ROANOKE, Va., Nov. 23, 2009 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $4,869,010 or $2.19 per average share outstanding for the fiscal year ended September 30, 2009. This compares to consolidated earnings of $4,221,134 or $1.92 per average share outstanding for the year ended September 30, 2008, and reflects an earnings per share increase of 14 percent. President, Chairman and CEO John Williamson attributed the improvement in earnings to improvement in gross margins and lower interest expense.
Net income for the three months ended September 30, 2009 was $138,764 or $0.06 per average share outstanding compared to a loss of $78,171 or $0.04 per average share outstanding for the quarter ended September 30, 2008. The majority of the Company's sales occur in the winter months and as a result, the Company's third and fourth quarters normally reflect earnings losses. Williamson attributed the positive earnings in the fourth quarter of this year primarily to reduced depreciation expense as a result of updated depreciation rates applied to natural gas distribution facilities.
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 fourth quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
2009 2008 2009 2008
------------------------ ------------------------
Revenues $ 8,731,787 $ 9,178,906 $82,184,473 $94,636,826
Cost of sales 4,099,333 4,342,349 55,108,549 68,723,214
----------- ----------- ----------- -----------
Gross Margin 4,632,454 4,836,557 27,075,924 25,913,612
Other operating
expenses 3,938,286 4,535,390 17,301,499 17,040,964
Interest expense 463,413 459,815 1,918,106 2,033,082
----------- ----------- ----------- -----------
Income (loss) from
continuing
operations
before income
taxes 230,755 (158,648) 7,856,319 6,839,566
Income tax expense
(benefit) from
continuing
operations 91,991 (80,477) 2,987,309 2,581,742
----------- ----------- ----------- -----------
Income (loss) from
continuing
operations 138,764 (78,171) 4,869,010 4,257,824
Loss from
discontinued
operations, net
of income taxes -- -- -- (36,690)
----------- ----------- ----------- -----------
Net income (loss) 138,764 (78,171) 4,869,010 4,221,134
=========== =========== =========== ===========
Basic earnings per
share of common
stock:
Income (loss)
from continuing
operations $ 0.06 $ (0.04) $ 2.19 $ 1.94
Discontinued
operations -- -- -- (0.02)
----------- ----------- ----------- -----------
Net income
(loss) $ 0.06 $ (0.04) $ 2.19 $ 1.92
=========== =========== =========== ===========
Diluted earnings
per share of
common stock:
Income (loss)
from continuing
operations $ 0.06 $ (0.04) $ 2.18 $ 1.93
Discontinued
operations -- -- -- (0.02)
----------- ----------- ----------- -----------
Net income
(loss) $ 0.06 $ (0.04) $ 2.18 $ 1.91
=========== =========== =========== ===========
Cash dividends
declared per
common share $ 0.3200 $ 0.3125 $ 1.2800 $ 1.2500
=========== =========== =========== ===========
Weighted average
number of common
shares outstanding:
Basic 2,235,878 2,209,205 2,223,727 2,201,263
Diluted 2,242,861 2,209,205 2,231,040 2,211,226
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
Assets 2009 2008
------------ ------------
Current assets $ 34,117,578 $ 38,411,852
Total property, plant and equipment, net 78,509,170 75,608,072
Other assets 6,175,144 4,107,790
------------ ------------
Total Assets $118,801,892 $118,127,714
============ ============
Liabilities and Stockholders' Equity
Current liabilities $ 21,294,542 $ 31,615,687
Long-term debt 28,000,000 23,000,000
Deferred credits and other liabilities 24,707,479 19,788,969
------------ ------------
Total Liabilities 74,002,021 74,404,656
Stockholders' Equity 44,799,871 43,723,058
------------ ------------
Total Liabilities and Stockholders'
Equity $118,801,892 $118,127,714
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