Middlesex Water Company Announces Third Quarter 2016 Financial Results
November 01 2016 - 12:30PM
Third Quarter Highlights
Middlesex Water Company (NASDAQ:MSEX) ("Middlesex" or the
"Company") today reported third quarter consolidated operating
revenues of $37.8 million as compared to $34.7 million for the same
period in 2015. Net income for the quarter was $8.8 million,
compared to $6.7 million reported in the same quarter of
2015. Basic and diluted earnings per share for the quarter
were $0.54, compared to $0.41 for the same period in 2015.
Middlesex Chairman, President and Chief Executive Officer Dennis
W. Doll said, “Our positive third quarter results were largely
influenced by favorable weather conditions, higher demand for water
and the effect of rate relief granted to Middlesex by regulators in
August 2015. In addition to delivering results of $0.54 per
share for the quarter, we were pleased to announce a 6.29% increase
in the common dividend in October, which represents the 44th year
of consecutive dividend increases in our company’s history and
demonstrates our continuing focus on improving shareholder
value.”
Third Quarter Operating Results
Consolidated operating revenues for the third quarter increased
$3.1 million from the same period in 2015. Revenues in the
Company’s Middlesex system in New Jersey increased $2.3 million,
primarily due to New Jersey Board of Public Utilities (“NJBPU”)
approved rate increase implemented in August 2015, favorable
weather and higher wholesale contract customer demand.
Revenues in our Delaware system, Tidewater Utilities, Inc.,
(Tidewater) increased $0.5 million, primarily due to additional
customers and weather-related demand. Revenues from contract
operations increased $0.2 million, primarily related to scheduled
fixed fee increases under our operating contract with the City of
Perth Amboy, New Jersey as well as supplemental services earned
under our contract to operate the Borough of Avalon, New Jersey’s
water utility, sewer utility and storm water system.
Operation and maintenance expenses for the third quarter
decreased $0.2 million from the same period in 2015. This
decrease is primarily attributable to lower retirement plan costs
resulting from a higher actuarially-determined discount rate than
in the prior year. Labor costs increased $0.3 million due to higher
average labor rates and increased headcount, partially offset by
higher capitalized labor in the Middlesex system.
Nine Month Operating Results
For the nine months ended September 30, 2016, revenues increased
$6.0 million from the same period in 2015. Revenues in our
Middlesex system increased $5.5 million, due to favorable weather
conditions, a NJBPU-approved rate increase implemented in August
2015 and higher wholesale contract customer demand. Revenues
in our Tidewater system increased $0.1 million, primarily due to
additional customers offset by lower customer demand from
unfavorable weather conditions in late spring and early
summer.
Operation and maintenance expenses for the nine months ended
September 30, 2016 decreased $0.9 million from the same period in
2015, primarily due to lower employee benefit expenses, fewer water
main breaks and lower variable production costs due to improved
non-revenue water management and higher raw water quality in our
Middlesex system.
Net income increased $4.1 million from the same period in
2015. Basic and diluted earnings per share were $1.19,
compared to $0.95 for the same period in 2015.
Annual Dividend Increased for 44th Consecutive
Year
As previously reported, the Company's Board of Directors
declared a dividend of $0.21125 per share on its common stock, a
6.29 percent increase. Middlesex Water Company has paid cash
dividends in varying amounts continually since 1912. This
increase raises the annual dividend to $0.845 from $0.795 per share
of common stock. The dividend is payable December 1, 2016 to
shareholders of record as of November 10, 2016.
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.
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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, |
Nine Months Ended
September 30, |
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2016 |
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2015 |
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2016 |
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2015 |
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Operating Revenues |
$ |
37,794 |
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$ |
34,654 |
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$ |
101,098 |
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$ |
95,100 |
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Operating Expenses: |
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Operations and Maintenance |
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16,599 |
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16,772 |
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48,215 |
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49,089 |
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Depreciation |
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3,243 |
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3,032 |
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9,561 |
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8,962 |
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Other Taxes |
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3,796 |
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3,390 |
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10,537 |
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9,671 |
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Total Operating Expenses |
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23,638 |
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23,194 |
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68,313 |
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67,722 |
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Operating Income |
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14,156 |
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11,460 |
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32,785 |
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27,378 |
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Other Income (Expense): |
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Allowance for Funds Used During Construction |
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207 |
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113 |
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387 |
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297 |
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Other Income (Expense), net |
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400 |
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108 |
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449 |
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108 |
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Total Other Income, net |
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607 |
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221 |
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836 |
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405 |
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Interest Charges |
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1,427 |
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1,505 |
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3,841 |
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4,058 |
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Income before Income Taxes |
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13,336 |
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10,176 |
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29,780 |
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23,725 |
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Income Taxes |
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4,523 |
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3,433 |
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10,258 |
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8,258 |
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Net Income |
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8,813 |
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6,743 |
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19,522 |
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15,467 |
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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 |
$ |
8,777 |
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$ |
6,707 |
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$ |
19,414 |
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$ |
15,359 |
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Earnings per share of Common Stock: |
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Basic |
$ |
0.54 |
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$ |
0.41 |
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$ |
1.19 |
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$ |
0.95 |
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Diluted |
$ |
0.54 |
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$ |
0.41 |
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$ |
1.19 |
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$ |
0.95 |
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Average Number of |
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Common Shares Outstanding : |
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Basic |
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16,284 |
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16,202 |
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16,262 |
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16,161 |
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Diluted |
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16,440 |
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16,358 |
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16,418 |
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16,317 |
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Cash Dividends Paid per Common Share |
$ |
0.1988 |
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$ |
0.1925 |
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$ |
0.5963 |
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$ |
0.5775 |
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Contact:
Bernadette Sohler, Vice President – Corporate Affairs
Middlesex Water Company
1500 Ronson Road
Iselin, New Jersey 08830
(732) 638-7549
www.middlesexwater.com
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