RGC Resources Inc. Reports Operating Results (10-K)

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Dec 17, 2010
RGC Resources Inc. (RGCO, Financial) filed Annual Report for the period ended 2010-09-30.

Rgc Resources Inc. has a market cap of $72 million; its shares were traded at around $31.75 with a P/E ratio of 16.1 and P/S ratio of 1. The dividend yield of Rgc Resources Inc. stocks is 4.1%. Rgc Resources Inc. had an annual average earning growth of 5.1% over the past 5 years.RGCO is in the portfolios of Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Roanoke Gas maintains an integrated natural gas distribution system. Natural gas is purchased from suppliers and distributed to residential, commercial and large industrial users through underground mains and service lines. For fiscal 2010, 91.1% of the Companys 56,975 natural gas customers were residential users accounting for 42% of total sales volumes and 59% of gross revenue, 8.8% were commercial users accounting for 29% of total sales volumes and 35% of gross revenues, and 0.1% were large industrial and transportation customers accounting for 29% of total sales volumes and only 4% of gross revenues. Transportation customers are those natural gas users that purchase their natural gas requirements directly from a supplier other than the Company and utilize Roanoke Gas natural gas distribution system for delivery to their operations.

Pursuant to the RGC Resources Restricted Stock Plan for Outside Directors (the Restricted Stock Plan), 40% of the monthly retainer fee of each non-employee director of the Company is paid in shares of unregistered common stock and is subject to vesting and transferability restrictions (restricted stock). A participant can, subject to approval of Directors of the Company (the Board), elect to receive up to 100% of his retainer fee in restricted stock. The number of shares of restricted stock is calculated each month based on the closing sales price of the Companys common stock on the NASDAQ Global Market on the first day of the month. The shares of restricted stock are issued in reliance on Section 3(a)(11) and Section 4(2) exemptions under the Securities Act of 1933 and will vest only in the case of the participants death, disability, retirement or in the event of a change in control of the Company. Shares of restricted stock will be forfeited to the Company upon (i) the participants voluntary resignation during his term on the Board or (ii) removal for cause. During the quarter ended September 30, 2010, the Company issued a total of 673 shares of restricted stock pursuant to the Restricted Stock Plan as follows:

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