Middlesex Water Company Announces Second Quarter 2017 Financial Results
August 01 2017 - 11:00AM
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 announced
operating results for the quarter ended June 30, 2017.
Second Quarter Operating ResultsConsolidated
operating revenues for the three months ended June 30, 2017
increased $0.3 million to $33.0 million from the same period in
2016. Net income decreased $0.5 million to $5.4 million from
the comparable period in 2016. Basic and diluted earnings
per share were $0.33 for the quarter ended June 30, 2017, down from
$0.36 for the same period in 2016.
Operating revenues in our Delaware regulated water utility,
Tidewater Utilities, Inc. (“Tidewater”), increased $0.5 million due
to the addition of new customers. This was offset by a $0.2 million
decrease in operating revenues in the Company’s Middlesex System in
New Jersey as a result of lower water usage across all customer
categories.
Operation and maintenance expenses for the second quarter
increased $0.9 million to $16.7 million from the same period in
2016. Higher water production costs of $0.5 million in the
Middlesex System in New Jersey were due to a rate increase in water
treatment residuals disposal costs from the local municipal
wastewater utility and lower raw water quality. Labor costs
increased $0.3 million due to higher average labor rates and
additional employees required to address regulatory needs.
Middlesex Chairman, President and Chief Executive Officer Dennis
W. Doll said, “Water usage remained moderate through the second
quarter and we were able to capably meet the needs of customers as
hotter weather took hold by mid-summer. Through our Water for
Tomorrow® initiative, our crews continue to make various strategic
improvements in our water distribution infrastructure. As we
seek recovery of those prudent investments, we are closely
monitoring our revenues and costs to determine the timing and need
for rate filings in our New Jersey and Delaware regulated
utilities,” added Doll.
Six Month Operating ResultsConsolidated
operating revenues for the six months ended June 30, 2017 were
$63.1 million, a decrease of $0.2 million from the same period in
2016, due mostly to lower water usage in the Middlesex System in
New Jersey, offset by increased revenues from additional new
customers in our Tidewater System in Delaware. For the six months
ended June 30, 2017, basic and diluted earnings per share were
$0.60 and $0.59 respectively, as compared to $0.65 for basic and
diluted earnings per share for the same period in 2016.
Quarterly Dividend Declared The Company’s Board
of Directors declared a quarterly cash dividend of $0.21125 per
share, payable September 1, 2017 to common shareholders as of
August 11, 2017. Middlesex has paid cash dividends
continually since 1912 and has increased its annual dividend rate
for 44 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.
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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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2017 |
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2016 |
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2017 |
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2016 |
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Operating Revenues |
$ |
33,014 |
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$ |
32,725 |
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$ |
63,145 |
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$ |
63,304 |
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Operating Expenses: |
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Operations and Maintenance |
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16,651 |
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15,789 |
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32,385 |
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31,617 |
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Depreciation |
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3,385 |
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3,180 |
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6,693 |
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6,317 |
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Other Taxes |
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3,415 |
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3,428 |
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6,724 |
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6,740 |
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Total Operating Expenses |
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23,451 |
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22,397 |
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45,802 |
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44,674 |
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Operating Income |
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9,563 |
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10,328 |
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17,343 |
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18,630 |
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Other Income (Expense): |
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Allowance for Funds Used During Construction |
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180 |
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119 |
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299 |
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180 |
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Other Income |
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47 |
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25 |
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53 |
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73 |
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Other Expense |
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(22 |
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(7 |
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(27 |
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(26 |
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Total Other Income, net |
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205 |
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137 |
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325 |
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227 |
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Interest Charges |
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1,469 |
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1,436 |
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2,472 |
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2,413 |
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Income before Income Taxes |
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8,299 |
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9,029 |
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15,196 |
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16,444 |
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Income Taxes |
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2,918 |
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3,110 |
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5,374 |
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5,735 |
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Net Income |
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5,381 |
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5,919 |
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9,822 |
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10,709 |
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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 |
$ |
5,345 |
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$ |
5,883 |
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$ |
9,750 |
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$ |
10,637 |
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Earnings per share of Common Stock: |
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Basic |
$ |
0.33 |
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$ |
0.36 |
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$ |
0.60 |
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$ |
0.65 |
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Diluted |
$ |
0.33 |
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$ |
0.36 |
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$ |
0.59 |
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$ |
0.65 |
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Average Number of |
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Common Shares Outstanding : |
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Basic |
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16,332 |
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16,271 |
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16,316 |
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16,252 |
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Diluted |
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16,488 |
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16,427 |
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16,472 |
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16,408 |
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Cash Dividends Paid per Common Share |
$ |
0.2113 |
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$ |
0.1988 |
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$ |
0.4225 |
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$ |
0.3975 |
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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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