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 September 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 September 30, 1995
were $2,268,998 or 60% less than the quarter ending December 31,
1994 and $17,344 or 1% less than the quarter ending September 30,
1994.
Degree days for the quarter ending September 30, 1995 were
1925
or 90% less than the quarter ending December 31, 1994 and -0- or
0%
more than the quarter ending September 30, 1994. 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 9/30/95
Quarter Ending 09/30/95 863,414
Quarter Ending 12/31/94 1,990,968 1,127,554
Quarter Ending 09/30/94 892,110 28,696
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 $1,576,634 or 46% less than the quarter ending December
31, 1994 and $11,798 or 1% more than the quarter ending September
30, 1994.
Net Income was $584,303 or 215% less than the quarter ended
December 31, 1994 and $35,975 or 13% less than the quarter ending
September 30, 1994.
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 September 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 September 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 September 13, 1995 THOMAS K. BARRY
Thomas K. Barry, Chairman of
the Board, President and
C.E.O.
Date September 13, 1995 GARY K. EARLEY
Gary K. Earley, Treasurer
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 September 13, 1995
Thomas K. Barry, Chairman of
the Board, President and
C.E.O.
Date September 13, 1995
Gary K. Earley, Treasurer
September 13, 1995
Division of Corporate Finance
Securities & Exchange Commission
500 N. Capitol Street, N.W.
Washington, DC 20549
Gentlemen:
Enclosed are eight (8) copies of our Company's quarterly
report 10-QSB for the quarter ending September 30, 1995.
Very truly yours,
Gary K. Earley
/deb
enclosures
September 13, 1995
Mr. George D. Vermilya, Vice President
First Colony Life Insurance Company
P.O. Box 1280
700 Main Street
Lynchburg, VA 24505
Dear Mr. Vermilya:
Enclosed is a copy of our Form 10-QSB for the quarter ended
September 30, 1995 as filed with the Securities & Exchange
Commission.
Very truly yours,
Gary K. Earley
/bac
enclosure
CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
UNAUDITED
FORM 10 QSB
FOR QUARTER ENDED
9 MONTHS
ENDED
Sept. 30, 1995 Sept. 30, 1994 Sept. 30,
1995
Sept. 30, 1994
Operating Revenues $ 1,558,112 $ 1,575,456 $
12,119,423 $
12,723,057
Cost and Expense
Operating Expenses 1,875,846 1,864,048
11,158,706
11,648,075
Interest Expense 207,541 205,716
618,146
598,924
Federal Income Tax ( 172,289) ( 156,616)
147,733
231,517
Other Deductions Net 2,208 2,532
7,512
15,027
Total Costs and Expenses 1,913,306 1,915,680
11,932,097
12,493,543
Operating Income ( 355,194) ( 340,224)
187,326
229,514
Other Income 3,450 5,035
15,676
21,914
Corning Natural Gas Appl. Corp.
Operating Revenues 508,671 548,515
1,447,758
1,468,299
Depreciation 57,338 53,912
173,778
160,975
Other Operating Expenses 389,797 402,506
1,104,998
1,102,647
Federal Income Tax 22,141 33,282
62,944
71,580
Net Income of Appl. Corp. 39,395 58,815
106,038
133,097
Net Income $( 312,349) $( 276,374)
309,040
384,525
========= =========
==========
==========
Earnings Per Share $ (.68) $ (.60)
.67
.84
Dividends Per Share $ .31 .305
.93
.92
Total Dividends Paid $ 142,600 140,300
427,800
420,901
Shares of common stock outstanding were 460,000 at September 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
Sept. 30, 1995 Sept.
30, 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 309,040
384,525
Adjustments to Reconcile Net
Income to Net Cash
Provided by Operating Activities:
Depreciation 513,790
487,866
All. for Funds Used During Const. 0
(4,937)
Changes in Assets and Liabilities:
(Increase) Decrease in:
Accounts Receivable 808,432
1,582,706
Materials, Supplies & Appliance
Inventory (185,368)
117,098
Other Deferred Charges 1,314,714
783,218
Prepaid and Other Assets 292,733
80,892
Increase (Decrease) in:
Accounts Payable (247,693)
(334,080)
Accrued General Taxes 151,183
(53,411)
Accrued Federal Income Tax 8,856
(203,932)
Deferred Federal Income Tax 27,901
(151,980)
Other Liabilities and Deferred
Credits (871,389)
(1,414,945)
Net Cash Provided (used) by
Operating Activities 2,122,199
1,273,020
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (1,123,614)
(688,448)
Allowance for Funds Used During
Construction 0
4,937
Net Cash Used in Investing Activities(1,123,614)
(683,511)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings (Repayments) Under
Line-of-Credit Agreement (390,000)
(50,000)
Dividends Paid (427,800)
(420,901)
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 (817,800)
(470,901)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 180,785
118,608
CASH AND CASE EQUIVALENTS AT
BEGINNING OF PERIOD 183,086
203,837
CASH AND CASH EQUIVALENTS AT END OF PERIOD 363,871
322,445
===========
===========
Supplemental Disclosures of Cash Flow
Information:
Cash Paid During The Year For:
Interest (Net of Amount Capitalized) 529,474
496,048
Income Taxes 61,750
512,040
CORNING NATURAL GAS CORPORATION
Consolidated Balance Sheet At September 30,
1995
Assets 09/30/95
12/31/94
Gas Utility Plant $ 19,119,454 $
18,144,174
Non-Utility Principally Rented Gas Appl. 2,353,275
2,278,930
21,472,729
20,423,104
Less: Accum. Provision for Depreciation (7,363,860)
(6,924,059)
$ 14,108,869 $
13,499,045
Current Assets:
Cash and Equivalents 363,871
183,086
Restricted Short-Term Investments 0
0
Accounts Receivable 528,128
1,336,560
Materials, Supplies and Inventories 1,917,408
1,732,040
Prepayments and Other 520,032
812,765
Total Current Assets 3,329,439
4,064,451
Non-Current Assets:
Def. Tax Assets 531,117
1,016,661
Def. Debits - Acctg. for Income Taxes 717,661
518,923
Deferred Debits 2,025,585
3,340,299
Total Non-Current Assets 3,274,363
4,875,883
Total Assets $ 20,712,671 $
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 1,978,909
2,097,669
4,932,255
5,051,015
Long Term Debt 6,400,000
6,400,000
Total Capitalization 11,332,255
11,451,015
Current Liabilities:
Short Term Notes Payable 3,265,000
3,655,000
Accounts Payable 1,357,411
1,605,104
Customer Deposits and Accrued Int. 196,214
189,785
Accrued Federal Income Tax 8,856
0
Other Accrued Taxes 239,709
88,526
Current Maturities of Long Term Debt 100,000
100,000
Other Current and Accrued Liabilities 467,118
1,395,312
Total Current Liabilities 5,634,308
7,033,727
Accrued Deferred FIT 2,707,287
2,966,192
Reserves and Other Liabilities 1,038,821
988,445
Total Liabilities and Capitalization $ 20,712,671 $
22,439,379
==========
==========
See Management's Discussion & Analysis on Page 5
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