MENTOR, Ohio, Nov. 13, 2012 /PRNewswire/ -- Gas Natural Inc. (NYSE MKT: EGAS) ("Gas Natural" or the "Company"), a holding company operating natural gas utilities serving approximately 70,000 customers in seven states, reported financial results for the third quarter ended September 30, 2012.
Consolidated net loss for the third quarter of 2012 was $671,000, or ($0.08) per diluted share, compared with net income of $130,000, or $0.02 per diluted share, for the third quarter of 2011. The
year-over-year change reflects increased acquisition costs and a $779,000 decrease in the Company's Propane Operations segment resulting in a net loss of $217,000. The 2011 period included a pre-tax gain of $1.1 million on the bargain purchase of the assets of Independence Oil & LP Gas, Inc.
Richard M. Osborne, Gas Natural's chairman and chief executive officer, commented, "We are actively expanding our systems in our high-growth Maine and North Carolina markets, and as a result, we captured more natural gas customers. Importantly, throughout 2012, we have maintained our growth strategy through natural gas utility growth and acquisitions, and continued to make prudent investments, such as our recently formed liquefied natural gas line of business."
For the nine months ended September 30, 2012, consolidated net income decreased to $1.9 million from $4.8 million in the same period in 2011, which reflects a $1.4 million decrease in net income from the Natural Gas Operations segment primarily due to warmer weather in all of the Company's service areas (see the Heating Degree Days chart in the attached table) and a $1.0 million decrease in net income from the Company's Propane Operations segment primarily due to the benefit that was recorded in the prior-year period for the above mentioned bargain purchase gain. Acquisition expenses for the year-to-date-period were $826,000, up from $87,000 in the comparable period of 2011, while interest expense also increased to $1.9 million from $1.5 million due to borrowings on the Company's credit facilities. On a per diluted share basis, net income was $0.23 and $0.58 for the first nine months of 2012 and 2011, respectively.
About Gas Natural Inc.
Gas Natural Inc., a holding company, distributes and sells natural gas to end-use residential, commercial, and industrial customers. It distributes approximately 32 billion cubic feet of natural gas to approximately 70,000 customers through regulated utilities operating in Montana, Wyoming, Ohio, Pennsylvania, Maine, North Carolina and Kentucky. The Company's other operations include interstate pipeline, natural gas production, propane and natural gas marketing. The Company's Montana public utility was originally incorporated in 1909. Its strategy for growth is to expand throughput in the Maine and North Carolina markets while looking for acquisitions that are either adjacent to its existing utilities or in under saturated markets.
SOURCE Gas Natural Inc
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