Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
Release Date: December 5, 2006
Contact: John B. Williamson, III
President, Chairman and CEO
Telephone: 540-777-3810
RGC RESOURCES, INC.
ANNUAL FINANCIAL RESULTS
ROANOKE, Va. (December 5, 2006)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $3,274,594 or $1.54 per average diluted share
outstanding on continuing operations and earnings of $3,511,531 or $1.65 per
average diluted share outstanding on total operations for the fiscal year ended
September 30, 2006. This compares to consolidated earnings of $3,147,640 or
$1.51 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 year ended September 30, 2005. President, Chairman and CEO
John Williamson attributed the improvement in earnings on continuing operations
to improvement in gross margins.
Net loss for the three months ended September 30, 2006 was ($189,311)
or ($0.10) per average diluted share outstanding on continuing operations and
($40,766) or ($0.03) per share on total operations compared to a loss of
($449,276) or ($0.22) per average share outstanding on continuing operations and
($411,733) or ($0.21) per average diluted share outstanding on total operations
for the quarter ended September 30, 2005. 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 on continuing operations in the fourth quarter of this year to improved
gross margins and lower bad debt expense.
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,
2006 2005 2006 2005
----------------------------- -----------------------------
Revenues $ 12,460,939 $ 17,465,790 $107,797,750 $100,076,667
Cost of sales 7,853,862 13,135,816 81,732,307 75,315,846
------------- ------------- ------------ ------------
Gross Margin 4,607,077 4,329,974 26,065,443 24,760,821
Other operating expenses 4,424,292 4,623,327 18,372,264 17,695,156
Interest expense 571,925 494,736 2,478,626 2,025,293
------------- ------------- ------------ ------------
Income (loss) from continuing operations
before income taxes (389,140) (788,089) 5,214,553 5,040,372
Income tax expense (benefit) from continuing
operations (199,829) (338,813) 1,939,959 1,892,732
------------- ------------- ------------ ------------
Net income (loss) from continuing operations (189,311) (449,276) 3,274,594 3,147,640
Income from discontinued operations,
net of income taxes 148,545 37,543 236,937 359,266
------------- ------------- ------------ ------------
Net income (loss) (40,766) (411,733) 3,511,531 3,506,906
Other comprehensive income (loss), net of tax (375,267) (389,553) 377,643 (334,961)
------------- ------------- ------------ ------------
Comprehensive income (loss) $ (416,033) $ (801,286) $ 3,889,174 $ 3,171,945
============= ============= ============ ============
Basic earnings per share of common stock:
Income (loss) from continuing operations $ (0.09) $ (0.22) $ 1.55 $ 1.52
Discontinued operations 0.07 0.01 0.11 0.17
------------- ------------- ------------ ------------
Net income (loss) $ (0.03) $ (0.21) $ 1.66 $ 1.69
============= ============= ============ ============
Diluted earnings per share of common stock:
Income (loss) from continuing operations $ (0.10) $ (0.22) $ 1.54 $ 1.51
Discontinued operations 0.07 0.01 0.11 0.17
------------- ------------- ------------ ------------
Net income (loss) $ (0.03) $ (0.21) $ 1.65 $ 1.68
============= ============= ============ ============
Cash dividends per common share $ 0.300 $ 0.29 $ 1.200 $ 1.180
============= ============= ============ ============
Weighted average number of common shares outstanding:
Basic 2,120,267 2,079,851
Diluted 2,130,720 2,093,115
Condensed Consolidated Balance Sheets
(Unaudited)
September 30,
Assets 2006 2005
------------- -------------
Current assets $ 35,139,557 $ 39,048,555
Total property, plant and equipment, net 79,039,609 74,102,365
Other assets 483,406 412,496
-------------- -------------
Total Assets $ 114,662,572 $ 113,563,416
============== =============
Liabilities and Stockholders' Equity
Current liabilities $ 29,839,487 $ 32,715,534
Long-term debt 30,000,000 30,000,000
Deferred credits and other liabilities 14,328,217 12,690,525
-------------- -------------
Total Liabilities 74,167,704 75,406,059
Stockholders' Equity 40,494,868 38,157,357
-------------- -------------
Total Liabilities and Stockholders' Equity $114,662,572 $113,563,416
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