RGC Resources, Inc. First Quarter Financial Results
February 03, 2015 at 04:24 pm EST
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ROANOKE, Va., Feb. 3, 2015 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $1,924,376 or $0.41 per average share outstanding for the quarter ended December 31, 2014. This compares to consolidated earnings of $1,722,788 or $0.37 per average share outstanding for the quarter ended December 31, 2013. CFO Paul Nester attributed the higher earnings to improved utility margins.
Earnings for the twelve months ending December 31, 2014 were $4,910,028 or $1.04 per share compared to $4,430,687 or $0.94 per share for the twelve months ended December 31, 2013. Nester attributed the increase in earnings to higher heating sales volumes and unit margins.
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.
Net income for the three months ended December 31, 2014 are not indicative of the results to be expected for the fiscal year ending September 30, 2015 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 first quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2014
2013
2014
2013
Revenues
$ 21,250,065
$ 20,011,194
$ 76,255,005
$ 64,470,268
Cost of sales
12,627,922
11,808,202
46,498,765
36,600,868
Gross margin
8,622,143
8,202,992
29,756,240
27,869,400
Other operating expenses, net
5,113,670
4,955,481
20,020,297
18,854,084
Interest expense
397,067
464,453
1,759,615
1,833,091
Income before income taxes
3,111,406
2,783,058
7,976,328
7,182,225
Income tax expense
1,187,030
1,060,270
3,066,300
2,751,538
Net income
$ 1,924,376
$ 1,722,788
$ 4,910,028
$ 4,430,687
Net earnings per share of common stock:
Basic
$ 0.41
$ 0.37
$ 1.04
$ 0.94
Diluted
$ 0.41
$ 0.37
$ 1.04
$ 0.94
Cash dividends per common share
$ 0.1925
$ 0.1850
$ 0.7475
$ 0.7250
Weighted average number of common shares outstanding:
Basic
4,721,490
4,710,467
4,718,257
4,706,950
Diluted
4,725,597
4,710,599
4,720,153
4,707,205
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
Assets
2014
2013
Current assets
$ 27,183,120
$ 25,201,737
Total property, plant and equipment, net
111,919,607
100,780,577
Other assets
9,602,396
4,541,108
Total Assets
$ 148,705,123
$ 130,523,422
Liabilities and Stockholders' Equity
Current liabilities
$ 26,954,902
$ 35,653,937
Long-term debt
30,500,000
11,400,000
Deferred credits and other liabilities
38,156,238
32,929,594
Total Liabilities
95,611,140
79,983,531
Stockholders' Equity
53,093,983
50,539,891
Total Liabilities and Stockholders' Equity
$ 148,705,123
$ 130,523,422
CONTACT: Paul W. Nester
Vice President and CFO
Telephone: 540-777-3837
RGC Resources, Inc. is an energy services company. It is primarily engaged in the sale and distribution of natural gas to residential, commercial and industrial customers in Roanoke, Virginia, and the surrounding localities, through its subsidiary, Roanoke Gas Company (Roanoke Gas). Roanoke Gas also provides certain unregulated services. Roanoke Gas maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial, and industrial users in its service territory. Roanoke Gas owns and operates about six metering stations through, which it measures and regulates the gas being delivered by its suppliers. These stations are located at various points throughout its distribution system. Roanoke Gas owns a liquefied natural gas storage facility located in its service territory that has the capacity to store up to 200,000 dekatherms (DTH) of natural gas. It has approximately 1,168 miles of transmission and distribution pipeline.