RGCO - Earnings call transcript Q4 2019

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John D'Orazio

Well, good morning. I'm John D'Orazio, President and CEO of RGC Resources, Inc. Welcome, and thank you for joining us as we discuss RGC Resources Fourth Quarter 2019 Results.

First, I would like to go over a few administrative items. [Operator Instructions]. completed, take is presentation the we questions. will After is the our Investor link at to Financial on presentation today's of The & available Information www.rgcresources.com. website page

reminder shown We forward-looking a presentation begin quick the statements Slide on as X. with on

we Moving to operational XXXX and review our Q&A. plan end on highlights, X. with financial key Slide outlook to Today, and

share shown prior year the on well XXXX exceeded Slide As $X.XX. earnings X, increased per fiscal to the results for XX% as

later in be will financial detail in Our presentation. discussed the more results

was As quarter, compared million year. the same and to Slide customer customer replacements. than million renewal $X.X several invested XXXX regulated in on expansion of system $X.X primarily $X.X infrastructure due last million $X.X growth increase other X highlights, million million a we on utility in quarter-to-quarter and on $X.X of growth timing and met capital infrastructure We period projects, to fourth an needs. spent SAVE-eligible more in approximately change decrease replacement, XX% the The

shown fiscal million X, of system the XXXX. spending half projects related primarily that capital our several expansion to second year Slide fiscal XXXX, $X.X occurred from fiscal approximately during decreased As on large

continue another in fourth we steady X, Slide XXXX. XXX, over during XXXX We quarter, added a experience For to growth. XXX bringing customer fiscal total to additions the customers customer XX% increase

by compared This volumes our total growth driven the experienced fiscal warmer Slide on year. for same same increased trend fiscal Commercial quarter of period X% increased XXXX XXXX industrial which X% year. was X. followed compared significant in Over the fourth prior prior prior total volumes a the to noted to flat remained approximately on the Slide X% XXXX. weather, to compared year. volumes volumes as Despite the customers, X, As approximately X% increase industrial to compared usage a in the

like Nester, our to Chief Paul Officer, to results. I'd financial review Now introduce Financial

Paul Nester

you, Thank John.

X. via along on webcast, following we Slide are you of those For

by the $XXX,XXX accruing begin recent fourth combination, of the income reports. to to of Operating based approximately In we quarter. will continued and rate staff We offset expenses on most a year current the decreased reserve In XXXX. these quarter, activities. reviewing in refund results. several hearing higher quarter fourth examiner's rate timing factors and operating were increase during maintenance effects Also, the the the in related the

Pipeline $XXX,XXX Equity and to placement investment related adjustments in expense as debt the due reform related in final our increased XXXX. were long-term continued quarter the $XXX,XXX Pipeline as Valley tax Valley the to of March by earnings XXXX Mountain Gas. construction. due taxes over increased in well as to increased Mountain increased Interest Income to the calculated Roanoke trued up fourth borrowings

tax full -- lift due million, the higher operating maintenance year case, fiscal expenses. and Equity revenue our and offsetting depreciation approximately Operating rate increased to fiscal income in to primarily $XX.X XXXX increases the review Let's results. rate XX.X%. rate other MVP taxes from federal XXXX from various earnings in investment blended construction as transitioned related from the $XXX,XXX Income pipeline to a fiscal in XXXX. the to to the tax company XXXX $X million decreased of approximately significant in increased XX% federal

increased the to compared year. income million Net fiscal or $X.X prior over XX%

discuss remainder XXXX. for now of outlook will John our the

John D'Orazio

Paul. Thank you,

October to put fiscal revenue in extension provide place Gas' the that of approving during order in with and projections and growth. final approximately Roanoke $X.X The rider $XX expenditure Now let's level XXXX, replacement in customer XXXX, infrastructure focus the invest review we million fiscal improved is plan will spending with our SAVE September its issued XXXX. through XXXX SAVE order up included Commission XXXX. XX. continued are to In of capital This capital XXXX. utility planning in final on Corporation State Slide September an on consistent million In regulated was

during in $XX.X fiscal held at XX% fiscal the and pipeline As in of the Continuing late and was And approximately final XXXX. a quarter Gas million is compared during of and at company The the hearing XXXX. the case we $XX.X anticipate an service this that was in filed was XXXX. staff November. in Slide the now to complete report the We MVP August And XXXX XXXX. year. in $X.X presented anticipate a to can in is investing invested public order approximately report million its hearing early on XX, June XX% year. rebuttal beginning in filed million approximately the additional examiner's fourth general previously, time, we scheduled MVP go project in We the Roanoke rate filed XXXX, the report

these all into share. earnings fiscal taking per to $X.XX guidance our is after XXXX Now factors consideration, $X.XX

Finally, been Instructions]. CEO has I announced and upon The February to retirement, early [Operator serve concludes XXXX. that will my and as I remarks. in want That share Directors retirement CEO, it my President appointed an has and these prepared have Nester Paul roles. to in occur President as which honor of our Board

Michael Gaugler

both. the being question. wondering I'm which strong. volumes? C&I particularly you volume industries are industrial in terms of Guys, the The in John, just most the as Congrats to you the seeing growth, one called growth out

John D'Orazio

their we've large as year. a volume facility good increase a It's well past seen manufacturing cement It's in two. steel here that we've this industry got as pretty

Paul Nester

fired, little believe. their fuel Yes. a into they gas switching, more actually, integrating They've Mike. fuel mix, natural They were had and are we primarily coal

Michael Gaugler

cement That's the manufacturer?

Paul Nester

Yes.

John D'Orazio

speaking again, a look happy results. right. not with season. holiday you, our us, questions, Does for again, XXXX with If QX forward call All have and concludes earnings February anybody this more have Thank any any XXXX. joining our final in else there questions? you, to are for We

Paul Nester	VP, Treasurer, Secretary & CFO
John D'Orazio	CEO, President & Director
Michael Gaugler	Janney Montgomery Scott

RGC Resources (RGCO) 6 Dec 192019 Q4 Earnings call transcript