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RGC Resources, Inc. Reports 16% Increase in First Quarter Earnings

ROANOKE, Va., Feb. 06, 2017 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $2,232,218 or $0.47 per average share outstanding for the quarter ended December 31, 2016. This compares to consolidated earnings of $1,922,790 or $0.40 per average share outstanding for the quarter ended December 31, 2015. CEO John D’Orazio attributed the 16% increase in earnings to improved utility margins associated with the company’s infrastructure replacement programs, increased gas volumes attributed to customer growth, and the investment in the Mountain Valley Pipeline (MVP).

Earnings for the twelve months ending December 31, 2016 were $6,116,294 or $1.28 per share compared to $5,092,829 or $1.08 per share for the twelve months ended December 31, 2015. D’Orazio attributed the 20% increase in earnings to improved utility margins associated with the company’s 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, 2016 is not indicative of the results to be expected for the fiscal year ending September 30, 2017 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 EndedTwelve Months Ended
December 31,December 31,
2016
2015 2016 2015
Revenues$18,788,585
$16,010,056 $61,841,820 $62,949,598
Cost of sales 9,397,680
7,271,940 29,624,117 32,627,192
Gross margin 9,390,905
8,738,116 32,217,703 30,322,406
Equity in earnings of MVP 84,540
21,537 215,867 21,537
Other operating expenses, net 5,412,342
5,243,937 20,776,812 20,559,304
Interest expense 458,521
408,356 1,686,486 1,523,708
Income before income taxes 3,604,582
3,107,360 9,970,272 8,260,931
Income tax expense 1,372,364
1,184,570 3,853,978 3,168,102
Net income$2,232,218
$1,922,790 $6,116,294 $5,092,829
Net earnings per share of common stock:
Basic$0.47
$0.40 $1.28 $1.08
Diluted$0.46
$0.40 $1.28 $1.07
Cash dividends per common share$0.2175
$0.2025 $0.8250 $0.7800
Weighted average number of common shares outstanding:
Basic 4,796,396
4,748,279 4,778,699 4,734,962
Diluted 4,807,031
4,752,179 4,787,124 4,738,380
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
Assets 2016 2015
Current assets $21,606,504 $21,104,828
Total property, plant and equipment, net 135,780,493 121,308,922
Other assets 18,574,746 12,490,905
Total Assets $175,961,743 $154,904,655
Liabilities and Stockholders’ Equity
Current liabilities $28,756,950 $27,614,707
Long-term debt 41,135,426 31,854,285
Deferred credits and other liabilities 48,788,676 41,371,592
Total Liabilities 118,681,052 100,840,584
Stockholders’ Equity 57,280,691 54,064,071
Total Liabilities and Stockholders’ Equity $175,961,743 $154,904,655



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

Source:RGC Resources, Inc.