ROANOKE, Va., Aug. 9, 2011 (GLOBE NEWSWIRE) -- Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $184,617 or $0.08 per average share outstanding for the quarter ended June 30, 2011. This compares to consolidated earnings of $13,466 or $0.01 per average share outstanding for the quarter ended June 30, 2010. President, Chairman and CEO John Williamson attributed the increase in earnings to an improvement in gross margin from higher space heating sales volumes as a result of a colder spring and the implementation of a non-gas rate increase in November.
Earnings for the trailing twelve months ending June 30, 2011 were $4,522,467 or $1.98 per share compared to $4,735,528 or $2.11 per share for the trailing twelve months ended June 30, 2010. Williamson attributed the lower year-over-year earnings primarily to the effect in the prior period of a one-time credit to depreciation expense associated with implementing updated plant depreciation rates in the September 30, 2009 quarter end.
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 trailing twelve months are as follows:
| RGC Resources, Inc. and Subsidiaries | ||||
| Condensed Consolidated Statements of Income | ||||
| (Unaudited) | ||||
|
Three Months Ended June 30, |
Twelve Months Ended June 30, |
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| 2011 | 2010 | 2011 | 2010 | |
| Revenues | $ 11,107,485 | $ 10,334,301 | $ 69,424,195 | $ 73,859,319 |
| Cost of sales | 6,042,498 | 5,622,992 | 42,361,406 | 47,353,464 |
| Gross margin | 5,064,987 | 4,711,309 | 27,062,789 | 26,505,855 |
| Other operating expenses, net | 4,310,446 | 4,236,502 | 17,964,119 | 17,026,580 |
| Interest expense | 456,314 | 455,551 | 1,833,754 | 1,839,732 |
| Income before income taxes | 298,227 | 19,256 | 7,264,916 | 7,639,543 |
| Income tax expense | 113,610 | 5,790 | 2,742,449 | 2,904,015 |
| Net income | $ 184,617 | $ 13,466 | $ 4,522,467 | $ 4,735,528 |
| Net earnings per share of common stock: | ||||
| Basic | $ 0.08 | $ 0.01 | $ 1.98 | $ 2.11 |
| Diluted | $ 0.08 | $ 0.01 | $ 1.97 | $ 2.10 |
| Cash dividends per common share | $ 0.340 | $ 0.330 | $ 1.350 | $ 1.310 |
| Weighted average number of common shares outstanding: | ||||
| Basic | 2,302,214 | 2,263,119 | 2,286,293 | 2,248,271 |
| Diluted | 2,305,981 | 2,269,503 | 2,291,128 | 2,255,568 |
| Condensed Consolidated Balance Sheets | ||||
| (Unaudited) | ||||
| June 30, | ||||
| Assets | 2011 | 2010 | ||
| Current assets | $ 34,210,736 | $ 33,646,959 | ||
| Total property, plant and equipment, net | 84,261,056 | 80,823,976 | ||
| Other assets | 7,428,175 | 5,904,387 | ||
| Total Assets | $ 125,899,967 | $ 120,375,322 | ||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities | $ 32,591,556 | $ 34,131,812 | ||
| Long-term debt | 13,000,000 | 13,000,000 | ||
| Deferred credits and other liabilities | 30,137,282 | 25,588,038 | ||
| Total Liabilities | 75,728,838 | 72,719,850 | ||
| Stockholders' Equity | 50,171,129 | 47,655,472 | ||
| Total Liabilities and Stockholders' Equity | $ 125,899,967 | $ 120,375,322 | ||