RGC Resources, Inc. Reports Record Earnings
ROANOKE, Nov. 15, 2019 - 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
