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RGC Resources, Inc. Reports Third Quarter Earnings

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ROANOKE, Va., Aug. 04, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $610,840 or $0.07 per diluted share for the quarter ended June 30, 2021. This compares to consolidated earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs. The overall earnings decline was primarily attributable to the significantly lower non-cash MVP equity in earnings.”

Earnings for the twelve months ending June 30, 2021 were $9,772,285 or $1.19 per diluted share outstanding compared to $11,349,435 or $1.40 per diluted share for the twelve months ended June 30, 2020. Nester attributed the earnings decline in trailing twelve-month net income to lower non-cash MVP equity in earnings, COVID-19 related bad debt expense, and one time maintenance investments in the fourth quarter of fiscal 2020.

RGC Resources, Inc. provides energy and related products and services through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.

Net income for the three months ended June 30, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2021 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. Net income for fiscal 2021 is expected to be lower than 2020.

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, and research and development activities. 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 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,

2021

2020

2021

2020

Operating revenues

$

14,048,846

$

11,071,918

$

71,599,814

$

63,146,971

Operating expenses

12,506,513

9,736,255

58,275,744

49,239,011

Operating income

1,542,333

1,335,663

13,324,070

13,907,960

Equity in earnings of unconsolidated affiliate

133,864

1,205,574

2,813,371

4,470,184

Other income, net

130,186

52,556

855,965

638,345

Interest expense

1,000,238

986,203

4,017,308

4,093,103

Income before income taxes

806,145

1,607,590

12,976,098

14,923,386

Income tax expense

195,305

401,012

3,203,813

3,573,951

Net income

$

610,840

$

1,206,578

$

9,772,285

$

11,349,435

Net earnings per share of common stock:

Basic

$

0.07

$

0.15

$

1.19

$

1.40

Diluted

$

0.07

$

0.15

$

1.19

$

1.40

Cash dividends per common share

$

0.185

$

0.175

$

0.730

$

0.690

Weighted average number of common shares outstanding:

Basic

8,260,579

8,143,887

8,200,295

8,104,298

Diluted

8,273,203

8,159,324

8,213,716

8,129,737

Condensed Consolidated Balance Sheets

(Unaudited)

June 30,

Assets

2021

2020

Current assets

$

14,862,881

$

12,545,512

Utility plant, net

207,993,519

194,049,965

Other assets

74,005,332

66,745,281

Total Assets

$

296,861,732

$

273,340,758

Liabilities and Stockholders' Equity

Current liabilities

$

21,605,817

$

15,070,172

Long-term debt, net

123,151,387

116,346,967

Deferred credits and other liabilities

53,265,790

51,672,467

Total Liabilities

198,022,994

183,089,606

Stockholders' Equity

98,838,738

90,251,152

Total Liabilities and Stockholders' Equity

$

296,861,732

$

273,340,758


Contact:

Paul W. Nester

President and CEO

Telephone:

540-777-3837


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