RGC Resources, Inc. Reports Second Quarter Earnings

Monday, 10. May 2021 23:00

ROANOKE, Va., May 10, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,767,478 or $0.58 per share for the quarter ended March 31, 2021. This compares to consolidated earnings of $5,680,316 or $0.70 per share for the quarter ended March 31, 2020. CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs. The overall earnings decline was primarily attributable to the cessation of the non-cash MVP AFUDC beginning January 1, 2021.”

Earnings for the twelve months ending March 31, 2021 were $10,368,023 or $1.27 per share outstanding compared to $11,281,412 or $1.40 per share for the twelve months ended March 31, 2020. Nester attributed the earnings decline to rate case final order adjustments in the first half of fiscal 2020, one-time maintenance investments and COVID-19 related bad-debt expense in the fourth quarter of fiscal 2020 as well as the non-cash MVP AFUDC change in the second quarter of fiscal 2021.

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.

Net income for the three months ended March 31, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2021 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. Net income for the remainder of fiscal 2021 is expected to be lower than the corresponding period in 2020.

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 second quarter and twelve months are as follows:



RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
         
  Three Months Ended Twelve Months Ended
  March 31, March 31,
   2021   2020  2021  2020
         
Operating revenues $28,253,662  $22,437,731 $68,622,886 $63,758,003
Operating expenses  21,154,236   15,438,115  55,505,486  49,548,649
Operating income  7,099,426   6,999,616  13,117,400  14,209,354
Equity in earnings (loss) of unconsolidated affiliate (3,797)  1,188,593  3,885,081  4,041,803
Other income, net  287,548   317,892  778,335  579,822
Interest expense  1,007,764   1,038,293  4,003,273  4,032,598
Income before income taxes  6,375,413   7,467,808  13,777,543  14,798,381
Income tax expense  1,607,935   1,787,492  3,409,520  3,516,969
         
Net income $4,767,478  $5,680,316 $10,368,023 $11,281,412
         
Net earnings per share of common stock:        
  Basic $0.58  $0.70 $1.27 $1.40
  Diluted $0.58  $0.70 $1.27 $1.39
         
Cash dividends per common share$0.185  $0.175 $0.720 $0.680
         
Weighted average number of common shares outstanding:      
   Basic  8,217,822   8,122,157  8,171,202  8,081,438
   Diluted  8,230,650   8,144,963  8,185,332  8,112,308
         
         
         
Condensed Consolidated Balance Sheets  
(Unaudited)  
         
    March 31,  
Assets    2021  2020  
Current assets   $16,563,212 $16,603,503  
Utility plant, net    203,698,440  189,667,211  
Other assets    71,902,386  64,317,462  
         
  Total Assets   $292,164,038 $270,588,176  
         
Liabilities and Stockholders' Equity       
Current liabilities   $20,775,066 $17,172,195  
Long-term debt, net    120,770,429  112,231,649  
Deferred credits and other liabilities   53,043,935  50,866,985  
   Total Liabilities    194,589,430  180,270,829  
Stockholders' Equity    97,574,608  90,317,347  
         
  Total Liabilities and Stockholders' Equity  $292,164,038 $270,588,176  
         
         



Contact:   Paul W. Nester
  President and CEO
Telephone:   540-777-3837


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