Document

0001069533-17-000020.txt : 20170801 0001069533-17-000020.hdr.sgml : 20170801 20170801094924 ACCESSION NUMBER: 0001069533-17-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170731 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170801 DATE AS OF CHANGE: 20170801 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RGC RESOURCES INC CENTRAL INDEX KEY: 0001069533 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 541909697 STATE OF INCORPORATION: VA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26591 FILM NUMBER: 17995298 BUSINESS ADDRESS: STREET 1: 519 KIMBALLAVENUE N.E. CITY: ROANOKE STATE: VA ZIP: 24016 BUSINESS PHONE: 5407774427 MAIL ADDRESS: STREET 1: 519 KIMBALL AVENUE N.E. CITY: ROANOKE STATE: VA ZIP: 24016 8-K 1 rgcoearningsreleaseq32017.htm 8-K Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): July 31, 2017

RGC RESOURCES, INC.

(Exact name of Registrant as specified in its charter)



Virginia	000-26591	54-1909697
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)



519 Kimball Ave., N.E. Roanoke, Virginia		24016
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 540-777-4427

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 240.425)



¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



¨	Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 if the Securities Exchange Act of 1934.



			Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



¨



ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 31, 2017, RGC Resources, Inc. issued a press release announcing the results for the third quarter ending June 30, 2017. A copy of this press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.



ITEM 9.01.	FINANCIAL STATEMENT AND EXHIBITS.



99.1			Press Release dated July 31, 2017.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




	RGC RESOURCES, INC.

Date: August 1, 2017	By:	/s/ Paul W. Nester

	Paul W. Nester
	Vice President, Secretary, Treasurer and CFO

EX-99.1 2 exhibit991q32017.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

NEWS RELEASE

RGC RESOURCES, INC.



Release Date:		July 31, 2017
Contact:		Paul W. Nester
		Vice President and CFO
Telephone:		540-777-3837

RGC RESOURCES, INC. REPORTS

THIRD QUARTER EARNINGS

ROANOKE, Va. (July 31, 2017)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $615,562 or $0.09 per share for the quarter ended June 30, 2017. This compares to earnings of $627,068 or $0.09 per share for the quarter ended June 30, 2016. CEO John D’Orazio stated, "We continue to see improved utility margins associated with the company's infrastructure replacement programs and customer growth."

Earnings for the twelve months ending June 30, 2017 were $6,218,540 or $0.86 per share compared to $0.80 per share for the twelve months ended June 30, 2016. D’Orazio attributed the 9% increase in trailing twelve month earnings primarily to improved utility margins associated with the Company’s infrastructure replacement programs, customer growth and the investment in the Mountain Valley Pipeline.

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 June 30, 2017 is not indicative of the results to be expected for the fiscal year ending September 30, 2017 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,
	2017		2016		2017		2016
Revenues	$	11,435,824	$	11,295,197	$	62,104,687	$	58,816,430
Cost of sales	4,801,422		4,982,857		29,384,461		27,708,013
Gross margin	6,634,402		6,312,340		32,720,226		31,108,417
Equity in earnings of MVP	111,626		40,562		346,710		95,945
Other operating expenses, net	5,314,933		4,898,141		21,211,306		20,322,849
Interest expense	472,300		396,304		1,816,022		1,591,940
Income before income taxes	958,795		1,058,457		10,039,608		9,289,573
Income tax expense	343,233		431,389		3,821,068		3,592,513
Net income	$	615,562	$	627,068	$	6,218,540	$	5,697,060
Net earnings per share of common stock:
Basic	$	0.09	$	0.09	$	0.86	$	0.80
Diluted	$	0.08	$	0.09	$	0.86	$	0.80
Cash dividends per common share	$	0.1450	$	0.1350	$	0.5700	$	0.5333
Weighted average number of common shares outstanding:
Basic	7,227,171		7,160,650		7,203,315		7,132,128
Diluted	7,273,840		7,172,712		7,231,321		7,138,514

Condensed Consolidated Balance Sheets

(Unaudited)



	June 30,
Assets	2017		2016
Current assets	$	13,125,301	$	12,566,358
Total property, plant and equipment, net	144,967,023		127,872,827
Other assets	20,442,433		14,657,699
Total Assets	$	178,534,757	$	155,096,884
Liabilities and Stockholders’ Equity
Current liabilities	$	15,724,775	$	23,006,548
Long-term debt	53,084,509		32,828,556
Deferred credits and other liabilities	50,053,773		42,713,478
Total Liabilities	118,863,057		98,548,582
Stockholders’ Equity	59,671,700		56,548,302
Total Liabilities and Stockholders’ Equity	$	178,534,757	$	155,096,884