SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1996
Commission File No. 0-367
ROANOKE GAS COMPANY
_________________________________________________________________
(Exact Name of Registrant as Specified in its Charter)
VIRGINIA 54-0359895
_________________________________________________________________
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification
No.)
519 Kimball Ave., N.E., Roanoke, VA 24016
_________________________________________________________________
(Address of Principal Executive Offices) (Zip Code)
(540) 983-3800
________________________________________________________________
(Registrant's Telephone Number, Including Area Code)
None
________________________________________________________________
(Former Name, Former Address and Former Fiscal Year, if
Changed Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
Class Outstanding at June 30, 1996
__________________________ ______________________________
Common Stock, $5 Par Value 1,465,159 Shares
<PAGE>
<TABLE>
<CAPTION>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 1996 AND SEPTEMBER 30, 1995
- -------------------------------------
UNAUDITED
- ---------
June 30, September 30,
1996 1995
-------- -------------
ASSETS
- ------
<S> <C> <C>
UTILITY PLANT:
In service $58,829,617 $56,834,174
Accumulated depreciation 20,774,431 19,262,416
---------- ----------
In service, net 38,055,186 37,571,758
Construction work-in-progress 1,323,744 535,107
---------- ----------
Utility plant, net 39,378,930 38,106,865
---------- ----------
NONUTILITY PROPERTY:
Propane 4,195,329 3,781,633
Accumulated depreciation 1,996,778 1,742,342
---------- ----------
Nonutility property, net 2,198,551 2,039,291
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents 581,118 502,895
Accounts receivable - (less allowance
for doubtful accounts of $811,072
and $171,947, respectively) 5,463,631 3,463,104
Inventories 4,981,693 5,347,994
Deferred income taxes 791,034 967,732
Purchased gas adjustments 536,433 -
Other 350,541 181,190
---------- ----------
Total current assets 12,704,450 10,462,915
---------- ----------
OTHER ASSETS 898,808 1,005,596
---------- ----------
TOTAL $55,180,739 $51,614,667
========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 1996 AND SEPTEMBER 30, 1995
- --------------------------------------
UNAUDITED
- ---------
June 30, September 30,
1996 1995
-------- -------------
<S> <C> <C>
LIABILITIES
- -----------
CAPITALIZATION:
Stockholders' equity
Common stock, $5 par value.
Authorized, 3,000,000 shares;
issued and outstanding 1,465,159
and 1,432,512 shares, respectively $ 7,325,795 $ 7,162,560
Capital in excess of par value 4,530,392 4,149,584
Retained earnings 8,109,836 6,243,028
---------- ----------
Total stockholders' equity 19,966,023 17,555,172
Long-term debt, excluding current
maturities 10,943,102 17,504,047
---------- ----------
Total capitalization 30,909,125 35,059,219
---------- ----------
CURRENT LIABILITIES:
Current maturities of long-term
debt 7,081,274 1,179,415
Borrowings under lines of credit 5,115,000 1,442,000
Dividends payable 374,082 358,743
Accounts payable 4,022,478 5,544,647
Accrued income taxes 1,094,027 476,410
Customers' deposits 380,047 314,647
Accrued expenses 2,983,789 3,027,825
Refunds from suppliers - due
customers 57,831 682,851
Purchased gas adjustments - 236,999
---------- ----------
Total current liabilities 21,108,528 13,263,537
---------- ----------
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred income taxes 2,620,905 2,721,470
Deferred investment tax credits 542,181 570,441
---------- ----------
Total deferred credits and other
liabilities 3,163,086 3,291,911
---------- ----------
TOTAL $55,180,739 $51,614,667
========== ==========
</TABLE>
See condensed notes to condensed consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE-MONTH AND NINE-MONTH PERIODS
ENDED JUNE 30, 1996 AND 1995
- ----------------------------------------------------------------------------------------
UNAUDITED Three Months Ended Nine Months Ended
- --------- June 30, June 30,
------------------ -----------------
1996 1995 1996 1995
---- ---- ---- ----
<C> <S> <S> <S> <S>
OPERATING REVENUES:
Gas utilities $ 9,708,342 $8,446,759 $53,121,753 $38,156,835
Propane operations 726,689 548,445 4,932,427 3,903,722
---------- --------- ---------- ----------
Total operating revenues 10,435,031 8,995,204 58,054,180 42,060,557
---------- --------- ---------- ----------
COST OF GAS:
Gas utilities 6,192,485 5,159,327 36,593,707 23,830,539
Propane operations 392,431 273,402 2,564,208 1,842,360
---------- --------- ---------- ----------
Total cost of gas 6,584,916 5,432,729 39,157,915 25,672,899
---------- --------- ---------- ----------
OPERATING MARGIN 3,850,115 3,562,475 18,896,265 16,387,658
---------- --------- ---------- ----------
OTHER OPERATING EXPENSES:
Gas Utilities:
Other operations 1,987,394 1,923,210 6,125,400 6,101,136
Maintenance 500,440 260,799 1,387,946 953,825
Taxes - general 485,154 423,850 2,002,122 1,731,029
Taxes - income (153,375) (88,154) 1,382,632 895,727
Depreciation and amortization 585,885 529,183 1,755,309 1,582,635
Propane operations (including taxes -
income of ($79,231), ($69,387),
$216,201 and $213,756 respectively) 406,281 319,942 1,926,270 1,615,613
---------- --------- ---------- ----------
Total other operating expenses 3,811,779 3,368,830 14,579,679 12,879,965
---------- --------- ---------- ----------
OPERATING EARNINGS 38,336 193,645 4,316,586 3,507,693
---------- --------- ---------- ----------
<PAGE>
OTHER INCOME AND DEDUCTIONS:
Gas utilities:
Interest income 30 13,916 274 14,111
Merchandising and jobbing 14,252 15,993 75,900 116,299
Other deductions (19,729) (15,281) (69,279) (105,154)
Taxes - income 1,816 (5,285) (2,831) (8,464)
Propane operations, net 25,707 10,348 73,116 74,934
---------- --------- ---------- ----------
Total other income and deductions 22,076 19,691 77,180 91,726
---------- --------- ---------- ----------
EARNINGS BEFORE INTEREST
CHARGES 60,412 213,336 4,393,766 3,599,419
---------- --------- ---------- ----------
INTEREST CHARGES:
Gas utilities:
Long-term debt 401,799 424,817 1,227,581 1,256,261
Other interest 65,979 25,315 183,269 213,373
Propane operations, net 574 1,095 1,828 13,337
---------- --------- ---------- ----------
Total interest charges 468,352 451,227 1,412,678 1,482,971
---------- --------- ---------- ----------
NET EARNINGS (LOSS) ($407,940) ($237,891) $2,981,088 $2,116,448
========== ========= ========== ==========
EARNINGS (LOSS) PER COMMON SHARE ($0.28) ($0.17) $2.06 $1.51
========== ========= ========== ==========
CASH DIVIDENDS PER SHARE $0.255 $0.250 $0.765 $0.750
========== ========= ========== ==========
</TABLE>
See condensed notes to condensed consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH AND NINE-MONTH PERIODS
ENDED JUNE 30, 1996 AND 1995
- ------------------------------------------------------------------------------------------
UNAUDITED Three Months Ended Nine Months Ended
- --------- June 30, June 30,
------------------ -----------------
1996 1995 1996 1995
---- ---- ---- ----
<C> <S> <S> <S> <S>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) ($407,940) ($237,891) $2,981,088 $2,116,448
Adjustments to reconcile net earnings
(loss) to net cash provided by
operating activities:
Depreciation and amortization 712,046 633,661 2,131,137 1,895,905
(Gain) loss from disposal of property (954) 4,989 (366) 7,235
Changes in working capital, operating
assets and liabilities exclusive of
changes shown separately (1,259,903) 2,646,645 (3,930,558) 5,510,369
---------- --------- ---------- ----------
Net cash provided by (used in)
operating activities (956,751) 3,047,404 1,181,301 9,529,957
---------- --------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction expenditures (1,287,668) (759,847) (3,448,434) (4,672,733)
Other (87,490) (30,096) (137,205) (105,235)
Proceeds from disposal of equipment 12,643 2,398 23,545 50,896
---------- --------- ---------- ----------
Net cash used in investing activities (1,362,515) (787,545) (3,562,094) (4,727,072)
---------- --------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt - 1,000,000 - 2,700,000
Retirement of long-term debt (285,177) (281,727) (659,086) (652,798)
Net borrowings (payments) on line of credit
agreements 2,793,000 (2,165,000) 3,673,000 (5,235,000)
Cash dividends paid (371,478) (353,082) (1,098,942) (1,047,300)
Proceeds from issuance of stock 179,730 246,114 544,044 619,843
Capital stock expense - - - (4,450)
---------- --------- ---------- ----------
Net cash provided by (used in) financing
activities 2,316,075 (1,553,695) 2,459,016 (3,619,705)
---------- --------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (3,191) 706,164 78,223 1,183,180
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 584,309 654,285 502,895 177,269
---------- --------- ---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $581,118 $1,360,449 $581,118 $1,360,449
========== ========= ========== ==========
<PAGE>
SUPPLEMENTAL INFORMATION:
Interest paid $621,452 $204,654 $1,186,553 $1,207,730
Income taxes paid, net 88,721 187,500 $950,732 $540,250
NONCASH TRANSACTIONS:
A capital lease obligation was incurred
when the Company entered into an equipment
lease - - - $10,500
</TABLE>
See condensed notes to condensed consolidated financial statements.
<PAGE>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
CONDENSED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED
- ------------------------------------------------------------------------
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting of only
normal recurring accruals) necessary to present fairly Roanoke Gas Company's
consolidated financial position as of June 30, 1996 and September 30, 1995
and the results of operations and cash flows for the three and nine-month
periods ended June 30, 1996 and 1995.
The condensed consolidated financial statements and condensed notes are
presented as permitted by Form 10-Q and do not contain certain information
included in the Company's annual consolidated financial statements and notes.
2. Quarterly earnings are affected by the highly seasonal nature of the
business as variations in weather conditions generally result in greater
earnings during the winter months.
3. Earnings per share is based on the weighted average number of shares
outstanding during each period (1,461,416 and 1,417,737 for the three-month
periods ended June 30, 1996 and 1995 and 1,450,589 and 1,401,779 for the
nine-month periods ended June 30, 1996 and 1995, respectively).
4. Both Roanoke Gas Company and Bluefield Gas Company operated
manufactured gas plants (MGPs) as a source of fuel for lighting and heating
until the early 1950's. The process involved heating coal in a low-oxygen
environment to produce a manufactured gas that could be distributed through
the Company's pipeline system to customers. A by-product of the process was
coal tar, and the potential exists for on-site tar waste contaminants at both
former plant sites. The extent of contaminants at these sites, if any, is
unknown at this time, and the Company has not performed formal analysis at
the Roanoke Gas Company MGP site. An analysis at the Bluefield Gas Company
site indicates some soil contamination. The Company, with concurrence of
legal counsel, does not believe any events have occurred requiring regulatory
reporting. Further, the Company has not received any notices of violation or
liabilities associated with environmental regulations related to the MGP
sites and is not aware of any off-site contamination or pollution as a result
of these prior operations. Therefore, the Company has no plans for
subsurface remediation at either of the MGP sites. Should the Company be
required to remediate either of the MGP sites, the Company will pursue all
prudent and reasonable means to recover any related costs, including
insurance claims and regulatory approval for rate case recognition of
expenses associated with any work required. Based upon prior orders of the
State Corporation Commission of Virginia related to environmental matters at
other companies, the Company believes it will be able to recover prudently
incurred costs. Additionally, a stipulated rate case agreement between the
Company and the West Virginia Public Service Commission recognizes the
Company's right to defer MGP clean-up costs, should any be incurred, and to
seek rate relief for such costs. If the Company eventually incurs costs
associated with a required clean-up of either MGP site, the Company
anticipates recording a regulatory asset for such clean-up costs which are
anticipated to be recoverable in future rates. Based on anticipated
regulatory actions and current practices, management believes that any costs
incurred related to the previously-mentioned environmental matters will not
have a material effect on the Company's consolidated financial position.
<PAGE>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
CONDENSED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED
- ------------------------------------------------------------------------
5. Roanoke Gas Company and Commonwealth Public Service Corporation, a
subsidiary of Bluefield Gas Company, currently hold the only franchises
and/or certificates of public convenience and necessity to distribute natural
gas in their respective Virginia service areas. The franchises generally
extend for a period of twenty years and are renewable by the municipalities.
Certificates of public convenience and necessity, which are issued by the
Virginia State Corporation Commission, are of perpetual duration, subject to
compliance with regulatory standards. The franchise for the City of Roanoke,
the Company's largest service area, expired on August 30, 1993. On
August 23, 1993, the Board of Directors of the Company approved an agreement
with the City of Roanoke under which such franchise agreement was extended
for a term of 180 days from August 30, 1993, upon the same terms and
conditions, except that a provision of the existing franchise agreement
giving the City the option to purchase the property of the Company located
within the City was deleted. The 180-day extension period expired
February 26, 1994. The parties have reached a tentative agreement on a
20 year franchise term, subject to final approval by the City Council, which
provides for a modest increase in franchise fees. The Company continues to
provide natural gas services to customers in the City of Roanoke. The
Company believes that it ultimately will secure a new franchise agreement on
terms acceptable to the Company. In addition, the franchise for the City of
Salem expired on July 22, 1994, and the franchise for the Town of Vinton
expired on December 10, 1994. The Company and the City of Salem and the Town
of Vinton have reached a tentative agreement on a 20 year franchise term,
subject to final approval by the Councils of the City and Town, which
provides for a modest increase in franchise fees. The Company continues to
provide natural gas services to customers in the City of Salem and the Town
of Vinton. The Company also believes that it will ultimately secure new
franchise agreements with the City of Salem and the Town of Vinton on terms
acceptable to the Company. Bluefield Gas Company holds the only franchise to
distribute natural gas in its West Virginia service area. Its franchise
extends for a period of thirty years from August 23, 1979.
Management anticipates that the Company will be able to renew all of
its franchises. There can be no assurance, however, that a given
jurisdiction will not refuse to renew a franchise or will not in connection
with the renewal of a franchise, impose certain restrictions or conditions
that could adversely affect the Company's business operations or financial
condition.
<PAGE>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- ---------------------------------------------
Consolidated net earnings (loss) for the three-month and nine-month
periods ended June 30, 1996 were $(407,940) and $2,981,088 compared to
$(237,891) and $2,116,448 for the same periods last year.
Operating margin increased $287,640, or 8.1 percent in the current
quarter from last year due to an increase in delivered gas volumes. Total
MCF deliveries rose 7.8 percent, or 131,260 MCF. Firm volumes increased by
154,715 while interruptible volumes declined 23,455 MCF. The firm volume
increase derives from a greater customer base and 13 percent more heating
degree days during the quarter. Propane operations contributed to the
increase in operating margin as propane margin rose $59,215, or 21.5 percent
on an increase of 190,333 gallons delivered or 30.5 percent over the same
quarter last year.
Other operations expenses for the quarter increased slightly over last
year. The increase is due to expenditure levels returning to a normal level
following the austerity plan to eliminate unessential expenses implemented
last year due to the warmer winter season. The increase was mitigated by the
recording of $126,000 in early retirement costs in last year's quarterly
expenses. Maintenance expense increased $239,641 due to certain planned
maintenance programs and a return to a normal maintenance schedule following
last year's reductions. General taxes increased as a result of an increase
in revenue sensitive taxes associated with greater operating revenues from
greater billed volumes and higher gas costs. Depreciation has increased as
capital plant has grown. Propane operations expense increased due to higher
delivery costs associated with greater propane volumes delivered,
significantly higher tank setting costs attributable to greater customer
growth and additional advertising and sales expenses associated with
expanding the propane service territory. Interest charges are up slightly
due to short-term borrowing activity required for replacing storage gas and
supporting capital investment.
For the nine-month period ended June 30, 1996, operating margins
increased $2,508,607, or 15.3 percent due to the 13.9 percent rise in total
natural gas volumes delivered and a 25.7 percent increase in propane gallons
delivered. The volume increases were directly attributable to a 27 percent
increase in heating degree days over the same period last year. Expenses for
the nine-month period ended June 30, 1996 in relation to the same period last
year are comparable to the results for the current quarter compared to last
year.
Both Roanoke Gas Company and Bluefield Gas Company operated
manufactured gas plants (MGPs) as a source of fuel for lighting and heating
until the early 1950's. The process involved heating coal in a low-oxygen
environment to produce a manufactured gas that could be distributed through
the Company's pipeline system to customers. A by-product of the process was
coal tar, and the potential exists for on-site tar waste contaminants at both
former plant sites. The extent of contaminants at these sites, if any, is
unknown at this time, and the Company has not performed formal analysis at
the Roanoke Gas Company MGP site. An analysis at the Bluefield Gas Company
<PAGE>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- ---------------------------------------------
site indicates some soil contamination. The Company, with concurrence of
legal counsel, does not believe any events have occurred requiring regulatory
reporting. Further, the Company has not received any notices of violation or
liabilities associated with environmental regulations related to the MGP
sites and is not aware of any off-site contamination or pollution as a result
of these prior operations. Therefore, the Company has no plans for
subsurface remediation at either of the MGP sites. Should the Company be
required to remediate either of the MGP sites, the Company will pursue all
prudent and reasonable means to recover any related costs, including
insurance claims and regulatory approval for rate case recognition of
expenses associated with any work required. Based upon prior orders of the
State Corporation Commission of Virginia related to environmental matters at
other companies, the Company believes it will be able to recover prudently
incurred costs. Additionally, a stipulated rate case agreement between the
Company and the West Virginia Public Service Commission recognizes the
Company's right to defer MGP clean-up costs, should any be incurred, and to
seek rate relief for such costs. If the Company eventually incurs costs
associated with a required clean-up of either MGP site, the Company
anticipates recording a regulatory asset for such clean-up costs which are
anticipated to be recoverable in future rates. Based on anticipated
regulatory actions and current practices, management believes that any costs
incurred related to the previously-mentioned environmental matters will not
have a material effect on the Company's consolidated financial position.
Roanoke Gas Company and Commonwealth Public Service Corporation, a
subsidiary of Bluefield Gas Company, currently hold the only franchises
and/or certificates of public convenience and necessity to distribute natural
gas in their respective Virginia service areas. The franchises generally
extend for a period of twenty years and are renewable by the municipalities.
Certificates of public convenience and necessity, which are issued by the
Virginia State Corporation Commission, are of perpetual duration, subject to
compliance with regulatory standards. The franchise for the City of Roanoke,
the Company's largest service area, expired on August 30, 1993. On
August 23, 1993, the Board of Directors of the Company approved an agreement
with the City of Roanoke under which such franchise agreement was extended
for a term of 180 days from August 30, 1993, upon the same terms and
conditions, except that a provision of the existing franchise agreement
giving the City the option to purchase the property of the Company located
within the City was deleted. The 180-day extension period expired
February 26, 1994. The parties have reached a tentative agreement on a 20
year franchise term, subject to final approval by City Council, which
provides for a modes increase in franchise fees. The Company continues to
provide natural gas services to customers in the City of Roanoke. The
Company believes that it ultimately will secure a new franchise agreement on
terms acceptable to the Company. In addition, the franchise for the City of
Salem expired on July 22, 1994, and the franchise for the Town of Vinton
expired on December 10, 1994. The Company and the City of Salem and the Town
of Vinton have reached a tentative agreement on a 20 year franchise term,
subject to final approval by the Councils of the City and Town, which
provides for a modest increase in franchise fees. The Company continues to
provide natural gas services to customers in the City of Salem and the Town
<PAGE>
ROANOKE GAS COMPANY AND SUBSIDIARIES
- ------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- ---------------------------------------------
of Vinton. The Company also believes that it will ultimately secure new
franchise agreements with the City of Salem and the Town of Vinton on terms
acceptable to the Company. Bluefield Gas Company holds the only franchise to
distribute natural gas in its West Virginia service area. Its franchise
extends for a period of thirty years from August 23, 1979.
Management anticipates that the Company will be able to renew all of
its franchises. There can be no assurance, however, that a given
jurisdiction will not refuse to renew a franchise or will not in connection
with the renewal of a franchise, impose certain restrictions or conditions
that could adversely affect the Company's business operations or financial
condition.
The three-month and nine-month periods' earnings presented herein
should not be considered as reflective of the Company's consolidated
financial results for the fiscal year ending September 30, 1996. The total
revenues during the first nine months reflect higher billings due to the
weather sensitive nature of the gas business. As warmer weather dominates
the remaining three months of the Company's fiscal year, a net operating loss
is normally expected for the final quarter which will reduce the Company's
net earnings for the fiscal year.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
--------
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K.
-------------------
There was one Form 8-K filed for the three month period
ended June 30, 1996. The Form 8-K, dated April 9, 1996,
updated the description of Company's common stock contained
in its Form 10 dated April 26, 1965.
<PAGE>
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 thereunto duly authorized.
ROANOKE GAS COMPANY
Date: July 22, 1996 By: /s/Roger L. Baumgardner
_______________________
Roger L. Baumgardner
Vice President/Secretary,
Treasurer and Principal
Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ROANOKE GAS
COMPANY'S UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT FOR THE QUARTER
ENDED JUNE 30, 1996, AS SET FORTH IN THE COMPANY'S QUARTERLY REPORT ON FORM
10-Q, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 39,378,930
<OTHER-PROPERTY-AND-INVEST> 2,198,551
<TOTAL-CURRENT-ASSETS> 12,704,450
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 898,808
<TOTAL-ASSETS> 55,180,739
<COMMON> 7,325,795
<CAPITAL-SURPLUS-PAID-IN> 4,530,392
<RETAINED-EARNINGS> 8,109,836
<TOTAL-COMMON-STOCKHOLDERS-EQ> 19,966,023
0
0
<LONG-TERM-DEBT-NET> 10,943,102
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 7,081,274
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 17,190,340
<TOT-CAPITALIZATION-AND-LIAB> 55,180,739
<GROSS-OPERATING-REVENUE> 58,054,180
<INCOME-TAX-EXPENSE> 1,382,632
<OTHER-OPERATING-EXPENSES> 52,354,962
<TOTAL-OPERATING-EXPENSES> 53,737,594
<OPERATING-INCOME-LOSS> 4,316,586
<OTHER-INCOME-NET> 77,180
<INCOME-BEFORE-INTEREST-EXPEN> 4,393,766
<TOTAL-INTEREST-EXPENSE> 1,412,678
<NET-INCOME> 2,981,088
0
<EARNINGS-AVAILABLE-FOR-COMM> 2,981,088
<COMMON-STOCK-DIVIDENDS> 1,114,281
<TOTAL-INTEREST-ON-BONDS> 1,139,592
<CASH-FLOW-OPERATIONS> 1,181,301
<EPS-PRIMARY> 2.06
<EPS-DILUTED> 2.06
</TABLE>
