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. (January 31, 2006)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $1,452,182 or $0.69 per average diluted shares
outstanding for the quarter ended December 31, 2005. This compares to quarterly
earnings for the same quarter last year of $1,625,395 or $0.78 per diluted
share. John Williamson, Chairman, President and CEO, attributed the decline in
earnings for the quarter to the impact of higher natural gas costs increasing
bad debt expense accruals and higher employee benefit costs including pension
expense.
Earnings per share for the twelve months ending December 31, 2005 were
$1.54 on continuing operations and $1.59 for total operations compared to $1.23
on continuing operations and $6.30 on total operations for the twelve months
ended December 31, 2004. 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. Earnings on
continuing operations for the twelve months ended December 31, 2005 were
positively impacted by improved margins and sales volumes compared to the prior
period.
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 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,
2005 2004 2005 2004
----------------------------------- -----------------------------------
Revenues $ 52,763,999 $ 34,652,352 $ 139,759,434 $ 107,919,948
Cost of sales 44,900,635 27,354,335 114,042,085 83,974,404
--------------- ---------------- -------------- ---------------
Gross margin 7,863,364 7,298,017 25,717,349 23,945,544
Other operating expenses 4,845,045 4,135,459 18,408,575 17,965,614
Interest expense 668,787 544,718 2,149,362 1,928,235
--------------- ---------------- -------------- ---------------
Income from continuing operations
before income taxes 2,349,532 2,617,840 5,159,412 4,051,695
Income tax expense from continuing operations 897,350 1,000,554 1,936,583 1,518,178
--------------- ---------------- -------------- ---------------
Net income from continuing operations 1,452,182 1,617,286 3,222,829 2,533,517
Net income from discontinued operations,
net of income taxes - 8,109 110,864 10,426,488
--------------- ---------------- -------------- ---------------
Net income 1,452,182 1,625,395 3,333,693 12,960,005
Other comprehensive income (loss), net of tax 22,386 32,420 (344,995) 81,581
--------------- ---------------- -------------- ---------------
Comprehensive income $ 1,474,568 $ 1,657,815 $ 2,988,698 $ 13,041,586
=============== ================ ============== ================
Basic earnings per share of common stock:
Income from continuing operations $ 0.69 $ 0.79 $ 1.54 $ 1.24
Discontinued operations - - 0.05 5.11
--------------- ---------------- -------------- ---------------
Net income $ 0.69 $ 0.79 $ 1.60 $ 6.35
=============== ================ ============== ===============
Diluted earnings per share of common stock:
Income from continuing operations $ 0.69 $ 0.78 $ 1.53 $ 1.23
Discontinued operations - - 0.05 5.07
--------------- ---------------- -------------- ---------------
Net income $ 0.69 $ 0.78 $ 1.59 $ 6.30
=============== ================ ============== ===============
Cash dividends per common share $ 0.300 $ 0.295 $ 1.185 $ 5.680
=============== ================ ============== ===============
Weighted average number of common shares outstanding:
Basic 2,104,089 2,066,901 2,089,224 2,042,149
Diluted 2,114,880 2,078,860 2,102,119 2,056,588
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
2005 2004
--------------------- ---------------------
Assets
Current assets $ 59,907,867 $ 46,503,889
Total property, plant and equipment, net 74,855,914 71,792,501
Other assets 555,729 534,695
--------------------- ---------------------
Total Assets $ 135,319,510 $ 118,831,085
===================== =====================
Liabilities and Stockholders' Equity
Current liabilities $ 53,071,271 $ 53,152,887
Long-term debt 30,000,000 16,000,000
Deferred credits and other liabilities 13,047,541 11,967,555
Total Liabilities 96,118,812 81,120,442
Stockholders' Equity 39,200,698 37,710,643
--------------------- ---------------------
Total Liabilities and Stockholders' Equity $ 135,319,510 $ 118,831,085
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