GlobeNewswire Inc | Feb 9, 2021 05:00PM EST

February 09, 2021

ROANOKE, Va., Feb. 09, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,723,263 or $0.58 per diluted share for the quarter ended December 31, 2020. This compares to consolidated earnings of $4,006,936 or $0.49 per diluted share for the quarter ended December 31, 2019. CEO Paul Nester stated, We experienced solid earnings growth from improved utility margins associated with infrastructure replacement programs and customer growth as well as lower operating expenses.

Earnings for the twelve months ending December 31, 2020 were $11,280,861 or $1.38 per diluted share compared to $10,271,186 or $1.27 per diluted share for the twelve months ended December 31, 2019. Nester attributed the increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, customer growth, and non-cash equity earnings.

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.

Net income for the three months ended December 31, 2020 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. 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 SubsidiariesCondensed Consolidated Statements of Income(Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Operating $ 19,517,017 $ 19,785,453 $ 62,806,955 $ 66,595,231revenuesOperating 13,935,630 14,703,474 49,789,365 53,182,010expensesOperating 5,581,387 5,081,979 13,017,590 13,413,221incomeEquity inearnings of 1,356,683 1,094,086 5,077,471 3,551,385unconsolidatedaffiliateOther income, 330,026 157,643 808,679 383,639netInterest 1,019,829 1,085,185 4,033,802 3,886,954expenseIncome before 6,248,267 5,248,523 14,869,938 13,461,291income taxesIncome tax 1,525,004 1,241,587 3,589,077 3,190,105expense Net income $ 4,723,263 $ 4,006,936 $ 11,280,861 $ 10,271,186 Net earnings per share of common stock:Basic $ 0.58 $ 0.50 $ 1.38 $ 1.27Diluted $ 0.58 $ 0.49 $ 1.38 $ 1.27 Cash dividendsper common $ 0.185 $ 0.175 $ 0.710 $ 0.670share Weighted average number of common shares outstanding:Basic 8,167,793 8,081,837 8,147,544 8,059,170Diluted 8,182,183 8,113,785 8,164,072 8,094,616



Condensed ConsolidatedBalance Sheets(Unaudited) December 31,Assets 2020 2019Current assets $ 20,903,352 $ 21,239,364Utility plant, net 201,784,393 185,391,008Other assets 71,666,584 61,552,241 Total Assets $ 294,354,329 $ 268,182,613 Liabilities and Stockholders' Equity Current liabilities $ 22,526,868 $ 17,503,920Long-term debt, net 126,141,704 113,772,779Deferred credits and other liabilities 53,136,216 50,546,779Total Liabilities 201,804,788 181,823,478Stockholders' Equity 92,549,541 86,359,135 Total Liabilities and Stockholders' Equity $ 294,354,329 $ 268,182,613



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