Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
| Release Date: | November 24, 2008 | |
| Contact: | John B. Williamson, III | |
| President, Chairman and CEO | ||
| Telephone: | 540-777-3810 |
RGC RESOURCES, INC.
ANNUAL AND FOURTH QUARTER FINANCIAL RESULTS
ROANOKE, Va. (November 24, 2008)—RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $4,221,134 or $1.91 per average diluted share outstanding for the fiscal year ended September 30, 2008. This compares to consolidated earnings of $3,806,209 or $1.75 per average diluted share outstanding for the year ended September 30, 2007, and reflects an earnings per share increase of 9 percent. President, Chairman and CEO John Williamson attributed the improvement in earnings to improvement in gross margins and expense control.
Net loss for the three months ended September 30, 2008 was ($78,171) or ($0.04) per average diluted share outstanding compared to a loss of ($248,944) or ($0.12) per average share outstanding for the quarter ended September 30, 2007. The majority of the Company’s sales occur in the winter months and as a result, the Company’s third and fourth quarters normally reflect earnings losses. Williamson attributed the lower loss in the fourth quarter of this year primarily to improved gross margins.
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 fourth quarter and twelve months are as follows:
RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
| Three Months Ended September 30, |
Twelve Months Ended September 30, | ||||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Revenues |
$ | 9,178,906 | $ | 10,780,169 | $ | 94,636,826 | $ | 89,901,301 | |||||||
| Cost of sales |
4,342,349 | 6,289,221 | 68,723,214 | 64,679,525 | |||||||||||
| Gross Margin |
4,836,557 | 4,490,948 | 25,913,612 | 25,221,776 | |||||||||||
| Other operating expenses |
4,535,390 | 4,525,169 | 17,040,964 | 17,288,255 | |||||||||||
| Interest expense |
459,815 | 465,920 | 2,033,082 | 1,931,444 | |||||||||||
| Income (loss) from continuing operations before income taxes |
(158,648 | ) | (500,141 | ) | 6,839,566 | 6,002,077 | |||||||||
| Income tax expense (benefit) from continuing operations |
(80,477 | ) | (231,602 | ) | 2,581,742 | 2,236,408 | |||||||||
| Income (loss) from continuing operations |
(78,171 | ) | (268,539 | ) | 4,257,824 | 3,765,669 | |||||||||
| Income (loss) from discontinued operations, net of income taxes |
— | 19,595 | (36,690 | ) | 40,540 | ||||||||||
| Net income (loss) |
$ | (78,171 | ) | $ | (248,944 | ) | $ | 4,221,134 | $ | 3,806,209 | |||||
| Basic earnings per share of common stock: |
|||||||||||||||
| Income (loss) from continuing operations |
$ | (0.04 | ) | $ | (0.13 | ) | $ | 1.94 | $ | 1.74 | |||||
| Discontinued operations |
— | 0.01 | (0.02 | ) | 0.02 | ||||||||||
| Net income (loss) |
$ | (0.04 | ) | $ | (0.12 | ) | $ | 1.92 | $ | 1.76 | |||||
| Diluted earnings per share of common stock: |
|||||||||||||||
| Income (loss) from continuing operations |
$ | (0.04 | ) | $ | (0.13 | ) | $ | 1.93 | $ | 1.73 | |||||
| Discontinued operations |
— | 0.01 | (0.02 | ) | 0.02 | ||||||||||
| Net income (loss) |
$ | (0.04 | ) | $ | (0.12 | ) | $ | 1.91 | $ | 1.75 | |||||
| Cash dividends declared per common share |
$ | 0.3125 | $ | 0.3050 | $ | 1.2500 | $ | 1.2200 | |||||||
| Weighted average number of common shares outstanding: |
|||||||||||||||
| Basic |
2,201,263 | 2,162,803 | |||||||||||||
| Diluted |
2,211,226 | 2,173,258 | |||||||||||||
Condensed Consolidated Balance Sheets
(Unaudited)
| September 30, | ||||||
| 2008 | 2007 | |||||
| Assets |
||||||
| Current assets |
$ | 38,411,852 | $ | 41,460,539 | ||
| Total property, plant and equipment, net |
75,608,072 | 72,587,269 | ||||
| Other assets |
4,107,790 | 2,284,647 | ||||
| Total Assets |
$ | 118,127,714 | $ | 116,332,455 | ||
| Liabilities and Stockholders’ Equity |
||||||
| Current liabilities |
$ | 31,615,687 | $ | 32,999,174 | ||
| Long-term debt |
23,000,000 | 23,000,000 | ||||
| Deferred credits and other liabilities |
19,788,969 | 17,968,048 | ||||
| Total Liabilities |
74,404,656 | 73,967,222 | ||||
| Stockholders’ Equity |
43,723,058 | 42,365,233 | ||||
| Total Liabilities and Stockholders’ Equity |
$ | 118,127,714 | $ | 116,332,455 | ||