ROANOKE, Va. (May 5, 2023)–RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $6,341,886, or $0.64 per share, for the quarter ended March 31, 2023, compared to a net loss of $24,494,429, or $2.89 per share, for the quarter ended March 31, 2022. Underlying earnings of $6,341,886, a non-GAAP measure that excludes the after-tax impairments recorded in fiscal 2022, for the current fiscal quarter represents a 25% increase over the prior year second fiscal quarter underlying earnings of $5,077,546. CEO Paul Nester stated, “We experienced strong underlying earnings growth from improved utility margins associated with customer growth and implementation of the new non-gas rates.”
Net loss for the twelve months ended March 31, 2023 was $1,224,411, or $0.12 per share. Underlying net income for the twelve months ended March 31, 2023 was $10,115,158, or $1.03 per share, compared to $9,273,396, or $1.11 per share, for the twelve months ended March 31, 2022. Nester attributed the underlying net income increase to improved utility margins associated with infrastructure replacement programs, customer growth and the implementation of the new non-gas rates. The underlying earnings per share change is due to the impact of the March 2022 equity offering on the weighted average shares outstanding.
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 for the three months ended March 31, 2023 is not indicative of the results to be expected for the fiscal year ending September 30, 2023 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 Item 1-A of the Company’s fiscal 2022 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 second quarter and twelve months are as follows: Second Quarter Financial Statements ending 3/31/2023