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RGC Resources, Inc. Third Quarter Financial Results

ROANOKE, Va., Aug. 03, 2015 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $354,940 or $0.08 per average share outstanding for the quarter ended June 30, 2015. This compares to consolidated earnings of $283,194 or $0.06 per average share outstanding for the quarter ended June 30, 2014. CFO Paul Nester attributed the increase in earnings to improved utility margins from modest customer growth and lower interest expense.

Earnings for the twelve months ending June 30, 2015 were $4,914,323 or $1.04 per share compared to $1.01 per share for the twelve months ended June 30, 2014. Nester attributed the higher year-over-year earnings primarily to slightly higher utility margins and lower interest expense.

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.

Net income for the three months ended June 30, 2015 is not indicative of the results to be expected for the fiscal year ending September 30, 2015 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 third quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months EndedTwelve Months Ended
June 30,June 30,
2015 2014 2015 2014
Revenues$10,774,409 $12,024,817 $68,736,361 $73,982,104
Cost of sales 4,812,581 6,303,266 38,687,199 45,044,782
Gross margin 5,961,828 5,721,551 30,049,162 28,937,322
Other operating expenses, net 5,026,752 4,802,903 20,499,522 19,375,024
Interest expense 358,850 456,761 1,591,209 1,834,553
Income before income taxes 576,226 461,887 7,958,431 7,727,745
Income tax expense 221,286 178,693 3,044,108 2,975,879
Net income$354,940 $283,194 $4,914,323 $4,751,866
Net earnings per share of common stock:
Basic$0.08 $0.06 $1.04 $1.01
Diluted$0.07 $0.06 $1.04 $1.01
Cash dividends per common share$0.1925 $0.1850 $0.7625 $0.7350
Weighted average number of common shares outstanding:
Basic 4,729,428 4,718,068 4,723,796 4,712,665
Diluted 4,732,620 4,718,898 4,727,181 4,712,952


Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
Assets 2015 2014
Current assets$15,514,151 $16,840,735
Total property, plant and equipment, net 115,276,089 105,428,322
Other assets 9,687,290 4,581,000
Total Assets$140,477,530 $126,850,057
Liabilities and Stockholders’ Equity
Current liabilities$16,741,218 $12,796,377
Long-term debt 30,500,000 28,000,000
Deferred credits and other liabilities 38,572,227 33,641,698
Total Liabilities 85,813,445 74,438,075
Stockholders’ Equity 54,664,085 52,411,982
Total Liabilities and Stockholders’ Equity$140,477,530 $126,850,057


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

Source:RGC Resources, Inc.