RGC Resources, Inc. (RGCO) has reported a 3.66 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $3.23 million, or $0.45 a share in the quarter, compared with $3.11 million, or $0.44 a share for the same period last year.

Revenue during the quarter went up marginally by 0.56 percent to $21.90 million from $21.78 million in the previous year period. Gross margin for the quarter expanded 55 basis points over the previous year period to 49.45 percent. Total expenses were 74.53 percent of quarterly revenues, down from 75.13 percent for the same period last year. This has led to an improvement of 60 basis points in operating margin to 25.47 percent.

Operating income for the quarter was $5.58 million, compared with $5.42 million in the previous year period.

Chief executive officer John D'Orazio attributed the increase to improved utility margins associated with the company's infrastructure replacement programs, customer growth and the investment in the Mountain Valley Pipeline (MVP). D'Orazio attributed the 15% increase in trailing twelve month earnings primarily to improved utility margins associated with the Company's infrastructure replacement programs, customer growth and the investment in the MVP."

Days sales outstanding went down to 16 days for the quarter compared with 34 days for the same period last year.