Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
Release Date: December 22, 2003
Contact: John B. Williamson, III
President, Chairman and CEO
Telephone: 540-777-3810
RGC RESOURCES, INC.
ANNOUNCES ANNUAL FINANCIAL RESULTS AND QUARTERLY DIVIDEND
RGC Resources, Inc. announced fiscal year earnings of $3,528,389 or $1.77
per diluted share outstanding for the year ended September 30, 2003, compared to
$2,486,895 or $1.28 per diluted share for the year ended September 30, 2002. The
Company also announced a 4th quarter loss of $588,294 or ($0.32) per diluted
share for the quarter ended September 30, 2003, compared to a loss of $526,593
or ($0.29) per diluted share for the quarter ended September 30, 2002.
President, Chairman and CEO John Williamson attributed the improvement in
earnings to weather for the fiscal year that was 24% colder than the prior year,
the effect of a rate adjustment approved by the Company's natural gas utility
regulatory commissions, and improved operating margins on propane sales.
The Company also announced that its Board of Directors declared a quarterly
dividend of $0.285 payable February 1, 2004 to shareholders of record on January
16, 2004. This is the Company's 239th consecutive quarterly dividend.
RGC Resources, Inc. has approximately 76,000 natural gas and propane
customers through its natural gas distribution companies that service the
Roanoke Valley and Bluefield areas and Highland Propane Company which serves
portions of Virginia and southern West Virginia. The Company's stock is listed
on the NASDAQ Stock Market, trading symbol RGCO.
Summary financial statements for the fourth 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
September 30, September 30,
2003 2002 2003 2002
---------------------------------- ------------------ ---------------
Revenues $ 15,390,681 $ 11,451,333 $ 104,361,559 $ 80,225,673
Cost of sales 10,903,451 7,663,666 74,636,845 55,394,584
------------- ---------------- --------------- ---------------
Operating margin 4,487,230 3,787,667 29,724,714 24,831,089
Other operating expenses 4,979,211 4,123,723 21,884,057 18,727,620
Impairment loss - 72,008 - 72,008
Interest expense 545,383 505,637 2,172,342 2,050,754
------------- ---------------- --------------- ---------------
Income before income taxes (1,037,364) (913,701) 5,668,315 3,980,707
Income tax expense (449,070) (387,108) 2,139,926 1,493,812
------------- ---------------- --------------- ---------------
Net income (loss) (588,294) (526,593) 3,528,389 2,486,895
Other comprehensive income (loss), net of tax 35,685 121,281 (288,793) 209,097
------------- ---------------- --------------- ---------------
Comprehensive income (loss) $ (552,609) $ (405,312) $ 3,239,596 $ 2,695,992
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Net earnings per share of common stock:
Basic $ (0.31) $ (0.29) $ 1.78 $ 1.28
============= ================ =============== ===============
Diluted $ (0.32) $ (0.29) $ 1.77 $ 1.28
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Cash dividends per common share $ 0.285 $ 0.285 $ 1.140 $ 1.140
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Weighted average number of common shares outstanding:
Basic 1,983,970 1,939,511
Diluted 1,989,460 1,942,058
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
ASSETS 2003 2002
---------------- ---------------
Current assets $ 27,677,977 $ 22,296,926
Total property, plant and equipment, net 71,751,354 69,138,197
Other assets 1,068,068 966,332
---------------- ---------------
Total Assets $ 100,497,399 $ 92,401,455
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 30,695,469 $ 23,852,139
Long-term debt 30,219,987 30,377,358
Deferred credits and other liabilities 5,724,329 6,102,961
---------------- ---------------
Total Liabilities 66,639,785 60,332,458
Stockholders' Equity 33,857,614 32,068,997
---------------- ---------------
Total Liabilities and Stockholders' Equity $ 100,497,399 $ 92,401,455
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