Middlesex Water Company Reports Second Quarter 2018 Financial Results
August 02 2018 - 3:12PM
Middlesex Water Company (the “Company” or “Middlesex”),
(Nasdaq:MSEX), a provider of water and wastewater and related
services primarily in New Jersey and Delaware, today reported
financial results for the quarter ended June 30, 2018.
Second Quarter Operating Results
Consolidated net income for the second quarter 2018 increased
$3.3 million as compared to the same period in 2017. Basic
and diluted earnings per share for the quarter ended June 30, 2018
were $0.53 and $0.52, respectively, up from $0.33 for basic and
diluted earnings per share for the same period in 2017.
Operating revenues for the quarter increased by $1.9 million to
$34.9 million. $1.6 million of the increase is due to the New
Jersey Board of Public Utilities (NJBPU) approved base rate
increase which took effect April 1, 2018. Customer growth in
our Delaware regulated water utility, Tidewater Utilities, Inc.
(“Tidewater”) also contributed to our higher revenues.
Operation and maintenance expenses for the second quarter were
$16.8 million, slightly below the same period in 2017.
Income Tax expense for the second quarter decreased $2.2 million
from the same period in 2017 due to the combined effect of
NJBPU-approved accounting treatment of the Company’s required
adoption of Internal Revenue Service (IRS) tangible property
regulations, effective April 1, 2018, and a lower effective tax
rate resulting from the Tax Cuts and Jobs Act of 2017. The impact
of both tax items is fully reflected in the $5.5 million increase
in annual operating revenues approved by the NJBPU effective April
1st.
Middlesex Chairman, President and Chief Executive Officer Dennis
W. Doll said, “Meeting our customer’s needs for a high quality,
reliable, resilient and sustainable water supply is our paramount
objective. We are appreciative of the timely decision from
our New Jersey regulators for rate relief and remain focused on
executing the many strategic components of our Water for Tomorrow
capital program designed to fortify drinking water infrastructure
for current and future generations of water customers,” said
Doll.
Six Month Operating Results
Consolidated operating revenues for the six months ended June
30, 2018 were $66.1 million, an increase of $3.0 million from the
same period in 2017, primarily due to the NJBPU-approved base rate
increase, higher commercial and industrial water usage in the
Middlesex System and increased revenues in our Tidewater system due
to customer growth. For the six months ended June 30, 2018,
basic and diluted earnings per share were each $0.80, as compared
to $0.60 and $0.59 respectively for the same period in
2017.
Operation and maintenance expenses for the six months ended June
30, 2018 were higher by $1.9 million compared to the same period in
2017 as winter weather in 2018 drove expenses up for water main
breaks, water treatment and water purchased from third parties.
Income Tax expense for the six months ended June 30, 2018
decreased $3.4 million from the same period in 2017, due to the
NJBPU-approved accounting treatment of the Company’s adoption of
IRS tangible property regulations, as well as a lower effective tax
rate resulting from the Tax Cuts and Jobs Act of 2017.
Quarterly Dividend Declared The Company’s Board
of Directors declared a quarterly cash dividend of $0.22375 per
share, payable September 4, 2018 to common shareholders as of
August 15, 2018. Middlesex has paid cash dividends
continually since 1912 and has increased its annual dividend rate
for 45 consecutive years. Information about Middlesex’s
Direct Share Purchase and Sale and Dividend Reinvestment Plan can
be found on our website.
About Middlesex Water CompanyMiddlesex Water
Company, organized in 1897, is an investor-owned water and
wastewater utility, serving customers in central and southern New
Jersey, Delaware and Pennsylvania. For additional information
regarding Middlesex Water Company or its Direct Share Purchase and
Sale and Dividend Reinvestment Plan, visit
http://investors.middlesexwater.com or call (732)
638-7549.
This release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, our long-term strategy and
expectations, the status of our acquisition program, the impact of
our acquisitions, the impact of current and projected rate requests
and the impact of our capital program on our environmental
compliance. There are important factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements including: general economic
business conditions, unfavorable weather conditions, the success of
certain cost containment initiatives, changes in regulations or
regulatory treatment, availability and the cost of capital, the
success of growth initiatives and other factors discussed in our
filings with the Securities and Exchange Commission.
Contact: Bernadette Sohler, Vice
President – Corporate AffairsMiddlesex Water Company, 1500
Ronson RoadIselin, New Jersey 08830(732) 638-7549
www.middlesexwater.com
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MIDDLESEX WATER
COMPANY |
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CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
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(Unaudited) |
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(In thousands except per share
amounts) |
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Three Months Ended June
30, |
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Six Months Ended June
30, |
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2018 |
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2017 |
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2018 |
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2017 |
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Operating Revenues |
$ |
34,919 |
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$ |
33,014 |
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$ |
66,096 |
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$ |
63,145 |
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Operating Expenses: |
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Operations and Maintenance |
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16,825 |
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16,856 |
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34,659 |
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32,795 |
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Depreciation |
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3,736 |
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3,385 |
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7,345 |
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6,693 |
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Other Taxes |
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3,637 |
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3,415 |
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7,021 |
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6,724 |
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Total Operating Expenses |
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24,198 |
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23,656 |
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49,025 |
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46,212 |
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Operating Income |
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10,721 |
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9,358 |
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17,071 |
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16,933 |
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Other Income (Expense): |
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Allowance for Funds Used During Construction |
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214 |
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180 |
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381 |
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299 |
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Other Income (Expense), net |
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571 |
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230 |
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868 |
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436 |
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Total Other Income, net |
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785 |
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410 |
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1,249 |
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735 |
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Interest Charges |
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2,068 |
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1,469 |
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3,206 |
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2,472 |
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Income before Income Taxes |
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9,438 |
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8,299 |
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15,114 |
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15,196 |
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Income Taxes |
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763 |
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2,918 |
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1,945 |
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5,374 |
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Net Income |
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8,675 |
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5,381 |
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13,169 |
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9,822 |
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Preferred Stock Dividend Requirements |
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36 |
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36 |
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72 |
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72 |
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Earnings Applicable to Common Stock |
$ |
8,639 |
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$ |
5,345 |
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$ |
13,097 |
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$ |
9,750 |
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Earnings per share of Common Stock: |
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Basic |
$ |
0.53 |
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$ |
0.33 |
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$ |
0.80 |
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$ |
0.60 |
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Diluted |
$ |
0.52 |
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$ |
0.33 |
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$ |
0.80 |
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$ |
0.59 |
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Average Number of |
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Common Shares Outstanding : |
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Basic |
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16,388 |
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16,332 |
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16,371 |
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16,316 |
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Diluted |
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16,544 |
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16,488 |
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16,527 |
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16,472 |
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Cash Dividends Paid per Common Share |
$ |
0.2238 |
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$ |
0.2113 |
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$ |
0.4475 |
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$ |
0.4225 |
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