ROANOKE, Va., Nov. 15, 2018 (GLOBE NEWSWIRE) — RGC Resources, Inc. (NASDAQ: RGCO) announced record consolidated Company earnings of $7,297,205 or $0.95 per share for the fiscal year ended September 30, 2018. This compares to earnings of $6,232,865 or $0.86 per share for the year ended September 30, 2017. CEO John D’Orazio stated, “I am pleased to announce our fourth consecutive year of record earnings. The increase in 2018 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 key strategies propelling our continued earnings growth are: (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. We continue to focus on additional strategic opportunities to expand and diversify the company. We are excited about the future and increasing shareholder value.”
Earnings for the quarter ending September 30, 2018 were $684,459 or $0.09 per share compared to $159,886 or $0.02 per share for the quarter ended September 30, 2017. D’Orazio attributed the increase to higher utility margins, the MVP investment and lower taxes on unregulated operations.
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 September 30, |
Twelve Months Ended September 30, |
||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||
| Revenues | $ | 9,971,142 | $ | 10,172,448 | $ | 65,534,736 | $ | 62,296,870 | |||||
| Operating expenses | 9,226,162 | 9,405,828 | 53,941,691 | 50,630,561 | |||||||||
| Operating income | 744,980 | 766,620 | 11,593,045 | 11,666,309 | |||||||||
| Equity in earnings of MVP | 353,132 | 131,855 | 938,531 | 421,646 | |||||||||
| Other (income) expense, net | (120,923 | ) | 109,426 | (122,330 | ) | 132,446 | |||||||
| Interest expense | 632,142 | 516,953 | 2,461,565 | 1,917,254 | |||||||||
| Income before income taxes | 586,893 | 272,096 | 10,192,341 | 10,038,255 | |||||||||
| Income tax expense (benefit) | (97,566 | ) | 112,210 | 2,895,136 | 3,805,390 | ||||||||
| Net income | $ | 684,459 | $ | 159,886 | $ | 7,297,205 | $ | 6,232,865 | |||||
| Net earnings per share of common stock: | |||||||||||||
| Basic | $ | 0.09 | $ | 0.02 | $ | 0.95 | $ | 0.86 | |||||
| Diluted | $ | 0.09 | $ | 0.02 | $ | 0.95 | $ | 0.86 | |||||
| Cash dividends per common share | $ | 0.155 | $ | 0.145 | $ | 0.620 | $ | 0.580 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 7,991,553 | 7,237,669 | 7,649,025 | 7,218,686 | |||||||||
| Diluted | 8,039,259 | 7,286,300 | 7,695,712 | 7,256,046 | |||||||||
Condensed Consolidated Balance Sheets
(Unaudited)
| September 30, | ||||
| Assets | 2018 | 2017 | ||
| Current assets | $ | 15,544,602 | $ | 15,685,604 |
| Total property, plant and equipment, net | 165,963,628 | 147,927,971 | ||
| Other assets | 38,051,876 | 19,521,496 | ||
| Total Assets | $ | 219,560,106 | $ | 183,135,071 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities | $ | 24,091,849 | $ | 14,366,232 |
| Long-term debt, net of unamortized debt issuance costs | 70,321,936 | 61,312,011 | ||
| Deferred credits and other liabilities | 45,563,209 | 47,416,356 | ||
| Total Liabilities | 139,976,994 | 123,094,599 | ||
| Stockholders’ Equity | 79,583,112 | 60,040,472 | ||
| Total Liabilities and Stockholders’ Equity | $ | 219,560,106 | $ | 183,135,071 |
Contact: John S. D’Orazio
President and CEO
Telephone: 540-777-3815