RGC Resources, Inc. Reports Second Quarter Earnings

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| Source: RGC Resources Inc.

ROANOKE, Va., April 30, 2018 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $3,465,929 or $0.47 per share for the quarter ended March 31, 2018.  This includes a $358,901 refund reserve for excess revenues billed to Roanoke Gas customers attributable to the reduction in the federal income tax rate.  This compares to consolidated earnings of $3,225,199 or $0.45 per share for the quarter ended March 31, 2017. 

Earnings for the twelve months ending March 31, 2018 were $6,300,839 or $0.87 per share compared to $6,230,046 or $0.87 per share for the twelve months ended March 31, 2017.  CEO John D’Orazio attributed the increase 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 March 31, 2018 is not indicative of the results to be expected for the fiscal year ending September 30, 2018 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,
 2018 2017 2018 2017
Revenues$24,917,973 $21,900,013 $65,282,296 $61,964,060
Cost of sales 13,911,264  11,070,283  32,613,630  29,565,896
Gross margin 11,006,709  10,829,730  32,668,666  32,398,164
Equity in earnings of MVP 191,513  93,625  583,805  275,646
Other operating expenses, net 5,688,676  5,251,093  21,714,978  20,794,514
Interest expense 633,186  469,480  2,235,084  1,740,026
Income before income taxes 4,876,360  5,202,782  9,302,409  10,139,270
Income tax expense 1,410,431  1,977,583  3,001,570  3,909,224
Net income$  3,465,929 $  3,225,199 $  6,300,839 $  6,230,046
Net earnings per share of common stock:           
Basic$  0.47 $  0.45 $  0.87 $  0.87
Diluted$  0.47 $  0.45 $  0.86 $  0.86
Cash dividends per common share$  0.1550 $  0.1450 $  0.6000 $  0.5600
Weighted average number of common shares outstanding:           
Basic 7,371,694  7,215,329  7,270,727  7,186,730
Diluted 7,413,351  7,244,845  7,317,112  7,204,684
            


 
Condensed Consolidated Balance Sheets
(Unaudited)
 
 March 31,
Assets20182017
Current assets$18,532,600 $15,621,491
Total property, plant and equipment, net 155,594,897  141,531,553
Other assets 24,401,409  19,912,761
Total Assets$  198,528,906 $  177,065,805
Liabilities and Stockholders’ Equity    
Current liabilities$16,089,641 $18,551,673
Long-term debt 55,490,316  50,096,333
Deferred credits and other liabilities 47,649,723  48,463,998
Total Liabilities 119,229,680  117,112,004
Stockholders’ Equity 79,299,226  59,953,801
Total Liabilities and Stockholders’ Equity$  198,528,906 $  177,065,805
      

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