February 1, 2016 - 5:27 PM EST
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RGC Resources, Inc. First Quarter Financial Results

ROANOKE, Va., Feb. 01, 2016 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $1,922,790 or $0.40 per average share outstanding for the quarter ended December 31, 2015.  This compares to consolidated earnings of $1,924,376 or $0.41 per average share outstanding for the quarter ended December 31, 2014.  CFO Paul Nester attributed the essentially flat earnings to slightly improved utility margins offset by higher depreciation.

Earnings for the twelve months ending December 31, 2015 were $5,092,829 or $1.08 per share compared to $4,910,028 or $1.04 per share for the twelve months ended December 31, 2014.  Nester attributed the increase in earnings to improved utility margins, customer growth 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, RGC Midstream, LLC 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 December 31, 2015 is not indicative of the results to be expected for the fiscal year ending September 30, 2016 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 Ended  Twelve Months Ended 
  December 31,  December 31, 
  2015  2014  2015  2014 
Revenues$16,010,056 $21,250,065 $62,949,598 $76,255,005 
Cost of sales 7,271,940  12,627,922  32,627,192  46,498,765 
Gross margin 8,738,116  8,622,143  30,322,406  29,756,240 
Other operating expenses, net 5,222,400  5,113,670  20,537,767  20,020,297 
Interest expense 408,356  397,067  1,523,708  1,759,615 
Income before income taxes 3,107,360  3,111,406  8,260,931  7,976,328 
Income tax expense 1,184,570  1,187,030  3,168,102  3,066,300 
Net income$1,922,790 $1,924,376 $5,092,829 $4,910,028 
Net earnings per share of common stock:    
Basic$0.40 $0.41 $1.08 $1.04 
Diluted$0.40 $0.41 $1.07 $1.04 
Cash dividends per common share$0.2025 $0.1925 $0.7800 $0.7475 
Weighted average number of common shares outstanding:    
Basic 4,748,279  4,721,490  4,734,962  4,718,257 
Diluted 4,752,179  4,725,597  4,738,380  4,720,153 

                                                                                                                                                                                        

Condensed Consolidated Balance Sheets
(Unaudited)
       
 December 31,
Assets 2015  2014 
Current assets$21,104,828 $25,523,109 
Total property, plant and equipment, net 121,308,922  111,919,607 
Other assets 12,490,905  9,411,728 
Total Assets$154,904,655 $146,854,444 
Liabilities and Stockholders’ Equity  
Current liabilities$27,614,707 $26,954,902 
Long-term debt 31,854,285  30,309,332 
Deferred credits and other liabilities 41,371,592  36,496,227 
Total Liabilities 100,840,584  93,760,461 
Stockholders’ Equity 54,064,071  53,093,983 
Total Liabilities and Stockholders’ Equity$154,904,655 $146,854,444 
       
Contact: Paul W. Nester
Vice President and CFO
Telephone: 540-777-3837

Source: GlobeNewswire (February 1, 2016 - 5:27 PM EST)

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