Exhibit 99.1
| | |
| Contact: | | John B. Williamson, III |
| | Chairman, President and CEO |
| Telephone: | | (540) 777-3810 |
FOR IMMEDIATE RELEASE
RGC RESOURCES, INC.
THIRD QUARTER FINANCIAL RESULTS
ROANOKE, Va. (Aug. 11, 2008)—RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $351,378 or $0.16 per average shares outstanding on continuing and total operations for the quarter ended June 30, 2008. This compares to consolidated earnings of $236,520 or $0.11 per average shares outstanding on continuing operations and consolidated loss of ($223,066) or ($0.10) per average shares outstanding on total operations for the same quarter last year. John Williamson, Chairman, President and CEO, attributed the improvement in earnings on continuing operations to improved natural gas sales margins.
Earnings per share for the twelve months ending June 30, 2008 were $1.86 on continuing operations and $1.85 for total operations compared to $1.83 for continuing operations and $1.87 for total operations for the twelve months ended June 30, 2007.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke 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 quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
| | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2008 | | 2007 | | | 2008 | | | 2007 | |
Revenues | | $ | 20,152,634 | | $ | 15,131,375 | | | $ | 96,238,089 | | | $ | 90,344,403 | |
Cost of sales | | | 15,097,224 | | | 10,184,097 | | | | 70,670,086 | | | | 65,389,927 | |
| | | | | | | | | | | | | | | |
Gross margin | | | 5,055,410 | | | 4,947,278 | | | | 25,568,003 | | | | 24,954,476 | |
Other operating expenses | | | 4,004,135 | | | 4,111,102 | | | | 17,030,743 | | | | 16,812,520 | |
Interest expense | | | 490,756 | | | 458,679 | | | | 2,039,187 | | | | 1,919,141 | |
| | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 560,519 | | | 377,497 | | | | 6,498,073 | | | | 6,222,815 | |
Income tax expense from continuing operations | | | 209,141 | | | 140,977 | | | | 2,430,617 | | | | 2,282,097 | |
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Net income from continuing operations | | | 351,378 | | | 236,520 | | | | 4,067,456 | | | | 3,940,718 | |
Net income (loss) from discontinued operations, net of income taxes | | | — | | | (459,586 | ) | | | (17,095 | ) | | | 73,669 | |
| | | | | | | | | | | | | | | |
Net income (loss) | | | 351,378 | | | (223,066 | ) | | | 4,050,361 | | | | 4,014,387 | |
Other comprehensive income (loss), net of tax | | | 465,890 | | | 300,307 | | | | (655,337 | ) | | | (109,460 | ) |
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Comprehensive income | | $ | 817,268 | | $ | 77,241 | | | $ | 3,395,024 | | | $ | 3,904,927 | |
| | | | | | | | | | | | | | | |
Basic earnings per share of common stock: | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.16 | | $ | 0.11 | | | $ | 1.86 | | | $ | 1.83 | |
Discontinued operations | | | — | | | (0.21 | ) | | | (0.01 | ) | | | 0.04 | |
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Net income (loss) | | $ | 0.16 | | $ | (0.10 | ) | | $ | 1.85 | | | $ | 1.87 | |
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Diluted earnings per share of common stock: | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.16 | | $ | 0.11 | | | $ | 1.85 | | | $ | 1.82 | |
Discontinued operations | | | — | | | (0.21 | ) | | | (0.01 | ) | | | 0.04 | |
| | | | | | | | | | | | | | | |
Net income (loss) | | $ | 0.16 | | $ | (0.10 | ) | | $ | 1.84 | | | $ | 1.86 | |
| | | | | | | | | | | | | | | |
Cash dividends per common share | | $ | 0.3125 | | $ | 0.3050 | | | $ | 1.2425 | | | $ | 1.2150 | |
| | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | |
Basic | | | 2,205,733 | | | 2,167,655 | | | | 2,193,397 | | | | 2,152,169 | |
Diluted | | | 2,215,424 | | | 2,167,655 | | | | 2,203,972 | | | | 2,162,654 | |
Condensed Consolidated Balance Sheets
(Unaudited)
| | | | | | |
| | | June 30, |
| | | 2008 | | 2007 |
Assets | | | | | | |
Current assets | | $ | 37,650,146 | | $ | 40,644,826 |
Total property, plant and equipment, net | | | 74,955,171 | | | 72,006,619 |
Other assets | | | 3,373,391 | | | 379,451 |
| | | | | | |
Total Assets | | $ | 115,978,708 | | $ | 113,030,896 |
| | | | | | |
Liabilities and Stockholders’ Equity | | | | | | |
Current liabilities | | $ | 29,844,168 | | $ | 27,394,477 |
Long-term debt | | | 23,000,000 | | | 28,000,000 |
Deferred credits and other liabilities | | | 18,260,768 | | | 14,000,617 |
| | | | | | |
Total Liabilities | | | 71,104,936 | | | 69,395,094 |
Stockholders’ Equity | | | 44,873,772 | | | 43,635,802 |
| | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 115,978,708 | | $ | 113,030,896 |
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