Market Overview

RGC Resources, Inc. Reports Second Quarter Earnings

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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,
Assets 2018 2017
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
           

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

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