EX-99.1 2 exhibit991q1earningsreleas.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
Release Date:
  
February 3, 2020
Contact:
  
Paul W. Nester
 
  
Vice President and CFO
Telephone:
  
540-777-3837


RGC RESOURCES, INC. REPORTS
FIRST QUARTER EARNINGS

ROANOKE, Va. (February 3, 2020)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,006,936 or $0.49 per diluted share for the quarter ended December 31, 2019. This compares to consolidated earnings of $2,434,162 or $0.30 per diluted share for the quarter ended December 31, 2018. CEO John D’Orazio stated, “We continue to see earnings growth from improved utility margins associated with the Company’s non-gas rates, infrastructure replacement programs and customer growth as well as the investment in Mountain Valley Pipeline.”

Earnings for the twelve months ending December 31, 2019 were $10,271,186 or $1.27 per diluted share compared to $7,671,905 or $0.97 per diluted share for the twelve months ended December 31, 2018. D’Orazio attributed the significant increase in trailing twelve-month net income 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 December 31, 2019 is not indicative of the results to be expected for the fiscal year ending September 30, 2020 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 first quarter and twelve months are as follows:

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RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
Three months ended December 31,
 
Twelve months ended December 31,
 
 
2019
 
2018
 
2019
 
2018
Revenues
 
$
19,785,453

 
$
21,216,747

 
$
66,595,231

 
$
67,995,432

Operating expenses
 
14,703,474

 
17,952,525

 
53,182,010

 
56,905,194

Operating income
 
5,081,979

 
3,264,222

 
13,413,221

 
11,090,238

Equity in earnings of MVP
 
1,094,086

 
563,049

 
3,551,385

 
1,352,769

Other income, net
 
157,643

 
125,886

 
383,639

 
356,253

Interest expense
 
1,085,185

 
816,782

 
3,886,954

 
2,665,702

Income before income taxes
 
5,248,523

 
3,136,375

 
13,461,291

 
10,133,558

Income tax expense
 
1,241,587

 
702,213

 
3,190,105

 
2,461,653

Net income
 
$
4,006,936

 
$
2,434,162

 
$
10,271,186

 
$
7,671,905

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.50

 
$
0.30

 
$
1.27

 
$
0.98

Diluted
 
$
0.49

 
$
0.30

 
$
1.27

 
$
0.97

Cash dividends per common share
 
$
0.1750

 
$
0.1650

 
$
0.6700

 
$
0.6300

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
8,081,837

 
8,003,736

 
8,059,170

 
7,839,488

Diluted
 
8,113,785

 
8,051,997

 
8,094,616

 
7,886,296


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
December 31,
Assets
 
2019
 
2018
Current assets
 
$
21,239,364

 
$
22,329,735

Total property, plant and equipment, net
 
185,391,008

 
170,032,053

Other assets
 
61,552,241

 
42,341,003

Total Assets
 
$
268,182,613

 
$
234,702,791

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
17,503,920

 
$
19,416,078

Long-term debt, net
 
113,772,779

 
89,119,411

Deferred credits and other liabilities
 
50,546,779

 
45,207,562

Total Liabilities
 
181,823,478

 
153,743,051

Stockholders’ Equity
 
86,359,135

 
80,959,740

Total Liabilities and Stockholders’ Equity
 
$
268,182,613

 
$
234,702,791