Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
Release Date: December 5, 2005
Contact: John B. Williamson, III
President, Chairman and CEO
Telephone: 540-777-3810
RGC RESOURCES, INC.
ANNUAL FINANCIAL RESULTS
ROANOKE, Va. (December 5, 2005)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $3,387,933 or $1.62 per average diluted share
outstanding on continuing operations and earnings of $3,506,906 or $1.68 per
average diluted share outstanding on total operations for the fiscal year ended
September 30, 2005. This compares to consolidated earnings of $2,059,767 or
$1.01 per average diluted share outstanding on continuing operations and
earnings of $12,934,013 or $6.33 per average diluted share outstanding on total
operations for the year ended September 30, 2004. President, Chairman and CEO
John Williamson attributed the improvement in earnings on continuing operations
to improvement in gross margins and reduced operating expenses. The
significantly higher earnings on discontinued operations last year were
associated with the sale of the Company's propane distribution operation, which
led to a special dividend of $4.50 paid in December 2004.
Loss for the three months ended September 30, 2005 was ($411,733) or
($0.20) per average diluted share outstanding on continuing and total
consolidated operations compared to a loss of ($683,474) or ($0.34) per average
share outstanding on continuing operations and income of $8,699,022 or $4.24 per
average diluted share outstanding on total operations for the quarter ended
September 30, 2004. The majority of the Company's sales occur in the winter
months and as a result, the Company's third and fourth quarters normally reflect
earnings losses. Williamson attributes the smaller loss in the fourth quarter of
this year to improved gross margins. The earnings on discontinued operations in
the fourth quarter of last year were a result of the gain on the sale of the
Company's propane distribution operation.
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 fourth 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
September 30, September 30,
2005 2004 2005 2004
------------------------------------- -------------------------------------
Revenues $ 22,840,535 $ 15,313,074 $ 121,647,787 $ 103,135,494
Cost of sales 18,447,481 11,281,295 96,495,785 79,754,400
----------------- ------------------ ---------------- -----------------
Gross margin 4,393,054 4,031,779 25,152,002 23,381,094
Other operating expenses 4,625,867 4,746,946 17,698,989 18,218,178
Interest expense 494,736 466,317 2,025,293 1,883,736
----------------- ------------------ ---------------- -----------------
Income (loss) from continuing operations
before income taxes (727,549) (1,181,484) 5,427,720 3,279,180
Income tax expense (benefit) from continuing operations (315,816) (498,010) 2,039,787 1,219,413
----------------- ------------------ ---------------- -----------------
Net income (loss) from continuing operations (411,733) (683,474) 3,387,933 2,059,767
Income (loss) from discontinued operations,
net of income taxes - 9,382,496 118,973 10,874,246
----------------- ------------------ ---------------- -----------------
Net income (loss) (411,733) 8,699,022 3,506,906 12,934,013
Other comprehensive income (loss), net of tax (389,553) 221 (334,961) 109,040
----------------- ------------------ ---------------- -----------------
Comprehensive income (loss) $ (801,286) $ 8,699,243 $ 3,171,945 $ 13,043,053
================= ================== ================ =================
Basic earnings per share of common stock:
Income (loss) from continuing operations $ (0.21) $ (0.35) $ 1.63 $ 1.02
Discontinued operations - 4.62 0.06 5.36
----------------- ------------------ ---------------- -----------------
Net income (loss) $ (0.21) $ 4.27 $ 1.69 $ 6.38
================= ================== ================ =================
Diluted earnings per share of common stock:
Income (loss) from continuing operations $ (0.20) $ (0.34) $ 1.62 $ 1.01
Discontinued operations - 4.58 0.06 5.32
----------------- ------------------ ---------------- -----------------
Net income (loss) $ (0.20) $ 4.24 $ 1.68 $ 6.33
================= ================== ================ =================
Cash dividends per common share $ 0.295 $ 0.295 $ 1.180 $ 5.670
================= ================== ================ =================
Weighted average number of common shares outstanding:
Basic 2,079,851 2,027,908
Diluted 2,093,115 2,042,312
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
2005 2004
------------------ ----------------
Assets
Current assets $ 39,048,555 $ 43,807,941
Total property, plant and equipment, net 74,102,365 70,608,106
Other assets 412,496 556,509
------------------ ----------------
Total Assets $ 113,563,416 $ 114,972,556
================== ================
Liabilities and Stockholders' Equity
Current liabilities $ 32,715,534 $ 40,746,456
Long-term debt 30,000,000 26,000,000
Deferred credits and other liabilities 12,690,525 11,604,578
------------------ ----------------
Total Liabilities 75,406,059 78,351,034
Stockholders' Equity 38,157,357 36,621,522
------------------ ----------------
Total Liabilities and Stockholders' Equity $ 113,563,416 $ 114,972,556
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