RGC Resources, Inc. Reports 2020 Earnings
ROANOKE, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $10,564,534 or $1.30 per share for the fiscal year ended September 30, 2020. This compares to earnings of $8,698,412 or $1.08 per share for the year ended September 30, 2019. CEO Paul Nester stated, “Our mission statement requires us to create value for shareholders, employees and the communities in which we serve through superior customer service and prudent investments. Despite unprecedented challenges and circumstances, we continue to achieve that mission in 2020. The increase in 2020 earnings is attributable to improved utility margins associated with our infrastructure replacement programs, implementation of new non-gas rates, customer growth, and the ongoing investment in the Mountain Valley Pipeline (MVP).” Nester further commented, “We are committed to safely and reliably serving our communities and we will continue to seek opportunities that increase shareholder value.”
The Company accelerated the recovery of certain regulatory assets and made one-time maintenance investments in the fourth quarter. Accordingly, the Company experienced a net loss for the quarter ending September 30, 2020 of $329,296 or $0.04 per share compared to net income of $455,605 or $0.06 per share for the quarter ended September 30, 2019.
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, | ||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||
| Operating revenues | $ | 9,780,289 | $ | 9,851,869 | $ | 63,075,391 | $ | 68,026,525 | |||||
| Operating expenses | 10,679,365 | 9,361,167 | 50,557,209 | 56,431,061 | |||||||||
| Operating income (loss) | (899,076 | ) | 490,702 | 12,518,182 | 11,595,464 | ||||||||
| Equity in earnings of unconsolidated affiliate | 1,326,621 | 981,931 | 4,814,874 | 3,020,348 | |||||||||
| Other income, net | 108,205 | 110,254 | 636,296 | 351,882 | |||||||||
| Interest expense | 989,477 | 983,422 | 4,099,158 | 3,618,551 | |||||||||
| Income (loss) before income taxes | (453,727 | ) | 599,465 | 13,870,194 | 11,349,143 | ||||||||
| Income tax expense (benefit) | (124,431 | ) | 143,860 | 3,305,660 | 2,650,731 | ||||||||
| Net income (loss) | $ | (329,296 | ) | $ | 455,605 | $ | 10,564,534 | $ | 8,698,412 | ||||
| Net earnings (loss) per share of common stock: | |||||||||||||
| Basic | $ | (0.04 | ) | $ | 0.06 | $ | 1.30 | $ | 1.08 | ||||
| Diluted | $ | (0.04 | ) | $ | 0.06 | $ | 1.30 | $ | 1.08 | ||||
| Cash dividends per common share | $ | 0.175 | $ | 0.165 | $ | 0.700 | $ | 0.660 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 8,156,023 | 8,069,934 | 8,125,938 | 8,039,484 | |||||||||
| Diluted | 8,156,023 | 8,102,334 | 8,146,666 | 8,078,950 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| September 30, | |||||||||||||
| Assets | 2020 | 2019 | |||||||||||
| Current assets | $ | 14,436,561 | $ | 16,385,192 | |||||||||
| Utility plant, net | 198,445,093 | 182,002,956 | |||||||||||
| Other assets | 68,797,853 | 59,965,548 | |||||||||||
| Total Assets | $ | 281,679,507 | $ | 258,353,696 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities | $ | 16,570,742 | $ | 21,633,064 | |||||||||
| Long-term debt, net of unamortized debt issuance costs | 123,819,631 | 103,371,358 | |||||||||||
| Deferred credits and other liabilities | 52,401,157 | 50,252,882 | |||||||||||
| Total Liabilities | 192,791,530 | 175,257,304 | |||||||||||
| Stockholders' Equity | 88,887,977 | 83,096,392 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 281,679,507 | $ | 258,353,696 | |||||||||
| Contact: | Randall P. Burton, II Vice President and CFO | |
| Telephone: | 540-777-3997 |
