Gas Natural Inc. Reports Third Quarter 2012 Results
Continued customer growth in Maine and North Carolina
MENTOR, Ohio, Nov. 13, 2012 /PRNewswire/ -- Gas Natural Inc. (NYSE MKT: EGAS) ("Gas Natural" or the "Company"), a holding company operating natural gas utilities serving approximately 70,000 customers in seven states, reported financial results for the third quarter ended September 30, 2012.
Consolidated net loss for the third quarter of 2012 was $671,000, or ($0.08) per diluted share, compared with net income of $130,000, or $0.02 per diluted share, for the third quarter of 2011. The
year-over-year change reflects increased acquisition costs and a $779,000 decrease in the Company's Propane Operations segment resulting in a net loss of $217,000. The 2011 period included a pre-tax gain of $1.1 million on the bargain purchase of the assets of Independence Oil & LP Gas, Inc.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "We are actively expanding our systems in our high-growth Maine and North Carolina markets, and as a result, we captured more natural gas customers. Importantly, throughout 2012, we have maintained our growth strategy through natural gas utility growth and acquisitions, and continued to make prudent investments, such as our recently formed liquefied natural gas line of business."
For the nine months ended September 30, 2012, consolidated net income decreased to $1.9 million from $4.8 million in the same period in 2011, which reflects a $1.4 million decrease in net income from the Natural Gas Operations segment primarily due to warmer weather in all of the Company's service areas (see the Heating Degree Days chart in the attached table) and a $1.0 million decrease in net income from the Company's Propane Operations segment primarily due to the benefit that was recorded in the prior-year period for the above mentioned bargain purchase gain. Acquisition expenses for the year-to-date-period were $826,000, up from $87,000 in the comparable period of 2011, while interest expense also increased to $1.9 million from $1.5 million due to borrowings on the Company's credit facilities. On a per diluted share basis, net income was $0.23 and $0.58 for the first nine months of 2012 and 2011, respectively.
Maine Pipeline Acquisition
On September 25, 2012, Gas Natural closed on the acquisition of a leasehold interest in a 189-mile, 6" pipeline and corridor easement running from Searsport to Limestone, Maine ("Loring Pipeline") and various parcels of land. The Company was the successful bidder at a public foreclosure auction for the Loring Pipeline lease and related property. The purchase included total consideration of $4.5 million which was comprised of $2.25 million in cash and 210,951 shares of the Company's common stock valued at a price of $10.67 per share.
Mr. Osborne noted, "We have identified Maine as a strategic growth market, and our acquisition of the Loring Pipeline will broaden our geographic reach within the state. Importantly, it offers us the ability to market natural gas to a large number of potential industrial and residential customers, where natural gas is extremely competitive. We are consistently looking to expand our utility operations geographically, through customer expansion and strategic acquisitions."
Natural Gas Operations Segment
The Company annually distributes over 32 billion cubic feet of natural gas to approximately 70,000 customers through regulated utilities operating in Kentucky, Maine, Montana, North Carolina, Ohio, Pennsylvania, and Wyoming.
Natural Gas Operations Income Statement
|
|||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||
($ in thousands) |
2012 |
2011 |
2012 |
2011 |
|||||||||
Natural Gas Operations |
|||||||||||||
Operating revenue |
$ 10,458 |
$ 10,349 |
$ 53,108 |
$ 65,664 |
|||||||||
Gas Purchased |
4,164 |
4,548 |
26,849 |
38,841 |
|||||||||
Gross Margin |
6,294 |
5,801 |
26,259 |
26,823 |
|||||||||
Operating expenses |
6,732 |
6,335 |
20,452 |
19,569 |
|||||||||
Operating income (loss) |
(438) |
(534) |
5,807 |
7,254 |
|||||||||
Other income (expense) |
183 |
(230) |
591 |
97 |
|||||||||
Income (loss) before interest and taxes |
(255) |
(764) |
6,398 |
7,351 |
|||||||||
Interest expense |
(601) |
(526) |
(1,831) |
(1,379) |
|||||||||
Income (loss) before income taxes |
(856) |
(1,290) |
4,567 |
5,972 |
|||||||||
Income tax benefit (expense) |
274 |
827 |
(1,837) |
(1,817) |
|||||||||
Net Income (loss) |
$ (582) |
$ (463) |
$ 2,730 |
$ 4,155 |
|||||||||
The Natural Gas Operations segment reported a net loss of $582,000 in the third quarter of 2012 compared with a net loss of $463,000 in the same period of 2011. The change reflects a $553,000 decrease in tax benefit due mostly from adjustments made to the true-up of prior-year tax returns. The 2012 period included expense of $87,000 related to the true-up, while the 2011 period included a tax benefit of $333,000. Customer growth in the Company's Maine and North Carolina service territories drove the gross margin increase of $493,000 to $6.3 million for the third quarter of 2012 from $5.8 million for the same period of 2011. Full service distribution volumes delivered increased 41 MMcf to 914 MMcf in the third quarter of 2012 on higher demand from Maine and North Carolina.
For the nine months ended September 30, 2012, the Natural Gas Operations segment contributed net income of $2.7 million compared with $4.2 million for the first nine months of 2011. Gross margin for the first nine months of 2012 declined to $26.3 million, primarily due to warmer weather when compared with the prior-year period and normal (see the Heating Degree Days chart in the attached table). For the first nine months of 2012, volumes were down 935 MMcf to 5,754 MMcf.
Operating expenses increased by $397,000 to $6.7 million in the third quarter of 2012 from $6.3 million in the prior-year third quarter due to higher depreciation from increased capital expenditures and $105,000 in additional operating expenses from the Public Gas Company ("PGC") acquisition. Operating income as a percent of gross margin was 22.1% in the first nine months of 2012 compared with 27.0% in the same period in 2011.
Other income in the third quarter of 2012 increased to $183,000 from an expense of $230,000 in the prior-year period as 2011 included $300,000 of expense related to the conclusion of an arbitration case in a contract dispute. Other income for the nine month period ending September 30, 2012 was $591,000, an increase of $494,000, reflecting prior-year expenses associated with the contract arbitration and increased service sales. Interest expense during the quarter and year-to-date period increased as a result of the higher line usage and increased debt levels.
Other Operating Segments
The Marketing and Production segment reported net income of $327,000 for the third quarter of 2012 compared with net income $49,000 for the same period in 2011. The increase was primarily due to adjustments in taxes as the 2012 and 2011 periods each included a tax benefit from the true-up to the prior-year's tax return of $306,000 and $9,000 respectively, accounting for the decrease in expense. For the nine months ended September 30, 2012, the Marketing and Production segment contributed net income of $386,000 compared with $158,000 for the nine months ended September 30, 2011.
The Pipeline Operations segment contributed net income of $99,000 and $160,000 from the third quarter and first nine months of 2012, respectively, a slight increase from the comparable periods in 2011.
The Propane Operations segment reported a net loss of $217,000 in the third quarter of 2012 and net loss of $469,000 for the year-to-date period. The 2011 comparable quarter included only two months of operations as well as the bargain purchase gain.
Balance Sheet and Cash Management
Cash and cash equivalents as of September 30, 2012 were $1.5 million, down from the December 31, 2011 balance of $10.5 million. During 2012, the Company used $2.25 million to acquire the Loring Pipeline and $1.6 million for PGC.
Cash provided by operating activities decreased by $5.1 million to $7.4 million in the first nine months of 2012 compared with $12.5 million in the same period of the prior year. The change reflects lower net income and working capital changes including the recoverable cost of gas, cash paid for inventory and decrease in deferred tax expense.
Capital expenditures for first nine months of 2012 totaled $13.1 million compared with $15.0 million in the first nine months 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. Capital expenditures for 2012 are expected to total between $17 million to
$18 million.
The Company maintains two revolving credit facilities with $18.4 million in use at September 30, 2012 compared with $23.2 million at the end of 2011. Long-term debt was $41.3 million at the end of the third quarter of 2012 compared with 2011 year-end balance of $31.4 million.
On September 20, 2012, Energy West Incorporated, a Gas Natural subsidiary, renewed its existing
$30 million revolving credit facility and entered into a new $10 million term loan through April 2017. The term loan includes an interest rate of LIBOR plus 175 to 225 basis points with an interest rate swap provision that allows for the interest rate to be fixed in the future.
Subsequent the end of the third quarter, on October 24, 2012, the Company's Ohio subsidiaries, Northeast Ohio Natural Gas Corp., Orwell Natural Gas Corp. and Brainard Gas Corp., entered into a new, five-year senior secured fixed rate note for $2.99 million with Sun Life Assurance Company of Canada. The credit facility will be used to finance ongoing capital expenditures in Ohio.
About Gas Natural Inc.
Gas Natural Inc., a holding company, 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 Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina and Kentucky. 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. Its strategy for growth is to expand throughput in the Maine and North Carolina markets while looking for acquisitions that are either adjacent to its existing utilities or in under saturated markets.
The Company's toll-free number is 800-570-5688. Gas Natural Inc. regularly posts information on its website at www.egas.net.
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 |
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 |
Nine Months Ended |
|||||||||
September 30, |
September 30, |
|||||||||
2012 |
2011 |
2012 |
2011 |
|||||||
REVENUES |
||||||||||
Natural gas operations |
$10,458,202 |
$ 10,348,819 |
$ 53,107,834 |
$ 65,663,664 |
||||||
Marketing and production |
1,809,832 |
855,715 |
4,757,280 |
4,156,882 |
||||||
Pipeline operations |
95,162 |
106,351 |
305,039 |
314,736 |
||||||
Propane operations |
605,262 |
1,009,844 |
3,075,972 |
1,009,844 |
||||||
Total revenues |
12,968,458 |
12,320,729 |
61,246,125 |
71,145,126 |
||||||
COST OF SALES |
||||||||||
Natural gas purchased |
4,164,358 |
4,548,224 |
26,848,575 |
38,840,724 |
||||||
Marketing and production |
1,560,762 |
585,810 |
3,806,489 |
3,193,596 |
||||||
Propane purchased |
448,672 |
875,305 |
2,298,423 |
875,305 |
||||||
Total cost of sales |
6,173,792 |
6,009,339 |
32,953,487 |
42,909,625 |
||||||
GROSS MARGIN |
6,794,666 |
6,311,390 |
28,292,638 |
28,235,501 |
||||||
OPERATING EXPENSES |
||||||||||
Distribution, general, and administrative |
4,899,620 |
4,635,388 |
15,349,052 |
13,922,684 |
||||||
Maintenance |
316,491 |
235,635 |
929,448 |
792,827 |
||||||
Depreciation and amortization |
1,327,095 |
1,153,430 |
3,874,911 |
3,256,977 |
||||||
Accretion |
41,354 |
35,849 |
118,988 |
105,262 |
||||||
Taxes other than income |
923,594 |
842,786 |
2,741,390 |
2,589,732 |
||||||
Total operating expenses |
7,508,154 |
6,903,088 |
23,013,789 |
20,667,482 |
||||||
OPERATING INCOME (LOSS) |
(713,488) |
(591,698) |
5,278,849 |
7,568,019 |
||||||
LOSS FROM UNCONSOLIDATED AFFILIATE |
(3,693) |
(2,024) |
(8,468) |
(85,174) |
||||||
OTHER INCOME (EXPENSE), net |
151,884 |
(229,805) |
502,599 |
103,639 |
||||||
GAIN ON BARGAIN PURCHASE |
- |
1,054,861 |
- |
1,054,861 |
||||||
ACQUISITION EXPENSE |
(209,491) |
(31,820) |
(825,967) |
(87,354) |
||||||
STOCK SALE EXPENSE |
(19,114) |
- |
(274,393) |
(46,123) |
||||||
INTEREST EXPENSE |
(637,366) |
(552,341) |
(1,927,232) |
(1,458,194) |
||||||
INCOME (LOSS) BEFORE INCOME TAXES |
(1,431,268) |
(352,827) |
2,745,388 |
7,049,674 |
||||||
INCOME TAX BENEFIT (EXPENSE) |
760,047 |
482,353 |
(857,954) |
(2,285,056) |
||||||
NET INCOME (LOSS) |
(671,221) |
129,526 |
1,887,434 |
4,764,618 |
||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||||
Unrealized gain (loss) on available |
||||||||||
for sale securities, net of tax |
(4,221) |
30,076 |
(10,552) |
49,697 |
||||||
COMPREHENSIVE INCOME (LOSS) |
$ (675,442) |
$ 9,602 |
$ 1,876,882 |
$ 4,814,315 |
||||||
EARNINGS (LOSS) PER SHARE – BASIC |
$ (0.08) |
$ 0.02 |
$ 0.23 |
$ 0.58 |
||||||
AND DILUTED |
||||||||||
WEIGHTED AVERAGE DIVIDENDS DECLARED |
||||||||||
PER COMMON SHARE |
$ 0.182 |
$ 0.135 |
$ 0.452 |
$ 0.405 |
||||||
WEIGHTED AVERAGE SHARES |
||||||||||
OUTSTANDING - BASIC |
8,186,791 |
8,152,487 |
8,165,874 |
8,151,370 |
||||||
WEIGHTED AVERAGE SHARES |
||||||||||
OUTSTANDING - DILUTED |
8,186,791 |
8,160,048 |
8,172,423 |
8,159,326 |
||||||
Gas Natural Inc. and Subsidiaries |
|||
September 30, |
December 31, |
||
2012 |
2011 |
||
ASSETS |
|||
CURRENT ASSETS |
|||
Cash and cash equivalents |
$ 1,492,279 |
$ 10,504,845 |
|
Marketable securities |
351,000 |
367,875 |
|
Accounts receivable |
|||
Trade, less allowance for doubtful accounts of $787,933 |
|||
and $630,632, respectively |
5,718,241 |
9,381,625 |
|
Related parties |
565,608 |
519,084 |
|
Unbilled gas |
1,388,951 |
4,232,854 |
|
Note receivable - related parties, current portion |
10,807 |
10,256 |
|
Inventory |
|||
Natural gas and propane |
6,035,830 |
6,967,739 |
|
Materials and supplies |
2,497,148 |
1,958,858 |
|
Prepaid income taxes |
1,064,448 |
1,584,869 |
|
Prepayments and other |
2,302,544 |
741,101 |
|
Recoverable cost of gas purchases |
2,915,817 |
2,627,416 |
|
Deferred tax asset |
1,046,874 |
1,061,314 |
|
Total current assets |
25,389,547 |
39,957,836 |
|
PROPERTY, PLANT AND EQUIPMENT, net |
107,871,413 |
97,612,257 |
|
OTHER ASSETS |
|||
Notes receivable - related parties, less current portion |
27,233 |
35,408 |
|
Regulatory assets |
|||
Property taxes |
378,415 |
590,464 |
|
Income taxes |
452,645 |
452,645 |
|
Rate case costs |
211,871 |
205,714 |
|
Debt issuance costs, net |
1,766,671 |
869,593 |
|
Goodwill |
14,750,924 |
14,607,952 |
|
Customer relationships |
622,208 |
639,333 |
|
Investment in unconsolidated affiliate |
321,883 |
330,351 |
|
Restricted cash |
1,710,155 |
949,907 |
|
Other assets |
4,615,845 |
159,954 |
|
Total other assets |
24,857,850 |
18,841,321 |
|
TOTAL ASSETS |
$ 158,118,810 |
$156,411,414 |
Gas Natural Inc. and Subsidiaries |
|||
September 30, |
December 31, |
||
2012 |
2011 |
||
LIABILITIES AND CAPITALIZATION |
|||
CURRENT LIABILITIES |
|||
Checks in excess of amounts on deposit |
$ 862,191 |
$ 1,027,376 |
|
Lines of credit |
18,420,755 |
23,160,000 |
|
Accounts payable |
|||
Trade |
5,039,778 |
8,755,623 |
|
Related parties |
179,441 |
191,763 |
|
Notes payable, current portion |
508,387 |
7,885 |
|
Accrued liabilities |
|||
Taxes other than income |
2,313,134 |
3,018,964 |
|
Vacation |
106,092 |
115,940 |
|
Employee benefit plans |
85,884 |
140,149 |
|
Interest |
363,980 |
30,688 |
|
Deferred payments received from levelized billing |
2,936,980 |
2,948,188 |
|
Customer deposits |
731,472 |
707,062 |
|
Property tax settlement, current portion |
242,128 |
242,128 |
|
Related parties |
279,063 |
635,192 |
|
Other current liabilities |
829,427 |
1,280,670 |
|
Overrecovered gas purchases |
1,733,735 |
2,237,827 |
|
Total current liabilities |
34,632,447 |
44,499,455 |
|
LONG-TERM LIABILITIES |
|||
Deferred investment tax credits |
160,583 |
176,379 |
|
Deferred tax liability |
3,901,483 |
2,908,167 |
|
Asset retirement obligation |
1,808,069 |
1,689,081 |
|
Customer advances for construction |
1,033,680 |
880,851 |
|
Regulatory liability for income taxes |
83,161 |
83,161 |
|
Regulatory liability for gas costs |
35,342 |
57,570 |
|
Total long-term liabilities |
7,022,318 |
5,795,209 |
|
NOTES PAYABLE, less current portion |
40,838,375 |
31,344,723 |
|
COMMITMENTS AND CONTINGENCIES |
|||
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, |
|||
8,368,627 and 8,154,301 shares issued and |
|||
outstanding, respectively |
1,255,238 |
1,223,145 |
|
Capital in excess of par value |
44,236,216 |
41,978,799 |
|
Accumulated other comprehensive income |
69,853 |
80,405 |
|
Retained earnings |
30,064,363 |
31,489,678 |
|
Total stockholders' equity |
75,625,670 |
74,772,027 |
|
TOTAL CAPITALIZATION |
116,464,045 |
106,116,750 |
|
TOTAL LIABILITIES AND CAPITALIZATION |
$ 158,118,810 |
$ 156,411,414 |
Gas Natural Inc. and Subsidiaries |
|||
2012 |
2011 |
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||
Net income |
$ 1,887,434 |
$ 4,764,618 |
|
Adjustments to reconcile net income to net cash provided |
|||
by operating activities |
|||
Depreciation and amortization |
3,874,911 |
3,256,977 |
|
Accretion |
118,988 |
105,262 |
|
Amortization of debt issuance costs |
177,379 |
106,748 |
|
Stock based compensation |
39,506 |
52,193 |
|
Loss on sale of assets |
35,929 |
30,916 |
|
Loss from unconsolidated affiliate |
8,468 |
85,174 |
|
Gain on bargain purchase |
- |
(1,054,861) |
|
Investment tax credit |
(15,797) |
(15,796) |
|
Deferred income taxes |
879,660 |
2,981,256 |
|
Changes in assets and liabilities |
|||
Accounts receivable, including related parties |
3,685,991 |
5,511,774 |
|
Unbilled gas |
2,843,903 |
4,479,284 |
|
Natural gas and propane inventory |
931,909 |
(1,853,006) |
|
Accounts payable, including related parties |
(3,480,190) |
(4,083,198) |
|
Recoverable/refundable cost of gas purchases |
(792,493) |
1,064,287 |
|
Prepayments and other |
(1,561,443) |
(371,745) |
|
Other assets |
(76,837) |
(1,520,188) |
|
Other liabilities |
(1,154,472) |
(993,626) |
|
Net cash provided by operating activities |
7,402,846 |
12,546,069 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|||
Capital expenditures |
(13,081,990) |
(14,968,603) |
|
Proceeds from sale of fixed assets |
59,092 |
43,522 |
|
Purchase of marketable securities |
- |
(13,304) |
|
Proceeds from related party note receivable |
7,624 |
7,111 |
|
Cash acquired in acquisition |
502 |
- |
|
Purchase of Public Gas Company, Inc. |
(1,551,478) |
- |
|
Purchase of Loring Pipeline |
(2,250,000) |
- |
|
Purchase of Independence Oil & LP Gas, Inc. |
- |
(1,275,656) |
|
Restricted cash |
- |
(1,807,425) |
|
Investment in unconsolidated affiliate |
- |
(303,600) |
|
Customer advances for construction |
152,829 |
60,720 |
|
Contributions in aid of construction |
130,908 |
2,725 |
|
Net cash used in investing activities |
(16,532,513) |
(18,254,510) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|||
Proceeds from lines of credit |
45,951,755 |
25,200,000 |
|
Repayment on lines of credit |
(50,691,000) |
(25,749,999) |
|
Proceeds from notes payable |
10,000,000 |
18,355,215 |
|
Repayments of notes payable |
(5,846) |
(9,870,240) |
|
Repayments of related party notes payable |
- |
(49,361) |
|
Debt issuance costs |
(1,074,456) |
(462,944) |
|
Restricted cash |
(760,248) |
(949,432) |
|
Dividends paid |
(3,303,104) |
(3,301,280) |
|
Net cash provided by financing activities |
117,101 |
3,171,959 |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
(9,012,566) |
(2,536,482) |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
10,504,845 |
13,026,585 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 1,492,279 |
$10,490,103 |
Gas Natural Inc. and Subsidiaries
|
||||||||||||
Three Months Ended September 30, 2012
|
||||||||||||
Natural Gas |
Marketing and |
Pipeline |
Propane |
Corporate and |
||||||||
Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
OPERATING REVENUES |
$10,535,653 |
$2,966,366 |
$ 95,162 |
$ 605,262 |
$ - |
$ 14,202,443 |
||||||
Intersegment eliminations |
(77,451) |
(1,156,534) |
- |
- |
- |
(1,233,985) |
||||||
Total operating revenue |
10,458,202 |
1,809,832 |
95,162 |
605,262 |
- |
12,968,458 |
||||||
COST OF SALES |
4,241,809 |
2,717,296 |
- |
448,672 |
- |
7,407,777 |
||||||
Intersegment eliminations |
(77,451) |
(1,156,534) |
- |
- |
- |
(1,233,985) |
||||||
Total cost of sales |
4,164,358 |
1,560,762 |
- |
448,672 |
6,173,792 |
|||||||
GROSS MARGIN |
$ 6,293,844 |
$ 249,070 |
$ 95,162 |
$ 156,590 |
$ - |
$ 6,794,666 |
||||||
OPERATING EXPENSES |
6,731,563 |
181,982 |
39,302 |
449,716 |
105,591 |
7,508,154 |
||||||
OPERATING INCOME (LOSS) |
$ (437,719) |
$ 67,088 |
$ 55,860 |
$(293,126) |
$(105,591) |
$ (713,488) |
||||||
NET INCOME (LOSS) |
$ (581,901) |
$326,688 |
$ 99,285 |
$(217,634) |
$(297,659) |
$ (671,221) |
Three Months Ended September 30, 2011
|
||||||||||||
Natural Gas |
Marketing and |
Pipeline |
Propane |
Corporate and |
||||||||
Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
OPERATING REVENUES |
$ 10,426,451 |
$ 2,407,303 |
$ 106,351 |
$ 1,009,844 |
$ - |
$ 13,949,949 |
||||||
Intersegment eliminations |
(77,632) |
(1,551,588) |
- |
- |
- |
(1,629,220) |
||||||
Total operating revenue |
10,348,819 |
855,715 |
106,351 |
1,009,844 |
- |
12,320,729 |
||||||
COST OF SALES |
4,625,856 |
2,137,398 |
- |
875,305 |
- |
7,638,559 |
||||||
Intersegment eliminations |
(77,632) |
(1,551,588) |
- |
- |
- |
(1,629,220) |
||||||
Total cost of sales |
4,548,224 |
585,810 |
- |
875,305 |
- |
6,009,339 |
||||||
GROSS MARGIN |
$ 5,800,595 |
$ 269,905 |
$ 106,351 |
$ 134,539 |
$ - |
$ 6,311,390 |
||||||
OPERATING EXPENSES |
6,334,711 |
187,723 |
29,758 |
289,466 |
61,430 |
6,903,088 |
||||||
OPERATING INCOME (LOSS) |
$ (534,116) |
$ 82,182 |
$ 76,593 |
$ (154,927) |
$ (61,430) |
$ (591,698) |
||||||
NET INCOME (LOSS) |
$ (463,484) |
$ 48,712 |
$ 47,540 |
$ 561,986 |
$ (65,228) |
$ 129,526 |
Gas Natural Inc. and Subsidiaries
|
||||||||||||
Nine Months Ended September 30, 2012
|
||||||||||||
Natural Gas |
Marketing and |
Pipeline |
Propane |
Corporate and |
||||||||
Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
OPERATING REVENUES |
$ 53,349,493 |
$ 8,743,756 |
$ 305,039 |
$ 3,075,972 |
$ - |
$ 65,474,260 |
||||||
Intersegment eliminations |
(241,659) |
(3,986,476) |
- |
- |
- |
(4,228,135) |
||||||
Total operating revenue |
53,107,834 |
4,757,280 |
305,039 |
3,075,972 |
- |
61,246,125 |
||||||
COST OF SALES |
27,090,234 |
7,792,965 |
- |
2,298,423 |
- |
37,181,622 |
||||||
Intersegment eliminations |
(241,659) |
(3,986,476) |
- |
- |
- |
(4,228,135) |
||||||
Total cost of sales |
26,848,575 |
3,806,489 |
- |
2,298,423 |
- |
32,953,487 |
||||||
GROSS MARGIN |
$ 26,259,259 |
$ 950,791 |
$ 305,039 |
$ 777,549 |
$ - |
$ 28,292,638 |
||||||
OPERATING EXPENSES |
20,452,543 |
733,384 |
139,691 |
1,447,668 |
240,503 |
23,013,789 |
||||||
OPERATING INCOME (LOSS) |
$ 5,806,716 |
$ 217,407 |
$ 165,348 |
$ (670,119) |
$ (240,503) |
$ 5,278,849 |
||||||
NET INCOME (LOSS) |
$ 2,729,686 |
$ 386,429 |
$ 160,542 |
$ (468,712) |
$ (920,511) |
$ 1,887,434 |
||||||
Goodwill |
$ 14,750,924 |
$ - |
$ - |
$ - |
$ - |
$ 14,750,924 |
||||||
Investment in unconsolidated |
$ - |
$ 321,884 |
$ - |
$ - |
$ - |
$ 321,884 |
||||||
Total assets |
$156,931,213 |
$ 8,392,069 |
$ 820,834 |
$ 2,801,616 |
$ 65,257,002 |
$ 234,202,734 |
||||||
Intersegment eliminations |
(17,941,337) |
(247,424) |
(19,422) |
(300,492) |
(57,575,249) |
(76,083,924) |
||||||
Total assets |
$138,989,876 |
$ 8,144,645 |
$ 801,412 |
$ 2,501,124 |
$ 7,681,753 |
$ 158,118,810 |
Nine Months Ended September 30, 2011
|
||||||||||||
Natural Gas |
Marketing and |
Pipeline |
Propane |
Corporate and |
||||||||
Operations |
Production |
Operations |
Operations |
Other |
Consolidated |
|||||||
OPERATING REVENUES |
$ 65,912,371 |
$ 9,957,521 |
$ 314,736 |
$ 1,009,844 |
$ - |
$ 77,194,472 |
||||||
Intersegment eliminations |
(248,707) |
(5,800,639) |
- |
- |
- |
(6,049,346) |
||||||
Total operating revenue |
65,663,664 |
4,156,882 |
314,736 |
1,009,844 |
- |
71,145,126 |
||||||
COST OF SALES |
39,089,431 |
8,994,235 |
- |
875,305 |
- |
48,958,971 |
||||||
Intersegment eliminations |
(248,707) |
(5,800,639) |
- |
- |
- |
(6,049,346) |
||||||
Total cost of sales |
38,840,724 |
3,193,596 |
- |
875,305 |
- |
42,909,625 |
||||||
GROSS MARGIN |
$ 26,822,940 |
$ 963,286 |
$ 314,736 |
$ 134,539 |
$ - |
$ 28,235,501 |
||||||
OPERATING EXPENSES |
19,568,006 |
574,879 |
125,747 |
289,466 |
109,384 |
20,667,482 |
||||||
OPERATING INCOME (LOSS) |
$ 7,254,934 |
$ 388,407 |
$ 188,989 |
$ (154,927) |
$ (109,384) |
$ 7,568,019 |
||||||
NET INCOME (LOSS) |
$ 4,155,383 |
$ 158,119 |
$ 112,094 |
$ 561,986 |
$ (222,964) |
$ 4,764,618 |
||||||
Goodwill |
$ 14,607,952 |
$ - |
$ - |
$ - |
$ - |
$ 14,607,952 |
||||||
Investment in unconsolidated affiliate |
$ - |
$ 645,042 |
$ - |
$ - |
$ - |
$ 645,042 |
||||||
Total assets |
$127,911,870 |
$ 5,283,146 |
$ 847,311 |
$ 2,957,575 |
$ 64,388,348 |
$ 201,388,250 |
||||||
Intersegment eliminations |
(6,394,130) |
(494,121) |
(28,100) |
- |
(49,829,951) |
(56,746,302) |
||||||
Total assets |
$121,517,740 |
$ 4,789,025 |
$ 819,211 |
$ 2,957,575 |
$ 14,558,397 |
$ 144,641,948 |
Gas Natural Inc. and Subsidiaries |
||||||||||||
Utility Throughput |
||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||
(in million cubic feet (MMcf)) |
2012 |
2011 |
2012 |
2011 |
||||||||
Full Service Distribution |
||||||||||||
Residential |
316 |
281 |
2,696 |
3,184 |
||||||||
Commercial |
548 |
555 |
2,924 |
3,384 |
||||||||
Industrial |
50 |
37 |
134 |
121 |
||||||||
Total full service |
914 |
873 |
5,754 |
6,689 |
||||||||
Transportation |
2,107 |
1,884 |
7,441 |
6,452 |
||||||||
Bucksport |
3,598 |
3,604 |
10,512 |
10,393 |
||||||||
Total Volumes |
6,619 |
6,361 |
23,707 |
23,534 |
||||||||
Heating Degree Days |
|||||||||||
Three Months Ended |
Percent (Warmer) Colder |
||||||||||
September 30, |
2012 Compared to |
||||||||||
Normal |
2012 |
2011 |
Normal |
2011 |
|||||||
Great Falls, MT |
366 |
177 |
176 |
(51.64%) |
0.57% |
||||||
Cody, WY |
257 |
100 |
112 |
(61.09%) |
(10.71%) |
||||||
Bangor, ME |
239 |
231 |
134 |
(3.35%) |
72.39% |
||||||
Elkin, NC |
30 |
72 |
60 |
140.00% |
20.00% |
||||||
Youngstown, OH |
183 |
190 |
121 |
3.83% |
57.02% |
||||||
Nine Months Ended |
Percent (Warmer) Colder |
||||||||||
September 30, |
2012 Compared to |
||||||||||
Normal |
2012 |
2011 |
Normal |
2011 |
|||||||
Great Falls, MT |
4,758 |
4,181 |
5,336 |
(12.13%) |
(21.65%) |
||||||
Cody, WY |
4,359 |
3,743 |
4,797 |
(14.13%) |
(21.97%) |
||||||
Bangor, ME |
5,046 |
4,456 |
4,994 |
(11.69%) |
(10.77%) |
||||||
Elkin, NC |
2,484 |
2,049 |
2,474 |
(17.51%) |
(17.18%) |
||||||
Youngstown, OH |
4,126 |
3,272 |
4,140 |
(20.70%) |
(20.97%) |
||||||
SOURCE Gas Natural Inc
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