Exhibit 99.1
Contact: John B. Williamson, III
Chairman, President and CEO
Telephone: (540) 777-3810
FOR IMMEDIATE RELEASE
RGC RESOURCES, INC.
SECOND QUARTER FINANCIAL RESULTS
ROANOKE, VA. (MAY 13, 2004)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $3,148,252 or $1.55 per share on 2,034,666
average diluted shares outstanding for the quarter ended March 31, 2004. This
compares to quarterly earnings for the same quarter last year of $3,140,953 or
$1.59 per share on 1,981,605 average diluted shares outstanding. Earnings
improved slightly in spite of lower sales volumes resulting from weather that
was 4% warmer than the prior quarter. The improved earnings are primarily
attributed to higher natural gas margins as a result of Commission approved
higher billing rates implemented in October 2003.
Earnings per share for the twelve months ending March 31, 2004 were
$3,596,954 or $1.78 per share on 2,017,243 average diluted shares outstanding,
compared to $3,854,764 or $1.96 per share on 1,965,518 average diluted shares
outstanding. The slight decline in earnings for the 12 months was primarily the
result of 5% warmer weather combined with increased bad debt expense on higher
energy costs.
RGC Resources, Inc. provides energy and related products and services to
approximately 79,000 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 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
March 31, March 31,
2004 2003 2004 2003
----------------- -------------- --------------- -----------------
Revenues $47,128,947 $41,222,570 $116,112,581 $95,305,382
Cost of sales 35,437,738 29,511,598 86,315,854 66,538,861
-------------- -------------- --------------- --------------
Operating margin 11,691,209 11,710,972 29,796,727 28,766,521
Other operating expenses 6,067,016 6,048,195 21,922,176 20,382,535
Impairment loss - - - 72,008
Interest expense 523,808 551,284 2,135,256 2,081,143
-------------- -------------- --------------- --------------
Income before income taxes 5,100,385 5,111,493 5,739,295 6,230,835
Income tax expense 1,952,133 1,970,540 2,142,341 2,376,071
-------------- -------------- --------------- --------------
Net income 3,148,252 3,140,953 3,596,954 3,854,764
Other comprehensive income (loss), net of tax (41,002) (128,162) 15,056 (257,591)
-------------- -------------- --------------- --------------
Comprehensive income $ 3,107,250 $ 3,012,791 $ 3,612,010 $ 3,597,173
============== ============== =============== ==============
Net earnings per share of common stock:
Basic $1.56 $1.59 $1.79 $1.96
============== ============== =============== ==============
Diluted $1.55 $1.59 $1.78 $1.96
============== ============== =============== ==============
Cash dividends per common share $ 0.295 $ 0.285 $ 1.150 $ 1.140
============== ============== =============== ==============
Weighted average number of common shares outstanding:
Basic 2,021,131 1,978,541 2,005,256 1,963,790
Diluted 2,034,666 1,981,605 2,017,243 1,965,518
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
ASSETS 2004 2003
-------------- ---------------
Current assets $ 23,941,203 $ 22,742,170
Total property, plant and equipment, net 78,772,882 75,289,997
Other assets 1,001,112 1,234,111
-------------- ---------------
Total Assets $ 103,715,197 $ 99,266,278
============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 23,649,819 $ 25,059,257
Long-term debt 30,202,907 28,236,463
Deferred credits and other liabilities 11,900,237 10,226,023
-------------- ---------------
Total Liabilities 65,752,963 63,521,743
Stockholders' Equity 37,962,234 35,744,535
-------------- ---------------
Total Liabilities and Stockholders' Equity $ 103,715,197 $ 99,266,278
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