Middlesex Water Company Reports Third Quarter 2017 Financial Results
November 02 2017 - 2:41PM
Middlesex Water Company (NASDAQ:MSEX) ("Middlesex" or the
"Company") today reported third quarter consolidated operating
revenues of $36.2 million as compared to $37.8 million for the same
period in 2016. Net income for the quarter was $7.6 million,
compared to $8.8 million reported in the same quarter of
2016. Basic and diluted earnings per share for the quarter
were $0.47 and $0.46 respectively, compared to $0.54 for the same
period in 2016.
“Weather was a significant factor impacting our third quarter
results as unfavorable weather patterns in the summer months
contributed to lower outdoor water consumption across various
customer classes,” said Middlesex Chairman, President and Chief
Executive Officer Dennis W. Doll. “Separately, we were
pleased to announce a 5.9% increase in the common dividend in
October, demonstrating our continued emphasis on returning value to
shareholders. This increase represents the 45th year of
consecutive dividend increases in our company’s history,” added
Doll.
Third Quarter Operating Results
Consolidated operating revenues for the third quarter ended
September 30, 2017, decreased $1.6 million from the same period in
2016. Revenues in the Company’s Middlesex system in New
Jersey decreased $1.8 million, primarily due to unfavorable weather
patterns in the summer months of 2017. Revenues in our
Delaware system, Tidewater Utilities, Inc., (Tidewater) remained
consistent largely because the addition of new residential
customers helped to offset lower weather-related customer water
demand.
Operation and maintenance expenses for the third quarter
decreased $0.4 million from the same period in 2016. This
decrease is primarily attributable to lower retirement plan costs
of $0.7 million resulting from reimbursement of retiree healthcare
insurance premiums and lower water production costs of $0.2 million
in our Middlesex System due to decreased water consumption offset
by higher main break repair activity costs of $0.3 million,
increased labor costs of $0.1 million due to higher average labor
rates and increased personnel required to address increased
regulatory requirements and other critical needs.
Nine Month Operating Results
For the nine months ended September 30, 2017, revenues decreased
$1.8 million from the same period in 2016. Revenues in our
Middlesex system decreased $2.8 million, due to unfavorable weather
patterns in the spring and summer months of 2017. Revenues in
our Tidewater system increased $0.9 million, primarily due to
additional customers, offset by lower customer water demand from
unfavorable weather conditions in the spring and summer.
Middlesex Water Increases Annual Dividend for 45th
Consecutive Year
As previously reported, in October, the Company's Board of
Directors declared a dividend of $0.22375 per share on its common
stock, a 5.9 percent increase. Middlesex Water Company has paid
cash dividends in varying amounts continually since 1912.
This increase raises the annual dividend to $0.895 from
$0.845 per share of common stock. The dividend is payable
December 1, 2017 to shareholders of record as of November 9,
2017.
About Middlesex Water Company
Middlesex Water Company, organized in 1897, provides regulated
and unregulated water and wastewater utility services primarily in
New Jersey and Delaware through various subsidiary companies.
Information about the Company’s Direct Share Purchase and Sale and
Dividend Reinvestment Plan can be found at
investors.middlesexwater.com
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 Company1500 Ronson RoadIselin, New Jersey
08830(732) 638-7549www.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
September 30, |
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Nine Months Ended
September 30, |
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2017 |
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2016 |
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2017 |
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2016 |
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Operating Revenues |
$ |
36,174 |
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$ |
37,794 |
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$ |
99,319 |
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$ |
101,098 |
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Operating Expenses: |
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Operations and Maintenance |
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16,178 |
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16,599 |
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48,563 |
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48,215 |
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Depreciation |
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3,587 |
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3,243 |
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10,280 |
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9,561 |
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Other Taxes |
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3,603 |
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3,796 |
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10,327 |
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10,537 |
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Total Operating Expenses |
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23,368 |
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23,638 |
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69,170 |
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68,313 |
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Operating Income |
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12,806 |
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14,156 |
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30,149 |
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32,785 |
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Other Income (Expense): |
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Allowance for Funds Used During Construction |
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174 |
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207 |
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473 |
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387 |
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Other Income, net |
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43 |
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400 |
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69 |
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449 |
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Total Other Income, net |
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217 |
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607 |
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542 |
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836 |
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Interest Charges |
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1,493 |
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1,427 |
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3,965 |
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3,841 |
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Income before Income Taxes |
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11,530 |
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13,336 |
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26,726 |
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29,780 |
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Income Taxes |
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3,888 |
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4,523 |
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9,263 |
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10,258 |
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Net Income |
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7,642 |
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8,813 |
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17,463 |
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19,522 |
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Preferred Stock Dividend Requirements |
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36 |
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36 |
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108 |
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108 |
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Earnings Applicable to Common Stock |
$ |
7,606 |
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$ |
8,777 |
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$ |
17,355 |
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$ |
19,414 |
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Earnings per share of Common Stock: |
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Basic |
$ |
0.47 |
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$ |
0.54 |
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$ |
1.06 |
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$ |
1.19 |
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Diluted |
$ |
0.46 |
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$ |
0.54 |
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$ |
1.06 |
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$ |
1.19 |
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Average Number of |
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Common Shares Outstanding : |
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Basic |
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16,340 |
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16,284 |
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16,324 |
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16,262 |
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Diluted |
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16,496 |
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16,440 |
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16,480 |
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16,418 |
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Cash Dividends Paid per Common Share |
$ |
0.2113 |
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$ |
0.1988 |
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$ |
0.6338 |
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$ |
0.5963 |
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