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8-K - 8-K - RGC RESOURCES INCrgcoearningsreleaseq22015.htm


Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
 
 
 
Release Date:
  
May 4, 2015
Contact:
  
Paul W. Nester
 
  
Vice President and CFO
Telephone:
  
540-777-3837
RGC RESOURCES, INC.
SECOND QUARTER FINANCIAL RESULTS
ROANOKE, Va. (May 4, 2015)—RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $2,779,344 or $0.59 per average share outstanding for the quarter ended March 31, 2015. This compares to consolidated earnings of $2,846,795 or $0.60 per average share outstanding for the quarter ended March 31, 2014. CFO Paul Nester attributed the slight decline in earnings primarily due to lower volumes resulting from warmer weather as compared to the same period last year.
Earnings for the twelve months ending March 31, 2015 were $4,842,577 or $1.03 per share compared to $0.97 per share for the twelve months ended March 31, 2014. Nester attributed the higher year-over-year earnings primarily to improved utility margins and lower interest expense.
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 March 31, 2015 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 second quarter and twelve months are as follow:

       






RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
Three Months Ended
March 31,
 
Twelve Months Ended
March 31,
 
 
2015
 
2014
 
2015
 
2014
Revenues
 
$
26,431,729

 
$
32,699,965

 
$
69,986,769

 
$
72,994,595

Cost of sales
 
16,217,959

 
22,538,840

 
40,177,884

 
44,549,797

Gross margin
 
10,213,770

 
10,161,125

 
29,808,885

 
28,444,798

Other operating expenses, net
 
5,341,235

 
5,085,859

 
20,275,673

 
19,166,989

Interest expense
 
385,162

 
455,657

 
1,689,120

 
1,833,895

Income before income taxes
 
4,487,373

 
4,619,609

 
7,844,092

 
7,443,914

Income tax expense
 
1,708,029

 
1,772,814

 
3,001,515

 
2,865,139

Net income
 
$
2,779,344

 
$
2,846,795

 
$
4,842,577

 
$
4,578,775

Net earnings per share of common stock:
 
 
 
 
 
 
 
 
Basic
 
$
0.59

 
$
0.60

 
$
1.03

 
$
0.97

Diluted
 
$
0.59

 
$
0.60

 
$
1.03

 
$
0.97

Cash dividends per common share
 
$
0.1925

 
$
0.1850

 
$
0.7550

 
$
0.7300

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
4,724,548

 
4,713,567

 
4,720,964

 
4,709,836

Diluted
 
4,728,697

 
4,713,983

 
4,723,796

 
4,711,348


Condensed Consolidated Balance Sheets
(Unaudited)
 
 
 
March 31,
Assets
 
2015
 
2014
Current assets
 
$
20,789,027

 
$
24,084,243

Total property, plant and equipment, net
 
113,261,232

 
102,847,991

Other assets
 
9,588,656

 
4,510,842

Total Assets
 
$
143,638,915

 
$
131,443,076

Liabilities and Stockholders’ Equity
 
 
 
 
Current liabilities
 
$
19,441,313

 
$
33,875,514

Long-term debt
 
30,500,000

 
11,400,000

Deferred credits and other liabilities
 
38,555,148

 
33,364,737

Total Liabilities
 
88,496,461

 
78,640,251

Stockholders’ Equity
 
55,142,454

 
52,802,825

Total Liabilities and Stockholders’ Equity
 
$
143,638,915

 
$
131,443,076