RGC Resources, Inc. Reports Second Quarter Earnings
May 01 2024 - 5:00PM
RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company
earnings of $6,443,390, or $0.63 per share, for the second quarter
ended March 31, 2024, compared to $6,341,886, or $0.64 per share,
for the fiscal quarter ended March 31, 2023. The increase over the
quarter a year ago included $1.2 million in earnings from the
Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”),
as well as improved utility margins which inflationary cost
increases largely offset.
Continued investments in utility infrastructure
at Roanoke Gas to enhance system reliability and deliver gas to new
customers contributed to earnings. CEO Paul Nester stated, “A mild
winter has led to lower revenues, and persistent inflationary cost
pressures are challenging earnings. The mild weather aided
construction progress of the MVP during the quarter, and the MVP
has filed for a final permit from FERC to allow gas to flow in the
next 30 days.” As noted above and announced last quarter, Roanoke
Gas is experiencing increasing costs and has filed for relief
through a rate application with the State Corporation Commission
with rates to go into effect July 1, 2024, subject to refund.
Through the first six months of fiscal 2024, the
Company’s net income of $11,463,382, or $1.14 per share, was up
19.4% from $9,598,291, or $0.97 per share, primarily due to
earnings from the Company’s 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.
The statements in this release that are not
historical facts constitute “forward-looking statements” made
pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties.
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 any expectations
expressed in the Company’s forward-looking statements, regarding
inflation, customer growth, infrastructure investment and margins.
These risks and uncertainties include gas prices and supply,
geopolitical considerations, expectations regarding the MVP
construction and operation, and regulatory and legal challenges
along with risks included under Item 1-A in the Company’s fiscal
2023 Form 10-K. Forward-looking statements reflect the Company’s
current expectations only as of the date they are made. The Company
assumes no duty to update these statements should expectations
change or actual results differ from current expectations except as
required by applicable laws and regulations.
Past performance is not necessarily a predictor
of future results.
Summary financial statements for the second
quarter and fiscal year to date are as follows:
RGC Resources, Inc.
and Subsidiaries |
Condensed
Consolidated Statements of Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
Operating revenues |
|
$ |
32,659,376 |
|
$ |
38,029,657 |
|
$ |
57,078,728 |
|
$ |
71,311,992 |
Operating
expenses |
|
|
24,029,667 |
|
|
28,438,235 |
|
|
41,796,982 |
|
|
56,176,085 |
Operating
income |
|
|
8,629,709 |
|
|
9,591,422 |
|
|
15,281,746 |
|
|
15,135,907 |
Equity in
earnings of unconsolidated affiliate |
|
|
1,229,384 |
|
|
2,867 |
|
|
2,697,219 |
|
|
4,099 |
Other
income, net |
|
|
89,487 |
|
|
121,824 |
|
|
210,273 |
|
|
196,430 |
Interest
expense |
|
|
1,566,613 |
|
|
1,395,862 |
|
|
3,202,886 |
|
|
2,765,026 |
Income
before income taxes |
|
|
8,381,967 |
|
|
8,320,251 |
|
|
14,986,352 |
|
|
12,571,410 |
Income tax
expense |
|
|
1,938,577 |
|
|
1,978,365 |
|
|
3,522,970 |
|
|
2,973,119 |
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
6,443,390 |
|
$ |
6,341,886 |
|
$ |
11,463,382 |
|
$ |
9,598,291 |
|
|
|
|
|
|
|
|
|
Net earnings
per share of common stock: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.63 |
|
$ |
0.64 |
|
$ |
1.14 |
|
$ |
0.97 |
Diluted |
|
$ |
0.63 |
|
$ |
0.64 |
|
$ |
1.13 |
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
Cash dividends per common share |
$ |
0.2000 |
|
$ |
0.1975 |
|
$ |
0.4000 |
|
$ |
0.3950 |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
10,170,595 |
|
|
9,911,202 |
|
|
10,099,533 |
|
|
9,870,259 |
Diluted |
|
|
10,174,006 |
|
|
9,918,708 |
|
|
10,102,284 |
|
|
9,877,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
Assets |
|
|
|
2024 |
|
2023 |
|
|
Current
assets |
|
|
|
$ |
28,525,645 |
|
$ |
32,360,035 |
|
|
Utility
property, net |
|
|
|
|
254,140,117 |
|
|
239,285,862 |
|
|
Other
non-current assets |
|
|
|
|
30,693,768 |
|
|
24,806,325 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
$ |
313,359,530 |
|
$ |
296,452,222 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
$ |
21,702,382 |
|
$ |
43,632,463 |
|
|
Long-term
debt, net |
|
|
|
|
135,916,887 |
|
|
112,762,045 |
|
|
Deferred credits and other non-current liabilities |
|
|
|
45,196,399 |
|
|
39,779,306 |
|
|
Total Liabilities |
|
|
|
|
202,815,668 |
|
|
196,173,814 |
|
|
Stockholders' Equity |
|
|
|
|
110,543,862 |
|
|
100,278,408 |
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
|
|
$ |
313,359,530 |
|
$ |
296,452,222 |
|
|
|
|
|
|
|
|
|
|
|
Contact:Timothy J. MulvaneyVice President, Treasurer and
CFOTelephone: (540) 777-3997
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