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RGC Resources, Inc. Reports Record Earnings

ROANOKE, Va., Nov. 15, 2019 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:  RGCO) announced record consolidated Company earnings of $8,698,412 or $1.08 per share for the fiscal year ended September 30, 2019.  This compares to earnings of $7,297,205 or $0.95 per share for the year ended September 30, 2018.  CEO John D’Orazio stated, “I am pleased to announce our fifth consecutive year of record earnings.  The increase in 2019 earnings is attributable to improved utility margins associated with our infrastructure replacement programs, implementation of new non-gas rates, customer growth, and our ongoing investment in the Mountain Valley Pipeline (MVP).”  D’Orazio further commented, “We continue to execute on the key strategies propelling our earnings growth:  (1) growth in our regulated natural gas business through investments in infrastructure replacements and expansion; and (2) investments in midstream projects such as the MVP and the Southgate.  Diversification opportunities to expand and grow the company are a strategic focus of our management team.  We are excited about the future and increasing shareholder value.”

Earnings for the quarter ending September 30, 2019 were $455,605 or $0.06 per share compared to $684,459 or $0.09 per share for the quarter ended September 30, 2018.  D’Orazio attributed the decrease to prior year tax reform adjustments.

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.  Past performance is not necessarily a predictor of future results.

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


RGC Resources, Inc. and Subsidiaries 
Condensed Consolidated Statements of Income 
(Unaudited)
 
    Three Months Ended   Twelve Months Ended
    September 30,   September 30,  
    2019   2018   2019   2018
                 
Revenues   $ 9,851,869   $ 9,971,142   $ 68,026,525   $ 65,534,736
Operating expenses   9,361,167   9,256,801   56,431,061   54,064,229
Operating Income   490,702   714,341   11,595,464   11,470,507
Equity in earnings of MVP   981,931   353,132   3,020,348   938,531
Other income (expense), net 110,254   151,562   351,882   244,868
Interest expense   983,422   632,142   3,618,551   2,461,565
Income before income taxes 599,465   586,893   11,349,143   10,192,341
Income tax expense (benefit) 143,860   (97,566)   2,650,731   2,895,136
                 
Net income   $ 455,605   $ 684,459   $ 8,698,412   $ 7,297,205
                 
Net earnings per share of common stock:              
  Basic   $ 0.06   $ 0.09   $ 1.08   $ 0.95
  Diluted   $ 0.06   $ 0.09   $ 1.08   $ 0.95
                 
Cash dividends per common share $ 0.165   $ 0.155   $ 0.660   $ 0.620
                 
Weighted average number of common shares outstanding:            
  Basic   8,069,934   7,991,553   8,039,484   7,649,025
  Diluted   8,102,334   8,039,259   8,078,950   7,695,712
                 
                 
                 
Condensed Consolidated Balance Sheets     
(Unaudited)    
                 
        September 30,    
Assets       2019   2018    
Current assets       $ 16,385,192   $ 15,544,602    
Total property, plant and equipment, net     182,002,956   165,963,628    
Other assets       59,965,548   38,051,876    
                 
  Total Assets       $ 258,353,696   $ 219,560,106    
                 
Liabilities and Stockholders' Equity              
Current liabilities       $ 21,633,064   $ 24,091,849    
Long-term debt, net of unamortized debt issuance costs   103,371,358   70,321,936    
Deferred credits and other liabilities     50,252,882   45,563,209    
  Total Liabilities       175,257,304   139,976,994    
Stockholders' Equity       83,096,392   79,583,112    
                 
  Total Liabilities and Stockholders' Equity     $ 258,353,696   $ 219,560,106    
                 
        $  -    $    
                 


Contact:          John S. D’Orazio
                        President and CEO
Telephone:       540-777-3815