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, 2007)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $1,685,515 or $0.78 per average diluted shares
outstanding for the quarter ended December 31, 2006. This compares to quarterly
earnings for the same quarter last year of $1,452,182 or $0.69 per diluted
share. John Williamson, Chairman, President and CEO, attributed the increase in
earnings for the quarter to the impact of lower natural gas costs reducing bad
debt expense accruals and improved natural gas margins.
Diluted earnings per share for the twelve months ending December 31,
2006 were $1.67 on continuing operations and $1.75 for total operations compared
to $1.45 on continuing operations and $1.59 on total operations for the twelve
months ended December 31, 2005. Earnings on continuing operations for the twelve
months ended December 31, 2006 were positively impacted by improved margins
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,
2006 2005 2006 2005
------------------------------- ------------------------------
Revenues $ 29,993,044 $ 43,919,357 $ 93,871,437 $ 114,798,397
Cost of sales 21,829,126 36,177,373 67,384,060 89,393,910
------------- -------------- -------------- -------------
Gross margin 8,163,918 7,741,984 26,487,377 25,404,487
Other operating expenses 4,783,306 4,841,363 18,314,207 18,401,523
Interest expense 659,633 663,655 2,474,604 2,144,230
------------- -------------- -------------- -------------
Income from continuing operations
before income taxes 2,720,979 2,236,966 5,698,566 4,858,734
Income tax expense from continuing operations 1,035,464 854,620 2,120,803 1,822,428
------------- -------------- -------------- -------------
Net income from continuing operations 1,685,515 1,382,346 3,577,763 3,036,306
Net income from discontinued operations,
net of income taxes - 69,836 167,101 297,387
------------- -------------- -------------- -------------
Net income 1,685,515 1,452,182 3,744,864 3,333,693
Other comprehensive income (loss), net of tax (10,738) 22,386 344,519 (344,995)
------------- -------------- -------------- -------------
Comprehensive income $ 1,674,777 $ 1,474,568 $ 4,089,383 $ 2,988,698
============= ============== ============== =============
Basic earnings per share of common stock:
Income from continuing operations $ 0.78 $ 0.66 $ 1.68 $ 1.46
Discontinued operations - 0.03 0.08 0.14
------------- -------------- -------------- -------------
Net income $ 0.78 $ 0.69 $ 1.76 $ 1.60
============= ============== ============== =============
Diluted earnings per share of common stock:
Income from continuing operations $ 0.78 $ 0.66 $ 1.67 $ 1.45
Discontinued operations - 0.03 0.08 0.14
------------- -------------- -------------- -------------
Net income $ 0.78 $ 0.69 $ 1.75 $ 1.59
============= ============== ============== =============
Cash dividends per common share $ 0.305 $ 0.300 $ 1.205 $ 1.185
============= ============== ============== =============
Weighted average number of common shares outstanding:
Basic 2,148,054 2,104,089 2,131,349 2,089,224
Diluted 2,157,245 2,114,880 2,141,403 2,102,119
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
Assets 2006 2005
-------------- --------------
Current assets $ 42,835,214 $ 59,907,867
Total property, plant and equipment, net 79,732,808 74,855,914
Other assets 468,831 555,729
-------------- --------------
Total Assets $ 123,036,853 $ 135,319,510
============== ==============
Liabilities and Stockholders' Equity
Current liabilities $ 36,657,351 $ 53,071,271
Long-term debt 30,000,000 30,000,000
Deferred credits and other liabilities 14,561,464 13,047,541
-------------- --------------
Total Liabilities 81,218,815 96,118,812
Stockholders' Equity 41,818,038 39,200,698
-------------- --------------
Total Liabilities and Stockholders' Equity $ 123,036,853 $ 135,319,510
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