RGC Resources, Inc (RGCO) has reported a 307.11 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.15 million, or $0.03 a share in the quarter, compared with $0.04 million, or $0.01 a share for the same period last year.
Revenue during the quarter went up marginally by 2.54 percent to $9.98 million from $9.73 million in the previous year period. Gross margin for the quarter expanded 320 basis points over the previous year period to 58.77 percent. Total expenses were 93.09 percent of quarterly revenues, down from 95.26 percent for the same period last year. This has led to an improvement of 217 basis points in operating margin to 6.91 percent.
Operating income for the quarter was $0.69 million, compared with $0.46 million in the previous year period.
chief executive officer John D'Orazio stated, "The increase in earnings is attributable to improved utility margins associated with our infrastructure replacement programs and customer growth, and our investment in the Mountain Valley Pipeline (MVP)." D'Orazio further commented, "The Company will continue to invest over the next 4-5 years in infrastructure replacement programs to enhance the safety and reliability of our gas distribution system for our utility subsidiary, Roanoke Gas Company. Our investment in the MVP will also continue. If approved, the MVP is scheduled to be in-service at the end of 2018.
Debt moves up
RGC Resources, Inc has witnessed an increase in total debt over the last one year. It stood at $33.64 million as on Sep. 30, 2016, up 10.95 percent or $3.32 million from $30.32 million on Sep. 30, 2015. RGC RESOURCES has witnessed an increase in long-term debt over the last one year. It stood at $33.64 million as on Sep. 30, 2016, up 10.95 percent or $3.32 million from $30.32 million on Sep. 30, 2015. Interest coverage ratio improved to 1.66 for the quarter from 1.24 for the same period last year.
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