updated 5/4/2011 3:47:32 PM ET 2011-05-04T19:47:32

ROANOKE, Va., May 4, 2011 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq:RGCO) announced consolidated Company earnings of $2,519,814 or $1.10 per average share outstanding for the quarter ended March 31, 2011. This compares to consolidated earnings of $2,753,018 or $1.22 per average share outstanding for the quarter ended March 31, 2010. President, Chairman and CEO John Williamson attributed the decrease in earnings to a reduction in gross margin from lower space heating sales volumes as a result of a warmer winter season and modest increases in operating expense.

Earnings for the twelve months ending March 31, 2011 were $4,351,316 or $1.91 per share compared to $2.17 per share for the twelve months ended March 31, 2010. Williamson attributed the lower year-over-year earnings primarily to three percent warmer weather affecting heating season sales in the current period combined with the earnings effect in the earlier period of a one-time credit to depreciation expense associated with implementing updated plant depreciation rates in the September 30, 2009 quarter end.

RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company, Diversified Energy Company 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.

Summary financial statements for the second quarter and twelve months are as follows:

RGC Resources, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
         
  Three Months Ended Twelve Months Ended
  March 31, March 31,
  2011 2010 2011 2010
         
Revenues  $ 27,072,569  $ 31,640,321  $ 68,651,011  $ 74,232,007
Cost of sales  17,871,203  22,271,228  41,941,900  47,422,347
Gross margin  9,201,366  9,369,093  26,709,111  26,809,660
Other operating expenses, net  4,680,406  4,474,488  17,890,175  17,127,911
Interest expense  456,285  455,871  1,832,991  1,844,644
Income before income taxes  4,064,675  4,438,734  6,985,945  7,837,105
Income tax expense  1,544,861  1,685,716  2,634,629  2,977,649
         
Net income   $ 2,519,814  $ 2,753,018  $ 4,351,316  $ 4,859,456
         
Net earnings per share of common stock:        
Basic  $ 1.10  $ 1.22  $ 1.91  $ 2.17
Diluted  $ 1.10  $ 1.22  $ 1.91  $ 2.16
         
Cash dividends per common share  $ 0.340  $ 0.330  $ 1.340  $ 1.300
         
Weighted average number of common shares outstanding:        
Basic 2,292,015 2,251,922  2,276,545  2,239,383
Diluted 2,296,333 2,259,641  2,282,011  2,246,940
         
         
         
Condensed Consolidated Balance Sheets
(Unaudited)
         
    March 31,  
Assets   2011 2010  
Current assets    $ 38,460,809  $ 36,457,949  
Total property, plant and equipment, net    82,930,920  80,178,014  
Other assets    7,444,689  5,960,741  
         
Total Assets    $ 128,836,418  $ 122,596,704  
         
Liabilities and Stockholders' Equity        
Current liabilities    $ 35,170,572  $ 35,676,987  
Long-term debt    13,000,000  13,000,000  
Deferred credits and other liabilities    30,036,398  25,327,599  
Total Liabilities    78,206,970  74,004,586  
Stockholders' Equity    50,629,448  48,592,118  
         
Total Liabilities and Stockholders' Equity    $ 128,836,418  $ 122,596,704  
CONTACT: John B. Williamson, III
         President, Chairman and CEO
         Telephone: 540-777-3810

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