GREAT FALLS, Mont., May 15 /PRNewswire-FirstCall/ -- Energy West, Incorporated , a natural gas utility and energy marketing company, today filed its Form 10-Q with the Securities and Exchange Commission for the quarter ended March 31, 2009. Net income for the quarter ended March 31, 2009 was $2.0 million, or $0.46 per diluted share, compared to net income of $2.3 million, or $0.53 per diluted share, for the same period in 2008. The Natural Gas Operations segment contributed net income of $1.5 million for the first quarter compared to $1.6 million for the same quarter of 2008. The Marketing and Productions segment contributed net income of $422,915 compared to $671,125 for the same quarter of 2008. The Pipeline Operations segment contributed net income of $29,508 for the first quarter of 2009 compared to $21,805 for the same quarter in 2008. Operating revenue for the three months ended March 31, 2009 was $31.3 million compared to $30.9 million for the same period in 2008 primarily attributable to an increase in the operating revenue of the Natural Gas Operations segment as a result of sales growth in the Maine market. Net income for the quarter ended March 31, 2009 was impacted by an increase in interest expense of $58,204 from the same period in 2008 due to an increase in borrowings resulting from higher natural gas prices during the summer and fall of 2008 and an increase in income tax expense of $223,647 from the same period in 2008.
In August 2008, the Company changed its fiscal year end from June 30 to December 31. The Form 10-Q covers the first quarter of calendar year 2009.
The Company's Board of Directors approved the monthly dividend of $0.045 per share. The dividend will be payable on May 29, 2009 to shareholders of record as of May 13, 2009.
"Energy West continues to provide consistent earnings and a solid dividend during a quarter when customers focused on conservation and companies experienced cut backs," said Richard M. Osborne, Chairman and CEO of Energy West. "We are pleased to report that our operating revenue in our Natural Gas Operations segment increased as a result of sales growth in our newly-acquired Maine market. This increase in operating revenue validates our acquisition decision in the Maine market as we look forward to continued future growth. We continue to do all the necessary work to make our gas utilities even more efficient and customer focused going forward."
About Energy West
Energy West, Incorporated distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 26 billion cubic feet of natural gas to approximately 37,000 customers through regulated utilities operating in Montana, Wyoming, North Carolina and Maine. The company markets approximately 2.3 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 160 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.
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. 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 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, wholesale and retail competition, 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. 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 with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
For additional information or clarification regarding Energy West, please contact: Kevin Degenstein, President and Chief Operating Officer.
The company's toll-free number is (800) 570-5688. The company's web site is http://www.ewst.com/. The company's address is 1 First Avenue South, Great Falls, Montana 59401.
ENERGY WEST, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Three Months Ended March 31, (unaudited) 2009 2008 REVENUES: Natural gas operations $26,141,570 $24,167,479 Gas and electric-wholesale 5,079,587 6,620,996 Pipeline operations 112,666 89,797 Total revenues 31,333,823 30,878,272 EXPENSES: Gas purchased 19,434,852 17,709,457 Gas and electric-wholesale 4,124,894 5,529,655 Total cost of sales 23,559,746 23,239,112 GROSS MARGIN 7,774,077 7,639,160 Distribution, general, and administrative 2,895,554 2,750,428 Maintenance 171,407 203,190 Depreciation and amortization 513,674 487,248 Taxes other than income 629,580 644,844 Total expenses 4,210,215 4,085,710 OPERATING INCOME 3,563,862 3,553,450 OTHER (LOSS) INCOME (24,979) 48,157 INTEREST EXPENSE (345,952) (287,748) INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE 3,192,931 3,313,859 INCOME TAX EXPENSE (1,230,208) (1,006,561) NET INCOME $1,962,723 $2,307,298 BASIC INCOME PER COMMON SHARE: Income from continuing operations $0.46 $0.53 DILUTED INCOME PER COMMON SHARE: Income from continuing operations $0.46 $0.53 DIVIDENDS DECLARED PER COMMON SHARE: $0.12 $0.11 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 4,298,092 4,337,363 Diluted 4,301,522 4,342,462 Please refer to the notes as filed on Form 10-Q that are an integral part of these condensed financial statements. CONSOLIDATED BALANCE SHEETS March 31, December 31, (unaudited) (audited) 2009 2008 2008 ASSETS Current Assets: Cash $1,419,502 $2,264,078 $1,065,529 Marketable securities 3,158,289 301,989 3,376,875 Accounts and notes receivable less $279,033, $195,384, and $207,942, respectively, allowance for bad debt 7,719,238 7,261,014 7,430,694 Unbilled gas 3,090,245 2,783,185 4,839,138 Derivative assets - 92,258 - Natural gas and propane inventories 308,719 442,069 9,891,802 Materials and supplies 1,178,781 972,792 1,175,596 Prepayments and other 592,877 565,366 422,514 Income tax receivable - 1,005,762 1,014,806 Recoverable cost of gas purchases 920,872 2,158,343 2,041,280 Deferred tax asset 1,041,679 - 225,953 Total current assets 19,430,202 17,846,856 31,484,187 Property, Plant and Equipment, Net 35,922,043 30,119,485 34,904,442 Deferred Tax Assets - Long-Term 5,238,266 7,095,185 5,693,310 Deferred Charges 2,422,311 2,820,116 2,558,156 Other Investments 1,323,298 597,792 1,081,423 Other Assets 94,646 405,046 97,447 TOTAL ASSETS $64,430,766 $58,884,480 $75,818,965 LIABILITIES AND CAPITALIZATION Current Liabilities: Bank overdraft $463,700 $- $773,199 Accounts payable 5,092,863 6,035,241 5,783,927 Line of credit 5,595,000 - 17,551,276 Derivative liabilities - 92,423 - Accrued taxes 478,818 - - Deferred income taxes - 73,711 - Accrued and other current liabilities 4,339,533 4,214,539 4,982,684 Overrecovered gas purchases 1,435,172 1,513,240 1,022,853 Total current liabilities 17,405,086 11,929,154 30,113,939 Other Obligations: Deferred investment tax credits 234,300 255,362 239,565 Other long-term liabilities 2,398,502 2,515,564 2,383,323 Total 2,632,802 2,770,926 2,622,888 Long-Term Debt 13,000,000 13,000,000 13,000,000 Commitments and Contingencies (see note 11) 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, 4,299,536, 4,346,644 and 4,296,603 shares outstanding at March 31, 2009 and 2008, and December 31, 2008 respectively 652,943 651,997 652,503 Treasury stock (8,012) - (8,012) Capital in excess of par value 5,952,168 6,192,241 5,926,028 Accumulated other comprehensive income (453,665) - (319,147) Retained earnings 25,249,444 24,340,162 23,830,766 Total stockholders' equity 31,392,878 31,184,400 30,082,138 TOTAL CAPITALIZATION 44,392,878 44,184,400 43,082,138 TOTAL LIABILITIES AND CAPITALIZATION $64,430,766 $58,884,480 $75,818,965 Please refer to the notes as filed on Form 10-Q that are an integral part of these condensed financial statements.
Energy West, Incorporated
CONTACT: Energy West, Incorporated, 1-800-570-5688
Web Site: http://www.energywest.com/
