GlobeNewswire Inc | Nov 16, 2020 05:00PM EST

November 16, 2020

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

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