RGC Resources, Inc. Reports Second Quarter Financial Results

Apr 26, 2001, 01:00 ET from RGC Resources, Inc.

    ROANOKE, Va., April 26 /PRNewswire/ -- RGC Resources, Inc. (Nasdaq:   RGCO)
 announced unaudited consolidated Company earnings of $2,346,515 or $1.24 per
 share on 1,897,760 average diluted shares for the quarter ended March 31,
 2001.  This compares to earnings for the same quarter last year of $2,663,707
 or $1.42 per share on 1,870,731 per average diluted share.  The decline in
 quarterly earnings was primarily attributed to the impacts of significantly
 higher energy prices.  The volume of natural gas and propane deliveries
 declined 2% during a period of colder weather as a result of customer
 conservation efforts and the use of alternative fuels.  In addition, the
 Company more than doubled its bad debt expense accrual to ensure adequate
 reserves for potentially uncollectible receivables resulting from higher
 energy prices.
     Earnings for the 12 months ended March 31, 2001 were $3,214,205, or $1.70
 per share on 1,885,827 average diluted shares outstanding compared to
 $3,058,583, or $1.66 per share on 1,842,282 average diluted shares for the 12
 months ended March 31, 2000.  The improved earnings for the 12 month period
 are primarily attributed to customer growth, increased sales volumes and
 improved margins partially offset by significantly higher bad debt expense
 accruals for doubtful accounts and higher interest expense, both related to
 higher energy costs.
 
     RGC Resources, Inc. serves approximately 75,000 customers through its
 natural gas distribution subsidiaries, Roanoke and Bluefield Gas Companies,
 and its propane subsidiary, Diversified Energy Company d/b/a Highland Propane
 Company, which serves the Roanoke Valley, Southwestern Virginia and Southern
 West Virginia.  The Company's stock is listed on the Nasdaq Stock market,
 trading symbol RGCO.
     Unaudited summary financial statements for the second quarter and twelve-
 months year-to-date are as follows:
 
 
                        RGC Resources, Inc. and Subsidiaries
 
       Condensed Consolidated Statements of Earnings and Comprehensive Income
                                    (Unaudited)
 
                              Three Months Ended        Twelve Months Ended
                                  March 31,                  March 31,
                              2001         2000          2001         2000
 
     Revenues              $46,448,858  $28,798,491  $116,013,332  $71,133,411
     Cost of sales          36,277,636   18,766,907    87,632,639   45,864,179
     Operating margin       10,171,222   10,031,584    28,380,693   25,269,232
     Other operating
      expenses               5,580,290    5,274,248    20,537,134   18,250,365
     Interest Expense          772,130      612,823     2,762,590    2,230,470
     Earnings before
      income taxes           3,818,802    4,144,513     5,080,969    4,788,397
     Income tax expense      1,472,287    1,480,806     1,866,764    1,729,814
     Net earnings            2,346,515    2,663,707     3,214,205    3,058,583
     Other comprehensive
      loss, net of tax        (106,145)          --            --           --
     Comprehensive income   $2,240,370   $2,663,707    $3,214,205   $3,058,583
 
     Net earnings per
      share of common
      stock:
        Basic                    $1.24        $1.43         $1.71        $1.66
        Diluted                  $1.24        $1.42         $1.70        $1.66
 
     Cash dividends per
      common share              $0.280       $0.275         $1.11        $1.09
 
     Weighted average
      number of common
      shares outstanding:
        Basic                1,893,762    1,864,579     1,882,910    1,837,362
        Diluted              1,897,760    1,870,731     1,885,827    1,842,282
 
 
                       Condensed Consolidated Balance Sheets
                                    (Unaudited)
 
                                                            March 31,
     Assets                                            2001               2000
     Current assets                             $33,928,711        $18,480,108
     Total property, plant and equipment,
      net                                        64,405,229         61,578,778
     Other assets                                 1,422,283          1,504,469
 
       Total Assets                             $99,756,223        $81,563,355
 
     Liabilities and Stockholders' Equity
 
     Current liabilities                        $38,894,405        $22,091,899
     Long-term debt                              22,596,755         23,323,802
     Deferred credits and other
      liabilities                                 4,882,675          4,425,171
        Total Liabilities                        66,373,835         49,840,872
     Stockholders' Equity                        33,382,388         31,722,483
 
       Total Liabilities and
        Stockholders' Equity                    $99,756,223        $81,563,355
 
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SOURCE RGC Resources, Inc.
    ROANOKE, Va., April 26 /PRNewswire/ -- RGC Resources, Inc. (Nasdaq:   RGCO)
 announced unaudited consolidated Company earnings of $2,346,515 or $1.24 per
 share on 1,897,760 average diluted shares for the quarter ended March 31,
 2001.  This compares to earnings for the same quarter last year of $2,663,707
 or $1.42 per share on 1,870,731 per average diluted share.  The decline in
 quarterly earnings was primarily attributed to the impacts of significantly
 higher energy prices.  The volume of natural gas and propane deliveries
 declined 2% during a period of colder weather as a result of customer
 conservation efforts and the use of alternative fuels.  In addition, the
 Company more than doubled its bad debt expense accrual to ensure adequate
 reserves for potentially uncollectible receivables resulting from higher
 energy prices.
     Earnings for the 12 months ended March 31, 2001 were $3,214,205, or $1.70
 per share on 1,885,827 average diluted shares outstanding compared to
 $3,058,583, or $1.66 per share on 1,842,282 average diluted shares for the 12
 months ended March 31, 2000.  The improved earnings for the 12 month period
 are primarily attributed to customer growth, increased sales volumes and
 improved margins partially offset by significantly higher bad debt expense
 accruals for doubtful accounts and higher interest expense, both related to
 higher energy costs.
 
     RGC Resources, Inc. serves approximately 75,000 customers through its
 natural gas distribution subsidiaries, Roanoke and Bluefield Gas Companies,
 and its propane subsidiary, Diversified Energy Company d/b/a Highland Propane
 Company, which serves the Roanoke Valley, Southwestern Virginia and Southern
 West Virginia.  The Company's stock is listed on the Nasdaq Stock market,
 trading symbol RGCO.
     Unaudited summary financial statements for the second quarter and twelve-
 months year-to-date are as follows:
 
 
                        RGC Resources, Inc. and Subsidiaries
 
       Condensed Consolidated Statements of Earnings and Comprehensive Income
                                    (Unaudited)
 
                              Three Months Ended        Twelve Months Ended
                                  March 31,                  March 31,
                              2001         2000          2001         2000
 
     Revenues              $46,448,858  $28,798,491  $116,013,332  $71,133,411
     Cost of sales          36,277,636   18,766,907    87,632,639   45,864,179
     Operating margin       10,171,222   10,031,584    28,380,693   25,269,232
     Other operating
      expenses               5,580,290    5,274,248    20,537,134   18,250,365
     Interest Expense          772,130      612,823     2,762,590    2,230,470
     Earnings before
      income taxes           3,818,802    4,144,513     5,080,969    4,788,397
     Income tax expense      1,472,287    1,480,806     1,866,764    1,729,814
     Net earnings            2,346,515    2,663,707     3,214,205    3,058,583
     Other comprehensive
      loss, net of tax        (106,145)          --            --           --
     Comprehensive income   $2,240,370   $2,663,707    $3,214,205   $3,058,583
 
     Net earnings per
      share of common
      stock:
        Basic                    $1.24        $1.43         $1.71        $1.66
        Diluted                  $1.24        $1.42         $1.70        $1.66
 
     Cash dividends per
      common share              $0.280       $0.275         $1.11        $1.09
 
     Weighted average
      number of common
      shares outstanding:
        Basic                1,893,762    1,864,579     1,882,910    1,837,362
        Diluted              1,897,760    1,870,731     1,885,827    1,842,282
 
 
                       Condensed Consolidated Balance Sheets
                                    (Unaudited)
 
                                                            March 31,
     Assets                                            2001               2000
     Current assets                             $33,928,711        $18,480,108
     Total property, plant and equipment,
      net                                        64,405,229         61,578,778
     Other assets                                 1,422,283          1,504,469
 
       Total Assets                             $99,756,223        $81,563,355
 
     Liabilities and Stockholders' Equity
 
     Current liabilities                        $38,894,405        $22,091,899
     Long-term debt                              22,596,755         23,323,802
     Deferred credits and other
      liabilities                                 4,882,675          4,425,171
        Total Liabilities                        66,373,835         49,840,872
     Stockholders' Equity                        33,382,388         31,722,483
 
       Total Liabilities and
        Stockholders' Equity                    $99,756,223        $81,563,355
 
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 SOURCE  RGC Resources, Inc.