ROANOKE, Va., Aug. 04, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $610,840 or $0.07 per diluted share for the quarter ended June 30, 2021. This compares to consolidated earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs. The overall earnings decline was primarily attributable to the significantly lower non-cash MVP equity in earnings.”
Earnings for the twelve months ending June 30, 2021 were $9,772,285 or $1.19 per diluted share outstanding compared to $11,349,435 or $1.40 per diluted share for the twelve months ended June 30, 2020. Nester attributed the earnings decline in trailing twelve-month net income to lower non-cash MVP equity in earnings, COVID-19 related bad debt expense, and one time maintenance investments in the fourth quarter of fiscal 2020.
RGC Resources, Inc. provides energy and related products and services through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.
Net income for the three months ended June 30, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2021 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. Net income for fiscal 2021 is expected to be lower than 2020.
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, and research and development activities. 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 third quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
Twelve Months Ended
June 30,
June 30,
2021
2020
2021
2020
Operating revenues
$
14,048,846
$
11,071,918
$
71,599,814
$
63,146,971
Operating expenses
12,506,513
9,736,255
58,275,744
49,239,011
Operating income
1,542,333
1,335,663
13,324,070
13,907,960
Equity in earnings of unconsolidated affiliate
133,864
1,205,574
2,813,371
4,470,184
Other income, net
130,186
52,556
855,965
638,345
Interest expense
1,000,238
986,203
4,017,308
4,093,103
Income before income taxes
806,145
1,607,590
12,976,098
14,923,386
Income tax expense
195,305
401,012
3,203,813
3,573,951
Net income
$
610,840
$
1,206,578
$
9,772,285
$
11,349,435
Net earnings per share of common stock:
Basic
$
0.07
$
0.15
$
1.19
$
1.40
Diluted
$
0.07
$
0.15
$
1.19
$
1.40
Cash dividends per common share
$
0.185
$
0.175
$
0.730
$
0.690
Weighted average number of common shares outstanding:
RGC Resources, Inc. is an energy services company. It is primarily engaged in the sale and distribution of natural gas to residential, commercial and industrial customers in Roanoke, Virginia, and the surrounding localities, through its subsidiary, Roanoke Gas Company (Roanoke Gas). Roanoke Gas also provides certain unregulated services. Roanoke Gas maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial, and industrial users in its service territory. Roanoke Gas owns and operates about six metering stations through, which it measures and regulates the gas being delivered by its suppliers. These stations are located at various points throughout its distribution system. Roanoke Gas owns a liquefied natural gas storage facility located in its service territory that has the capacity to store up to 200,000 dekatherms (DTH) of natural gas. It has approximately 1,168 miles of transmission and distribution pipeline.
RGC RESOURCES, INC. 
