0001069533-20-000030.txt : 20200804 0001069533-20-000030.hdr.sgml : 20200804 20200804140003 ACCESSION NUMBER: 0001069533-20-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200803 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200804 DATE AS OF CHANGE: 20200804 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RGC RESOURCES INC CENTRAL INDEX KEY: 0001069533 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 541909697 STATE OF INCORPORATION: VA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26591 FILM NUMBER: 201072632 BUSINESS ADDRESS: STREET 1: 519 KIMBALLAVENUE N.E. CITY: ROANOKE STATE: VA ZIP: 24016 BUSINESS PHONE: 5407774427 MAIL ADDRESS: STREET 1: 519 KIMBALL AVENUE N.E. CITY: ROANOKE STATE: VA ZIP: 24016 8-K 1 a2020q3earningsrelease.htm 8-K Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): August 3, 2020
RGC RESOURCES, INC.
(Exact name of Registrant as specified in its charter)
  
Virginia 000-26591 54-1909697
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
519 Kimball Ave., N.E. Roanoke, Virginia 24016
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: 540-777-4427
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 240.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
         
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $5 Par ValueRGCONASDAQ Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 if the Securities Exchange Act of 1934.
Emerging growth company¨
                
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨


ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 3, 2020, RGC Resources, Inc. issued a press release announcing the results for the third quarter ending June 30, 2020. A copy of this press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.
ITEM 9.01.FINANCIAL STATEMENT AND EXHIBITS.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  RGC RESOURCES, INC.
Date: August 4, 2020  By:/s/ Randall P. Burton, II
  Randall P. Burton, II
  Vice President, Secretary, Treasurer and CFO

 EX-99.1 2 a2020q3exhibit991earni.htm EX-99.1 Document

Exhibit 99.1
NEWS RELEASE
RGC RESOURCES, INC.
 
Release Date:  August 3, 2020
Contact:  Randall P. Burton, II
  Vice President and CFO
Telephone:  540-777-3997

RGC RESOURCES, INC. REPORTS
THIRD QUARTER EARNINGS


ROANOKE, Va. (August 3, 2020)--RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $1,206,578 or $0.15 per diluted share for the quarter ended June 30, 2020. This compares to consolidated earnings of $1,138,555 or $0.14 per diluted share for the quarter ended June 30, 2019. CEO Paul Nester stated, “We experienced earnings growth driven primarily by improved utility margins, net of prior year rate case estimates, and the investment in the Mountain Valley Pipeline (MVP)”.
Earnings for the twelve months ended June 30, 2020 were $11,349,435 or $1.40 per diluted share outstanding compared to $8,927,266 or $1.11 per diluted share for the twelve months ended June 30, 2019. Nester attributed the significant increase in trailing twelve-month net income to improved utility margins associated with infrastructure replacement programs, implementation of the new non-gas rates, and the investment in the MVP.
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.
Net income for the three months ended June 30, 2020 is not indicative of the results to be expected for the fiscal year ending September 30, 2020 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. Additionally, the COVID-19 pandemic creates significant economic uncertainty for the remainder of fiscal 2020.
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.
Past performance is not necessarily a predictor of future results.
Summary financial statements for the third quarter and twelve months are as follows:




RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
Three months ended June 30,Twelve months ended June 30,
 2020201920202019
Operating revenues$11,071,918  $11,682,950  $63,146,971  $68,145,798  
Operating expenses9,736,255  10,045,893  49,239,011  56,326,695  
Operating income1,335,663  1,637,057  13,907,960  11,819,103  
Equity in earnings of unconsolidated affiliate1,205,574  777,193  4,470,184  2,391,549  
Other income (expense), net52,556  (5,967) 638,345  393,190  
Interest expense986,203  925,698  4,093,103  3,267,271  
Income before income taxes1,607,590  1,482,585  14,923,386  11,336,571  
Income tax expense401,012  344,030  3,573,951  2,409,305  
Net income$1,206,578  $1,138,555  $11,349,435  $8,927,266  
Net earnings per share of common stock:
Basic$0.15  $0.14  $1.40  $1.11  
Diluted$0.15  $0.14  $1.40  $1.11  
Cash dividends per common share$0.175  $0.165  $0.690  $0.650  
Weighted average number of common shares outstanding:
Basic8,143,887  8,051,944  8,104,298  8,019,728  
Diluted8,159,324  8,088,270  8,129,737  8,063,073  
Condensed Consolidated Balance Sheets
(Unaudited)
 
 June 30,
Assets20202019
Current assets$12,545,512  $13,256,420  
Total utility plant, net194,049,965  177,816,330  
Other assets66,745,281  53,350,288  
Total Assets$273,340,758  $244,423,038  
Liabilities and Stockholders’ Equity
Current liabilities$15,070,172  $23,546,484  
Long-term debt, net116,346,967  90,470,806  
Deferred credits and other liabilities51,672,467  45,668,813  
Total Liabilities183,089,606  159,686,103  
Stockholders’ Equity90,251,152  84,736,935  
Total Liabilities and Stockholders’ Equity$273,340,758  $244,423,038