RGC Resources, Inc. Reports Third Quarter Earnings

Roanoke, Virginia, UNITED STATES


ROANOKE, Va., Aug. 04, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $610,840 or $0.07 per diluted share for the quarter ended June 30, 2021. This compares to consolidated earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 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 significantly lower non-cash MVP equity in earnings.”

Earnings for the twelve months ending June 30, 2021 were $9,772,285 or $1.19 per diluted share outstanding compared to $11,349,435 or $1.40 per diluted share for the twelve months ended June 30, 2020. Nester attributed the earnings decline in trailing twelve-month net income to lower non-cash MVP equity in earnings, COVID-19 related bad debt expense, and one time maintenance investments in the fourth quarter of fiscal 2020.

RGC Resources, Inc. provides energy and related products and services through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.

Net income for the three months ended June 30, 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 fiscal 2021 is expected to be lower than 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, and research and development activities. 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,
   2021   2020   2021   2020 
         
Operating revenues $14,048,846  $11,071,918  $71,599,814  $63,146,971 
Operating expenses  12,506,513   9,736,255   58,275,744   49,239,011 
Operating income  1,542,333   1,335,663   13,324,070   13,907,960 
Equity in earnings of unconsolidated affiliate  133,864   1,205,574   2,813,371   4,470,184 
Other income, net  130,186   52,556   855,965   638,345 
Interest expense  1,000,238   986,203   4,017,308   4,093,103 
Income before income taxes  806,145   1,607,590   12,976,098   14,923,386 
Income tax expense  195,305   401,012   3,203,813   3,573,951 
         
Net income $610,840  $1,206,578  $9,772,285  $11,349,435 
         
Net earnings per share of common stock:        
Basic $0.07  $0.15  $1.19  $1.40 
Diluted $0.07  $0.15  $1.19  $1.40 
         
Cash dividends per common share $0.185  $0.175  $0.730  $0.690 
         
Weighted average number of common shares outstanding:          
Basic  8,260,579   8,143,887   8,200,295   8,104,298 
Diluted  8,273,203   8,159,324   8,213,716   8,129,737 
         
         
Condensed Consolidated Balance Sheets  
(Unaudited)  
         
    June 30,  
Assets    2021   2020   
Current assets   $14,862,881  $12,545,512   
Utility plant, net    207,993,519   194,049,965   
Other assets    74,005,332   66,745,281   
         
Total Assets   $296,861,732  $273,340,758   
         
Liabilities and Stockholders' Equity        
Current liabilities   $21,605,817  $15,070,172   
Long-term debt, net    123,151,387   116,346,967   
Deferred credits and other liabilities    53,265,790   51,672,467   
Total Liabilities    198,022,994   183,089,606   
Stockholders' Equity    98,838,738   90,251,152   
         
Total Liabilities and Stockholders' Equity   $296,861,732  $273,340,758   

 

Contact:Paul W. Nester
 President and CEO
Telephone:540-777-3837