RGC Resources, Inc. Reports 2023 Earnings
20 Novembro 2023 - 10:45AM
RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company
earnings of $11,299,282, or $1.14 per share, for the fiscal year
ended September 30, 2023, compared to a net loss of $31,732,602, or
$3.48 per share, for the fiscal year ended September 30, 2022. The
2022 net loss reflected total after-tax impairment charges of
approximately $40.9 million related to RGC Midstream, LLC’s
(“Midstream”) investment in the Mountain Valley Pipeline, LLC
(“MVP”). Underlying net income in 2022, a non-GAAP measure that
excludes the impairment, was $9,178,942, or $1.01 per share,
compared to the $11,299,282, or $1.14 per share, for fiscal 2023.
Roanoke Gas continued executing its strategy of
utility infrastructure investment to increase system reliability
and drive customer growth and earnings. CEO Paul Nester stated,
“Higher utility margins and the start-up of the renewable natural
gas facility in March drove utility income growth. We were also
excited to see construction of the MVP resume this year and look
forward to completion of the pipeline in early 2024. Additionally,
the overall earnings improvement included the increased non-cash
MVP earnings offset by higher borrowing costs in the Midstream
subsidiary.”
Net income for the quarter ended September 30,
2023 was $1,014,175, or $0.10 per share, compared to a net loss of
$11,415,229, or $1.16 per share, for the quarter ended September
30, 2022. The fourth quarter of 2022 included an after-tax,
non-cash MVP impairment charge of approximately $11.3 million.
Underlying net loss for the fourth quarter of 2022, which excludes
this impairment, was $75,660 or $0.01 per share. The significant
increase in 2023 earnings reflected non-cash MVP income resulting
from the resumption of construction in June of 2023.
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 revenue less cost of gas. Underlying net income removes the
effect of after-tax impairment charges 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.
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, 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 2022 Form10-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 fourth
quarter and twelve months are as follows:
|
RGC Resources, Inc.
and Subsidiaries |
Condensed
Consolidated Statements of Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Operating revenues |
|
$ |
12,467,528 |
|
|
$ |
14,112,560 |
|
|
$ |
97,439,765 |
|
|
$ |
84,165,222 |
|
Operating
expenses |
|
|
11,723,420 |
|
|
|
13,657,868 |
|
|
|
79,761,285 |
|
|
|
69,248,547 |
|
Operating
income |
|
|
744,108 |
|
|
|
454,692 |
|
|
|
17,678,480 |
|
|
|
14,916,675 |
|
Equity in
earnings of unconsolidated affiliate |
|
|
1,561,409 |
|
|
|
1,410 |
|
|
|
2,084,990 |
|
|
|
73,327 |
|
Impairment of unconsolidated affiliates |
|
- |
|
|
|
(15,270,090 |
) |
|
|
- |
|
|
|
(55,092,303 |
) |
Other
income, net |
|
|
443,373 |
|
|
|
568,893 |
|
|
|
646,528 |
|
|
|
1,456,983 |
|
Interest
expense |
|
|
1,430,213 |
|
|
|
1,187,015 |
|
|
|
5,618,805 |
|
|
|
4,497,929 |
|
Income
(loss) before income taxes |
|
|
1,318,677 |
|
|
|
(15,432,110 |
) |
|
|
14,791,193 |
|
|
|
(43,143,247 |
) |
Income tax
expense (benefit) |
|
|
304,502 |
|
|
|
(4,016,881 |
) |
|
|
3,491,911 |
|
|
|
(11,410,645 |
) |
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
1,014,175 |
|
|
$ |
(11,415,229 |
) |
|
$ |
11,299,282 |
|
|
$ |
(31,732,602 |
) |
|
|
|
|
|
|
|
|
|
Net earnings
(loss) per share of common stock: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.10 |
|
|
$ |
(1.16 |
) |
|
$ |
1.14 |
|
|
$ |
(3.48 |
) |
Diluted |
|
$ |
0.10 |
|
|
$ |
(1.16 |
) |
|
$ |
1.14 |
|
|
$ |
(3.48 |
) |
|
|
|
|
|
|
|
|
|
Cash dividends per common share |
$ |
0.1975 |
|
|
$ |
0.1950 |
|
|
$ |
0.7900 |
|
|
$ |
0.7800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to underlying net
income: |
|
|
|
|
|
|
Net income (loss) as reported |
$ |
1,014,175 |
|
|
$ |
(11,415,229 |
) |
|
$ |
11,299,282 |
|
|
$ |
(31,732,602 |
) |
Impairment - net of income tax |
|
- |
|
|
|
11,339,569 |
|
|
|
- |
|
|
|
40,911,544 |
|
Underlying net income (loss) |
$ |
1,014,175 |
|
|
$ |
(75,660 |
) |
|
$ |
11,299,282 |
|
|
$ |
9,178,942 |
|
|
|
|
|
|
|
|
|
|
Underlying
earnings (loss) per share: basic and diluted |
|
$ |
0.10 |
|
|
$ |
(0.01 |
) |
|
$ |
1.14 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
10,009,491 |
|
|
|
9,815,028 |
|
|
|
9,922,701 |
|
|
|
9,122,678 |
|
Diluted |
|
|
10,011,039 |
|
|
|
9,815,028 |
|
|
|
9,927,157 |
|
|
|
9,122,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
Assets |
|
|
|
2023 |
|
2022 |
|
|
Current
assets |
|
|
|
$ |
26,795,262 |
|
|
$ |
35,548,319 |
|
|
|
Utility
property, net |
|
|
|
|
247,583,551 |
|
|
|
229,861,074 |
|
|
|
Other
non-current assets |
|
|
|
|
29,350,527 |
|
|
|
24,899,850 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
$ |
303,729,340 |
|
|
$ |
290,309,243 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
$ |
32,918,787 |
|
|
$ |
22,315,310 |
|
|
|
Long-term
debt, net |
|
|
|
|
125,844,728 |
|
|
|
135,695,289 |
|
|
|
Deferred credits and other non-current liabilities |
|
|
|
44,233,200 |
|
|
|
39,207,988 |
|
|
|
Total Liabilities |
|
|
|
|
202,996,715 |
|
|
|
197,218,587 |
|
|
|
Stockholders' Equity |
|
|
|
|
100,732,625 |
|
|
|
93,090,656 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
|
|
$ |
303,729,340 |
|
|
$ |
290,309,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: |
|
Timothy J. MulvaneyInterim CFO and Treasurer |
Telephone: |
|
(540) 777-3997 |
|
|
|
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