RGC Resources, Inc. Reports Second Quarter Earnings

ROANOKE, Va., May 04, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:  RGCO) announced consolidated Company earnings of $5,680,316 or $0.70 per diluted share for the quarter ended March 31, 2020.  This compares to consolidated earnings of $4,670,090 or $0.58 per diluted share for the quarter ended March 31, 2019.  CEO Paul Nester stated, “Prior to the COVID-19 pandemic, we experienced strong earnings growth driven primarily by improved utility margins and the investment in the Mountain Valley Pipeline (MVP)”. 

Earnings for the twelve months ending March 31, 2020 were $11,281,412 or $1.39 per diluted share outstanding compared to $8,876,066 or $1.10 per diluted share for the twelve months ended March 31, 2019.  Nester attributed the significant increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, 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.

Net income for the three months ended March 31, 2020 is not indicative of the results to be expected for the fiscal year ending September 30, 2020 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.  Additionally, the COVID-19 pandemic creates significant economic uncertainty for the remainder of fiscal 2020.  Net income for the remainder of fiscal 2020 is expected to be lower than the corresponding period in 2019.

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.

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 Twelve Months Ended
 March 31, March 31,
 2020 2019 2020 2019
        
Revenues$22,437,731 $25,274,959 $63,758,003 $68,352,418
Operating expenses 15,438,115  19,071,476  49,548,649  56,334,782
Operating Income 6,999,616  6,203,483  14,209,354  12,017,636
Equity in earnings of MVP 1,188,593  698,175  4,041,803  1,859,431
Other income, net 317,892  121,709  579,822  436,014
Interest expense 1,038,293  892,649  4,032,598  2,925,165
Income before income taxes 7,467,808  6,130,718  14,798,381  11,387,916
Income tax expense 1,787,492  1,460,628  3,516,969  2,511,850
        
Net income$5,680,316 $4,670,090 $11,281,412 $8,876,066
        
Net earnings per share of common stock:       
Basic$0.70 $0.58 $1.40 $1.11
Diluted$0.70 $0.58 $1.39 $1.10
        
Cash dividends per common share$0.175 $0.165 $0.680 $0.640
        
Weighted average number of common shares outstanding:      
Basic 8,122,157  8,032,218  8,081,438  8,002,357
Diluted 8,144,963  8,073,149  8,112,308  8,048,787
        

Condensed Consolidated Balance Sheets
(Unaudited)

 March 31,
Assets2020 2019
Current assets$16,603,503 $18,423,004
Total utility plant, net 189,667,211  173,936,238
Other assets 64,317,462  45,648,765
    
Total Assets$270,588,176 $238,008,007
    
Liabilities and Stockholders' Equity   
Current liabilities$17,172,195 $21,382,448
Long-term debt, net 112,231,649  86,904,965
Deferred credits and other liabilities 50,866,985  44,746,077
Total Liabilities 180,270,829  153,033,490
Stockholders' Equity 90,317,347  84,974,517
    
Total Liabilities and Stockholders' Equity$270,588,176 $238,008,007
    
 $- $-
    


Contact:   Randall P. Burton, II
Vice President and CFO
Telephone: 540-777-3997
   
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