RGC Resources, Inc. Reports 2021 Earnings

Roanoke, Virginia, UNITED STATES


ROANOKE, Va., Nov. 15, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $10,102,062 or $1.22 per share for the fiscal year ended September 30, 2021. This compares to earnings of $10,564,534 or $1.30 per share for the year ended September 30, 2020. CEO Paul Nester stated, “Our 2021 earnings reflect improved utility margins associated with our infrastructure replacement programs, customer growth and reduced operating and maintenance expenses. Operating and maintenance expenses, net of gas costs, declined $1.7 million or 10.5% due to the accelerated recovery of certain regulatory assets and one-time maintenance investments incurred in 2020 as well as much lower bad debt expense in 2021. The overall earnings decline was primarily attributable to significantly lower non-cash Mountain Valley Pipeline earnings.”

Fourth quarter results, particularly bad debt expense, were favorably impacted by the $859,000 of American Rescue Plan Act (“ARPA”) funds earmarked for customers with arrearage balances and scheduled for receipt in the first quarter of fiscal 2022. Accordingly, the Company broke even for the quarter ending September 30, 2021 compared to a net loss of $329,296, or $0.04 per share, for the quarter ended September 30, 2020.

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.

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 fourth quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
         
  Three Months Ended Twelve Months Ended
  September 30, September 30,
   2021   2020   2021  2020
         
Operating revenues $13,355,254  $9,780,289  $75,174,779 $63,075,391
Operating expenses  12,800,091   10,679,365   60,396,470  50,557,209
Operating income (loss)  555,163   (899,076)  14,778,309  12,518,182
Equity in earnings of unconsolidated affiliate  180,804   1,326,621   1,667,554  4,814,874
Other income, net  164,386   108,205   912,146  636,296
Interest expense  1,024,054   989,477   4,051,885  4,099,158
Income (loss) before income taxes  (123,701)  (453,727)  13,306,124  13,870,194
Income tax expense (benefit)  (124,182)  (124,431)  3,204,062  3,305,660
         
Net income (loss) $481  $(329,296) $10,102,062 $10,564,534
         
Net earnings (loss) per share of common stock:        
Basic $-  $(0.04) $1.22 $1.30
Diluted $-  $(0.04) $1.22 $1.30
         
Cash dividends per common share$0.185  $0.175  $0.740 $0.700
         
Weighted average number of common shares outstanding:      
Basic  8,360,369   8,156,023   8,251,802  8,125,938
Diluted  8,372,920   8,156,023   8,264,904  8,146,666
         
         
         
Condensed Consolidated Balance Sheets  
(Unaudited)  
         
    September 30,  
Assets    2021   2020  
Current assets   $25,143,855  $14,436,561  
Utility plant, net    211,649,684   198,445,093  
Other assets    73,315,654   68,797,853  
         
Total Assets   $310,109,193  $281,679,507  
         
Liabilities and Stockholders' Equity       
Current liabilities   $26,013,532  $16,570,742  
Long-term debt, net    133,471,427   123,819,631  
Deferred credits and other liabilities   50,922,525   52,401,157  
Total Liabilities    210,407,484   192,791,530  
Stockholders' Equity    99,701,709   88,887,977  
         
Total Liabilities and Stockholders' Equity  $310,109,193  $281,679,507  
         
         
         



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