ROANOKE, Va., May 10, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,767,478 or $0.58 per share for the quarter ended March 31, 2021. This compares to consolidated earnings of $5,680,316 or $0.70 per share for the quarter ended March 31, 2020. CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs. The overall earnings decline was primarily attributable to the cessation of the non-cash MVP AFUDC beginning January 1, 2021.”
Earnings for the twelve months ending March 31, 2021 were $10,368,023 or $1.27 per share outstanding compared to $11,281,412 or $1.40 per share for the twelve months ended March 31, 2020. Nester attributed the earnings decline to rate case final order adjustments in the first half of fiscal 2020, one-time maintenance investments and COVID-19 related bad-debt expense in the fourth quarter of fiscal 2020 as well as the non-cash MVP AFUDC change in the second quarter of fiscal 2021.
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 March 31, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2021 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. Net income for the remainder of fiscal 2021 is expected to be lower than the corresponding period in 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 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, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Operating revenues | $ | 28,253,662 | $ | 22,437,731 | $ | 68,622,886 | $ | 63,758,003 | |||||
| Operating expenses | 21,154,236 | 15,438,115 | 55,505,486 | 49,548,649 | |||||||||
| Operating income | 7,099,426 | 6,999,616 | 13,117,400 | 14,209,354 | |||||||||
| Equity in earnings (loss) of unconsolidated affiliate | (3,797 | ) | 1,188,593 | 3,885,081 | 4,041,803 | ||||||||
| Other income, net | 287,548 | 317,892 | 778,335 | 579,822 | |||||||||
| Interest expense | 1,007,764 | 1,038,293 | 4,003,273 | 4,032,598 | |||||||||
| Income before income taxes | 6,375,413 | 7,467,808 | 13,777,543 | 14,798,381 | |||||||||
| Income tax expense | 1,607,935 | 1,787,492 | 3,409,520 | 3,516,969 | |||||||||
| Net income | $ | 4,767,478 | $ | 5,680,316 | $ | 10,368,023 | $ | 11,281,412 | |||||
| Net earnings per share of common stock: | |||||||||||||
| Basic | $ | 0.58 | $ | 0.70 | $ | 1.27 | $ | 1.40 | |||||
| Diluted | $ | 0.58 | $ | 0.70 | $ | 1.27 | $ | 1.39 | |||||
| Cash dividends per common share | $ | 0.185 | $ | 0.175 | $ | 0.720 | $ | 0.680 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 8,217,822 | 8,122,157 | 8,171,202 | 8,081,438 | |||||||||
| Diluted | 8,230,650 | 8,144,963 | 8,185,332 | 8,112,308 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| March 31, | |||||||||||||
| Assets | 2021 | 2020 | |||||||||||
| Current assets | $ | 16,563,212 | $ | 16,603,503 | |||||||||
| Utility plant, net | 203,698,440 | 189,667,211 | |||||||||||
| Other assets | 71,902,386 | 64,317,462 | |||||||||||
| Total Assets | $ | 292,164,038 | $ | 270,588,176 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities | $ | 20,775,066 | $ | 17,172,195 | |||||||||
| Long-term debt, net | 120,770,429 | 112,231,649 | |||||||||||
| Deferred credits and other liabilities | 53,043,935 | 50,866,985 | |||||||||||
| Total Liabilities | 194,589,430 | 180,270,829 | |||||||||||
| Stockholders' Equity | 97,574,608 | 90,317,347 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 292,164,038 | $ | 270,588,176 | |||||||||
| Contact: | Paul W. Nester | |
| President and CEO | ||
| Telephone: | 540-777-3837 |