RGC Resources, Inc. Reports First Quarter Earnings

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