# EDGAR Filing Document

**Accession Number:** 0001069533
**File Stem:** 0001437749-23-002803
**Filing Date:** 2023-2
**Character Count:** 11105
**Document Hash:** d0699a7511979a366a41a763b93f1d6d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-002803.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001437749-23-002803

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230208

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**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:** 23600037

**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

rgco20221209_8k.htm

**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): **February 8, 2023**

## RGC RESOURCES, INC.
**(Exact name of Registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **Virginia** | **000-26591** | **54-1909697** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

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| | |
|:---|:---|
| **519 Kimball Ave., N.E. Roanoke**, **Virginia** | **24016** |
| **(Address of principal executive offices)** | **(Zip Code)** |

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**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:

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| | | |
|:---|:---|:---|
| **<u>Title of Each Class</u>** | **<u>Trading</u>** <br> **<u>Symbol</u>** | **<u>Name of Each Exchange on Which Registered</u>** |
| **Common Stock**, $5 Par Value** | **RGCO** | **NASDAQ** Global Market** |

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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 ☐<br>

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.

☐

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| | |
|:---|:---|
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |

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On February 8, 2023, RGC Resources, Inc. issued a press release announcing the results for the first quarter ending December 31, 2022. A copy of this press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference.

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| | |
|:---|:---|
| ITEM 8.01 | OTHER EVENTS. |

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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.

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| | |
|:---|:---|
| ITEM 9.01 | FINANCIAL STATEMENT AND EXHIBITS. |

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| | |
|:---|:---|
| 99.1  | [First Quarter Earnings Press Release dated February 8, 2023.](ex_455013.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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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.

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| | | |
|:---|:---|:---|
|  | RGC RESOURCES, INC. | RGC RESOURCES, INC. |
| Date: February 8, 2023 | By: | /s/ Jason A. Field |
|  |  | Jason A. Field |
|  |  | Vice President, Chief Financial Officer and Treasurer |

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## Exhibit 99.1

**Exhibit 99.1**

**NEWS RELEASE**

RGC RESOURCES, INC.

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| | |
|:---|:---|
| Release Date: | February 8, 2023 |
| Contact: | Jason A. Field |
|  | VP, CFO |
| Telephone: | 540-777-3997 |

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**RGC RESOURCES, INC. REPORTS**

**FIRST QUARTER EARNINGS**

**ROANOKE, Va. (February 8, 2023)--**RGC Resources, Inc. (NASDAQ: RGCO) announced consolidated Company earnings of $3,256,405, or $0.33, per share for the quarter ended December 31, 2022. This compares to consolidated earnings of $3,584,529, or $0.43 per share, for the quarter ended December 31, 2021. CEO Paul Nester stated, "The Roanoke Gas utility experienced strong customer demand and improved utility margins. The overall earnings decline was primarily attributable to increased operational costs resulting from the inflationary environment and interest expense attributable to higher interest rates on floating rate debt."

Net loss for the twelve months ended December 31, 2022 was $32,060,726, or $3.38 per share. Underlying net income, a non-GAAP measure that excludes the after-tax impairment recorded in the second and fourth quarters of fiscal 2022, for the twelve months ended December 31, 2022 was $8,850,818, or $0.93 per share, compared to $8,963,328, or $1.08 per share, for the twelve months ended December 31, 2021. Nester attributed the slight overall earnings decline to inflationary pressures and rising interest rates. The EPS change also reflects the increase in shares outstanding from the prior year.

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 December 31, 2022 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 first quarter and twelve months are as follows:

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**RGC Resources, Inc. and Subsidiaries**

Condensed Consolidated Statements of Income

(Unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended<br> December 31, | Three Months Ended<br> December 31, | Twelve Months Ended<br> December 31, | Twelve Months Ended<br> December 31, |
|  | 2022 | 2021 | 2022 | 2021 |
| Operating revenues | $33282335 | $23263080 | $94184477 | $78920842 |
| Operating expenses | 27737850 | 17884657 | 79101740 | 64345497 |
| Operating income | 5544485 | 5378423 | 15082737 | 14575345 |
| Equity in earnings of unconsolidated affiliate | 1232 | 72127 | 2432 | 382998 |
| Impairment of unconsolidated affiliates |  |  | (55092303) |  |
| Other income, net | 74606 | 322439 | 1209150 | 904559 |
| Interest expense | 1369164 | 1104856 | 4762237 | 4136912 |
| Income (loss) before income taxes | 4251159 | 4668133 | (43560221) | 11725990 |
| Income tax expense (benefit) | 994754 | 1083604 | (11499495) | 2762662 |
| Net income (loss) | $3256405 | $3584529 | $(32060726) | $8963328 |
| Net earnings (loss) per share of common stock: |  |  |  |  |
| Basic | $0.33 | $0.43 | $(3.38) | $1.08 |
| Diluted | $0.33 | $0.43 | $(3.38) | $1.08 |
| Cash dividends per common share | $0.1975 | $0.1950 | $0.7825 | $0.7500 |
| **Reconciliation of GAAP net income to underlying net income:** |  |  |  |  |
| Net income (loss) as reported | $3256405 | $3584529 | $(32060726) | $8963328 |
| Impairment - net of income tax |  |  | 40911544 |  |
| Underlying net income | $3256405 | $3584529 | $8850818 | $8963328 |
| Underlying earnings per share: basic and diluted | $0.33 | $0.43 | $0.93 | $1.08 |
| Weighted average number of common shares outstanding: |  |  |  |  |
| Basic | 9830206 | 8383986 | 9487205 | 8306294 |
| Diluted | 9837188 | 8393032 | 9487205 | 8318014 |

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<br> Condensed Consolidated Balance Sheets

(Unaudited)

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
| **Assets** | 2022 | 2021 |
| Current assets | $47845073 | $32449177 |
| Utility property, net | 234849715 | 215350467 |
| Other non-current assets | 25257374 | 75431248 |
| Total Assets | $307952162 | $323230892 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities | $60164437 | $44758986 |
| Long-term debt, net | 113288995 | 124809694 |
| Deferred credits and other non-current liabilities | 39608723 | 51367367 |
| Total Liabilities | 213062155 | 220936047 |
| Stockholders' Equity | 94890007 | 102294845 |
| Total Liabilities and Stockholders' Equity | $307952162 | $323230892 |

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