RGC Resources, Inc. Reports 16% Increase in First Quarter Earnings
07 February 2017 - 8:30AM
RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company
earnings of $2,232,218 or $0.47 per average share outstanding for
the quarter ended December 31, 2016. This compares to
consolidated earnings of $1,922,790 or $0.40 per average share
outstanding for the quarter ended December 31, 2015. CEO John
D’Orazio attributed the 16% increase in earnings to improved
utility margins associated with the company’s infrastructure
replacement programs, increased gas volumes attributed to customer
growth, and the investment in the Mountain Valley Pipeline (MVP).
Earnings for the twelve months ending December 31,
2016 were $6,116,294 or $1.28 per share compared to $5,092,829 or
$1.08 per share for the twelve months ended December 31,
2015. D’Orazio attributed the 20% increase in earnings to
improved utility margins associated with the company’s
infrastructure replacement programs, increased gas volumes
attributed to customer growth, and the investment in the MVP.
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.
Net income for the three months ended December 31,
2016 is not indicative of the results to be expected for the fiscal
year ending September 30, 2017 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, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Revenues |
$ |
18,788,585 |
|
$ |
16,010,056 |
|
$ |
61,841,820 |
|
$ |
62,949,598 |
Cost of sales |
|
9,397,680 |
|
|
7,271,940 |
|
|
29,624,117 |
|
|
32,627,192 |
Gross margin |
|
9,390,905 |
|
|
8,738,116 |
|
|
32,217,703 |
|
|
30,322,406 |
Equity in earnings of
MVP |
|
84,540 |
|
|
21,537 |
|
|
215,867 |
|
|
21,537 |
Other operating
expenses, net |
|
5,412,342 |
|
|
5,243,937 |
|
|
20,776,812 |
|
|
20,559,304 |
Interest expense |
|
458,521 |
|
|
408,356 |
|
|
1,686,486 |
|
|
1,523,708 |
Income before income
taxes |
|
3,604,582 |
|
|
3,107,360 |
|
|
9,970,272 |
|
|
8,260,931 |
Income tax expense |
|
1,372,364 |
|
|
1,184,570 |
|
|
3,853,978 |
|
|
3,168,102 |
Net income |
$ |
2,232,218 |
|
$ |
1,922,790 |
|
$ |
6,116,294 |
|
$ |
5,092,829 |
Net earnings per share
of common stock: |
|
|
|
|
Basic |
$ |
0.47 |
|
$ |
0.40 |
|
$ |
1.28 |
|
$ |
1.08 |
Diluted |
$ |
0.46 |
|
$ |
0.40 |
|
$ |
1.28 |
|
$ |
1.07 |
Cash dividends per
common share |
$ |
0.2175 |
|
$ |
0.2025 |
|
$ |
0.8250 |
|
$ |
0.7800 |
Weighted average number
of common shares outstanding: |
|
|
|
|
Basic |
|
4,796,396 |
|
|
4,748,279 |
|
|
4,778,699 |
|
|
4,734,962 |
Diluted |
|
4,807,031 |
|
|
4,752,179 |
|
|
4,787,124 |
|
|
4,738,380 |
|
|
|
|
Condensed Consolidated Balance Sheets |
(Unaudited) |
|
|
|
|
|
|
December 31, |
Assets |
|
|
|
2016 |
|
|
2015 |
Current assets |
|
|
$ |
21,606,504 |
|
$ |
21,104,828 |
Total property, plant
and equipment, net |
|
|
|
135,780,493 |
|
|
121,308,922 |
Other assets |
|
|
|
18,574,746 |
|
|
12,490,905 |
Total
Assets |
|
|
$ |
175,961,743 |
|
$ |
154,904,655 |
Liabilities and
Stockholders’ Equity |
|
|
|
Current
liabilities |
|
|
$ |
28,756,950 |
|
$ |
27,614,707 |
Long-term debt |
|
|
|
41,135,426 |
|
|
31,854,285 |
Deferred credits and
other liabilities |
|
|
|
48,788,676 |
|
|
41,371,592 |
Total
Liabilities |
|
|
|
118,681,052 |
|
|
100,840,584 |
Stockholders’
Equity |
|
|
|
57,280,691 |
|
|
54,064,071 |
Total
Liabilities and Stockholders’ Equity |
|
|
$ |
175,961,743 |
|
$ |
154,904,655 |
|
|
Contact:
Paul W. Nester
Vice President and CFO
Telephone: 540-777-3837
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