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RGC Resources, Inc. Third Quarter Financial Results

ROANOKE, Va., July 31, 2014 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $283,194 or $0.06 per average share outstanding for the quarter ended June 30, 2014. This compares to consolidated earnings of $110,103 or $0.02 per average share outstanding for the quarter ended June 30, 2013. CFO Paul Nester attributed the increase in earnings to improved utility margins from higher sales volumes.

Earnings for the twelve months ending June 30, 2014 were $4,751,866 or $1.01 per share compared to $0.91 per share for the twelve months ended June 30, 2013. Nester attributed the higher year-over-year earnings primarily to improved utility margins from higher sales volumes.

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 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,
2014 2013 2014 2013
Revenues $ 12,024,817 $ 11,037,308 $ 73,982,104 $ 63,290,080
Cost of sales 6,303,266 5,808,281 45,044,782 35,829,273
Gross margin 5,721,551 5,229,027 28,937,322 27,460,807
Other operating expenses, net 4,802,903 4,594,868 19,375,024 18,707,954
Interest expense 456,761 456,103 1,834,553 1,829,280
Income before income taxes 461,887 178,056 7,727,745 6,923,573
Income tax expense 178,693 67,953 2,975,879 2,634,382
Net income $ 283,194 $ 110,103 $ 4,751,866 $ 4,289,191
Net earnings per share of common stock:
Basic $ 0.06 $ 0.02 $ 1.01 $ 0.91
Diluted $ 0.06 $ 0.02 $ 1.01 $ 0.91
Cash dividends per common share $ 0.185 $ 0.180 $ 0.735 $ 1.715
Weighted average number of common shares outstanding:
Basic 4,718,068 4,706,721 4,712,665 4,688,074
Diluted 4,718,898 4,708,320 4,712,952 4,688,252
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
Assets 2014 2013
Current assets $ 16,840,735 $ 27,576,118
Total property, plant and equipment, net 105,428,322 95,076,542
Other assets 4,581,000 8,587,436
Total Assets $ 126,850,057 $ 131,240,096
Liabilities and Stockholders' Equity
Current liabilities $ 12,796,377 $ 31,032,697
Long-term debt 28,000,000 13,000,000
Deferred credits and other liabilities 33,641,698 38,042,635
Total Liabilities 74,438,075 82,075,332
Stockholders' Equity 52,411,982 49,164,764
Total Liabilities and Stockholders' Equity $ 126,850,057 $ 131,240,096

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