RGC Resources, Inc. Reports 2020 Earnings

Rhea-AI Summary

RGC Resources, Inc. (NASDAQ: RGCO) reported consolidated earnings of $10,564,534 or $1.30 per share for the fiscal year ended September 30, 2020, up from $8,698,412 or $1.08 per share in 2019. The growth in earnings was driven by improved utility margins due to infrastructure upgrades, new non-gas rates, and customer expansion. Despite a net loss of $329,296 or $0.04 per share for Q4 2020, the company remains committed to enhancing shareholder value and providing reliable energy services.

Positive

• Earnings increased to $10,564,534 or $1.30 per share for FY 2020.
• Earnings growth due to improved utility margins and new non-gas rates.
• Customer growth and investments in the Mountain Valley Pipeline contributed positively.

Negative

• Net loss of $329,296 or $0.04 per share in Q4 2020 compared to a net income of $455,605 or $0.06 per share in Q4 2019.

ROANOKE, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $10,564,534 or $1.30 per share for the fiscal year ended September 30, 2020. This compares to earnings of $8,698,412 or $1.08 per share for the year ended September 30, 2019. CEO Paul Nester stated, “Our mission statement requires us to create value for shareholders, employees and the communities in which we serve through superior customer service and prudent investments. Despite unprecedented challenges and circumstances, we continue to achieve that mission in 2020. The increase in 2020 earnings is attributable to improved utility margins associated with our infrastructure replacement programs, implementation of new non-gas rates, customer growth, and the ongoing investment in the Mountain Valley Pipeline (MVP).” Nester further commented, “We are committed to safely and reliably serving our communities and we will continue to seek opportunities that increase shareholder value.” 

The Company accelerated the recovery of certain regulatory assets and made one-time maintenance investments in the fourth quarter. Accordingly, the Company experienced a net loss for the quarter ending September 30, 2020 of $329,296 or $0.04 per share compared to net income of $455,605 or $0.06 per share for the quarter ended September 30, 2019.

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							Twelve Months Ended
		September 30,							September 30,
			2020				2019			2020			2019
Operating revenues		$	9,780,289			$	9,851,869		$	63,075,391		$	68,026,525
Operating expenses			10,679,365				9,361,167			50,557,209			56,431,061
Operating income (loss)			(899,076	)			490,702			12,518,182			11,595,464
Equity in earnings of unconsolidated affiliate			1,326,621				981,931			4,814,874			3,020,348
Other income, net			108,205				110,254			636,296			351,882
Interest expense			989,477				983,422			4,099,158			3,618,551
Income (loss) before income taxes			(453,727	)			599,465			13,870,194			11,349,143
Income tax expense (benefit)			(124,431	)			143,860			3,305,660			2,650,731
Net income (loss)		$	(329,296	)		$	455,605		$	10,564,534		$	8,698,412
Net earnings (loss) per share of common stock:
Basic		$	(0.04	)		$	0.06		$	1.30		$	1.08
Diluted		$	(0.04	)		$	0.06		$	1.30		$	1.08
Cash dividends per common share		$	0.175			$	0.165		$	0.700		$	0.660
Weighted average number of common shares outstanding:
Basic			8,156,023				8,069,934			8,125,938			8,039,484
Diluted			8,156,023				8,102,334			8,146,666			8,078,950
Condensed Consolidated Balance Sheets
(Unaudited)
						September 30,
Assets							2020			2019
Current assets						$	14,436,561		$	16,385,192
Utility plant, net							198,445,093			182,002,956
Other assets							68,797,853			59,965,548
Total Assets						$	281,679,507		$	258,353,696
Liabilities and Stockholders' Equity
Current liabilities						$	16,570,742		$	21,633,064
Long-term debt, net of unamortized debt issuance costs							123,819,631			103,371,358
Deferred credits and other liabilities							52,401,157			50,252,882
Total Liabilities							192,791,530			175,257,304
Stockholders' Equity							88,887,977			83,096,392
Total Liabilities and Stockholders' Equity						$	281,679,507		$	258,353,696

Contact:		Randall P. Burton, II Vice President and CFO
Telephone:		540-777-3997

FAQ

What are RGC Resources' earnings for FY 2020?

RGC Resources reported earnings of $10,564,534 or $1.30 per share for FY 2020.

How did RGC Resources perform in Q4 2020?

In Q4 2020, RGC Resources incurred a net loss of $329,296 or $0.04 per share.

What contributed to the earnings increase at RGC Resources?

Earnings increased due to improved utility margins, new non-gas rates, customer growth, and investments in the Mountain Valley Pipeline.

What is the stock symbol for RGC Resources?

The stock symbol for RGC Resources is RGCO.