NEWS RELEASE
RGC RESOURCES, INC.
| | |
| Release Date: | | December 20, 2004 |
| Contact: | | John B. Williamson, III |
| | | President, Chairman and CEO |
| Telephone: | | 540-777-3810 |
RGC RESOURCES, INC.
ANNUAL FINANCIAL RESULTS
RGC Resources, Inc. announced fiscal year earnings of $12,934,013 or $6.33 per diluted share outstanding for the year ended September 30, 2004, compared to $3,528,389 or $1.77 per diluted share for the year ended September 30, 2003. The Company also announced 4th quarter earnings of $8,699,022 or $4.24 per diluted share for the quarter ended September 30, 2004, compared to a loss of $588,294 or ($0.32) per diluted share for the quarter ended September 30, 2003. President, Chairman and CEO John Williamson attributed the improvement in earnings to a gain of $9,504,329 or $4.65 per diluted share on the sale of propane assets in the fourth quarter.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia and West Virginia through its operating subsidiaries including
Roanoke Gas Company, Bluefield Gas Company, Diversified Energy Company, and RGC Ventures of Virginia, Inc.
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 Company’s actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company’s forward-looking statements.
Summary financial statements for the fourth quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings and Comprehensive Income
(Unaudited)
| | | | | | | | | | | | | | | |
| | | Three Months Ended September 30,
| | | Twelve Months Ended September 30,
| |
| | | 2004
| | | 2003
| | | 2004
| | 2003
| |
Revenues | | $ | 15,324,644 | | | $ | 13,521,280 | | | $ | 103,147,064 | | $ | 88,833,953 | |
Cost of sales | | | 11,281,295 | | | | 9,861,361 | | | | 79,754,400 | | | 66,915,728 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Gross margin | | | 4,043,349 | | | | 3,659,919 | | | | 23,392,664 | | | 21,918,225 | |
Other operating expenses | | | 4,746,946 | | | | 3,797,863 | | | | 18,218,178 | | | 16,785,100 | |
Interest expense | | | 466,317 | | | | 499,352 | | | | 1,883,736 | | | 1,964,969 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Income (loss) from continuing operations before income taxes | | | (1,169,914 | ) | | | (637,296 | ) | | | 3,290,750 | | | 3,168,156 | |
Income tax expense (benefit) from continuing operations | | | (493,475 | ) | | | (298,293 | ) | | | 1,223,948 | | | 1,169,377 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Net income (loss) from continuing operations | | | (676,439 | ) | | | (339,003 | ) | | | 2,066,802 | | | 1,998,779 | |
Income (loss) from discontinued operations, net of income taxes | | | 9,375,461 | | | | (249,291 | ) | | | 10,867,211 | | | 1,529,610 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Net income (loss) | | | 8,699,022 | | | | (588,294 | ) | | | 12,934,013 | | | 3,528,389 | |
Other comprehensive income (loss), net of tax | | | 221 | | | | 35,685 | | | | 109,040 | | | (288,793 | ) |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Comprehensive income (loss) | | $ | 8,699,243 | | | $ | (552,609 | ) | | $ | 13,043,053 | | $ | 3,239,596 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Basic earnings per share of common stock: | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | (0.35 | ) | | $ | (0.18 | ) | | $ | 1.02 | | $ | 1.01 | |
Discontinued operations | | | 4.62 | | | | (0.13 | ) | | | 5.36 | | | 0.77 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Net income (loss) | | $ | 4.27 | | | $ | (0.31 | ) | | $ | 6.38 | | $ | 1.78 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Diluted earnings per share of common stock: | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | (0.34 | ) | | $ | (0.19 | ) | | $ | 1.01 | | $ | 1.00 | |
Discontinued operations | | | 4.58 | | | | (0.13 | ) | | | 5.32 | | | 0.77 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Net income (loss) | | $ | 4.24 | | | $ | (0.32 | ) | | $ | 6.33 | | $ | 1.77 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Cash dividends per common share | | $ | 4.795 | | | $ | 0.285 | | | $ | 5.670 | | $ | 1.140 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
|
Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | 2,027,908 | | | 1,983,970 | |
Diluted | | | | | | | | | | | 2,042,312 | | | 1,989,460 | |
Condensed Consolidated Balance Sheets
(Unaudited)
| | | | | | |
| | | September 30, 2004
| | September 30, 2003
|
Assets | | | | | | |
Current assets | | $ | 43,807,941 | | $ | 37,730,013 |
Total property, plant and equipment, net | | | 70,608,106 | | | 65,864,966 |
Other assets | | | 556,509 | | | 769,754 |
| | |
|
| |
|
|
Total Assets | | $ | 114,972,556 | | $ | 104,364,733 |
| | |
|
| |
|
|
Liabilities and Stockholders’ Equity | | | | | | |
Current liabilities | | $ | 40,746,456 | | $ | 30,695,469 |
Long-term debt | | | 26,000,000 | | | 30,219,987 |
Deferred credits and other liabilities | | | 11,604,578 | | | 9,591,663 |
| | |
|
| |
|
|
Total Liabilities | | | 78,351,034 | | | 70,507,119 |
Stockholders�� Equity | | | 36,621,522 | | | 33,857,614 |
| | |
|
| |
|
|
Total Liabilities and Stockholders’ Equity | | $ | 114,972,556 | | $ | 104,364,733 |
| | |
|
| |
|
|
