EX-99.1 2 exhibit991q22019.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
Release Date:
  
April 29, 2019
Contact:
  
Paul W. Nester
 
  
Vice President and CFO
Telephone:
  
540-777-3837


RGC RESOURCES, INC. REPORTS
SECOND QUARTER EARNINGS


ROANOKE, Va. (April 29, 2019)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,670,090 or $0.58 per share for the quarter ended March 31, 2019. This compares to consolidated earnings of $3,465,929 or $0.47 per share for the quarter ended March 31, 2018. CEO John D'Orazio stated, "We experienced significant earnings growth from improved utility margins associated with the Company's infrastructure replacement programs, customer growth and implementation of the new non-gas rates, as well as the investment in the Mountain Valley Pipeline."

Earnings for the twelve months ending March 31, 2019 were $8,876,066 or $1.11 per basic share compared to $6,300,839 or $0.87 per share for the twelve months ended March 31, 2018. CEO John D’Orazio attributed the increase to improved utility margins associated with infrastructure replacement programs, increased gas volumes attributed to customer growth, implementation of the new non-gas rates and 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 March 31, 2019 is not indicative of the results to be expected for the fiscal year ending September 30, 2019 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 second quarter and twelve months are as follows:







RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
Three months ended March 31,
 
Twelve months ended March 31,
 
 
2019
 
2018
 
2019
 
2018
Revenues
 
$
25,274,959

 
$
24,917,973

 
$
68,352,418

 
$
65,282,296

Operating expenses
 
19,071,476

 
19,641,888

 
56,334,782

 
54,003,680

Operating income
 
6,203,483

 
5,276,085

 
12,017,636

 
11,278,616

Equity in earnings of MVP
 
698,175

 
191,513

 
1,859,431

 
583,805

Other income (expense), net
 
121,709

 
41,948

 
436,014

 
(324,928
)
Interest expense
 
892,649

 
633,186

 
2,925,165

 
2,235,084

Income before income taxes
 
6,130,718

 
4,876,360

 
11,387,916

 
9,302,409

Income tax expense
 
1,460,628

 
1,410,431

 
2,511,850

 
3,001,570

Net income
 
$
4,670,090

 
$
3,465,929

 
$
8,876,066

 
$
6,300,839

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.58

 
$
0.47

 
$
1.11

 
$
0.87

Diluted
 
$
0.58

 
$
0.47

 
$
1.10

 
$
0.86

Cash dividends per common share
 
$
0.1650

 
$
0.1550

 
$
0.6400

 
$
0.6000

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
8,032,218

 
7,371,694

 
8,002,357

 
7,270,727

Diluted
 
8,073,149

 
7,413,351

 
8,048,787

 
7,317,112


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
March 31,
Assets
 
2019
 
2018
Current assets
 
$
18,423,004

 
$
18,532,600

Total property, plant and equipment, net
 
173,936,238

 
155,594,897

Other assets
 
45,648,765

 
24,401,409

Total Assets
 
$
238,008,007

 
$
198,528,906

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
21,382,448

 
$
16,089,641

Long-term debt, net
 
86,904,965

 
55,490,316

Deferred credits and other liabilities
 
44,746,077

 
47,649,723

Total Liabilities
 
153,033,490

 
119,229,680

Stockholders’ Equity
 
84,974,517

 
79,299,226

Total Liabilities and Stockholders’ Equity
 
$
238,008,007

 
$
198,528,906