ROANOKE, Va., Aug. 05, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $156,692, or $0.02 per share, for the third quarter ended June 30, 2024, compared to $686,816, or $0.07 per share, for the fiscal quarter ended June 30, 2023. The decline was the result of decreased operating income due to higher personnel and professional costs as well as persistent inflationary pressures across most areas compared to a year ago, along with lower noncash earnings from the Company's investment in the Mountain Valley Pipeline, LLC ("MVP") as the pipeline transitioned from construction to gas transmission operations.
CEO Paul Nester stated, "We are excited that the MVP went into service in June. This milestone benefits our customers immediately as it enhances system reliability and stability. It empowers new local customers in the short term as we expect to provide gas to our first customer in Franklin County in the fiscal fourth quarter. And finally, we believe the pipeline fosters regional growth in the long term by providing a reliable, low-cost source of energy for years to come."
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. The interim rates went into effect July 1, 2024, subject to refund.
Through the first nine months of fiscal 2024, the Company's net income of $11,620,074, or $1.15 per share, was up 13% from $10,285,107, or $1.04 per share, in the first nine months of the prior year, 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 and the Company's rate application 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 third quarter and fiscal year to date are as follows:
| RGC Resources, Inc. and Subsidiaries | |||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Operating revenues | $ | 14,458,202 | $ | 13,660,245 | $ | 71,536,930 | $ | 84,972,237 | |||||
| Operating expenses | 12,900,609 | 11,861,780 | 54,697,591 | 68,037,865 | |||||||||
| Operating income | 1,557,593 | 1,798,465 | 16,839,339 | 16,934,372 | |||||||||
| Equity in earnings of unconsolidated affiliate | 282,604 | 519,482 | 2,979,823 | 523,581 | |||||||||
| Other income (expense), net | (69,349 | ) | 6,725 | 140,924 | 203,155 | ||||||||
| Interest expense | 1,567,093 | 1,423,566 | 4,769,979 | 4,188,592 | |||||||||
| Income before income taxes | 203,755 | 901,106 | 15,190,107 | 13,472,516 | |||||||||
| Income tax expense | 47,063 | 214,290 | 3,570,033 | 3,187,409 | |||||||||
| Net income | $ | 156,692 | $ | 686,816 | $ | 11,620,074 | $ | 10,285,107 | |||||
| Net earnings per share of common stock: | |||||||||||||
| Basic | $ | 0.02 | $ | 0.07 | $ | 1.15 | $ | 1.04 | |||||
| Diluted | $ | 0.02 | $ | 0.07 | $ | 1.15 | $ | 1.04 | |||||
| Cash dividends per common share | $ | 0.2000 | $ | 0.1975 | $ | 0.6000 | $ | 0.5925 | |||||
| Weighted average number of common shares outstanding: | |||||||||||||
| Basic | 10,188,592 | 9,939,843 | 10,129,111 | 9,893,454 | |||||||||
| Diluted | 10,192,797 | 9,942,871 | 10,132,347 | 9,899,221 | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (Unaudited) | |||||||||||||
| June 30, | |||||||||||||
| Assets | 2024 | 2023 | |||||||||||
| Current assets | $ | 25,408,031 | $ | 25,754,930 | |||||||||
| Utility property, net | 257,936,755 | 243,087,547 | |||||||||||
| Other non-current assets | 30,809,374 | 25,923,607 | |||||||||||
| Total Assets | $ | 314,154,160 | $ | 294,766,084 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities | $ | 23,782,556 | $ | 27,252,815 | |||||||||
| Long-term debt, net | 136,311,348 | 126,252,586 | |||||||||||
| Deferred credits and other non-current liabilities | 45,292,464 | 40,312,870 | |||||||||||
| Total Liabilities | 205,386,368 | 193,818,271 | |||||||||||
| Stockholders' Equity | 108,767,792 | 100,947,813 | |||||||||||
| Total Liabilities and Stockholders' Equity | $ | 314,154,160 | $ | 294,766,084 | |||||||||
| Contact: | Timothy J. Mulvaney Vice President, Treasurer and CFO | |
| Telephone: | (540) 777-3997 |
