ROANOKE, Va., May 01, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $6,443,390, or $0.63 per share, for the second quarter ended March 31, 2024, compared to $6,341,886, or $0.64 per share, for the fiscal quarter ended March 31, 2023. The increase over the quarter a year ago included $1.2 million in earnings from the Company's investment in the Mountain Valley Pipeline, LLC ("MVP"), as well as improved utility margins which inflationary cost increases largely offset.
Continued investments in utility infrastructure at Roanoke Gas to enhance system reliability and deliver gas to new customers contributed to earnings. CEO Paul Nester stated, "A mild winter has led to lower revenues, and persistent inflationary cost pressures are challenging earnings. The mild weather aided construction progress of the MVP during the quarter, and the MVP has filed for a final permit from FERC to allow gas to flow in the next 30 days." As noted above and announced last quarter, Roanoke Gas is experiencing increasing costs and has filed for relief through a rate application with the State Corporation Commission with rates to go into effect July 1, 2024, subject to refund.
Through the first six months of fiscal 2024, the Company's net income of $11,463,382, or $1.14 per share, was up 19.4% from $9,598,291, or $0.97 per share, primarily due to earnings from the Company's investment in the MVP.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.
The statements in this release that are not historical facts constitute "forward-looking statements" made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. 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 any expectations expressed in the Company's forward-looking statements, regarding inflation, customer growth, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the MVP construction and operation, and regulatory and legal challenges along with risks included under Item 1-A in the Company's fiscal 2023 Form 10-K. Forward-looking statements reflect the Company's current expectations only as of the date they are made. The Company assumes no duty to update these statements should expectations change or actual results differ from current expectations except as required by applicable laws and regulations.
Past performance is not necessarily a predictor of future results.
Summary financial statements for the second quarter and fiscal year to date are as follows:
| RGC Resources, Inc. and Subsidiaries | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| March 31, | March 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Operating revenues | $ | 32,659,376 | $ | 38,029,657 | $ | 57,078,728 | $ | 71,311,992 | ||||
| Operating expenses | 24,029,667 | 28,438,235 | 41,796,982 | 56,176,085 | ||||||||
| Operating income | 8,629,709 | 9,591,422 | 15,281,746 | 15,135,907 | ||||||||
| Equity in earnings of unconsolidated affiliate | 1,229,384 | 2,867 | 2,697,219 | 4,099 | ||||||||
| Other income, net | 89,487 | 121,824 | 210,273 | 196,430 | ||||||||
| Interest expense | 1,566,613 | 1,395,862 | 3,202,886 | 2,765,026 | ||||||||
| Income before income taxes | 8,381,967 | 8,320,251 | 14,986,352 | 12,571,410 | ||||||||
| Income tax expense | 1,938,577 | 1,978,365 | 3,522,970 | 2,973,119 | ||||||||
| Net income | $ | 6,443,390 | $ | 6,341,886 | $ | 11,463,382 | $ | 9,598,291 | ||||
| Net earnings per share of common stock: | ||||||||||||
| Basic | $ | 0.63 | $ | 0.64 | $ | 1.14 | $ | 0.97 | ||||
| Diluted | $ | 0.63 | $ | 0.64 | $ | 1.13 | $ | 0.97 | ||||
| Cash dividends per common share | $ | 0.2000 | $ | 0.1975 | $ | 0.4000 | $ | 0.3950 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 10,170,595 | 9,911,202 | 10,099,533 | 9,870,259 | ||||||||
| Diluted | 10,174,006 | 9,918,708 | 10,102,284 | 9,877,501 | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||
| (Unaudited) | ||||||||||||
| March 31, | ||||||||||||
| Assets | 2024 | 2023 | ||||||||||
| Current assets | $ | 28,525,645 | $ | 32,360,035 | ||||||||
| Utility property, net | 254,140,117 | 239,285,862 | ||||||||||
| Other non-current assets | 30,693,768 | 24,806,325 | ||||||||||
| Total Assets | $ | 313,359,530 | $ | 296,452,222 | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Current liabilities | $ | 21,702,382 | $ | 43,632,463 | ||||||||
| Long-term debt, net | 135,916,887 | 112,762,045 | ||||||||||
| Deferred credits and other non-current liabilities | 45,196,399 | 39,779,306 | ||||||||||
| Total Liabilities | 202,815,668 | 196,173,814 | ||||||||||
| Stockholders' Equity | 110,543,862 | 100,278,408 | ||||||||||
| Total Liabilities and Stockholders' Equity | $ | 313,359,530 | $ | 296,452,222 | ||||||||
Contact:
Timothy J. Mulvaney
Vice President, Treasurer and CFO
Telephone: (540) 777-3997
