Gas Natural Inc. Reports Third Quarter 2010 Results and Announces Monthly Dividend

-- Consolidated third quarter net loss of $45,000 improved from net loss of $172,000 in the prior year period.

-- Board of Directors declared a monthly dividend of $0.045 per share to shareholders of record as of November 15, 2010. The dividend is payable on November 30, 2010.

-- Public offering of 1.76 million primary shares results in net proceeds of $16.0 million for expansion opportunities

News provided by

Gas Natural Inc.

Nov 15, 2010, 05:59 ET

GREAT FALLS, Mont., Nov. 15, 2010 /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 third quarter ended September 30, 2010. Results for the quarter included 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 were the results of Cut Bank Gas in Montana, a small operation acquired in November 2009.

Consolidated net loss for the third quarter was $45,000, or $(0.01) per diluted share, improved from net loss of $172,000, or $(0.04) per diluted share, for the same period in 2009. The improvement was primarily driven by an income tax benefit of $506,000 from the adjustment of the prior year's tax provision to actual tax requirements. The operations of the acquired Ohio companies reported a net loss of $695,000 in the 2010 third quarter as they depend on residential heating load which was minimal in the third quarter.

For the nine months ended September 30, 2010, net income increased $1.6 million, or 65%, to $4.1 million from the $2.5 million reported in the same period of 2009. On a per diluted share basis, net income was $0.68 for the first nine months of 2010 compared with $0.58 in the corresponding period of 2009.

Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "Our Maine and North Carolina operations again made significant contributions to the Company; and during the quarter we continued to add new customers and expanded our facilities to meet the strong demand we are experiencing in these growth markets. Our Ohio-based operations depend on residential heating load, which was minimal during the third quarter. We remain intensely focused on improving our Ohio results, and expect that those operations will improve over time as we implement operational efficiencies, complete the integration and capture greater market share in those territories."

Mr. Osborne added, "We have grown and succeeded in markets where natural gas is the clean, economic and abundant energy source. And, the success of our recent stock sale provides growth capital to invest primarily in our North Carolina and Maine markets where we can capture market share from propane and fuel oil distributors while offering consumers significant savings on their energy bill."

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 in January 2010, closed the acquisition of its Ohio and Pennsylvania operations.

		Three Months Ended September 30,		Nine Months Ended September 30,
		2010	2009	2010	2009
Natural Gas Operations
	Operating revenue	$10,158,766	$6,134,362	$56,347,035	$41,820,238
	Gas purchased	4,803,027	2,398,039	32,343,603	26,862,370
	Gross margin	5,355,739	3,736,323	24,003,432	14,957,868
	Operating expenses	6,034,633	3,557,287	18,121,237	11,002,263
	Operating (loss) income	(678,894)	179,036	5,882,195	3,955,605
	Other income	227,452	52,818	703,649	214,639

	(Loss) Income before interest and taxes	(451,442)	231,854	6,585,844	4,170,244

	Interest (expense)	(467,555)	(282,582)	(1,545,184)	(822,753)

	(Loss) Income before income taxes	(918,997)	(50,728)	5,040,660	3,347,491
	Income tax benefit (expense)	593,268	60,611	(1,387,115)	(1,240,131)

	Net (loss) income	($325,729)	$9,883	$3,653,545	$2,107,360

The Natural Gas Operations segment incurred a net loss of $326,000 in the third quarter of 2010 compared with net income of $10,000 for the same period the prior year. The change was the result of the previously noted Ohio operation's net loss of $695,000, which more than offset the benefits of the income tax provision adjustment. For the nine months ended September 30, 2010, the Natural Gas Operations segment contributed net income of $3.7 million compared with $2.1 million for the same period in 2009, an increase of 76%, or $1.6 million. The increase was primarily due to net income growth of $1.3 million from organic operations, specifically attributed to strong results from the North Carolina and Maine utilities, while the acquired Ohio companies accounted for $242,000 of the increase.

Operating loss for the third quarter of 2010 was $679,000 compared with operating income of $179,000 in the third 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 for the first nine months of 2010 expanded 48.7% to $5.9 million over the $4.0 million reported during the same period of the prior year, reflecting improved performance at the Company's organic operations and contributions from the Ohio acquisitions.

Other income increased during the third quarter and nine month period of 2010, due primarily to contributions from the Ohio companies.

The increase in interest expense during the third quarter and nine month period 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 $275,000 compared with a net loss of $12,000 for the same quarter of 2009. The increase was primarily due to a $254,000 income tax benefit from the previously noted true-up of income tax expense. For the nine months ended September 30, 2010, net income for the segment was $309,000, down from $677,000 for the nine month period in 2009, a reflection of a jury award in April 2010 of $522,000 in litigation relating to a gas supply contract that expired in October of 2008, partially offset by the current quarter true-up income tax benefit.

Pipeline Operations Segment

The Pipeline Operations segment generated net income of $83,000 for the three months ended September 30, 2010, compared with $74,000 for the same period in the prior year. Net income was $143,000 for the nine months ended September 30, 2010, in line with the $147,000 reported for the same period in 2009.

Balance Sheet and Cash Management

Cash and marketable securities at the end of the third quarter of 2010 was $6.7 million, a decline from the 2009 year-end balance of $7.2 million, but an improvement of 8.1%, or $0.5 million, from $6.2 million reported at the end of the third quarter of 2009. On November 15, 2010, subsequent to the close of the third quarter, the Company completed its underwritten public offering of 2,100,000 shares of its common stock, of which the Company sold 1,760,000 shares and certain selling shareholders sold 340,000 shares. The Company intends to use the net proceeds, which were approximately $16.0 million after deducting underwriting discounts, commissions, and offering expenses, to expand its distribution systems as well as for working capital and general corporate purposes. The Company has granted the underwriters a 30-day option to purchase up to an additional 315,000 shares of common stock on the same terms and conditions to cover over-allotments, if any.

Cash provided by operating activities was $6.9 million in the first nine months of 2010 compared with $17.5 million in the same period the prior year. The change in cash from operations was principally due to a $4.4 million increase in the amount paid for gas inventory and a $5.8 million increase in refunds of refundable costs of gas due to timing.

Capital expenditures for first nine months of 2010 were $4.0 million, compared with $6.7 million in the corresponding period of 2009, and were focused on the acquired Ohio companies as well as expanding operations in its growth oriented utilities of Maine and North Carolina.

The Company sold $4.2 million in marketable securities during the first nine months 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 $18.2 million with approximately $5.4 million of availability as of the end of the third quarter of 2010. As previously announced, on November 2, 2010, the Company agreed to sell $20.0 million of senior secured notes to Sun Life Assurance Company of Canada. The sale is expected to close by the end of November 2010, subject to regulatory approvals. The net proceeds will be used to refinance the Company's existing Ohio and Great Plains debt.

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		Nine Months Ended
	September 30,		September 30,
	2010	2009	2010	2009
REVENUE:
Natural gas operations	$ 10,158,766	$ 6,134,362	$ 56,347,035	$ 41,820,238
Gas—wholesale	638,471	2,077,309	5,624,803	9,739,654
Pipeline operations	104,461	114,417	319,418	338,484
Total revenues	10,901,698	8,326,088	62,291,256	51,898,376
COST OF SALES:
Gas purchased	4,803,027	2,398,039	32,343,603	26,862,370
Gas—wholesale	380,934	1,738,394	4,435,153	7,824,121
Total cost of sales	5,183,961	4,136,433	36,778,756	34,686,491

GROSS MARGIN	5,717,737	4,189,655	25,512,500	17,211,885

EXPENSES:
Distribution, general, and administrative	4,202,675	2,707,842	12,492,146	8,128,727
Maintenance	239,152	145,866	775,634	502,456
Depreciation and amortization	1,042,315	553,061	3,045,373	1,598,206
Taxes other than income	789,490	538,377	2,548,725	1,650,643
Total expenses	6,273,632	3,945,146	18,861,878	11,880,032

OPERATING (LOSS) INCOME	(555,895)	244,509	6,650,622	5,331,853

OTHER INCOME (LOSS)	262,162	(213,612)	358,975	(323,530)
INTEREST EXPENSE	(492,378)	(304,404)	(1,614,134)	(902,755)

INCOME (LOSS) FROM OPERATIONS BEFORE
INCOME TAX EXPENSE	(786,111)	(273,507)	5,395,463	4,105,568
INCOME TAX BENEFIT (EXPENSE)	741,406	101,034	(1,311,444)	(1,629,233)
NET INCOME (LOSS)	$ (44,705)	$ (172,473)	$ 4,084,019	$ 2,476,335

BASIC INCOME (LOSS) PER COMMON SHARE:
Income from operations	$ (0.01)	$ (0.04)	$ 0.68	$ 0.58

DILUTED INCOME (LOSS) PER COMMON SHARE:
Income from operations	$ (0.01)	$ (0.04)	$ 0.68	$ 0.58

DIVIDENDS DECLARED PER COMMON SHARE:	$ 0.14	$ 0.14	$ 0.41	$ 0.39

WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic	6,072,996	4,302,085	6,040,063	4,300,156
Diluted	6,072,996	4,302,085	6,048,332	4,303,018

Please refer to the notes as filed on Form 10-Q that are an integral part of these condensed financial statements.

Gas Natural Inc. and Subsidiaries Consolidated Segment Statements of Operations *(unaudited)*
Three Months Ended September 30, 2010
		Marketing
	Natural Gas	and	Pipeline	Corporate
	Operations	Production	Operations	and Other	Eliminations	Consolidated
OPERATING REVENUE:
Natural gas operations	$ 10,235,666	$ -	$ -	$ -	$ (76,900)	$ 10,158,766
Marketing and Production	-	2,137,068	-	-	(1,498,597)	638,471
Pipeline operations	-	-	104,461	-	-	104,461
Total operating revenue	10,235,666	2,137,068	104,461	-	(1,575,497)	10,901,698

COST OF SALES:
Gas purchased	4,879,927	-	-	-	(76,900)	4,803,027
Gas - wholesale	-	1,879,531	-	-	(1,498,597)	380,934
Total Cost of Sales	4,879,927	1,879,531	-	-	(1,575,497)	5,183,961
GROSS MARGIN	$ 5,355,739	$ 257,537	$ 104,461	$ -	$ -	$ 5,717,737

OPERATING (LOSS) INCOME:	$ (678,894)	$ 52,455	$ 70,544	$ -	$ -	$ (555,895)

NET (LOSS) INCOME	$ (325,729)	$ 274,534	$ 82,563	$ (76,073)	$ -	$ (44,705)

Total Assets	110,032,010	5,463,177	726,574	57,041,165	(51,898,609)	$ 121,364,317
Goodwill	13,929,745	-	-	-	-	$ 13,929,745

Three Months Ended September 30, 2009
		Marketing
	Natural Gas	and	Pipeline	Corporate
	Operations	Production	Operations	and Other	Eliminations	Consolidated
OPERATING REVENUE:
Natural gas operations	$ 6,216,254	$ -	$ -	$ -	$ (81,892)	$ 6,134,362
Marketing and Production	-	3,525,079	-	-	(1,447,770)	2,077,309
Pipeline operations	-	-	114,417	-	-	114,417
Total operating revenue	6,216,254	3,525,079	114,417	-	(1,529,662)	8,326,088

COST OF SALES:
Gas purchased	2,479,931	-	-	-	(81,892)	2,398,039
Gas - wholesale	-	3,186,164	-	-	(1,447,770)	1,738,394
Total Cost of Sales	2,479,931	3,186,164	-	-	(1,529,662)	4,136,433
GROSS MARGIN	$ 3,736,323	$ 338,915	$ 114,417	$ -	$ -	$ 4,189,655

OPERATING INCOME (LOSS):	$ 179,036	$ (2,186)	$ 73,488	$ (5,829)	$ -	$ 244,509

NET INCOME (LOSS)	$ 9,883	$ (12,028)	$ 73,787	$ (244,115)	$ -	$ (172,473)

Total Assets	55,539,568	5,965,017	765,827	38,365,563	(31,637,562)	$ 68,998,413
Goodwill	-	-	-	-	-	$ -

Gas Natural Inc. and Subsidiaries Consolidated Segment Statements of Operations *(unaudited)*
Nine Months Ended September 30, 2010
		Marketing
	Natural Gas	and	Pipeline	Corporate
	Operations	Production	Operations	and Other	Eliminations	Consolidated
OPERATING REVENUE:
Natural gas operations	$ 56,581,131	$ -	$ -	$ -	$ (234,096)	$ 56,347,035
Marketing and Production	-	11,325,249	-	-	(5,700,446)	5,624,803
Pipeline operations	-	-	319,418	-	-	319,418
Total operating revenue	56,581,131	11,325,249	319,418	-	(5,934,542)	62,291,256

COST OF SALES:
Gas purchased	32,577,699	-	-	-	(234,096)	32,343,603
Gas - wholesale	-	10,135,599	-	-	(5,700,446)	4,435,153
Total Cost of Sales	32,577,699	10,135,599	-	-	(5,934,542)	36,778,756
GROSS MARGIN	$ 24,003,432	$ 1,189,650	$ 319,418	$ -	$ -	$ 25,512,500

OPERATING INCOME (LOSS):	$ 5,882,195	$ 609,916	$ 169,875	$ (11,364)	$ -	$ 6,650,622

NET INCOME (LOSS)	$ 3,653,545	$ 308,729	$ 143,283	$ (21,538)	$ -	$ 4,084,019

Total Assets	110,032,010	5,463,177	726,574	57,041,165	(51,898,609)	$ 121,364,317
Goodwill	13,929,745	-	-	-	-	$ 13,929,745

Nine Months Ended September 30, 2009
		Marketing
	Natural Gas	and	Pipeline	Corporate
	Operations	Production	Operations	and Other	Eliminations	Consolidated
OPERATING REVENUE:
Natural gas operations	$ 42,273,153	$ -	$ -	$ -	$ (452,915)	$ 41,820,238
Marketing and Production	-	14,678,662	-	-	(4,939,008)	9,739,654
Pipeline operations	-	-	338,484	-	-	338,484
Total operating revenue	42,273,153	14,678,662	338,484	-	(5,391,923)	51,898,376

COST OF SALES:
Gas purchased	27,315,285	-	-	-	(452,915)	26,862,370
Gas - wholesale	-	12,763,129	-	-	(4,939,008)	7,824,121
Total Cost of Sales	27,315,285	12,763,129	-	-	(5,391,923)	34,686,491
GROSS MARGIN	$ 14,957,868	$ 1,915,533	$ 338,484	$ -	$ -	$ 17,211,885

OPERATING INCOME (LOSS):	$ 3,955,605	$ 1,184,487	$ 197,590	$ (5,829)	$ -	$ 5,331,853

NET INCOME (LOSS)	$ 2,107,360	$ 677,152	$ 146,513	$ (454,690)	$ -	$ 2,476,335

Total Assets	55,539,568	5,965,017	765,827	38,365,563	(31,637,562)	$ 68,998,413
Goodwill	-	-	-	-	-	$ -

Gas Natural Inc. and Subsidiaries Consolidated Balance Sheets *(unaudited)*
		September 30,		December 31,
		2010	2009	2009
	ASSETS
	Current Assets:
	Cash	$ 6,383,427	$ 965,906	$ 2,752,168
	Marketable securities	281,350	5,210,658	4,411,171
	Accounts and notes receivable
	less $222,763, $217,052 and $233,332, respectively,
	allowance for bad debt	3,872,006	2,784,106	7,579,974
	Accounts and notes receivable - related parties	504,715	-	-
	Unbilled gas	1,469,254	751,427	2,869,826
	Natural gas and propane inventories	7,283,180	6,865,775	5,251,942
	Materials and supplies	1,502,701	1,228,564	1,018,673
	Prepayments and other	1,398,199	735,013	552,641
	Income tax receivable	1,443,086	-	-
	Recoverable cost of gas purchases	1,482,185	505,823	641,755
	Deferred tax asset	515,767	1,549,508	562,936
	Total current assets	26,135,870	20,596,780	25,641,086

	Property, Plant and Equipment, Net	73,192,358	39,771,223	41,203,668

	Deferred Tax Assets - Long-Term	4,344,579	4,955,820	7,550,970
	Deferred Charges	1,815,924	2,219,800	2,094,468
	Other Investments	814,296	1,389,026	784,363
	Goodwill	13,929,745	-	1,056,771
	Customer Relationships	667,875	-	-
	Note Receivable - Related Party	48,119	-	-
	Other Assets	415,551	65,764	294,356
	*TOTAL ASSETS*	$ 121,364,317	$ 68,998,413	$ 78,625,682

	Please refer to the notes as filed on Form 10-Q that are an integral part of these condensed financial statements.

Gas Natural Inc. and Subsidiaries Consolidated Balance Sheets, Continued *(unaudited)*
		September 30,		December 31,
		2010	2009	2009
	LIABILITIES AND CAPITALIZATION
	Current Liabilities:
	Checks issued in excess of amounts on deposit	$ 709,779	$ 817,896	$ 663,777
	Accounts payable	6,187,750	3,746,211	5,530,645
	Accounts payable - related parties	1,109,985	-	-
	Line of credit	18,200,434	9,950,000	14,651,265
	Notes payable	5,041,795	-	-
	Notes payable - related parties	1,704,345	-	-
	Accrued taxes	-	335,362	534,710
	Accrued and other current liabilities	8,133,109	4,731,957	4,594,883
	Accrued liabilities - related parties	215,195	-	-
	Overrecovered gas purchases	296,545	2,590,218	1,452,580
	Total current liabilities	41,598,937	22,171,644	27,427,860

	Other Obligations:
	Deferred investment tax credits	202,707	223,769	218,503
	Other long-term liabilities	3,153,543	2,380,575	2,291,511
	Total	3,356,250	2,604,344	2,510,014
	Long-Term Debt	22,157,652	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,
	6,073,676, 4,303,208, and 4,361,869 shares outstanding
	at September 30, 2010 and 2009, and December 31, 2009,
	respectively	911,051	653,494	654,280
	Treasury stock	-	(8,012)	-
	Capital in excess of par value	23,393,993	5,999,601	6,514,851
	Capital in excess of par value - noncontrolling interest	-	-	100,989
	Accumulated other comprehensive income	50,542	(17,049)	146,701
	Retained earnings	29,895,892	24,594,391	28,270,987
	Total stockholders' equity	54,251,478	31,222,425	35,687,808
	TOTAL CAPITALIZATION	76,409,130	44,222,425	48,687,808
	*TOTAL LIABILITIES AND CAPITALIZATION*	$ 121,364,317	$ 68,998,413	$ 78,625,682

	Please refer to the notes as filed on Form 10-Q that are an integral part of these condensed financial statements.

Gas Natural Inc. and Subsidiaries Consolidated Statements of Cash Flows *(unaudited)*
	Nine Months Ended
	September 30,
	2010	2009

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,084,019	$ 2,476,335
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, amortization, and accretion including
deferred charges and financing costs	2,926,560	1,930,612
Stock-based compensation	62,829	74,563
Gain on sale of securities	(159,520)	-
Investment tax credit	(15,796)	(15,796)
Deferred income taxes	1,098,029	249,329
Changes in assets and liabilities:
Accounts and notes receivable	12,736,746	8,734,299
Accounts and notes receivable - related parties	(488,205)	-
Natural gas and propane inventories	(1,399,660)	3,026,027
Accounts payable	(6,542,664)	(1,822,606)
Accounts payable - related parties	570,495	-
Accrued liabilities - related parties	215,195	-
Recoverable/refundable cost of gas purchases	(2,704,976)	3,102,822
Prepayments and other	(579,352)	(312,499)
Accrued interest - related parties	52,799	-
Other assets	(1,581,330)	30,142
Other liabilities	(1,424,044)	67,398
Net cash provided by operating activities	6,851,125	17,540,626

CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures	(3,957,184)	(6,730,849)
Purchase of marketable securities	(52,948)	(1,342,911)
Sale of marketable securities	4,185,867	-
Purchase of Cut Bank shares	(100,989)	-
Purchase of Kidron investment	(105,078)	-
Cash acquired in acquisitions	144,203	-
Other investments	(34,882)	(307,603)
Customer advances received for construction	138,443	(33,249)
Increase from contributions in aid of construction	(65,689)	69,800
Net cash provided by (used in) investing activities	151,743	(8,344,812)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt	(679,408)	-
Proceeds from lines of credit	28,650,000	14,200,000
Proceeds from other notes payable	20,909	-
Repayment of notes payable and lines of credit	(28,700,000)	(21,799,967)
Other short-term borrowings	10,407	-
Repayments of other short-term borrowings	(214,605)	-
Dividends paid	(2,458,912)	(1,695,470)
Net cash used in financing activities	(3,371,609)	(9,295,437)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,631,259	(99,623)

CASH AND CASH EQUIVALENTS:
Beginning of period	2,752,168	1,065,529
End of period	$ 6,383,427	$ 965,906

Please refer to the notes as filed on Form 10-Q that are an integral part of these condensed financial statements.