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Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
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Release Date: |
August 4, 2021 |
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Contact: |
Paul W. Nester |
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President and CEO |
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Telephone: |
540-777-3837 |
RGC RESOURCES, INC. REPORTS
THIRD QUARTER EARNINGS
ROANOKE, Va. (August 4, 2021)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $610,840 or $0.07 per diluted share for the quarter ended June 30, 2021. This compares to consolidated earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs. The overall earnings decline was primarily attributable to the significantly lower non-cash MVP equity in earnings.”
Earnings for the twelve months ending June 30, 2021 were $9,772,285 or $1.19 per diluted share outstanding compared to $11,349,435 or $1.40 per diluted share for the twelve months ended June 30, 2020. Nester attributed the earnings decline in trailing twelve-month net income to lower non-cash MVP equity in earnings, COVID-19 related bad debt expense, and one time maintenance investments in the fourth quarter of fiscal 2020.
RGC Resources, Inc. provides energy and related products and services through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.
Net income for the three months ended June 30, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2021 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. Net income for fiscal 2021 is expected to be lower than 2020.
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, and research and development activities. 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 third quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
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Three Months Ended June 30, |
Twelve months ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Operating revenues |
$ | 14,048,846 | $ | 11,071,918 | $ | 71,599,814 | $ | 63,146,971 | ||||||||
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Operating expenses |
12,506,513 | 9,736,255 | 58,275,744 | 49,239,011 | ||||||||||||
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Operating income |
1,542,333 | 1,335,663 | 13,324,070 | 13,907,960 | ||||||||||||
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Equity in earnings of unconsolidated affiliate |
133,864 | 1,205,574 | 2,813,371 | 4,470,184 | ||||||||||||
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Other income, net |
130,186 | 52,556 | 855,965 | 638,345 | ||||||||||||
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Interest expense |
1,000,238 | 986,203 | 4,017,308 | 4,093,103 | ||||||||||||
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Income before income taxes |
806,145 | 1,607,590 | 12,976,098 | 14,923,386 | ||||||||||||
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Income tax expense |
195,305 | 401,012 | 3,203,813 | 3,573,951 | ||||||||||||
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Net income |
$ | 610,840 | $ | 1,206,578 | $ | 9,772,285 | $ | 11,349,435 | ||||||||
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Net earnings per share of common stock: |
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Basic |
$ | 0.07 | $ | 0.15 | $ | 1.19 | $ | 1.40 | ||||||||
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Diluted |
$ | 0.07 | $ | 0.15 | $ | 1.19 | $ | 1.40 | ||||||||
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Cash dividends per common share |
$ | 0.185 | $ | 0.175 | $ | 0.730 | $ | 0.690 | ||||||||
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Weighted average number of common shares outstanding: |
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Basic |
8,260,579 | 8,143,887 | 8,200,295 | 8,104,298 | ||||||||||||
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Diluted |
8,273,203 | 8,159,324 | 8,213,716 | 8,129,737 | ||||||||||||
Condensed Consolidated Balance Sheets
(Unaudited)
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June 30, |
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Assets |
2021 |
2020 |
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Current assets |
$ | 14,862,881 | $ | 12,545,512 | ||||
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Utility plant, net |
207,993,519 | 194,049,965 | ||||||
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Other assets |
74,005,332 | 66,745,281 | ||||||
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Total Assets |
$ | 296,861,732 | $ | 273,340,758 | ||||
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Liabilities and Stockholders’ Equity |
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Current liabilities |
$ | 21,605,817 | $ | 15,070,172 | ||||
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Long-term debt, net |
123,151,387 | 116,346,967 | ||||||
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Deferred credits and other liabilities |
53,265,790 | 51,672,467 | ||||||
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Total Liabilities |
198,022,994 | 183,089,606 | ||||||
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Stockholders’ Equity |
98,838,738 | 90,251,152 | ||||||
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Total Liabilities and Stockholders’ Equity |
$ | 296,861,732 | $ | 273,340,758 | ||||
