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
ROANOKE, VA. (FEBRUARY 15, 2005)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $1,625,395 or $0.78 per share on 2,078,860
average diluted shares outstanding for the quarter ended December 31, 2004. This
compares to quarterly earnings for the same quarter last year of $1,143,536 or
$0.56 per share on continuing operations and earnings of $1,599,403 or $0.79 per
share for total operations on 2,021,897 average diluted shares outstanding. John
Williamson, Chairman, President and CEO, attributed the improvement in earnings
from continuing operations primarily due to the impact of improved natural gas
sales margins.
Earnings per share for the twelve months ending December 31, 2004 were
$1.24 on continuing operations and $6.30 for total operations on 2,056,588
average diluted shares outstanding compared to $1.79 on 2,003,985 average
diluted shares outstanding for the twelve months ended December 31, 2003.
Earnings for the twelve months ended December 31, 2004 were positively impacted
by a gain of $9,504,329 or $4.65 per diluted share on the sale of propane assets
in the quarter ended September 30, 2004.
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.
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 Earnings and Comprehensive Income
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
-------------------------------- -------------------------------
Revenues $ 34,665,474 $ 29,867,898 $ 107,944,640 $ 94,751,935
Cost of sales 27,354,335 23,134,331 83,974,404 72,393,548
------------- ---------------- ------------- --------------
Operating margin 7,311,139 6,733,567 23,970,236 22,358,387
Other operating expenses 4,135,459 4,388,023 17,965,614 16,906,465
Interest expense 544,718 500,219 1,928,235 1,971,141
------------- ---------------- ------------- --------------
Income from continuing operations
before income taxes 2,630,962 1,845,325 4,076,387 3,480,781
Income tax expense from continuing operations 1,005,567 701,789 1,527,726 1,280,314
------------- ---------------- ------------- --------------
Net income from continuing operations 1,625,395 1,143,536 2,548,661 2,200,467
Net income from discontinued operations,
net of income taxes - 455,867 10,411,344 1,389,188
------------- ---------------- ------------- --------------
Net income 1,625,395 1,599,403 12,960,005 3,589,655
Other comprehensive income (loss), net of tax 32,420 59,879 81,581 (72,104)
------------- ---------------- ------------- --------------
Comprehensive income $ 1,657,815 $ 1,659,282 $ 13,041,586 $ 3,517,551
============= ================ ============= ==============
Basic earnings per share of common stock:
Income from continuing operations $ 0.79 $ 0.57 $ 1.25 $ 1.10
Discontinued operations - 0.23 5.10 0.70
------------- ---------------- ------------- --------------
Net income $ 0.79 $ 0.80 $ 6.35 $ 1.80
============= ================ ============= ==============
Diluted earnings per share of common stock:
Income from continuing operations $ 0.78 $ 0.56 $ 1.24 $ 1.10
Discontinued operations - 0.23 5.06 0.69
------------- ---------------- ------------- --------------
Net income $ 0.78 $ 0.79 $ 6.30 $ 1.79
============= ================ ============= ==============
Cash dividends per common share $ 0.295 $ 0.285 $ 5.680 $ 1.140
============= ================ ============= ==============
Weighted average number of common shares outstanding:
Basic 2,066,901 2,010,247 2,042,149 1,994,711
Diluted 2,078,860 2,021,897 2,056,588 2,003,985
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
ASSETS 2004 2003
------------- --------------
Current assets $ 46,503,889 $ 48,476,369
Total property, plant and equipment, net 71,792,501 66,338,806
Other assets 534,695 774,220
------------- --------------
Total Assets $ 118,831,085 $ 115,589,395
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 53,152,887 $ 40,262,889
Long-term debt 16,000,000 30,211,523
Deferred credits 11,967,555 9,913,144
------------- --------------
Total Liabilities 81,120,442 80,387,556
Stockholders' Equity 37,710,643 35,201,839
------------- --------------
Total Liabilities and Stockholders' Equity $ 118,831,085 $ 115,589,395
============= ==============