RGC Resources, Inc. Reports First Quarter Earnings
ROANOKE, Va., Feb. 05, 2018 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $2,059,462 or $0.28 per share for the quarter ended December 31, 2017. This includes a one-time, non-cash charge of $208,288 resulting from the tax reform law and a $462,442 refund reserve for excess revenues billed to Roanoke Gas customers attributable to the corresponding reduction to income tax expense. This compares to consolidated earnings of $2,232,218 or $0.31 per share for the quarter ended December 31, 2016.
Earnings for the twelve months ending December 31, 2017 were $6,060,109 or $0.84 per share compared to $6,116,294 or $0.85 per share for the twelve months ended December 31, 2016. Excluding the one-time charge, twelve-month earnings would have increased by 2.5%. CEO John D’Orazio attributed the increase to improved utility margins associated with infrastructure replacement programs, increased gas volumes attributed to customer growth, 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.
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, 2017 is not indicative of the results to be expected for the fiscal year ending September 30, 2018 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 December 31, | Twelve months ended December 31, | |||||||
| 2017 | 2016 | 2017 | 2016 | |||||
| Revenues | $ | 18,756,051 | $ | 18,788,585 | $ | 62,264,336 | $ | 61,841,820 |
| Cost of sales | 9,682,616 | 9,397,680 | 29,772,649 | 29,624,117 | ||||
| Gross margin | 9,073,435 | 9,390,905 | 32,491,687 | 32,217,703 | ||||
| Equity in earnings of MVP | 148,811 | 84,540 | 485,917 | 215,867 | ||||
| Other operating expenses, net | 5,414,443 | 5,412,342 | 21,277,395 | 20,776,812 | ||||
| Interest expense | 612,645 | 458,521 | 2,071,378 | 1,686,486 | ||||
| Income before income taxes | 3,195,158 | 3,604,582 | 9,628,831 | 9,970,272 | ||||
| Income tax expense | 1,135,696 | 1,372,364 | 3,568,722 | 3,853,978 | ||||
| Net income | $ | 2,059,462 | $ | 2,232,218 | $ | 6,060,109 | $ | 6,116,294 |
| Net earnings per share of common stock: | ||||||||
| Basic | $ | 0.28 | $ | 0.31 | $ | 0.84 | $ | 0.85 |
| Diluted | $ | 0.28 | $ | 0.31 | $ | 0.83 | $ | 0.85 |
| Cash dividends per common share | $ | 0.1550 | $ | 0.1450 | $ | 0.5900 | $ | 0.5500 |
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 7,248,094 | 7,194,594 | 7,232,171 | 7,168,049 | ||||
| Diluted | 7,296,180 | 7,210,547 | 7,276,772 | 7,180,686 | ||||
| Condensed Consolidated Balance Sheets | ||||
| (Unaudited) | ||||
| December 31, | ||||
| Assets | 2017 | 2016 | ||
| Current assets | $ | 21,881,630 | $ | 21,453,170 |
| Total property, plant and equipment, net | 151,909,137 | 135,780,493 | ||
| Other assets | 22,490,552 | 18,728,080 | ||
| Total Assets | $ | 196,281,319 | $ | 175,961,743 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities | $ | 17,876,580 | $ | 28,756,950 |
| Long-term debt | 69,793,783 | 41,135,426 | ||
| Deferred credits and other liabilities | 47,309,921 | 48,788,676 | ||
| Total Liabilities | 134,980,284 | 118,681,052 | ||
| Stockholders’ Equity | 61,301,035 | 57,280,691 | ||
| Total Liabilities and Stockholders’ Equity | $ | 196,281,319 | $ | 175,961,743 |
Contact:
Paul W. Nester
Vice President and CFO
Telephone: 540-777-3837
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