RGC Resources, Inc. First Quarter Financial Results

By GlobeNewswire,  February 04, 2014, 09:00:00 AM EDT


ROANOKE, Va., Feb. 4, 2014 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $1,722,788 or $0.37 per average share outstanding for the quarter ended December 31, 2013. This compares to consolidated earnings of $1,554,153 or $0.33 per average share outstanding for the quarter ended December 31, 2012. CFO Paul Nester attributed the higher earnings to improved utility margins resulting from higher heating sales volume.

Earnings for the twelve months ending December 31, 2013 were $4,430,687 or $0.94 per share compared to $4,015,986 or $0.86 per share for the twelve months ended December 31, 2012. Nester attributed the increase in earnings to higher heating sales volumes and unit margin.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company 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 December 31, 2013 are not indicative of the results to be expected for the fiscal year ending September 30, 2014 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 first quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
  Three Months Ended Twelve Months Ended
  December 31, December 31,
  2013 2012 2013 2012
         
Revenues  $ 20,011,194  $ 18,746,592  $ 64,470,268  $ 59,047,103
Cost of sales  11,808,202  10,810,109  36,600,868  32,307,150
Gross margin  8,202,992  7,936,483  27,869,400  26,739,953
Other operating expenses  4,955,481  4,969,350  18,854,084  18,425,085
Interest expense  464,453  459,461  1,833,091  1,831,347
Income before income taxes  2,783,058  2,507,672  7,182,225  6,483,521
Income tax expense  1,060,270  953,519  2,751,538  2,467,535
         
Net income  $ 1,722,788  $ 1,554,153  $ 4,430,687  $ 4,015,986
         
Net earnings per share of common stock:        
Basic  $ 0.37  $ 0.33  $ 0.94  $ 0.86
Diluted  $ 0.37  $ 0.33  $ 0.94  $ 0.86
         
Cash dividends per common share  $ 0.1850  $ 1.1800  $ 0.7250  $ 1.7050
         
Weighted average number of common shares outstanding:        
Basic 4,710,467 4,677,841  4,706,950  4,659,422
Diluted 4,710,599 4,677,841  4,707,205  4,661,565
 
Condensed Consolidated Balance Sheets
(Unaudited)
 
  December 31,
Assets 2013 2012
Current assets  $ 25,201,737  $ 27,855,754
Total property, plant and equipment, net  100,780,577  91,984,682
Other assets  4,541,108  8,650,084
     
Total Assets  $ 130,523,422  $ 128,490,520
     
Liabilities and Stockholders' Equity    
Current liabilities  $ 35,653,937  $ 31,273,411
Long-term debt  11,400,000  13,000,000
Deferred credits and other liabilities  32,929,594  36,783,200
Total Liabilities  79,983,531  81,056,611
Stockholders' Equity  50,539,891  47,433,909
     
Total Liabilities and Stockholders' Equity  $ 130,523,422  $ 128,490,520
CONTACT: Paul W. Nester
         Vice President and CFO
         540-777-3837
Source: RGC Resources, Inc.

This article appears in: News Headlines

Referenced Stocks: RGCO


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