Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment 
Prudential Financial Reports Higher Q4 Profit on Strong Underwriting and Investment Gains 
Baidu Approves $5 Billion Share Buyback and Plans First-Ever Dividend in 2026 
Anthropic Eyes $350 Billion Valuation as AI Funding and Share Sale Accelerate 
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Instagram Outage Disrupts Thousands of U.S. Users 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
ROANOKE, Va., Feb. 01, 2016 -- RGC Resources, Inc. (NASDAQ:RGCO) announced consolidated Company earnings of $1,922,790 or $0.40 per average share outstanding for the quarter ended December 31, 2015. This compares to consolidated earnings of $1,924,376 or $0.41 per average share outstanding for the quarter ended December 31, 2014. CFO Paul Nester attributed the essentially flat earnings to slightly improved utility margins offset by higher depreciation.
Earnings for the twelve months ending December 31, 2015 were $5,092,829 or $1.08 per share compared to $4,910,028 or $1.04 per share for the twelve months ended December 31, 2014. Nester attributed the increase in earnings to improved utility margins, customer growth 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, RGC Midstream, LLC 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 December 31, 2015 is not indicative of the results to be expected for the fiscal year ending September 30, 2016 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 first quarter and twelve months are as follows:
| RGC Resources, Inc. and Subsidiaries | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Revenues | $ | 16,010,056 | $ | 21,250,065 | $ | 62,949,598 | $ | 76,255,005 | ||||
| Cost of sales | 7,271,940 | 12,627,922 | 32,627,192 | 46,498,765 | ||||||||
| Gross margin | 8,738,116 | 8,622,143 | 30,322,406 | 29,756,240 | ||||||||
| Other operating expenses, net | 5,222,400 | 5,113,670 | 20,537,767 | 20,020,297 | ||||||||
| Interest expense | 408,356 | 397,067 | 1,523,708 | 1,759,615 | ||||||||
| Income before income taxes | 3,107,360 | 3,111,406 | 8,260,931 | 7,976,328 | ||||||||
| Income tax expense | 1,184,570 | 1,187,030 | 3,168,102 | 3,066,300 | ||||||||
| Net income | $ | 1,922,790 | $ | 1,924,376 | $ | 5,092,829 | $ | 4,910,028 | ||||
| Net earnings per share of common stock: | ||||||||||||
| Basic | $ | 0.40 | $ | 0.41 | $ | 1.08 | $ | 1.04 | ||||
| Diluted | $ | 0.40 | $ | 0.41 | $ | 1.07 | $ | 1.04 | ||||
| Cash dividends per common share | $ | 0.2025 | $ | 0.1925 | $ | 0.7800 | $ | 0.7475 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 4,748,279 | 4,721,490 | 4,734,962 | 4,718,257 | ||||||||
| Diluted | 4,752,179 | 4,725,597 | 4,738,380 | 4,720,153 | ||||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| December 31, | ||||||
| Assets | 2015 | 2014 | ||||
| Current assets | $ | 21,104,828 | $ | 25,523,109 | ||
| Total property, plant and equipment, net | 121,308,922 | 111,919,607 | ||||
| Other assets | 12,490,905 | 9,411,728 | ||||
| Total Assets | $ | 154,904,655 | $ | 146,854,444 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities | $ | 27,614,707 | $ | 26,954,902 | ||
| Long-term debt | 31,854,285 | 30,309,332 | ||||
| Deferred credits and other liabilities | 41,371,592 | 36,496,227 | ||||
| Total Liabilities | 100,840,584 | 93,760,461 | ||||
| Stockholders’ Equity | 54,064,071 | 53,093,983 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 154,904,655 | $ | 146,854,444 | ||
Contact: Paul W. Nester Vice President and CFO Telephone: 540-777-3837
