August 1, 2016 - 5:00 PM EDT
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RGC Resources, Inc. Third Quarter Financial Results

ROANOKE, Va., Aug. 01, 2016 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $627,068 or $0.13 per average share outstanding for the quarter ended June 30, 2016.  This compares to consolidated earnings of $354,940 or $0.08 per average share outstanding for the quarter ended June 30, 2015.  CFO Paul Nester attributed the increase to improved utility margins, customer growth, higher capital spending, and lower operating expenses.

Earnings for the twelve months ending June 30, 2016 were $5,697,060 or $1.20 per share compared to $1.04 per share for the twelve months ended June 30, 2015.  Nester attributed the higher year-over-year earnings primarily to improved utility margins, customer growth, higher capital spending, and lower operating expenses.

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 June 30, 2016 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 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,
   2016201520162015
Revenues  $11,295,197 $10,774,409 $58,816,430 $68,736,361 
Cost of sales   4,982,857  4,812,581  27,708,013  38,687,199 
Gross margin   6,312,340  5,961,828  31,108,417  30,049,162 
Other operating expenses, net   4,857,579  5,026,752  20,226,904  20,499,522 
Interest expense   396,304  358,850  1,591,940  1,591,209 
Income before income taxes   1,058,457  576,226  9,289,573  7,958,431 
Income tax expense   431,389  221,286  3,592,513  3,044,108 
Net income  $627,068 $354,940 $5,697,060 $4,914,323 
Net earnings per share of common stock:      
Basic  $0.13 $0.08 $1.20 $1.04 
Diluted  $0.13 $0.07 $1.20 $1.04 
Cash dividends per common share  $0.2025 $0.1925 $0.8000 $0.7625 
Weighted average number of common shares outstanding:      
Basic   4,773,766  4,729,428  4,754,752  4,723,796 
Diluted   4,781,808  4,732,620  4,759,009  4,727,181 
               


Condensed Consolidated Balance Sheets
(Unaudited)
    
   June 30,
Assets  20162015
Current assets  $12,566,358 $12,352,281 
Total property, plant and equipment, net   127,872,827  115,276,089 
Other assets   14,657,699  9,501,449 
Total Assets  $155,096,884 $137,129,819 
Liabilities and Stockholders’ Equity        
Current liabilities  $23,006,548 $16,741,218 
Long-term debt   32,828,556  30,314,159 
Deferred credits and other liabilities   42,713,478  35,410,357 
Total Liabilities   98,548,582  82,465,734 
Stockholders’ Equity   56,548,302  54,664,085 
Total Liabilities and Stockholders’ Equity  $155,096,884 $137,129,819 
         
Contact:	Paul W. Nester
Vice President and CFO
Telephone: 540-777-3837

Source: GlobeNewswire (August 1, 2016 - 5:00 PM EDT)

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