RGC Resources, Inc. Second Quarter Financial Results

Thu May 3, 2012 3:30pm EDT

* Reuters is not responsible for the content in this press release.

ROANOKE, Va., May 3, 2012 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,483,307 or $0.54 per average share outstanding for the quarter ended March 31, 2012. This compares to consolidated earnings of $2,519,814 or $0.55 per average share outstanding for the quarter ended March 31, 2011. President, Chairman and CEO John Williamson attributed the slight decrease in earnings to a reduction in gross margin from lower space heating sales volumes as a result of a significantly warmer winter season.

Earnings for the twelve months ending March 31, 2012 were $4,482,514 or $0.97 per share compared to $0.96 per share for the twelve months ended March 31, 2011.

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 second quarter and twelve months are as follows:

         
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
         
  Three Months Ended Twelve Months Ended
  March 31, March 31,
  2012 2011 2012 2011
         
Revenues  $ 21,290,227  $ 27,072,569  $ 60,967,946  $ 68,651,011
Cost of sales  12,171,705  17,871,203  33,881,161  41,941,900
Gross margin  9,118,522  9,201,366  27,086,785  26,709,111
Other operating expenses, net  4,657,091  4,680,406  18,030,722  17,890,175
Interest expense  456,710  456,285  1,829,953  1,832,991
Income before income taxes  4,004,721  4,064,675  7,226,110  6,985,945
Income tax expense  1,521,414  1,544,861  2,743,596  2,634,629
         
Net income   $ 2,483,307  $ 2,519,814  $ 4,482,514  $ 4,351,316
         
Net earnings per share of common stock:      
 Basic  $ 0.54  $ 0.55  $ 0.97  $ 0.96
 Diluted  $ 0.53  $ 0.55  $ 0.97  $ 0.95
         
Cash dividends per common share  $ 0.175  $ 0.170  $ 0.690  $ 0.670
         
Weighted average number of common shares outstanding:    
 Basic 4,638,889 4,584,030  4,623,863  4,553,091
 Diluted 4,644,251 4,592,665  4,629,861  4,564,023
         
     
 Condensed Consolidated Balance Sheets
 (Unaudited)
     
  March 31,
Assets 2012 2011
Current assets  $ 35,344,882  $ 38,460,809
Total property, plant and equipment, net  87,865,291  82,930,920
Other assets  7,658,663  7,444,689
     
 Total Assets  $ 130,868,836  $ 128,836,418
     
Liabilities and Stockholders' Equity    
Current liabilities  $ 31,562,630  $ 35,170,572
Long-term debt  13,000,000  13,000,000
Deferred credits and other liabilities  34,250,524  30,036,398
 Total Liabilities  78,813,154  78,206,970
Stockholders' Equity  52,055,682  50,629,448
     
 Total Liabilities and Stockholders' Equity  $ 130,868,836  $ 128,836,418
     
CONTACT: John B. Williamson, III
         President, Chairman and CEO
         540-777-3810
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.