RGC Resources, Inc. Third Quarter Financial Results


ROANOKE, Va., Aug. 12, 2009 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $137,394 or $0.06 per average share outstanding for the quarter ended June 30, 2009. This compares to consolidated earnings of $351,378 or $0.16 per average share outstanding for the quarter ended June 30, 2008. President, Chairman and CEO John Williamson attributed the decrease in earnings to a decline in gross margins and higher operation and accelerated maintenance costs.

Earnings per share for the twelve months ending June 30, 2009 were $4,652,075 or $2.10 per share compared to $1.85 per share for the twelve months ended June 30, 2008. Earnings for the twelve months ended June 30, 2009 were positively impacted by improved margins.

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 third 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
                            June 30,                   June 30,
                        2009         2008         2009         2008
                    ------------------------- -------------------------

 Revenues           $10,706,989  $20,152,634  $82,631,592  $96,238,089
 Cost of sales        5,691,875   15,097,224   55,351,565   70,670,086
                    ------------ ------------ ------------ ------------
 Gross margin         5,015,114    5,055,410   27,280,027   25,568,003
 Other operating
  expenses            4,337,833    4,004,135   17,898,603   17,030,743
 Interest expense       460,463      490,756    1,914,508    2,039,187
                    ------------ ------------ ------------ ------------
 Income from
  continuing
  operations
  before income
  taxes                 216,818      560,519    7,466,916    6,498,073
 Income tax expense
  from continuing
  operations             79,424      209,141    2,814,841    2,430,617
                    ------------ ------------ ------------ ------------
 Net income from
  continuing
  operations            137,394      351,378    4,652,075    4,067,456
 Net income (loss)
  from discontinued
  operations, net
  of income taxes            --           --           --      (17,095)
                    ------------ ------------ ------------ ------------
 Net income         $   137,394  $   351,378  $ 4,652,075  $ 4,050,361
                    ============ ============ ============ ============

 Basic earnings
  per share of
  common stock:
   Income from
    continuing
    operations      $      0.06  $      0.16  $      2.10  $      1.86
   Discontinued
    operations               --           --           --        (0.01)
                    ------------ ------------ ------------ ------------
   Net income       $      0.06  $      0.16  $      2.10  $      1.85
                    ============ ============ ============ ============

 Diluted earnings
  per share of
  common stock:
   Income from
    continuing
    operations      $      0.06  $      0.16  $      2.09  $      1.85
   Discontinued
    operations               --           --           --        (0.01)
                    ------------ ------------ ------------ ------------
   Net income       $      0.06  $      0.16  $      2.09  $      1.84
                    ============ ============ ============ ============

 Cash dividends
  per common share  $    0.3200  $    0.3125  $    1.2725  $    1.2425
                    ============ ============ ============ ============

 Weighted average
  number of common
  shares
  outstanding:
   Basic              2,227,469    2,205,733     2,217,004    2,193,397
   Diluted            2,234,748    2,215,424     2,225,034    2,203,972

                  Condensed Consolidated Balance Sheets
                              (Unaudited)

                                                    June 30,
                                              2009           2008
                                          ------------   ------------
 Assets 
 Current assets                           $ 35,435,671   $ 37,650,146
 Total property, plant and equipment,
  net                                       77,067,348     74,955,171
 Other assets                                3,879,136      3,373,391
                                          ------------   ------------

   Total Assets                           $116,382,155   $115,978,708
                                          ============   ============

 Liabilities and Stockholders' Equity
 Current liabilities                      $ 21,631,337   $ 29,844,168
 Long-term debt                             28,000,000     23,000,000
 Deferred credits and other liabilities     20,686,723     18,260,768
                                          ------------   ------------
   Total Liabilities                        70,318,060     71,104,936
 Stockholders' Equity                       46,064,095     44,873,772
                                          ------------   ------------

   Total Liabilities and Stockholders'
    Equity                                $116,382,155   $115,978,708
                                          ============   ============


            

Contact Data

GlobeNewswire

Recommended Reading