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CST: 11/11/2019 15:52:29   

RGC Resources, Inc. Reports Second Quarter Earnings

195 Days ago

ROANOKE, Va., April 29, 2019 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,670,090 or $0.58 per share for the quarter ended March 31, 2019. This compares to consolidated earnings of $3,465,929 or $0.47 per share for the quarter ended March 31, 2018. CEO John D’Orazio stated, “We experienced significant earnings growth from improved utility margins associated with the Company’s infrastructure replacement programs, customer growth and implementation of the new non-gas rates, as well as the investment in the Mountain Valley Pipeline.”

Earnings for the twelve months ending March 31, 2019 were $8,876,066 or $1.11 per basic share outstanding compared to $6,300,839 or $0.87 per share for the twelve months ended March 31, 2018. CEO John D’Orazio attributed the increase to improved utility margins associated with infrastructure replacement programs, increased gas volumes attributed to customer growth, implementation of the new non-gas rates, 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 March 31, 2019 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 second quarter and twelve months are as follows:

 
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
  Three months ended March 31,   Twelve months ended March 31,
  2019   2018   2019   2018
Revenues $ 25,274,959     $ 24,917,973     $ 68,352,418     $ 65,282,296  
Operating expenses   19,071,476       19,641,888       56,334,782       54,003,680  
Operating income   6,203,483       5,276,085       12,017,636       11,278,616  
Equity in earnings of MVP   698,175       191,513       1,859,431       583,805  
Other income (expense), net   121,709       41,948       436,014       (324,928 )
Interest expense   892,649       633,186       2,925,165       2,235,084  
Income before income taxes   6,130,718       4,876,360       11,387,916       9,302,409  
Income tax expense   1,460,628       1,410,431       2,511,850       3,001,570  
Net income $ 4,670,090     $ 3,465,929     $ 8,876,066     $ 6,300,839  
Net earnings per share of common stock:                              
Basic $ 0.58     $ 0.47     $ 1.11     $ 0.87  
Diluted $ 0.58     $ 0.47     $ 1.10     $ 0.86  
Cash dividends per common share $ 0.1650     $ 0.1550     $ 0.6400     $ 0.6000  
Weighted average number of common shares outstanding:                              
Basic   8,032,218       7,371,694       8,002,357       7,270,727  
Diluted   8,073,149       7,413,351       8,048,787       7,317,112  


Condensed Consolidated Balance Sheets
(Unaudited)
 
  March 31,
Assets 2019   2018
Current assets $ 18,423,004     $ 18,532,600  
Total property, plant and equipment, net   173,936,238       155,594,897  
Other assets   45,648,765       24,401,409  
Total Assets $ 238,008,007     $ 198,528,906  
Liabilities and Stockholders’ Equity          
Current liabilities $ 21,382,448     $ 16,089,641  
Long-term debt, net   86,904,965       55,490,316  
Deferred credits and other liabilities   44,746,077       47,649,723  
Total Liabilities   153,033,490       119,229,680  
Stockholders’ Equity   84,974,517       79,299,226  
Total Liabilities and Stockholders’ Equity $ 238,008,007     $ 198,528,906  


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

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