RGC Resources, Inc. Third Quarter Financial Results

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| Source: RGC Resources, Inc.

ROANOKE, Va., July 31, 2014 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $283,194 or $0.06 per average share outstanding for the quarter ended June 30, 2014. This compares to consolidated earnings of $110,103 or $0.02 per average share outstanding for the quarter ended June 30, 2013. CFO Paul Nester attributed the increase in earnings to improved utility margins from higher sales volumes.

Earnings for the twelve months ending June 30, 2014 were $4,751,866 or $1.01 per share compared to $0.91 per share for the twelve months ended June 30, 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.

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 Twelve Months Ended
  June 30, June 30,
  2014 2013 2014 2013
         
Revenues  $ 12,024,817  $ 11,037,308  $ 73,982,104  $ 63,290,080
Cost of sales  6,303,266  5,808,281  45,044,782  35,829,273
Gross margin  5,721,551  5,229,027  28,937,322  27,460,807
Other operating expenses, net  4,802,903  4,594,868  19,375,024  18,707,954
Interest expense  456,761  456,103  1,834,553  1,829,280
Income before income taxes  461,887  178,056  7,727,745  6,923,573
Income tax expense  178,693  67,953  2,975,879  2,634,382
         
Net income  $ 283,194  $ 110,103  $ 4,751,866  $ 4,289,191
         
Net earnings per share of common stock:        
Basic  $ 0.06  $ 0.02  $ 1.01  $ 0.91
Diluted  $ 0.06  $ 0.02  $ 1.01  $ 0.91
         
Cash dividends per common share  $ 0.185  $ 0.180  $ 0.735  $ 1.715
         
Weighted average number of common shares outstanding:        
Basic 4,718,068 4,706,721  4,712,665  4,688,074
Diluted 4,718,898 4,708,320  4,712,952  4,688,252
         
         
         
Condensed Consolidated Balance Sheets  
(Unaudited)  
         
    June 30,  
Assets   2014 2013  
Current assets    $ 16,840,735  $ 27,576,118  
Total property, plant and equipment, net    105,428,322  95,076,542  
Other assets    4,581,000  8,587,436  
         
Total Assets    $ 126,850,057  $ 131,240,096  
         
Liabilities and Stockholders' Equity        
Current liabilities    $ 12,796,377  $ 31,032,697  
Long-term debt    28,000,000  13,000,000  
Deferred credits and other liabilities    33,641,698  38,042,635  
Total Liabilities    74,438,075  82,075,332  
Stockholders' Equity    52,411,982  49,164,764  
         
Total Liabilities and Stockholders' Equity    $ 126,850,057  $ 131,240,096  
         
Paul W. Nester
Vice President and CFO
Telephone: 540-777-3837