RGC Resources, Inc. Reports Second Quarter Earnings

ROANOKE, Va., May 04, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:  RGCO) announced consolidated Company earnings of $5,680,316 or $0.70 per diluted share for the quarter ended March 31, 2020.  This compares to consolidated earnings of $4,670,090 or $0.58 per diluted share for the quarter ended March 31, 2019.  CEO Paul Nester stated, “Prior to the COVID-19 pandemic, we experienced strong earnings growth driven primarily by improved utility margins and the investment in the Mountain Valley Pipeline (MVP)”. 

Earnings for the twelve months ending March 31, 2020 were $11,281,412 or $1.39 per diluted share outstanding compared to $8,876,066 or $1.10 per diluted share for the twelve months ended March 31, 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 March 31, 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.  Net income for the remainder of fiscal 2020 is expected to be lower than the corresponding period in 2019.

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,
	2020			2019			2020			2019
Revenues	$	22,437,731		$	25,274,959		$	63,758,003		$	68,352,418
Operating expenses		15,438,115			19,071,476			49,548,649			56,334,782
Operating Income		6,999,616			6,203,483			14,209,354			12,017,636
Equity in earnings of MVP		1,188,593			698,175			4,041,803			1,859,431
Other income, net		317,892			121,709			579,822			436,014
Interest expense		1,038,293			892,649			4,032,598			2,925,165
Income before income taxes		7,467,808			6,130,718			14,798,381			11,387,916
Income tax expense		1,787,492			1,460,628			3,516,969			2,511,850
Net income	$	5,680,316		$	4,670,090		$	11,281,412		$	8,876,066
Net earnings per share of common stock:
Basic	$	0.70		$	0.58		$	1.40		$	1.11
Diluted	$	0.70		$	0.58		$	1.39		$	1.10
Cash dividends per common share	$	0.175		$	0.165		$	0.680		$	0.640
Weighted average number of common shares outstanding:
Basic		8,122,157			8,032,218			8,081,438			8,002,357
Diluted		8,144,963			8,073,149			8,112,308			8,048,787

Condensed Consolidated Balance Sheets
(Unaudited)

	March 31,
Assets	2020			2019
Current assets	$	16,603,503		$	18,423,004
Total utility plant, net		189,667,211			173,936,238
Other assets		64,317,462			45,648,765
Total Assets	$	270,588,176		$	238,008,007
Liabilities and Stockholders' Equity
Current liabilities	$	17,172,195		$	21,382,448
Long-term debt, net		112,231,649			86,904,965
Deferred credits and other liabilities		50,866,985			44,746,077
Total Liabilities		180,270,829			153,033,490
Stockholders' Equity		90,317,347			84,974,517
Total Liabilities and Stockholders' Equity	$	270,588,176		$	238,008,007
	$	-		$	-

Contact:		Randall P. Burton, II Vice President and CFO
Telephone:		540-777-3997