<TABLE> <S> <C>
<ARTICLE> UT
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS 3-MOS 3-MOS
<FISCAL-YEAR-END> SEP-30-2000 SEP-30-1999 SEP-30-2000 SEP-30-1999
<PERIOD-END> MAR-30-2000 SEP-30-1999 MAR-30-2000 MAR-30-1999
<BOOK-VALUE> PER-BOOK PER-BOOK PER-BOOK PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 14206844 164953000 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0 0 0
<TOTAL-CURRENT-ASSETS> 5983288 4634607 0 0
<TOTAL-DEFERRED-CHARGES> 2721208 2594352 0 0
<OTHER-ASSETS> 4908259 2764936 0 0
<TOTAL-ASSETS> 27819599 26489195 0 0
<COMMON> 2300000 2300000 0 0
<CAPITAL-SURPLUS-PAID-IN> 653346 653346 0 0
<RETAINED-EARNINGS> 2834602 2158820 0 0
<TOTAL-COMMON-STOCKHOLDERS-EQ>5787948 5112166 0 0
0 0 0 0
0 0 0 0
<LONG-TERM-DEBT-NET> 10958632 11223256 0 0
<SHORT-TERM-NOTES> 2455000 2165000 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0 0 0
0 0 0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0 0 0
<LEASES-CURRENT> 0 0 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB>5783417 7988773 0 0
<TOT-CAPITALIZATION-AND-LIAB>27819599 26489195 0 0
<GROSS-OPERATING-REVENUE> 0 0 7404771 4127298
<INCOME-TAX-EXPENSE> 0 0 0 0
<OTHER-OPERATING-EXPENSES> 0 0 6656746 3812956
<TOTAL-OPERATING-EXPENSES> 0 0 6656746 3812956
<OPERATING-INCOME-LOSS> 0 0 748025 314342
<OTHER-INCOME-NET> 0 0 22000 103823
<INCOME-BEFORE-INTEREST-EXPEN> 0 0 770025 418165
<TOTAL-INTEREST-EXPENSE> 0 0 277298 254843
<NET-INCOME> 0 0 492727 163322
0 0 0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0 492727 163322
<COMMON-STOCK-DIVIDENDS> 0 0 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0 277298 254843
<CASH-FLOW-OPERATIONS> 0 0 677056 908175
<EPS-BASIC> 0 0 1.071 (0.355)
<EPS-DILUTED> 0 0 0 0
</TABLE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2000
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 IRS Employer ID No
incorporation or organization)
330 W William Street, PO 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 change since last report
Indicate by checkmark 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 Securities
Exchange Act of 1934 and 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.
As the Company's business is seasonal, the interim results should not be used
as an indication of what results for the twelve months of the fiscal year
2000 may be.
Net consolidated income for the quarter ended March 31, 2000 was $492,727,
compared to income of $488,847 in the same quarter the previous year. Earnings
from gas operations decreased $86,000 due to increased costs, particularly
interest and wages. The Foodmart Plaza and Tax Center International produced
earnings that met forecasted levels, contributing an additional $19,500 to
consolidated net income. The Appliance Company experienced an increase in
earnings of $27,000 due to a 27% increase in revenues. Earnings from Corning
Realty Associates increased $60,500 due to implementation of some new
policies and budgets.
Segment Overview:
Information concerning the Company's 5 operating segments for the second
quarter of 2000 and 1999 is provided below. The table reflects the results
of the segments on a basis that is consistent with the manner in which
management evaluates the performance of each of the segments.
Gas Appliance Tax Corning Foodmart
Company Corporatio Center Realty Plaza Consolidated
------------------------------------------------------------
Revenue:
2000 7,404,771 619,204 92,139 826,427 69,950 9,012,491
1999 7,521,905 488,999 61,438 811,771 67,825 8,951,938
Net income (loss):
2000 471,355 52,305 15,413 (52,480) 6,134 492,727
1999 557,395 25,395 15,661 (117,684) 8,080 488,847
Interest income:
2000 478 23,256 68 -- -- 23,802
1999 662 13,103 -- -- -- 13,765
Interest expense:
2000 280,346 2,699 1,213 35,891 22,509 342,658
1999 240,052 179 1,279 28,896 23,071 293,477
Identifiable assets*:
2000 20,563,446 3,044,522 187,064 1,941,345 1,207,704 26,944,081
1999 22,087,245 2,573,469 139,812 2,017,247 1,231,175 28,048,948
Depreciation and
amortization:
2000 118,006 58,935 2,889 39,762 15,578 235,170
1999 108,036 59,050 2,451 33,591 7,152 210,280
Income tax expense
(benefit):
2000 293,512 40,772 6,702 (34,899) 4,080 310,167
1999 284,483 21,390 10,278 (54,561) 5,374 266,964
*Identifiable assets include property, plant and equipment, accounts
receivable, inventories, cash and other amounts specifically related to each
identified segment.
Interest income and expense have been displayed in the segment in which it
has been earned or incurred. Segment interest expense other than the Gas
Company is included within unregulated expenses in the consolidated
statements of income.
On January 1, 1999 the Company adopted Financial Accounting Standards Board
Statement No. 130, Reporting Comprehensive Income(Statement 130).Statement 130
established standards for reporting and presentation of comprehensive income
and its components in a full set of financial statements. Comprehensive
income consists of net income and net unrealized gains on marketable
securities and is presented in a statement of comprehensive income. The
statement requires only additional disclosures in the consolidated financial
statements; it does not affect the Company's financial position or results of
operations.
The year 2000 issue (Y2K) refers to the inability of certain computerized
systems and technologies to recognize and/or correctly process dates beyond
December 31, 1999. Corning Natural Gas Corporation has identified those areas
within the Company where the potential exists for computer system failure or
miscalculations by computer programs could cause a disruption in the
Company's operations or services. A Y2K Coordinator, Thomas S. Roye, was
assigned and a Y2K plan was developed. The event has passed, without any
significant problems, and although problems may still occur, the
Company anticipates no further problems.
Internal generation of funds should be sufficient to meet the needs of the
Company coupled with some intermittent short-term borrowings.
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
ofcertified public accountants.
There were no sales of unregistered securities (debt or equity) during the
quarter ending March 31, 2000.
As reported on Form 8-K, dated April 19, 2000, the Board of Directors voted on
April 13, 2000 to terminate KPMG LLP's appointment as principal accountants
and Deloitte & Touche LLP were engaged as principal accountants.
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.
Date May 12, 2000 /S/THOMAS K. BARRY
Thomas K. Barry, Chairman of the Board,
President and CEO.
Date May 12, 2000 /S/ GARY K. EARLEY
Gary K. Earley, Treasurer
CORNING NATURAL GAS CORPORATION
Condensed Consolidated Balance Sheets
Form 10-QSB
March 30, 2000 Sept 30, 1999
Assets
Property, plant & equipment, at
original cost:
Utility $ 21,913,797 21,667,115
Non-Utility-principally rented
appl and plaza property 4,148,956 3,941,231
------------------------------
26,062,753 25,608,346
Less accumulated depreciation ( 9,443,445) ( 9,113,046)
------------------------------
16,619,308 16,495,300
------------------------------
Current assets:
Cash 229,658 205,787
Marketable securities available for sale,
at fair value 1,235,770 1,021,696
Accounts receivable, less allowance for
uncollectibles 2,503,034 1,883,915
Gas stored underground, at average cost 610,944 134,650
Gas and appliance inventories 573,623 634,348
Prepaid income taxes 80,194 340,328
Deferred income tax assets 11,000 11,000
Prepaid expenses 559,065 402,883
-------------------------
5,983,288 4,634,607
-------------------------
Deferred charges:
Prepaid pension & other 1,572,642 1,380,984
Regulatory assets 0 196,707
Deferred debits-accounting for income taxes 1,016,661 1,016,661
Unrecovered gas costs 131,905 0
-------------------------
2,721,208 2,594,352
Goodwill, net of amortization 1,793,109 1,851,625
Long-term debt issuance costs 360,538 371,317
Other assets 522,148 541,994
--------------------------
$ 27,819,599 26,489,195
===========================
Capitalization and Liabilities
Common stock $ 2,300,000 2,300,000
Additional paid-in capital 653,346 653,346
Accumulated Comprehensive Income
Net unrealized gain on securities
available for sale 145,235 64,883
Retained earnings 2,689,367 2,093,937
---------------------------
5,787,948 5,112,166
Long-term debt,less curr installments 10,958,632 11,223,256
---------------------------
Total capitalization 16,746,580 16,335,422
---------------------------
Current liabilities:
Borrowings under lines-of-credit 2,455,000 2,165,000
Accounts payable 1,810,731 1,404,370
Dividends payable 0 149,500
Current installments of long-term debt 202,774 202,774
Customers' deposits and accrued interest 341,874 665,990
Accrued general taxes 473,183 94,441
Supplier refunds due customers 284,919 268,862
Accrued expenses 725,541 668,224
--------------------------
Total current liabilities 6,294,022 5,619,161
--------------------------
Deferred credits:
Deferred income tax liabilities 2,531,126 2,413,080
Deferred compensation, postretirement benefits,
and other 1,519,142 1,519,142
Other 728,729 602,390
--------------------------
4,778,997 4,534,612
--------------------------
$ 27,819,599 26,489,195
=============================
CORNING NATURAL GAS CORPORATION
Condensed Consolidated Statements of Income
Unaudited
Form 10 QSB
03/31/00 03/31/99 03/31/00 03/31/99
------------------------------------------------
Utililty Operating Revenues $ 7,404,771 $7,521,905 $11,318,118 $11,649,203
Cost and Expense
Operating Expenses 6,360,186 6,431,452 9,861,946 10,256,977
Interest Expense 277,297 244,109 551,785 498,952
Income Tax 293,512 284,483 334,444 266,871
Other Deductions, Net 3,049 ( 4,056) 2,222 986
-----------------------------------------------
Total Costs and Expenses 6,934,043 6,955,988 10,750,396 11,023,786
Utility Operating Income 470,727 565,917 567,721 625,417
---------------------------------------------
Other Income 628 ( 8,522) 5,799 (7,712)
----------------------------------------------
Corning Natural Gas Appliance Corp.
Operating Revenues 619,204 488,999 1,383,180 1,151,913
Depreciation 58,935 59,050 121,483 117,471
Operating Expense 476,379 387,984 1,034,983 897,931
Federal Income Tax 31,585 16,570 79,946 49,749
Equity in Earnings
of Assoc. Cos. (30,933) (93,943) (13,171) (52,297)
---------------------------------------------
Net Income of Appliance Co. 21,372 (68,548) 133,597 34,465
---------------------------------------------
$492,727 $488,847 $707,117 $652,170
============================================
Earnings Per Share-
basic & diluted $ 1.071 $ 1.063 $ 1.537 $ 1.418
Dividends Per Share $ 0.000 $ 0.000 $ 0.325 $ 0.650
Dividends Declared $ 0 $ 0 $ 149,500 $ 299,000
Shares of common stock outstanding were 460,000 at March 31, 2000.
Earnings per share=Net Income as shown above divided by 460,000 shares.
Dividends per share=Dividends declared divided by shares outstanding at time.
CORNING NATURAL GAS CORPORATION
Statement of Comprehensive Income
Unaudited
Form 10 QSB
Quarter Ended Six Months Ended
03/31/00 03/31/99 3/31/00 03/31/99
--------------------------------------------
Net Income(loss) $ 492,727 $ 488,847 $ 707,117 $ 652,170
Other comprehensive income, net
of tax:
Unrealized gains on securities: 36,393 19,312 80,352 71,999
--------------------------------------------
Comprehenisve Income $ 529,120 $ 508,159 $787,469 $724,169
============================================
CORNING NATURAL GAS CORPORATION
Condensed Consolidated Statements of Cash Flows
For Six Months Ended March 31, 2000
Form 10-QSB
03/31/00 03/31/99
Cash flows from operating activities: ---------------------
Net Income $707,117 652,170
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 476,135 414,778
(Gain)loss on Sale of marketable securities ( 10,836) 11,704
Changes in assets and liabilities:
(Increase)decrease in:
Accounts receivable (619,119) (1,476,952)
Gas stored underground (476,294) 962,535
Gas and appliance inventories 60,725 15,251
Prepaid expenses (156,182) (181,719)
Unrecovered gas costs (131,905) 191,819
Prepaid income taxes 260,134 11,003
Deferred charges-pension & other (191,658) (290,821)
Other assets 19,846 ( 7,966)
Increase(decrease) in:
Accounts payable 406,361 ( 52,211)
Accrued general taxes 378,742 200,112
Supplier refunds due customers 16,057 ( 70,731)
Deferred income taxes 118,046 23,227
Other liabilities & deferred credits (180,113) 895,563
---------------------
Net cash provided by operating activities 677,056 1,297,762
Cash flows from investing activities:
Purchase of securities available for sale, net 0 ( 77,584)
Acquisitions of businesses, net of cash acquired 0 (468,334)
Capital expenditures, net of minor disposals ( 529,061) (699,456)
-----------------------
Net cash used in investing activities (529,061) (1,245,374)
Cash flows from financing activities:
Net borrowings(repayments)under
line-of-credit agreements 290,000 (115,000)
Dividends paid (149,500) (299,000)
Borrowings(repayments) under long-term debt
agreements (264,624) 415,779
-----------------------
Net cash provided by (used in)
financing activities (124,124) 1,779
Net increase in cash 23,871 54,167
Cash at beginning of period 205,787 284,426
---------------------
Cash at end of period $ 229,658 338,593
---------------------
Supplemental disclosures of cash flow information:
Cash paid during period for:
Interest $ 301,269 561,935
Income taxes 158,600 56,357
Non cash investing and finacing activities:
Aquisition of business financed by seller $ 0 1,056,666
