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Form 8-K RGC RESOURCES INC For: Aug 08

August 9, 2022 10:31 AM EDT

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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 8, 2022
 
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)
 
Registrants 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 Class
Trading
Symbol
Name of Each Exchange on Which Registered
Common Stock, $5 Par Value
RGCO
NASDAQ 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 2.02
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
 
On August 8, 2022, RGC Resources, Inc. issued a press release announcing the results for the third quarter ending June 30, 2022. A copy of this press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.
 
ITEM 8.01
OTHER EVENTS.
 
The press release attached hereto as Exhibit 99.1 is also incorporated into this Item 8.01 by reference and therefore deemed "filed" for purposes of the Securities Exchange Act of 1934, as amended.
 
ITEM 9.01.
FINANCIAL STATEMENT AND EXHIBITS.
 
 
99.1 
  104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

 
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 9, 2022
By:
/s/ Jason A. Field
 
 
 
Jason A. Field  
 
 
Vice President, Chief Financial Officer and Treasurer  
 
 

Exhibit 99.1

NEWS RELEASE

 

RGC RESOURCES, INC.

 

Release Date:

August 8, 2022

Contact:

Jason A. Field
 

VP, CFO

Telephone:

540-777-3997

 

 

RGC RESOURCES, INC. REPORTS

THIRD QUARTER EARNINGS

 

 

ROANOKE, Va.  (August 8, 2022)--RGC Resources, Inc. (NASDAQ:  RGCO) announced consolidated Company earnings of $592,527 or $0.06 per share for the quarter ended June 30, 2022.  This compares to consolidated earnings of $610,840 or $0.07 per share for the quarter ended June 30, 2021.  CEO Paul Nester stated, “We continue to experience customer growth and improved utility margins associated with infrastructure replacement programs.  The overall earnings decline was primarily attributable to the lower non-cash MVP AFUDC income.”

 

Net loss for the twelve months ended June 30, 2022 was $20,316,892 or $2.32 per share.  Underlying net income, a non-GAAP measure that excludes the after-tax impairment recorded in the second quarter, for the twelve months ended June 30, 2022 was $9,255,083 or $1.06 per share compared to $9,772,285 or $1.19 per share for the twelve months ended June 30, 2021.  Nester attributed the underlying net income decline in trailing twelve-month net income to lower non-cash MVP AFUDC income, partially offset by stronger utility margins due to infrastructure replacement programs.

 

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.

 

Utility margins is a non-GAAP measure defined as utility revenues less cost of gas.  Underlying net income removes the effect of the after-tax impairment charge from the results of operations to enhance the comparability of financial results between periods.  Management considers these non-GAAP measures to provide useful information to both management and investors for purpose of such comparability and in evaluating operating performance, but they should be considered in addition to results prepared in accordance with GAAP and should not be considered a substitute for, or superior to, GAAP results.

 

Net income and underlying net income for the three months ended June 30, 2022 is not indicative of the results to be expected for the fiscal year ending September 30, 2022 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.

 

The statements in this release that are not historical facts constitute “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties.  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 any expectations expressed in the Company’s forward-looking statements, regarding customer growth, infrastructure investment and margins.  These risks and uncertainties include gas prices and supply, geopolitical considerations and regulatory and legal challenges and those set forth in the Company’s Form 10-Q for the quarter ended June 30, 2022 and Item 1-A in the Company’s fiscal 2021 10-K.  Forward-looking statements reflect the Company’s current expectations only as of the date they are made.  The Company assumes no duty to update these statements should expectations change or actual results differ from current expectations except as required by applicable laws and regulations.

 

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,

 
     

2022

   

2021

   

2022

   

2021

 
                                   

Operating revenues

    $ 17,259,899     $ 14,048,846     $ 83,407,916     $ 71,599,814  

Operating expenses

      15,619,727       12,506,513       68,390,770       58,275,744  

Operating income

      1,640,172       1,542,333       15,017,146       13,324,070  

Equity in earnings of unconsolidated affiliate

      235       133,864       252,721       2,813,371  

Impairment of unconsolidated affiliates

                  (39,822,213 )      

Other income, net

      221,141       130,186       1,052,476       855,965  

Interest expense

      1,102,214       1,000,238       4,334,968       4,017,308  

Income (loss) before income taxes

      759,334       806,145       (27,834,838 )     12,976,098  

Income tax expense (benefit)

      166,807       195,305       (7,517,946 )     3,203,813  
                                   

Net income (loss)

    $ 592,527     $ 610,840     $ (20,316,892 )   $ 9,772,285  
                                   

Net earnings (loss) per share of common stock:

                                 

Basic

    $ 0.06     $ 0.07     $ (2.32 )   $ 1.19  

Diluted

    $ 0.06     $ 0.07     $ (2.32 )   $ 1.19  
                                   

Cash dividends per common share

    $ 0.195     $ 0.185     $ 0.770     $ 0.730  
                                   
                                   

Reconciliation of GAAP net income to underlying net income:

                                 

Net income (loss) as reported

    $ 592,527     $ 610,840     $ (20,316,892 )   $ 9,772,285  

Impairment - net of income tax

      -       -       29,571,975       -  

Underlying net income

    $ 592,527     $ 610,840     $ 9,255,083     $ 9,772,285  
                                   

Underlying earnings per share: basic and diluted

    $ 0.06     $ 0.07     $ 1.06     $ 1.19  
                                   
                                   

Weighted average number of common shares outstanding:

                                 

Basic

      9,798,700       8,260,579       8,756,025       8,200,295  

Diluted

      9,804,289       8,273,203       8,756,025       8,213,716  


Condensed Consolidated Balance Sheets

(Unaudited)

 

   

June 30,

 

Assets

 

2022

   

2021

 

Current assets

  $ 35,589,886     $ 14,862,881  

Utility plant, net

    224,145,150       207,993,519  

Other assets

    39,008,457       74,005,332  
                 

Total Assets

  $ 298,743,493     $ 296,861,732  
                 

Liabilities and Stockholders’ Equity

               

Current liabilities

  $ 21,063,473     $ 21,605,817  

Long-term debt, net

    130,265,070       123,151,387  

Deferred credits and other liabilities

    41,832,326       53,265,790  

Total Liabilities

    193,160,869       198,022,994  

Stockholders’ Equity

    105,582,624       98,838,738  
                 

Total Liabilities and Stockholders’ Equity

  $ 298,743,493     $ 296,861,732  

 

 


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