ROANOKE, Va., Feb. 03, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,006,936 or $0.49 per diluted share for the quarter ended December 31, 2019.  This compares to consolidated earnings of $2,434,162 or $0.30 per diluted share for the quarter ended December 31, 2018.  CEO John D’Orazio stated, “We continue to see earnings growth from improved utility margins associated with the Company’s non-gas rates, infrastructure replacement programs and customer growth as well as the investment in Mountain Valley Pipeline.” 

Earnings for the twelve months ending December 31, 2019 were $10,271,186 or $1.27 per diluted share compared to $7,671,905 or $0.97 per diluted share for the twelve months ended December 31, 2018. D’Orazio 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, 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, 2019 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.  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 Twelve Months Ended
 December 31, December 31,
  2019  2018  2019  2018
        
Revenues$19,785,453 $21,216,747 $66,595,231 $67,995,432
Operating expenses 14,703,474  17,952,525  53,182,010  56,905,194
Operating Income 5,081,979  3,264,222  13,413,221  11,090,238
Equity in earnings of MVP 1,094,086  563,049  3,551,385  1,352,769
Other income, net 157,643  125,886  383,639  356,253
Interest expense 1,085,185  816,782  3,886,954  2,665,702
Income before income taxes 5,248,523  3,136,375  13,461,291  10,133,558
Income tax expense (benefit) 1,241,587  702,213  3,190,105  2,461,653
        
Net income$4,006,936 $2,434,162 $10,271,186 $7,671,905
        
Net earnings per share of common stock:      
  Basic$0.50 $0.30 $1.27 $0.98
  Diluted$0.49 $0.30 $1.27 $0.97
        
Cash dividends per common share$0.175 $0.165 $0.670 $0.630
        
Weighted average number of common shares outstanding:         
  Basic 8,081,837  8,003,736  8,059,170  7,839,488
  Diluted 8,113,785  8,051,997  8,094,616  7,886,296
        

 


  Condensed Consolidated Balance Sheets 
  (Unaudited) 
  
 December 31,
Assets 2019  2018
Current assets$21,239,364 $22,329,735
Total property, plant and equipment, net 185,391,008  170,032,053
Other assets 61,552,241  42,341,003
    
  Total Assets$268,182,613 $234,702,791
    
Liabilities and Stockholders' Equity  
Current liabilities$17,503,920 $19,416,078
Long-term debt, net of unamortized debt issuance costs 113,772,779  89,119,411
Deferred credits and other liabilities 50,546,779  45,207,562
  Total Liabilities 181,823,478  153,743,051
Stockholders' Equity 86,359,135  80,959,740
    
  Total Liabilities and Stockholders' Equity$268,182,613 $234,702,791
    
 $- $-

 

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