RGC Resources, Inc. Reports Third Quarter Earnings
03 Agosto 2023 - 6:30PM
RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company
earnings of $686,816, or $0.07 per share, for the quarter ended
June 30, 2023, compared to earnings of $592,527, or $0.06 per
share, for the quarter ended June 30, 2022. CEO Paul Nester stated,
“We experienced earnings growth driven primarily by improved
utility margins and the investment in Mountain Valley Pipeline
(MVP), net of higher interest expense.” Nester further commented,
“We are pleased that the U.S. Supreme Court acted quickly, allowing
the MVP project to resume forward construction and hopefully
enabling a much needed, new supply of natural gas to the Roanoke
region by this winter.”
Net loss for the twelve months ended June 30, 2023 was
$1,130,122, or $0.11 per share. Underlying net income for the
twelve months ended June 30, 2023 was $10,209,447, or $1.03 per
share, compared to $9,255,083, or $1.06 per share, for the twelve
months ended June 30, 2022. Nester attributed the underlying net
income increase to improved utility margins associated with
infrastructure replacement programs, the implementation of the new
non-gas rates and the investment in the MVP. Underlying earnings
per share declined due to the impact of the March 2022 equity
offering on the weighted average shares outstanding.
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.
Utility margins is a non-GAAP measure defined as utility
revenues less cost of gas. Underlying net income removes the effect
of the after-tax impairment charge specific to the MVP investment
from the results of operations to enhance the comparability of
financial results between periods. Management considers these
non-GAAP measures to provide useful information to both management
and investors for purpose of such comparability and in evaluating
operating performance, but they should be considered in addition to
results prepared in accordance with GAAP and should not be
considered a substitute for, or superior to, GAAP results.
Net income for the three months ended June 30, 2023 is not
indicative of the results to be expected for the fiscal year ending
September 30, 2023 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.
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 customer growth,
infrastructure investment and margins. These risks and
uncertainties include gas prices and supply, geopolitical
considerations and regulatory and legal challenges and those set
forth in Item 1-A of the Company’s fiscal 2022 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 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, |
|
|
2023 |
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
$ |
13,660,245 |
|
$ |
17,259,899 |
|
$ |
99,084,797 |
|
|
$ |
83,407,916 |
|
Operating
expenses |
|
|
11,861,780 |
|
|
15,619,727 |
|
|
81,695,733 |
|
|
|
68,390,770 |
|
Operating
income |
|
|
1,798,465 |
|
|
1,640,172 |
|
|
17,389,064 |
|
|
|
15,017,146 |
|
Equity in earnings of unconsolidated affiliate |
|
519,482 |
|
|
235 |
|
|
524,991 |
|
|
|
252,721 |
|
Impairment of unconsolidated affiliates |
|
- |
|
|
- |
|
|
(15,270,090 |
) |
|
|
(39,822,213 |
) |
Other
income, net |
|
|
6,725 |
|
|
221,141 |
|
|
772,048 |
|
|
|
1,052,476 |
|
Interest
expense |
|
|
1,423,566 |
|
|
1,102,214 |
|
|
5,375,607 |
|
|
|
4,334,968 |
|
Income
(loss) before income taxes |
|
|
901,106 |
|
|
759,334 |
|
|
(1,959,594 |
) |
|
|
(27,834,838 |
) |
Income tax
expense (benefit) |
|
|
214,290 |
|
|
166,807 |
|
|
(829,472 |
) |
|
|
(7,517,946 |
) |
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
686,816 |
|
$ |
592,527 |
|
$ |
(1,130,122 |
) |
|
$ |
(20,316,892 |
) |
|
|
|
|
|
|
|
|
|
Net earnings
(loss) per share of common stock: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.07 |
|
$ |
0.06 |
|
$ |
(0.11 |
) |
|
$ |
(2.32 |
) |
Diluted |
|
$ |
0.07 |
|
$ |
0.06 |
|
$ |
(0.11 |
) |
|
$ |
(2.32 |
) |
|
|
|
|
|
|
|
|
|
Cash dividends per common share |
$ |
0.1975 |
|
$ |
0.1950 |
|
$ |
0.7875 |
|
|
$ |
0.7700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to underlying net
income: |
|
|
|
|
|
|
Net income (loss) as reported |
$ |
686,816 |
|
$ |
592,527 |
|
$ |
(1,130,122 |
) |
|
$ |
(20,316,892 |
) |
Impairment - net of income tax |
|
- |
|
|
- |
|
|
11,339,569 |
|
|
|
29,571,975 |
|
Underlying
net income |
|
$ |
686,816 |
|
$ |
592,527 |
|
$ |
10,209,447 |
|
|
$ |
9,255,083 |
|
|
|
|
|
|
|
|
|
|
Underlying earnings per share: basic and diluted |
$ |
0.07 |
|
$ |
0.06 |
|
$ |
1.03 |
|
|
$ |
1.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
9,939,843 |
|
|
9,798,700 |
|
|
9,873,686 |
|
|
|
8,756,025 |
|
Diluted |
|
|
9,942,871 |
|
|
9,804,289 |
|
|
9,873,686 |
|
|
|
8,756,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
Assets |
|
|
|
2023 |
|
|
2022 |
|
|
|
Current
assets |
|
|
|
$ |
25,754,930 |
|
$ |
35,589,886 |
|
|
|
Utility
property, net |
|
|
|
|
243,087,547 |
|
|
224,145,150 |
|
|
|
Other
non-current assets |
|
|
|
|
25,923,607 |
|
|
39,008,457 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
$ |
294,766,084 |
|
$ |
298,743,493 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
$ |
27,252,815 |
|
$ |
21,063,473 |
|
|
|
Long-term
debt, net |
|
|
|
|
126,252,586 |
|
|
130,265,070 |
|
|
|
Deferred credits and other non-current liabilities |
|
|
|
40,312,870 |
|
|
41,832,326 |
|
|
|
Total Liabilities |
|
|
|
|
193,818,271 |
|
|
193,160,869 |
|
|
|
Stockholders’ Equity |
|
|
|
|
100,947,813 |
|
|
105,582,624 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
|
|
$ |
294,766,084 |
|
$ |
298,743,493 |
|
|
|
Contact: |
Paul
Nester |
|
President and CEO |
Telephone: |
540-777-3831 |
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