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RGC Resources, Inc. Second Quarter Financial Results

ROANOKE, Va., May 9, 2013 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,698,707 or $0.57 per average share outstanding for the quarter ended March 31, 2013. This compares to consolidated earnings of $2,483,307 or $0.54 per average share outstanding for the quarter ended March 31, 2012. CFO Paul Nester attributed the increase in earnings to higher gross margins from space heating sales volumes as a result of a cooler winter season.

Earnings for the twelve months ending March 31, 2013 were $4,231,386 or $0.91 per share compared to $0.97 per share for the twelve months ended March 31, 2012. Nester attributed the lower year-over-year earnings primarily to the effect of higher depreciation and property tax expenses associated with the Company's pipeline replacement program.

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 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,
2013 2012 2013 2012
Revenues $ 24,175,638 $ 21,290,227 $ 61,932,514 $ 60,967,946
Cost of sales 14,589,911 12,171,705 34,725,356 33,881,161
Gross margin 9,585,727 9,118,522 27,207,158 27,086,785
Other operating expenses, net 4,772,954 4,657,091 18,540,948 18,030,722
Interest expense 454,853 456,710 1,829,490 1,829,953
Income before income taxes 4,357,920 4,004,721 6,836,720 7,226,110
Income tax expense 1,659,213 1,521,414 2,605,334 2,743,596
Net income $ 2,698,707 $ 2,483,307 $ 4,231,386 $ 4,482,514
Net earnings per share of common stock:
Basic $ 0.57 $ 0.54 $ 0.91 $ 0.97
Diluted $ 0.57 $ 0.53 $ 0.90 $ 0.97
Cash dividends per common share $ 0.180 $ 0.175 $ 1.710 $ 0.690
Weighted average number of common shares outstanding:
Basic 4,701,866 4,638,889 4,675,007 4,623,863
Diluted 4,701,866 4,644,251 4,675,834 4,629,861
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
Assets 2013 2012
Current assets $ 34,247,587 $ 35,344,882
Total property, plant and equipment, net 93,418,946 87,865,291
Other assets 8,628,729 7,658,663
Total Assets $ 136,295,262 $ 130,868,836
Liabilities and Stockholders' Equity
Current liabilities $ 36,162,654 $ 31,562,630
Long-term debt 13,000,000 13,000,000
Deferred credits and other liabilities 37,571,637 34,250,524
Total Liabilities 86,734,291 78,813,154
Stockholders' Equity 49,560,971 52,055,682
Total Liabilities and Stockholders' Equity $ 136,295,262 $ 130,868,836

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