0001069533-18-000031.txt : 20180802 0001069533-18-000031.hdr.sgml : 20180802 20180802112425 ACCESSION NUMBER: 0001069533-18-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180801 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180802 DATE AS OF CHANGE: 20180802 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: 18987157 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 rgcoearningsreleaseq32018.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): August 1, 2018
 
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 August 1, 2018, RGC Resources, Inc. issued a press release announcing the results for the third quarter ending June 30, 2018. 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.






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 2, 2018
 
 
 
By:
 
/s/ Paul W. Nester
 
 
 
 
 
 
 
Paul W. Nester
 
 
 
 
Vice President, Secretary, Treasurer and CFO



 EX-99.1 2 exhibit991q32018.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
Release Date:
  
August 1, 2018
Contact:
  
Paul W. Nester
 
  
Vice President and CFO
Telephone:
  
540-777-3837


RGC RESOURCES, INC. REPORTS INCREASE IN
THIRD QUARTER EARNINGS


ROANOKE, Va. (August 1, 2018)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,087,355 or $0.14 per share for the quarter ended June 30, 2018. This compares to earnings of $615,562 or $0.09 per share for the quarter ended June 30, 2017. CEO John D'Orazio stated, "We continue to see earnings growth from improved utility margins associated with the Company's infrastructure replacement programs and customer growth as well as the investment in Mountain Valley Pipeline.

Earnings for the twelve months ending June 30, 2018 were $6,772,632 or $0.91 per share compared to $0.86 per share for the twelve months ended June 30, 2017. D’Orazio attributed the 6% increase in trailing twelve month earnings per share primarily to improved utility margins associated with the Company's infrastructure replacement programs and customer growth as well as the investment in the MVP.

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, 2018 is not indicative of the results to be expected for the fiscal year ending September 30, 2018 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,
 
 
2018
 
2017
 
2018
 
2017
Revenues
 
$
11,889,570

 
$
11,435,824

 
$
65,736,042

 
$
62,104,687

Operating expenses
 
10,023,347

 
10,107,617

 
54,121,357

 
50,388,622

Operating income
 
1,866,223

 
1,328,207

 
11,614,685

 
11,716,065

Equity in earnings of MVP
 
245,075

 
111,626

 
717,254

 
346,710

Other (income) expense, net
 
(6,224
)
 
8,738

 
108,019

 
207,145

Interest expense
 
583,592

 
472,300

 
2,346,376

 
1,816,022

Income before income taxes
 
1,533,930

 
958,795

 
9,877,544

 
10,039,608

Income tax expense
 
446,575

 
343,233

 
3,104,912

 
3,821,068

Net income
 
$
1,087,355

 
$
615,562

 
$
6,772,632

 
$
6,218,540

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.14

 
$
0.09

 
$
0.91

 
$
0.86

Diluted
 
$
0.14

 
$
0.08

 
$
0.90

 
$
0.86

Cash dividends per common share
 
$
0.1550

 
$
0.1450

 
$
0.6100

 
$
0.5700

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
7,982,354

 
7,227,171

 
7,459,005

 
7,203,315

Diluted
 
8,031,052

 
7,273,840

 
7,505,921

 
7,231,321


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
June 30,
Assets
 
2018
 
2017
Current assets
 
$
13,143,064

 
$
13,125,301

Total property, plant and equipment, net
 
161,105,263

 
144,967,023

Other assets
 
34,507,400

 
20,442,433

Total Assets
 
$
208,755,727

 
$
178,534,757

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
24,554,669

 
$
15,724,775

Long-term debt
 
57,054,224

 
53,084,509

Deferred credits and other liabilities
 
47,716,465

 
50,053,773

Total Liabilities
 
129,325,358

 
118,863,057

Stockholders’ Equity
 
79,430,369

 
59,671,700

Total Liabilities and Stockholders’ Equity
 
$
208,755,727

 
$
178,534,757