RGC Resources, Inc. Announces First Quarter Financial Results

• Press Release
• Source: RGC Resources, Inc.
• On 4:43 pm EST, Thursday February 5, 2009

ROANOKE, Va., Feb. 5, 2009 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NasdaqGM:RGCO - News) announced consolidated Company earnings of $1,949,159 or $0.88 per average share outstanding for the quarter ended December 31, 2008. This compares to consolidated earnings of $1,529,318 or $0.70 per average share outstanding for the quarter ended December 31, 2007. President, Chairman and CEO John Williamson attributed the increase in earnings to improved gross margins and higher sales volumes.

Related Quotes

Symbol	Price	Change
RGCO	28.00	0.00

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Earnings per share for the twelve months ending December 31, 2008 were $4,640,975 or $2.10 per share compared to $1.68 per share for the twelve months ended December 31, 2007. Earnings for the twelve months ended December 31, 2008 were positively impacted by improved margins, higher sales volumes, and the absence of losses associated with the Company's formerly owned Bluefield Gas Company operations.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company and RGC Ventures of Virginia, Inc.

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.

Summary financial statements for the first quarter and twelve months are as follows:

                RGC Resources, Inc. and Subsidiaries
 Condensed Consolidated Statements of Earnings and Comprehensive Income
                             (Unaudited)

                       Three Months Ended       Twelve Months Ended
                          December 31,              December 31,
                       2008          2007        2008          2007
                    ------------------------  ------------------------

 Revenues           $28,459,195  $25,740,908  $97,355,113  $89,224,565
 Cost of sales       20,363,158   18,372,079   70,714,293   63,877,394
                    -----------  -----------  -----------  -----------
 Gross margin         8,096,037    7,368,829   26,640,820   25,347,171
 Other operating
  expenses            4,420,032    4,280,360   17,180,636   17,288,886
 Interest expense       531,320      564,482    1,999,920    1,970,456
                    -----------  -----------  -----------  -----------
 Income from
  continuing
  operations before
  income taxes        3,144,685    2,523,987    7,460,264    6,087,829
 Income tax expense
  from continuing
  operations          1,195,526      957,979    2,819,289    2,267,805
                    -----------  -----------  -----------  -----------
 Net income from
  continuing
  operations          1,949,159    1,566,008    4,640,975    3,820,024
 Net loss from
  discontinued
  operations, net of
  income taxes               --      (36,690)          --     (170,012)
                    -----------  -----------  -----------  -----------
 Net income           1,949,159    1,529,318    4,640,975    3,650,012
                    ===========  ===========  ===========  ===========

 Basic earnings per
  share of common
  stock:
  Income from
   continuing
   operations       $      0.88  $      0.72  $      2.10  $      1.76
  Discontinued
   operations                --        (0.02)          --        (0.08)
                    -----------  -----------  -----------  -----------
  Net income        $      0.88  $      0.70  $      2.10  $      1.68
                    ===========  ===========  ===========  ===========

 Diluted earnings
  per share of
  common stock:
  Income from
   continuing
   operations       $      0.88  $      0.71  $      2.09  $      1.75
  Discontinued
   operations                --        (0.02)          --        (0.08)
                    -----------  -----------  -----------  -----------
  Net income        $      0.88  $      0.69  $      2.09  $      1.67
                    ===========  ===========  ===========  ===========

 Cash dividends per
  common share      $    0.3200  $    0.3125  $    1.2575  $    1.2275
                    ===========  ===========  ===========  ===========

 Weighted average
  number of common
  shares outstanding:
  Basic               2,212,470    2,191,512    2,206,532    2,173,757
  Diluted             2,220,228    2,202,251    2,215,762    2,184,676


                Condensed Consolidated Balance Sheets
                             (Unaudited)

                                                   December 31,
                                                2008          2007
 Assets                                     ------------  ------------
 Current assets                             $ 49,012,892  $ 40,674,460
 Total property, plant and equipment, net     76,144,053    73,431,005
 Other assets                                  4,153,681     3,545,634
                                            ------------  ------------

  Total Assets                              $129,310,626  $117,651,099
                                            ============  ============

 Liabilities and Stockholders' Equity
 Current liabilities                        $ 37,822,122  $ 33,871,163
 Long-term debt                               28,000,000    23,000,000
 Deferred credits and other liabilities       20,047,130    17,712,830
                                            ------------  ------------
  Total Liabilities                           85,869,252    74,583,993
 Stockholders' Equity                         43,441,374    43,067,106
                                            ------------  ------------

  Total Liabilities and Stockholders'
   Equity                                   $129,310,626  $117,651,099
                                            ============  ============

          RGC Resources, Inc.
          John B. Williamson, III, President, Chairman and CEO
          540-777-3810