ROANOKE, Va., May 6, 2014 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,846,795 or $0.60 per average share outstanding for the quarter ended March 31, 2014. This compares to consolidated earnings of $2,698,707 or $0.57 per average share outstanding for the quarter ended March 31, 2013. CFO Paul Nester attributed the increase in earnings to improved utility margins from space heating sales volumes as a result of a cooler winter season.
Earnings for the twelve months ending March 31, 2014 were $4,578,775 or $0.97 per share compared to $0.91 per share for the twelve months ended March 31, 2013. Nester attributed the higher year-over-year earnings primarily to improved utility margins from higher sales volumes.
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.
Net income for the three months ended March 31, 2014 are not indicative of the results to be expected for the fiscal year ending September 30, 2014 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 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, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenues | $ 32,699,965 | $ 24,175,638 | $ 72,994,595 | $ 61,932,514 |
| Cost of sales | 22,538,840 | 14,589,911 | 44,549,797 | 34,725,356 |
| Gross margin | 10,161,125 | 9,585,727 | 28,444,798 | 27,207,158 |
| Other operating expenses, net | 5,085,859 | 4,772,954 | 19,166,989 | 18,540,948 |
| Interest expense | 455,657 | 454,853 | 1,833,895 | 1,829,490 |
| Income before income taxes | 4,619,609 | 4,357,920 | 7,443,914 | 6,836,720 |
| Income tax expense | 1,772,814 | 1,659,213 | 2,865,139 | 2,605,334 |
| Net income | $ 2,846,795 | $ 2,698,707 | $ 4,578,775 | $ 4,231,386 |
| Net earnings per share of common stock: | ||||
| Basic | $ 0.60 | $ 0.57 | $ 0.97 | $ 0.91 |
| Diluted | $ 0.60 | $ 0.57 | $ 0.97 | $ 0.90 |
| Cash dividends per common share | $ 0.185 | $ 0.180 | $ 0.730 | $ 1.710 |
| Weighted average number of common shares outstanding: | ||||
| Basic | 4,713,567 | 4,701,866 | 4,709,836 | 4,675,007 |
| Diluted | 4,713,983 | 4,701,866 | 4,711,348 | 4,675,834 |
| Condensed Consolidated Balance Sheets | ||
| (Unaudited) | ||
| March 31, | ||
| Assets | 2014 | 2013 |
| Current assets | $ 24,084,243 | $ 34,247,587 |
| Total property, plant and equipment, net | 102,847,991 | 93,418,946 |
| Other assets | 4,510,842 | 8,628,729 |
| Total Assets | $ 131,443,076 | $ 136,295,262 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | $ 33,875,514 | $ 36,162,654 |
| Long-term debt | 11,400,000 | 13,000,000 |
| Deferred credits and other liabilities | 33,364,737 | 37,571,637 |
| Total Liabilities | 78,640,251 | 86,734,291 |
| Stockholders' Equity | 52,802,825 | 49,560,971 |
| Total Liabilities and Stockholders' Equity | $ 131,443,076 | $ 136,295,262 |