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 11, 2006)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $2,157,074 or $1.02 per share on 2,124,226
average diluted shares outstanding for the quarter ended March 31, 2006. This
compares to quarterly earnings for the same quarter last year of $2,063,719 or
$0.99 per share on 2,087,105 average diluted shares outstanding. John
Williamson, Chairman, President and CEO, attributed the improvement in earnings
primarily to improved natural gas sales margins.
Earnings per share for the twelve months ending March 31, 2006 were
$1.57 on continuing operations and $1.62 for total operations on 2,111,267
average diluted shares outstanding compared to $1.31 for continuing operations
and $5.74 for total operations on 2,069,603 average diluted shares outstanding
for the twelve months ended March 31, 2005. 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 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 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
March 31, March 31,
2006 2005 2006 2005
---------------- ---------------- ----------------- -----------------
Revenues $ 45,781,066 $ 43,316,547 $ 142,223,953 $ 111,515,451
Cost of sales 36,785,444 34,843,735 115,983,794 87,310,080
---------------- ---------------- ----------------- -----------------
Gross margin 8,995,622 8,472,812 26,240,159 24,205,371
Other operating expenses 4,822,048 4,625,577 18,605,046 17,884,538
Interest expense 685,962 520,732 2,314,592 1,970,934
---------------- ---------------- ----------------- -----------------
Income from continuing operations
before income taxes 3,487,612 3,326,503 5,320,521 4,349,899
Income tax expense from continuing operations 1,330,538 1,270,894 1,996,227 1,636,221
---------------- ---------------- ----------------- -----------------
Net income from continuing operations 2,157,074 2,055,609 3,324,294 2,713,678
Net income from discontinued operations,
net of income taxes - 8,110 102,754 9,161,794
---------------- ---------------- ----------------- -----------------
Net income 2,157,074 2,063,719 3,427,048 11,875,472
Other comprehensive income (loss), net of tax 411,479 21,277 45,207 143,860
---------------- ---------------- ----------------- -----------------
Comprehensive income $ 2,568,553 $ 2,084,996 $ 3,472,255 $ 12,019,332
================ ================ ================= =================
Basic earnings per share of common stock:
Income from continuing operations $ 1.02 $ 0.99 $ 1.58 $ 1.32
Discontinued operations - 0.01 0.05 4.46
---------------- ---------------- ----------------- -----------------
Net income $ 1.02 $ 1.00 $ 1.63 $ 5.78
================ ================ ================= =================
Diluted earnings per share of common stock:
Income from continuing operations $ 1.02 $ 0.98 $ 1.57 $ 1.31
Discontinued operations - 0.01 0.05 4.43
---------------- ---------------- ----------------- -----------------
Net income $ 1.02 $ 0.99 $ 1.62 $ 5.74
================ ================ ================= =================
Cash dividends per common share $ 0.300 $ 0.295 $ 1.190 $ 5.680
================ ================ ================= =================
Weighted average number of common shares outstanding:
Basic 2,114,012 2,073,009 2,099,335 2,054,998
Diluted 2,124,226 2,087,105 2,111,267 2,069,603
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
Assets 2006 2005
----------------- -----------------
Current assets $ 39,322,437 $ 34,223,259
Total property, plant and equipment, net 75,758,722 72,070,508
Other assets 526,026 480,471
----------------- -----------------
Total Assets $ 115,607,185 $ 106,774,238
================= =================
Liabilities and Stockholders' Equity
Current liabilities $ 30,793,856 $ 39,287,908
Long-term debt 30,000,000 16,000,000
Deferred credits and other liabilities 13,335,373 11,993,008
----------------- -----------------
Total Liabilities 74,129,229 67,280,916
Stockholders' Equity 41,477,956 39,493,322
----------------- -----------------
Total Liabilities and Stockholders' Equity $ 115,607,185 $ 106,774,238
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