 $ 20,557,562 ========== ========== See Management's Discussion & Analysis on Page 5 EX-27 2
UT 3-MOS 3-MOS 12-MOS 12-MOS SEP-30-1997 SEP-30-1996 SEP-30-1997 SEP-30-1996 MAR-31-1997 MAR-31-1996 MAR-31-1997 SEP-30-1996 PER-BOOK PER-BOOK PER-BOOK PER-BOOK 0 0 13175808 13140883 0 0 1091528 1081257 0 0 5093367 3844049 0 0 1492491 2491373 0 0 0 0 0 0 20853194 20557562 0 0 2300000 2300000 0 0 653346 653346 0 0 2869569 2194382 0 0 5822915 5147728 0 0 0 0 0 0 0 0 0 0 6200000 6300000 0 0 2600000 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 6130279 6284834 0 0 20853194 20557562 7630103 8969323 0 0 324227 424495 0 0 6446326 7747387 0 0 6770553 8171882 0 0 859550 797441 0 0 49651 143325 0 0 909201 940766 0 0 219375 219988 0 0 689826 720778 0 0 0 0 0 0 689826 720778 0 0 147200 144900 0 0 143259 145758 0 0 1901094 1885581 0 0 1.50 1.57 0 0 0 0 0 0
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