RGCO RGC Resources Inc

RGC Resources, Inc. (NASDAQ:  RGCO) announced consolidated Company earnings of $1,138,555 or $0.14 per share for the quarter ended June 30, 2019.  This compares to earnings of $1,087,355 or $0.14 per share for the quarter ended June 30, 2018.  CEO John D’Orazio stated, “We continue to see earnings growth from improved utility margins associated with the company’s infrastructure replacement programs, implementation of the new non-gas rates, customer growth, and the investment in Mountain Valley Pipeline.”  

Earnings for the twelve months ending June 30, 2019 were $8,927,266 or $1.11 per share compared to $0.91 per share for the twelve months ended June 30, 2018.  D’Orazio attributed the increase in trailing twelve-month earnings per share primarily to improved utility margins associated with the Company’s infrastructure replacement programs, implementation of the new non-gas rates, customer growth, and the investment in the MVP.RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.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.Net income for the three months ended June 30, 2019 is not indicative of the results to be expected for the fiscal year ending September 30, 2019 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months.  Past performance is not necessarily a predictor of future results.Summary financial statements for the third quarter and twelve months are as follows:

Release Date:	July 31, 2019
Contact:	Paul W. Nester
	Vice President and CFO
Telephone:	540-777-3837

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
		Three Months Ended							Twelve Months Ended
		June 30,							June 30,
		2019				2018			2019			2018
Revenues		$	11,682,950			$	11,889,570		$	68,145,798		$	65,736,042
Operating expenses			10,045,893				10,053,980			56,326,695			54,081,653
Operating Income			1,637,057				1,835,590			11,819,103			11,654,389
Equity in earnings of MVP			777,193				245,075			2,391,549			717,254
Other income (expense), net			(5,967	)			36,857			393,190			(147,723	)
Interest expense			925,698				583,592			3,267,271			2,346,376
Income before income taxes			1,482,585				1,533,930			11,336,571			9,877,544
Income tax expense			344,030				446,575			2,409,305			3,104,912
Net income		$	1,138,555			$	1,087,355		$	8,927,266		$	6,772,632
Net earnings per share of common stock:
Basic		$	0.14			$	0.14		$	1.11		$	0.91
Diluted		$	0.14			$	0.14		$	1.11		$	0.90
Cash dividends per common share		$	0.1650			$	0.1550		$	0.6500		$	0.6100
Weighted average number of common shares outstanding:
Basic			8,051,944				7,982,354			8,019,728			7,459,005
Diluted			8,088,270				8,031,052			8,063,073			7,505,921
Condensed Consolidated Balance Sheets
(Unaudited)
						June 30,
Assets						2019			2018
Current assets						$	13,256,420		$	13,143,064
Total property, plant and equipment, net							177,816,330			161,105,263
Other assets							53,350,288			34,507,400
Total Assets						$	244,423,038		$	208,755,727
Liabilities and Stockholders' Equity
Current liabilities						$	23,546,484		$	24,554,669
Long-term debt, net							90,470,806			57,054,224
Deferred credits and other liabilities							45,668,813			47,716,465
Total Liabilities							159,686,103			129,325,358
Stockholders' Equity							84,736,935			79,430,369
Total Liabilities and Stockholders' Equity						$	244,423,038		$	208,755,727