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CST: 23/07/2019 06:18:10   

RGC Resources, Inc. Reports First Quarter Earnings

168 Days ago

ROANOKE, Va., Feb. 04, 2019 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:  RGCO) announced consolidated Company earnings of $2,434,162 or $0.30 per share for the quarter ended December 31, 2018.  This compares to consolidated earnings of $2,059,462 or $0.28 per share for the quarter ended December 31, 2017.  CEO John D’Orazio stated, “We continue to see earnings growth from improved utility margins associated with the Company’s infrastructure replacement programs and customer growth as well as the investment in Mountain Valley Pipeline.” 

Earnings for the twelve months ending December 31, 2018 were $7,671,905 or $0.98 per share compared to $6,060,109 or $0.84 per share for the twelve months ended December 31, 2017.  D’Orazio attributed the increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, increased gas volumes attributed to customer growth, and the investment in the MVP.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.

From time to time, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities 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, the Company notes that a variety of factors could cause the Company’s actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company’s forward-looking statements.

Net income for the three months ended December 31, 2018 is not indicative of the results to be expected for the fiscal year ending September 30, 2019 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months.  Past performance is not necessarily a predictor of future results.

Summary financial statements for the first quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)

  Three months ended December 31,
Twelve months ended December 31,
  2018   2017   2018   2017
Revenues $   21,216,747   $   18,756,051   $   67,995,432   $   62,264,336  
Operating expenses   17,952,525     15,111,560     56,905,194     50,540,988  
Operating income   3,264,222     3,644,491     11,090,238     11,723,348  
Equity in earnings of MVP   563,049     148,811     1,352,769     485,917  
Other income (expense), net   125,886     14,501     356,253     (509,056 )
Interest expense   816,782     612,645     2,665,702     2,071,378  
Income before income taxes   3,136,375     3,195,158     10,133,558     9,628,831  
Income tax expense   702,213     1,135,696     2,461,653     3,568,722  
Net income $   2,434,162   $   2,059,462   $   7,671,905   $   6,060,109  
Net earnings per share of common stock:        
Basic $   0.30   $   0.28   $   0.98   $   0.84  
Diluted $   0.30   $   0.28   $   0.97   $   0.83  
Cash dividends per common share $   0.1650   $   0.1550   $   0.6300   $   0.5900  
Weighted average number of common shares outstanding:        
Basic   8,003,736     7,248,094     7,839,488     7,232,171  
Diluted   8,051,997     7,296,180     7,886,296     7,276,772  
                         

Condensed Consolidated Balance Sheets
(Unaudited)

  December 31,
Assets 2018   2017
Current assets $   22,329,735   $   21,881,630
Total property, plant and equipment, net   170,032,053     151,909,137
Other assets   42,341,003     22,490,552
Total Assets $   234,702,791   $   196,281,319
Liabilities and Stockholders’ Equity    
Current liabilities $   19,416,078   $   17,876,580
Long-term debt, net   89,119,411     69,793,783
Deferred credits and other liabilities   45,207,562     47,309,921
Total Liabilities   153,743,051     134,980,284
Stockholders’ Equity   80,959,740     61,301,035
Total Liabilities and Stockholders’ Equity $   234,702,791   $   196,281,319
           


Contact:   Paul W. Nester
Vice President and CFO
Telephone:   540-777-3837
     

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