• RGC Resources, Inc. Reports First Quarter Earnings

    Source: Nasdaq GlobeNewswire / 07 Feb 2022 16:00:00   America/Chicago

    ROANOKE, Va., Feb. 07, 2022 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $3,584,529 or $0.43 per diluted share for the quarter ended December 31, 2021. This compares to consolidated earnings of $4,723,263 or $0.58 per diluted share for the quarter ended December 31, 2020. CEO Paul Nester stated, “The reduction in consolidated earnings is primarily due to a $1.3 million decline in non-cash equity earnings. Roanoke Gas continued to show improved margins associated with customer growth and infrastructure replacement programs.”

    Earnings for the twelve months ending December 31, 2021 were $8,963,328 or $1.08 per diluted share compared to $11,280,861 or $1.38 per diluted share for the twelve months ended December 31, 2020. Nester attributed the decrease in trailing twelve-month net income to the lower non-cash equity earnings, offset by 12% Roanoke Gas operating income growth.

    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, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2022 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,
      2021 2020 2021 2020
             
    Operating revenues $23,263,080 $19,517,017 $78,920,842 $62,806,955
    Operating expenses  17,884,657  13,935,630  64,345,497  49,789,365
    Operating income  5,378,423  5,581,387  14,575,345  13,017,590
    Equity in earnings of unconsolidated affiliate  72,127  1,356,683  382,998  5,077,471
    Other income, net  322,439  330,026  904,559  808,679
    Interest expense  1,104,856  1,019,829  4,136,912  4,033,802
    Income before income taxes  4,668,133  6,248,267  11,725,990  14,869,938
    Income tax expense  1,083,604  1,525,004  2,762,662  3,589,077
             
    Net income $3,584,529 $4,723,263 $8,963,328 $11,280,861
             
    Net earnings per share of common stock:        
    Basic $0.43 $0.58 $1.08 $1.38
    Diluted $0.43 $0.58 $1.08 $1.38
             
    Cash dividends per common share$0.195 $0.185 $0.750 $0.710
             
    Weighted average number of common shares outstanding:      
    Basic  8,383,986  8,167,793  8,306,294  8,147,544
    Diluted  8,393,032  8,182,183  8,318,014  8,164,072
             
             
             
    Condensed Consolidated Balance Sheets  
    (Unaudited)  
             
        December 31,  
    Assets   2021 2020  
    Current assets   $32,449,177 $20,903,352  
    Utility plant, net    215,350,467  201,784,393  
    Other assets    75,431,248  71,666,584  
             
    Total Assets   $323,230,892 $294,354,329  
             
    Liabilities and Stockholders' Equity       
    Current liabilities   $44,758,986 $22,526,868  
    Long-term debt, net    124,809,694  126,141,704  
    Deferred credits and other liabilities   51,367,367  53,136,216  
    Total Liabilities    220,936,047  201,804,788  
    Stockholders' Equity    102,294,845  92,549,541  
             
    Total Liabilities and Stockholders' Equity  $323,230,892 $294,354,329  
             
             
             


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

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