Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
| Release Date: | February 9, 2011 | |
| Contact: | John B. Williamson, III | |
| President, Chairman and CEO | ||
| Telephone: | 540-777-3810 |
RGC RESOURCES, INC.
FIRST QUARTER FINANCIAL RESULTS
ROANOKE, Va. (February 9, 2011)—RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,969,364 or $0.86 per average share outstanding for the quarter ended December 31, 2010. This compares to consolidated earnings of $1,830,280 or $0.82 per average share outstanding for the quarter ended December 31, 2009. President, Chairman and CEO John Williamson attributed the increase in earnings to an increase in gross margins primarily related to higher space heating sales volumes from significantly colder weather in December and the implementation of a non-gas rate increase.
Earnings for the twelve months ending December 31, 2010 were $4,584,520 or $2.02 per share compared to $2.13 per share for the twelve months ended December 31, 2009.
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 first quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues | $ | 22,547,759 | $ | 23,152,910 | $ | 73,218,763 | $ | 76,878,188 | ||||||||
Cost of sales | 14,318,195 | 15,359,911 | 46,341,925 | 50,105,302 | ||||||||||||
Gross margin | 8,229,564 | 7,792,999 | 26,876,838 | 26,772,886 | ||||||||||||
Other operating expenses | 4,593,016 | 4,377,304 | 17,684,257 | 17,258,771 | ||||||||||||
Interest expense | 462,183 | 464,897 | 1,832,577 | 1,851,683 | ||||||||||||
Income before income taxes | 3,174,365 | 2,950,798 | 7,360,004 | 7,662,432 | ||||||||||||
Income tax expense | 1,205,001 | 1,120,518 | 2,775,484 | 2,912,301 | ||||||||||||
Net income | $ | 1,969,364 | $ | 1,830,280 | $ | 4,584,520 | $ | 4,750,131 | ||||||||
Net earnings per share of common stock: | ||||||||||||||||
Basic | $ | 0.86 | $ | 0.82 | $ | 2.02 | $ | 2.13 | ||||||||
Diluted | $ | 0.86 | $ | 0.81 | $ | 2.02 | $ | 2.12 | ||||||||
Cash dividends per common share | $ | 0.3400 | $ | 0.3300 | $ | 1.3300 | $ | 1.2900 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 2,280,207 | 2,242,404 | 2,266,659 | 2,231,272 | ||||||||||||
Diluted | 2,285,319 | 2,249,887 | 2,272,946 | 2,238,590 | ||||||||||||
Condensed Consolidated Balance Sheets
(Unaudited)
| December 31, | ||||||||
| 2010 | 2009 | |||||||
Assets | ||||||||
Current assets | $ | 36,625,660 | $ | 39,324,933 | ||||
Total property, plant and equipment, net | 82,177,598 | 79,403,402 | ||||||
Other assets | 7,542,080 | 6,107,750 | ||||||
Total Assets | $ | 126,345,338 | $ | 124,836,085 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | $ | 20,863,404 | $ | 40,582,886 | ||||
Long-term debt | 28,000,000 | 13,000,000 | ||||||
Deferred credits and other liabilities | 29,200,530 | 24,906,188 | ||||||
Total Liabilities | 78,063,934 | 78,489,074 | ||||||
Stockholders’ Equity | 48,281,404 | 46,347,011 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 126,345,338 | $ | 124,836,085 | ||||