RGC Resources, Inc. Reports First Quarter Earnings
ROANOKE, Va., Feb. 09, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,723,263 or $0.58 per diluted share for the quarter ended December 31, 2020. This compares to consolidated earnings of $4,006,936 or $0.49 per diluted share for the quarter ended December 31, 2019. CEO Paul Nester stated, “We experienced solid earnings growth from improved utility margins associated with infrastructure replacement programs and customer growth as well as lower operating expenses.”
Earnings for the twelve months ending December 31, 2020 were $11,280,861 or $1.38 per diluted share compared to $10,271,186 or $1.27 per diluted share for the twelve months ended December 31, 2019. Nester attributed the increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, customer growth, and non-cash equity earnings.
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.
Net income for the three months ended December 31, 2020 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. Past performance is not necessarily a predictor of future results.
Summary financial statements for the first quarter and twelve months are as follows:
| RGC Resources, Inc. and Subsidiaries | |||||||||||
| Condensed Consolidated Statements of Income | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||
| Operating revenues | $ | 19,517,017 | $ | 19,785,453 | $ | 62,806,955 | $ | 66,595,231 | |||
| Operating expenses | 13,935,630 | 14,703,474 | 49,789,365 | 53,182,010 | |||||||
| Operating income | 5,581,387 | 5,081,979 | 13,017,590 | 13,413,221 | |||||||
| Equity in earnings of unconsolidated affiliate | 1,356,683 | 1,094,086 | 5,077,471 | 3,551,385 | |||||||
| Other income, net | 330,026 | 157,643 | 808,679 | 383,639 | |||||||
| Interest expense | 1,019,829 | 1,085,185 | 4,033,802 | 3,886,954 | |||||||
| Income before income taxes | 6,248,267 | 5,248,523 | 14,869,938 | 13,461,291 | |||||||
| Income tax expense | 1,525,004 | 1,241,587 | 3,589,077 | 3,190,105 | |||||||
| Net income | $ | 4,723,263 | $ | 4,006,936 | $ | 11,280,861 | $ | 10,271,186 | |||
| Net earnings per share of common stock: | |||||||||||
| Basic | $ | 0.58 | $ | 0.50 | $ | 1.38 | $ | 1.27 | |||
| Diluted | $ | 0.58 | $ | 0.49 | $ | 1.38 | $ | 1.27 | |||
| Cash dividends per common share | $ | 0.185 | $ | 0.175 | $ | 0.710 | $ | 0.670 | |||
| Weighted average number of common shares outstanding: | |||||||||||
| Basic | 8,167,793 | 8,081,837 | 8,147,544 | 8,059,170 | |||||||
| Diluted | 8,182,183 | 8,113,785 | 8,164,072 | 8,094,616 | |||||||
| Condensed Consolidated Balance Sheets | |||||
| (Unaudited) | |||||
| December 31, | |||||
| Assets | 2020 | 2019 | |||
| Current assets | $ | 20,903,352 | $ | 21,239,364 | |
| Utility plant, net | 201,784,393 | 185,391,008 | |||
| Other assets | 71,666,584 | 61,552,241 | |||
| Total Assets | $ | 294,354,329 | $ | 268,182,613 | |
| Liabilities and Stockholders' Equity | |||||
| Current liabilities | $ | 22,526,868 | $ | 17,503,920 | |
| Long-term debt, net | 126,141,704 | 113,772,779 | |||
| Deferred credits and other liabilities | 53,136,216 | 50,546,779 | |||
| Total Liabilities | 201,804,788 | 181,823,478 | |||
| Stockholders' Equity | 92,549,541 | 86,359,135 | |||
| Total Liabilities and Stockholders' Equity | $ | 294,354,329 | $ | 268,182,613 | |
| Contact: | Randall P. Burton, II | |
| Vice President and CFO | ||
| Telephone: | 540-777-3997 |