Gas Natural Inc. Reports Second Quarter 2012 Results
- Natural Gas Operations earnings impacted by unseasonably warm weather
- Volumes in Maine and North Carolina continued to expand
MENTOR, Ohio, Aug. 14, 2012 /PRNewswire/ -- Gas Natural Inc. (NYSE MKT: EGAS) ("Gas Natural" or the "Company"), a natural gas utility company serving approximately 70,000 customers in seven states, reported financial results for the second quarter ended June 30, 2012.
Consolidated net loss for the second quarter of 2012 was $724,000, or $0.09 per diluted share, compared with net income of $360,000, or $0.04 per diluted share, for the second quarter of 2011. The decline was the result of the Natural Gas Operations segment, where net income decreased by $401,000, primarily due to significantly warmer weather in most of the Company's weather sensitive service territories. Also impacting the second quarter was a net loss of $156,000 from the Propane Operations segment acquired in 2011 and increased costs in the Company's Corporate and Other segment related to completed and potential acquisitions.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "We advanced our growth strategy by expanding our utility operations through customer expansion and continuing to make rate base investments as well as strategic acquisitions. Warmer temperatures did dampen our results, however, we continued to see volume growth in our Maine and North Carolina markets and we are actively expanding our systems in those service areas to meet the high customer interest in natural gas."
For the six months ended June 30, 2012, consolidated net income decreased to $2.6 million from $4.6 million in the same period in 2011, which reflects a $1.3 million decrease in net income from the Natural Gas Operations segment primarily due to significantly warmer weather in most of the Company's weather sensitive service territories. Also impacting the second quarter was a net loss of $251,000 from the Propane Operations segment.
The Company also incurred increased costs in its Corporate and Other segment related to completed and potential acquisitions of $425,000 and $616,000, respectively, during the three and six months ended June 30, 2012 compared with costs of $16,000 and $56,000, respectively, during the three and six months ended June 30, 2011. In addition, in connection with the shares of the Company's common stock sold by Mr. Osborne in July 2012, the Company incurred expenses of $255,000 during the three and six months ended June 30, 2012 compared with expenses of $46,000 during the three and six months ended June 30, 2011. On a per diluted share basis, net income was $0.31 and $0.57 for the first half of 2012 and 2011, respectively.
Recent Acquisitions and Updates
Spelman Pipeline, one of the Company's subsidiaries, has reconditioned a portion of the Ohio pipeline that the Company acquired in April 2011. The Public Utilities Commission of Ohio authorized the Company to operate Spelman as an intrastate pipeline and the Company expects to initiate transportation service in September 2012.
Gas Natural acquired the stock of Public Gas Company, Inc. (PGC) for $1.6 million from Kentucky Energy Development, LLC, on April 1, 2012. PGC is a regulated natural gas distribution company serving approximately 1,600 customers in eight counties in the eastern part of Kentucky.
On June 4, 2012 the Company attended a public foreclosure auction and was the successful bidder with a bid of $4.5 million for a leasehold interest in a pipeline corridor easement running from Searsport to Limestone, Maine ("Loring Pipeline") and various parcels of land. The acquisition was set to close 30 days after the public auction but the Company is still in negotiations regarding the leasehold interest. The purchase price provides for $2.25 million to be paid in shares of the Company's common stock or cash and the balance of the purchase price will be in the form of cash at closing. As of June 30, 2012, the Company had deposited $2.25 million in escrow.
Natural Gas Operations Segment
The Company annually distributes over 32 billion cubic feet of natural gas to approximately 70,000 customers through regulated utilities operating in Kentucky, Maine, Montana, North Carolina, Ohio, Pennsylvania, and Wyoming.
| Natural Gas Operations Income Statement |
||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| ($ in thousands) |
2012 |
2011 |
2012 |
2011 |
||||
| Natural Gas Operations |
||||||||
| Operating revenue |
$ 12,801 |
$ 17,095 |
$ 42,649 |
$ 55,315 |
||||
| Gas Purchased |
5,447 |
9,576 |
22,684 |
34,293 |
||||
| Gross Margin |
7,354 |
7,519 |
19,965 |
21,022 |
||||
| Operating expenses |
6,992 |
6,617 |
13,721 |
13,233 |
||||
| Operating income |
362 |
902 |
6,244 |
7,789 |
||||
| Other income |
295 |
132 |
409 |
328 |
||||
| Income before interest and taxes |
657 |
1,034 |
6,653 |
8,117 |
||||
| Interest expense |
(593) |
(467) |
(1,230) |
(854) |
||||
| Income before income taxes |
64 |
567 |
5,423 |
7,263 |
||||
| Income tax expense |
(105) |
(207) |
(2,111) |
(2,644) |
||||
| Net (Loss) Income |
$ (41) |
$ 360 |
$ 3,312 |
$ 4,619 |
||||
The Natural Gas Operations segment reported a net loss of $41,000 in the second quarter of 2012 compared with net income of $360,000 in the same period of 2011. The change reflects warmer weather across most of the Company's weather sensitive service territories when compared with the temperature in last year's second quarter. For the six months ended June 30, 2012, the Natural Gas Operations segment contributed net income of $3.3 million compared with $4.6 million for the first half of 2011.
Operating expenses increased by $375,000 to $7.0 million in the second quarter of 2012, due to higher depreciation from increased capital expenditures and $107,000 in additional operating expenses from the PGC acquisition. As a result, operating income was $362,000, or 4.9% of gross margin, for the 2012 second quarter compared with $902,000, or 12.0% of gross margin, for the prior-year period. Operating income as a percent of gross margin was 31.3% in the first six months of 2012 compared with 37.1% in the same period in 2011.
Other Income increased in the second quarter and first half of 2012 from higher service sales. Interest expense during the second quarter and year-to-date period increased as a result of the higher average balance on the lines of credit and increased debt levels.
Full service distribution volumes delivered decreased 327 MMcf to 1,336 MMcf in the second quarter of 2012 and were down 976 MMcf to 4,836 MMcf through the first half of 2012.
Other Operating Segments
The Marketing and Production segment reported a net loss of $36,000 for the second quarter of 2012 compared with net income $24,000 for the same period in 2011. The decrease was primarily due to lower prices received for volumes produced and higher operating expenses. For the six months ended June 30, 2012, the Marketing and Production segment contributed net income of $60,000 compared with $109,000 for the six months ended June 30, 2011.
The Pipeline Operations segment contributed net income of $23,000 and $61,000 from the second quarter and first half of 2012, respectively, a slight decrease from the comparable periods in 2011.
The Propane Operations segment, acquired on August 1, 2011, reported a net loss of $156,000 in the current quarter and net loss of $251,000 for the year-to-date period.
Balance Sheet and Cash Management
Cash and cash equivalents as of June 30, 2012 were $2.5 million, down from the December 31, 2011 balance of $10.5 million.
Cash provided by operating activities decreased by $3.3 million to $12.2 million in the first six months of 2012 compared with $15.5 million in the same period of the prior year. The decrease in cash from operations was principally due to working capital changes including the recoverable cost of gas, accounts payable and accounts receivable. The Company used $2.25 million for the Loring Pipeline deposit.
Capital expenditures for first half of 2012 totaled $8.8 million compared with $10.3 million in the first half of 2011, which included $3.3 million related to the Spelman pipeline asset acquisition in April 2011. The majority of the current capital spending was focused on the growth of the Company's Natural Gas Operations segment, including expansion, maintenance, and enhancement of its gas pipeline systems. The Company used $1.6 million to purchase PGC. Capital expenditures for 2012 are expected to total between $18 million to $19 million.
The Company maintains two revolving credit facilities with $18.7 million in use at June 30, 2012 compared with $23.2 million at the end of 2011. Long-Term debt was $31.3 million at the end of the second quarter of 2012, comparable with the year-end balance of $31.4 million.
About Gas Natural Inc.
Gas Natural Inc. distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 32 billion cubic feet of natural gas to approximately 70,000 customers through regulated utilities operating in Kentucky, Maine, Montana, North Carolina, Ohio, Pennsylvania, and Wyoming. The Company's other operations include interstate pipeline, natural gas production, propane and natural gas marketing. The Company's Montana public utility was originally incorporated in 1909. The Company's strategy for growth is to expand throughput in its Maine and North Carolina markets while looking for acquisitions that are either adjacent to its existing utilities or in under saturated markets.
The Company regularly posts information at its website: 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 |
| Thomas J. Smith, Chief Financial Officer |
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 Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) |
|||||||
| Three Months Ended |
Six Months Ended |
||||||
| June 30, |
June 30, |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| REVENUE |
|||||||
| Natural gas operations |
$ 12,801,547 |
$ 17,095,262 |
$ 42,649,632 |
$ 55,314,845 |
|||
| Marketing and production |
1,040,354 |
1,475,665 |
2,947,448 |
3,301,167 |
|||
| Pipeline operations |
102,093 |
102,061 |
209,877 |
208,385 |
|||
| Propane operations |
561,552 |
- |
2,470,710 |
- |
|||
| Total revenue |
14,505,546 |
18,672,988 |
48,277,667 |
58,824,397 |
|||
| COST OF SALES |
|||||||
| Natural gas purchased |
5,447,322 |
9,575,592 |
22,684,216 |
34,292,500 |
|||
| Marketing and production |
850,311 |
1,208,379 |
2,245,727 |
2,607,786 |
|||
| Propane purchased |
418,482 |
- |
1,849,751 |
- |
|||
| Total cost of sales |
6,716,115 |
10,783,971 |
26,779,694 |
36,900,286 |
|||
| GROSS MARGIN |
7,789,431 |
7,889,017 |
21,497,973 |
21,924,111 |
|||
| OPERATING EXPENSES |
|||||||
| Distribution, general, and administrative |
5,236,512 |
4,629,976 |
10,449,432 |
9,287,296 |
|||
| Maintenance |
316,722 |
271,965 |
612,957 |
557,192 |
|||
| Depreciation and amortization |
1,304,472 |
1,068,470 |
2,547,816 |
2,103,547 |
|||
| Accretion |
39,554 |
34,803 |
77,634 |
69,413 |
|||
| Taxes other than income |
880,306 |
892,981 |
1,817,796 |
1,746,946 |
|||
| Total operating expenses |
7,777,566 |
6,898,195 |
15,505,635 |
13,764,394 |
|||
| OPERATING INCOME |
11,865 |
990,822 |
5,992,338 |
8,159,717 |
|||
| LOSS FROM UNCONSOLIDATED AFFILIATE |
(2,214) |
(20,194) |
(4,955) |
(83,151) |
|||
| OTHER INCOME (EXPENSE), net |
231,624 |
178,029 |
350,896 |
333,444 |
|||
| ACQUISITION EXPENSE |
(425,151) |
(15,798) |
(616,476) |
(55,533) |
|||
| STOCK SALE EXPENSE |
(255,279) |
(46,123) |
(255,279) |
(46,123) |
|||
| INTEREST EXPENSE |
(625,797) |
(492,674) |
(1,289,866) |
(905,853) |
|||
| (LOSS) INCOME BEFORE INCOME TAXES |
(1,064,952) |
594,062 |
4,176,658 |
7,402,501 |
|||
| INCOME TAX BENEFIT (EXPENSE) |
340,762 |
(233,724) |
(1,618,001) |
(2,767,409) |
|||
| NET(LOSS) INCOME |
(724,190) |
360,338 |
2,558,657 |
4,635,092 |
|||
| OTHER COMPREHENSIVE (LOSS) INCOME |
|||||||
| Unrealized gain (loss) on available |
|||||||
| for sale securities, net of tax |
(15,477) |
855 |
(6,331) |
19,621 |
|||
| COMPREHENSIVE (LOSS) INCOME |
$ (739,667) |
$ 361,193 |
$ 2,552,326 |
$ 4,654,713 |
|||
| (LOSS) EARNINGS PER SHARE - BASIC |
$ (0.09) |
$ 0.04 |
$ 0.31 |
$ 0.57 |
|||
| AND DILUTED |
|||||||
| WEIGHTED AVERAGE DIVIDENDS DECLARED |
|||||||
| PER COMMON SHARE |
$ 0.135 |
$ 0.135 |
$ 0.270 |
$ 0.270 |
|||
| WEIGHTED AVERAGE SHARES |
|||||||
| OUTSTANDING - BASIC |
8,155,867 |
8,151,359 |
8,155,300 |
8,150,802 |
|||
| WEIGHTED AVERAGE SHARES |
|||||||
| OUTSTANDING - DILUTED |
8,155,867 |
8,159,825 |
8,162,686 |
8,158,955 |
|||
| Gas Natural Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) |
|||
| June 30, |
December 31, |
||
| 2012 |
2011 |
||
| ASSETS |
|||
| CURRENT ASSETS |
|||
| Cash and cash equivalents |
$ 2,457,144 |
$ 10,504,845 |
|
| Marketable securities |
357,750 |
367,875 |
|
| Accounts receivable |
|||
| Trade, less allowance for doubtful accounts of $765,264 |
|||
| and $630,632, respectively |
4,968,702 |
9,381,625 |
|
| Related parties |
559,692 |
519,084 |
|
| Unbilled gas |
1,066,851 |
4,232,854 |
|
| Note receivable - related parties, current portion |
10,620 |
10,256 |
|
| Inventory |
|||
| Natural gas and propane |
3,181,995 |
6,967,739 |
|
| Materials and supplies |
2,289,304 |
1,958,858 |
|
| Prepaid income taxes |
1,071,051 |
1,584,869 |
|
| Prepayments and other |
396,434 |
741,101 |
|
| Recoverable cost of gas purchases |
3,091,693 |
2,627,416 |
|
| Deferred tax asset |
1,146,373 |
1,061,314 |
|
| Total current assets |
20,597,609 |
39,957,836 |
|
| PROPERTY, PLANT AND EQUIPMENT, net |
104,644,827 |
97,612,257 |
|
| OTHER ASSETS |
|||
| Notes receivable - related parties, less current portion |
30,006 |
35,408 |
|
| Regulatory assets |
|||
| Property taxes |
449,098 |
590,464 |
|
| Income taxes |
452,645 |
452,645 |
|
| Rate case costs |
202,746 |
205,714 |
|
| Debt issuance costs, net |
1,204,928 |
869,593 |
|
| Goodwill |
14,750,924 |
14,607,952 |
|
| Customer relationships |
627,917 |
639,333 |
|
| Investment in unconsolidated affiliate |
325,396 |
330,351 |
|
| Restricted cash |
1,709,304 |
949,907 |
|
| Other assets |
4,592,743 |
159,954 |
|
| Total other assets |
24,345,707 |
18,841,321 |
|
| TOTAL ASSETS |
$ 149,588,143 |
$ 156,411,414 |
|
| Gas Natural Inc. and Subsidiaries Condensed Consolidated Balance Sheets, Continued (Unaudited) |
|||
| June 30, |
December 31, |
||
| 2012 |
2011 |
||
| LIABILITIES AND CAPITALIZATION |
|||
| CURRENT LIABILITIES |
|||
| Checks in excess of amounts on deposit |
$ 806,880 |
$ 1,027,376 |
|
| Lines of credit |
18,662,377 |
23,160,000 |
|
| Accounts payable |
|||
| Trade |
3,496,787 |
8,755,623 |
|
| Related parties |
87,781 |
191,763 |
|
| Notes payable, current portion |
8,269 |
7,885 |
|
| Accrued liabilities |
|||
| Taxes other than income |
2,149,007 |
3,018,964 |
|
| Vacation |
167,290 |
115,940 |
|
| Employee benefit plans |
282,247 |
140,149 |
|
| Interest |
114,540 |
30,688 |
|
| Deferred payments received from levelized billing |
2,311,173 |
2,948,188 |
|
| Customer deposits |
734,985 |
707,062 |
|
| Property tax settlement, current portion |
242,128 |
242,128 |
|
| Related parties |
258,862 |
635,192 |
|
| Other current liabilities |
1,946,330 |
1,280,670 |
|
| Acquisition settlement |
2,250,000 |
- |
|
| Overrecovered gas purchases |
1,749,706 |
2,237,827 |
|
| Total current liabilities |
35,268,362 |
44,499,455 |
|
| LONG-TERM LIABILITIES |
|||
| Deferred investment tax credits |
165,848 |
176,379 |
|
| Deferred tax liability |
4,752,856 |
2,908,167 |
|
| Asset retirement obligation |
1,766,715 |
1,689,081 |
|
| Customer advances for construction |
1,023,299 |
880,851 |
|
| Regulatory liability for income taxes |
83,161 |
83,161 |
|
| Regulatory liability for gas costs |
35,418 |
57,570 |
|
| Total long-term liabilities |
7,827,297 |
5,795,209 |
|
| NOTES PAYABLE, less current portion |
31,340,487 |
31,344,723 |
|
| STOCKHOLDERS' EQUITY |
|||
| Preferred stock; $0.15 par value, 1,500,000 shares authorized, |
|||
| no shares issued or outstanding |
- |
- |
|
| Common stock; $0.15 par value, 15,000,000 shares authorized, |
|||
| 8,156,551 and 8,154,301 shares issued and outstanding, respectively |
1,223,483 |
1,223,145 |
|
| Capital in excess of par value |
42,008,079 |
41,978,799 |
|
| Accumulated other comprehensive income |
74,074 |
80,405 |
|
| Retained earnings |
31,846,361 |
31,489,678 |
|
| Total stockholders' equity |
75,151,997 |
74,772,027 |
|
| TOTAL CAPITALIZATION |
106,492,484 |
106,116,750 |
|
| TOTAL LIABILITIES AND CAPITALIZATION |
$ 149,588,143 |
$ 156,411,414 |
|
| Gas Natural Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2012 and 2011 (Unaudited) |
|||
| 2012 |
2011 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES |
|||
| Net income |
$ 2,558,657 |
$ 4,635,092 |
|
| Adjustments to reconcile net income to net cash provided |
|||
| by operating activities |
|||
| Depreciation and amortization |
2,547,816 |
2,103,547 |
|
| Accretion |
77,634 |
69,413 |
|
| Amortization of debt issuance costs |
139,388 |
68,667 |
|
| Stock based compensation |
29,618 |
34,943 |
|
| Loss on sale of assets |
2,184 |
39,685 |
|
| Loss from unconsolidated affiliate |
4,955 |
83,151 |
|
| Investment tax credit |
(10,531) |
(10,531) |
|
| Deferred income taxes |
1,628,532 |
2,721,060 |
|
| Changes in assets and liabilities |
|||
| Accounts receivable, including related parties |
4,441,447 |
5,128,578 |
|
| Unbilled gas |
3,166,003 |
4,401,975 |
|
| Natural gas and propane inventory |
3,785,744 |
2,041,931 |
|
| Accounts payable, including related parties |
(4,843,189) |
(4,397,430) |
|
| Recoverable/refundable cost of gas purchases |
(952,398) |
2,026,951 |
|
| Prepayments and other |
344,667 |
513,230 |
|
| Other assets |
209,790 |
(847,241) |
|
| Other liabilities |
(897,090) |
(3,097,367) |
|
| Net cash provided by operating activities |
12,233,227 |
15,515,654 |
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|||
| Capital expenditures |
(8,766,629) |
(10,279,331) |
|
| Proceeds from sale of fixed assets |
29,302 |
19,900 |
|
| Proceeds from related party note receivable |
5,038 |
4,699 |
|
| Cash acquired in acquisition |
502 |
- |
|
| Purchase of Public Gas Company, Inc. |
(1,551,478) |
- |
|
| Restricted cash |
- |
(3,403,078) |
|
| Investment in unconsolidated affiliate |
- |
(303,600) |
|
| Acquisition deposit |
(2,250,000) |
- |
|
| Customer advances for construction |
142,448 |
72,082 |
|
| Contributions in aid of construction |
47,402 |
7,735 |
|
| Net cash used in investing activities |
(12,343,415) |
(13,881,593) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|||
| Proceeds from lines of credit |
7,012,377 |
11,200,000 |
|
| Repayment on lines of credit |
(11,510,000) |
(17,509,999) |
|
| Proceeds from notes payable |
- |
18,334,000 |
|
| Repayments of notes payable |
(3,852) |
(9,869,533) |
|
| Repayments of related party notes payable |
- |
(49,361) |
|
| Debt issuance costs |
(474,723) |
(483,488) |
|
| Restricted cash |
(759,397) |
(948,836) |
|
| Dividends paid |
(2,201,918) |
(2,200,702) |
|
| Net cash used in financing activities |
(7,937,513) |
(1,527,919) |
|
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(8,047,701) |
106,142 |
|
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
10,504,845 |
13,026,585 |
|
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 2,457,144 |
$ 13,132,727 |
|
|
Gas Natural Inc. and Subsidiaries Segments of Operations |
||||||||||||
| Three Months Ended June 30, 2012 |
||||||||||||
| Marketing |
||||||||||||
| Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
||||||||
| Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
| OPERATING REVENUES |
$ 12,880,690 |
$ 2,151,601 |
$ 102,093 |
$ 561,552 |
$ - |
$ 15,695,936 |
||||||
| Intersegment eliminations |
(79,143) |
(1,111,247) |
- |
- |
- |
(1,190,390) |
||||||
| Total operating revenue |
12,801,547 |
1,040,354 |
102,093 |
561,552 |
- |
14,505,546 |
||||||
| COST OF SALES |
5,526,465 |
1,961,558 |
- |
418,482 |
- |
7,906,505 |
||||||
| Intersegment eliminations |
(79,143) |
(1,111,247) |
- |
- |
- |
(1,190,390) |
||||||
| Total cost of sales |
5,447,322 |
850,311 |
- |
418,482 |
- |
6,716,115 |
||||||
| GROSS MARGIN |
$ 7,354,225 |
$ 190,043 |
$ 102,093 |
$ 143,070 |
$ - |
$ 7,789,431 |
||||||
| OPERATING EXPENSES |
6,991,710 |
220,317 |
61,882 |
431,539 |
72,118 |
7,777,566 |
||||||
| OPERATING INCOME (LOSS) |
$ 362,515 |
$ (30,274) |
$ 40,211 |
$ (288,469) |
$ (72,118) |
$ 11,865 |
||||||
| NET INCOME (LOSS) |
$ (40,947) |
$ (35,575) |
$ 23,035 |
$ (156,236) |
$ (514,467) |
$ (724,190) |
||||||
| Three Months Ended June 30, 2011 |
||||||||||||
| Marketing |
||||||||||||
| Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
||||||||
| Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
| OPERATING REVENUES |
$ 17,992,076 |
$ 3,209,966 |
$ 102,061 |
$ - |
$ - |
$ 21,304,103 |
||||||
| Intersegment eliminations |
(896,814) |
(1,734,301) |
- |
- |
- |
(2,631,115) |
||||||
| Total operating revenue |
17,095,262 |
1,475,665 |
102,061 |
- |
- |
18,672,988 |
||||||
| COST OF SALES |
10,472,406 |
2,942,680 |
- |
- |
- |
13,415,086 |
||||||
| Intersegment eliminations |
(896,814) |
(1,734,301) |
- |
- |
- |
(2,631,115) |
||||||
| Total cost of sales |
9,575,592 |
1,208,379 |
- |
- |
- |
10,783,971 |
||||||
| GROSS MARGIN |
$ 7,519,670 |
$ 267,286 |
$ 102,061 |
$ - |
$ - |
$ 7,889,017 |
||||||
| OPERATING EXPENSES |
6,617,487 |
187,659 |
53,665 |
- |
39,384 |
6,898,195 |
||||||
| OPERATING INCOME (LOSS) |
$ 902,183 |
$ 79,627 |
$ 48,396 |
$ - |
$ (39,384) |
$ 990,822 |
||||||
| NET INCOME (LOSS) |
$ 359,742 |
$ 23,625 |
$ 27,752 |
$ - |
$ (50,781) |
$ 360,338 |
||||||
| Gas Natural Inc. and Subsidiaries Segments of Operations, Continued (Unaudited) |
||||||||||||
| Six Months Ended June 30, 2012 |
||||||||||||
| Marketing |
||||||||||||
| Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
||||||||
| Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
| OPERATING REVENUES |
$ 42,813,840 |
$ 5,777,390 |
$ 209,877 |
$ 2,470,710 |
$ - |
$ 51,271,817 |
||||||
| Intersegment eliminations |
(164,208) |
(2,829,942) |
- |
- |
- |
(2,994,150) |
||||||
| Total operating revenue |
42,649,632 |
2,947,448 |
209,877 |
2,470,710 |
- |
48,277,667 |
||||||
| COST OF SALES |
22,848,424 |
5,075,669 |
- |
1,849,751 |
- |
29,773,844 |
||||||
| Intersegment eliminations |
(164,208) |
(2,829,942) |
- |
- |
- |
(2,994,150) |
||||||
| Total cost of sales |
22,684,216 |
2,245,727 |
- |
1,849,751 |
- |
26,779,694 |
||||||
| GROSS MARGIN |
$ 19,965,416 |
$ 701,721 |
$ 209,877 |
$ 620,959 |
$ - |
$ 21,497,973 |
||||||
| OPERATING EXPENSES |
13,720,982 |
551,402 |
100,388 |
997,952 |
134,911 |
15,505,635 |
||||||
| OPERATING INCOME (LOSS) |
$ 6,244,434 |
$ 150,319 |
$ 109,489 |
$ (376,993) |
$ (134,911) |
$ 5,992,338 |
||||||
| NET INCOME (LOSS) |
$ 3,311,587 |
$ 59,740 |
$ 61,258 |
$ (251,077) |
$ (622,851) |
$ 2,558,657 |
||||||
| As of June 30, 2012 |
||||||||||||
| Goodwill |
$ 14,750,924 |
$ - |
$ - |
$ - |
$ - |
$ 14,750,924 |
||||||
| Investment in unconsolidated affiliate |
$ - |
$ 325,396 |
$ - |
$ - |
$ - |
$ 325,396 |
||||||
| Total assets |
$ 140,533,525 |
$ 6,266,724 |
$ 842,812 |
$ 2,829,273 |
$ 63,070,043 |
$ 213,542,377 |
||||||
| Intersegment eliminations |
(49,820,232) |
(742,487) |
(7,492) |
(2,314,755) |
(11,069,268) |
(63,954,234) |
||||||
| Total assets |
$ 90,713,293 |
$ 5,524,237 |
$ 835,320 |
$ 514,518 |
$ 52,000,775 |
$ 149,588,143 |
||||||
| Six Months Ended June 30, 2011 |
||||||||||||
| Marketing |
||||||||||||
| Natural Gas |
and |
Pipeline |
Propane |
Corporate and |
||||||||
| Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
| OPERATING REVENUES |
$ 56,301,969 |
$ 7,550,218 |
$ 208,385 |
$ - |
$ - |
$ 64,060,572 |
||||||
| Intersegment eliminations |
(987,124) |
(4,249,051) |
- |
- |
- |
(5,236,175) |
||||||
| Total operating revenue |
55,314,845 |
3,301,167 |
208,385 |
- |
- |
58,824,397 |
||||||
| COST OF SALES |
35,279,624 |
6,856,837 |
- |
- |
- |
42,136,461 |
||||||
| Intersegment eliminations |
(987,124) |
(4,249,051) |
- |
- |
- |
(5,236,175) |
||||||
| Total cost of sales |
34,292,500 |
2,607,786 |
- |
- |
- |
36,900,286 |
||||||
| GROSS MARGIN |
$ 21,022,345 |
$ 693,381 |
$ 208,385 |
$ - |
$ - |
$ 21,924,111 |
||||||
| OPERATING EXPENSES |
13,233,295 |
387,156 |
95,989 |
- |
47,954 |
13,764,394 |
||||||
| OPERATING INCOME (LOSS) |
$ 7,789,050 |
$ 306,225 |
$ 112,396 |
$ - |
$ (47,954) |
$ 8,159,717 |
||||||
| NET INCOME (LOSS) |
$ 4,618,867 |
$ 109,407 |
$ 64,554 |
$ - |
$ (157,736) |
$ 4,635,092 |
||||||
| As of June 30, 2011 |
||||||||||||
| Goodwill |
$ 14,607,952 |
$ - |
$ - |
$ - |
$ - |
$ 14,607,952 |
||||||
| Investment in unconsolidated affiliate |
$ - |
$ 860,665 |
$ - |
$ - |
$ - |
$ 860,665 |
||||||
| Total assets |
$ 129,347,991 |
$ 5,278,371 |
$ 849,911 |
$ - |
$ 55,582,507 |
$ 191,058,780 |
||||||
| Intersegment eliminations |
(42,320,659) |
(1,267,242) |
(18,130) |
- |
(9,697,125) |
(53,303,156) |
||||||
| Total assets |
$ 87,027,332 |
$ 4,011,129 |
$ 831,781 |
$ - |
$ 45,885,382 |
$ 137,755,624 |
||||||
| Gas Natural Inc. and Subsidiaries Natural Gas Operations (Unaudited) |
|||||||||
| Utility Throughput |
|||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||
| (in million cubic feet (MMcf)) |
2012 |
2011 |
2012 |
2011 |
|||||
| Full Service Distribution |
|||||||||
| Residential |
567 |
737 |
2,377 |
2,899 |
|||||
| Commercial |
738 |
882 |
2,375 |
2,829 |
|||||
| Industrial |
31 |
44 |
84 |
84 |
|||||
| Total full service |
1,336 |
1,663 |
4,836 |
5,812 |
|||||
| Transportation |
2,380 |
1,883 |
5,332 |
4,568 |
|||||
| Bucksport |
3,253 |
2,988 |
6,914 |
6,789 |
|||||
| Total Volumes |
6,969 |
6,534 |
17,082 |
17,169 |
|||||
| Heating Degree Days |
||||||||||
| Three Months Ended |
Percent (Warmer) Colder |
|||||||||
| June 30, |
2012 Compared to |
|||||||||
| Normal |
2012 |
2011 |
Normal |
2011 |
||||||
| Great Falls, MT |
1,212 |
1,090 |
1,498 |
(10.07%) |
(27.24%) |
|||||
| Cody, WY |
1,072 |
905 |
1,408 |
(15.58%) |
(35.72%) |
|||||
| Bangor, ME |
1,072 |
952 |
1,052 |
(11.19%) |
(9.51%) |
|||||
| Elkin, NC |
337 |
361 |
318 |
7.12% |
13.52% |
|||||
| Youngstown, OH |
825 |
669 |
711 |
(18.91%) |
(5.91%) |
|||||
| Six Months Ended |
Percent (Warmer) Colder |
|||||||||
| June 30, |
2012 Compared to |
|||||||||
| Normal |
2012 |
2011 |
Normal |
2011 |
||||||
| Great Falls, MT |
4,392 |
4,004 |
5,160 |
(8.83%) |
(22.40%) |
|||||
| Cody, WY |
4,102 |
3,643 |
4,685 |
(11.19%) |
(22.24%) |
|||||
| Bangor, ME |
4,807 |
4,225 |
4,860 |
(12.11%) |
(13.07%) |
|||||
| Elkin, NC |
2,454 |
1,977 |
2,414 |
(19.44%) |
(18.10%) |
|||||
| Youngstown, OH |
3,943 |
3,082 |
4,019 |
(21.84%) |
(23.31%) |
|||||
SOURCE Gas Natural Inc.
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