EX-99.1 2 exhibit991q42019.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
 
 
 
Release Date:
  
November 15, 2019
Contact:
  
John S. D'Orazio
 
  
President and CEO
Telephone:
  
540-777-3815

RGC RESOURCES, INC.
REPORTS RECORD EARNINGS

ROANOKE, Va. (November 15, 2019)--RGC Resources, Inc. (NASDAQ: RGCO) announced record consolidated Company earnings of $8,698,412 or $1.08 per share for the fiscal year ended September 30, 2019. This compares to earnings of $7,297,205 or $0.95 per share for the year ended September 30, 2018. CEO John D’Orazio stated, “I am pleased to announce our fifth consecutive year of record earnings. The increase in 2019 earnings is attributable to improved utility margins associated with our infrastructure replacement programs, implementation of new non-gas rates, customer growth, and our ongoing investment in the Mountain Valley Pipeline (MVP).” D’Orazio further commented, “We continue to execute on the key strategies propelling our earnings growth: (1) growth in our regulated natural gas business through investments in infrastructure replacements and expansion; and (2) investments in midstream projects such as the MVP and the Southgate. Diversification opportunities to expand and grow the company are a strategic focus of our management team. We are excited about the future and increasing shareholder value.”

Earnings for the quarter ending September 30, 2019 were $455,605 or $0.06 per share compared to $684,459 or $0.09 per share for the quarter ended September 30, 2018. D’Orazio attributed the decrease to prior year tax reform adjustments.

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. Past performance is not necessarily a predictor of future results.

Summary financial statements for the fourth quarter and twelve months are as follows:





RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
Three Months Ended
September 30,
 
Twelve Months Ended
September 30,
 
 
2019
 
2018
 
2019
 
2018
Revenues
 
$
9,851,869

 
$
9,971,142

 
$
68,026,525

 
$
65,534,736

Operating expenses
 
9,361,167

 
9,256,801

 
56,431,061

 
54,064,229

Operating income
 
490,702

 
714,341

 
11,595,464

 
11,470,507

Equity in earnings of MVP
 
981,931

 
353,132

 
3,020,348

 
938,531

Other income (expense), net
 
110,254

 
151,562

 
351,882

 
244,868

Interest expense
 
983,422

 
632,142

 
3,618,551

 
2,461,565

Income before income taxes
 
599,465

 
586,893

 
11,349,143

 
10,192,341

Income tax expense (benefit)
 
143,860

 
(97,566
)
 
2,650,731

 
2,895,136

Net income
 
$
455,605

 
$
684,459

 
$
8,698,412

 
$
7,297,205

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.06

 
$
0.09

 
$
1.08

 
$
0.95

Diluted
 
$
0.06

 
$
0.09

 
$
1.08

 
$
0.95

Cash dividends per common share
 
$
0.165

 
$
0.155

 
$
0.660

 
$
0.620

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
8,069,934

 
7,991,553

 
8,039,484

 
7,649,025

Diluted
 
8,102,334

 
8,039,259

 
8,078,950

 
7,695,712


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
September 30,
Assets
 
2019
 
2018
Current assets
 
$
16,385,192

 
$
15,544,602

Total property, plant and equipment, net
 
182,002,956

 
165,963,628

Other assets
 
59,965,548

 
38,051,876

Total Assets
 
$
258,353,696

 
$
219,560,106

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
21,633,064

 
$
24,091,849

Long-term debt, net of unamortized debt issuance costs
 
103,371,358

 
70,321,936

Deferred credits and other liabilities
 
50,252,882

 
45,563,209

Total Liabilities
 
175,257,304

 
139,976,994

Stockholders’ Equity
 
83,096,392

 
79,583,112

Total Liabilities and Stockholders’ Equity
 
$
258,353,696

 
$
219,560,106