GlobeNewswire Inc | May 10, 2021 05:00PM EDT

May 10, 2021

ROANOKE, Va., May 10, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,767,478 or $0.58 per share for the quarter ended March 31, 2021. This compares to consolidated earnings of $5,680,316 or $0.70 per share for the quarter ended March 31, 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 cessation of the non-cash MVP AFUDC beginning January 1, 2021.

Earnings for the twelve months ending March 31, 2021 were $10,368,023 or $1.27 per share outstanding compared to $11,281,412 or $1.40 per share for the twelve months ended March 31, 2020. Nester attributed the earnings decline to rate case final order adjustments in the first half of fiscal 2020, one-time maintenance investments and COVID-19 related bad-debt expense in the fourth quarter of fiscal 2020 as well as the non-cash MVP AFUDC change in the second quarter of fiscal 2021.

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 March 31, 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 the remainder of fiscal 2021 is expected to be lower than the corresponding period in 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 second quarter and twelve months are as follows:

RGC Resources, Inc. and SubsidiariesCondensed Consolidated Statements of Income(Unaudited) Three Months Ended Twelve Months Ended March 31, March 31, 2021 2020 2021 2020 Operating $ 28,253,662 $ 22,437,731 $ 68,622,886 $ 63,758,003revenuesOperating 21,154,236 15,438,115 55,505,486 49,548,649expensesOperating 7,099,426 6,999,616 13,117,400 14,209,354incomeEquity inearnings (loss)of (3,797 ) 1,188,593 3,885,081 4,041,803unconsolidatedaffiliateOther income, 287,548 317,892 778,335 579,822netInterest 1,007,764 1,038,293 4,003,273 4,032,598expenseIncome before 6,375,413 7,467,808 13,777,543 14,798,381income taxesIncome tax 1,607,935 1,787,492 3,409,520 3,516,969expense Net income $ 4,767,478 $ 5,680,316 $ 10,368,023 $ 11,281,412 Net earningsper share of common stock:Basic $ 0.58 $ 0.70 $ 1.27 $ 1.40Diluted $ 0.58 $ 0.70 $ 1.27 $ 1.39 Cash dividends $ 0.185 $ 0.175 $ 0.720 $ 0.680per common share Weighted average number of common shares outstanding:Basic 8,217,822 8,122,157 8,171,202 8,081,438Diluted 8,230,650 8,144,963 8,185,332 8,112,308 Condensed Consolidated Balance Sheets (Unaudited) March 31, Assets 2021 2020 Current $ 16,563,212 $ 16,603,503 assetsUtility 203,698,440 189,667,211 plant, netOther assets 71,902,386 64,317,462 Total $ 292,164,038 $ 270,588,176 Assets Liabilities andStockholders' EquityCurrent $ 20,775,066 $ 17,172,195 liabilitiesLong-term 120,770,429 112,231,649 debt, netDeferred creditsand other 53,043,935 50,866,985 liabilitiesTotal 194,589,430 180,270,829 LiabilitiesStockholders' 97,574,608 90,317,347 Equity TotalLiabilities and $ 292,164,038 $ 270,588,176 Stockholders'Equity

Contact: Paul W. Nester President and CEOTelephone: 540-777-3837