RGC Resources, Inc. Reports First Quarter Earnings
RGC Resources, Inc. (NASDAQ: RGCO) reported consolidated earnings of $3,256,405, or $0.33 per share, for the quarter ending December 31, 2022, down from $3,584,529, or $0.43 per share, in the same period of 2021. The decline is attributed to increased operational costs from inflation and higher interest expenses. For the twelve months ending December 31, 2022, the net loss was $32,060,726, or $3.38 per share. Underlying net income, excluding impairment charges, was $8,850,818, or $0.93 per share, a slight decrease from $8,963,328, or $1.08 per share, in the previous year. CEO Paul Nester noted strong customer demand but acknowledged inflationary pressures.
- Strong customer demand reported by Roanoke Gas utility.
- Improved utility margins despite overall earnings decline.
- Q4 earnings per share decreased from $0.43 to $0.33 year-over-year.
- Net loss of $32,060,726 for the fiscal year ending December 31, 2022.
- Underlying net income decline from $1.08 to $0.93 per share compared to 2021.
- Operational costs increased due to inflation and higher interest rates.
ROANOKE, Va., Feb. 08, 2023 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of
Net loss for the twelve months ended December 31, 2022 was
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.
Utility margins is a non-GAAP measure defined as utility revenues less cost of gas. Underlying net income removes the effect of the after-tax impairment charge from the results of operations to enhance the comparability of financial results between periods. Management considers these non-GAAP measures to provide useful information to both management and investors for purpose of such comparability and in evaluating operating performance, but they should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for, or superior to, GAAP results.
Net income for the three months ended December 31, 2022 is not indicative of the results to be expected for the fiscal year ending September 30, 2023 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months.
The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. 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 any expectations expressed in the Company’s forward-looking statements, regarding customer growth, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations and regulatory and legal challenges and those set forth in Item 1-A of the Company’s fiscal 2022 Form 10-K. Forward-looking statements reflect the Company’s current expectations only as of the date they are made. The Company assumes no duty to update these statements should expectations change or actual results differ from current expectations except as required by applicable laws and regulations.
Past performance is not necessarily a predictor of future results.
Summary financial statements for the first quarter and twelve months are as follows:
| RGC Resources, Inc. and Subsidiaries | |||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Operating revenues | $ | 33,282,335 | $ | 23,263,080 | $ | 94,184,477 | $ | 78,920,842 | |||||
| Operating expenses | 27,737,850 | 17,884,657 | 79,101,740 | 64,345,497 | |||||||||
| Operating income | 5,544,485 | 5,378,423 | 15,082,737 | 14,575,345 | |||||||||
| Equity in earnings of unconsolidated affiliate | 1,232 | 72,127 | 2,432 | 382,998 | |||||||||
| Impairment of unconsolidated affiliates | - | - | (55,092,303 | ) | - | ||||||||
| Other income, net | 74,606 | 322,439 | 1,209,150 | 904,559 | |||||||||
| Interest expense | 1,369,164 | 1,104,856 | 4,762,237 | 4,136,912 | |||||||||
| Income (loss) before income taxes | 4,251,159 | 4,668,133 | (43,560,221 | ) | 11,725,990 | ||||||||
| Income tax expense (benefit) | 994,754 | 1,083,604 | (11,499,495 | ) | 2,762,662 | ||||||||
| Net income (loss) | $ | 3,256,405 | $ | 3,584,529 | $ | (32,060,726 | ) | $ | 8,963,328 | ||||
| Net earnings (loss) per share of common stock: | |||||||||||||
| Basic | $ | 0.33 | $ | 0.43 | $ | (3.38 | ) | $ | 1.08 | ||||
| Diluted | $ | 0.33 | $ | 0.43 | $ | (3.38 | ) | $ | 1.08 | ||||
| Cash dividends per common share | $ | 0.1975 | $ | 0.1950 | $ | 0.7825 | $ | 0.7500 | |||||
| Reconciliation of GAAP net income to underlying net income: | |||||||||||||
| Net income (loss) as reported | $ | 3,256,405 | $ | 3,584,529 | $ | (32,060,726 | ) | $ | 8,963,328 | ||||
| Impairment - net of income tax | - | - | 40,911,544 | - | |||||||||
| Underlying net income | $ | 3,256,405 | $ | 3,584,529 | $ | 8,850,818 | $ | 8,963,328 | |||||
| Underlying earnings per share: basic and diluted | $ | 0.33 | $ | 0.43 | $ | 0.93 | $ | 1.08 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 9,830,206 | 8,383,986 | 9,487,205 | 8,306,294 | |||||||||
| Diluted | 9,837,188 | 8,393,032 | 9,487,205 | 8,318,014 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| December 31, | |||||||||||||
| Assets | 2022 | 2021 | |||||||||||
| Current assets | $ | 47,845,073 | $ | 32,449,177 | |||||||||
| Utility property, net | 234,849,715 | 215,350,467 | |||||||||||
| Other non-current assets | 25,257,374 | 75,431,248 | |||||||||||
| Total Assets | $ | 307,952,162 | $ | 323,230,892 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities | $ | 60,164,437 | $ | 44,758,986 | |||||||||
| Long-term debt, net | 113,288,995 | 124,809,694 | |||||||||||
| Deferred credits and other non-current liabilities | 39,608,723 | 51,367,367 | |||||||||||
| Total Liabilities | 213,062,155 | 220,936,047 | |||||||||||
| Stockholders' Equity | 94,890,007 | 102,294,845 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 307,952,162 | $ | 323,230,892 | |||||||||
| Contact: | Jason A. Field |
| VP, CFO | |
| Telephone: | 540-777-3997 |
FAQ
What were RGC Resources' earnings for Q4 2022?
How did RGC Resources' earnings compare to Q4 2021?
What was the net loss for RGC Resources in the fiscal year 2022?
What factors contributed to the earnings decline for RGC Resources?
What is the underlying net income for RGC Resources in 2022?
