Exhibit 99.1
Contact: John B. Williamson, III
Chairman, President and CEO
Telephone: (540) 777-3810
FOR IMMEDIATE RELEASE
RGC RESOURCES, INC.
THIRD QUARTER FINANCIAL RESULTS
ROANOKE, Va. (August 16, 2005)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $126,771 or $0.06 per share on continuing
operations and earnings of $229,525 or $0.11 per share for total operations on
2,098,683 average diluted shares outstanding for the quarter ended June 30,
2005. This compares to a quarterly loss for the same quarter last year of
$275,743 or $0.13 per share on continuing operations and a loss of $512,664 or
$0.25 per share for total operations on 2,031,334 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 and the income from discontinued operations
with a gain on the sale of real estate of $153,000.
Earnings per share for the twelve months ending June 30, 2005 were
$1.50 on continuing operations and $6.06 for total operations on 2,082,598
average diluted shares outstanding compared to $1.19 for continuing operations
and $1.80 for total operations on 2,028,649 average diluted shares outstanding
for the twelve months ended June 30, 2004. Earnings for the twelve months ended
June 30, 2005 were positively impacted by a gain of $9,504,329 or $4.56 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 of Virginia, 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 third 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
June 30, June 30,
2005 2004 2005 2004
--------------------------------- ---------------------------------
Revenues $20,838,353 $18,233,478 $114,120,326 $101,343,700
Cost of sales 15,850,234 13,830,715 89,329,599 78,334,466
-------------- ---------------- ---------------- --------------
Gross margin 4,988,119 4,402,763 24,790,727 23,009,234
Other operating expenses 4,312,086 4,376,556 17,820,068 17,269,096
Interest expense 465,107 439,166 1,996,874 1,916,771
-------------- ---------------- ---------------- --------------
Income (loss) from continuing operations
before income taxes 210,926 (412,959) 4,973,785 3,823,367
Income tax expense (benefit) from
continuing operations 84,155 (137,216) 1,857,593 1,419,129
-------------- ---------------- ---------------- --------------
Net income (loss) from continuing
operations 126,771 (275,743) 3,116,192 2,404,238
Income (loss) from discontinued operations,
net of income taxes 102,754 (236,921) 9,501,469 1,242,459
-------------- ---------------- ---------------- --------------
Net income (loss) 229,525 (512,664) 12,617,661 3,646,697
Other comprehensive income, net of tax 895 89,942 54,813 144,504
-------------- ---------------- ---------------- --------------
Comprehensive income (loss) $230,420 $ (422,722) $ 12,672,474 $3,791,201
============== ================ ================ ================
Basic earnings per share of common stock:
Income (loss) from continuing operations $0.06 $ (0.13) $1.51 $ 1.19
Discontinued operations 0.05 (0.12) 4.59 0.62
-------------- ---------------- ---------------- --------------
Net income (loss) $0.11 $ (0.25) $6.10 $ 1.81
============== ================ ================ ================
Diluted earnings per share of common stock:
Income (loss) from continuing operations $0.06 $ (0.13) $1.50 $ 1.19
Discontinued operations 0.05 (0.12) 4.56 0.61
-------------- ---------------- ---------------- --------------
Net income (loss) $0.11 $ (0.25) $6.06 $ 1.80
============== ================ ================ ================
Cash dividends per common share $ 0.295 $ 0.295 $ 5.680 $1.160
============== ================ ================ ================
Weighted average number of common shares outstanding:
Basic 2,085,029 2,031,334 2,068,385 2,015,477
Diluted 2,098,683 2,031,334 2,082,598 2,028,649
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
Assets 2005 2004
---------------- ----------------
Current assets $ 31,069,548 $ 30,773,308
Total property, plant and equipment, net 72,898,842 68,742,615
Other assets 445,261 665,430
---------------- ----------------
Total Assets $104,413,651 $100,181,353
================ ================
Liabilities and Stockholders' Equity
Current liabilities $36,813,828 $22,662,162
Long-term debt 16,000,000 30,200,000
Deferred credits and other liabilities 12,275,618 10,169,972
---------------- ----------------
Total Liabilities 65,089,446 63,032,134
Stockholders' Equity 39,324,205 37,149,219
---------------- ----------------
Total Liabilities and Stockholders' Equity $104,413,651 $100,181,353
================ ================