RGC Resources, Inc. Reports Second Quarter Earnings
/EIN News/ -- 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 | |
