UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2007

Commission File Number 000-00643

 

 

CORNING NATURAL GAS CORPORATION

(Exact name of Registrant as specified in its charter)

**New York **16-0397420
(State of incorporation)
(I.R.S. Employer Identification No.)
**330 West William Street, Corning New York 14830**
(Address of principal executive offices) (Zip Code)
**(607) 936-3755**
(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 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 [ ] 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer [ ] 	Accelerated Filer [ ]	Non-accelerated Filer [X]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Indicate the number of Shares outstanding of each of the issuer's common stock as of the latest practicable date.

Common Stock, $5.00 par value
506,918
Class
Shares outstanding as of August 13, 2007

As used in this Form 10-Q, the terms "Company," "Corning," "Registrant," "we," "us," and "our" mean Corning Natural Gas Corporation and its consolidated subsidiaries, taken as a whole, unless the context indicates otherwise. Except as otherwise stated, the information contained in this Form 10-Q is as of June 30, 2007.
** **
 
 
 
 **PART I. **FINANCIAL INFORMATION
 
Item 1. 
Financial Statements (Unaudited) 
 
 
Item 2. 
Management's Discussion and Analysis of Financial
 
 
 
Condition and Results of Operations
 
 
Item 3. 
Quantitative and Qualitative Disclosures about Market Risk
 
 
Item 4. 
Controls and Procedures
 **PART II. **Other Information
 
 
Item 1. 
Legal Proceedings 
 
 
Item 1A.
Risk Factors
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
 
Item 3. 
Defaults upon Senior Securities
 
 
Item 4. 
Submission of Matters to a Vote of Security Holders
 
 
Item 5. 
Other Information
 
 
Item 6. 
Exhibits
 
 **SIGNATURES
 
 
**PART I

FINANCIAL INFORMATION

Item 1. 	Financial Statements.**
CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Quarter Ended
Nine Months Ended
Condensed Consolidated Statements of Income
Unaudited
June 30, 2007
June 30, 2006
June 30, 2007
June 30, 2006
Utility Operating Revenues
5,265,920 
5,534,561 
22,002,172 
24,541,370 
Cost and Expense
Natural Gas Purchased
2,984,967 
3,845,959 
13,319,570 
18,042,660 
Operating & Maintenance Expense
1,646,605 
1,321,696 
4,960,756 
4,121,280 
Taxes other than Income Taxes
318,241 
288,114 
1,089,787 
915,013 
Depreciation
156,886 
134,299 
467,194 
379,407 
Other Deductions, Net
172,932 
7,723 
612,434 
23,023 
Total Costs and Expenses
5,279,631 
5,597,791 
20,449,741 
23,481,383 
Utility Operating Income (Loss)
(13,711)
(63,230)
1,552,431 
1,059,987 
Other Income and (Expense)
Interest Expense
(335,323)
(444,497)
(1,110,394)
(1,184,616)
Interest Income
149,724 
38,044 
315,121 
143,799 
Net Income (Loss) from Utility Operations, Before Income Tax
(199,310)
(469,683)
757,158 
19,170 
Income Tax Benefit (Expense) 
93,845 
185,810 
(261,183)
61,898 
Net Income (Loss) from Continued Operations
(105,465)
(283,873)
495,975 
81,068 
Income (Loss) from Discontinued Operations, Net of Income Tax
27,839 
(38,728)
35,601 
(104,707)
Net Income (Loss)
(77,626)
(322,601)
531,576 
(23,639)
Other Comprehensive Income (Loss)
(30,550)
(54,323)
(15,742)
(41,998)
Total Comprehensive Income (Loss)
(108,176)
(376,924)
515,834 
(65,637)
Weighted average earnings per share-
basic & diluted:
From Continued Operations
($0.208)
($0.560)
$0.978 
$0.160 
From Discontinued Operations
$0.055 
($0.076)
$0.070 
($0.207)
($0.153)
($0.636)
$1.048 
($0.047)
Weighted average shares outstanding
506,918 
506,918 
506,918 
506,918 ** 

 

 

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
Assets
June 30, 2007
September 30, 2006
Plant:
Utility property, plant and equipment
$29,273,599 
$28,480,707 
Non-utility assets - discontinued operations, net
17,725 
177,230 
Less: accumulated depreciation
(11,230,503)
(10,770,476)
Total plant utility and non-utility, net
18,060,821 
17,887,461 
Investments:
Marketable securities available-for-sale at fair value
2,664,837 
2,662,009 
Current assets:
Cash and cash equivalents
136,401 
1,170,070 
Customer accounts receivable, (net of allowance for
uncollectible accounts of $151,769 and $97,000)
1,867,886 
1,460,621 
Gas stored underground, at average cost
2,111,302 
0 
Materials and supplies inventory 
409,103 
343,286 
Prepaid expenses
813,912 
717,023 
Current assets - discontinued operations
35,750 
46,113 
Total current assets
5,374,354 
3,737,113 
Deferred debits and other assets:
Regulatory assets:
Unrecovered gas costs
0 
64,906 
Deferred regulatory costs
2,433,865 
2,326,843 
Deferred pension and other
197,244 
202,448 
Goodwill (net of accumulated
Unamortized debt issuance cost (net of accumulated
amortization of $281,853 and $269,849)
218,138 
236,143 
Other
155,913 
184,437 
Discontinued Operations- other
36,603 
36,602 
Total deferred debits and other assets
3,041,763 
3,051,379 
Total assets
29,141,775 
27,337,962 
See accompanying notes to consolidated financial statements.** 

 

CORNING NATURAL GAS CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
June 30, 2007
September 30, 2006
Capitalization and liabilities:
Common stockholders' equity:
Common stock (common stock $5.00 par
value per share. Authorized 3,500,000 shares;
issued and outstanding 507,000 shares at June 30, 2007
and September 30, 2006)
$2,534,590 
$2,534,590 
Other paid-in capital
959,512 
959,512 
Retained earnings
(124,653)
(656,229)
Accumulated other comprehensive loss
(208,322)
(192,580)
Total common stockholders' equity
3,161,127 
2,645,293 
Long-term debt, less current installments
8,661,774 
8,590,000 
Long-term debt, less current installments - discontinued operations
0 
56,842 
Total Long-term debt
8,661,774 
8,646,842 
Current liabilities:
Current portion of long-term debt
460,412 
455,000 
Demand Note Payable
1,171,659 
1,456,662 
Borrowings under lines-of-credit
6,525,000 
6,550,000 
Accounts payable
2,764,626 
1,333,940 
Accrued expenses
1,092,068 
1,184,617 
Customer deposits and accrued interest
518,630 
1,025,907 
Deferred income taxes 
736,035
434,635 
Other current liabilities - discontinued operations
(83,424)
(63,795)
Total current liabilities
13,185,006******************