RGC Resources, Inc. Announces Third Quarter Financial Results

Thu Aug 2, 2012 4:02pm EDT

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

ROANOKE, Va., Aug. 2, 2012 (GLOBE NEWSWIRE) -- Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $52,298 or $0.01 per average share outstanding for the quarter ended June 30, 2012. This compares to consolidated earnings of $184,617 or $0.04 per average share outstanding for the quarter ended June 30, 2011. President, Chairman and CEO John Williamson attributed the lower earnings to a decline in space heating sales volumes as a result of warm weather.

Earnings for the trailing twelve months ending June 30, 2012 were $4,350,195 or $0.94 per share compared to $4,522,467 or $0.99 per share for the trailing twelve months ended June 30, 2011. Williamson attributed the lower year-over-year earnings primarily to the effect of significantly warmer weather during the winter heating season and higher depreciation expense associated with the Company's pipeline replacement program.

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 third quarter and trailing twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
         
  Three Months Ended Twelve Months Ended
  June 30, June 30,
  2012 2011 2012 2011
         
Revenues  $ 9,679,742  $ 11,107,485  $ 59,540,203  $ 69,424,195
Cost of sales  4,704,364  6,042,498  32,543,027  42,361,406
Gross margin  4,975,378  5,064,987  26,997,176  27,062,789
Other operating expenses, net  4,427,862  4,310,446  18,148,138  17,964,119
Interest expense  456,313  456,314  1,829,952  1,833,754
Income before income taxes  91,203  298,227  7,019,086  7,264,916
Income tax expense  38,905  113,610  2,668,891  2,742,449
         
Net income   $ 52,298  $ 184,617  $ 4,350,195  $ 4,522,467
         
Net earnings per share of common stock:        
Basic  $ 0.01  $ 0.04  $ 0.94  $ 0.99
Diluted  $ 0.01  $ 0.04  $ 0.94  $ 0.99
         
Cash dividends per common share  $ 0.175  $ 0.170  $ 0.695  $ 0.675
         
Weighted average number of common shares outstanding:        
Basic 4,654,311 4,604,428  4,636,265  4,572,585
Diluted 4,656,883 4,611,961  4,640,961  4,582,255
         
         
         
 Condensed Consolidated Balance Sheets
 (Unaudited)
         
    June 30,  
Assets   2012 2011  
Current assets    $ 31,846,628  $ 34,210,736  
Total property, plant and equipment, net    89,437,962  84,261,056  
Other assets    7,641,938  7,428,175  
         
Total Assets    $ 128,926,528  $ 125,899,967  
         
Liabilities and Stockholders' Equity        
Current liabilities    $ 30,055,364  $ 32,591,556  
Long-term debt    13,000,000  13,000,000  
Deferred credits and other liabilities    34,265,206  30,137,282  
Total Liabilities    77,320,570  75,728,838  
Stockholders' Equity    51,605,958  50,171,129  
         
Total Liabilities and Stockholders' Equity    $ 128,926,528  $ 125,899,967  
         
CONTACT: John B. Williamson, III
         President, Chairman and CEO
         540-777-3810
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