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 12, 2005)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $2,063,719 or $0.99 per share on 2,087,105
average diluted shares outstanding for the quarter ended March 31, 2005. This
compares to quarterly earnings for the same quarter last year of $1,875,448 or
$0.92 per share on continuing operations and earnings of $3,148,252 or $1.55 per
share for total operations on 2,034,666 average diluted shares outstanding. John
Williamson, Chairman, President and CEO, attributed the improvement in earnings
from continuing operations primarily to the impact of improved natural gas sales
margins.
Earnings per share for the twelve months ending March 31, 2005 were
$1.32 on continuing operations and $5.74 for total operations on 2,069,603
average diluted shares outstanding compared to $1.19 for continuing operations
and $1.78 for total operations on 2,017,243 average diluted shares outstanding
for the twelve months ended March 31, 2004. Earnings for the twelve months ended
March 31, 2005 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
March 31, March 31,
2005 2004 2005 2004
-------------------------------------- ---------------------------------------
Revenues $ 43,329,669 $ 39,721,044 $ 111,553,265 $ 100,908,097
Cost of sales 34,843,735 31,508,059 87,310,080 78,089,107
----------------- ------------------ -------------------- -----------------
Gross margin 8,485,934 8,212,985 24,243,185 22,818,990
Other operating expenses 4,625,577 4,706,653 17,884,538 17,072,941
Interest expense 520,732 478,034 1,970,934 1,952,306
----------------- ------------------ -------------------- -----------------
Income from continuing operations
before income taxes 3,339,625 3,028,298 4,387,713 3,793,743
Income tax expense from continuing
operations 1,275,906 1,152,850 1,650,781 1,390,223
----------------- ------------------ -------------------- -----------------
Net income from continuing operations 2,063,719 1,875,448 2,736,932 2,403,520
Net income from discontinued operations,
net of income taxes - 1,272,804 9,138,540 1,193,434
----------------- ------------------ -------------------- -----------------
Net income 2,063,719 3,148,252 11,875,472 3,596,954
Other comprehensive income (loss), net
of tax 21,277 (41,002) 143,860 15,056
----------------- ------------------ -------------------- -----------------
Comprehensive income $ 2,084,996 $ 3,107,250 $ 12,019,332 $ 3,612,010
================= ================== ==================== =================
Basic earnings per share of common stock:
Income from continuing operations $ 1.00 $ 0.93 $ 1.33 $ 1.19
Discontinued operations - 0.63 4.45 0.60
----------------- ------------------ -------------------- -----------------
Net income $ 1.00 $ 1.56 $ 5.78 $ 1.79
================= ================== ==================== =================
Diluted earnings per share of common stock:
Income from continuing operations $ 0.99 $ 0.92 $ 1.32 $ 1.19
Discontinued operations - 0.63 4.42 0.59
----------------- ------------------ -------------------- -----------------
Net income $ 0.99 $ 1.55 $ 5.74 $ 1.78
================= ================== ==================== =================
Cash dividends per common share $ 0.295 $ 0.295 $ 5.680 $ 1.150
================= ================== ==================== =================
Weighted average number of common shares outstanding:
Basic 2,073,009 2,021,131 2,054,998 2,005,256
Diluted 2,087,105 2,034,666 2,069,603 2,017,243
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
Assets 2005 2004
---------------- --------------
Current assets $ 34,223,259 $ 33,918,927
Total property, plant and equipment, net 72,070,508 67,457,426
Other assets 480,471 649,388
---------------- --------------
Total Assets $ 106,774,238 $ 102,025,741
================ ==============
Liabilities and Stockholders' Equity
Current liabilities $ 39,287,908 $ 23,649,819
Long-term debt 16,000,000 30,202,907
Deferred credits 11,993,008 10,210,781
---------------- --------------
Total Liabilities 67,280,916 64,063,507
Stockholders' Equity 39,493,322 37,962,234
---------------- --------------
Total Liabilities and Stockholders' Equity $ 106,774,238 $ 102,025,741
================ ==============