|
Gas Natural Inc. Reports 2017 First Quarter Results
Gas
Natural Inc. (NYSE MKT:EGAS) (the “Company”), a holding company
operating local natural gas utilities serving approximately 70,000
customers in four states, reported financial results for its first
quarter ended March 31, 2017.
First Quarter 2017 Summary
-
Net income per share improved to $0.32 from $0.26 in the prior-year
quarter
-
Full service distribution throughput increased 13%, aided by the
addition of approximately 300 new customers in the quarter
-
Merger approval process with regulators remains on plan for second
half 2017 closing
Mr. Gregory J. Osborne, Gas Natural’s President and Chief Executive
Officer, commented, “We continue to focus on providing excellent service
to our customers in all of our utility jurisdictions, resulting in
growth in full service distribution and gross margin. Additionally, our
ongoing focus on cost discipline has contributed to improved earnings.”
He added, “The regulatory approval process for our announced merger with
First Reserve continues on plan. We expect completion of the transaction
in the second half of 2017.”
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2017 Operations Review
|
|
|
|
|
|
|
Three Months Ended
|
|
(in thousands)
|
|
|
|
March 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Revenue by segment:
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
|
|
|
|
$
|
35,919
|
|
|
$
|
35,064
|
|
Marketing & Production
|
|
|
|
|
3,940
|
|
|
|
3,243
|
|
Consolidated
|
|
|
|
$
|
39,859
|
|
|
$
|
38,307
|
|
|
|
|
|
|
|
|
|
|
|
Revenue for the first quarter of 2017 increased approximately 4% over
the prior-year quarter. Both of the Company’s operating segments
contributed to the increase. The Natural Gas segment grew due to: 1)
customer growth, primarily in Maine and Montana; 2) colder weather in
certain of the Company’s markets, including Montana and Maine; 3)
generally higher natural gas prices; and 4) the inclusion of
cancellation fee revenue for a terminated long-term customer contract in
Maine. The Marketing & Production segment recognized higher revenue due
to increased volumes sold as a result of colder weather in its relevant
markets.
|
|
|
|
|
|
|
|
|
Changes in Gross Margin
(in thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March 31, 2017
|
|
2016 Gross Margin
|
|
|
|
$
|
14,745
|
|
|
Utilities sold
|
|
|
|
|
(17
|
)
|
|
Weather and other volume changes
|
|
|
|
|
479
|
|
|
New utility customers
|
|
|
|
|
249
|
|
|
Other changes
|
|
|
|
|
164
|
|
|
Natural Gas change
|
|
|
|
|
875
|
|
|
Lost marketing customer and pricing
|
|
|
|
|
(85
|
)
|
|
Pricing and production volume
|
|
|
|
|
29
|
|
|
Marketing & Production change
|
|
|
|
|
(56
|
)
|
|
Consolidated gross margin change
|
|
|
|
|
819
|
|
|
2017 Gross Margin
|
|
|
|
$
|
15,564
|
|
|
|
|
|
|
|
|
|
Gross margin for the first quarter of 2017 increased 6% compared with
the prior-year quarter. The increase was primarily due to several
factors: 1) higher volume due to increased usage and colder weather in
the Company’s Montana and Maine markets, partially offset by warmer
weather in its North Carolina and Ohio markets; 2) higher volume driven
by customer growth; and 3) cancellation fee revenue with no associated
cost, resulting from the termination of a long-term customer contract in
Maine. Customer count grew by approximately 300 in the first quarter,
compared with the end of 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(in thousands)
|
|
|
|
March 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Operating income by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
|
|
|
|
$
|
6,096
|
|
|
|
$
|
5,517
|
|
|
Marketing & Production
|
|
|
|
|
49
|
|
|
|
|
83
|
|
|
Corporate & Other
|
|
|
|
|
(218
|
)
|
|
|
|
(103
|
)
|
|
Consolidated
|
|
|
|
$
|
5,927
|
|
|
|
$
|
5,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted EBITDA*
|
|
|
|
$
|
8,432
|
|
|
|
$
|
7,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*See the attached tables for important disclosures regarding the
Company’s use of earnings before interest, taxes, depreciation,
amortization, non-recurring expenses and discontinued operations
(“Adjusted EBITDA”) as well as reconciliations of U.S. generally
accepted accounting principles (”GAAP”) net income to non-GAAP Adjusted
EBITDA for the 2017 and 2016 first quarters.
For the first quarter of 2017, operating income was $0.4 million higher
than the prior-year quarter due to higher gross margin partially offset
by higher operating expenses.
Within the Natural Gas segment, gross margin grew $0.9 million and
operating expenses increased $0.3 million, contributing to a $0.6
million increase in operating income for the segment. The increase in
operating expenses is primarily due to IT-related support costs,
partially offset by cost reductions associated with lower legal and
professional services as well as lower personnel related costs
pertaining to this segment. The higher operating loss within the
Corporate and Other segment was primarily due to higher legal and
professional costs associated with the Company’s pending merger.
Adjusted EBITDA, a non-GAAP financial measure, was up approximately $0.8
million primarily due to higher operating income as well as higher
non-cash costs. The Company believes that, when used in conjunction with
measures prepared in accordance with GAAP, Adjusted EBITDA, which is a
non-GAAP measure, helps in the understanding of its financial
performance.
Balance Sheet and Cash Management
Cash and cash equivalents as of March 31, 2017 grew to $7.7 million from
$6.5 million at December 31, 2016.
Cash provided by operating activities in the first quarter of 2017 was
$10.9 million compared with $9.4 million in 2016 first quarter, with the
increase primarily due to higher net income and lower working capital
requirements.
Capital expenditures for the first quarter of 2017 were $2.0 million
compared with $2.3 million in the prior-year quarter. Capital
expenditures in the 2016 first quarter included approximately $0.5
million for the portion of the Company’s ERP system that was not
financed under a lease agreement. The Company has budgeted $10 million
for capital expenditures in 2017, with the majority focused on growth of
its Natural Gas Operations segment, including construction activities to
support expansion, maintenance and enhancements of its gas pipeline
systems.
Cash used in financing activities was $8.4 million in the 2017 first
quarter compared with $5.9 million in last year’s quarter. Debt
repayment was the primary use of cash in both periods.
About Gas Natural Inc.
Gas Natural Inc., a holding company, distributes and sells natural gas
to residential, commercial, and industrial customers. It distributes
approximately 21 billion cubic feet of natural gas to roughly 70,000
customers through regulated utilities operating in Montana, Ohio, Maine
and North Carolina. The Company’s other operations include intrastate
pipeline, natural gas production, and natural gas marketing. The
Company's Montana public utility was originally incorporated in 1909.
Its strategy for growth is to expand throughput in its markets, while
looking for acquisitions that are either adjacent to its existing
utilities or in under-served markets. Further information is available
on the Company’s website at www.egas.net.
Safe Harbor Regarding Forward-Looking Statements
The Company is including the following cautionary statement in this
release to make applicable and to take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 for
any forward-looking statements made by, or on behalf of, Gas Natural
Inc. Forward-looking statements are all statements other than statements
of historical fact, including, without limitation, those that are
identified by use of the words "anticipates," "estimates," "expects,"
"intends," "plans," "predicts," "believes" and similar expressions. Such
statements are inherently subject to a variety of risks and
uncertainties that could cause actual results to differ materially from
those expressed. Factors that may affect forward-looking statements and
the Company's business generally include, but are not limited to the
Company's ability to successfully integrate the operations of the
companies it has acquired and consummate additional acquisitions; the
Company's continued ability to make or increase dividend payments; the
Company's ability to implement its business plan, grow earnings and
improve returns on investment; fluctuating energy commodity prices; the
possibility that regulators may not permit the Company to pass through
all of its increased costs to its customers; changes in the utility
regulatory environment; wholesale and retail competition; the Company's
ability to satisfy its debt obligations, including compliance with
financial covenants; weather conditions; litigation risks; and various
other matters, many of which are beyond the Company's control; the risk
factors and cautionary statements made in the Company's public filings
with the Securities and Exchange Commission; and other factors that the
Company is currently unable to identify or quantify, but may exist in
the future. Gas Natural Inc. expressly undertakes no obligation to
update or revise any forward-looking statement contained herein to
reflect any change in Gas Natural Inc.'s expectations with regard
thereto or any change in events, conditions or circumstances on which
any such statement is based.
FINANCIAL TABLES FOLLOW.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Income (Unaudited)
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas operations
|
|
|
|
$
|
35,919
|
|
|
|
$
|
35,064
|
|
|
Marketing and production
|
|
|
|
|
3,940
|
|
|
|
|
3,243
|
|
|
Total revenues
|
|
|
|
|
39,859
|
|
|
|
|
38,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas operations
|
|
|
|
|
20,602
|
|
|
|
|
20,622
|
|
|
Marketing and production
|
|
|
|
|
3,693
|
|
|
|
|
2,940
|
|
|
Total cost of sales
|
|
|
|
|
24,295
|
|
|
|
|
23,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
|
|
|
|
|
15,564
|
|
|
|
|
14,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution, general, and administrative
|
|
|
|
|
6,039
|
|
|
|
|
5,927
|
|
|
Maintenance
|
|
|
|
|
270
|
|
|
|
|
264
|
|
|
Depreciation and amortization
|
|
|
|
|
2,055
|
|
|
|
|
1,957
|
|
|
Taxes other than income
|
|
|
|
|
1,148
|
|
|
|
|
1,080
|
|
|
Provision for doubtful accounts
|
|
|
|
|
125
|
|
|
|
|
20
|
|
|
Total operating expenses
|
|
|
|
|
9,637
|
|
|
|
|
9,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
|
|
|
5,927
|
|
|
|
|
5,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss), net
|
|
|
|
|
95
|
|
|
|
|
(402
|
)
|
|
Interest expense
|
|
|
|
|
(782
|
)
|
|
|
|
(753
|
)
|
|
Income before income taxes
|
|
|
|
|
5,240
|
|
|
|
|
4,342
|
|
|
Income tax expense
|
|
|
|
|
(1,890
|
)
|
|
|
|
(1,640
|
)
|
|
INCOME FROM CONTINUING OPERATIONS
|
|
|
|
|
3,350
|
|
|
|
|
2,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of income taxes
|
|
|
|
|
-
|
|
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
$
|
3,350
|
|
|
|
$
|
2,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
|
10,518,062
|
|
|
|
|
10,506,877
|
|
|
Dilutive effect of restricted stock awards
|
|
|
|
|
1,151
|
|
|
|
|
654
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
|
10,519,213
|
|
|
|
|
10,507,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC & DILUTED EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.26
|
|
|
Discontinued operations
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Net income per share
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
|
|
$
|
0.075
|
|
|
|
$
|
0.075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
|
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
7,667
|
|
|
|
$
|
6,463
|
|
Accounts receivable, less allowance for doubtful accounts
|
|
|
|
|
|
|
|
|
|
|
|
of $575 and $385, respectively
|
|
|
|
|
10,114
|
|
|
|
|
11,093
|
|
Unbilled gas
|
|
|
|
|
4,957
|
|
|
|
|
7,256
|
|
Inventory
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
|
|
283
|
|
|
|
|
3,380
|
|
Materials and supplies
|
|
|
|
|
2,255
|
|
|
|
|
2,065
|
|
Regulatory assets, current
|
|
|
|
|
3,628
|
|
|
|
|
3,131
|
|
Other current assets
|
|
|
|
|
1,992
|
|
|
|
|
2,423
|
|
Total current assets
|
|
|
|
|
30,896
|
|
|
|
|
35,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT, & EQUIPMENT, NET
|
|
|
|
|
139,011
|
|
|
|
|
139,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory assets, non-current
|
|
|
|
|
909
|
|
|
|
|
1,032
|
|
Goodwill
|
|
|
|
|
15,872
|
|
|
|
|
15,872
|
|
Customer relationships, net of amortization
|
|
|
|
|
2,246
|
|
|
|
|
2,322
|
|
Other non-current assets
|
|
|
|
|
2,232
|
|
|
|
|
2,696
|
|
Total other assets
|
|
|
|
|
21,259
|
|
|
|
|
21,922
|
|
TOTAL ASSETS
|
|
|
|
$
|
191,166
|
|
|
|
$
|
197,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
|
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND CAPITALIZATION
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Line of credit
|
|
|
|
$
|
6,650
|
|
|
$
|
13,450
|
|
Accounts payable
|
|
|
|
|
7,724
|
|
|
|
10,055
|
|
Accrued liabilities
|
|
|
|
|
7,366
|
|
|
|
8,265
|
|
Capital lease liability, current
|
|
|
|
|
3,245
|
|
|
|
3,618
|
|
Other current liabilities
|
|
|
|
|
554
|
|
|
|
460
|
|
Total current liabilities
|
|
|
|
|
25,539
|
|
|
|
35,848
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liability
|
|
|
|
|
13,813
|
|
|
|
11,917
|
|
Regulatory liability, non-current
|
|
|
|
|
1,458
|
|
|
|
1,417
|
|
Capital lease liability, non-current
|
|
|
|
|
2,313
|
|
|
|
2,780
|
|
Other long-term liabilities
|
|
|
|
|
3,115
|
|
|
|
3,113
|
|
Total long-term liabilities
|
|
|
|
|
20,699
|
|
|
|
19,227
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES PAYABLE
|
|
|
|
|
49,405
|
|
|
|
49,392
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
Preferred stock: $0.15 par value; 1,500,000 shares authorized,
|
|
|
|
|
|
|
|
|
|
|
no shares issued or outstanding
|
|
|
|
|
-
|
|
|
|
-
|
|
Common stock: $0.15 par value; Authorized: 30,000,000 shares;
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding: 10,519,728 as of March 31, 2017 and
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016, respectively
|
|
|
|
|
1,578
|
|
|
|
1,578
|
|
Capital in excess of par value
|
|
|
|
|
64,097
|
|
|
|
64,092
|
|
Retained earnings
|
|
|
|
|
29,848
|
|
|
|
27,287
|
|
Total stockholders’ equity
|
|
|
|
|
95,523
|
|
|
|
92,957
|
|
TOTAL CAPITALIZATION
|
|
|
|
|
144,928
|
|
|
|
142,349
|
|
TOTAL LIABILITIES AND CAPITALIZATION
|
|
|
|
$
|
191,166
|
|
|
$
|
197,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
(amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
3,350
|
|
|
|
$
|
2,679
|
|
|
Less loss from discontinued operations
|
|
|
|
|
-
|
|
|
|
|
(23
|
)
|
|
Income from continuing operations
|
|
|
|
|
3,350
|
|
|
|
|
2,702
|
|
|
Adjustments to reconcile income from continuing operations
to
net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
2,055
|
|
|
|
|
1,957
|
|
|
Amortization of debt issuance costs
|
|
|
|
|
62
|
|
|
|
|
101
|
|
|
Provision for doubtful accounts
|
|
|
|
|
125
|
|
|
|
|
20
|
|
|
Amortization of deferred loss on sale-leaseback
|
|
|
|
|
282
|
|
|
|
|
170
|
|
|
Stock based compensation
|
|
|
|
|
5
|
|
|
|
|
34
|
|
|
Loss on sale of assets
|
|
|
|
|
2
|
|
|
|
|
529
|
|
|
Unrealized holding loss on contingent consideration
|
|
|
|
|
-
|
|
|
|
|
24
|
|
|
Change in fair value of derivative financial instruments
|
|
|
|
|
143
|
|
|
|
|
(89
|
)
|
|
Deferred income taxes
|
|
|
|
|
1,890
|
|
|
|
|
1,627
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, including related parties
|
|
|
|
|
853
|
|
|
|
|
(420
|
)
|
|
Unbilled gas
|
|
|
|
|
2,299
|
|
|
|
|
2,217
|
|
|
Natural gas inventory
|
|
|
|
|
3,097
|
|
|
|
|
2,730
|
|
|
Accounts payable, including related parties
|
|
|
|
|
(2,227
|
)
|
|
|
|
(896
|
)
|
|
Regulatory assets and liabilities
|
|
|
|
|
(498
|
)
|
|
|
|
(1,431
|
)
|
|
Other assets
|
|
|
|
|
239
|
|
|
|
|
297
|
|
|
Other liabilities
|
|
|
|
|
(791
|
)
|
|
|
|
(200
|
)
|
|
Net cash provided by operating activities
|
|
|
|
|
10,886
|
|
|
|
|
9,372
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(1,951
|
)
|
|
|
|
(2,310
|
)
|
|
Proceeds from sale of fixed assets
|
|
|
|
|
110
|
|
|
|
|
2
|
|
|
Contributions in aid of construction
|
|
|
|
|
588
|
|
|
|
|
120
|
|
|
Net cash used in investing activities
|
|
|
|
|
(1,253
|
)
|
|
|
|
(2,188
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from lines of credit
|
|
|
|
|
4,650
|
|
|
|
|
5,800
|
|
|
Repayments of lines of credit
|
|
|
|
|
(11,450
|
)
|
|
|
|
(4,400
|
)
|
|
Repayments of notes payable, including related parties
|
|
|
|
|
-
|
|
|
|
|
(6,633
|
)
|
|
Payments of capital lease obligations
|
|
|
|
|
(840
|
)
|
|
|
|
(651
|
)
|
|
Debt issuance costs
|
|
|
|
|
-
|
|
|
|
|
(23
|
)
|
|
Dividends paid
|
|
|
|
|
(789
|
)
|
|
|
|
-
|
|
|
Net cash used in financing activities
|
|
|
|
|
(8,429
|
)
|
|
|
|
(5,907
|
)
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows
|
|
|
|
|
-
|
|
|
|
|
(22
|
)
|
|
Net cash used in discontinued operations
|
|
|
|
|
-
|
|
|
|
|
(22
|
)
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
1,204
|
|
|
|
|
1,255
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
6,463
|
|
|
|
|
2,728
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
|
|
$
|
7,667
|
|
|
|
$
|
3,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
Natural Gas Operations
|
|
|
|
|
|
|
|
|
|
|
Utility Throughput
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
(in million cubic feet (MMcf))
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Full service distribution:
|
|
|
|
|
|
|
|
|
Energy West Montana (MT)
|
|
|
|
1,627
|
|
|
1,267
|
|
Frontier Natural Gas (NC)
|
|
|
|
372
|
|
|
410
|
|
Bangor Gas (ME)
|
|
|
|
741
|
|
|
548
|
|
Ohio Companies (OH)
|
|
|
|
1,336
|
|
|
1,383
|
|
Total full service distribution
|
|
|
|
4,076
|
|
|
3,608
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
|
|
3,548
|
|
|
3,232
|
|
|
|
|
|
|
|
|
|
|
Total volumes
|
|
|
|
7,624
|
|
|
6,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heating Degree Days
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Percent Colder (Warmer)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
2017 Compared to
|
|
|
|
|
|
|
Normal
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Normal
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Great Falls, MT
|
|
|
|
|
3,059
|
|
|
|
3,424
|
|
|
2,716
|
|
|
|
11.93%
|
|
|
26.07%
|
|
Bangor, ME
|
|
|
|
|
3,741
|
|
|
|
3,615
|
|
|
3,445
|
|
|
|
(3.37%)
|
|
|
4.93%
|
|
Elkin, NC
|
|
|
|
|
2,076
|
|
|
|
1,802
|
|
|
2,129
|
|
|
|
(13.20%)
|
|
|
(15.36%)
|
|
OH weighted average
|
|
|
|
|
2,999
|
|
|
|
2,365
|
|
|
2,599
|
|
|
|
(21.14%)
|
|
|
(9.00%)
|
|
Total Weighted Average
|
|
|
|
3,046
|
|
|
|
2,929
|
|
|
2,704
|
|
|
|
(3.84%)
|
|
|
8.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net
Income(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share amounts)
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
GAAP net income
|
|
|
|
$
|
3,350
|
|
|
|
$
|
2,679
|
|
|
Add back, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring legal, professional and settlement costs
|
|
|
|
|
226
|
|
|
|
|
85
|
|
|
Non-recurring regulatory and other expenses
|
|
|
|
|
65
|
|
|
|
|
-
|
|
|
Loss on disposal of assets
|
|
|
|
|
64
|
|
|
|
|
531
|
|
|
Tax effect of non-GAAP continuing operations items(1)
|
|
|
|
|
(132
|
)
|
|
|
|
(234
|
)
|
|
Discontinued operations
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
Non-GAAP Adjusted net income(2)
|
|
|
|
$
|
3,573
|
|
|
|
$
|
3,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted net income per diluted share(2)
|
|
|
|
$
|
0.34
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Applies an effective tax rate of 37.0% and 38.1% to the non-GAAP
pre-tax adjustments for the periods presented above, respectively,
consistent with the actual effective tax rates for those periods
excluding nonrecurring tax items.
|
|
|
|
|
|
(2)
|
|
Non-GAAP Financial Measures:
|
|
|
|
The Company believes that, when used in conjunction with GAAP
measures, Adjusted Net Income and Adjusted EBITDA, or earnings
before interest, taxes, depreciation, amortization, non-recurring
charges and discontinued operations, which are non-GAAP measures,
allow investors to view its performance in a manner similar to the
methods used by management and provides additional insight into its
operating results. Adjusted Net Income and Adjusted EBITDA are not
calculated through the application of GAAP and are not the required
form of disclosure by the Securities and Exchange Commission. As
such, these measures should not be considered as a substitute for
the GAAP measure of net income and, therefore, should not be used in
isolation of, but in conjunction with, the GAAP measure. The use of
any non-GAAP measure may produce results that vary from the GAAP
measure and may not be comparable to a similarly defined non-GAAP
measure used by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Natural Inc. and Subsidiaries
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA(2)
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
GAAP net income
|
|
|
$
|
3,350
|
|
|
$
|
2,679
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Net interest expense
|
|
|
|
782
|
|
|
|
753
|
|
Income tax expense
|
|
|
|
1,890
|
|
|
|
1,640
|
|
Depreciation and amortization
|
|
|
|
2,055
|
|
|
|
1,957
|
|
Non-recurring legal, professional and settlement costs
|
|
|
|
226
|
|
|
|
85
|
|
Non-recurring regulatory and other expenses
|
|
|
|
65
|
|
|
|
-
|
|
Loss on disposal of assets
|
|
|
|
64
|
|
|
|
531
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
23
|
|
Non-GAAP Adjusted EBITDA(2)
|
|
|
$
|
8,432
|
|
|
$
|
7,668
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Non-GAAP Financial Measures:
|
|
|
|
The Company believes that, when used in conjunction with GAAP
measures, Adjusted Net Income and Adjusted EBITDA, or earnings
before interest, taxes, depreciation, amortization, non-recurring
charges and discontinued operations, which are non-GAAP measures,
allow investors to view its performance in a manner similar to the
methods used by management and provide additional insight into its
operating results. Adjusted Net Income and Adjusted EBITDA are not
calculated through the application of GAAP and are not the required
form of disclosure by the Securities and Exchange Commission. As
such, these measures should not be considered as a substitute for
the GAAP measure of net income and, therefore, should not be used in
isolation of, but in conjunction with, the GAAP measure. The use of
any non-GAAP measure may produce results that vary from the GAAP
measure and may not be comparable to a similarly defined non-GAAP
measure used by other companies.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170510005233/en/ Copyright Business Wire 2017
Source: Business Wire
(May 10, 2017 - 6:30 AM EDT)
News by QuoteMedia
www.quotemedia.com
|
