RGC Resources, Inc. Reports Third Quarter Earnings
RGC Resources, Inc. (NASDAQ: RGCO) reported consolidated earnings of $592,527 ($0.06 per share) for Q2 2022, down from $610,840 ($0.07 per share) in Q2 2021. The decline is attributed to lower non-cash MVP AFUDC income despite stronger utility margins from infrastructure programs. For the twelve months ended June 30, 2022, the net loss was $20,316,892 ($2.32 per share), with underlying net income of $9,255,083 ($1.06 per share), down from $9,772,285 ($1.19 per share) in the previous year. Management highlights the seasonal nature of earnings impacting forecasts.
- Stronger utility margins due to infrastructure replacement programs.
- Customer growth reported by the company.
- Earnings per share decreased from $0.07 to $0.06 year-over-year.
- Net loss of $20,316,892 for the twelve months ending June 30, 2022.
- Underlying net income declined from $1.19 to $1.06 per share year-over-year.
ROANOKE, Va., Aug. 08, 2022 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of
Net loss for the twelve months ended June 30, 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 and underlying net income for the three months ended June 30, 2022 is not indicative of the results to be expected for the fiscal year ending September 30, 2022 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 the Company’s Form 10-Q for the quarter ended June 30, 2022 and Item 1-A in the Company’s fiscal 2021 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 third quarter and 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, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Operating revenues | $ | 17,259,899 | $ | 14,048,846 | $ | 83,407,916 | $ | 71,599,814 | |||||
| Operating expenses | 15,619,727 | 12,506,513 | 68,390,770 | 58,275,744 | |||||||||
| Operating income | 1,640,172 | 1,542,333 | 15,017,146 | 13,324,070 | |||||||||
| Equity in earnings of unconsolidated affiliate | 235 | 133,864 | 252,721 | 2,813,371 | |||||||||
| Impairment of unconsolidated affiliates | - | - | (39,822,213 | ) | - | ||||||||
| Other income, net | 221,141 | 130,186 | 1,052,476 | 855,965 | |||||||||
| Interest expense | 1,102,214 | 1,000,238 | 4,334,968 | 4,017,308 | |||||||||
| Income (loss) before income taxes | 759,334 | 806,145 | (27,834,838 | ) | 12,976,098 | ||||||||
| Income tax expense (benefit) | 166,807 | 195,305 | (7,517,946 | ) | 3,203,813 | ||||||||
| Net income (loss) | $ | 592,527 | $ | 610,840 | $ | (20,316,892 | ) | $ | 9,772,285 | ||||
| Net earnings (loss) per share of common stock: | |||||||||||||
| Basic | $ | 0.06 | $ | 0.07 | $ | (2.32 | ) | $ | 1.19 | ||||
| Diluted | $ | 0.06 | $ | 0.07 | $ | (2.32 | ) | $ | 1.19 | ||||
| Cash dividends per common share | $ | 0.195 | $ | 0.185 | $ | 0.770 | $ | 0.730 | |||||
| Reconciliation of GAAP net income to underlying net income: | |||||||||||||
| Net income (loss) as reported | $ | 592,527 | $ | 610,840 | $ | (20,316,892 | ) | $ | 9,772,285 | ||||
| Impairment - net of income tax | - | - | 29,571,975 | - | |||||||||
| Underlying net income | $ | 592,527 | $ | 610,840 | $ | 9,255,083 | $ | 9,772,285 | |||||
| Underlying earnings per share: basic and diluted | $ | 0.06 | $ | 0.07 | $ | 1.06 | $ | 1.19 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 9,798,700 | 8,260,579 | 8,756,025 | 8,200,295 | |||||||||
| Diluted | 9,804,289 | 8,273,203 | 8,756,025 | 8,213,716 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| June 30, | |||||||||||||
| Assets | 2022 | 2021 | |||||||||||
| Current assets | $ | 35,589,886 | $ | 14,862,881 | |||||||||
| Utility plant, net | 224,145,150 | 207,993,519 | |||||||||||
| Other assets | 39,008,457 | 74,005,332 | |||||||||||
| Total Assets | $ | 298,743,493 | $ | 296,861,732 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities | $ | 21,063,473 | $ | 21,605,817 | |||||||||
| Long-term debt, net | 130,265,070 | 123,151,387 | |||||||||||
| Deferred credits and other liabilities | 41,832,326 | 53,265,790 | |||||||||||
| Total Liabilities | 193,160,869 | 198,022,994 | |||||||||||
| Stockholders' Equity | 105,582,624 | 98,838,738 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 298,743,493 | $ | 296,861,732 | |||||||||
| Contact: | Jason A. Field VP, CFO |
| Telephone: | 540-777-3997 |
FAQ
What were RGC Resources' earnings for Q2 2022?
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What is the underlying net income for RGC Resources for the twelve months ended June 30, 2022?
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