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8-K - 8-K - RGC RESOURCES INCa2020q3earningsrelease.htm

Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
Release Date:  August 3, 2020
Contact:  Randall P. Burton, II
  Vice President and CFO
Telephone:  540-777-3997

RGC RESOURCES, INC. REPORTS
THIRD QUARTER EARNINGS


ROANOKE, Va. (August 3, 2020)--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 June 30,Twelve months ended June 30,
 2020201920202019
Operating revenues$11,071,918  $11,682,950  $63,146,971  $68,145,798  
Operating expenses9,736,255  10,045,893  49,239,011  56,326,695  
Operating income1,335,663  1,637,057  13,907,960  11,819,103  
Equity in earnings of unconsolidated affiliate1,205,574  777,193  4,470,184  2,391,549  
Other income (expense), net52,556  (5,967) 638,345  393,190  
Interest expense986,203  925,698  4,093,103  3,267,271  
Income before income taxes1,607,590  1,482,585  14,923,386  11,336,571  
Income tax expense401,012  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:
Basic8,143,887  8,051,944  8,104,298  8,019,728  
Diluted8,159,324  8,088,270  8,129,737  8,063,073  
Condensed Consolidated Balance Sheets
(Unaudited)
 
 June 30,
Assets20202019
Current assets$12,545,512  $13,256,420  
Total utility plant, net194,049,965  177,816,330  
Other assets66,745,281  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, net116,346,967  90,470,806  
Deferred credits and other liabilities51,672,467  45,668,813  
Total Liabilities183,089,606  159,686,103  
Stockholders’ Equity90,251,152  84,736,935  
Total Liabilities and Stockholders’ Equity$273,340,758  $244,423,038