CLEVELAND, May 11, 2015 /PRNewswire/ -- Gas Natural Inc. (NYSE MKT: EGAS) ("Gas Natural" or the "Company"), a holding company operating local natural gas utilities serving approximately 68,000 customers in six states, reported financial results for the first quarter of 2015. As previously announced, the Company has agreed to sell its Wyoming operations which serve 6,700 customers and are reported as discontinued operations.
Income from continuing operations was $4.4 million, or $0.42 per share, for the first quarter, compared with $4.5 million, or $0.43 per share, for the first quarter of 2014. Adjusted income from continuing operations, a non-GAAP number, was $4.8 million, or $0.46 per share, for the first quarter of 2015 compared with $5.0 million, or $0.47 per share, for the first quarter of 2014. The adjustments of $0.4 million after taxes in both the 2015 and 2014 periods reflect the exclusion of non-recurring professional and legal fees related to increased regulatory and legal proceedings. See attached table for a reconciliation of GAAP income from continuing operations to non-GAAP adjusted income from continuing operations.
Gregory J. Osborne, Gas Natural's President and Chief Executive Officer, commented, "We continue to make progress on our strategic plan, resulting in customer growth in the first quarter of 2015 which drove an increase in gross margin. While our revenue was affected by lower gas prices and lower sales volumes due to warmer weather in certain markets, we are excited to continue to transform the organization into a higher quality natural gas utility which is focused on growing shareholder value."
Natural Gas Operations Segment Review
The Natural Gas Operations segment reported $51.3 million in revenue for the first quarter, a decrease of $5.5 million, or 10%. This change was primarily due to a $4.0 million decrease in revenue from our Ohio market due to lower prices paid for natural gas passed on to customers. Revenue from our Montana market decreased $1.9 million due to a volume decrease driven by significantly warmer weather compared with the prior-year period. These decreases were partially offset by a $0.4 million increase in revenue from the Company's Maine and North Carolina markets, which was the result of continued customer growth as well as colder weather in Maine.
Natural Gas Operations Income Statement | ||||
Three Months Ended March 31, | ||||
($ in thousands) | 2015 | 2014 | ||
Natural Gas Operations | ||||
Operating revenues | $51,279 | $56,807 | ||
Gas Purchased | 33,861 | 39,846 | ||
Gross Margin | 17,418 | 16,961 | ||
Operating expenses | 8,778 | 7,820 | ||
Operating income | 8,640 | 9,141 | ||
Other income | 206 | 107 | ||
Income before interest and taxes | 8,846 | 9,248 | ||
Interest expense | (671) | (665) | ||
Income before income taxes | 8,175 | 8,583 | ||
Income tax expense | (3,062) | (3,196) | ||
Net Income | $ 5,113 | $ 5,387 |
Gross margin for the first quarter of 2015 increased to $17.4 million compared with $17.0 million in the prior-year quarter. The increase was driven by continued customer growth in Maine, North Carolina and Ohio markets coupled with colder weather in Maine, which contributed to a $0.7 million improvement to gross margin. This was partially offset by a $0.3 million decrease in gross margin driven by lower sales volume in Montana caused by especially warm weather.
Operating expenses increased by $1.0 million, or 12%, for the quarter. This included higher expenses of $0.6 million due to a decrease in capitalized labor and increases in insurance and outside professional fees. Depreciation and amortization increased by $0.3 million due to the amortization of a regulatory asset as well as higher depreciable assets.
Other Operating Segments
Net income for the Marketing and Production Operations segment was breakeven in the first quarter of both 2015 and 2014. Revenue decreased by $2.2 million to $2.5 million for the first quarter of 2015, compared with the same period in 2014 and gross margin decreased by $0.3 million to $0.1 million. The decrease in revenue and gross margin was primarily due to the loss of the Company's liquid natural gas customer to pipeline competition along with lower sales volume and pricing.
Net loss for the Corporate and Other Operations segment improved to $0.3 million compared with net loss of $0.4 million in the prior-year quarter. The improvement was primarily due to a $0.3 million reduction in administrative costs.
Adjusted EBITDA
Adjusted earnings from continuing operations before interest, taxes, depreciation, amortization, accretion, and non-recurring expenses ("Adjusted EBITDA"), a non-GAAP financial measure, was $10.5 million in both the first quarter of 2015 and 2014. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance. See the attached tables for important disclosures regarding the Company's use of Adjusted EBITDA, as well as a reconciliation of GAAP income from continuing operations to Adjusted EBITDA.
Balance Sheet and Cash Management
Cash and cash equivalents as of March 31, 2015 were $2.7 million, up $1.1 million from December 31, 2014.
Cash provided by operating activities of continuing operations was $8.0 million in the first quarter of 2015, compared with $5.6 million in the prior-year period. The increase was primarily the result of improved gas procurement policies, increased utilization of storage capabilities and effective hedging strategies which stabilized the pricing of gas.
Capital expenditures for the first quarter of 2015 were $2.5 million compared with $5.7 million in the prior-year period. Capital expenditures in 2015 are expected to be approximately $8 million to $9 million, and are focused on the growth of the Natural Gas Operations segment as well as ongoing construction activities in all of the Company's utility service areas to support expansion, maintenance and enhancement of its gas pipeline systems.
Mr. Osborne concluded, "In the first quarter of 2015, we continued to build the foundation that we began building in 2014. Our vision is to be a premier natural gas company recognized as the benchmark in the natural gas utility industry by customers, peers and investors. We are executing our strategy to achieve that vision."
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 26 billion cubic feet of natural gas to approximately 68,000 customers through regulated utilities operating in Montana, Ohio, Pennsylvania, Maine, North Carolina and Kentucky. The Company's other operations include interstate pipeline, natural gas production, 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.
Gas Natural Inc. regularly posts information on its website at www.egas.net.
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, Gas Natural Inc. 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 ability to successfully integrate the operations of the companies it has recently acquired and consummate additional acquisitions, 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, the Company's ability to satisfy its debt obligations, including compliance with financial covenants, 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. Gas Natural Inc. expressly undertakes no obligation to update or revise any forward-looking statement contained herein to reflect any change in Gas Natural Inc.'s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
For more information, contact: | ||
Gas Natural Inc. | Investor Relations: | |
James E. Sprague, Chief Financial Officer | Deborah K. Pawlowski or Karen L. Howard, Kei Advisors LLC | |
Phone: (440) 974-3770 | Phone: (716) 843-3908 / (716) 843-3942 | |
Email: jsprague@egas.net |
FINANCIAL TABLES FOLLOW.
Gas Natural Inc. and Subsidiaries | ||||
Condensed Consolidated Statement of Operations | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2015 | 2014 | |||
REVENUES | ||||
Natural gas operations | $51,279,730 | $ 56,807,363 | ||
Marketing and production | 2,453,231 | 4,689,356 | ||
Total revenues | 53,732,961 | 61,496,719 | ||
COST OF SALES | ||||
Natural gas purchased | 33,861,353 | 39,846,604 | ||
Marketing and production | 2,306,889 | 4,240,965 | ||
Total cost of sales | 36,168,242 | 44,087,569 | ||
GROSS MARGIN | 17,564,719 | 17,409,150 | ||
OPERATING EXPENSES | ||||
Distribution, general, and administrative | 6,617,603 | 6,480,408 | ||
Maintenance | 327,480 | 305,080 | ||
Depreciation and amortization | 1,878,721 | 1,669,322 | ||
Accretion | 11,180 | 14,228 | ||
Provision for doubtful accounts | 51,742 | 8,279 | ||
Taxes other than income | 1,003,163 | 921,186 | ||
Total operating expenses | 9,889,889 | 9,398,503 | ||
OPERATING INCOME | 7,674,830 | 8,010,647 | ||
Other income, net | 277,622 | 94,475 | ||
Interest expense | (869,022) | (809,099) | ||
Income before income taxes | 7,083,430 | 7,296,023 | ||
Income tax expense | (2,666,673) | (2,759,478) | ||
INCOME FROM CONTINUING OPERATIONS | 4,416,757 | 4,536,545 | ||
Discontinued operations, net of tax | 436,916 | 481,946 | ||
NET INCOME | $ 4,853,673 | $ 5,018,491 | ||
Basic weighted shares outstanding | 10,487,511 | 10,451,678 | ||
Dilutive effect of stock options | 854 | 572 | ||
Diluted weighted shares outstanding | 10,488,365 | 10,452,250 | ||
BASIC AND DILUTED EARNINGS PER SHARE: | ||||
Continuing operations | $ 0.42 | $ 0.43 | ||
Discontinued operations | 0.04 | 0.05 | ||
Net income per share | $ 0.46 | $ 0.48 | ||
Gas Natural Inc. and Subsidiaries | |||
Condensed Consolidated Balance Sheets | |||
March 31, | December 31, | ||
2015 | 2014 | ||
(unaudited) | |||
ASSETS | |||
CURRENT ASSETS | |||
Cash and cash equivalents | $ 2,721,167 | $ 1,585,926 | |
Accounts receivable | |||
Trade, less allowance for doubtful accounts of$469,374 and $370,909, respectively | 15,446,459 | 12,095,535 | |
Related parties | 253,057 | 250,101 | |
Unbilled gas | 5,684,249 | 7,630,852 | |
Note receivable, current portion | 2,086 | 2,070 | |
Inventory | |||
Natural gas | 499,957 | 5,301,895 | |
Materials and supplies | 2,383,545 | 2,300,990 | |
Prepaid income taxes | 431,681 | 431,681 | |
Regulatory assets, current | 6,235,884 | 4,097,822 | |
Deferred tax asset | 608,235 | 635,195 | |
Prepayments and other | 1,079,758 | 986,941 | |
Assets held for sale | 801,711 | 802,436 | |
Discontinued operations | 10,631,729 | 11,653,934 | |
Total current assets | 46,779,518 | 47,775,378 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Property, plant and equipment | 190,196,318 | 187,566,638 | |
Less accumulated depreciation, depletion and amortization | (47,169,527) | (45,555,553) | |
PROPERTY, PLANT, & EQUIPMENT, NET | 143,026,791 | 142,011,085 | |
OTHER ASSETS | |||
Notes receivable, less current portion | 89,752 | 90,345 | |
Regulatory assets, non-current | 1,922,074 | 2,055,404 | |
Debt issuance costs, net of amortization | 976,244 | 1,079,447 | |
Goodwill | 16,155,672 | 16,155,672 | |
Customer relationships, net of amortization | 2,851,792 | 2,927,500 | |
Restricted cash | 1,897,683 | 1,897,677 | |
Other assets | 15,652 | 11,404 | |
Total other assets | 23,908,869 | 24,217,449 | |
TOTAL ASSETS | $ 213,715,178 | $ 214,003,912 |
Gas Natural Inc. and Subsidiaries | |||
Condensed Consolidated Balance Sheets (Cont'd) | |||
March 31, 2015 | December 31, 2014 | ||
(unaudited) | |||
LIABILITIES AND CAPITALIZATION | |||
CURRENT LIABILITIES | |||
Checks in excess of amounts on deposit | $ 264,334 | $ 194,524 | |
Line of credit | 24,740,799 | 28,760,799 | |
Accounts payable | |||
Trade | 13,063,718 | 14,115,367 | |
Related parties | 86,798 | 170,319 | |
Notes payable, current portion | 539,246 | 542,201 | |
Contingent consideration, current | 671,638 | 671,638 | |
Derivative instruments | 1,766,472 | 3,023,271 | |
Accrued liabilities | 4,454,348 | 4,860,663 | |
Accrued liabilities - related parties | 210,736 | 111,133 | |
Customer deposits, current | 639,347 | 634,090 | |
Obligation under capital lease, current | 188,224 | 188,224 | |
Regulatory liability, current | 317,211 | 925,175 | |
Build-to-suit liability | 5,946,089 | 5,597,287 | |
Other current liabilities | 984,950 | 940,643 | |
Liabilities held for sale | 85,515 | 61,416 | |
Discontinued operations | 717,662 | 544,432 | |
Total current liabilities | 54,677,087 | 61,341,182 | |
LONG-TERM LIABILITIES | |||
Deferred investment tax credits | 107,927 | 113,193 | |
Deferred tax liability | 13,434,344 | 10,538,394 | |
Asset retirement obligation | 1,207,698 | 1,196,518 | |
Customer advances for construction | 998,003 | 993,681 | |
Regulatory liability, non-current | 1,129,758 | 1,089,850 | |
Customer deposits | 949,540 | 949,540 | |
Obligation under capital lease, less current | 1,674,714 | 1,674,714 | |
Contingent consideration, less current | 75,362 | 75,362 | |
Total long-term liabilities | 19,577,346 | 16,631,252 | |
NOTES PAYABLE, less current portion | 39,588,284 | 39,720,860 | |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS' EQUITY | |||
Preferred stock; $0.15 par value; 1,500,000 shares authorized, no shares issued or outstanding | - | - | |
Common stock; $0.15 par value; | 1,573,127 | 1,573,127 | |
Capital in excess of par value | 63,951,000 | 63,826,341 | |
Retained earnings | 34,348,334 | 30,911,150 | |
Total stockholders' equity | 99,872,461 | 96,310,618 | |
TOTAL CAPITALIZATION | 139,460,745 | 136,031,478 | |
TOTAL LIABILITIES AND CAPITALIZATION | $213,715,178 | $214,003,912 |
Gas Natural Inc. and Subsidiaries | ||||||
Condensed Consolidated Statements of Cash Flows | ||||||
(Unaudited) | ||||||
Three months ended | ||||||
2015 | 2014 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ 4,853,673 | $ 5,018,491 | ||||
Less income from discontinued operations | 436,916 | 481,946 | ||||
Income from continuing operations | 4,416,757 | 4,536,545 | ||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||||||
Depreciation and amortization | 1,878,721 | 1,669,322 | ||||
Accretion | 11,180 | 14,228 | ||||
Amortization of debt issuance costs | 123,066 | 103,145 | ||||
Provision for doubtful accounts | 51,742 | 8,279 | ||||
Stock based compensation | 124,659 | 308,330 | ||||
Loss(gain) on sale of assets | (37,960) | (18,556) | ||||
Loss from unconsolidated affiliate | - | 973 | ||||
Change in fair value of derivative financial instruments | (122,286) | - | ||||
Investment tax credit | (5,266) | (5,265) | ||||
Deferred income taxes | 2,922,910 | 2,989,830 | ||||
Changes in assets and liabilities | ||||||
Accounts receivable, including related parties | (3,445,699) | (4,394,864) | ||||
Unbilled gas | 1,939,842 | 427,452 | ||||
Natural gas inventory | 4,801,938 | 4,486,484 | ||||
Accounts payable, including related parties | (348,887) | 4,062,275 | ||||
Regulatory assets & liabilities | (3,730,189) | (7,081,394) | ||||
Prepayments and other | (93,438) | (650,436) | ||||
Other assets | (102,919) | 191,134 | ||||
Other liabilities | (352,371) | (1,080,589) | ||||
Net cash provided by operating activities of continuing operations | 8,031,800 | 5,566,893 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Capital expenditures | (2,493,176) | (5,686,242) | ||||
Proceeds from sale of fixed assets | 37,960 | 18,556 | ||||
Proceeds from note receivable | 577 | 2,056 | ||||
Restricted cash – capital expenditures fund | - | (59) | ||||
Customer advances for construction | 4,639 | 132 | ||||
Contributions in aid of construction | 80,308 | 211,004 | ||||
Net cash used in investing activities of continuing operations | (2,369,692) | (5,454,553) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from lines of credit | 8,600,000 | 7,000,000 | ||||
Repayments of lines of credit | (12,620,000) | (7,900,000) | ||||
Repayments of notes payable | (135,531) | (127,190) | ||||
Repayments of build-to-suit | (567,330) | - | ||||
Debt issuance costs | (19,863) | - | ||||
Restricted cash – debt service fund | (6) | (533) | ||||
Dividends paid | (1,416,489) | (1,410,978) | ||||
Net cash provided by (used in) financing activities of continuing operations | (6,159,219) | (2,438,701) | ||||
DISCONTINUED OPERATIONS | ||||||
Operating cash flows | 1,812,715 | 634,602 | ||||
Investing cash flows | (180,363) | (70,505) | ||||
Net cash provided by discontinued operations | 1,632,352 | 564,097 | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,135,241 | (1,762,264) | ||||
Cash and cash equivalents, beginning of period | 1,585,926 | 12,741,197 | ||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 2,721,167 | $10,978,933 |
Gas Natural Inc. and Subsidiaries | ||||||||
Three Months Ended March 31, 2015 | ||||||||
Natural Gas | Marketing & | Corporate & | ||||||
Operations | Production | Other | Consolidated | |||||
OPERATING REVENUES | $51,366,887 | $ 4,626,471 | $ - | $ 55,993,358 | ||||
Intersegment elimination | (87,157) | (2,173,240) | - | (2,260,397) | ||||
Total operating revenue | 51,279,730 | 2,453,231 | - | 53,732,961 | ||||
COST OF SALES | 33,948,510 | 4,480,129 | - | 38,428,639 | ||||
Intersegment elimination | (87,157) | (2,173,240) | - | (2,260,397) | ||||
Total cost of sales | 33,861,353 | 2,306,889 | - | 36,168,242 | ||||
GROSS MARGIN | $17,418,377 | $ 146,342 | $ - | $ 17,564,719 | ||||
OPERATING EXPENSES | 8,813,923 | 232,756 | 878,895 | 9,925,574 | ||||
Intersegment elimination | (35,685) | - | - | (35,685) | ||||
Total operating expenses | 8,778,238 | 232,756 | 878,895 | 9,889,889 | ||||
OPERATING INCOME (LOSS) | $ 8,640,139 | $ (86,414) | $ (878,895) | $ 7,674,830 | ||||
DISCONTINUED OPERATIONS | $ - | $ - | $ 436,916 | $ 436,916 | ||||
NET INCOME (LOSS) | $ 5,113,360 | $ 3,641 | $ (263,328) | $ 4,853,673 |
Three Months Ended March 31, 2014 | ||||||||
Natural Gas | Marketing & | Corporate & | ||||||
Operations | Production | Other | Consolidated | |||||
OPERATING REVENUES | $56,893,907 | $ 7,929,773 | $ - | $ 64,823,680 | ||||
Intersegment elimination | (86,544) | (3,240,417) | - | (3,326,961) | ||||
Total operating revenue | 56,807,363 | 4,689,356 | - | 61,496,719 | ||||
COST OF SALES | 39,933,148 | 7,481,382 | - | 47,414,530 | ||||
Intersegment elimination | (86,544) | (3,240,417) | - | (3,326,961) | ||||
Total cost of sales | 39,846,604 | 4,240,965 | - | 44,087,569 | ||||
GROSS MARGIN | $16,960,759 | $ 448,391 | $ - | $ 17,409,150 | ||||
OPERATING EXPENSES | 7,819,884 | 382,458 | 1,196,161 | 9,398,503 | ||||
Intersegment elimination | - | - | - | - | ||||
Total operating expenses | 7,819,884 | 382,458 | 1,196,161 | 9,398,503 | ||||
OPERATING INCOME (LOSS) | $ 9,140,875 | $ 65,933 | $(1,196,161) | $ 8,010,647 | ||||
DISCONTINUED OPERATIONS | $ - | $ - | $ 481,946 | $ 481,946 | ||||
NET INCOME (LOSS) | $ 5,387,303 | $ 20,801 | $ (389,613) | $ 5,018,491 |
Gas Natural Inc. and Subsidiaries | ||||
Utility Throughput | ||||
Three Months Ended March 31, | ||||
(in million cubic feet (MMcf)) | 2015 | 2014 | ||
Full service distribution: | ||||
Energy West Montana (MT) | 1,326 | 1,594 | ||
Frontier Natural Gas (NC) | 470 | 430 | ||
Bangor Gas (ME) | 841 | 779 | ||
Ohio Companies (OH) | 1,873 | 1,835 | ||
Public Gas (PGC) | 76 | 71 | ||
Total full service distribution | 4,586 | 4,709 | ||
Transportation | 3,306 | 3,346 | ||
Bucksport | 128 | 957 | ||
Total volumes | 8,020 | 9,012 |
Heating Degree Days | ||||||||||
Three Months Ended | Percent Colder (Warmer) | |||||||||
March 31, | 2015 Compared to | |||||||||
Normal | 2015 | 2014 | Normal | 2014 | ||||||
Great Falls, MT | 3,211 | 2,778 | 3,590 | (13.48%) | (22.62%) | |||||
Bangor, ME | 3,576 | 4,453 | 4,039 | 24.52% | 10.25% | |||||
Elkin, NC | 2,708 | 2,282 | 2,434 | (15.73%) | (6.24%) | |||||
Lancaster, OH | 2,853 | 3,320 | 3,378 | 16.37% | (1.72%) | |||||
Jackson, KY | 2,277 | 2,631 | 2,696 | 15.55% | (2.41%) | |||||
Weighted Average | 3,088 | 3,063 | 3,483 | (0.81%) | (12.06%) |
Gas Natural Inc. and Subsidiaries | |||||
Reconciliation of GAAP Income from Continuing Operations to | |||||
Adjusted Income from Continuing Operations(1) | |||||
(in thousands, except per share amounts) | Three Months Ended | ||||
March 31, | |||||
2015 | 2014 | ||||
$ | per diluted share | $ | per diluted share | ||
GAAP income from continuing operations | $4,417 | $ 0.42 | $4,537 | $ 0.43 | |
Add back, after tax: | |||||
Non-recurring legal and professional fees | 364 | 0.03 | 209 | 0.02 | |
Non-recurring regulatory and other expenses | 24 | 0.01 | 239 | 0.02 | |
Non-GAAP adjusted income from continuing operations(1) | $4,804 | $ 0.46 | $4,985 | $ 0.47 |
Gas Natural Inc. and Subsidiaries | |||
Reconciliation of GAAP Income from Continuing Operations to Adjusted EBITDA(1) | |||
Three Months Ended | |||
(in thousands) | March 31, | ||
2015 | 2014 | ||
GAAP income from continuing operations | $ 4,417 | $ 4,537 | |
Add back: | |||
Net interest expense | 869 | 809 | |
Income taxes | 2,667 | 2,759 | |
Depreciation, amortization and accretion | 1,890 | 1,684 | |
Non-recurring legal and professional fees | 583 | 336 | |
Non-recurring regulatory and other expenses | 38 | 385 | |
Non-GAAP Adjusted EBITDA(1) | $10,464 | $10,510 |
(1)Non-GAAP Financial Measures:
The Company believes that, when used in conjunction with GAAP measures, Adjusted Income from Continuing Operations and Adjusted EBITDA, or earnings before interest, taxes, depreciation, amortization, accretion and non-recurring charges, which are non-GAAP measures, allow investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. Adjusted Income from Continuing Operations and Adjusted EBITDA are not calculated through the application of GAAP and are not the required form of disclosure by the Securities and Exchange Commission. As such, these measures should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
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SOURCE Gas Natural Inc.