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CST: 15/12/2019 04:09:37   

RGC Resources, Inc. Reports Third Quarter Earnings

136 Days ago

ROANOKE, Va. , July 31, 2019 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:  RGCO) announced consolidated Company earnings of $1,138,555 or $0.14 per share for the quarter ended June 30, 2019.  This compares to earnings of $1,087,355 or $0.14 per share for the quarter ended June 30, 2018.  CEO John D’Orazio stated, “We continue to see earnings growth from improved utility margins associated with the company’s infrastructure replacement programs, implementation of the new non-gas rates, customer growth, and the investment in Mountain Valley Pipeline.”  

Earnings for the twelve months ending June 30, 2019 were $8,927,266 or $1.11 per share compared to $0.91 per share for the twelve months ended June 30, 2018.  D’Orazio attributed the increase in trailing twelve-month earnings per share primarily to improved utility margins associated with the Company’s infrastructure replacement programs, implementation of the new non-gas rates, 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 June 30, 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 third quarter and twelve months are as follows:

Release Date:  July 31, 2019
Contact: Paul W. Nester
  Vice President and CFO 
Telephone: 540-777-3837


 
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
                 
    Three Months Ended   Twelve Months Ended
    June 30,   June 30,
    2019   2018   2019   2018
                 
Revenues   $   11,682,950     $   11,889,570   $   68,145,798   $   65,736,042  
Operating expenses       10,045,893         10,053,980       56,326,695       54,081,653  
Operating Income       1,637,057         1,835,590       11,819,103       11,654,389  
Equity in earnings of MVP       777,193         245,075       2,391,549       717,254  
Other income (expense), net       (5,967 )       36,857       393,190       (147,723 )
Interest expense       925,698         583,592       3,267,271       2,346,376  
Income before income taxes       1,482,585         1,533,930       11,336,571       9,877,544  
Income tax expense       344,030         446,575       2,409,305       3,104,912  
                 
Net income    $   1,138,555     $   1,087,355   $   8,927,266   $   6,772,632  
                 
Net earnings per share of common stock:              
Basic   $   0.14     $   0.14   $   1.11   $   0.91  
Diluted   $   0.14     $   0.14   $   1.11   $   0.90  
                 
Cash dividends per common share $   0.1650     $   0.1550   $   0.6500   $   0.6100  
                 
Weighted average number of common shares outstanding:            
Basic     8,051,944       7,982,354       8,019,728       7,459,005  
Diluted     8,088,270       8,031,052       8,063,073       7,505,921  
                 
 
  Condensed Consolidated Balance Sheets  
  (Unaudited)  
 
    June 30,  
Assets    2019    2018  
Current assets   $   13,256,420   $   13,143,064  
Total property, plant and equipment, net       177,816,330       161,105,263  
Other assets       53,350,288       34,507,400  
           
Total Assets   $   244,423,038   $   208,755,727  
 
Liabilities and Stockholders' Equity  
Current liabilities   $   23,546,484   $   24,554,669  
Long-term debt, net       90,470,806       57,054,224  
Deferred credits and other liabilities       45,668,813       47,716,465  
Total Liabilities       159,686,103       129,325,358  
Stockholders' Equity       84,736,935       79,430,369  
           
Total Liabilities and Stockholders' Equity   $   244,423,038   $   208,755,727  
               

 


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