RGC Resources, Inc. Second Quarter Financial Results


ROANOKE, Va., May 6, 2010 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,753,018 or $1.22 per average share outstanding for the quarter ended March 31, 2010. This compares to consolidated earnings of $2,643,693 or $1.19 per average share outstanding for the quarter ended March 31, 2009. Earnings modestly improved primarily associated with a decline in depreciation rates on distribution plant.

Earnings for the twelve months ending March 31, 2010 were $4,859,456 or $2.17 per share compared to $2.20 per share for the twelve months ended March 31, 2009. Earnings for the twelve months ended March 31, 2010 were modestly impacted by a decline in industrial sales associated with the weak economy.

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
(Unaudited)
         
  Three Months Ended March 31, Twelve Months Ended March 31,
  2010 2009 2010 2009
         
Revenues  $ 31,640,321  $ 34,286,502  $ 74,232,007  $ 92,077,237
Cost of sales  22,271,228  24,954,183  47,422,347  64,756,914
Gross margin  9,369,093  9,332,319  26,809,660  27,320,323
Other operating expenses, net  4,474,488  4,605,348  17,127,911  17,564,905
Interest expense  455,871  462,910  1,844,644  1,944,801
Income before income taxes  4,438,734  4,264,061  7,837,105  7,810,617
Income tax expense  1,685,716  1,620,368  2,977,649  2,944,558
         
Net income   $ 2,753,018  $ 2,643,693  $ 4,859,456  $ 4,866,059
         
Net earnings per share of common stock:        
 Basic  $ 1.22  $ 1.19  $ 2.17  $ 2.20
 Diluted  $ 1.22  $ 1.19  $ 2.16  $ 2.19
         
Cash dividends per common share  $ 0.330  $ 0.320  $ 1.300  $ 1.265
         
Weighted average number of common shares outstanding:        
 Basic 2,251,922 2,219,068  2,239,383  2,211,594
 Diluted 2,259,641 2,226,156  2,246,940  2,220,233
 Condensed Consolidated Balance Sheets
 (Unaudited)
       
    March 31,
Assets   2010 2009
Current assets    $ 36,457,949  $ 37,284,664
Total property, plant and equipment, net    80,178,014  76,456,297
Other assets    5,960,741  3,976,337
       
 Total Assets    $ 122,596,704  $ 117,717,298
       
Liabilities and Stockholders' Equity      
Current liabilities    $ 35,676,987  $ 23,455,841
Long-term debt    13,000,000  28,000,000
Deferred credits and other liabilities    25,327,599  20,492,567
 Total Liabilities    74,004,586  71,948,408
Stockholders' Equity    48,592,118  45,768,890
       
 Total Liabilities and Stockholders' Equity    $ 122,596,704  $ 117,717,298


            

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