ROANOKE, Va., Nov. 22, 2011 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $4,653,473 or $1.01 per average share outstanding for the fiscal year ended September 30, 2011. This compares to consolidated earnings of $4,445,436 or $0.98 per average share outstanding for the year ended September 30, 2010. President, Chairman and CEO John Williamson attributed the improvement in earnings to increased natural gas deliveries to industrial customers and a rate increase implemented early in the year.
The Company had a net loss of $20,322 or less than one half cent per average share outstanding compared to a loss of $151,328 or $0.03 per average share outstanding for the corresponding quarter ended September 30, 2010. 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 minor net losses. Williamson attributed the improvement in the current quarter to higher sales to industrial customers and a rate increase.
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 | |||||
| (Unaudited) | |||||
|
Three Months Ended September 30, |
Twelve Months Ended September 30, |
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| 2011 | 2010 | 2011 | 2010 | ||
| Revenues | $ 10,071,058 | $ 8,696,382 | $ 70,798,871 | $ 73,823,914 | |
| Cost of sales | 5,297,409 | 4,129,510 | 43,529,305 | 47,383,641 | |
| Gross margin | 4,773,649 | 4,566,872 | 27,269,566 | 26,440,273 | |
| Other operating expenses, net | 4,352,402 | 4,380,251 | 17,936,270 | 17,468,545 | |
| Interest expense | 457,930 | 458,972 | 1,832,712 | 1,835,291 | |
| Income (loss) before income taxes | (36,683) | (272,351) | 7,500,584 | 7,136,437 | |
| Income tax expense (benefit) | (16,361) | (121,023) | 2,847,111 | 2,691,001 | |
| Net income (loss) | $ (20,322) | $ (151,328) | $ 4,653,473 | $ 4,445,436 | |
| Net earnings per share of common stock: | |||||
| Basic | $ (0.00) | $ (0.03) | $ 1.01 | $ 0.98 | |
| Diluted | $ (0.00) | $ (0.03) | $ 1.01 | $ 0.98 | |
| Cash dividends per common share | $ 0.170 | $ 0.165 | $ 0.680 | $ 0.660 | |
| Weighted average number of common shares outstanding: | |||||
| Basic | 4,621,919 | 4,542,062 | 4,592,713 | 4,514,262 | |
| Diluted | 4,621,919 | 4,542,062 | 4,600,792 | 4,528,160 | |
| Note: Share and per share data have been adjusted for prior periods to reflect the two-for-one stock split. | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Unaudited) | |||||
| September 30, | |||||
| Assets | 2011 | 2010 | |||
| Current assets | $ 31,004,245 | $ 31,654,990 | |||
| Total property, plant and equipment, net | 85,722,456 | 81,455,391 | |||
| Other assets | 8,822,348 | 7,572,935 | |||
| Total Assets | $125,549,049 | $120,683,316 | |||
| Liabilities and Stockholders' Equity | |||||
| Current liabilities | $ 31,027,444 | $ 17,854,008 | |||
| Long-term debt | 13,000,000 | 28,000,000 | |||
| Deferred credits and other liabilities | 32,735,827 | 28,519,561 | |||
| Total Liabilities | 76,763,271 | 74,373,569 | |||
| Stockholders' Equity | 48,785,778 | 46,309,747 | |||
| Total Liabilities and Stockholders' Equity | $125,549,049 | $120,683,316 | |||