CORNING, N.Y. , Dec. 17, 2023 (GLOBE NEWSWIRE) — Corning Natural Gas Holding Corporation (OTCQX: CNIG) announced a consolidated net loss of ($1.32MM or $0.43) per share for the quarter ended September 30, 2023. This compares to a consolidated net loss of ($576K or $0.19) per share for the quarter ended September 30, 2020. The company reported net income for the year ended September 30, 2023 of $1.28MM or $0.42 per share, compared to $2.96MM or $0.97 per share for the year ended September 30, 2020. CFO Charles Lenns commented, “While revenue and gross margins increased this year, the company saw earnings decline, for both the three-month period and the twelve-month period ended September 30, 2023, principally due to transaction costs related to our pending merger, a disappointing conclusion to our 2020 New York rate case, and higher interest and depreciation expenses.
The financial results for the quarter and year-ended September 30, 2023, and for the comparable quarter and year-ended September 30, 2020, were impacted by several non-recurring, but material events. As a result of our rate case that concluded in May of 2023, the company wrote-off a regulatory asset for leak repairs of $175,000, as well as an accrual of interest income of $231,000, the recovery of which were denied. For the year ended September 30, 2023, the company recorded cancellation of debt income from the forgiveness of Paycheck Protection Program loans, net of a reserve for amounts refundable to Corning customers of $600,000. 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. Quarterly earnings are also affected by the highly seasonal nature of the business and weather conditions such as temperature variations.
Corning Natural Gas Holding Corporation’s Board of Directors declared a common stock dividend for holders of record on December 31, 2023 of $0.1525/share, payable on January 14, 2023, which is equal to an annualized rate of $0.61/share. The board also approved its 6% series A and C preferred stock, 4.8% series B convertible preferred stock, and 1.5% series D preferred stock dividends for shareholders of record on December 31, 2023, payable on January 14, 2023.
On January 12, 2023, the company entered into a merger agreement with Argo Infrastructure Partners. Consummation of the merger is subject to New York and Pennsylvania regulatory approval. The company expects this transaction to close in late spring of 2023.
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.
