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 March 31, 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 March 31, 1995
were $3,121,592 or 82% more than the quarter ending December 31,
1994 and $1,825,474 or 21% less than the quarter ending March 31,
1994.
Degree days for the quarter ending March 31, 1995 were 549
or 22% more than the quarter ending December 31, 1994 and 670 or
18% less than the quarter ending March 31, 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 3/31/95
Quarter Ending 03/31/95 3,139,622
Quarter Ending 12/31/94 1,990,968 (1,148,654)
Quarter Ending 03/31/94 3,456,741 ( 317,119)
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 $2,425,881 or 70% more than the quarter ending December
31, 1994 and $1,786,501 or 23% less than the quarter ending March
31, 1994.
Net Income was $316,021 or 116% more than the quarter ended
December 31, 1994 and $21,296 or 3% less than the quarter ending
March 31, 1994.
Since the Company's business is seasonal by quarters,
results for the first three 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 March 31, 1995.
The information furnished herewith reflects all adjustments
which are in the option 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 March 31, 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 April 21, 1995 THOMAS K. BARRY
Thomas K. Barry, Chairman of
the Board, President and
C.E.O.
Date April 21, 1995 GARY K. EARLEY
Gary K. Earley, Treasurer
CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
UNAUDITED
FORM 10 QSB
FOR QUARTER ENDED
March 31, 1995 March 31, 1994
Operating Revenues $ 6,948,702 $ 8,774,176
Cost and Expense
Operating Expenses 5,878,361 7,664,862
Interest Expense 222,546 194,947
Federal Income Tax 302,204 344,559
Other Deductions Net 2,954 6,871
Total Costs and Expenses 6,406,065 8,211,239
Operating Income 542,637 562,937
Other Income 7,866 9,395
Corning Natural Gas Appl. Corp.
Operating Revenues 470,542 458,294
Depreciation 56,911 53,906
Other Operating Expenses 350,915 348,671
Federal Income Tax 25,244 18,778
Net Income of Appl. Corp. 37,472 36,939
Net Income $ 587,975 $ 609,271
========= =========
Earnings Per Share $ 1.278 $ 1.32
Dividends Per Share $ .31 .305
Total Dividends Paid $ 142,600 140,300
Shares of common stock outstanding were 460,000 at March 31,
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.
See Management's Discussion & Analysis on Page 5
CORNING NATURAL GAS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
FORM 10-QSB - UNAUDITED
March 31, 1995 March
31, 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 587,975
609,271
Adjustments to Reconcile Net
Income to Net Cash
Provided by Operating Activities:
Depreciation 170,147
162,279
All. for Funds Used During Const. 0
(1,568)
Changes in Assets and Liabilities:
(Increase) Decrease in:
Accounts Receivable (641,653)
(945,966)
Materials, Supplies & Appliance
Inventory 667,829
1,157,962
Other Deferred Charges 2,352,536
2,049,374
Prepaid and Other Assets 160,605
81,722
Increase (Decrease) in:
Accounts Payable (171,295)
20,080
Accrued General Taxes 86,906
97,563
Accrued Federal Income Tax 149,509
510,612
Deferred Federal Income Tax (209,452)
(287,621)
Other Liabilities and Deferred
Credits (588,273)
(210,838)
Net Cash Provided (used) by
Operating Activities 2,564,834
3,242,870
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (112,188)
(123,004)
Allowance for Funds Used During
Construction 0
1,568
Net Cash Used in Investing Activities (112,188)
(121,436)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings (Repayments) Under
Line-of-Credit Agreement (2,045,000)
(2,690,000)
Dividends Paid (142,600)
(140,300)
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 (2,187,600)
(2,830,300)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 265,046
291,134
CASH AND CASE EQUIVALENTS AT
BEGINNING OF PERIOD 183,086
203,837
CASH AND CASH EQUIVALENTS AT END OF PERIOD 448,132
494,971
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Supplemental Disclosures of Cash Flow
Information:
Cash Paid During The Year For:
Interest (Net of Amount Capitalized) 150,075
115,880
Income Taxes 11,000
0
CORNING NATURAL GAS CORPORATION
Consolidated Balance Sheet At March 31, 1995
Assets 3/31/95
12/31/94
Gas Utility Plant $ 18,209,888 $
18,144,174
Non-Utility Principally Rented Gas Appl. 2,310,205
2,278,930
20,520,093
20,423,104
Less: Accum. Provision for Depreciation (7,079,007)
(6,924,059)
$ 13,441,086 $
13,499,045
Current Assets:
Cash and Equivalents 448,132
183,086
Restricted Short-Term Investments 0
0
Accounts Receivable 1,978,213
1,336,560
Materials, Supplies and Inventories 1,064,211
1,732,040
Prepayments and Other 652,160
812,765
Total Current Assets 4,142,716
4,064,451
Non-Current Assets:
Def. Tax Assets 557,095
1,016,661
Def. Debits - Acctg. for Income Taxes 652,738
518,923
Deferred Debits 1,313,514
3,340,299
Total Non-Current Assets 2,523,347
4,875,883
Total Assets $ 20,107,149 $
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 2,543,044
2,097,669
5,496,390
5,051,015
Long Term Debt 6,400,000
6,400,000
Total Capitalization 11,896,390
11,451,015
Current Liabilities:
Short Term Notes Payable 1,610,000
3,655,000
Accounts Payable 1,433,809
1,605,104
Customer Deposits and Accrued Int. 194,152
189,785
Accrued Federal Income Tax 149,509
0
Other Accrued Taxes 175,432
88,526
Current Maturities of Long Term Debt 100,000
100,000
Other Current and Accrued Liabilities 431,454
1,395,312
Total Current Liabilities 4,094,356
7,033,727
Accrued Deferred FIT 2,756,740
2,966,192
Reserves and Other Liabilities 1,359,663
988,445
Total Liabilities and Capitalization $ 20,107,149 $
22,439,379
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==========
See Management's Discussion & Analysis on Page 5
