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