Middlesex Water Company Reports First Quarter 2019 Financial Results
May 06 2019 - 4:09PM
First Quarter 2019 Highlights
Middlesex Water Company (“Middlesex” or the “Company”)
(NASDAQ:MSEX) a provider of water and wastewater services, today
reported financial results for the first quarter ended March 31,
2019.
First Quarter 2019 Operating
ResultsConsolidated net income for first quarter 2019
increased $2.1 million as compared with the first quarter
2018. Earnings per share on a fully diluted basis were $0.39,
up from $0.27 for the same period reported in 2018.
Operating revenues for the three months ended March 31, 2019
decreased $0.5 million to $30.7 million. The decrease is
attributable to lower non-regulated contract operations
revenue. Under our new 10-year contract with the City of
Perth Amboy, New Jersey, the provision of wastewater services
changed, thereby reducing both revenues and costs as described in
the expense discussion below. Revenues in our Middlesex
System increased $1.0 million due to the April 1, 2018 New Jersey
Board of Public Utilities approved base rate increase.
Operations and maintenance expenses decreased by $1.7 million
from the first quarter in 2018. Milder winter weather in the
first quarter of 2019 resulted in $0.3 million in lower water main
break repair related costs in the Middlesex System. Under our
new Perth Amboy operating contract, our subsidiary USA-PA no longer
incurs sub-contractors fees for wastewater services, which resulted
in a $1.4 million decrease in O&M costs.
Income Tax expense in the first quarter decreased by $1.4
million, when compared to 2018, due to the regulatory accounting
treatment of tangible property regulations related tax deductions,
which were approved in Middlesex’s most recent base rate case.
Middlesex Chairman, President and Chief Executive Officer Dennis
W. Doll said, “All in all, it has been a busy first quarter. We
assumed direct management of the wastewater operating
responsibilities under our new operating contract with the City of
Perth Amboy, where formerly that work was sub-contracted, resulting
in operating cost savings which we are able to share with the
City. Our 5% Discount window on purchases of Common Stock
announced at the end of 2018 is seeing active interest. We
relocated our corporate headquarters and customer payment center to
accommodate expanding business needs. Construction of our large
supplemental transmission main is nearing 60% completion.
Throughout these numerous developments, I am deeply proud of our
team who despite these major initiatives, does not lose sight of
our company’s critical role in serving our customers, driving
shareholder value, preserving the environment and protecting public
health,” added Doll.
Quarterly Dividend DeclaredAs previously
announced in April 2019, the Board of Directors of Middlesex Water
Company declared a quarterly cash dividend of $0.24 per common
share to be paid on June 3, 2019 to shareholders of record as of
May 15, 2019. The Company has paid cash dividends continually
since 1912 and increased its dividend for the forty-sixth
consecutive year in 2018. The 5% Discount in effect on our Common
Stock for participants in the Company’s Investment Plan on
purchases made by optional cash payment or dividend reinvestment is
anticipated to continue until 200,000 shares are purchased at the
discounted price or December 30, 2019, whichever occurs first.
Annual Meeting of ShareholdersThe Company will
host its Annual Meeting of Shareholders on Tuesday, May 21, 2019,
beginning at 11:00 a.m. at The Delta by Marriott at Woodbridge
(formerly The Renaissance Hotel) at 515 U.S. Highway One South
Iselin, New Jersey. To view the Company’s 2018 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.
Media Contact:Bernadette Sohler, Vice President
– Corporate AffairsMiddlesex Water
Companybsohler@middlesexwater.com(732) 638-7549
MIDDLESEX WATER
COMPANY |
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(Unaudited) |
(In thousands except per share
amounts) |
|
|
|
|
|
|
|
Three Months
Ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
Operating Revenues |
$ |
30,698 |
|
|
$ |
31,177 |
|
|
|
|
|
Operating Expenses: |
|
|
|
|
Operations and
Maintenance |
|
16,120 |
|
|
|
17,834 |
|
Depreciation |
|
4,046 |
|
|
|
3,609 |
|
Other Taxes |
|
3,504 |
|
|
|
3,384 |
|
|
|
|
|
Total Operating Expenses |
|
23,670 |
|
|
|
24,827 |
|
|
|
|
|
Operating Income |
|
7,028 |
|
|
|
6,350 |
|
|
|
|
|
Other Income (Expense): |
|
|
|
|
Allowance for Funds Used During Construction |
|
515 |
|
|
|
167 |
|
Other Income (Expense), net |
|
(57 |
) |
|
|
297 |
|
|
|
|
|
Total Other Income, net |
|
458 |
|
|
|
464 |
|
|
|
|
|
Interest Charges |
|
1,200 |
|
|
|
1,138 |
|
|
|
|
|
Income before Income Taxes |
|
6,286 |
|
|
|
5,676 |
|
|
|
|
|
Income Taxes |
|
(266 |
) |
|
|
1,182 |
|
|
|
|
|
Net Income |
|
6,552 |
|
|
|
4,494 |
|
|
|
|
|
Preferred Stock Dividend Requirements |
|
36 |
|
|
|
36 |
|
|
|
|
|
Earnings Applicable to Common Stock |
$ |
6,516 |
|
|
$ |
4,458 |
|
|
|
|
|
Earnings per share of Common Stock: |
|
|
|
|
Basic |
$ |
0.40 |
|
|
$ |
0.27 |
|
Diluted |
$ |
0.39 |
|
|
$ |
0.27 |
|
|
|
|
|
Average Number of Common Shares Outstanding: |
|
|
|
|
Basic |
|
16,428 |
|
|
|
16,354 |
|
Diluted |
|
16,584 |
|
|
|
16,510 |
|
|
|
|
|
Cash Dividends Paid per Common Share |
$0.2400 |
|
|
$0.2238 |
|
|
|
|
|
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