ROANOKE, Va., May 4, 2011 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,519,814 or $1.10 per average share outstanding for the quarter ended March 31, 2011. This compares to consolidated earnings of $2,753,018 or $1.22 per average share outstanding for the quarter ended March 31, 2010. President, Chairman and CEO John Williamson attributed the decrease in earnings to a reduction in gross margin from lower space heating sales volumes as a result of a warmer winter season and modest increases in operating expense.
Earnings for the twelve months ending March 31, 2011 were $4,351,316 or $1.91 per share compared to $2.17 per share for the twelve months ended March 31, 2010. Williamson attributed the lower year-over-year earnings primarily to three percent warmer weather affecting heating season sales in the current period combined with the earnings effect in the earlier period of a one-time credit to depreciation expense associated with implementing updated plant depreciation rates in the September 30, 2009 quarter end.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company and RGC Ventures of Virginia, Inc.
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.
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 | Twelve Months Ended | |||
| March 31, | March 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| Revenues | $ 27,072,569 | $ 31,640,321 | $ 68,651,011 | $ 74,232,007 |
| Cost of sales | 17,871,203 | 22,271,228 | 41,941,900 | 47,422,347 |
| Gross margin | 9,201,366 | 9,369,093 | 26,709,111 | 26,809,660 |
| Other operating expenses, net | 4,680,406 | 4,474,488 | 17,890,175 | 17,127,911 |
| Interest expense | 456,285 | 455,871 | 1,832,991 | 1,844,644 |
| Income before income taxes | 4,064,675 | 4,438,734 | 6,985,945 | 7,837,105 |
| Income tax expense | 1,544,861 | 1,685,716 | 2,634,629 | 2,977,649 |
| Net income | $ 2,519,814 | $ 2,753,018 | $ 4,351,316 | $ 4,859,456 |
| Net earnings per share of common stock: | ||||
| Basic | $ 1.10 | $ 1.22 | $ 1.91 | $ 2.17 |
| Diluted | $ 1.10 | $ 1.22 | $ 1.91 | $ 2.16 |
| Cash dividends per common share | $ 0.340 | $ 0.330 | $ 1.340 | $ 1.300 |
| Weighted average number of common shares outstanding: | ||||
| Basic | 2,292,015 | 2,251,922 | 2,276,545 | 2,239,383 |
| Diluted | 2,296,333 | 2,259,641 | 2,282,011 | 2,246,940 |
| Condensed Consolidated Balance Sheets | ||||
| (Unaudited) | ||||
| March 31, | ||||
| Assets | 2011 | 2010 | ||
| Current assets | $ 38,460,809 | $ 36,457,949 | ||
| Total property, plant and equipment, net | 82,930,920 | 80,178,014 | ||
| Other assets | 7,444,689 | 5,960,741 | ||
| Total Assets | $ 128,836,418 | $ 122,596,704 | ||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities | $ 35,170,572 | $ 35,676,987 | ||
| Long-term debt | 13,000,000 | 13,000,000 | ||
| Deferred credits and other liabilities | 30,036,398 | 25,327,599 | ||
| Total Liabilities | 78,206,970 | 74,004,586 | ||
| Stockholders' Equity | 50,629,448 | 48,592,118 | ||
| Total Liabilities and Stockholders' Equity | $ 128,836,418 | $ 122,596,704 | ||