Middlesex Water Company Reports First Quarter 2018 Financial Results
May 07 2018 - 4:22PM
Middlesex Water Company (“Middlesex” or the “Company”)
(NASDAQ:MSEX) today reported financial results for the first
quarter ended March 31, 2018.
First Quarter 2018 Operating
ResultsConsolidated Net income for first quarter 2018
increased $0.1 million as compared with the first quarter
2017. Earnings per share on a fully diluted basis were $0.27,
unchanged from the same period reported in 2017.
Operating revenues increased in 2018 by $1.0 million to $31.2
million. The increase is attributable to growth in our
regulated customer base and non-regulated contract operations in
Delaware as well as the November 2017 implementation of a Purchased
Water Adjustment Clause and higher commercial and industrial
customer water usage in New Jersey.
Operations and maintenance expenses increased in 2018 by $1.9
million from the same period in 2017. Severe weather during
the 2018 winter season caused an increase in water main break
repair costs of $1.0 million in our Middlesex System, and increased
water production costs of $0.5 million, also in our Middlesex
system.
Income Tax expense in 2018 decreased by $1.3 million when
compared to 2017 due to the lower corporate income tax rate
implemented under the Tax Cuts and Jobs Act of 2017 legislation as
well as regulatory accounting treatment of tangible property
regulations related tax deductions, which were approved in
Middlesex’s most recent base rate case.
Middlesex President and Chief Executive Officer Dennis W. Doll
said, “Severe weather earlier this year created a busy and
challenging time for our field personnel working night and day to
mitigate the effects of the sustained frigid weather. We
sincerely appreciate their efforts to minimize service disruptions
to our customers. We are pleased that our Middlesex rate
case, filed in October 2017, received a timely decision from our
New Jersey regulators, which resulted in a $5.5 million increase in
customer’s base rates. The new rates went into effect April 1,
2018. We’re also preparing to break ground on our Western
Transmission Main, a $52 million project, part of our Water for
Tomorrow capital program in which Middlesex will be investing up to
$305 million in various significant infrastructure projects over
the next five years,” said Doll.
Quarterly Dividend DeclaredAs previously
announced in April 2018, the Board of Directors of Middlesex Water
Company declared a quarterly cash dividend of $0.22375 per common
share to be paid on June 1, 2018 to shareholders of record as of
May 15, 2018. The Company has paid cash dividends continually
since 1912 and increased its dividend for the forty-fifth
consecutive year in 2017. Information about Middlesex’s
Direct Share Purchase and Sale and Dividend Reinvestment Plan can
be found on our website.
Annual Meeting of ShareholdersThe Company will
host its Annual Meeting of Shareholders on Tuesday, May 22, 2018,
beginning at 11:00 a.m. at its corporate headquarters at 1500
Ronson Road in Iselin, New Jersey. To view the Company’s 2017
Annual Report visit
http://investors.middlesexwater.com
About Middlesex Water CompanyMiddlesex Water
Company, organized in 1897, is a water utility serving customers in
central and southern New Jersey and in the State of Delaware. The
Company and its New Jersey subsidiaries -- Pinelands Water Company
and Pinelands Wastewater Company -- are subject to the regulations
of the Board of Public Utilities of the State of New Jersey.
Middlesex Water Company operates the water and wastewater utilities
for the City of Perth Amboy through its subsidiary, Utility Service
Affiliates (Perth Amboy) Inc. The Company also provides
contract operations services through its non-regulated subsidiary,
Utility Service Affiliates, Inc. The Company’s regulated
Delaware subsidiaries, Tidewater Utilities, Inc., together with
Southern Shores Water Company and Tidewater Environmental Services
Inc., are subject to the regulations of the Public Service
Commission in Delaware. White Marsh Environmental Systems, Inc.
operates small water and wastewater systems under contract on a
non-regulated basis in Delaware. The Company serves customers
in Shohola, Pennsylvania through its subsidiary, Twin Lakes
Utilities, Inc. These companies are also subject to various Federal
and State regulatory agencies concerning water, and wastewater
effluent quality standards.
For additional information regarding Middlesex Water Company,
visit the Company’s web site at www.middlesexwater.com or call
(732) 634-1500.
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.
MIDDLESEX WATER
COMPANY |
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(Unaudited) |
(In thousands except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
Operating Revenues |
$ |
31,177 |
|
$ |
30,131 |
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
Operations and Maintenance |
|
17,834 |
|
|
15,939 |
|
Depreciation |
|
3,609 |
|
|
3,308 |
|
Other Taxes |
|
3,384 |
|
|
3,309 |
|
|
|
|
|
|
Total Operating Expenses |
|
24,827 |
|
|
22,556 |
|
|
|
|
|
|
Operating Income |
|
6,350 |
|
|
7,575 |
|
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
Allowance for Funds Used During Construction |
|
167 |
|
|
119 |
|
Other Income (Expense), net |
|
297 |
|
|
206 |
|
|
|
|
|
|
Total Other Income, net |
|
464 |
|
|
325 |
|
|
|
|
|
|
Interest Charges |
|
1,138 |
|
|
1,003 |
|
|
|
|
|
|
Income before Income Taxes |
|
5,676 |
|
|
6,897 |
|
|
|
|
|
|
Income Taxes |
|
1,182 |
|
|
2,456 |
|
|
|
|
|
|
Net Income |
|
4,494 |
|
|
4,441 |
|
|
|
|
|
|
Preferred Stock Dividend Requirements |
|
36 |
|
|
36 |
|
|
|
|
|
|
Earnings Applicable to Common Stock |
$ |
4,458 |
|
$ |
4,405 |
|
|
|
|
|
Earnings per share of Common Stock: |
|
|
|
|
Basic |
$ |
0.27 |
|
$ |
0.27 |
|
Diluted |
$ |
0.27 |
|
$ |
0.27 |
|
|
|
|
|
|
Average Number of Common Shares Outstanding: |
|
|
|
|
Basic |
|
16,354 |
|
|
16,299 |
|
Diluted |
|
16,510 |
|
|
16,455 |
|
|
|
|
|
|
Cash Dividends Paid per Common Share |
$ |
0.2238 |
|
$ |
0.2113 |
|
|
|
|
|
|
Media Contact:Bernadette Sohler, Vice President
– Corporate AffairsMiddlesex Water
Companybsohler@middlesexwater.com(732) 638-7549
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