RGC Resources, Inc. Reports Third Quarter Earnings

ROANOKE, Va., Aug. 04, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $610,840 or $0.07 per diluted share for the quarter ended June 30, 2021. This compares to consolidated earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs. The overall earnings decline was primarily attributable to the significantly lower non-cash MVP equity in earnings.”

Earnings for the twelve months ending June 30, 2021 were $9,772,285 or $1.19 per diluted share outstanding compared to $11,349,435 or $1.40 per diluted share for the twelve months ended June 30, 2020. Nester attributed the earnings decline in trailing twelve-month net income to lower non-cash MVP equity in earnings, COVID-19 related bad debt expense, and one time maintenance investments in the fourth quarter of fiscal 2020.

RGC Resources, Inc. provides energy and related products and services through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.

Net income for the three months ended June 30, 2021 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. Net income for fiscal 2021 is expected to be lower than 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, and research and development activities. 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								Twelve Months Ended
		June 30,								June 30,
			2021				2020				2021				2020
Operating revenues		$	14,048,846			$	11,071,918			$	71,599,814			$	63,146,971
Operating expenses			12,506,513				9,736,255				58,275,744				49,239,011
Operating income			1,542,333				1,335,663				13,324,070				13,907,960
Equity in earnings of unconsolidated affiliate			133,864				1,205,574				2,813,371				4,470,184
Other income, net			130,186				52,556				855,965				638,345
Interest expense			1,000,238				986,203				4,017,308				4,093,103
Income before income taxes			806,145				1,607,590				12,976,098				14,923,386
Income tax expense			195,305				401,012				3,203,813				3,573,951
Net income		$	610,840			$	1,206,578			$	9,772,285			$	11,349,435
Net earnings per share of common stock:
Basic		$	0.07			$	0.15			$	1.19			$	1.40
Diluted		$	0.07			$	0.15			$	1.19			$	1.40
Cash dividends per common share		$	0.185			$	0.175			$	0.730			$	0.690
Weighted average number of common shares outstanding:
Basic			8,260,579				8,143,887				8,200,295				8,104,298
Diluted			8,273,203				8,159,324				8,213,716				8,129,737
Condensed Consolidated Balance Sheets
(Unaudited)
						June 30,
Assets							2021				2020
Current assets						$	14,862,881			$	12,545,512
Utility plant, net							207,993,519				194,049,965
Other assets							74,005,332				66,745,281
Total Assets						$	296,861,732			$	273,340,758
Liabilities and Stockholders' Equity
Current liabilities						$	21,605,817			$	15,070,172
Long-term debt, net							123,151,387				116,346,967
Deferred credits and other liabilities							53,265,790				51,672,467
Total Liabilities							198,022,994				183,089,606
Stockholders' Equity							98,838,738				90,251,152
Total Liabilities and Stockholders' Equity						$	296,861,732			$	273,340,758

 

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