RGC Resources, Inc. Reports First Quarter Earnings
06 February 2024 - 9:30AM
RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company
earnings of $5,019,992, or $0.50 per share, for the first quarter
ended December 31, 2023, compared to $3,256,405, or $0.33 per
share, for the fiscal quarter ended December 31, 2022. The increase
over the quarter a year ago included nearly $1.5 million in
earnings from the Company’s investment in the Mountain Valley
Pipeline, LLC (“MVP”) as well as improved utility margins.
Roanoke Gas continued to make investments in
utility infrastructure to improve system reliability and deliver
gas to new customers to drive earnings. CEO Paul Nester stated,
“Higher utility margins were welcomed in the quarter particularly
in light of inflationary pressures that will temper performance in
the coming quarters. Good weather enabling strong construction
progress of the MVP during the quarter was gratifying, and we
eagerly await for the completion of the pipeline.” Nester further
commented, “Roanoke Gas is experiencing increasing costs and has
filed for relief through a rate application with the State
Corporation Commission.”
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.
Utility margins is a non-GAAP measure defined as
utility revenues less cost of gas. Management considers this
non-GAAP measure to provide useful information to both management
and investors for purpose of such comparability and in evaluating
operating performance, but it should be considered in addition to
results prepared in accordance with GAAP and should not be
considered a substitute for, or superior to, GAAP results.
The statements in this release that are not
historical facts constitute “forward-looking statements” made
pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties.
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 any expectations
expressed in the Company’s forward-looking statements, regarding
inflation, customer growth, infrastructure investment and margins.
These risks and uncertainties include gas prices and supply,
geopolitical considerations, expectations regarding the MVP
construction and operation, and regulatory and legal challenges
along with risks included under Item 1-A in the Company’s fiscal
2023 Form 10-K. Forward-looking statements reflect the Company’s
current expectations only as of the date they are made. The Company
assumes no duty to update these statements should expectations
change or actual results differ from current expectations except as
required by applicable laws and regulations.
Past performance is not necessarily a predictor
of future results.
Summary financial statements for the first
quarter are as follows:
RGC Resources, Inc. and Subsidiaries |
Condensed Consolidated Statements of Income |
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Operating revenues |
|
$ |
24,419,352 |
|
|
$ |
33,282,335 |
|
Operating expenses |
|
|
17,767,315 |
|
|
|
27,737,850 |
|
Operating income |
|
|
6,652,037 |
|
|
|
5,544,485 |
|
Equity in earnings of unconsolidated affiliate |
|
|
1,467,835 |
|
|
|
1,232 |
|
Other income, net |
|
|
120,786 |
|
|
|
74,606 |
|
Interest expense |
|
|
1,636,273 |
|
|
|
1,369,164 |
|
Income before income taxes |
|
|
6,604,385 |
|
|
|
4,251,159 |
|
Income tax expense |
|
|
1,584,393 |
|
|
|
994,754 |
|
|
|
|
|
|
Net income |
|
$ |
5,019,992 |
|
|
$ |
3,256,405 |
|
|
|
|
|
|
Net earnings per share of common stock: |
|
|
|
|
Basic |
|
$ |
0.50 |
|
|
$ |
0.33 |
|
Diluted |
|
$ |
0.50 |
|
|
$ |
0.33 |
|
|
|
|
|
|
Cash dividends per common share |
$ |
0.2000 |
|
|
$ |
0.1975 |
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
Basic |
|
|
10,029,243 |
|
|
|
9,830,206 |
|
Diluted |
|
|
10,031,354 |
|
|
|
9,837,188 |
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets |
(Unaudited) |
|
|
|
|
|
|
|
December 31, |
Assets |
|
|
2023 |
|
|
|
2022 |
|
Current assets |
|
$ |
34,769,875 |
|
|
$ |
47,845,073 |
|
Utility property, net |
|
|
250,343,833 |
|
|
|
234,849,715 |
|
Other non-current assets |
|
|
29,589,527 |
|
|
|
25,257,374 |
|
|
|
|
|
|
Total Assets |
|
$ |
314,703,235 |
|
|
$ |
307,952,162 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities |
|
$ |
64,196,722 |
|
|
$ |
60,164,437 |
|
Long-term debt, net |
|
|
102,461,196 |
|
|
|
113,288,995 |
|
Deferred credits and other non-current liabilities |
|
44,500,714 |
|
|
|
39,608,723 |
|
Total Liabilities |
|
|
211,158,632 |
|
|
|
213,062,155 |
|
Stockholders' Equity |
|
|
103,544,603 |
|
|
|
94,890,007 |
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
$ |
314,703,235 |
|
|
$ |
307,952,162 |
|
|
|
|
|
|
Contact: |
|
Timothy J. Mulvaney |
|
|
Vice President, Treasurer and CFO |
Telephone: |
|
(540) 777-3997 |
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