Company Earnings for the Quarter Ending December 31, 2005
ROANOKE, Va., Jan. 31 - RGC Resources, Inc. (Nasdaq: RGCO) announced consolidated Company earnings of $1,452,182 or $0.69 per average diluted shares outstanding for the quarter ended December 31, 2005. This compares to quarterly earnings for the same quarter last year of $1,625,395 or $0.78 per diluted share. John Williamson, Chairman, President and CEO, attributed the decline in earnings for the quarter to the impact of higher natural gas costs increasing bad debt expense accruals and higher employee benefit costs including pension expense.
Earnings per share for the twelve months ending December 31, 2005 were $1.54 on continuing operations and $1.59 for total operations compared to $1.23 on continuing operations and $6.30 on total operations for the twelve months ended December 31, 2004. Earnings for the twelve months ended December 31, 2004 were positively impacted by a gain of $9,504,329 or $4.65 per diluted share on the sale of propane assets in the quarter ended September 30, 2004. Earnings on continuing operations for the twelve months ended December 31, 2005 were positively impacted by improved margins and sales volumes compared to the prior period.
RGC Resources, Inc. provides energy and related products and services to customers in Virginia and West Virginia through its operating subsidiaries including Roanoke Gas Company, Bluefield 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 first quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings and Comprehensive Income
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenues $52,763,999 $34,652,352 $139,759,434 $107,919,948
Cost of sales 44,900,635 27,354,335 114,042,085 83,974,404
Gross margin 7,863,364 7,298,017 25,717,349 23,945,544
Other operating
expenses 4,845,045 4,135,459 18,408,575 17,965,614
Interest expense 668,787 544,718 2,149,362 1,928,235
Income from
continuing
operations
before income
taxes 2,349,532 2,617,840 5,159,412 4,051,695
Income tax expense
from continuing
operations 897,350 1,000,554 1,936,583 1,518,178
Net income from
continuing
operations 1,452,182 1,617,286 3,222,829 2,533,517
Net income from
discontinued
operations,
net of income
taxes - 8,109 110,864 10,426,488
Net income 1,452,182 1,625,395 3,333,693 12,960,005
Other comprehensive
income (loss), net
of tax 22,386 32,420 (344,995) 81,581
Comprehensive income $1,474,568 $1,657,815 $2,988,698 $13,041,586
Basic earnings per
share of common
stock:
Income from
continuing
operations $0.69 $0.79 $1.54 $1.24
Discontinued
operations - - 0.05 5.11
Net income $0.69 $0.79 $1.60 $6.35
Diluted earnings per
share of common
stock:
Income from
continuing
operations $0.69 $0.78 $1.53 $1.23
Discontinued
operations - - 0.05 5.07
Net income $0.69 $0.78 $1.59 $6.30
Cash dividends per
common share $0.300 $0.295 $1.185 $5.680
Weighted average
number of common
shares outstanding:
Basic 2,104,089 2,066,901 2,089,224 2,042,149
Diluted 2,114,880 2,078,860 2,102,119 2,056,588
Condensed Consolidated Balance Sheets
(Unaudited)
December 31,
Assets 2005 2004
Current assets $59,907,867 $46,503,889
Total property, plant and equipment, net 74,855,914 71,792,501
Other assets 555,729 534,695
Total Assets $135,319,510 $118,831,085
Liabilities and Stockholders' Equity
Current liabilities $53,071,271 $53,152,887
Long-term debt 30,000,000 16,000,000
Deferred credits and other liabilities 13,047,541 11,967,555
Total Liabilities 96,118,812 81,120,442
Stockholders' Equity 39,200,698 37,710,643
Total Liabilities and Stockholders'
Equity $135,319,510 $118,831,085
