false 0001069533 0001069533 2024-08-05 2024-08-05
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 5, 2024
 
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 230.425)
 
☐
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 13e-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 5, 2024, RGC Resources, Inc. issued a press release announcing the results for the third quarter ending June 30, 2024.  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 STATEMENTS 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 5, 2024
By:
/s/ Timothy J. Mulvaney
  
 
 
 Timothy J. Mulvaney  
 
 
 Vice President, Treasurer and Chief Financial Officer  
 
 

Exhibit 99.1

NEWS RELEASE

 

 

RGC RESOURCES, INC.

 

Release Date:

August 5, 2024

Contact:

 Timothy J. Mulvaney
  Vice President, Treasurer and CFO

Telephone:

(540) 777-3997

 

 

RGC RESOURCES, INC. REPORTS

THIRD QUARTER EARNINGS

 

 

ROANOKE, Va.  (August 5, 2024)--RGC Resources, Inc. (Nasdaq:  RGCO) announced consolidated Company earnings of $156,692, or $0.02 per share, for the third quarter ended June 30, 2024, compared to $686,816, or $0.07 per share, for the fiscal quarter ended June 30, 2023.  The decline was the result of decreased operating income due to higher personnel and professional costs as well as persistent inflationary pressures across most areas compared to a year ago, along with lower noncash earnings from the Company’s investment in the Mountain Valley Pipeline, LLC (“MVP”) as the pipeline transitioned from construction to gas transmission operations.

 

CEO Paul Nester stated, “We are excited that the MVP went into service in June.  This milestone benefits our customers immediately as it enhances system reliability and stability.  It empowers new local customers in the short term as we expect to provide gas to our first customer in Franklin County in the fiscal fourth quarter. And finally, we believe the pipeline fosters regional growth in the long term by providing a reliable, low-cost source of energy for years to come.”

 

As noted above and announced last quarter, Roanoke Gas is experiencing increasing costs and has filed for relief through a rate application with the State Corporation Commission.  The interim rates went into effect July 1, 2024, subject to refund.

 

Through the first nine months of fiscal 2024, the Company’s net income of $11,620,074, or $1.15 per share, was up 13% from $10,285,107, or $1.04 per share, in the first nine months of the prior year, primarily due to earnings from the Company’s 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.

 

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 inflation, customer growth, infrastructure investment and margins. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the MVP and the Company’s rate application along with risks included under Item 1-A in the Company’s fiscal 2023 Form 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 fiscal year to date are as follows:

 

 
 

 

RGC Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

 

   

Three Months Ended June 30,

    

Nine Months Ended June 30,

  
   

2024

    

2023

    

2024

    

2023

  
                                 

Operating revenues

   $ 14,458,202     $ 13,660,245     $ 71,536,930     $ 84,972,237  

Operating expenses

     12,900,609       11,861,780       54,697,591       68,037,865  

Operating income

     1,557,593       1,798,465       16,839,339       16,934,372  

Equity in earnings of unconsolidated affiliate

     282,604       519,482       2,979,823       523,581  

Other income (expense), net

     (69,349 )     6,725       140,924       203,155  

Interest expense

     1,567,093       1,423,566       4,769,979       4,188,592  

Income before income taxes

     203,755       901,106       15,190,107       13,472,516  

Income tax expense

     47,063       214,290       3,570,033       3,187,409  
                                 

Net income

   $ 156,692     $ 686,816     $ 11,620,074     $ 10,285,107  
                                 

Net earnings per share of common stock:

                                

Basic

   $ 0.02     $ 0.07     $ 1.15     $ 1.04  

Diluted

   $ 0.02     $ 0.07     $ 1.15     $ 1.04  
                                 

Cash dividends per common share

   $ 0.2000     $ 0.1975     $ 0.6000     $ 0.5925  
                                 

Weighted average number of common shares outstanding:

                                

Basic

     10,188,592       9,939,843       10,129,111       9,893,454  

Diluted

     10,192,797       9,942,871       10,132,347       9,899,221  


Condensed Consolidated Balance Sheets

(Unaudited)

 

   

June 30,

  

Assets

  

2024

    

2023

  

Current assets

   $ 25,408,031     $ 25,754,930  

Utility property, net

     257,936,755       243,087,547  

Other non-current assets

     30,809,374       25,923,607  
                 

Total Assets

   $ 314,154,160     $ 294,766,084  
                 

Liabilities and Stockholders’ Equity

                

Current liabilities

   $ 23,782,556     $ 27,252,815  

Long-term debt, net

     136,311,348       126,252,586  

Deferred credits and other non-current liabilities

     45,292,464       40,312,870  

Total Liabilities

     205,386,368       193,818,271  

Stockholders’ Equity

     108,767,792       100,947,813  
                 

Total Liabilities and Stockholders’ Equity

   $ 314,154,160     $ 294,766,084  

 

 
v3.24.2.u1
Document And Entity Information
Aug. 05, 2024
Document Information [Line Items]  
Entity, Registrant Name RGC RESOURCES, INC.
Document, Type 8-K
Document, Period End Date Aug. 05, 2024
Entity, Incorporation, State or Country Code VA
Entity, File Number 000-26591
Entity, Tax Identification Number 54-1909697
Entity, Address, Address Line One 519 Kimball Ave.
Entity, Address, City or Town Roanoke
Entity, Address, State or Province VA
Entity, Address, Postal Zip Code 24016
City Area Code 540
Local Phone Number 777-4427
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $5 Par Value
Trading Symbol RGCO
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0001069533
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