Gas Natural Inc. – a holding company operating local natural gas utilities serving approximately 68 000 customers in six states – reported financial results for the second quarter of 2015 ended 30 June 2015. As previously announced, the Company completed the sale of its Wyoming operations on 1 July 2015 for US$17 million and the divested unit is reported as discontinued operations.
Continuing operation losses
The company reported a loss from continuing operations of US$1.7 million, or US$0.16 loss per share, for the second quarter, compared with a loss of US$1.5 million, or US$0.14 loss per share, for the first quarter of 2014. On a year-to-date basis, income from continuing operations for the 2015 first half was US$2.7 million, or US$0.26 per share, compared with US$3.0 million, or US$0.29 per share, for last year's first half.
Continuing operation adjusted losses
Adjusted loss from continuing operations, a non-GAAP number, was US$0.6 million, or US$0.06 per share, for the second quarter of 2015 compared with US$0.6 million loss, or US$0.06 loss per share, for the second quarter of 2014. Adjusted loss from continuing operations for the 2015 second quarter excludes US$1.1 million non-recurring legal and professional fees, regulatory and other expenses, and a goodwill and asset impairment charge. In the 2014 second quarter, adjusted loss from continuing operations excludes US$0.8 million related to an uncollectible accounts expense resulting from a customer's bankruptcy proceeding as well as non-recurring legal and professional fees.
Continuing operation adjusted income
On a year-to-date basis, adjusted income from continuing operations, a non-GAAP number, was US$4.2 million, or US$0.40 per share, in the 2015 period compared with US$4.3 million, or US$0.41 per share, for the prior-year period. See attached table for a reconciliation of GAAP income from continuing operations to non-GAAP adjusted income from continuing operations.
Comments from Gas Natural
Gregory J. Osborne, Gas Natural's President and Chief Executive Officer, commented: "We continue to advance our strategy to expand in underserved markets and rationalise assets for redeployment to areas where we can focus on growth, quality customer service and solid returns on investments. Although full service utility throughput was down 19% primarily due to warmer weather in North Carolina and Montana, we still achieved customer growth in Ohio, North Carolina and Maine, while also realising the early benefits of the September 2014 activation of Phase 1 of the Loring pipeline. It is noteworthy that we are just beginning to tap the potential of our Maine and Ohio pipeline assets. We also brought the sale of our Wyoming operations to a very successful conclusion on 1 July, providing us new capital to make investments in markets with the highest and most profitable growth potential."
Edited from press release by Stephanie Roker