Energy West, Incorporated Announces Earnings for the Transitional Year and Quarter Ended December 31, 2008 and an Increase to the Monthly Dividend to $0.045 per Share
In
The Company’s Board of Directors has approved increasing the monthly dividend to
“In these tough economic times we are proud to announce a 12.5% dividend increase,” said
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
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:
The company’s toll-free number is (800) 570-5688. The company’s web site is www.ewst.com. The company’s address is 1 First Avenue South,
ENERGY WEST, INCORPORATED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS DECEMBER 31, JUNE 30,
(audited) (audited)
ASSETS 2008 2008 2007
Current Assets:
Cash $1,065,529 $796,302 $7,010,020
Marketable
securities 3,376,875 910,778 -
Accounts
receivable less
$207,942,
$136,399
and $64,054
respectively,
allowance for
bad debt 7,430,694 5,108,796 3,532,083
Unbilled gas 4,839,138 1,252,638 649,939
Derivative
assets - 145,428 57,847
Natural gas and
propane
inventories 9,891,802 5,505,337 5,474,309
Materials and
supplies 1,175,596 955,467 377,296
Prepayment and
other 422,514 193,581 142,964
Income tax
receivable 1,014,806 417,164 162,432
Recoverable cost
of gas
purchases 2,041,280 1,054,875 1,369,584
Deferred tax
asset 225,953 - 53,370
Total current
assets 31,484,187 16,340,366 18,829,844
Property, Plant
and Equipment,
Net 34,904,442 31,051,419 29,160,084
Deferred Charges 2,558,156 2,761,656 3,031,425
Deferred Tax
Assets - Long
term 5,693,310 6,825,575 -
Other
Investments 1,081,423 1,118,264 -
Other Assets 97,447 279,810 560,463
TOTAL ASSETS $75,818,965 $58,377,090 $51,581,816
LIABILITIES AND
CAPITALIZATION
Current Liabilities:
Bank overdraft $773,199 $532,901 $-
Accounts payable 5,783,927 7,439,748 4,543,525
Line of credit 17,551,276 - -
Derivative
liabilities - 146,206 58,018
Accrued income
taxes 35,236 - -
Deferred income
taxes - 18,039 -
Overrecovered
gas purchases 1,022,853 522,347 1,061,685
Accrued and
other current
liabilities 4,947,448 3,302,712 3,092,726
Total current
liabilities 30,113,939 11,961,953 8,755,954
Other Obligations:
Deferred income
taxes - - 4,585,170
Deferred
investment tax
credits 239,565 250,096 271,158
Other long-term
liabilities 2,383,323 2,516,262 2,673,824
Total other
obligations 2,622,888 2,766,358 7,530,152
Long-Term Debt 13,000,000 13,000,000 13,000,000
Commitments and
Contingencies
(notes 12 and
16)
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,
4,296,603, $4,347,769
and 4,288,657 shares
outstanding at
December 31, 2008
and June 30,
2008 and 2007,
respectively 652,503 652,165 643,299
Treasury stock (8,012) - -
Capital in
excess of par
value 5,926,028 6,280,649 5,867,726
Accumulated
other
comprehensive
income (loss) (319,147) - -
Retained
earnings 23,830,766 23,715,965 15,784,685
Total
stockholders'
equity 30,082,138 30,648,779 22,295,710
TOTAL CAPITALIZATION 43,082,138 43,648,779 35,295,710
TOTAL LIABILITIES AND
CAPITALIZATION $75,818,965 $58,377,090 $51,581,816
Please refer to the notes as filed on Form 10-K/T that are an integral
part of these consolidated financial statements.
ENERGY WEST, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SIX MONTHS
INCOME ENDED
DECEMBER 31,
(audited) (unaudited)
2008 2007
REVENUES:
Natural gas operations $28,840,123 $21,118,295
Gas and electric-wholesale 9,691,560 7,008,122
Pipeline operations 226,157 186,855
Total revenues 38,757,840 28,313,272
COST OF SALES:
Gas purchased 19,459,908 13,972,427
Gas and electric-wholesale 7,770,347 5,922,616
Total cost of sales 27,230,255 19,895,043
GROSS MARGIN 11,527,585 8,418,229
Distribution, general, and
administrative 5,717,406 4,601,908
Maintenance 319,798 325,915
Depreciation and amortization 1,023,381 889,371
Taxes other than income 1,284,557 863,613
Total expenses 8,345,142 6,680,807
OPERATING INCOME 3,182,443 1,737,422
OTHER INCOME (EXPENSE) (420,349) 190,093
INTEREST (EXPENSE) (677,056) (529,711)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAX EXPENSE 2,085,038 1,397,804
INCOME TAX (EXPENSE) (926,457) (273,828)
INCOME FROM CONTINUING OPERATIONS 1,158,581 1,123,976
DISCONTINUED OPERATIONS:
Gain from disposal of operations - -
Income from discontinued
operations - -
Income tax (expense) - -
INCOME FROM DISCONTINUED OPERATIONS - -
INCOME BEFORE EXTRAORDINARY ITEM 1,158,581 1,123,976
EXTRAORDINARY GAIN - 6,819,182
NET INCOME $1,158,581 $7,943,158
BASIC INCOME PER COMMON SHARE:
Income from continuing
operations $0.27 $0.26
Income from discontinued
operations - -
Income from extraordinary gain - 1.59
$0.27 $1.85
DILUTED INCOME PER COMMON SHARE:
Income from continuing operations $0.27 $0.26
Income from discontinued operations - -
Income from extraordinary gain - 1.58
$0.27 $1.85
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 4,330,200 4,287,437
Diluted 4,331,726 4,304,559
YEARS ENDED
JUNE 30,
(audited)
2008 2007 2006
REVENUES:
Natural gas operations $59,338,996 $46,439,506 $55,452,395
Gas and
electric-wholesale 17,124,081 12,545,359 18,831,929
Pipeline
operations 370,171 388,175 411,237
Total revenues 76,833,248 59,373,040 74,695,561
COST OF SALES:
Gas purchased 41,337,397 33,541,993 43,160,830
Gas and
electric-wholesale 14,833,353 10,264,633 17,237,396
Total cost of
sales 56,170,750 43,806,626 60,398,226
GROSS MARGIN 20,662,498 15,566,414 14,297,335
Distribution,
general, and
administrative 10,661,878 6,197,529 6,389,130
Maintenance 650,553 566,683 504,671
Depreciation and
amortization 1,865,294 1,692,486 1,671,647
Taxes other than
income 2,080,144 1,696,936 1,453,375
Total expenses 15,257,869 10,153,634 10,018,823
OPERATING INCOME 5,404,629 5,412,780 4,278,512
OTHER INCOME (EXPENSE) 315,779 241,519 390,677
INTEREST (EXPENSE) (1,076,345) (2,124,155) (1,648,897)
INCOME FROM CONTINUING
OPERATIONS
BEFORE INCOME
TAX EXPENSE 4,644,063 3,530,144 3,020,292
INCOME TAX (EXPENSE) (1,332,688) (1,272,664) (1,109,043)
INCOME FROM CONTINUING
OPERATIONS 3,311,375 2,257,480 1,911,249
DISCONTINUED
OPERATIONS:
Gain from
disposal of
operations - 5,479,166 -
Income from
discontinued
operations - 975,484 671,084
Income tax
(expense) - (2,499,875) (265,663)
INCOME FROM DISCONTINUED
OPERATIONS - 3,954,775 405,421
INCOME BEFORE
EXTRAORDINARY ITEM 3,311,375 6,212,255 2,316,670
EXTRAORDINARY GAIN 6,819,182 - -
NET INCOME $10,130,557 $6,212,255 $2,316,670
BASIC INCOME PER
COMMON SHARE:
Income from
continuing
operations $0.77 $0.51 $0.44
Income from
discontinued
operations - 0.89 0.09
Income from
extraordinary
gain 1.58 - -
$2.35 $1.40 $0.53
DILUTED INCOME PER COMMON
SHARE:
Income from
continuing
operations $0.77 $0.51 $0.44
Income from
discontinued
operations - 0.88 0.09
Income from
extraordinary
gain 1.58 - -
$2.35 $1.39 $0.52
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 4,314,748 4,437,807 4,386,768
Diluted 4,316,244 4,484,073 4,422,069
Please refer to the notes as filed on Form 10-K/T that are an integral
part of these consolidated financial statements.
SOURCE Energy West, Incorporated