SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1995
Commission File Number 0-643
Corning Natural Gas Corporation
(Exact name of registrant as specified in its charter)
New York 16-0397420
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification No.)
330 W. William St,. P.O. Box 58, Corning, New York 14830
607-936-3755
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if
changed since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes No
There were 460,000 shares of Common Stock outstanding at the
end of the quarter. There is only one class of Common Stock and
no Preference Stock outstanding.
Management's Discussion
Operating revenues for the quarter ending June 30, 1995
were $214,501 or 6% less than the quarter ending December 31,
1994 and $1,239,184 or 52% more than the quarter ending June 30,
1995.
Degree days for the quarter ending June 30, 1995 were 1168
or 54% less than the quarter ending December 31, 1994 and 86 or
10% more than the quarter ending June 30, 1995. Since much of
the Company's sales are dependent on weather conditions, the
effects of the changes in degree days are reflected in the total
MCF (thousand Cubic feet) deliveries.
Increase (Decrease)
From Quarter Ending
Actual MCF Deliveries 6/30/95
Quarter Ending 06/30/95 1,460,330
Quarter Ending 12/31/94 1,990,968 530,638
Quarter Ending 06/30/94 1,448,913 ( 11,417)
MCF deliveries include transportation of customer owned gas
for specific end use customers for which the Company receives a
fee equal to its normal markup for transporting the gas.
Operating expenses, made up largely of the cost of purchased
gas were $47,981 or 1% less than the quarter ending December
31, 1994 and $1,285,334 or 61% more than the quarter ending June
30, 1995.
Net Income was $238,540 or 88% less than the quarter ended
December 31, 1994 and $18,214 or 35% less than the quarter ending
June 30, 1995.
Since the Company's business is seasonal by quarters,
results for the first six months of 1995 should not be used as
an indication of what results for the full twelve months of 1995
may be.
In October, 1993, the Company commenced operating in the
deregulated environment brought on by the implementation of
Federal Energy Regulatory Commission Order 636. The Company now
makes purchasing decisions at the wellhead and must arrange and
monitor the delivery of gas through the national pipeline
network. This is a daily and even an hourly process. The
Company's gas supply portfolio is now comprised of numerous
contracts, short-term in length, ranging from 3 days to 2 years.
This is in stark contrast to the traditional long-term 20 year
contracts. Producer spot market prices change daily and escalate
during periods of peak demand. Another responsibility of the
Company under deregulation is the management of much greater
levels of storage gas. The Company held 608,150 Mcf in storage
at December 31, 1994 valued at $1,234,700 compared to 575,452 Mcf
with a value of $1,491,000 a year earlier. The system was
certainly put to the test in the first winter of deregulation,
and the Company came through the cold snap without any major
problems.
Internal generation of funds should be sufficient to meet
the needs of the Company coupled with some intermittent short-
term borrowings.
There has been no change in independent public accountants.
The Company has not filed any reports on Form 8-K for the quarter
ended June 30, 1995.
The information furnished herewith reflects all adjustments
which are in the opinion of management necessary to a fair
statement of the results for the period. Certain information and
footnote disclosure normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to SEC rules
and regulations, although the Company believes the disclosures
which are made are adequate to make the information presented not
misleading.
The condensed financial statements should be read in
conjunction with the financial statements and notes thereto
included in the Company's latest annual report on Form 10-KSB.
The statements contained herein have not been examined or
certified by a firm of certified public accountants.
There were no sales of unregistered securities (debt or
equity) during the fiscal quarter ending June 30, 1995.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CORNING NATURAL GAS CORPORATION
(Registrant)
Date August 14, 1995 THOMAS K. BARRY
Thomas K. Barry, Chairman of
the Board, President and
C.E.O.
Date August 14, 1995 GARY K. EARLEY
Gary K. Earley, Treasurer
CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
UNAUDITED
FORM 10 QSB
FOR QUARTER ENDED 6 MONTHS ENDED
06/30/95 06/30/94 06/30/95 06/30/94
Op Revenues $ 3,612,609 $ 2,373,425 $ 10,561,311 $ 11,147,601
Cost and Expense
Op Expenses 3,404,499 2,119,165 9,282,860 9,784 027
Interest Expense 188,059 198,261 410 605 393,208
Fed Income Tax 17,818 43,574 320,022 388,133
Other Deducts Net 2,350 5,624 5,304 12,495
Total Expenses 3,612,726 2,366,624 10,018,791 10,577,863
Op Income (117) 6,801 542,520 569,738
Other Income 4,360 7,484 12,226 16,879
Corning Natural Gas Appl. Corp.
Operating Revenues 468,545 461,490 939,087 919,784
Depreciation Expense 59,529 53,157 116,440 107,063
Other Opg Expenses 364,286 351,470 715,201 700,141
Federal Income Tax 15,559 19,520 40,803 38,298
Net Income Appl Corp 29,171 37,343 66,643 74,282
Net Income $ 33,414 $ 51,628 621,389 660,899
========= ========= ========== ==========
Earnings Per Share $ .073 $ 0.11 1.351 1.44
Dividend Per Share $ .31 .305 .62 .61
Total Dividends Paid $ 142,600 140,300 285,200 280,601
Shares of common stock outstanding were 460,000 at June 30,
1995. Earnings per share = Net Income as shown above divided by
460,000 shares. Dividends per share = Dividends paid divided by
shares outstanding at the time.
CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
FORM 10-QSB - UNAUDITED
June 30, 1995 June 30, 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 621,388 660,900
Adjustments to Reconcile Net
Income to Net Cash
Provided by Operating Activities:
Depreciation 285,444 323,916
All. for Funds Used During Const. 0 (3,182)
Changes in Assets and Liabilities:
(Increase) Decrease in:
Accounts Receivable 243,519 881,717
Materials, Supplies & Appliance
Inventory 442,578 714,846
Other Deferred Charges 2,089,476 1,543,998
Prepaid and Other Assets 127,982 (127,727)
Increase (Decrease) in:
Accounts Payable (143,482) (136,547)
Accrued General Taxes 72,885 30,179
Accrued Federal Income Tax 234,498 (75,884)
Deferred Federal Income Tax 18,619 (132,535)
Other Liabilities and Deferred
Credits (752,469) (1,372,104)
Net Cash Provided (used) by
Operating Activities 3,240,438 2,307,577
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (338,700) (416,951)
Allowance for Funds Used During
Construction 0 3,182
Net Cash Used in Investing Activities (338,700) (413,769)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings (Repayments) Under
Line-of-Credit Agreement (2,405,000) (1,465,000)
Dividends Paid (285,200) (280,601)
Repayment of Long-Term Debt 0 0
Restricted Funds used for
Qualified Additions 0 0
Common Stock Issued 0 0
Net Cash Provided (Used In)
Financing Activities (2,690,200) (1,745,601)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 211,538 148,207
CASH AND CASE EQUIVALENTS AT
BEGINNING OF PERIOD 183,086 203,837
CASH AND CASH EQUIVALENTS AT END OF PERIOD 394,624 352,044
=========== ===========
Supplemental Disclosures of Cash Flow
Information:
Cash Paid During The Year For:
Interest (Net of Amount Capitalized) 398,679 379,461
Income Taxes 61,750 491 360
CORNING NATURAL GAS CORPORATION
Consolidated Balance Sheet At June 30, 1995
Assets 06/30/95 12/31/94
Gas Utility Plant $ 18,437,035 $ 18,144,174
Non-Utility Principally Rented Gas Appl. 2,334,946 2,278,930
20,772,031 20,423,104
Less: Accum. Provision for Depreciation (7,219,730) (6,924,059)
$ 13,552,301 $ 13,499,045
Current Assets:
Cash and Equivalents 394,624 183,086
Restricted Short-Term Investments 0 0
Accounts Receivable 1,093,041 1,336,560
Materials, Supplies and Inventories 1,289,462 1,732,040
Prepayments and Other 684,783 812,765
Total Current Assets 3,461,910 4,064,451
Non-Current Assets:
Def. Tax Assets 532,061 1,016,661
Def. Debits - Acctg. for Income Taxes 654,722 518,923
Deferred Debits 1,250,823 3,340,299
Total Non-Current Assets 2,437,606 4,875,883
Total Assets $ 19,451,817 $ 22,439,379
========== ==========
Capitalization and Liabilities
Capitalization:
Common Stock 2,300,000 2,300,000
Premium on Capital Stock-Common 653,346 653,346
Retained Earnings 2,433,857 2,097,669
5,387,203 5,051,015
Long Term Debt 6,400,000 6,400,000
Total Capitalization 11,787,203 11,451,015
Current Liabilities:
Short Term Notes Payable 1,250,000 3,655,000
Accounts Payable 1,461,622 1,605,104
Customer Deposits and Accrued Int. 191,503 189,785
Accrued Federal Income Tax 234,498 0
Other Accrued Taxes 161,411 88,526
Current Maturities of Long Term Debt 100,000 100,000
Other Current and Accrued Liabilities 407,757 1,395,312
Total Current Liabilities 3,806,791 7,033,727
Accrued Deferred FIT 2,636,010 2,966,192
Reserves and Other Liabilities 1,221,813 988,445
Total Liabilities and Capitalization $ 19,451,817 $ 22,439,379
========== ==========
See Management's Discussion & Analysis on Page 5
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