Gas Natural Inc.

CIK:0000043350|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUES
Natural gas operations	$ 14,995	$ 14,606	$ 50,914	$ 49,670
Marketing & production	1,763	2,427	5,703	5,670
Total revenues	16,758	17,033	56,617	55,340
COST OF SALES
Natural gas purchased	6,928	6,569	27,530	27,191
Marketing & production	1,615	2,031	5,308	4,971
Total cost of sales	8,543	8,600	32,838	32,162
GROSS MARGIN	8,215	8,433	23,779	23,178
OPERATING EXPENSES
Distribution, general, and administrative	5,531	7,169	11,570	13,096
Maintenance	365	240	635	504
Depreciation, amortization and accretion	2,037	2,010	4,092	3,967
Taxes other than income	1,045	938	2,193	2,018
Provision for doubtful accounts	83	57	208	77
Total operating expenses	9,061	10,414	18,698	19,662
OPERATING INCOME (LOSS)	(846)	(1,981)	5,081	3,516
Other income (loss), net	127	138	222	(264)
Interest expense	(737)	(762)	(1,519)	(1,515)
Income (loss) before income taxes	(1,456)	(2,605)	3,784	1,737
Income tax (benefit) expense	(1,109)	(934)	781	706
INCOME (LOSS) FROM CONTINUING OPERATIONS	(347)	(1,671)	3,003	1,031
Discontinued operations, net of tax (see Note 2)	(39)	14	(39)	(9)
NET INCOME (LOSS)	$ (386)	$ (1,657)	$ 2,964	$ 1,022
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations (in dollars per share)	$ (0.03)	$ (0.16)	$ 0.28	$ 0.10
Discontinued operations (in dollars per share)	0	0	0	0
Net income (loss) per share (in dollars per share)	(0.03)	(0.16)	0.28	0.10
Dividends declared per common share (in dollars per share)	$ 0.075	$ 0.075	$ 0.15	$ 0.15

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 2,964	$ 1,022
Less: loss from discontinued operations	(39)	(9)
Income from continuing operations	3,003	1,031
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	4,092	3,967
Amortization of debt issuance costs	124	206
Provision for doubtful accounts	208	77
Amortization of deferred loss on sale-leaseback	563	451
Stock based compensation	10	70
Loss on sale of assets	55	529
Unrealized holding gain on contingent consideration	0	(672)
Change in fair value of derivative financial instruments	208	(168)
Investment tax credit	(11)	(11)
Deferred income taxes	939	702
Changes in assets and liabilities
Accounts receivable, including related parties	6,538	3,741
Unbilled gas	5,792	5,518
Natural gas inventory	1,124	1,555
Accounts payable, including related parties	(5,908)	(4,252)
Regulatory assets & liabilities	(429)	72
Prepayments and other	(138)	(62)
Other assets	348	848
Other liabilities	(1,479)	1,074
Net cash provided by operating activities	15,039	14,676
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(5,737)	(4,130)
Proceeds from sale of fixed assets	112	2
Customer advances for construction	98	67
Contributions in aid of construction	746	708
Net cash used in investing activities	(4,781)	(3,353)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit	9,720	5,800
Repayments of lines of credit	(16,470)	(6,500)
Repayments of notes payable	0	(6,760)
Proceeds from notes payable, including related parties	0	4,000
Repayment of capital lease obligations	(1,740)	(1,470)
Debt issuance costs paid	0	(168)
Dividends paid	(1,578)	(788)
Net cash used in financing activities	(10,068)	(5,886)
DISCONTINUED OPERATIONS
Operating cash flows	(1)	(9)
Net cash used in discontinued operations	(1)	(9)
NET INCREASE IN CASH AND CASH EQUIVALENTS	189	5,428
Cash and cash equivalents, beginning of period	6,463	2,728
CASH AND CASH EQUIVALENTS, END OF PERIOD	6,652	8,156
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	1,211	1,731
Cash received (paid) from income tax refunds, net	6	(163)
NONCASH INVESTING AND FINANCING ACTIVITIES
Restricted cash released from customer deposit	0	450
Assets acquired under build-to-suit agreement	0	516
Capital expenditures included in accounts payable	63	427
Capitalized interest	$ 0	$ 139

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 6,652	$ 6,463
Accounts receivable, less allowance for doubtful accounts of $485 and $385, respectively	4,346	11,093
Unbilled gas	1,464	7,256
Inventory
Natural gas	2,257	3,380
Materials and supplies	2,231	2,065
Regulatory assets, current	3,572	3,131
Other current assets	1,975	2,423
Total current assets	22,497	35,811
PROPERTY, PLANT, & EQUIPMENT, NET	140,557	139,691
OTHER ASSETS
Regulatory assets, non-current	785	1,032
Goodwill	15,872	15,872
Customer relationships, net of amortization	2,170	2,322
Other non-current assets	1,959	2,696
Total other assets	20,786	21,922
TOTAL ASSETS	183,840	197,424
CURRENT LIABILITIES
Line of credit	6,700	13,450
Accounts payable	4,042	10,055
Accrued liabilities	5,762	8,265
Capital lease liability, current	3,051	3,618
Other current liabilities	504	460
Total current liabilities	20,059	35,848
LONG-TERM LIABILITIES
Deferred tax liability	12,859	11,917
Regulatory liability, non-current	1,500	1,417
Capital lease liability, non-current	1,606	2,780
Other long-term liabilities	4,046	3,113
Total long-term liabilities	20,011	19,227
NOTES PAYABLE	49,418	49,392
COMMITMENTS AND CONTINGENCIES (see Note 12)
STOCKHOLDERS’ EQUITY
Preferred stock: $0.15 par value; 1,500,000 shares authorized, no shares issued or outstanding	0	0
Common stock: $0.15 par value; Authorized: 30,000,000 shares; Issued and outstanding: 10,519,728 shares as of June 30, 2017 and December 31, 2016	1,578	1,578
Capital in excess of par value	64,101	64,092
Retained earnings	28,673	27,287
Total stockholders’ equity	94,352	92,957
TOTAL CAPITALIZATION	143,770	142,349
TOTAL LIABILITIES AND CAPITALIZATION	$ 183,840	$ 197,424