GREAT FALLS, Mont., Nov. 17 MT-Energy-West-Earns
GREAT 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 debt3,748,7652,560,9275,108,796
Unbilled gas 1,355,105 747,4671,252,638
Derivative assets 53,844 43,870 145,428
Natural gas and propane
inventories 10,787,6078,633,1155,505,337
Materials and supplies 1,367,135 428,417 955,467
Prepayments and other566,355 397,723 193,581
Income tax receivable955,274 438,466 417,164
Recoverable cost of gas
purchases 3,000,5342,529,8821,054,875
Total current assets22,828,344 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 2,672,7013,003,0292,761,656
Marketable securities available
for sale at fair market value 3,800,121 --
Other Investments1,118,264 766,1131,118,264
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 5,750,2382,977,0797,439,748
Line of credit11,685,000 --
Derivative liabilities54,622 44,040 146,206
Deferred income taxes755,782 225,731 18,039
Accrued and other current
liabilities 4,286,6844,205,5363,302,712
Refundable purchased gas costs 362,5971,332,340 522,347
Total current liabilities 23,514,2638,784,726 11,961,953
Other Obligations:
Deferred income taxes- 4,511,474 -
Deferred investment tax credits 244,831 265,893 250,096
Other long-term liabilities3,945,8134,021,4963,939,976
Total4,190,6448,798,8634,190,072
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 6,298,7535,864,0176,280,649
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 CAPITALIZATION43,740,795 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 - wholesale5,005,390 2,378,688
Pipeline operations 118,03793,465
Total revenues13,986,629 7,493,375
EXPENSES:
Gas purchased 5,271,121 2,831,652
Gas and electric - wholesale4,171,544 1,986,336
Total cost of sales9,442,665 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 INCOME710,620 117,404
OTHER INCOME 96,66987,750
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
