ROANOKE, Va., Nov. 24, 2008 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $4,221,134 or $1.91 per average diluted share outstanding for the fiscal year ended September 30, 2008. This compares to consolidated earnings of $3,806,209 or $1.75 per average diluted share outstanding for the year ended September 30, 2007, and reflects an earnings per share increase of 9 percent. President, Chairman and CEO John Williamson attributed the improvement in earnings to improvement in gross margins and expense control.
Net loss for the three months ended September 30, 2008 was ($78,171) or ($0.04) per average diluted share outstanding compared to a loss of ($248,944) or ($0.12) per average share outstanding for the quarter ended September 30, 2007. The majority of the Company's sales occur in the winter months and as a result, the Company's third and fourth quarters normally reflect earnings losses. Williamson attributed the lower loss in the fourth quarter of this year primarily to improved gross margins.
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 fourth quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
2008 2007 2008 2007
------------------------ ------------------------
Revenues $ 9,178,906 $10,780,169 $94,636,826 $89,901,301
Cost of sales 4,342,349 6,289,221 68,723,214 64,679,525
----------- ----------- ----------- -----------
Gross Margin 4,836,557 4,490,948 25,913,612 25,221,776
Other operating
expenses 4,535,390 4,525,169 17,040,964 17,288,255
Interest expense 459,815 465,920 2,033,082 1,931,444
----------- ----------- ----------- -----------
Income (loss) from
continuing
operations before
income taxes (158,648) (500,141) 6,839,566 6,002,077
Income tax expense
(benefit) from
continuing
operations (80,477) (231,602) 2,581,742 2,236,408
----------- ----------- ----------- -----------
Income (loss) from
continuing
operations (78,171) (268,539) 4,257,824 3,765,669
Income (loss) from
discontinued
operations, net of
income taxes -- 19,595 (36,690) 40,540
----------- ----------- ----------- -----------
Net income (loss) $ (78,171) $ (248,944) $ 4,221,134 $ 3,806,209
=========== =========== =========== ===========
Basic earnings per
share of common
stock:
Income (loss) from
continuing
operations $ (0.04) $ (0.13) $ 1.94 $ 1.74
Discontinued
operations -- 0.01 (0.02) 0.02
----------- ----------- ----------- -----------
Net income (loss) $ (0.04) $ (0.12) $ 1.92 $ 1.76
=========== =========== =========== ===========
Diluted earnings
per share of
common stock:
Income (loss) from
continuing
operations $ (0.04) $ (0.13) $ 1.93 $ 1.73
Discontinued
operations -- 0.01 (0.02) 0.02
----------- ----------- ----------- -----------
Net income (loss) $ (0.04) $ (0.12) $ 1.91 $ 1.75
=========== =========== =========== ===========
Cash dividends
declared per
common share $ 0.3125 $ 0.3050 $ 1.2500 $ 1.2200
=========== =========== =========== ===========
Weighted average
number of common
shares
outstanding:
Basic 2,201,263 2,162,803
Diluted 2,211,226 2,173,258
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
Assets 2008 2007
------------ ------------
Current assets $ 38,411,852 $ 41,460,539
Total property, plant and equipment, net 75,608,072 72,587,269
Other assets 4,107,790 2,284,647
------------ ------------
Total Assets $118,127,714 $116,332,455
============ ============
Liabilities and Stockholders' Equity
Current liabilities $ 31,615,687 $ 32,999,174
Long-term debt 23,000,000 23,000,000
Deferred credits and other liabilities 19,788,969 17,968,048
------------ ------------
Total Liabilities 74,404,656 73,967,222
Stockholders' Equity 43,723,058 42,365,233
------------ ------------
Total Liabilities and Stockholders'
Equity $118,127,714 $116,332,455
============ ============