0001069533-19-000036.txt : 20190801 0001069533-19-000036.hdr.sgml : 20190801 20190801093750 ACCESSION NUMBER: 0001069533-19-000036 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190731 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190801 DATE AS OF CHANGE: 20190801 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: 19991346 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 rgcoearningsreleaseq32019.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, 2019
 
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, 2019, RGC Resources, Inc. issued a press release announcing the results for the third quarter ending June 30, 2019. 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 1, 2019
 
 
 
By:
 
/s/ Paul W. Nester
 
 
 
 
 
 
 
Paul W. Nester
 
 
 
 
Vice President, Secretary, Treasurer and CFO



 EX-99.1 2 exhibit991q32019.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
Release Date:
  
July 31, 2019
Contact:
  
Paul W. Nester
 
  
Vice President and CFO
Telephone:
  
540-777-3837


RGC RESOURCES, INC. REPORTS
THIRD QUARTER EARNINGS


ROANOKE, Va. (July 31, 2019)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,138,555 or $0.14 per share for the quarter ended June 30, 2019. This compares to earnings of $1,087,355 or $0.14 per share for the quarter ended June 30, 2018. CEO John D'Orazio stated, "We continue to see earnings growth from improved utility margins associated with the company's infrastructure replacement programs, implementation of the new non-gas rates, customer growth, and the investment in the Mountain Valley Pipeline."

Earnings for the twelve months ending June 30, 2019 were $8,927,266 or $1.11 per share compared to $0.91 per share for the twelve months ended June 30, 2018. D’Orazio attributed the increase in trailing twelve-month earnings per share primarily to improved utility margins associated with infrastructure replacement programs, implementation of the new non-gas rates, customer growth, 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 June 30, 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 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,
 
 
2019
 
2018
 
2019
 
2018
Revenues
 
$
11,682,950

 
$
11,889,570

 
$
68,145,798

 
$
65,736,042

Operating expenses
 
10,045,893

 
10,053,980

 
56,326,695

 
54,081,653

Operating income
 
1,637,057

 
1,835,590

 
11,819,103

 
11,654,389

Equity in earnings of MVP
 
777,193

 
245,075

 
2,391,549

 
717,254

Other income (expense), net
 
(5,967
)
 
36,857

 
393,190

 
(147,723
)
Interest expense
 
925,698

 
583,592

 
3,267,271

 
2,346,376

Income before income taxes
 
1,482,585

 
1,533,930

 
11,336,571

 
9,877,544

Income tax expense
 
344,030

 
446,575

 
2,409,305

 
3,104,912

Net income
 
$
1,138,555

 
$
1,087,355

 
$
8,927,266

 
$
6,772,632

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.14

 
$
0.14

 
$
1.11

 
$
0.91

Diluted
 
$
0.14

 
$
0.14

 
$
1.11

 
$
0.90

Cash dividends per common share
 
$
0.1650

 
$
0.1550

 
$
0.6500

 
$
0.6100

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
8,051,944

 
7,982,354

 
8,019,728

 
7,459,005

Diluted
 
8,088,270

 
8,031,052

 
8,063,073

 
7,505,921


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
June 30,
Assets
 
2019
 
2018
Current assets
 
$
13,256,420

 
$
13,143,064

Total property, plant and equipment, net
 
177,816,330

 
161,105,263

Other assets
 
53,350,288

 
34,507,400

Total Assets
 
$
244,423,038

 
$
208,755,727

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
23,546,484

 
$
24,554,669

Long-term debt, net
 
90,470,806

 
57,054,224

Deferred credits and other liabilities
 
45,668,813

 
47,716,465

Total Liabilities
 
159,686,103

 
129,325,358

Stockholders’ Equity
 
84,736,935

 
79,430,369

Total Liabilities and Stockholders’ Equity
 
$
244,423,038

 
$
208,755,727