November 15, 2019 - 4:00 PM EST
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RGC Resources, Inc. Reports Record Earnings

ROANOKE, Va., Nov. 15, 2019 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:  RGCO) announced record consolidated Company earnings of $8,698,412 or $1.08 per share for the fiscal year ended September 30, 2019.  This compares to earnings of $7,297,205 or $0.95 per share for the year ended September 30, 2018.  CEO John D’Orazio stated, “I am pleased to announce our fifth consecutive year of record earnings.  The increase in 2019 earnings is attributable to improved utility margins associated with our infrastructure replacement programs, implementation of new non-gas rates, customer growth, and our ongoing investment in the Mountain Valley Pipeline (MVP).”  D’Orazio further commented, “We continue to execute on the key strategies propelling our earnings growth:  (1) growth in our regulated natural gas business through investments in infrastructure replacements and expansion; and (2) investments in midstream projects such as the MVP and the Southgate.  Diversification opportunities to expand and grow the company are a strategic focus of our management team.  We are excited about the future and increasing shareholder value.”

Earnings for the quarter ending September 30, 2019 were $455,605 or $0.06 per share compared to $684,459 or $0.09 per share for the quarter ended September 30, 2018.  D’Orazio attributed the decrease to prior year tax reform adjustments.

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, 
  2019 2018 2019 2018
         
Revenues $ 9,851,869 $ 9,971,142 $ 68,026,525 $ 65,534,736
Operating expenses 9,361,167 9,256,801 56,431,061 54,064,229
Operating Income 490,702 714,341 11,595,464 11,470,507
Equity in earnings of MVP 981,931 353,132 3,020,348 938,531
Other income (expense), net110,254 151,562 351,882 244,868
Interest expense 983,422 632,142 3,618,551 2,461,565
Income before income taxes599,465 586,893 11,349,143 10,192,341
Income tax expense (benefit)143,860 (97,566) 2,650,731 2,895,136
         
Net income $ 455,605 $ 684,459 $ 8,698,412 $ 7,297,205
         
Net earnings per share of common stock:       
  Basic $ 0.06 $ 0.09 $ 1.08 $ 0.95
  Diluted $ 0.06 $ 0.09 $ 1.08 $ 0.95
         
Cash dividends per common share$ 0.165 $ 0.155 $ 0.660 $ 0.620
         
Weighted average number of common shares outstanding:      
  Basic 8,069,934 7,991,553 8,039,484 7,649,025
  Diluted 8,102,334 8,039,259 8,078,950 7,695,712
         
         
         
Condensed Consolidated Balance Sheets   
(Unaudited)  
         
    September 30,  
Assets   2019 2018  
Current assets   $ 16,385,192 $ 15,544,602  
Total property, plant and equipment, net  182,002,956 165,963,628  
Other assets   59,965,548 38,051,876  
         
  Total Assets   $ 258,353,696 $ 219,560,106  
         
Liabilities and Stockholders' Equity       
Current liabilities   $ 21,633,064 $ 24,091,849  
Long-term debt, net of unamortized debt issuance costs 103,371,358 70,321,936  
Deferred credits and other liabilities  50,252,882 45,563,209  
  Total Liabilities   175,257,304 139,976,994  
Stockholders' Equity   83,096,392 79,583,112  
         
  Total Liabilities and Stockholders' Equity  $ 258,353,696 $ 219,560,106  
         
    $ -  $  
         


Contact:          John S. D’Orazio
                        President and CEO
Telephone:       540-777-3815


Source: GlobeNewswire (November 15, 2019 - 4:00 PM EST)

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