RGC Resources, Inc. Reports Record Earnings

ROANOKE, Va., Nov. 16, 2016 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ:RGCO) announced record consolidated Company earnings of $5,806,866 or $1.22 per share for the fiscal year ended September 30, 2016.  This compares to earnings of $5,094,415 or $1.08 per share for the year ended September 30, 2015.  CEO John D'Orazio stated, "The increase in earnings is attributable to improved utility margins associated with our infrastructure replacement programs and customer growth, and our investment in the Mountain Valley Pipeline (MVP)."  D'Orazio further commented, "The Company will continue to invest over the next 4-5 years in infrastructure replacement programs to enhance the safety and reliability of our gas distribution system for our utility subsidiary, Roanoke Gas Company.  Our investment in the MVP will also continue.  If approved, the MVP is scheduled to be in-service at the end of 2018."

Earnings for the quarter ending September 30, 2016 were $145,561 or $0.03 per share compared to $0.01 per share for the quarter ended September 30, 2015.  D'Orazio attributed the higher quarterly earnings primarily to higher utility margins, increased overhead capitalization and the MVP investment.

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.  Past performance is not necessarily a predictor of future results.

Summary financial statements for the fourth quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
    Three Months Ended September 30,   Twelve Months Ended September 30,
    2016   2015   2016   2015
Revenues   $ 9,980,265     $ 9,733,404     $ 59,063,291     $ 68,189,607  
Cost of sales   4,115,076     4,324,712     27,498,377     37,983,174  
Gross margin   5,865,189     5,408,692     31,564,914     30,206,433  
Equity in earnings of MVP   56,919         152,864      
Other operating expenses, net   5,232,938     4,947,380     20,608,407     20,429,037  
Interest expense   415,721     371,340     1,636,321     1,512,419  
Income (loss) before income taxes   273,449     89,972     9,473,050     8,264,977  
Income tax expense (benefit)   127,888     54,217     3,666,184     3,170,562  
Net income (loss)   $ 145,561     $ 35,755     $ 5,806,866     $ 5,094,415  
Net earnings per share of common stock:                
Basic   $ 0.03     $ 0.01     $ 1.22     $ 1.08  
Diluted   $ 0.03     $ 0.01     $ 1.22     $ 1.08  
Cash dividends per common share   $ 0.2025     $ 0.1925     $ 0.810     $ 0.770  
Weighted average number of common shares outstanding:                
Basic   4,784,457     4,737,307     4,766,604     4,728,210  
Diluted   4,794,244     4,739,745     4,773,175     4,731,676  
                         

Condensed Consolidated Balance Sheets
(Unaudited)
 
    September 30,
Assets   2016   2015
Current assets   $ 15,482,324     $ 16,149,822  
Total property, plant and equipment, net   132,128,138     118,629,552  
Other assets   17,942,387     11,067,820  
Total Assets   $ 165,552,849     $ 145,847,194  
Liabilities and Stockholders' Equity        
Current liabilities   $ 28,497,053     $ 23,202,984  
Long-term debt, net of unamortized debt issuance costs   33,636,051     30,316,573  
Deferred credits and other liabilities   47,752,673     39,486,646  
Total Liabilities   109,885,777     93,006,203  
Stockholders' Equity   55,667,072     52,840,991  
Total Liabilities and Stockholders' Equity   $ 165,552,849     $ 145,847,194  
                 
Contact:          John S. D'OrazioPresident and CEOTelephone: 540-777-3815