ROANOKE, Va., Nov. 15, 2017 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced record consolidated Company earnings of $6,232,865 or $0.86 per share for the fiscal year ended September 30, 2017. This compares to earnings of $5,806,866 or $0.81 per share for the year ended September 30, 2016. CEO John D’Orazio stated, “I am pleased to announce our third consecutive year of record earnings. The increase in 2017 earnings is attributable to improved utility margins associated with our infrastructure replacement programs and customer growth, and our ongoing investment in the Mountain Valley Pipeline (MVP).” D’Orazio further commented, “The Company will continue to invest in infrastructure replacement programs to enhance the safety and reliability of our gas distribution system for our utility subsidiary, Roanoke Gas Company.”
Earnings for the quarter ending September 30, 2017 were $159,886 or $0.02 per share compared to $145,561 or $0.02 per share for the quarter ended September 30, 2016. D’Orazio attributed the increase to higher utility margins and the MVP investment.
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. Past performance is not necessarily a predictor of future results.
Summary financial statements for the fourth quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
2017
2016
2017
2016
Revenues
$
10,172,448
$
9,980,265
$
62,296,870
$
59,063,291
Cost of sales
4,218,328
4,115,076
29,487,713
27,498,377
Gross margin
5,954,120
5,865,189
32,809,157
31,564,914
Equity in earnings of MVP
131,855
56,919
421,646
152,864
Other operating expenses, net
5,296,926
5,232,938
21,275,294
20,608,407
Interest expense
516,953
415,721
1,917,254
1,636,321
Income (loss) before income taxes
272,096
273,449
10,038,255
9,473,050
Income tax expense (benefit)
112,210
127,888
3,805,390
3,666,184
Net income (loss)
$
159,886
$
145,561
$
6,232,865
$
5,806,866
Net earnings per share of common stock:
Basic
$
0.02
$
0.02
$
0.86
$
0.81
Diluted
$
0.02
$
0.02
$
0.86
$
0.81
Cash dividends per common share
$
0.145
$
0.135
$
0.580
$
0.540
Weighted average number of common shares outstanding:
Basic
7,237,669
7,176,687
7,218,686
7,149,906
Diluted
7,286,300
7,191,366
7,256,046
7,159,763
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
Assets
2017
2016
Current assets
$
15,685,604
$
15,482,324
Total property, plant and equipment, net
147,927,971
132,128,138
Other assets
19,521,496
17,942,387
Total Assets
$
183,135,071
$
165,552,849
Current liabilities
$
14,366,232
$
28,497,053
Long-term debt, net of unamortized debt issuance costs
61,312,011
33,636,051
Deferred credits and other liabilities
47,416,356
47,752,673
Total Liabilities
123,094,599
109,885,777
Stockholders’ Equity
60,040,472
55,667,072
Total Liabilities and Stockholders’ Equity
$
183,135,071
$
165,552,849
Contact:
John S. D’Orazio
President and CEO
Telephone: 540-777-3815