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<ARTICLE> UT
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS 3-MOS 3-MOS
<FISCAL-YEAR-END> SEP-30-1999 SEP-30-1998 SEP-30-1999 SEP-30-1998
<PERIOD-END> DEC-31-1999 SEP-30-1999 DEC-31-1999 DEC-31-1998
<BOOK-VALUE> PER-BOOK PER-BOOK PER-BOOK PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 16,522,689 16,495,300 0 0
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<TOTAL-CURRENT-ASSETS> 6,555,852 4,634,607 0 0
<TOTAL-DEFERRED-CHARGES> 2,475,174 2,594,352 0 0
<OTHER-ASSETS> 2,532,629 2,764,936 0 0
<TOTAL-ASSETS> 28,086,344 26,489,195 0 0
<COMMON> 2,300,000 2,300,000 0 0
<CAPITAL-SURPLUS-PAID-IN> 653,346 653,346 0 0
<RETAINED-EARNINGS> 2,336,413 2,158,820 0 0
<TOTAL-COMMON-STOCKHOLDERS-EQ>5,289,759 5,112,166 0 0
0 0 0 0
0 0 0 0
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<SHORT-TERM-NOTES> 4,060,000 2,165,000 0 0
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<TOT-CAPITALIZATION-AND-LIAB>28,086,344 26,489,195 0 0
<GROSS-OPERATING-REVENUE> 0 0 3,913,347 4,127,298
<INCOME-TAX-EXPENSE> 0 0 0 0
<OTHER-OPERATING-EXPENSES> 0 0 3,541,865 3,812,956
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<OPERATING-INCOME-LOSS> 0 0 371,482 314,342
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0 0 0 0
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</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 December 31, 1999
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 changed 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.
Consolidated net income for the quarter ended December 31, 1999 was $214,390,
compared to income of $163,322 in the same quarter the previous year.
Earnings from gas operations increased $51,000 due primarily to increased
industrial sales and colder weather(7% more degree days). The Foodmart Plaza
and Tax Center International produced earnings that met forecasted levels,
contributing an additional $22,500 to consolidated net income. The Appliance
Company experienced an increase in earnings of $33,000 due to a 15%
increase in revenues. Earnings from Corning Realty Associates were down
$13,000 due to a one time credit contained in December 1998.
Segment Overview:
Information concerning the Company's 5 operating segments for the first
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 3,913,387 962,329 67,787 1,199,660 69,699 6,212,862
1999 4,127,298 662,914 42,201 462,275 66,950 5,361,638
Net income (loss):
2000 102,165 94,462 13,780 (4,675) 8,658 214,390
1999 60,309 61,367 14,465 17,265 9,916 163,322
Interest income:
2000 720 19,284 -- -- -- 20,004
1999 710 13,075 -- -- -- 13,785
Interest expense:
2000 273,661 -- 835 33,535 23,008 331,039
1999 259,884 -- 1,228 7,073 23,809 291,994
Identifiable assets*:
2000 24,362,530 2,817,923 186,154 1,949,242 1,203,404 30,519,253
1999 24,618,715 2,490,121 100,855 1,905,500 1,226,897 27,342,088
Depreciation and
amortization:
2000 118,385 62,548 2,743 38,884 7,789 230,349
1999 89,091 58,421 617 14,512 6,690 169,331
Income tax expense
or (benefit):
2000 40,932 62,429 660 (2,482) 6,561 108,100
1999 (17,612) 42,830 4,170 13,041 6,594 49,023
*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, 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
of certified public accountants.
There were no sales of unregistered securities (debt or equity) during the
quarter ending December 31, 1999.
There has been no change in independent public accountants. The Company has
not filed any reports on Form 8-K for the quarter ended December 31, 1999.
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 February 11, 2000 THOMAS K. BARRY
Thomas K. Barry, Chairman of the Board,
President and CEO.
Date February 11, 2000 GARY K. EARLEY
Gary K. Earley, Treasurer
CORNING NATURAL GAS CORPORATION
Condensed Consolidated Balance Sheets
Form 10-QSB
December 31,1999 September 30,1999
Assets
Property, plant and equip, at original cost:
Utility $21,808,330 21,667,115
Non-Utility princially rented appl &
plaza property 3,985,293 3,941,231
-------------- ----------------
25,793,623 25,608,346
Less accumulated depreciation (9,270,934) (9,113,046)
-------------- ---------------
Current assets:
Cash 319,791 205,787
Marketable securities,avail for sale 1,134,815 1,021,696
Accounts receivable,less allowance for
uncollectibles 2,542,825 1,883,915
Gas stored underground, at average cost 1,148,874 134,650
Gas and appliance inventories 548,540 634,348
Prepaid income taxes 510,742 340,328
Deferred income tax assets 11,000 11,000
Prepaid expenses 339,265 402,883
------------ --------------
6,555,852 4,634,607
Deferred charges:
Prepaid pension & other 709,148 1,380,984
Regulatory assets 0 196,707
Deferred debits-accounting for income taxes 1,016,661 1,016,661
Unrecovered gas costs 749,365 0
---------- -------------
2,475,174 2,594,352
Goodwill, net of amortization 1,822,367 1,851,625
Long-term debt issuance costs 365,927 371,317
Other assets 344,335 541,994
---------- -------------
$28,086,334 26,489,195
=========== ============
Capitalization & Liabilities
- - ----------------------------
Common stock $ 2,300,000 2,300,000
Additional paid-in capital 653,346 653,346
Accumulated Comprehensive Income 108,842 64,883
Retained earnings 2,227,571 2,093,937
------------ -----------
5,289,759 5,112,166
Long-term debt, less current installments 11,169,254 11,223,256
------------ ----------
Total capitalization 16,459,013 16,335,422
------------ ----------
Current liabilities:
Borrowings under lines-of-credit 4,060,000 2,165,000
Accounts payable 1,399,634 1,404,370
Dividends payable 149,500 149,500
Current installments of l/t debt 202,774 202,774
Customers' deposits & accrued interest 721,192 665,990
Accrued general taxes 266,719 94,441
Supplier refunds due customers 280,068 268,862
Accrued expenses 630,871 668,224
---------- -----------
Total current liabilities 7,710,758 5,619,161
---------- -----------
Deferred credits:
Deferred income tax liabilities 2,622,791 2,413,080
Deferred compensation,postretirement
benefits, and other 1,519,142 1,519,142
Other (225,360) 602,390
---------- ---------
3,916,573 4,534,612
--------- ----------
$28,086,344 26,489,195
=========== ==========
CORNING NATURAL GAS CORPORATION
Condensed Consolidated Statements of Income
Unaudited
Form 10QSB
Quarter Ended
Dec 31, 1999 Dec 31, 1998
Utility Operating Revenues $ 3,913,347 4,127,298
------------ -----------
Cost and Expense
Operating Expense 3,501,760 3,825,526
Interest Expense 274,488 254,843
Income Tax 40,932 (17,612)
Other Deductions, Net (827) 5,042
------------- ------------
Total Costs and Expenses 3,816,353 4,067,799
Utility Operating Income 96,994 59,499
------------- -------------
Other Income 5,171 810
------------ -------------
Corning Natural Gas Appliance Corp.
Operating Revenues 763,976 662,914
Depreciation 62,548 58,421
Operating Expense 558,604 509,947
Federal Income Tax 48,361 33,179
Equity in Earnings of Assoc. Cos. 17,762 41,646
---------- ---------
Net Income of Appliance Corp 112,225 103,013
----------- ---------
Net Income $ 214,390 163,322
=========== ========
Earnings Per Share-basic & diluted $ 0.466 0.355
Dividends Per Share $ 0.325 0.650
Dividends Declared $ 149,500 299,000
Shares of common stock outstanding were 460,000 at December 31, 1999.
Earnings per share=Net Income as shown above divided by 460,000 shares.
Dividends per share=Dividends declared divided by shares outstanding.
CORNING NATURAL GAS CORPORATION
Condensed Consolidated Statements of Cash Flows
For Quarter Ended December 31, 1999
Form 10-QSB
Dec 31, 1999 Dec 31, 1998
Cash flows from operating activities:
Net Income $ 214,390 163,322
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 248,753 155,548
Gain on Sale of marketable securities (65,164) 0
Changes in assets and liabilities:
(Increase)decrease in:
Accounts Receivable (658,910) (773,915)
Gas stored underground (1,014,224) 925,663
Gas and appliance inventories 85,808 (488,372)
Prepaid expenses 63,618 (16,612)
Unrecovered gas costs (749,365) 0
Prepaid income taxes (170,414) 118,023
Deferred charges-pension and other 671,836 426,361
Other assets 197,659 142,120
Increase(decrease) in:
Accounts payable (4,736) 375,045
Accrued general taxes 172,278 158,913
Supplier refunds due customers 11,206 222,601
Deferred income taxes 209,711 199,050
Other liabilities and def credits (575,758) (699,572)
------------- ------------
Net cash provided by operating activities (1,363,312) 908,175
Cash flows from investing activities:
Purchase of securities available for sale, net 0 22,997
Acquisitions of businesses, net of cash acquired 0 (468,334)
Capital expenditures, net of minor disposals (214,182) (1,687,831)
------------- ----------
Net cash used in investing activities (214,182) (2,133,168)
Cash flows from financing activities:
Net borrowings(repayments)under
line-of-credit agreements 1,895,000 515,000
Dividends paid (149,500) (299,000)
Borrowings (repayments)under
long-term debt agreements (54,002) 1,552,663
-------------- ------------
Net cash provided by finacing activities 1,691,498 1,768,663
Net increase(decrease)in cash 114,004 543,670
Cash at beginning of period 205,787 284,426
------------ ------------
Cash at end of period $ 319,791 828,096
------------ ------------
Supplemental disclosures of cash flow information:
Cash paid during period for:
Interest $ 339,022 300,406
Income taxes 8,250 11,357
Non cash investing and finacing activities:
Acquistion of business financed by seller $ 0 448,333
CORNING NATURAL GAS CORPORATION
Statement of Comprehensive Income(Loss)
Unaudited
Form 10 QSB
Quarter Ended
Dec 31, 1999 Dec 31, 1998
------------- -------------
Net Income(loss) $ 214,390 163,322
Other comprehensive income(loss), net of tax:
Unrealized gains(losses)on securities: 43,958 55,687
------------ ------------
Comprehensive Income(loss) $ 258,348 219,009
============= ============
