ROANOKE, Va., Aug. 03, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. This compares to consolidated earnings of $1,138,555 or $0.14 per diluted share for the quarter ended June 30, 2019. CEO Paul Nester stated, “We experienced earnings growth driven primarily by improved utility margins, net of prior year rate case estimates, and the investment in the Mountain Valley Pipeline (MVP).”
Earnings for the twelve months ended June 30, 2020 were $11,349,435 or $1.40 per diluted share outstanding compared to $8,927,266 or $1.11 per diluted share for the twelve months ended June 30, 2019. Nester attributed the significant increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, implementation of the new non-gas rates, and the investment in the MVP.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.
Net income for the three months ended June 30, 2020 is not indicative of the results to be expected for the fiscal year ending September 30, 2020 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. Additionally, the COVID-19 pandemic creates significant economic uncertainty for the remainder of fiscal 2020.
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.
Past performance is not necessarily a predictor of future results.
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, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Operating revenues | $ | 11,071,918 | $ | 11,682,950 | $ | 63,146,971 | $ | 68,145,798 | ||||
| Operating expenses | 9,736,255 | 10,045,893 | 49,239,011 | 56,326,695 | ||||||||
| Operating income | 1,335,663 | 1,637,057 | 13,907,960 | 11,819,103 | ||||||||
| Equity in earnings of unconsolidated affiliate | 1,205,574 | 777,193 | 4,470,184 | 2,391,549 | ||||||||
| Other income (expense), net | 52,556 | (5,967 | ) | 638,345 | 393,190 | |||||||
| Interest expense | 986,203 | 925,698 | 4,093,103 | 3,267,271 | ||||||||
| Income before income taxes | 1,607,590 | 1,482,585 | 14,923,386 | 11,336,571 | ||||||||
| Income tax expense | 401,012 | 344,030 | 3,573,951 | 2,409,305 | ||||||||
| Net income | $ | 1,206,578 | $ | 1,138,555 | $ | 11,349,435 | $ | 8,927,266 | ||||
| Net earnings per share of common stock: | ||||||||||||
| Basic | $ | 0.15 | $ | 0.14 | $ | 1.40 | $ | 1.11 | ||||
| Diluted | $ | 0.15 | $ | 0.14 | $ | 1.40 | $ | 1.11 | ||||
| Cash dividends per common share | $ | 0.175 | $ | 0.165 | $ | 0.690 | $ | 0.650 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 8,143,887 | 8,051,944 | 8,104,298 | 8,019,728 | ||||||||
| Diluted | 8,159,324 | 8,088,270 | 8,129,737 | 8,063,073 | ||||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| June 30, | |||||||
| Assets | 2020 | 2019 | |||||
| Current assets | $ | 12,545,512 | $ | 13,256,420 | |||
| Total utility plant, net | 194,049,965 | 177,816,330 | |||||
| Other assets | 66,745,281 | 53,350,288 | |||||
| Total Assets | $ | 273,340,758 | $ | 244,423,038 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | $ | 15,070,172 | $ | 23,546,484 | |||
| Long-term debt, net | 116,346,967 | 90,470,806 | |||||
| Deferred credits and other liabilities | 51,672,467 | 45,668,813 | |||||
| Total Liabilities | 183,089,606 | 159,686,103 | |||||
| Stockholders' Equity | 90,251,152 | 84,736,935 | |||||
| Total Liabilities and Stockholders' Equity | $ | 273,340,758 | $ | 244,423,038 | |||
| Contact: | Randall P. Burton, II Vice President and CFO | |
| Telephone: | 540-777-3997 | |