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. (AUGUST 14, 2003)--RGC Resources, Inc. (NASDAQ: RGCO)
announced an unaudited consolidated Company loss of $562,407 or $0.28 per share
on 1,990,223 average diluted shares for the quarter ended June 30, 2003. This
compares to a loss, for the same quarter last year, of $297,733 or $0.15 per
share on 1,950,538 average diluted shares. The increase in quarterly loss was
primarily attributed to the impacts of higher bad debt expense accruals compared
to the same quarter last year, associated with higher past due balances
resulting from higher energy costs and higher volume of sales from a colder
winter heating season.
Earnings for the 12 months ended June 30, 2003 were $3,590,090, or $1.82
per share on 1,976,454 average diluted shares outstanding compared to
$1,803,329, or $0.93 per share on 1,931,157 average diluted shares for the 12
months ended June 30, 2002. The increase in earnings for the 12 month period are
primarily attributed to the impact of higher revenues associated with a colder
winter heating season, and the absence of the initial impairment charge recorded
September 30, 2001, related to the restructuring of the Company's heating and
air conditioning operation.
RGC Resources, Inc. provides energy and related products and services to
approximately 78,000 customers in Virginia and West Virginia through its
operating subsidiaries including Roanoke Gas Company, Bluefield Gas Company,
Diversified Energy Company and RGC Ventures, Inc. The Company is listed on the
NASDAQ stock market, trading symbol RGCO.
Unaudited summary financial statements for the third quarter and
twelve-months year-to-date 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,
2003 2002 2003 2002
--------------------------------- ------------------------------
Revenues $ 19,292,181 $ 14,175,352 $ 100,422,211 $ 81,582,344
Cost of sales 14,431,466 9,573,267 71,397,060 56,652,239
--------------- --------------- -------------- -------------
Operating margin 4,860,715 4,602,085 29,025,151 24,930,105
Other operating expenses 5,250,929 4,604,895 21,028,569 18,940,287
Impairment loss - - 72,008 699,630
Interest expense 521,099 469,646 2,132,596 2,135,366
--------------- --------------- -------------- -------------
Income before income taxes (911,313) (472,456) 5,791,978 3,154,822
Income tax expense (348,906) (174,723) 2,201,888 1,351,493
--------------- --------------- -------------- -------------
Net income (loss) (562,407) (297,733) 3,590,090 1,803,329
Other comprehensive income (loss), net of tax (39,506) (93,900) (203,197) 81,777
--------------- --------------- -------------- -------------
Comprehensive income (loss) $ (601,913) $ (391,633) $ 3,386,893 $ 1,885,106
=============== =============== ============== =============
Net earnings per share of common stock:
Basic $ (0.28) $ (0.15) $ 1.82 $ 0.94
=============== =============== ============== =============
Diluted $ (0.28) $ (0.15) $ 1.82 $ 0.93
=============== =============== ============== =============
Cash dividends per common share $ 0.285 $ 0.285 $ 1.140 $ 1.135
=============== =============== ============== =============
Weighted average number of common shares outstanding:
Basic 1,990,223 1,950,538 1,973,684 1,927,778
Diluted 1,990,223 1,950,538 1,976,454 1,931,157
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
ASSETS 2003 2002
--------------- --------------
Current assets $ 21,724,793 $ 15,643,640
Total property, plant and equipment, net 70,556,895 68,043,089
Other assets 1,272,266 971,856
--------------- --------------
Total Assets $ 93,553,954 $ 84,658,585
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 25,456,859 $ 25,321,027
Long-term debt 28,228,299 22,385,094
Deferred credits and other liabilities 5,080,831 4,006,746
--------------- --------------
Total Liabilities 58,765,989 51,712,867
Stockholders' Equity 34,787,965 32,945,718
--------------- --------------
Total Liabilities and Stockholders' Equity $ 93,553,954 $ 84,658,585
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