-----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, VJtQ4eHiTyWfCfZq3Ad8gpjfeR7CN5SpK9x5N8E8zgRT4BG1j+PPtiny8jeReyl6 FKthiNEV9M7KEVkrRMMT2Q== /in/edgar/work/20000814/0001104659-00-000468/0001104659-00-000468.txt : 20000921 0001104659-00-000468.hdr.sgml : 20000921 ACCESSION NUMBER: 0001104659-00-000468 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNING NATURAL GAS CORP CENTRAL INDEX KEY: 0000024751 STANDARD INDUSTRIAL CLASSIFICATION: [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: 698923 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 0001.txt QUARTERLY REPORT 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 JUNE 30, 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 (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) 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. 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 loss for the quarter ended June 30, 2000 was $65,187, compared to a loss of $89,276 in the same quarter the previous year. The Company typically experiences a third quarter loss, due to the seasonality of its gas utility business. Earnings from gas operations decreased $10,816 due to increased costs, particularly interest and wages. The Foodmart Plaza and Tax Center International produced earnings that met forecasted levels, contributing an additional $35,905 to consolidated net income. The Appliance Company experienced an increase in earnings of $5,642 due to a 9% increase in revenues. Earnings from Corning Realty Associates increased $16,982 due to implementation of some new policies and budgets. The Company has recently formed a mortgage banking company, Choice One Lending, which is still in the process of obtaining the necessary regulatory approvals. Hence, there have been no mortgages written or revenues generated to date. The Company has incurred some expenses, although insignificant at this point. Segment Overview: Information concerning the Company's 5 operating segments for the third 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 Corporation Center Realty Plaza Consolidated ------- ----------- ------ ------ ----- ------------ Revenue: 2000 3,350,548 549,323 102,994 1,268,473 70,500 5,341,838 1999 3,184,562 503,928 71,853 1,217,203 67,850 5,045,396 Net Income (Loss): 2000 (138,319) 37,862 25,673 (635) 10,232 (65,187) 1999 (127,503) 32,220 15,014 (17,617) 8,610 (89,276) Interest Income: 2000 352 25,025 485 --- --- 25,862 1999 359 16,844 --- --- --- 17,203 Interest Expense: 2000 270,211 7,571 282 36,657 22,427 337,148 1999 229,676 (179) 1,402 31,889 23,708 286,496 Identifiable Assets* 2000 21,034,895 3,262,784 227,440 2,051,620 1,212,094 27,788,833 1999 20,664,079 2,554,957 147,322 1,910,542 1,212,295 26,489,195 Depreciation and Amortization: 2000 118,839 7,612 2,891 48,415 7,789 235,546 1999 108,510 58,562 2,128 33,894 7,316 210,410 Income Tax Expense (Benefit): 2000 (41,793) 32,320 17,073 (423) 5,395 12,572 1999 (2,712) 28,358 9,987 (13,522) 7,597 29,708
*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 of 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 quarter ending June 30, 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 August 11, 2000 /s/ THOMAS K. BARRY --------------------- --------------- Thomas K. Barry, Chairman of the Board, President and C.E.O. Date August 11, 2000 /s/ GARY K. EARLEY --------------------- --------------- Gary K. Earley, Treasurer CORNING NATURAL GAS CORPORATION Condensed Consolidated Balance Sheets Form 10-QSB
June 30, 2000 September 30, 1999 --------------- ------------------- Assets Property, plant and equipment, at original cost: Utility $ 22,071,532 $ 21,667,115 Non-Utility-principally rented appl and plaza property 4,286,024 3,941,231 ---------------- --------------- 26,357,556 25,608,346 Less accumulated depreciation (9,581,177) (9,113,046) ---------------- --------------- 16,776,379 16,495,300 ---------------- --------------- Current assets: Cash 293,329 205,787 Marketable securities available for sale, at fair value 1,289,661 1,021,696 Accounts receivable, less allowance for uncollectibles 1,502,506 1,883,915 Gas stored underground, at average cost 1,046,785 134,650 Gas and appliance inventories 616,506 634,348 Prepaid income taxes 80,616 340,328 Deferred income tax assets 11,000 11,000 Prepaid expenses 508,808 402,883 ---------------- --------------- 5,349,211 4,634,607 ---------------- --------------- Deferred charges: Prepaid pension & other 1,621,552 1,380,984 Regulatory assets 0 196,707 Deferred debits-accounting for income taxes 1,016,661 1,016,661 Unrecovered gas costs 401,713 0 ---------------- --------------- 3,039,926 2,594,352 Goodwill, net of amortization 1,763,851 1,851,625 Long-term debt issuance costs 355,148 371,317 Other assets 504,318 541,994 ---------------- --------------- $ 27,788,833 $ 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 160,003 64,883 Retained earnings 2,360,445 2,093,937 ---------------- --------------- 5,473,794 5,112,166 Long-term debt, less current installments 10,888,656 11,223,256 ---------------- --------------- Total Capitalization 16,362,450 16,335,422 ================ =============== Current liabilities: Borrowings under lines-of-credit 2,756,947 2,165,000 Accounts payable 1,913,439 1,404,370 Dividends payable 149,500 149,500 Current installments of long-term debt 202,774 202,774 Customers' deposits and accrued interest 343,760 665,990 Accrued general taxes 194,181 94,441 Supplier refunds due customers 289,771 268,862 Accrued expenses 790,720 668,224 ---------------- --------------- Total current liabilities 6,641,092 5,619,161 ---------------- --------------- Deferred credits: Deferred income tax liabilities 2,501,006 2,413,080 Deferred compensation, post-retirement benefits, and other 1,519,142 1,519,142 Other 765,143 602,390 ---------------- --------------- 4,785,291 4,534,612 ---------------- --------------- $ 27,788,833 $ 26,489,195 ================ ==============
CORNING NATURAL GAS CORPORATION Condensed Consolidated Statements of Income Unaudited Form 10 QSB
Quarter Ended Nine Months Ended ------------- ----------------- June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999 ------------- ------------- ------------- ------------- Utility Operating Revenues $ 3,350,548 $ 3,184,562 $ 14,668,666 $ 14,833,765 ------------------- ------------------- ------------------ ------------------ Cost and Expense Operating Expenses 3,267,838 3,102,033 13,129,784 13,359,010 Interest Expense 264,382 227,921 816,167 726,873 Income Tax (41,793) 104 292,651 266,975 Other Deductions, Net 5,830 1,755 8,052 2,741 ------------------- ------------------- ------------------ ------------------ Total Costs and Expenses 3,496,257 3,331,813 14,246,654 14,355,599 Utility Operating Income (145,709) (147,251) 422,012 478,166 ------------------- ------------------- ------------------ ------------------ Other Income 7,390 19,748 13,189 12,036 ------------------- ------------------- ------------------ ------------------ Corning Natural Gas Appliance Corporation Operating Revenues 549,325 506,928 1,932,505 1,658,841 Depreciation 57,616 58,563 179,099 176,034 Operating Expense 428,810 396,794 1,463,793 1,294,725 Federal Income Tax 25,037 19,351 104,983 69,100 Equity in Earnings of Assoc. Cos. 35,270 6,007 22,099 (46,290) ------------------- ------------------- ------------------ ------------------ Net Income of Appl. Corp 73,132 38,227 206,729 72,692 ------------------- ------------------- ------------------ ------------------ Net Income $ (65,187) $ (89,276) $ 641,930 $ 562,894 =================== =================== ================== ================== Earnings Per Share- Basic & diluted $ (0.142) $ (0.194) $ 1.396 $ 1.224 Dividends Per Share $ 0.650 $ 0.650 $ 0.975 $ 1.300 Dividends Declared $ 299,000 $ 299,000 $ 448,500 $ 598,000
Shares of common stock outstanding were 460,000 at June 30, 2000. 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. CORNING NATURAL GAS CORPORATION Statement of Comprehensive Income Unaudited Form 10 QSB
Quarter Ended Nine Months Ended June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999 ----------------- ------------------ ----------------- ----------------- Net Income (loss) $ (65,187) $ (89,276) $ 641,930 $ 562,893 Other comprehensive income, net of tax: Unrealized gains on securities: 14,769 2,588 95,121 77,586 ----------------- ------------------ ----------------- ----------------- Comprehensive Income $ (50,418) $ (86,688) $ 737,051 $ 640,479 ================= ================== ================= =================
CORNING NATURAL GAS CORPORATION Condensed Consolidated Statements of Cash Flows For Nine Month Ended June 30, 2000 Form 10-QSB
June 30, 2000 June 30, 1999 ------------- ------------- Cash flows from operating activities: Net Income $ 641,930 562,893 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 704,819 643,219 (Gain)loss on Sale of marketable securities (30,489) 18,237 Changes in assets and liabilities: (Increase)decrease in: Accounts Receivable 381,409 (102,883) Gas stored underground (912,135) 743,345 Gas and appliance inventories 17,842 10,081 Prepaid expenses (105,925) (111,376) Unrecovered gas costs (401,713) 191,819 Prepaid income taxes 259,712 55,534 Deferred charges-pension and other (240,568) 590,474 Other assets 37,676 (1,372) (Increase)decrease in: Accounts payable 509,069 206,586 Accrued general taxes 99,740 112,630 Supplier refunds due customers 20,909 (70,731) Deferred income taxes 87,926 (486,447) Other liabilities and deferred credits 86,101 579,391 --------------------- ---------------------- Net cash provided by operating activities 1,156,303 2,941,400 Cash flows from investing activities: Purchase of securities available for sale, net 0 (74,033) Acquisitions of businesses, net of cash acquired 0 (468,334) Capital expenditures, net of minor disposals (877,608) (1,049,018) --------------------- ---------------------- Net cash used in investing activities (877,608) (1,591,385) Cash flows from financing activities: Net borrowings(repayments) under line-of-credit agreements 591,947 (1,145,000) Dividends paid (448,500) (598,000) Borrowings(repayments) under long-term debt agreements (334,600) 368,524 --------------------- ---------------------- Net cash provided by (used in) financing activities (191,153) (1,374,476) Net increase in cash 87,542 (24,461) Cash at beginning of period 205,787 284,426 --------------------- ---------------------- Cash at end of period $ 293,329 259,965 --------------------- ---------------------- Supplemental disclosures of cash flow information: Cash paid during period for: Interest $ 337,148 857,131 Income taxes 231,500 221,357 Non cash investing and financing activities: Acquisition of business financed by seller $ 0 1,056,666
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