Corning Natural Gas Holding Corporation Quarterly Earnings Statement

Rhea-AI Summary

Corning Natural Gas Holding Corporation (OTCQX: CNIG) reported a consolidated net income of $273,000 or $0.07 per share for the quarter ended June 30, 2021, down from $558,000 or $0.16 per share year-over-year. For the six months, net income totaled $2.77 million or $0.84 per share, declining from $3.72 million or $1.16 per share. The decline was attributed to costs related to a pending merger along with increased interest and depreciation expenses. The company also recognized $1.1 million in Paycheck Protection Program loan forgiveness.

Positive

• Recognized $1.1 million of Paycheck Protection Program loan forgiveness.
• Concluded rate case that may lead to operational improvements.

Negative

• Net income down 51% year-over-year for Q2.
• Net income down 26% year-over-year for the first half of the year.
• Incurred higher transaction, interest, and depreciation expenses.

CORNING, N.Y., Aug. 11, 2021 (GLOBE NEWSWIRE) -- Corning Natural Gas Holding Corporation (OTCQX: CNIG) announced consolidated net income of $273 thousand or $0.07 per share for the quarter ended June 30, 2021. This compares to consolidated net income of $558 thousand or $0.16 per share for the quarter ended June 30, 2020. The company reported net income for the six months ended June 30, 2021 of $2.77 million or $0.84 per share, compared to $3.72 million, or $1.16 per share for the six months ended June 30, 2020. CFO Chuck Lenns commented, “The Company saw earnings decline, for both the three-month period and the six-month period ended June 30, 2021, principally due to transaction costs related to our pending merger, and higher interest expense and depreciation expense. The financial results for the quarter and year-to-date ended June 30, 2021, and for the comparable quarter and year-to-date ended June 30, 2020, were impacted by several non-recurring, but material events." CNGHC recognized as non-operating income $1.1 million of Paycheck Protection Program loan forgiveness, offset by a regulatory reserve in the amount of $490,000. As a result of our rate case that concluded in May of 2021, the company recorded as an operating expense a regulatory asset for leak repairs ($175,000), and as interest expense an accrual of interest income ($231,000), the recovery of which were denied in our rate case. In the third quarter of fiscal 2020, we recognized as a reduction of income tax expense a non-recurring AMT tax credit refund in the amount of $272,000.

Net income for the three and six months ended June 30, 2021 are not necessarily indicative of expected results for the fiscal year ending September 30, 2021. Quarterly earnings are affected by the highly seasonal nature of the business and weather conditions such as temperature variations.

Corning Natural Gas Holding Corporation provides natural gas and electric service to customers in New York and Pennsylvania through its operating subsidiaries Corning Natural Gas, Pike County Light & Power, and Leatherstocking Gas Company.

From time-to-time, Corning Natural Gas Holding Corporation may produce forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, Corning Natural Gas Holding Corporation notes that a variety of factors could cause actual results and experiences to differ materially from anticipated results or other expectations expressed in any forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements.

Contact: Julie Lewis / 607-936-3755

FAQ

What were Corning Natural Gas Holding Corporation's earnings for Q2 2021?

Corning Natural Gas Holding Corporation reported a net income of $273,000 or $0.07 per share for Q2 2021.

How did Corning Natural Gas Holding Corporation perform in the first half of 2021?

For the first half of 2021, Corning Natural Gas reported a net income of $2.77 million or $0.84 per share.

What factors contributed to the decline in earnings for Corning Natural Gas in 2021?

The decline was primarily due to transaction costs related to a pending merger, along with increased interest and depreciation expenses.