Exhibit 99.1
Contact: John B. Williamson, III
Chairman, President and CEO
Telephone: (540) 777-3810
FOR IMMEDIATE RELEASE
RGC RESOURCES, INC.
FIRST QUARTER FINANCIAL RESULTS - EARNINGS IMPROVE
ROANOKE, VA. (FEBRUARY 16, 2004)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $1,599,403 or $0.79 per share on 2,021,897
average diluted shares outstanding for the quarter ended December 31, 2003. This
compares to quarterly earnings for the same quarter last year of $1,538,137 or
$0.78 per share on 1,968,735 average diluted shares outstanding. John
Williamson, Chairman, President and CEO, attributed the improvement in earnings
primarily to the impact of improved natural gas sales margins in spite of the
weather being 11% warmer than the same quarter last year.
Earnings per share for the twelve months ending December 31, 2003 were
$1.79 on 2,003,985 average diluted shares outstanding compared to $1.63 on
1,953,517 average diluted shares outstanding for the twelve months ended
December 31, 2002. Earnings for the twelve months ended December 31, 2003 were
positively impacted by improved natural gas sales margins.
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, Inc. The Company is listed on the NASDAQ stock market, trading
symbol RGCO.
Unaudited summary financial statements for the quarter and twelve months
year-to-date are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings and Comprehensive Income
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
--------------------------------- ------------------------------
Revenues $ 34,300,772 $ 28,456,127 $ 110,206,204 $ 85,827,193
Cost of sales 25,543,199 19,790,330 80,389,714 59,384,218
----------------- ------------- ------------- -------------
Operating margin 8,757,573 8,665,797 29,816,490 26,442,975
Other operating expenses 5,625,020 5,605,722 21,903,355 19,207,764
Impairment loss - - - 72,008
Interest expense 544,966 554,576 2,162,732 2,041,812
----------------- ------------- ------------- -------------
Income before income taxes 2,587,587 2,505,499 5,750,403 5,121,391
Income tax expense 988,184 967,362 2,160,748 1,937,134
----------------- ------------- ------------- -------------
Net income 1,599,403 1,538,137 3,589,655 3,184,257
Other comprehensive income (loss), net of tax 59,879 (156,810) (72,104) 83,584
----------------- ------------- ------------- -------------
Comprehensive income $ 1,659,282 $ 1,381,327 $ 3,517,551 $ 3,267,841
================= ============= ============= =============
Net earnings per share of common stock:
Basic $ 0.80 $ 0.78 $ 1.80 $ 1.63
================= ============= ============= =============
Diluted $ 0.79 $ 0.78 $ 1.79 $ 1.63
================= ============= ============= =============
Cash dividends per common share $ 0.285 $ 0.285 $ 1.140 $ 1.140
================= ============= ============= =============
Weighted average number of common shares outstanding:
Basic 2,010,247 1,967,635 1,994,711 1,951,596
Diluted 2,021,897 1,968,735 2,003,985 1,953,517
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
ASSETS 2003 2002
------------- -------------
Current assets $ 38,428,072 $ 28,976,843
Total property, plant and equipment, net 72,018,049 69,629,721
Other assets 1,072,534 1,018,044
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Total Assets $ 111,518,655 $ 99,624,608
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 40,262,889 $ 33,161,051
Long-term debt 30,211,523 28,244,482
Deferred credits 5,842,404 5,116,118
------------- -------------
Total Liabilities 76,316,816 66,521,651
Stockholders' Equity 35,201,839 33,102,957
------------- -------------
Total Liabilities and Stockholders' Equity $ 111,518,655 $ 99,624,608
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