RGC Resources, Inc. Reports Record Earnings
November 15 2017 - 05:00PM
RGC Resources, Inc. (NASDAQ:RGCO) announced record consolidated
Company earnings of $6,232,865 or $0.86 per share for the fiscal
year ended September 30, 2017. This compares to earnings of
$5,806,866 or $0.81 per share for the year ended September 30,
2016. CEO John D’Orazio stated, “I am pleased to announce our
third consecutive year of record earnings. The increase in
2017 earnings is attributable to improved utility margins
associated with our infrastructure replacement programs and
customer growth, and our ongoing investment in the Mountain Valley
Pipeline (MVP).” D’Orazio further commented, “The Company
will continue to invest in infrastructure replacement programs to
enhance the safety and reliability of our gas distribution system
for our utility subsidiary, Roanoke Gas Company.”
Earnings for the quarter ending September 30,
2017 were $159,886 or $0.02 per share compared to $145,561 or $0.02
per share for the quarter ended September 30, 2016. D’Orazio
attributed the increase to higher utility margins and the MVP
investment.
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. Past performance is not
necessarily a predictor of future results.
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, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenues |
$ |
10,172,448 |
$ |
9,980,265 |
$ |
62,296,870 |
$ |
59,063,291 |
Cost of sales |
|
4,218,328 |
|
4,115,076 |
|
29,487,713 |
|
27,498,377 |
Gross margin |
|
5,954,120 |
|
5,865,189 |
|
32,809,157 |
|
31,564,914 |
Equity in earnings of
MVP |
|
131,855 |
|
56,919 |
|
421,646 |
|
152,864 |
Other operating
expenses, net |
|
5,296,926 |
|
5,232,938 |
|
21,275,294 |
|
20,608,407 |
Interest expense |
|
516,953 |
|
415,721 |
|
1,917,254 |
|
1,636,321 |
Income (loss) before
income taxes |
|
272,096 |
|
273,449 |
|
10,038,255 |
|
9,473,050 |
Income tax expense
(benefit) |
|
112,210 |
|
127,888 |
|
3,805,390 |
|
3,666,184 |
Net income (loss) |
$ |
159,886 |
$ |
145,561 |
$ |
6,232,865 |
$ |
5,806,866 |
Net earnings per share
of common stock: |
|
|
|
|
Basic |
$ |
0.02 |
$ |
0.02 |
$ |
0.86 |
$ |
0.81 |
Diluted |
$ |
0.02 |
$ |
0.02 |
$ |
0.86 |
$ |
0.81 |
Cash dividends per
common share |
$ |
0.145 |
$ |
0.135 |
$ |
0.580 |
$ |
0.540 |
Weighted average number
of common shares outstanding: |
|
|
|
|
Basic |
|
7,237,669 |
|
7,176,687 |
|
7,218,686 |
|
7,149,906 |
Diluted |
|
7,286,300 |
|
7,191,366 |
|
7,256,046 |
|
7,159,763 |
Condensed Consolidated Balance Sheets |
(Unaudited) |
|
|
|
|
September 30, |
Assets |
|
2017 |
|
2016 |
|
|
|
Current assets |
$ |
15,685,604 |
$ |
15,482,324 |
Total property, plant
and equipment, net |
|
147,927,971 |
|
132,128,138 |
Other assets |
|
19,521,496 |
|
17,942,387 |
Total
Assets |
$ |
183,135,071 |
$ |
165,552,849 |
|
|
|
Current
liabilities |
$ |
14,366,232 |
$ |
28,497,053 |
Long-term debt, net of
unamortized debt issuance costs |
|
61,312,011 |
|
33,636,051 |
Deferred credits and
other liabilities |
|
47,416,356 |
|
47,752,673 |
Total
Liabilities |
|
123,094,599 |
|
109,885,777 |
Stockholders’
Equity |
|
60,040,472 |
|
55,667,072 |
Total
Liabilities and Stockholders’ Equity |
$ |
183,135,071 |
$ |
165,552,849 |
Contact:
John S. D’Orazio
President and CEO
Telephone: 540-777-3815
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