GlobeNewswire Inc | Aug 3, 2020 04:45PM EDT

August 03, 2020

ROANOKE, Va., Aug. 03, 2020 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. This compares to consolidated earnings of $1,138,555 or $0.14 per diluted share for the quarter ended June 30, 2019. CEO Paul Nester stated, We experienced earnings growth driven primarily by improved utility margins, net of prior year rate case estimates, and the investment in the Mountain Valley Pipeline (MVP).

Earnings for the twelve months ended June 30, 2020 were $11,349,435 or $1.40 per diluted share outstanding compared to $8,927,266 or $1.11 per diluted share for the twelve months ended June 30, 2019. Nester attributed the significant increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, implementation of the new non-gas rates, and the investment in the MVP.

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.

Net income for the three months ended June 30, 2020 is not indicative of the results to be expected for the fiscal year ending September 30, 2020 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. Additionally, the COVID-19 pandemic creates significant economic uncertainty for the remainder of fiscal 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, 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 third quarter and twelve months are as follows:

RGC Resources, Inc. and SubsidiariesCondensed Consolidated Statements of Income(Unaudited) Three Months Ended Twelve Months Ended June 30, June 30, 2020 2019 2020 2019 Operating $ 11,071,918 $ 11,682,950 $ 63,146,971 $ 68,145,798revenuesOperating 9,736,255 10,045,893 49,239,011 56,326,695expensesOperating 1,335,663 1,637,057 13,907,960 11,819,103incomeEquity inearnings of 1,205,574 777,193 4,470,184 2,391,549unconsolidatedaffiliateOther income 52,556 (5,967 ) 638,345 393,190(expense), netInterest 986,203 925,698 4,093,103 3,267,271expenseIncome before 1,607,590 1,482,585 14,923,386 11,336,571income taxesIncome tax 401,012 344,030 3,573,951 2,409,305expense Net income $ 1,206,578 $ 1,138,555 $ 11,349,435 $ 8,927,266 Net earningsper share of common stock:Basic $ 0.15 $ 0.14 $ 1.40 $ 1.11Diluted $ 0.15 $ 0.14 $ 1.40 $ 1.11 Cash dividendsper common $ 0.175 $ 0.165 $ 0.690 $ 0.650share Weighted average number of common shares outstanding:Basic 8,143,887 8,051,944 8,104,298 8,019,728Diluted 8,159,324 8,088,270 8,129,737 8,063,073

Condensed Consolidated Balance Sheets (Unaudited) June 30,Assets 2020 2019Current assets $ 12,545,512 $ 13,256,420 Total utility plant, net 194,049,965 177,816,330 Other assets 66,745,281 53,350,288 Total Assets $ 273,340,758 $ 244,423,038 Liabilities and Stockholders' Equity Current liabilities $ 15,070,172 $ 23,546,484 Long-term debt, net 116,346,967 90,470,806 Deferred credits and other liabilities 51,672,467 45,668,813 Total Liabilities 183,089,606 159,686,103 Stockholders' Equity 90,251,152 84,736,935 Total Liabilities and Stockholders' $ 273,340,758 $ 244,423,038 Equity

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