RGC Resources, Inc. Annual And Fourth Quarter Financial Results
ROANOKE, Va., Nov. 17, 2010 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $4,445,436 or $1.97 per average share outstanding for the fiscal year ended September 30, 2010. This compares to consolidated earnings of $4,869,010 or $2.19 per average share outstanding for the year ended September 30, 2009. President, Chairman and CEO John Williamson attributed the decline in earnings to lower margins on lower natural gas prices.
The Company had a net loss of $151,328 or $0.07 per average share outstanding compared to a gain of $138,764 or $0.06 per average share outstanding for the quarter ended September 30, 2009. The majority of the Company's sales occur in the winter months and as a result, the Company's third and fourth quarters normally reflect net losses. Williamson attributed the positive earnings in the fourth quarter of the prior year to reduced depreciation expense as a result of updated depreciation rates applied to natural gas distribution facilities, with the full annual effect of the rate change recognized in the fourth quarter last year.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company and RGC Ventures of Virginia, Inc.From time to time, the Company may publish forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. Summary financial statements for the fourth quarter and twelve months are as follows:
|RGC Resources, Inc. and Subsidiaries|
|Condensed Consolidated Statements of Income|
|Three Months Ended September 30,||Twelve Months Ended September 30,|
|Revenues||$ 8,696,382||$ 8,731,787||$ 73,823,914||$ 82,184,473|
|Cost of sales||4,129,510||4,099,333||47,383,641||55,108,549|
|Other operating expenses, net||4,380,251||3,938,286||17,468,545||17,301,499|
|Income (loss) before income taxes||(272,351)||230,755||7,136,437||7,856,319|
|Income tax expense (benefit)||(121,023)||91,991||2,691,001||2,987,309|
|Net income (loss)||$ (151,328)||$ 138,764||$ 4,445,436||$ 4,869,010|
|Net earnings per share of common stock:|
|Basic||$ (0.07)||$ 0.06||$ 1.97||$ 2.19|
|Diluted||$ (0.07)||$ 0.06||$ 1.96||$ 2.18|
|Cash dividends per common share||$ 0.33||$ 0.32||$ 1.32||$ 1.28|
|Weighted average number of common shares outstanding:|
|Condensed Consolidated Balance Sheets|
|Current assets||$ 31,654,990||$ 34,117,578|
|Total property, plant and equipment, net||81,455,391||78,509,170|
|Liabilities and Stockholders' Equity|
|Current liabilities||$ 17,854,008||$ 21,294,542|
|Deferred credits and other liabilities||28,519,561||24,707,479|
|Total Liabilities and Stockholders' Equity||$120,683,316||$118,801,892|
CONTACT: RGC Resources, Inc. John B. Williamson, III, President, Chairman and CEO 540-777-3810
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