10-QPeriod: Q3 FY2009

ATMOS ENERGY CORP Quarterly Report for Q3 Ended Jun 30, 2009

Filed August 5, 2009For Securities:ATO

Summary

Atmos Energy Corporation (ATO) reported a net income of $1.964 million for the three months ended June 30, 2009, a significant improvement from a net loss of $6.588 million in the same period of the prior year. This turnaround was driven by increased gross profit in its regulated transmission and storage, and natural gas marketing segments, alongside lower operating expenses. For the nine months ended June 30, 2009, net income rose to $206.930 million, up from $178.749 million in the prior year, primarily due to strong performance in regulated operations. The company's balance sheet as of June 30, 2009, shows net property, plant, and equipment of $4.34 billion and total capitalization of $4.36 billion. Shareholders' equity increased to $2.19 billion, with retained earnings showing substantial growth. Long-term debt remained stable at approximately $2.17 billion. The company also managed its liquidity effectively, ending the period with $125.7 million in cash and cash equivalents, and had no short-term debt outstanding at quarter-end.

Financial Highlights

23 data points
Beta

Net Income

$1.96M

Cash & Equivalents

$125.73M

Free Cash Flow

$824.59M

Financial Statements
Beta
Cost of Revenue$521.13M
Gross Profit$259.64M
Operating Expenses$215.96M
Operating Income$43.68M
Interest Expense$41.51M
Net Income$1.96M
Shares Outstanding (Basic)91.34M
Shares Outstanding (Diluted)91.65M

Key Highlights

  • 1Net income improved significantly to $1.964 million for the three months ended June 30, 2009, compared to a net loss of $6.588 million in the prior year's comparable period.
  • 2Nine-month net income increased by 16% to $206.930 million for the period ended June 30, 2009, compared to $178.749 million in the prior year.
  • 3Shareholders' equity increased to $2.19 billion as of June 30, 2009, driven by growth in retained earnings.
  • 4The company ended the period with a strong cash position of $125.7 million and no outstanding short-term debt, indicating effective liquidity management.
  • 5Operating revenues for the three months ended June 30, 2009, were $780.775 million, a decrease from $1.639 billion in the prior year, primarily due to lower natural gas marketing segment revenues.
  • 6Capital expenditures for the nine-month period totaled $342.3 million, an increase from $312.9 million in the prior year, reflecting investments in growth projects and infrastructure.

Frequently Asked Questions

The improvement was driven by higher gross profit in the regulated transmission and storage and natural gas marketing segments, coupled with lower consolidated operation and maintenance expenses. This offset lower natural gas distribution margins and a charge for impaired investments.

Long-term debt remained relatively stable at approximately $2.17 billion. The company repaid $400 million of senior notes with proceeds from a new $450 million senior notes offering in March 2009. Notably, the company had no short-term debt outstanding as of June 30, 2009, compared to $350.5 million at September 30, 2008, indicating improved short-term liquidity.

Capital expenditures for fiscal year 2009 were projected to be between $500 million and $515 million. For the nine months ended June 30, 2009, capital expenditures were $342.3 million, an increase from the prior year, reflecting investments in nonregulated growth projects and regulated operations.

The company has enhanced its liquidity by securing committed credit facilities totaling approximately $1.3 billion and maintained a strong cash position of $125.7 million at the end of the period. The successful issuance of senior notes and the repayment of maturing debt also contributed to a stable financial position.