CLEVELAND, March 16, 2017 /PRNewswire/ -- Gas Natural Inc.
(NYSE MKT: EGAS) (the "Company"), a holding company operating local
natural gas utilities serving approximately 69,400 customers in
four states, reported financial results for the fourth quarter and
year ended December 31, 2016.
Comparative results for the fourth quarter, and for full year 2016,
do not include the results of the Kentucky and Pennsylvania utilities which were divested in
the fourth quarter of 2015 ("Divestitures").
Fourth Quarter 2016 Summary
- Full service distribution throughput increased due to the
addition of approximately 800 new customers in the quarter
- Net income from continuing operations improved to $0.13 per share from $0.07 in 2015
- Merger approval process with regulators is progressing as
anticipated
Mr. Gregory J. Osborne, Gas
Natural's President and Chief Executive Officer, commented, "We
grew revenue and gross margin in the quarter as a result of growing
our customer base. This is a testament to our keen focus on
operations and growth."
He added, "In December, our shareholders overwhelmingly approved
our announced plan to be acquired by First Reserve. The
process to obtain approval from the regulatory authorities in
Maine, Montana, North
Carolina and Ohio is
progressing as anticipated. We continue to expect completion
of the transaction in the second half of 2017."
Fourth Quarter and 2016 Operations Review
|
|
Three Months
Ended
|
|
Years
Ended
|
(in
thousands)
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue by
segment:
|
|
|
|
|
|
|
|
Natural Gas
Operations
|
$ 27,251
|
|
$ 26,575
|
|
$
87,464
|
|
$ 103,978
|
Marketing &
Production
|
3,495
|
|
2,923
|
|
11,977
|
|
8,383
|
Consolidated
|
$
30,746
|
|
$
29,498
|
|
$
99,441
|
|
$
112,361
|
Revenue for the fourth quarter of 2016 increased approximately
4% over the prior-year quarter. Both of the Company's
operating segments contributed to the increase. The Natural
Gas Operations segment experienced higher volume driven by customer
growth, partially offset by lower natural gas prices and
$0.2 million less revenue from the
Divestitures. The Marketing & Production segment
recognized higher sales to the Company's former Wyoming operations which were divested in the
third quarter of 2015. Previously, such sales were recorded
as intercompany and eliminated from consolidated revenue.
Revenue for 2016 was down approximately 11% compared with the
prior year. The increase in Marketing & Production was
for the same reason as described above for the fourth
quarter. This was more than offset by the Natural Gas
Operations segment that was impacted by lower volume due to warmer
weather earlier in the year, lower gas prices, and a $1.6 million reduction from the Divestitures.
Changes in Gross
Margin (in thousands)
|
Three Months
Ended
|
|
Years
Ended
|
|
December 31,
2016
|
2015 Gross
Margin
|
$
12,255
|
|
$
44,209
|
Utilities
sold
|
117
|
|
(299)
|
Weather and other
volume changes
|
347
|
|
(1,695)
|
Impact of paper mill
closures
|
(125)
|
|
(1,826)
|
Gas cost
adjustment
|
-
|
|
693
|
New utility
customers
|
226
|
|
1,304
|
Natural Gas
Operations change
|
565
|
|
(1,823)
|
New marketing
customers
|
214
|
|
513
|
Pricing and
other
|
136
|
|
25
|
Marketing &
Production change
|
350
|
|
538
|
Consolidated gross
margin change
|
915
|
|
(1,285)
|
2016 Gross
Margin
|
$
13,170
|
|
$
42,924
|
|
|
|
|
Gross margin for the fourth quarter of 2016 increased 7%
compared with the prior-year period primarily due to increased full
service distribution throughput to new customers and colder
weather, partially offset by the impact of paper mill closures in
Maine. Customer count grew by approximately 800 in the fourth
quarter to 69,400, compared with the end of the third quarter of
2016.
Gross margin for 2016 decreased 3% compared with the prior-year
period. The decrease was primarily the result of warmer
weather earlier in the year in most of the Company's markets, the
impact of closed paper mills in Maine, and the Divestitures, partially offset
by new customers and the effect of a gas cost adjustment recorded
in 2015.
|
|
Three Months
Ended
|
|
Years
Ended
|
(in
thousands)
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating income
by segment:
|
|
|
|
|
|
|
|
Natural Gas
Operations
|
$
3,511
|
|
$
1,857
|
|
$
6,198
|
|
$
7,852
|
Marketing &
Production
|
314
|
|
(45)
|
|
1,184
|
|
(81)
|
Corporate &
Other
|
(1,367)
|
|
(388)
|
|
(4,330)
|
|
(2,667)
|
Consolidated
|
$
2,458
|
|
$
1,424
|
|
$
3,052
|
|
$
5,104
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA*
|
$
5,895
|
|
$
3,765
|
|
$
15,172
|
|
$
16,391
|
*See the attached tables for important disclosures regarding
the Company's use of earnings before interest, taxes, depreciation,
amortization, accretion, 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 2016 and 2015 fourth quarter and
annual periods.
For the fourth quarter of 2016, operating income was
$1.0 million higher than the
prior-year quarter primarily due to higher gross margin.
Comparing the annual periods, 2016 operating income was
$2.1 million lower than 2015,
primarily due to lower gross margin.
Within the Natural Gas Operations segment, operating expenses
for the quarter decreased $1.1
million as legal and professional expenses were down
$0.3 million and personnel costs were
also down $0.3 million. Those
reductions were partially offset by increased spending on
information technology.
On a full year basis, the Natural Gas Operations' operating
expenses were $0.2 million lower than
the prior year, primarily due to a $0.7
million decrease in expenditures for professional services
and a$0.6 million ongoing reduction
of expenses due to the Divestitures. Those decreases were
partially offset by higher spending on information
technology. The Marketing & Production segment benefited
from the favorable settlement of a legal matter in the second
quarter of 2016. Litigation, settlement and proxy contest
costs drove increased expenses within the Corporate & Other
segment.
Adjusted EBITDA, a non-GAAP financial measure, was up
approximately $2.1 million primarily
due to higher gross margin in the 2016 fourth quarter and higher
non-recurring items. On a full year basis, Adjusted EBITDA
was unfavorably impacted by lower gross margin and higher
information technology 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.
Excluding discrete items, the effective tax rates were 36.1% and
37.2% for the fourth quarters of 2016 and 2015, respectively.
Excluding discrete items for the annual periods, the effective tax
rates were 36.5% and 38.1% for 2016 and 2015, respectively.
The improvements in 2016 resulted from the benefit of an
R&D tax credit and a favorable change in the Company's blended
state tax rate.
Balance Sheet and Cash Management
Cash and cash equivalents as of December
31, 2016 grew to $6.5 million
from $2.7 million at December 31, 2015.
Cash provided by operating activities in 2016 was $11.4 million compared with $9.4 million in 2015, with the increase primarily
due to lower working capital requirements related to the lower
price of natural gas.
Capital expenditures for 2016 were $7.5
million compared with $9.6
million in 2015. Capital expenditures included
approximately $1.9 million and
$1.5 million in 2016 and 2015,
respectively, 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 $1.5 million in 2016 compared with $19.3 million in 2015. 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 69,400 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 the 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.
Additional Information and Where to Find It
In connection with the transaction with First Reserve described
above, on November 23, 2016, the
Company filed with the SEC and sent to its stockholders a
definitive proxy statement. INVESTORS AND SECURITY HOLDERS OF THE
COMPANY ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE
DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC WHEN THEY BECOME AVAILABLE. Investors and security
holders may obtain a free copy of the definitive proxy statement
and other documents filed with the SEC.
For more information, contact:
Gas Natural
Inc.
|
Investor
Relations
|
James E. Sprague,
Chief Financial Officer
|
Deborah K. Pawlowski
or Karen L. Howard, Kei Advisors LLC
|
Phone: (216)
202-1564
|
Phone: (716)
843-3908 / (716) 843-3942
|
Email:
jsprague@egas.net
|
Email:
dpawlowski@keiadvisors.com / khoward@keiadvisors.com
|
FINANCIAL TABLES FOLLOW.
Gas Natural Inc.
and Subsidiaries
|
Consolidated
Statements of Income
|
(in thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
REVENUE
|
|
|
|
|
|
|
|
Natural gas
operations
|
$
27,251
|
|
$
26,575
|
|
$
87,464
|
|
$
103,978
|
Marketing and
production
|
3,495
|
|
2,923
|
|
11,977
|
|
8,383
|
Total
revenue
|
30,746
|
|
29,498
|
|
99,441
|
|
112,361
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
|
|
|
|
|
Natural gas
purchased
|
14,602
|
|
14,492
|
|
45,812
|
|
60,502
|
Marketing and
production
|
2,974
|
|
2,751
|
|
10,705
|
|
7,650
|
Total cost of
sales
|
17,576
|
|
17,243
|
|
56,517
|
|
68,152
|
|
|
|
|
|
|
|
|
GROSS
MARGIN
|
13,170
|
|
12,255
|
|
42,924
|
|
44,209
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Distribution,
general, and administrative
|
7,343
|
|
7,131
|
|
27,338
|
|
26,104
|
Maintenance
|
269
|
|
551
|
|
984
|
|
1,422
|
Depreciation,
amortization and accretion
|
2,053
|
|
1,909
|
|
8,034
|
|
7,257
|
Taxes other than
income
|
964
|
|
1,096
|
|
4,006
|
|
4,119
|
Provision for
doubtful accounts
|
83
|
|
144
|
|
182
|
|
278
|
Contingent
consideration gain
|
-
|
|
-
|
|
(672)
|
|
(75)
|
Total operating
expenses
|
10,712
|
|
10,831
|
|
39,872
|
|
39,105
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
2,458
|
|
1,424
|
|
3,052
|
|
5,104
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
83
|
|
416
|
|
(65)
|
|
86
|
Interest
expense
|
(856)
|
|
(1,037)
|
|
(3,169)
|
|
(3,604)
|
Income (loss) before
income taxes
|
1,685
|
|
803
|
|
(182)
|
|
1,586
|
Income tax (expense)
benefit
|
(365)
|
|
(74)
|
|
707
|
|
(417)
|
INCOME FROM
CONTINUING OPERATIONS
|
1,320
|
|
729
|
|
525
|
|
1,169
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of income taxes
|
(5)
|
|
(526)
|
|
(12)
|
|
3,519
|
|
|
|
|
|
|
|
|
NET INCOME
|
$
1,315
|
|
$
203
|
|
$
513
|
|
$
4,688
|
|
|
|
|
|
|
|
|
Basic weighted shares
outstanding
|
10,518,062
|
|
10,504,319
|
|
10,510,644
|
|
10,496,979
|
Dilutive effect of
restricted stock awards
|
733
|
|
1,476
|
|
623
|
|
1,476
|
Diluted weighted
shares outstanding
|
10,518,795
|
|
10,505,795
|
|
10,511,267
|
|
10,498,455
|
|
|
|
|
|
|
|
|
BASIC & DILUTED
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.13
|
|
$
0.07
|
|
$
0.05
|
|
$
0.11
|
Discontinued
operations
|
-
|
|
(0.05)
|
|
-
|
|
0.34
|
Net income per
share
|
$
0.13
|
|
$
0.02
|
|
$
0.05
|
|
$
0.45
|
|
|
|
|
|
|
|
|
Weighted average
dividends declared per common share
|
$
0.075
|
|
$
0.270
|
|
$
0.300
|
|
$
0.540
|
Gas Natural Inc.
and Subsidiaries
|
Consolidated
Balance Sheets
|
(in
thousands)
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
6,463
|
|
$
2,728
|
Accounts receivable, less allowance for doubtful
accounts of $385 and $506,
respectively
|
11,093
|
|
10,823
|
Unbilled
gas
|
7,256
|
|
6,995
|
Inventory
|
|
|
|
Natural
gas
|
3,380
|
|
4,063
|
Materials and
supplies
|
2,065
|
|
2,271
|
Regulatory assets,
current
|
3,131
|
|
2,469
|
Other current
assets
|
2,423
|
|
2,174
|
Total current
assets
|
35,811
|
|
31,523
|
|
|
|
|
PROPERTY, PLANT,
& EQUIPMENT, NET
|
139,691
|
|
142,416
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
Regulatory assets,
non-current
|
1,032
|
|
1,523
|
Goodwill
|
15,872
|
|
15,872
|
Customer
relationships, net of amortization
|
2,322
|
|
2,625
|
Restricted
cash
|
-
|
|
1,898
|
Other non-current
assets
|
2,696
|
|
1,530
|
Total other
assets
|
21,922
|
|
23,448
|
TOTAL
ASSETS
|
$
197,424
|
|
$
197,387
|
Gas Natural Inc.
and Subsidiaries
|
Consolidated
Balance Sheets
|
(in thousands,
except share and per share data)
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
|
|
|
LIABILITIES AND
CAPITALIZATION
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Line of
credit
|
$
13,450
|
|
$
15,750
|
Accounts
payable
|
10,055
|
|
8,976
|
Notes payable,
current portion
|
-
|
|
5,012
|
Note payable to
related party
|
-
|
|
1,980
|
Accrued
liabilities
|
8,265
|
|
6,873
|
Regulatory liability,
current
|
-
|
|
487
|
Build-to-suit
liability
|
-
|
|
2,041
|
Capital lease
liability
|
3,618
|
|
2,876
|
Other current
liabilities
|
1,097
|
|
1,467
|
Total current
liabilities
|
36,485
|
|
45,462
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
Deferred tax
liability
|
11,280
|
|
12,295
|
Regulatory liability,
non-current
|
1,417
|
|
1,251
|
Capital lease
liability, non-current
|
2,780
|
|
5,177
|
Other long-term
liabilities
|
3,113
|
|
3,286
|
Total long-term
liabilities
|
18,590
|
|
22,009
|
|
|
|
|
NOTES PAYABLE, less
current portion
|
49,392
|
|
34,427
|
|
|
|
|
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
and 10,504,734 shares
as of December 31, 2016 and
2015, respectively
|
1,578
|
|
1,575
|
Capital in excess of
par value
|
64,092
|
|
63,985
|
Retained
earnings
|
27,287
|
|
29,929
|
Total stockholders'
equity
|
92,957
|
|
95,489
|
TOTAL
CAPITALIZATION
|
142,349
|
|
129,916
|
TOTAL LIABILITIES AND
CAPITALIZATION
|
$
197,424
|
|
$
197,387
|
Gas Natural Inc.
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
|
Years Ended
December 31,
|
|
|
|
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
513
|
|
$ 4,688
|
Less (loss)
incomefrom discontinued operations
|
(12)
|
|
3,519
|
Incomefrom continuing
operations
|
525
|
|
1,169
|
Adjustments to
reconcile incomefrom continuing operations to net cash provided by
operating activities:
|
|
|
|
Depreciation and
amortization
|
8,034
|
|
7,236
|
Accretion
|
-
|
|
21
|
Amortization of debt
issuance costs
|
487
|
|
656
|
Provision for
doubtful accounts
|
182
|
|
278
|
Amortization of
deferred loss on sale-leaseback
|
1,015
|
|
358
|
Stock based
compensation
|
107
|
|
161
|
Loss (gain) on sale
of assets
|
589
|
|
(118)
|
Unrealized holding
gain on contingent consideration
|
(672)
|
|
(75)
|
Change in fair value
of derivative financial instruments
|
(193)
|
|
(96)
|
Deferred income
taxes
|
(702)
|
|
2,150
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
including related parties
|
(451)
|
|
1,293
|
Unbilled
gas
|
(261)
|
|
658
|
Natural gas
inventory
|
683
|
|
1,239
|
Accounts payable,
including related parties
|
1,271
|
|
(4,665)
|
Regulatory assets and
liabilities
|
(1,148)
|
|
(1,283)
|
Other
assets
|
427
|
|
(680)
|
Other
liabilities
|
1,472
|
|
1,122
|
Net cash provided by
operating activities of continuing operations
|
11,365
|
|
9,424
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Capital
expenditures
|
(7,525)
|
|
(9,567)
|
Proceeds from sale of
fixed assets
|
25
|
|
4,054
|
Proceeds from note
receivable
|
-
|
|
92
|
Customer advances for
construction
|
78
|
|
33
|
Contributions in aid
of construction
|
1,351
|
|
1,193
|
Net cash used in
investing activities of continuing operations
|
(6,071)
|
|
(4,195)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from lines
of credit
|
24,750
|
|
14,150
|
Repayments of lines
of credit
|
(27,050)
|
|
(27,161)
|
Proceeds from notes
payable, including related parties
|
53,993
|
|
8,000
|
Repayments of notes
payable, including related parties
|
(45,715)
|
|
(6,542)
|
Payments of capital
lease obligations
|
(3,328)
|
|
(1,845)
|
Debt issuance costs
paid
|
(1,990)
|
|
(235)
|
Restricted cash -
debt service fund
|
948
|
|
-
|
Dividends
paid
|
(3,155)
|
|
(5,670)
|
Net cash used in
financing activities of continuing operations
|
(1,547)
|
|
(19,303)
|
|
|
|
|
DISCONTINUED
OPERATIONS
|
|
|
|
Operating cash
flows
|
(12)
|
|
845
|
Investing cash
flows
|
-
|
|
14,371
|
Net cash (used in)
provided by discontinued operations
|
(12)
|
|
15,216
|
|
|
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
3,735
|
|
1,142
|
Cash and cash
equivalents, beginning of period
|
2,728
|
|
1,586
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
$ 6,463
|
|
$ 2,728
|
Gas Natural Inc.
and Subsidiaries
Natural Gas Operations
|
|
|
|
|
|
|
|
|
Utility
Throughput
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
(in million cubic
feet (MMcf))
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Full service
distribution:
|
|
|
|
|
|
|
|
Energy West Montana
(MT)
|
1,064
|
|
1,037
|
|
3,080
|
|
3,076
|
Frontier Natural Gas
(NC)
|
288
|
|
258
|
|
1,014
|
|
926
|
Bangor Gas
(ME)
|
530
|
|
473
|
|
1,528
|
|
1,727
|
Ohio Companies
(OH)
|
1,163
|
|
968
|
|
3,419
|
|
3,560
|
Public Gas
(KY)
|
-
|
|
19
|
|
-
|
|
111
|
Total full service
distribution
|
3,045
|
|
2,755
|
|
9,041
|
|
9,400
|
|
|
|
|
|
|
|
|
Transportation
|
2,812
|
|
2,504
|
|
11,377
|
|
10,610
|
Bucksport
|
5
|
|
60
|
|
139
|
|
597
|
|
|
|
|
|
|
|
|
Total
volumes
|
5,862
|
|
5,319
|
|
20,557
|
|
20,607
|
Heating Degree
Days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Percent Colder
(Warmer)
|
|
|
|
|
December
31,
|
|
2016 Compared
to
|
|
|
Normal
|
|
2016
|
|
2015
|
|
Normal
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Great Falls,
MT
|
2,570
|
|
2,872
|
|
2,683
|
|
11.75%
|
|
7.04%
|
Bangor, ME
|
2,526
|
|
2,564
|
|
2,321
|
|
1.50%
|
|
10.47%
|
Elkin, NC
|
1,469
|
|
1,435
|
|
1,174
|
|
(2.31%)
|
|
22.23%
|
Lancaster,
OH
|
2,402
|
|
1,853
|
|
1,462
|
|
(22.86%)
|
|
26.74%
|
|
Total Weighted
Average
|
2,443
|
|
2,361
|
|
2,088
|
|
(3.36%)
|
|
13.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years
Ended
|
|
Percent Colder
(Warmer)
|
|
|
|
|
December
31,
|
|
2016 Compared
to
|
|
|
Normal
|
|
2016
|
|
2015
|
|
Normal
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Great Falls,
MT
|
6,929
|
|
7,049
|
|
6,916
|
|
1.73%
|
|
1.92%
|
Bangor, ME
|
7,483
|
|
7,174
|
|
8,058
|
|
(4.13%)
|
|
(10.97%)
|
Elkin, NC
|
3,837
|
|
4,029
|
|
3,831
|
|
5.00%
|
|
5.17%
|
Lancaster,
OH
|
5,889
|
|
5,053
|
|
5,281
|
|
(14.20%)
|
|
(4.32%)
|
|
Total Weighted
Average
|
6,403
|
|
6,101
|
|
6,211
|
|
(4.72%)
|
|
(1.77%)
|
Gas Natural Inc. and
Subsidiaries
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net
Income(2)
|
|
|
|
|
(in thousands,
except per share data)
|
Three Months
Ended
|
|
Years
Ended
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP net
income
|
$ 1,315
|
|
$ 203
|
|
$
513
|
|
$ 4,688
|
Add back,
pre-tax:
|
|
|
|
|
|
|
|
Non-recurring legal,
professional and settlement costs
|
1,251
|
|
484
|
|
4,242
|
|
2,498
|
Non-recurring
regulatory and other expenses
|
-
|
|
-
|
|
-
|
|
1,111
|
Gain on cancellation
of contingent consideration liability
|
-
|
|
-
|
|
(672)
|
|
-
|
Loss on disposal of
assets
|
50
|
|
(468)
|
|
581
|
|
335
|
Tax effect of
non-GAAP continuing operations items(1)
|
(470)
|
|
152
|
|
(1,515)
|
|
(1,502)
|
Discontinued
operations
|
5
|
|
526
|
|
12
|
|
(3,519)
|
Non-GAAP Adjusted net
income(2)
|
$ 2,151
|
|
$ 897
|
|
$ 3,161
|
|
$ 3,611
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted net
income per diluted share(2)
|
$
0.20
|
|
$0.09
|
|
$
0.30
|
|
$
0.34
|
|
|
(1)
|
Applies an
effective tax rate of 36.1%, 37.2%, 36.5% 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, accretion,
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
|
|
Years
Ended
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP net
income
|
$ 1,315
|
|
$
203
|
|
$
513
|
|
$
4,688
|
Add back:
|
|
|
|
|
|
|
|
Net interest
expense
|
856
|
|
1,037
|
|
3,169
|
|
3,604
|
Income tax (benefit)
expense
|
365
|
|
74
|
|
(707)
|
|
417
|
Depreciation,
amortization and accretion
|
2,053
|
|
1,909
|
|
8,034
|
|
7,257
|
Non-recurring legal,
professional and settlement costs
|
1,251
|
|
484
|
|
4,242
|
|
2,498
|
Non-recurring
regulatory and other expenses
|
-
|
|
-
|
|
-
|
|
1,111
|
Gain on cancellation
of contingent consideration liability
|
-
|
|
-
|
|
(672)
|
|
-
|
Loss (gain) on
disposal of assets
|
50
|
|
(468)
|
|
581
|
|
335
|
Discontinued
operations
|
5
|
|
526
|
|
12
|
|
(3,519)
|
Non-GAAP Adjusted
EBITDA(2)
|
$ 5,895
|
|
$ 3,765
|
|
$ 15,172
|
|
$ 16,391
|
|
|
(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, accretion,
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gas-natural-inc-reports-2016-fourth-quarter-and-full-year-results-300424523.html
SOURCE Gas Natural Inc.