RGC Resources, Inc. Reports Third Quarter Earnings
RGC Resources, Inc. (NASDAQ: RGCO) reported consolidated earnings of $610,840 or $0.07 per diluted share for Q2 2021, a decline from $1,206,578 or $0.15 per diluted share in Q2 2020.
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Rhea-AI Summary
RGC Resources, Inc. (NASDAQ: RGCO) reported consolidated earnings of $610,840 or $0.07 per diluted share for Q2 2021, a decline from $1,206,578 or $0.15 per diluted share in Q2 2020. CEO Paul Nester noted that the drop is primarily due to significantly lower non-cash MVP equity in earnings, COVID-19 related bad debt, and maintenance investments. For the twelve months ending June 30, 2021, earnings were $9,772,285 or $1.19 per diluted share, down from $11,349,435 or $1.40 per diluted share in the previous year. The Company projects lower net income for fiscal 2021 compared to 2020.
Positive
- Customer growth is improving.
- Utility margins are better due to infrastructure replacement programs.
Negative
- Significant decrease in earnings due to lower non-cash MVP equity.
- COVID-19 related bad debt expenses have impacted profitability.
- One-time maintenance costs affected earnings in the previous fiscal year.
- Net income for fiscal 2021 expected to be lower than in 2020.
Details
News Market Reaction – RGCO
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ROANOKE, Va., Aug. 04, 2021 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of
Earnings for the twelve months ending June 30, 2021 were
RGC Resources, Inc. provides energy and related products and services through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC.
Net income for the three months ended June 30, 2021 is not indicative of the results to be expected for the fiscal year ending September 30, 2021 as quarterly earnings are affected by the highly seasonal nature of the business and weather conditions generally result in greater earnings during the winter months. Net income for fiscal 2021 is expected to be lower than 2020.
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, and research and development activities. 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.
Past performance is not necessarily a predictor of future results.
Summary financial statements for the third quarter and twelve months are as follows:
| RGC Resources, Inc. and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating revenues | $ | 14,048,846 | $ | 11,071,918 | $ | 71,599,814 | $ | 63,146,971 | ||||||||
| Operating expenses | 12,506,513 | 9,736,255 | 58,275,744 | 49,239,011 | ||||||||||||
| Operating income | 1,542,333 | 1,335,663 | 13,324,070 | 13,907,960 | ||||||||||||
| Equity in earnings of unconsolidated affiliate | 133,864 | 1,205,574 | 2,813,371 | 4,470,184 | ||||||||||||
| Other income, net | 130,186 | 52,556 | 855,965 | 638,345 | ||||||||||||
| Interest expense | 1,000,238 | 986,203 | 4,017,308 | 4,093,103 | ||||||||||||
| Income before income taxes | 806,145 | 1,607,590 | 12,976,098 | 14,923,386 | ||||||||||||
| Income tax expense | 195,305 | 401,012 | 3,203,813 | 3,573,951 | ||||||||||||
| Net income | $ | 610,840 | $ | 1,206,578 | $ | 9,772,285 | $ | 11,349,435 | ||||||||
| Net earnings per share of common stock: | ||||||||||||||||
| Basic | $ | 0.07 | $ | 0.15 | $ | 1.19 | $ | 1.40 | ||||||||
| Diluted | $ | 0.07 | $ | 0.15 | $ | 1.19 | $ | 1.40 | ||||||||
| Cash dividends per common share | $ | 0.185 | $ | 0.175 | $ | 0.730 | $ | 0.690 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 8,260,579 | 8,143,887 | 8,200,295 | 8,104,298 | ||||||||||||
| Diluted | 8,273,203 | 8,159,324 | 8,213,716 | 8,129,737 | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| June 30, | ||||||||||||||||
| Assets | 2021 | 2020 | ||||||||||||||
| Current assets | $ | 14,862,881 | $ | 12,545,512 | ||||||||||||
| Utility plant, net | 207,993,519 | 194,049,965 | ||||||||||||||
| Other assets | 74,005,332 | 66,745,281 | ||||||||||||||
| Total Assets | $ | 296,861,732 | $ | 273,340,758 | ||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||
| Current liabilities | $ | 21,605,817 | $ | 15,070,172 | ||||||||||||
| Long-term debt, net | 123,151,387 | 116,346,967 | ||||||||||||||
| Deferred credits and other liabilities | 53,265,790 | 51,672,467 | ||||||||||||||
| Total Liabilities | 198,022,994 | 183,089,606 | ||||||||||||||
| Stockholders' Equity | 98,838,738 | 90,251,152 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 296,861,732 | $ | 273,340,758 | ||||||||||||
| Contact: | Paul W. Nester |
| President and CEO | |
| Telephone: | 540-777-3837 |
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