ROANOKE, Va., May 4, 2015 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,779,344 or $0.59 per average share outstanding for the quarter ended March 31, 2015.  This compares to consolidated earnings of $2,846,795 or $0.60 per average share outstanding for the quarter ended March 31, 2014.  CFO Paul Nester attributed the slight decline in earnings primarily due to lower volumes resulting from warmer weather as compared to the same period last year.

Earnings for the twelve months ending March 31, 2015 were $4,842,577 or $1.03 per share compared to $0.97 per share for the twelve months ended March 31, 2014.  Nester attributed the higher year-over-year earnings primarily to improved utility margins and lower interest expense.

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.

Net income for the three months ended March 31, 2015 are not indicative of the results to be expected for the fiscal year ending September 30, 2015 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.  Past performance is not necessarily a predictor of future results.

Summary financial statements for the second quarter and twelve months are as follows:


RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
     
 Three Months Ended March 31,Twelve Months Ended March 31,
  2015  2014  2015  2014 
Revenues$    26,431,729 $    32,699,965 $    69,986,769 $    72,994,595 
Cost of sales 16,217,959  22,538,840  40,177,884  44,549,797 
Gross margin 10,213,770  10,161,125  29,808,885  28,444,798 
Other operating expenses, net 5,341,235  5,085,859  20,275,673  19,166,989 
Interest expense 385,162  455,657  1,689,120  1,833,895 
Income before income taxes 4,487,373  4,619,609  7,844,092  7,443,914 
Income tax expense 1,708,029  1,772,814  3,001,515  2,865,139 
Net income$      2,779,344 $      2,846,795 $      4,842,577 $      4,578,775 
Net earnings per share of common stock:    
Basic$              0.59 $              0.60 $              1.03 $              0.97 
Diluted$              0.59 $              0.60 $              1.03 $              0.97 
Cash dividends per common share$          0.1925 $          0.1850 $          0.7550 $          0.7300 
Weighted average number of common shares outstanding:    
Basic 4,724,548  4,713,567  4,720,964  4,709,836 
Diluted 4,728,697  4,713,983  4,723,796  4,711,348 



Condensed Consolidated Balance Sheets
(Unaudited)
   
 March 31,
Assets 2015  2014 
Current assets$         20,789,027 $         24,084,243 
Total property, plant and equipment, net 113,261,232  102,847,991 
Other assets 9,588,656  4,510,842 
Total Assets$       143,638,915 $       131,443,076 
Liabilities and Stockholders’ Equity  
Current liabilities
$         19,441,313 $         33,875,514 
Long-term debt 30,500,000  11,400,000 
Deferred credits and other liabilities 38,555,148  33,364,737 
Total Liabilities 88,496,461  78,640,251 
Stockholders’ Equity 55,142,454  52,802,825 
Total Liabilities and Stockholders’ Equity$       143,638,915 $       131,443,076 



Paul W. Nester
Vice President and CFO
540-777-3837