ROANOKE, Va., May 8, 2008 (PRIME NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,418,609 or $1.10 per average share outstanding on continuing and total operations for the quarter ended March 31, 2008. This compares to consolidated earnings of $2,286,035 or $1.06 per average share outstanding on continuing operations and earnings of $2,592,704 or $1.20 per average share outstanding on total operations for the quarter ended March 31, 2007. Chairman, President and CEO John Williamson attributed the improvement in earnings on continuing operations to improvement in gross margins and lower operating expenses.
Earnings per share for the twelve months ending March 31, 2008 were $1.81 on continuing operations and $1.59 on total operations compared to $1.74 on continuing operations and $1.95 on total operations for the twelve months ended March 31, 2007. Earnings on continuing operations for the twelve months ended March 31, 2008 were positively impacted by improved margins compared to the prior period.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company and RGC Ventures of Virginia, Inc.
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, research and development activities and similar matters. 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.
Summary financial statements for the second quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2008 2007 2008 2007
------------------------ ------------------------
Revenues $39,564,378 $37,572,113 $91,216,830 $86,708,076
Cost of sales 30,911,562 29,031,997 65,756,959 62,313,414
----------- ----------- ----------- -----------
Gross margin 8,652,816 8,540,116 25,459,871 24,394,662
Other operating
expenses 4,221,079 4,372,255 17,137,710 16,590,125
Interest expense 518,029 481,375 2,007,110 1,908,855
----------- ----------- ----------- -----------
Income from
continuing
operations
before income
taxes 3,913,708 3,686,486 6,315,051 5,895,682
Income tax expense
from continuing
operations 1,495,099 1,400,451 2,362,453 2,165,357
----------- ----------- ----------- -----------
Net income from
continuing
operations 2,418,609 2,286,035 3,952,598 3,730,325
Net income (loss)
from discontinued
operations, net
of income taxes -- 306,669 (476,681) 450,169
----------- ----------- ----------- -----------
Net income 2,418,609 2,592,704 3,475,917 4,180,494
Other
comprehensive
loss, net of tax (447,040) (23,762) (820,920) (90,722)
----------- ----------- ----------- -----------
Comprehensive
income $ 1,971,569 $ 2,568,942 $ 2,654,997 $ 4,089,772
=========== =========== =========== ===========
Basic earnings per
share of
common stock:
Income from
continuing
operations $ 1.10 $ 1.06 $ 1.81 $ 1.74
Discontinued
operations -- 0.14 (0.22) 0.21
----------- ----------- ----------- -----------
Net income $ 1.10 $ 1.20 $ 1.59 $ 1.95
=========== =========== =========== ===========
Diluted earnings
per share of
common stock:
Income from
continuing
operations $ 1.10 $ 1.06 $ 1.80 $ 1.73
Discontinued
operations -- 0.14 (0.22) 0.21
----------- ----------- ----------- -----------
Net income $ 1.10 $ 1.20 $ 1.58 $ 1.94
=========== =========== =========== ===========
Cash dividends
per common share $ 0.3125 $ 0.3050 $ 1.2350 $ 1.2100
=========== =========== =========== =========
Weighted average
number of common
shares
outstanding:
Basic 2,198,624 2,157,532 2,183,930 2,142,079
Diluted 2,208,143 2,168,174 2,194,532 2,152,274
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
2008 2007
Assets ------------ ------------
Current assets $ 38,213,104 $ 41,053,603
Total property, plant and equipment, net 74,118,513 71,365,305
Other assets 3,474,118 387,987
------------ ------------
Total Assets $115,805,735 $112,806,895
============ ============
Liabilities and Stockholders' Equity
Current liabilities $ 30,212,434 $ 27,217,693
Long-term debt 23,000,000 28,000,000
Deferred credits and other liabilities 18,027,180 13,629,013
------------ ------------
Total Liabilities 71,239,614 68,846,706
Stockholders' Equity 44,566,121 43,960,189
------------ ------------
Total Liabilities and
Stockholders' Equity $115,805,735 $112,806,895
============ ============