RGC Resources, Inc. Annual and Fourth Quarter Financial Results

ROANOKE, Va., Nov. 12, 2013 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $4,262,052 or $0.91 per average share outstanding for the fiscal year ended September 30, 2013. This compares to consolidated earnings of $4,296,745 or $0.92 per average share outstanding for the year ended September 30, 2012. CFO Paul Nester attributed the slightly lower earnings to increased depreciation expense associated with the Company's pipeline replacement program and higher operations and maintenance expenses, offset by improved utility margins.

The Company had a net loss of $100,911 or $0.02 per average share outstanding for the quarter ended September 30, 2013 compared to a loss of $73,772 or $0.02 per average share outstanding for the corresponding quarter ended September 30, 2012. The majority of the Company's sales occur in the winter months and as a result, the Company's fourth quarter normally reflects minor net losses.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company and RGC Ventures of Virginia, Inc.

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.

Summary financial statements for the fourth quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
2013 2012 2013 2012
Revenues $ 9,246,128 $ 9,330,542 $ 63,205,666 $ 58,799,687
Cost of sales 4,394,474 4,620,972 35,602,775 31,866,590
Gross margin 4,851,654 4,709,570 27,602,891 26,933,097
Other operating expenses, net 4,530,781 4,370,782 18,867,953 18,166,518
Interest expense 457,682 458,863 1,828,099 1,830,885
Income (loss) before income taxes (136,809) (120,075) 6,906,839 6,935,694
Income tax expense (benefit) (35,898) (46,303) 2,644,787 2,638,949
Net income (loss) $ (100,911) $ (73,772) $ 4,262,052 $ 4,296,745
Net earnings per share of common stock:
Basic $ (0.02) $ (0.02) $ 0.91 $ 0.92
Diluted $ (0.02) $ (0.02) $ 0.91 $ 0.92
Cash dividends per common share $ 0.180 $ 0.175 $ 1.720 $ 0.700
Weighted average number of common shares outstanding:
Basic 4,708,635 4,666,370 4,698,727 4,647,439
Diluted 4,708,635 4,666,370 4,698,766 4,650,949
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
Assets 2013 2012
Current assets $ 22,208,036 $ 30,247,314
Total property, plant and equipment, net 97,736,549 90,830,092
Other assets 4,582,116 8,678,932
Total Assets $124,526,701 $129,756,338
Liabilities and Stockholders' Equity
Current liabilities $ 29,456,989 $ 29,542,395
Long-term debt 13,000,000 13,000,000
Deferred credits and other liabilities 32,567,290 36,531,013
Total Liabilities 75,024,279 79,073,408
Stockholders' Equity 49,502,422 50,682,930
Total Liabilities and Stockholders' Equity $124,526,701 $129,756,338

CONTACT: Paul W. Nester Vice President and CFO Telephone: 540-777-3837Source:RGC Resources, Inc.