EX-99.1 2 exhibit991q32016.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
 
 
 
Release Date:
  
August 1, 2016
Contact:
  
Paul W. Nester
 
  
Vice President and CFO
Telephone:
  
540-777-3837
RGC RESOURCES, INC.
THIRD QUARTER FINANCIAL RESULTS
ROANOKE, Va. (August 1, 2016)—RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $627,068 or $0.13 per average share outstanding for the quarter ended June 30, 2016. This compares to consolidated earnings of $354,940 or $0.08 per average share outstanding for the quarter ended June 30, 2015. CFO Paul Nester attributed the increase to improved utility margins, customer growth, higher capital spending, and lower operating expenses.
Earnings for the twelve months ending June 30, 2016 were $5,697,060 or $1.20 per share compared to $1.04 per share for the twelve months ended June 30, 2015. Nester attributed the higher year-over-year earnings primarily to improved utility margins, customer growth, higher capital spending, and lower operating expenses.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, RGC Midstream, LLC 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.
Net income for the three months ended June 30, 2016 is not indicative of the results to be expected for the fiscal year ending September 30, 2016 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 third quarter and twelve months are as follows:

       





RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
Three Months Ended
June 30,
 
Twelve Months Ended
June 30,
 
 
2016
 
2015
 
2016
 
2015
Revenues
 
$
11,295,197

 
$
10,774,409

 
$
58,816,430

 
$
68,736,361

Cost of sales
 
4,982,857

 
4,812,581

 
27,708,013

 
38,687,199

Gross margin
 
6,312,340

 
5,961,828

 
31,108,417

 
30,049,162

Other operating expenses, net
 
4,857,579

 
5,026,752

 
20,226,904

 
20,499,522

Interest expense
 
396,304

 
358,850

 
1,591,940

 
1,591,209

Income before income taxes
 
1,058,457

 
576,226

 
9,289,573

 
7,958,431

Income tax expense
 
431,389

 
221,286

 
3,592,513

 
3,044,108

Net income
 
$
627,068

 
$
354,940

 
$
5,697,060

 
$
4,914,323

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.13

 
$
0.08

 
$
1.20

 
$
1.04

Diluted
 
$
0.13

 
$
0.07

 
$
1.20

 
$
1.04

Cash dividends per common share
 
$
0.2025

 
$
0.1925

 
$
0.8000

 
$
0.7625

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
4,773,766

 
4,729,428

 
4,754,752

 
4,723,796

Diluted
 
4,781,808

 
4,732,620

 
4,759,009

 
4,727,181


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
June 30,
Assets
 
2016
 
2015
Current assets
 
$
12,566,358

 
$
12,352,281

Total property, plant and equipment, net
 
127,872,827

 
115,276,089

Other assets
 
14,657,699

 
9,501,449

Total Assets
 
$
155,096,884

 
$
137,129,819

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
23,006,548

 
$
16,741,218

Long-term debt
 
32,828,556

 
30,314,159

Deferred credits and other liabilities
 
42,713,478

 
35,410,357

Total Liabilities
 
98,548,582

 
82,465,734

Stockholders’ Equity
 
56,548,302

 
54,664,085

Total Liabilities and Stockholders’ Equity
 
$
155,096,884

 
$
137,129,819