Energy West Reports Net Income Increase for Quarter Ended September 30, 2008 Compared to Same Period in 2007 and Sets Date for Annual Meeting of Share
Mon Nov 17, 11:58 AMGREAT FALLS, Mont., Nov. 17 /PRNewswire-FirstCall/ -- Energy West, Incorporated (Nasdaq: EWST) on November 14, 2008, reported its results for the quarter ended September 30, 2008.
Net income for the quarter ended September 30, 2008 was $386,000, or $0.09 per diluted share, compared to net income of $75,000, or $0.02 per diluted share, for the same period in 2007, an increase of 415%. The Natural Gas Operations segment contributed a net loss of $52,000 for the quarter ended September 30, 2008 compared to a net loss of $111,000 for the same period in 2007. The Natural Gas Operations segment typically reports a net loss for the quarter ended September 30 due to the impact of seasonality on the natural gas business from the low demand in the summer months. The Marketing and Production segment contributed net income of $395,000 for the quarter ended September 30, 2008 compared to net income of $169,000 for the same period in 2007. The Pipeline Operations segment contributed net income of $39,000 for the quarter ended September 30, 2008 compared to $16,000 for the same period in 2007.
Effective January 1, 2009, Energy West's fiscal year-end will change from June 30 to a calendar year basis of December 31.
"In what is typically a low income quarter for gas utilities due to seasonality, this quarter was another step forward for Energy West," said Richard M. Osborne, Chairman and CEO of Energy West. "The results at our Energy West Resources subsidiary in our Marketing and Production segment led the way this quarter. We continue to do all the necessary work to make our gas utilities even more efficient and customer focused going forward."
In addition, Energy West's 2008 annual meeting of shareholders has been set for December 11, 2008 and will be held at LaMalfa Centre, 5983 Heisley Road, Mentor, OH 44060 at 10 a.m. Eastern Standard Time.
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, Energy West, Incorporated. 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 complete the terms and conditions set forth in the definitive agreement with Orwell Natural Gas Company, Northeast Ohio Natural Gas Corp. and Brainard Natural Gas Corp, such as the receipt of regulatory and shareholder approvals and other closing conditions, any failure of which may delay or prevent the closing of the acquisition; the acquisition may involve unexpected costs; the expected benefits of the acquisition may not be achieved in a timely manner or at all; the company's ability to successfully integrate the operations of acquired companies; the company's continued ability to make dividend payments; the company's ability to implement its business plan; 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; future utilization of pipeline capacity; the company's ability to meet financial covenants in debt agreements; changes in accounting policies; the company's ability to implement key systems; wholesale and retail competition; weather conditions; litigation risks; risks associated with contracts accounted for as derivatives; the company's ability to maintain effective internal controls in accordance with Section 404 of Sarbanes-Oxley 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, including the company's filing on Form 10-K for the year ended June 30, 2008, and other factors that the company is currently unable to identify or quantify, but may exist in the future. Energy West expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Energy West's expectations or any change in events, conditions or circumstances on which any such statement is based.
About Energy West
Energy West, Incorporated distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 23 billion cubic feet of natural gas to approximately 36,000 customers through regulated utilities operating in Montana, Wyoming, North Carolina and Maine. The company markets approximately 1.6 billion cubic feet of natural gas to commercial and industrial customers in Montana and Wyoming on an unregulated basis. The company also has a majority ownership interest in 162 natural gas producing wells and gas gathering assets. In addition, the company owns the Shoshone interstate and the Glacier gathering pipelines located in Montana and Wyoming. The company's Montana public utility was originally incorporated in 1909 and is headquartered in Great Falls, Montana.
For additional information about Energy West, please contact: James W. Garrett, vice president of business development, at (440) 205-1987.
The company's toll-free number is (800) 570-5688. The company's address is 1 First Avenue South, Great Falls, Montana 59401 and its website is http://www.EnergyWest.com.
ENERGY WEST INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS, SEPTEMBER 30, 2008 AND 2007,
AND JUNE 30, 2008
September 30, June 30,
(unaudited) (audited)
2008 2007 2008
ASSETS
Current Assets:
Cash $993,725 $1,448,603 $796,302
Marketable securities - - 910,778
Accounts and notes receivable
less $161,256, $81,867, and
$136,399, respectively,
allowance for bad debt 3,748,765 2,560,927 5,108,796
Unbilled gas 1,355,105 747,467 1,252,638
Derivative assets 53,844 43,870 145,428
Natural gas and propane
inventories 10,787,607 8,633,115 5,505,337
Materials and supplies 1,367,135 428,417 955,467
Prepayments and other 566,355 397,723 193,581
Income tax receivable 955,274 438,466 417,164
Recoverable cost of gas
purchases 3,000,534 2,529,882 1,054,875
Total current assets 22,828,344 17,228,470 16,340,366
Property, Plant and Equipment, Net 33,818,267 30,792,443 32,475,133
Deferred Tax Assets - Long-Term 6,806,557 - 6,825,575
Deferred Charges 2,672,701 3,003,029 2,761,656
Marketable securities available
for sale at fair market value 3,800,121 - -
Other Investments 1,118,264 766,113 1,118,264
Other Assets 401,448 700,972 279,810
TOTAL ASSETS $71,445,702 $52,491,027 $59,800,804
LIABILITIES AND CAPITALIZATION
Current Liabilities:
Bank overdraft $619,340 $- $532,901
Accounts payable 5,750,238 2,977,079 7,439,748
Line of credit 11,685,000 - -
Derivative liabilities 54,622 44,040 146,206
Deferred income taxes 755,782 225,731 18,039
Accrued and other current
liabilities 4,286,684 4,205,536 3,302,712
Refundable purchased gas costs 362,597 1,332,340 522,347
Total current liabilities 23,514,263 8,784,726 11,961,953
Other Obligations:
Deferred income taxes - 4,511,474 -
Deferred investment tax credits 244,831 265,893 250,096
Other long-term liabilities 3,945,813 4,021,496 3,939,976
Total 4,190,644 8,798,863 4,190,072
Long-Term Debt 13,000,000 13,000,000 13,000,000
Commitments and Contingencies
(see note 5)
Stockholders' Equity:
Preferred stock; $.15 par value,
1,500,000 shares authorized,
no shares outstanding - - -
Common stock; $.15 par value,
5,000,000 shares authorized,
4,348,894, 4,284,579 and
4,347,769 shares outstanding
at September 30, 2008 and 2007,
and June 30, 2008 respectively 652,334 642,390 652,165
Capital in excess of par value 6,298,753 5,864,017 6,280,649
Accumulated other comprehensive
income 209,234 - -
Retained earnings 23,580,474 15,401,031 23,715,965
Total stockholders' equity 30,740,795 21,907,438 30,648,779
TOTAL CAPITALIZATION 43,740,795 34,907,438 43,648,779
TOTAL LIABILITIES AND
CAPITALIZATION $71,445,702 $52,491,027 $59,800,804
Please refer to the notes as filed on Form 10-Q that are an integral part
of these condensed consolidated financial statements.
ENERGY WEST, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
Three Months Ended
September 30,
(unaudited)
2008 2007
REVENUES:
Natural gas operations $8,863,202 $5,021,222
Gas and electric - wholesale 5,005,390 2,378,688
Pipeline operations 118,037 93,465
Total revenues 13,986,629 7,493,375
EXPENSES:
Gas purchased 5,271,121 2,831,652
Gas and electric - wholesale 4,171,544 1,986,336
Total cost of sales 9,442,665 4,817,988
GROSS MARGIN 4,543,964 2,675,387
Distribution, general, and administrative 2,632,290 1,602,981
Maintenance 160,541 154,418
Depreciation and amortization 505,912 432,689
Taxes other than income 534,601 367,895
Total expenses 3,833,344 2,557,983
OPERATING INCOME 710,620 117,404
OTHER INCOME 96,669 87,750
INTEREST EXPENSE (240,572) (200,243)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAX EXPENSE 566,717 4,911
INCOME TAX (EXPENSE) BENEFIT (180,381) 69,898
NET INCOME $386,336 $74,809
BASIC INCOME PER COMMON SHARE:
Income from continuing operations $0.09 $0.02
DILUTED INCOME PER COMMON SHARE:
Income from continuing operations $0.09 $0.02
DIVIDENDS DECLARED PER COMMON SHARE: $0.12 $0.11
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 4,348,239 4,282,598
Diluted 4,349,737 4,338,323
Please refer to the notes as filed on Form 10-Q that are an integral part
of these condensed consolidated financial statements.
SOURCE Energy West, Incorporated
100.26 (1.10%)
