Gas Natural Inc. Reports 2010 Second Quarter Net Income of $0.5 Million
- Expansion with Ohio acquisition and strategic focus on natural gas distribution led to Company name change from Energy, Inc. to Gas Natural Inc. Shareholders approved reincorporation from Montana to Ohio
- Warmer than normal spring months, increased tax expense and corporate expense adjustments at Ohio companies, and impact of additional shares outstanding due to recent acquisitions resulted in second quarter 2010 diluted earnings per share of $0.08 versus $0.16 in the prior year second quarter
- First half 2010 net income increased 56% on continued growth in the Company's Maine and North Carolina operations as well as contribution from acquisitions
- Board of Directors declared a monthly dividend of $0.045 per share to shareholders of record as of August 13, 2010. The dividend will be payable on August 31, 2010.
GREAT FALLS, Mont., Aug. 16 /PRNewswire-FirstCall/ -- Gas Natural Inc. (NYSE Amex: EGAS) (the "Company" or "Gas Natural"), a natural gas utility company serving approximately 62,000 customers in six states, today reported financial results for the second quarter ended June 30, 2010. Reported results include the January 5, 2010 acquisitions of three Ohio-based gas utilities, Orwell Natural Gas Company, Northeast Ohio Natural Gas Corp. and Brainard Gas Corp., which increased total customers by approximately 23,000, or more than 50%. Also included are the results of Cut Bank Gas in Montana, a small operation acquired in November 2009.
Second Quarter and First Half 2010 Consolidated Financial Results
Consolidated net income for the second quarter was $0.5 million, or $0.08 per diluted share, compared with net income of $0.7 million, or $0.16 per diluted share, for the same period in 2009. The decrease was primarily due to a net loss of $0.5 million from the operations of the acquired Ohio Companies, partially offset by continued earnings growth from the Company's other natural gas operations, specifically Maine and North Carolina. The reduction in second quarter earnings in Ohio was from warmer than normal weather, adjustments in corporate overhead allocation, and an increase in tax expense. For the six months ended June 30, 2010, net income, which included $0.9 million from the operations of the Ohio Companies, increased $1.5 million, or 55.9%, to $4.1 million compared with the same period in 2009. On a per diluted share basis, net income was $0.68 for the first half of 2010 compared with $0.62 in the corresponding period of 2009.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "Our second quarter results, although positive, were dampened by warmer than normal weather during the spring months in Ohio, reallocation of corporate overhead costs, and an increase in other taxes in Ohio. We expect those operations to improve as we complete the integration and implement the operational efficiencies that provide strong results in our other natural gas distribution businesses. The growth and earnings power we are realizing from our operations in both Maine and North Carolina demonstrate our ability to execute successful utility acquisitions."
On July 9, 2010, the Company completed its reincorporation from Montana to Ohio and changed its name from Energy, Inc. to Gas Natural Inc. Mr. Osborne noted, "We believe this change further enhances our ability to operate and grow the Company as we look to expand our utility asset base in Maine and North Carolina, as well as through strategic acquisitions. In conjunction with the reincorporation, we changed our name to better reflect our focus on natural gas distribution."
Natural Gas Operations Segment
Gas Natural Inc. annually distributes approximately 29 billion cubic feet of natural gas to approximately 62,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine and North Carolina. The Company acquired its Maine and North Carolina operations in 2007, added Cut Bank Gas in Montana in November 2009, and most recently, closed the acquisition of its Ohio and Pennsylvania operations on January 5, 2010.
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||
2010 |
2009 |
2010 |
2009 |
|||||||
Natural Gas Operations |
||||||||||
Operating revenue |
$14,682,109 |
$9,544,306 |
$46,188,269 |
$35,685,876 |
||||||
Gas purchased |
7,919,762 |
5,029,479 |
27,540,576 |
24,464,331 |
||||||
Gross margin |
6,762,347 |
4,514,827 |
18,647,693 |
11,221,545 |
||||||
Operating expenses |
6,129,748 |
3,507,064 |
12,086,604 |
7,444,976 |
||||||
Operating income |
632,599 |
1,007,763 |
6,561,089 |
3,776,569 |
||||||
Other income |
303,306 |
142,488 |
476,197 |
161,821 |
||||||
Income before interest and taxes |
935,905 |
1,150,251 |
7,037,286 |
3,938,390 |
||||||
Interest (expense) |
(509,343) |
(252,824) |
(1,077,629) |
(540,171) |
||||||
Income before income taxes |
426,562 |
897,427 |
5,959,657 |
3,398,219 |
||||||
Income tax (expense) |
(178,583) |
(338,783) |
(1,980,383) |
(1,300,742) |
||||||
Net income |
$247,979 |
$558,644 |
$3,979,274 |
$2,097,477 |
||||||
The Natural Gas Operations segment contributed net income of $0.25 million in the 2010 second quarter compared with $0.56 million for the same quarter of 2009. As previously noted, the Ohio operations reported a net loss of $0.5 million in the second quarter of 2010, which more than offset the continued earnings growth the Company experienced in its organic operations. For the six months ended June 30, 2010, the Natural Gas Operations segment net income increased 90% to $4.0 million, from $2.1 million for the first half of 2009. The Company's North Carolina and Maine operations accounted for the majority of the $0.95 million increase from organic operations, while the remaining was from the acquisitions, primarily in Ohio.
Operating income was $0.63 million, or 9.4% of gross margin, compared with $1.01 million, or 22.3% of gross margin, in the second quarter of 2009. The decline was due to the acquired operating expenses from the Ohio companies which more than offset the added gross margin contribution from those businesses. Operating income as a percent of gross margin expanded 1.5% in the first six months of 2010 compared with the same period in 2009 as the Ohio acquisitions contributed to the gain as well as improved performance at the Company's organic operations.
The increase in interest expense during the second quarter and first half of 2010 was a direct result of the added debt acquired with the Ohio companies.
Marketing and Production Segment
The Marketing and Production segment had net income of $0.11 million compared with net income of $0.27 million for the same quarter of 2009 due to lower volume. For the six months ended June 30, 2010, net income for the segment was essentially breakeven, a direct reflection of a jury award in April 2010 of $0.52 million in litigation relating to a gas supply contract that expired in October of 2008. Marketing and Production segment net income for the first half of 2009 was $0.69 million. Operationally, results in this segment were negatively impacted versus 2009 by a reduction in the basis differential between AECO and CIG pricing.
Pipeline Operations Segment
The Pipeline Operations segment contributed net income of $24,485 and $60,720 in the second quarter and first six months of 2010, respectively, compared with net income of $43,218 and $72,726 in the second quarter and first half of 2009, respectively. Net income was impacted by increased expenses for professional services in our Shoshone pipeline operation.
Balance Sheet and Cash Management
The Company's cash and marketable securities position was $7.3 million at the end of the second quarter of 2010, flat with the sequential first quarter, but up $0.9 million, or 14.4% from the end of the second quarter of 2009. Cash provided by operating activities was $9.7 million in the first six months of 2010 compared with $19.8 million in the same period the prior year. The change in cash from operations was principally due to a $5.4 million increase in the amount paid for gas inventory and a $4.8 million decrease in collections of recoverable costs of gas due to timing.
Capital expenditures for the second quarter and first half of 2010 were $0.9 million and $2.2 million, respectively, compared with $2.0 million and $3.9 million in the corresponding periods of 2009. Capital spending was focused on the acquired Ohio companies as well as expanding operations in its growth oriented utilities of Maine and North Carolina.
The Company sold $2.4 million in marketable securities during the first half of 2010 taking advantage of market conditions at the time and establishing a more liquid position.
In addition to cash and marketable securities, the Company maintains three credit facilities totaling $23.6 million with approximately $10.1 million of availability as of the end of the second quarter of 2010.
About Gas Natural Inc.
Gas Natural Inc. distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 29 billion cubic feet of natural gas to approximately 62,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine and North Carolina. The Company markets approximately 2.4 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming on an unregulated basis. The Company also has ownership interests in 160 natural gas producing wells and gas gathering assets. In addition, the Company owns the Shoshone interstate and the Glacier gathering pipelines located in Montana and Wyoming. The Company's Montana public utility was originally incorporated in 1909 and is headquartered in Great Falls, Montana.
The Company's toll-free number is 800-570-5688. The Company's address is 1 First Avenue South, Great Falls, Montana 59401 and its website is www.ewst.com.
Safe Harbor Regarding Forward-Looking Statements
The Company is including the following cautionary statement in this release to make applicable and to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, Gas Natural Inc. Forward-looking statements are all statements other than statements of historical fact, including, without limitation, those that are identified by the use of the words "anticipates," "estimates," "expects," "intends," "plans," "predicts," "believes" and similar expressions. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed. Factors that may affect forward-looking statements and the Company's business generally include but are not limited to the Company's ability to successfully integrate the operations of the companies it has recently acquired and consummate additional acquisitions, the Company's continued ability to make dividend payments, the Company's ability to implement its business plan, fluctuating energy commodity prices, the possibility that regulators may not permit the Company to pass through all of its increased costs to its customers, changes in the utility regulatory environment, wholesale and retail competition, the Company's ability to satisfy its debt obligations, including compliance with financial covenants, weather conditions, litigation risks, and various other matters, many of which are beyond the Company's control, the risk factors and cautionary statements made in the Company's public filings with the Securities and Exchange Commission, and other factors that the Company is currently unable to identify or quantify, but may exist in the future. Gas Natural Inc. expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Gas Natural Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
For more information contact: |
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Gas Natural Inc. |
Investor Relations: Kei Advisors LLC |
|
Glenn Hemminger, Director of Finance |
Deborah K. Pawlowski, Chairman & CEO |
|
Phone: (440) 974-3770 |
Phone: (716) 843-3908 |
|
Email: [email protected] |
Email: [email protected] |
|
FINANCIAL TABLES FOLLOW |
|||||||||
Gas Natural Inc. and Subsidiaries |
|||||||||
Three Months Ended |
Six Months Ended |
||||||||
June 30, |
June 30, |
||||||||
2010 |
2009 |
2010 |
2009 |
||||||
REVENUES: |
|||||||||
Natural gas operations |
$ 14,682,109 |
$ 9,544,306 |
$ 46,188,269 |
$ 35,685,876 |
|||||
Gas—wholesale |
1,868,009 |
2,582,758 |
4,986,332 |
7,662,345 |
|||||
Pipeline operations |
106,355 |
111,401 |
214,957 |
224,067 |
|||||
Total revenues |
16,656,473 |
12,238,465 |
51,389,558 |
43,572,288 |
|||||
COST OF SALES: |
|||||||||
Gas purchased |
7,919,762 |
5,029,479 |
27,540,576 |
24,464,331 |
|||||
Gas—wholesale |
1,462,808 |
1,960,833 |
4,054,219 |
6,085,727 |
|||||
Total cost of sales |
9,382,570 |
6,990,312 |
31,594,795 |
30,550,058 |
|||||
GROSS MARGIN |
7,273,903 |
5,248,153 |
19,794,763 |
13,022,230 |
|||||
EXPENSES: |
|||||||||
Distribution, general, and administrative |
4,374,029 |
2,525,331 |
8,289,471 |
5,420,885 |
|||||
Maintenance |
245,153 |
185,183 |
536,482 |
356,590 |
|||||
Depreciation and amortization |
1,035,029 |
531,471 |
2,003,058 |
1,045,145 |
|||||
Taxes other than income |
752,952 |
482,686 |
1,759,235 |
1,112,266 |
|||||
Total expenses |
6,407,163 |
3,724,671 |
12,588,246 |
7,934,886 |
|||||
OPERATING INCOME |
866,740 |
1,523,482 |
7,206,517 |
5,087,344 |
|||||
OTHER INCOME (LOSS) |
348,228 |
(84,939) |
96,813 |
(109,918) |
|||||
INTEREST EXPENSE |
(528,972) |
(252,399) |
(1,121,756) |
(598,351) |
|||||
INCOME FROM OPERATIONS BEFORE |
|||||||||
INCOME TAX EXPENSE |
685,996 |
1,186,144 |
6,181,574 |
4,379,075 |
|||||
INCOME TAX EXPENSE |
(220,214) |
(500,059) |
(2,052,850) |
(1,730,267) |
|||||
NET INCOME |
$ 465,782 |
$ 686,085 |
$ 4,128,724 |
$ 2,648,808 |
|||||
BASIC INCOME PER COMMON SHARE: |
|||||||||
Income from operations |
$ 0.08 |
$ 0.16 |
$ 0.68 |
$ 0.62 |
|||||
DILUTED INCOME PER COMMON SHARE: |
|||||||||
Income from operations |
$ 0.08 |
$ 0.16 |
$ 0.68 |
$ 0.62 |
|||||
DIVIDENDS DECLARED PER COMMON |
$ 0.13 |
$ 0.14 |
$ 0.27 |
$ 0.26 |
|||||
SHARE: |
|||||||||
WEIGHTED AVERAGE COMMON SHARES |
|||||||||
OUTSTANDING: |
|||||||||
Basic |
6,071,538 |
4,300,239 |
6,071,538 |
4,299,174 |
|||||
Diluted |
6,080,617 |
4,303,121 |
6,079,527 |
4,302,036 |
|||||
Please refer to the notes as filed on form 10-Q that are an integral part of these condensed consolidated financial statements. |
|||||||||
Gas Natural Inc. and Subsidiaries |
||||||||||||
Three Months Ended June 30, 2010 |
||||||||||||
Marketing |
||||||||||||
Natural Gas |
and |
Pipeline |
Corporate |
|||||||||
Operations |
Production |
Operations |
and Other |
Eliminations |
Consolidated |
|||||||
OPERATING REVENUES: |
||||||||||||
Natural gas operations |
$ 14,760,696 |
$ - |
$ - |
$ - |
$ (78,587) |
$ 14,682,109 |
||||||
Marketing and Production |
- |
3,704,869 |
- |
- |
(1,836,860) |
1,868,009 |
||||||
Pipeline operations |
- |
- |
106,355 |
- |
- |
106,355 |
||||||
Total operating revenue |
14,760,696 |
3,704,869 |
106,355 |
- |
(1,915,447) |
16,656,473 |
||||||
COST OF SALES: |
||||||||||||
Gas purchased |
7,998,349 |
- |
- |
- |
(78,587) |
7,919,762 |
||||||
Gas - wholesale |
- |
3,299,668 |
- |
- |
(1,836,860) |
1,462,808 |
||||||
Total Cost of Sales |
7,998,349 |
3,299,668 |
- |
- |
(1,915,447) |
9,382,570 |
||||||
GROSS MARGIN |
$ 6,762,347 |
$ 405,201 |
$ 106,355 |
$ - |
$ - |
$ 7,273,903 |
||||||
OPERATING INCOME: |
$ 632,599 |
$ 207,305 |
$ 35,679 |
$ (8,843) |
$ - |
$ 866,740 |
||||||
NET INCOME |
$ 247,979 |
$ 113,145 |
$ 24,485 |
$ 80,173 |
$ - |
$ 465,782 |
||||||
Total Assets |
$ 106,348,208 |
$ 4,737,608 |
$ 755,112 |
$ 58,037,889 |
$(51,845,781) |
$ 118,033,036 |
||||||
Goodwill |
$ 13,813,626 |
$ - |
$ - |
$ - |
$ - |
$ 13,813,626 |
||||||
Three Months Ended June 30, 2009 |
||||||||||||
Marketing |
||||||||||||
Natural Gas |
and |
Pipeline |
Corporate |
|||||||||
Operations |
Production |
Operations |
and Other |
Eliminations |
Consolidated |
|||||||
OPERATING REVENUES: |
||||||||||||
Natural gas operations |
$ 9,673,807 |
$ - |
$ - |
$ - |
$ (129,501) |
$ 9,544,306 |
||||||
Marketing and Production |
- |
3,747,988 |
- |
- |
(1,165,230) |
2,582,758 |
||||||
Pipeline operations |
- |
- |
111,401 |
- |
- |
111,401 |
||||||
Total operating revenue |
9,673,807 |
3,747,988 |
111,401 |
- |
(1,294,731) |
12,238,465 |
||||||
COST OF SALES: |
||||||||||||
Gas purchased |
5,158,980 |
- |
- |
- |
(129,501) |
5,029,479 |
||||||
Gas - wholesale |
- |
3,126,063 |
- |
- |
(1,165,230) |
1,960,833 |
||||||
Total Cost of Sales |
5,158,980 |
3,126,063 |
- |
- |
(1,294,731) |
6,990,312 |
||||||
GROSS MARGIN |
$ 4,514,827 |
$ 621,925 |
$ 111,401 |
$ - |
$ - |
$ 5,248,153 |
||||||
OPERATING INCOME: |
$ 1,007,763 |
$ 442,485 |
$ 73,234 |
$ - |
$ - |
$ 1,523,482 |
||||||
NET INCOME |
$ 558,644 |
$ 266,265 |
$ 43,218 |
$ (182,042) |
$ - |
$ 686,085 |
||||||
Total Assets |
$ 48,962,186 |
$ 4,817,916 |
$ 707,757 |
$ 29,283,317 |
$(21,522,186) |
$ 62,248,990 |
||||||
Goodwill |
$ - |
$ - |
$ - |
$ - |
$ - |
$ - |
||||||
Gas Natural Inc. and Subsidiaries |
||||||||||||
Six Months Ended June 30, 2010 |
||||||||||||
Marketing |
||||||||||||
Natural Gas |
and |
Pipeline |
Corporate |
|||||||||
Operations |
Production |
Operations |
and Other |
Eliminations |
Consolidated |
|||||||
OPERATING REVENUES: |
||||||||||||
Natural gas operations |
$ 46,345,465 |
$ - |
$ - |
$ - |
$ (157,196) |
$ 46,188,269 |
||||||
Marketing and Production |
- |
9,188,180 |
- |
- |
(4,201,848) |
4,986,332 |
||||||
Pipeline operations |
- |
- |
214,957 |
- |
- |
214,957 |
||||||
Total operating revenue |
46,345,465 |
9,188,180 |
214,957 |
- |
(4,359,044) |
51,389,558 |
||||||
COST OF SALES: |
||||||||||||
Gas purchased |
27,697,772 |
- |
- |
- |
(157,196) |
27,540,576 |
||||||
Gas - wholesale |
- |
8,256,067 |
- |
- |
(4,201,848) |
4,054,219 |
||||||
Total Cost of Sales |
27,697,772 |
8,256,067 |
- |
- |
(4,359,044) |
31,594,795 |
||||||
GROSS MARGIN |
$ 18,647,693 |
$ 932,113 |
$ 214,957 |
$ - |
$ - |
$ 19,794,763 |
||||||
OPERATING INCOME: |
$ 6,561,089 |
$ 557,461 |
$ 99,331 |
$ (11,364) |
$ - |
$ 7,206,517 |
||||||
NET INCOME |
$ 3,979,274 |
$ 34,195 |
$ 60,720 |
$ 54,535 |
$ - |
$ 4,128,724 |
||||||
Total Assets |
$ 106,348,208 |
$ 4,737,608 |
$ 755,112 |
$58,037,889 |
$(51,845,781) |
$ 118,033,036 |
||||||
Goodwill |
$ 13,813,626 |
$ - |
$ - |
$ - |
$ - |
$ 13,813,626 |
||||||
Six Months Ended June 30, 2009 |
||||||||||||
Marketing |
||||||||||||
Natural Gas |
and |
Pipeline |
Corporate |
|||||||||
Operations |
Production |
Operations |
and Other |
Eliminations |
Consolidated |
|||||||
OPERATING REVENUES: |
||||||||||||
Natural gas operations |
$ 36,056,899 |
$ - |
$ - |
$ - |
$ (371,023) |
$ 35,685,876 |
||||||
Marketing and Production |
- |
11,153,583 |
- |
- |
(3,491,238) |
7,662,345 |
||||||
Pipeline operations |
- |
- |
224,067 |
- |
- |
224,067 |
||||||
Total operating revenue |
36,056,899 |
11,153,583 |
224,067 |
- |
(3,862,261) |
43,572,288 |
||||||
COST OF SALES: |
||||||||||||
Gas purchased |
24,835,354 |
- |
- |
- |
(371,023) |
24,464,331 |
||||||
Gas - wholesale |
- |
9,576,965 |
- |
- |
(3,491,238) |
6,085,727 |
||||||
Total Cost of Sales |
24,835,354 |
9,576,965 |
- |
- |
(3,862,261) |
30,550,058 |
||||||
GROSS MARGIN |
$ 11,221,545 |
$ 1,576,618 |
$ 224,067 |
$ - |
$ - |
$ 13,022,230 |
||||||
OPERATING INCOME: |
$ 3,776,569 |
$ 1,186,673 |
$ 124,102 |
$ - |
$ - |
$ 5,087,344 |
||||||
NET INCOME |
$ 2,097,477 |
$ 689,180 |
$ 72,726 |
$ (210,575) |
$ - |
$ 2,648,808 |
||||||
Total Assets |
$ 48,962,186 |
$ 4,817,916 |
$ 707,757 |
$ 29,283,317 |
$(21,522,186) |
$ 62,248,990 |
||||||
Goodwill |
$ - |
$ - |
$ - |
$ - |
$ - |
$ - |
||||||
Gas Natural Inc. and Subsidiaries |
||||||||
June 30, |
December 31, |
|||||||
2010 |
2009 |
2009 |
||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash |
$ 5,238,165 |
$ 698,509 |
$ 2,752,168 |
|||||
Marketable securities |
2,082,792 |
5,702,732 |
4,411,171 |
|||||
Accounts and notes receivable |
||||||||
less $455,224, $191,990, and $233,332, respectively, |
||||||||
allowance for bad debt |
4,891,001 |
3,031,605 |
7,579,974 |
|||||
Accounts and notes receivable - related parties |
916,794 |
- |
- |
|||||
Unbilled gas |
1,352,227 |
825,951 |
2,869,826 |
|||||
Natural gas and propane inventories |
3,990,424 |
2,551,005 |
5,251,942 |
|||||
Materials and supplies |
1,542,027 |
1,111,688 |
1,018,673 |
|||||
Prepayments and other |
1,369,538 |
147,288 |
552,641 |
|||||
Income tax receivable |
217,068 |
- |
- |
|||||
Recoverable cost of gas purchases |
1,560,975 |
467,866 |
641,755 |
|||||
Deferred tax asset |
540,255 |
971,850 |
562,936 |
|||||
Total current assets |
23,701,266 |
15,508,494 |
25,641,086 |
|||||
Property, Plant and Equipment, Net |
71,721,232 |
37,761,796 |
41,203,668 |
|||||
Deferred Tax Assets - Long-Term |
4,864,987 |
5,272,114 |
7,550,970 |
|||||
Deferred Charges |
1,899,571 |
2,312,255 |
2,094,468 |
|||||
Other Investments |
809,637 |
1,311,208 |
784,363 |
|||||
Goodwill |
13,813,626 |
- |
1,056,771 |
|||||
Customer Relationships |
673,583 |
- |
- |
|||||
Note Receivable - Related Party |
50,531 |
- |
- |
|||||
Other Assets |
449,077 |
83,123 |
294,356 |
|||||
TOTAL ASSETS |
$ 117,983,510 |
$ 62,248,990 |
$ 78,625,682 |
|||||
Please refer to the notes as filed on form 10-Q that are an integral part of these condensed consolidated financial statements. |
||||||||
Gas Natural Inc. and Subsidiaries |
|||||||
June 30, |
December 31, |
||||||
2010 |
2009 |
2009 |
|||||
LIABILITIES AND CAPITALIZATION |
|||||||
Current Liabilities: |
|||||||
Checks issued in excess of amounts on deposit |
$ 604,300 |
$ 421,934 |
$ 663,777 |
||||
Accounts payable |
8,073,046 |
3,749,995 |
5,530,645 |
||||
Accounts payable - related parties |
294,187 |
- |
- |
||||
Line of credit |
13,548,337 |
3,600,000 |
14,651,265 |
||||
Notes payable |
5,117,266 |
- |
- |
||||
Notes payable - related parties |
1,704,346 |
- |
- |
||||
Accrued taxes |
89,298 |
300,408 |
534,710 |
||||
Accrued and other current liabilities |
6,773,430 |
3,939,497 |
4,594,883 |
||||
Overrecovered gas purchases |
1,049,578 |
2,205,472 |
1,452,580 |
||||
Total current liabilities |
37,253,788 |
14,217,306 |
27,427,860 |
||||
Other Obligations: |
|||||||
Deferred investment tax credits |
207,972 |
229,034 |
218,503 |
||||
Other long-term liabilities |
3,031,998 |
2,379,342 |
2,291,511 |
||||
Total |
3,239,970 |
2,608,376 |
2,510,014 |
||||
Long-Term Debt |
22,378,677 |
13,000,000 |
13,000,000 |
||||
Commitments and Contingencies (see note 12) |
|||||||
Stockholders' Equity: |
|||||||
Preferred stock; $.15 par value, 1,500,000 shares authorized, |
|||||||
no shares outstanding |
- |
- |
- |
||||
Common stock; $.15 par value, 15,000,000 shares authorized, |
|||||||
6,072,551, 4,354,785, and 4,361,869 shares outstanding |
|||||||
at June 30, 2010 and 2009, and December 31, 2009, |
|||||||
respectively |
910,883 |
653,218 |
654,280 |
||||
Treasury stock |
- |
(8,012) |
- |
||||
Capital in excess of par value |
23,376,994 |
5,975,868 |
6,514,851 |
||||
Capital in excess of par value - noncontrolling interest |
- |
- |
100,989 |
||||
Accumulated other comprehensive income |
62,706 |
454,491 |
146,701 |
||||
Retained earnings |
30,760,492 |
25,347,743 |
28,270,987 |
||||
Total stockholders' equity |
55,111,075 |
32,423,308 |
35,687,808 |
||||
TOTAL CAPITALIZATION |
77,489,752 |
45,423,308 |
48,687,808 |
||||
TOTAL LIABILITIES AND CAPITALIZATION |
$ 117,983,510 |
$ 62,248,990 |
$ 78,625,682 |
||||
Please refer to the notes as filed on form 10-Q that are an integral part of these condensed consolidated financial statements. |
|||||||
Gas Natural Inc. and Subsidiaries |
|||||
Six Months Ended |
|||||
June 30, |
|||||
2010 |
2009 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||
Net income |
$ 4,128,724 |
$ 2,648,808 |
|||
Adjustments to reconcile net income to |
|||||
net cash provided by operating activities: |
|||||
Depreciation, amortization, and accretion including |
|||||
deferred charges and financing costs |
1,961,239 |
1,231,030 |
|||
Stock-based compensation |
45,662 |
50,555 |
|||
Gain on sale of securities |
(109,144) |
- |
|||
Investment tax credit |
(10,531) |
(10,531) |
|||
Deferred income taxes |
492,520 |
195,822 |
|||
Changes in assets and liabilities: |
|||||
Accounts and notes receivable |
11,834,779 |
8,412,275 |
|||
Accounts and notes receivable - related parties |
(902,858) |
- |
|||
Natural gas and propane inventories |
1,893,096 |
7,340,796 |
|||
Accounts payable |
(3,483,758) |
(2,431,551) |
|||
Accounts payable - related parties |
185,880 |
- |
|||
Recoverable/refundable cost of gas purchases |
(2,030,733) |
2,756,033 |
|||
Prepayments and other |
(550,691) |
275,226 |
|||
Accrued interest - related parties |
77,653 |
- |
|||
Other assets & liabilities |
(3,844,084) |
(618,731) |
|||
Net cash provided by operating activities |
9,687,754 |
19,849,732 |
|||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
Construction expenditures |
(2,190,624) |
(3,923,127) |
|||
Sale/Purchase of marketable securities |
2,353,878 |
(1,068,727) |
|||
Purchase of Cut Bank shares |
(100,989) |
- |
|||
Purchase of Kidron investment |
(105,078) |
- |
|||
Cash acquired in acquisitions |
144,203 |
- |
|||
Other investments |
(19,220) |
(229,785) |
|||
Customer advances received for construction |
34,196 |
(55,359) |
|||
Increase from contributions in aid of construction |
19,837 |
65,139 |
|||
Net cash provided by (used in) investing activities |
136,203 |
(5,211,859) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
Repayments of long-term debt |
(436,886) |
- |
|||
Proceeds from lines of credit |
21,850,000 |
7,300,000 |
|||
Repayment of notes payable and lines of credit |
(26,552,098) |
(21,195,000) |
|||
Repayments of other short-term borrowings |
(559,910) |
- |
|||
Dividends paid |
(1,639,066) |
(1,109,893) |
|||
Net cash used in financing activities |
(7,337,960) |
(15,004,893) |
|||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
2,485,997 |
(367,020) |
|||
CASH AND CASH EQUIVALENTS: |
|||||
Beginning of period |
2,752,168 |
1,065,529 |
|||
End of period |
$ 5,238,165 |
$ 698,509 |
|||
Please refer to the notes as filed on form 10-Q that are an integral part of these condensed consolidated financial statements. |
|||||
SOURCE Gas Natural Inc.
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