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.

News provided by

Gas Natural Inc.

Aug 16, 2010, 06:39 ET

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:
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 Consolidated Statements of Income (unaudited)
	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 Consolidated Segment Statements of Operations (unaudited)
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 Consolidated Segment Statements of Operations (unaudited)
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 Consolidated Balance Sheets (unaudited)
		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 Consolidated Balance Sheets (unaudited) Continued
	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 Consolidated Statements of Cash Flows (unaudited)

	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.