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 9, 2006)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $9,095 on continuing operations and a loss of
$56,959 or ($0.03) per diluted share for total operations on 2,137,542 average
diluted shares outstanding for the quarter ended June 30, 2006. This compares to
quarterly earnings for the same quarter last year of $87,482 or $0.04 per
diluted share on continuing operations and earnings of $229,525 or $0.11 per
diluted share for total operations on 2,098,683 average diluted shares
outstanding. John Williamson, Chairman, President and CEO, attributed the modest
decline in earnings from continuing operations primarily to the impact of
significantly warmer weather in the current quarter reducing the volume of April
and May natural gas sales.
Diluted earnings per share for the twelve months ending June 30, 2006
were $1.42 on continuing operations and $1.48 for total operations on 2,120,957
average diluted shares outstanding compared to $1.38 for continuing operations
and $6.06 for total operations on 2,082,598 average diluted shares outstanding
for the twelve months ended June 30, 2005. 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. Williamson attributed the improvement in earnings from continuing
operations for the twelve months ended June 30, 2006 to improved natural gas
sales margins.
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,
2006 2005 2006 2005
------------- --------------- -------------- --------------
Revenues $ 12,959,458 $ 15,819,714 $ 112,802,601 $ 93,327,873
Cost of sales 8,092,983 10,895,210 87,014,261 68,924,773
------------- --------------- -------------- --------------
Gross margin 4,866,475 4,924,504 25,788,340 24,403,100
Other operating expenses 4,289,415 4,311,800 18,571,299 17,818,275
Interest expense 561,566 465,107 2,401,437 1,996,874
------------- --------------- -------------- --------------
Income (loss) from continuing operations
before income taxes 15,494 147,597 4,815,604 4,587,951
Income tax expense (benefit) from continuing
operations 6,399 60,115 1,800,975 1,708,663
------------- --------------- -------------- --------------
Net income (loss) from continuing operations 9,095 87,482 3,014,629 2,879,288
Income (loss) from discontinued operations,
net of income taxes (66,054) 142,043 125,935 9,738,373
------------- --------------- -------------- --------------
Net income (loss) (56,959) 229,525 3,140,564 12,617,661
Other comprehensive income, net of tax 319,045 895 363,357 54,813
------------- --------------- -------------- --------------
Comprehensive income (loss) $ 262,086 $ 230,420 $ 3,503,921 $ 12,672,474
============= =============== ============== ==============
Basic earnings per share of common stock:
Income (loss) from continuing operations $ - $ 0.04 $ 1.43 $ 1.39
Discontinued operations (0.03) 0.07 0.06 4.71
------------- --------------- -------------- --------------
Net income (loss) $ (0.03) $ 0.11 $ 1.49 $ 6.10
============= =============== ============== ==============
Diluted earnings per share of common stock:
Income (loss) from continuing operations $ - $ 0.04 $ 1.42 $ 1.38
Discontinued operations (0.03) 0.07 0.06 4.68
------------- --------------- -------------- --------------
Net income (loss) $ (0.03) $ 0.11 $ 1.48 $ 6.06
============= =============== ============== ==============
Cash dividends per common share $ 0.300 $ 0.295 $ 1.195 $ 5.680
============= =============== ============== ==============
Weighted average number of common shares outstanding:
Basic 2,127,188 2,085,029 2,109,845 2,068,385
Diluted 2,137,542 2,098,683 2,120,957 2,082,598
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
Assets 2006 2005
--------------- --------------
Current assets $ 35,668,907 $ 31,069,548
Total property, plant and equipment, net 77,048,174 72,898,842
Other assets 505,549 445,261
--------------- --------------
Total Assets $ 113,222,630 $ 104,413,651
=============== ==============
Liabilities and Stockholders' Equity
Current liabilities $ 28,161,861 $ 36,813,828
Long-term debt 30,000,000 16,000,000
Deferred credits and other liabilities 13,708,253 12,275,618
--------------- --------------
Total Liabilities 71,870,114 65,089,446
Stockholders' Equity 41,352,516 39,324,205
--------------- --------------
Total Liabilities and Stockholders' Equity $ 113,222,630 $ 104,413,651
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