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RGC Resources, Inc. Third Quarter Financial Results

ROANOKE, Va., July 31, 2013 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $110,103 or $0.02 per average share outstanding for the quarter ended June 30, 2013. This compares to consolidated earnings of $52,298 or $0.01 per average share outstanding for the quarter ended June 30, 2012. CFO Paul Nester attributed the slight increase in earnings to higher gross margins from space heating sales volumes as a result of a cooler spring season.

Earnings for the twelve months ending June 30, 2013 were $4,289,191 or $0.91 per share compared to $0.94 per share for the twelve months ended June 30, 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 third quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
June 30,
Twelve Months Ended
June 30,
2013 2012 2013 2012
Revenues $ 11,037,308 $ 9,679,742 $ 63,290,080 $ 59,540,203
Cost of sales 5,808,281 4,704,364 35,829,273 32,543,027
Gross margin 5,229,027 4,975,378 27,460,807 26,997,176
Other operating expenses, net 4,594,868 4,427,862 18,707,954 18,148,138
Interest expense 456,103 456,313 1,829,280 1,829,952
Income before income taxes 178,056 91,203 6,923,573 7,019,086
Income tax expense 67,953 38,905 2,634,382 2,668,891
Net income $ 110,103 $ 52,298 $ 4,289,191 $ 4,350,195
Net earnings per share of common stock:
Basic $ 0.02 $ 0.01 $ 0.91 $ 0.94
Diluted $ 0.02 $ 0.01 $ 0.91 $ 0.94
Cash dividends per common share $ 0.180 $ 0.175 $ 1.715 $ 0.695
Weighted average number of common shares outstanding:
Basic 4,706,721 4,654,311 4,688,074 4,636,265
Diluted 4,708,320 4,656,883 4,688,252 4,640,961
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
Assets 2013 2012
Current assets $ 27,576,118 $ 31,846,628
Total property, plant and equipment, net 95,076,542 89,437,962
Other assets 8,587,436 7,641,938
Total Assets $ 131,240,096 $ 128,926,528
Liabilities and Stockholders' Equity
Current liabilities $ 31,032,697 $ 30,055,364
Long-term debt 13,000,000 13,000,000
Deferred credits and other liabilities 38,042,635 34,265,206
Total Liabilities 82,075,332 77,320,570
Stockholders' Equity 49,164,764 51,605,958
Total Liabilities and Stockholders' Equity $ 131,240,096 $ 128,926,528

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