RGC Resources, Inc. Second Quarter Financial Results


ROANOKE, Va., May 12, 2009 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,643,693 or $1.19 per average share outstanding for the quarter ended March 31, 2009. This compares to consolidated earnings of $2,418,609 or $1.10 per average share outstanding for the quarter ended March 31, 2008. President, Chairman and CEO John Williamson attributed the increase in earnings to improved gross margins.

Earnings per share for the twelve months ending March 31, 2009 were $4,866,059 or $2.20 per share compared to $1.59 per share for the twelve months ended March 31, 2008. Earnings for the twelve months ended March 31, 2009 were positively impacted by improved margins and the absence of losses associated with the Company's formerly owned Bluefield Gas Company operations.

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.

Summary financial statements for the second quarter and twelve months are as follows:



                 RGC Resources, Inc. and Subsidiaries
 Condensed Consolidated Statements of Income and Comprehensive Income
                              (Unaudited)


                          Three Months Ended     Twelve Months Ended
                              March 31,               March 31,
                          2009         2008       2009         2008
                       ----------------------- -----------------------

 Revenues              $34,286,502 $39,564,378 $92,077,237 $91,216,830
 Cost of sales          24,954,183  30,911,562  64,756,914  65,756,959
                       ----------- ----------- ----------- -----------
 Gross margin            9,332,319   8,652,816  27,320,323  25,459,871
 Other operating
  expenses               4,605,348   4,221,079  17,564,905  17,137,710
 Interest expense          462,910     518,029   1,944,801   2,007,110
                       ----------- ----------- ----------- -----------
 Income from continuing
  operations before
  income taxes           4,264,061   3,913,708   7,810,617   6,315,051
 Income tax expense
  from continuing
  operations             1,620,368   1,495,099   2,944,558   2,362,453
                       ----------- ----------- ----------- -----------
 Net income from
  continuing operations  2,643,693   2,418,609   4,866,059   3,952,598
 Net loss from
  discontinued
  operations, net of
  income taxes                  --          --          --    (476,681)
                       ----------- ----------- ----------- -----------
 Net income            $ 2,643,693 $ 2,418,609 $ 4,866,059 $ 3,475,917
                       =========== =========== =========== ===========

 Basic earnings per
  share of common
  stock:
   Income from
    continuing
    operations         $      1.19 $      1.10 $      2.20 $      1.81
   Discontinued
    operations                  --          --          --       (0.22)
                       ----------- ----------- ----------- -----------
  Net income           $      1.19 $      1.10 $      2.20 $      1.59
                       =========== =========== =========== ===========

 Diluted earnings per
  share of common
  stock:
   Income from
    continuing
    operations         $      1.19 $      1.10 $      2.19 $      1.80
   Discontinued
    operations                  --          --          --       (0.22)
                       ----------- ----------- ----------- -----------
  Net income           $      1.19 $      1.10 $      2.19 $      1.58
                       =========== =========== =========== ===========

 Cash dividends per
  common share         $    0.3200 $    0.3125 $    1.2650 $    1.2350
                       =========== =========== =========== ===========

 Weighted average
  number of common
  shares outstanding:
   Basic                 2,219,068   2,198,624   2,211,594   2,183,930
   Diluted               2,226,156   2,208,143   2,220,233   2,194,532




                 Condensed Consolidated Balance Sheets
                              (Unaudited)

                                                    March 31,
                                               2009           2008
 Assets                                    ------------   ------------
 Current assets                            $ 37,284,664   $ 38,213,104
 Total property, plant and equipment, net    76,456,297     74,118,513
 Other assets                                 3,976,337      3,474,118
                                           ------------   ------------

   Total Assets                            $117,717,298   $115,805,735
                                           ============   ============

 Liabilities and Stockholders' Equity
 Current liabilities                       $ 23,455,841   $ 30,212,434
 Long-term debt                              28,000,000     23,000,000
 Deferred credits and other liabilities      20,492,567     18,027,180
                                           ------------   ------------
   Total Liabilities                         71,948,408     71,239,614
 Stockholders' Equity                        45,768,890     44,566,121
                                           ------------   ------------

   Total Liabilities and Stockholders'
    Equity                                 $117,717,298   $115,805,735
                                           ============   ============


            

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