-----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, S+V0AFQuVPYUIe3/Gf8YsGWxmdjDIPh3SGqOqKHv3MWv7xT4VqhvgH58uG3enZi1 xqgUvgYPgnIEIL5FoosoFw== 0000024751-97-000005.txt : 19970806 0000024751-97-000005.hdr.sgml : 19970806 ACCESSION NUMBER: 0000024751-97-000005 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970805 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/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-00643 FILM NUMBER: 97651760 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/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB/A AMMENDED QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended June 30, 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 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 June 30, 1997 were $2,113,780 or 129% more than the quarter ending September 30, 1996 and $630,451 or 14% less than the quarter ending June 30, 1996. Degree days for the quarter ending June 30, 1997 were 1,004 or 1,731% more than the quarter ending September 30, 1996 and 73 or 7% more than the quarter ending June 30, 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) Actual MCF From Quarter Ending Deliveries 06/30/97 Quarter Ending 06/30/97 1,490,737 Quarter Ending 09/30/96 876,534 (614,203) Quarter Ending 06/30/96 1,545,045 54,308 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 $2,183,583 or 153% more than the quarter ending September 30, 1996 and $548,860 or 13% less than the quarter ending June 30, 1996. Net Income was $251,951 more than the quarter ended September 30, 1996 and $84,515 less than the quarter ending June 30, 1996. Since the Company's business is seasonal by quarters, results for the first nine 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 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 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 form 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 June 30, 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 June 30, 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 NAATURAL GAS CORPORATION Date July 28, 1997 THOMAS K. BARRY Thomas K. Barry, Chairman of the Board, President and C.E.O. Date July 28, 1997 GARY K. EARLEY Gary K. Earley, Treasurer CORNING NATURAL GAS CORPORATION CONSOLIDATED STATEMENT OF INCOME UNAUDITED FORM 10 QSB FOR QUARTER ENDED NINE MONTHS ENDED 06/30/97 06/30/96 06/30/97 06/30/96 Operating Revenues $3,756,539 $4,386,990 $16,271,835 $17,851,617 Cost and Expense Operating Expense 3,612,447 4,161,307 14,425,959 15,870,089 Interest Expense 201,039 187,664 651,714 653,861 Income Tax 915 26,218 412,704 534,168 Other Deductions 218 1,029 1,432 4,605 Total 3,814,619 4,376,218 15,491,809 17,062,723 Operating Income (58,080) 10,722 780,026 788,894 Other Income 100 2,884 988 105,819 Corning Natural Gas Appliance Corp.: Operating Revenues 428,209 494,754 1,683,001 1,641,278 Depreciation 58,462 58,328 180,679 175,021 Other Op Expense 333,252 373,858 1,263,074 1,163,706 Federal Income Tax 13,493 26,687 85,653 115,261 Net Income Appl Corp. 23,002 35,881 153,595 187,290 Net Income $ (34,978) 49,537 943,609 976,184 Earnings Per Share $ (.08) .108 2.032 2.122 Dividends Per Share .32 .315 .96 .945 Total Dividends Paid 147,200 144,901 441,600 434,701 Shares of common stock outstanding were 460,000 at June 30, 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 JUNE 30, 1997 JUNE 30, 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 934,609 $ 770,316 Adjustments to Reconcile Net Income to Net Cas Provided by Operating Activities: Depreciation 538,450 355,929 Allowance for Funds Used During Const. 0 0 Changes in Assets and Liabilities: (Increase) Decrease in: Accounts Receivable ( 360,926) 231,495 Materials, Supplies & Appliance Inventory 559,030 (475,915) Other Deferred Charges 1,469,088 2,487,393 Prepaid and Other Assets 106,756 (124,741) Increase (Decrease) in: Accounts Payable 355,275 (222,258) Accrued General Taxes 74,455 208,596 Accrued Federal Income Tax 39,249 (84,484) Deferred Federal Income Tax (201,976) (390,942) Other Liabilities and Deferred Credits (872,813) ( 38,093) Net Cash Provided (used) by Operating Activities 2,641,197 2,717,296 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (621,769) (343,461) Allowance for Funds Used During Const. 0 0 Net Cash Used in Investing Activities (621,769) (343,461) CASH FLOWS FROM FINANCING ACTIVITIES: Net Borrowings (Repayments) Under Line-of-Credit Agreement (650,000) (1,980,000) Dividends Paid (441,600) (289,801) 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 (1,191,600) (2,269,801) NET INC. (DEC.) IN CASH AND CASH EQUIV. 827,828 104,034 CASH AND CASH EQUIV. AT BEG. OF PERIOD 180,595 405,806 CASH AND CASH EQUIV. AT END OF PERIOD $ 1,008,423 509,840 Supplemental Disclosures of Cash Flow Information: Cash paid During the Year for: Interest (Net of Amt Capitalized) $ 710,336 $ 387,974 Income Taxe $ 553,246 $ 865,063 CORNING NATURAL GAS CORPORATION Consolidated Balance Sheet At June 30, 1997 Form 10-QSB Unaudited Assets 06/30/97 09/30/96 Gas Utility Plant $20,132,084 $19,616,872 Non-Utility-Principally Rented Gas App. 2,519,440 2,451,396 22,651,524 22,068,268 Less: Prov for Depreciation (8,346,065) (7,846,128) $14,305,459 $14,222,140 Current Assets: Cash and Equivalents 1,008,423 180,595 Restricted Short-Term Investments 0 0 Accounts Receivable 1,150,603 789,677 Materials, Supplies and Inventories 1,441,099 2,000,129 Prepayments and Other 766,892 873,648 Total Current Assets 4,367,017 3,844,049 Non-Current Assets Def. Tax Assets 659,953 257,000 Def. Debits - Acctg. for Income Taxes 671,432 1,016,661 Deferred Debits (251,376) 1,217,712 Total Non-Current Assets 1,080,009 2,491,373 Total Assets $19,752,485 $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 2,687,391 2,194,382 5,640,737 5,147,728 Long Term Debt 6,200,000 6,300,000 Total Capitalization 11,840,737 11,447,728 Current Liabilities: Short Term Notes Payable 2,075,000 2,725,000 Accounts Payable 1,501,465 1,146,190 Customer Deposits and Accrued Interest 229,118 735,398 Accrued Federal Income Tax 39,249 0 Other Accrued Taxes 216,053 141,598 Current Maturities of Long Term Deb 100,000 100,000 Other Current and Accrued Liabilities 335,657 884,710 Total Current Liabilities 4,496,542 5,732,896 Accumulated Deferred FIT 2,472,961 2,617,213 Reserves and Other Liabilities 942,245 759,725 Total Liab. and Capitalization $ 19,752,485 $ 20,557,562 See Management's Discussion & Analysis on Page 5 EX-27 2
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