Middlesex Water Company Reports 2017 Fourth Quarter And Year-End Financial Results
March 12 2018 - 10:51AM
Middlesex Water Company (“Middlesex” or the “Company”)
(NASDAQ:MSEX) today reported financial results for the fourth
quarter and year ended December 31, 2017.
2017 Operating ResultsConsolidated Net income
for 2017 increased $0.1 million as compared to 2016. Earnings
per share on a fully diluted basis for 2017 were $1.38, which are
the same results reported in 2016.Operating revenues decreased to
$130.8 million, down from $132.9 million in 2016. The $2.1
million revenue decline was caused by unfavorable weather patterns
in New Jersey and Delaware throughout the spring and summer months
of 2017, as well as nonrecurring emergent bulk water sales to New
Jersey municipal systems in 2016. A 4.2% growth in our
regulated customer base in Delaware helped to offset some of the
lower overall average customer usage.
Operations and maintenance expenses for 2017
decreased $0.9 million from the same period in 2016 due to lower
retirement benefit plan costs and liability insurance costs of $1.8
million. Somewhat offsetting these lower costs were increased
costs to produce and treat water, make repairs to our mains in the
Middlesex system and other operating expenses.
Middlesex President and Chief Executive Officer Dennis W. Doll
said, “Our employees remained focused in 2017 on further improving
our service delivery capabilities through continued investments in
infrastructure for enhanced reliability, safety and
resiliency. To recover increased capital and operating
costs prudently invested in our Middlesex System, we filed for an
increase in annual operating revenues of $15.3 million with the New
Jersey Board of Public Utilities in October 2017. As we work
towards a favorable outcome, we are ever mindful of the need to
balance a fair and reasonable rate structure with our commitment to
delivering safe, adequate and proper water service,” added
Doll.
Fourth Quarter 2017 ResultsFor
the three month period ended December 31, 2017, operating revenues
were $31.5 million, down slightly from $31.8 million for the same
period in 2016. Operations and maintenance expenses were
$16.1 million, down from $17.3 million for the same period in 2016
due primarily to lower employee related costs. Net income
increased to $5.3 million from $3.2 million for the same period in
2016.
Quarterly Dividend DeclaredAs previously
announced in January 2018, the Board of Directors of Middlesex
Water Company declared a quarterly cash dividend of $0.22375 per
common share which was paid on March 1, 2018 to shareholders of
record as of February 15, 2018. The Company has paid cash
dividends continually since 1912 and increased its dividend for the
forty-fifth consecutive year in 2017.
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 |
|
CONSOLIDATED STATEMENTS OF
INCOME |
|
(In thousands except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
Quarters Ended December 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ |
130,775 |
|
|
$ |
132,906 |
|
|
$ |
31,456 |
|
|
$ |
31,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
Operations
and Maintenance |
|
64,668 |
|
|
|
65,534 |
|
|
|
16,105 |
|
|
|
17,320 |
|
|
|
Depreciation |
|
13,922 |
|
|
|
12,796 |
|
|
|
3,642 |
|
|
|
3,235 |
|
|
|
Other Taxes |
|
13,565 |
|
|
|
13,944 |
|
|
|
3,238 |
|
|
|
3,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses |
|
92,155 |
|
|
|
92,274 |
|
|
|
22,985 |
|
|
|
23,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
38,620 |
|
|
|
40,632 |
|
|
|
8,471 |
|
|
|
7,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income (Expense): |
|
|
|
|
|
|
|
|
|
Allowance
for Funds Used During Construction |
|
702 |
|
|
|
619 |
|
|
|
229 |
|
|
|
232 |
|
|
|
Other
Income |
|
123 |
|
|
|
662 |
|
|
|
27 |
|
|
|
18 |
|
|
|
Other Expense |
|
(30 |
) |
|
|
(2,143 |
) |
|
|
(3 |
) |
|
|
(1,947 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income, net |
|
795 |
|
|
|
(862 |
) |
|
|
253 |
|
|
|
(1,697 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Charges |
|
5,506 |
|
|
|
5,293 |
|
|
|
1,541 |
|
|
|
1,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income Taxes |
|
33,909 |
|
|
|
34,477 |
|
|
|
7,183 |
|
|
|
4,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes |
|
11,100 |
|
|
|
11,735 |
|
|
|
1,837 |
|
|
|
1,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
22,809 |
|
|
|
22,742 |
|
|
|
5,346 |
|
|
|
3,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividend Requirements |
|
144 |
|
|
|
144 |
|
|
|
36 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Applicable to Common Stock |
$ |
22,665 |
|
|
$ |
22,598 |
|
|
$ |
5,310 |
|
|
$ |
3,184 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share of Common Stock: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.39 |
|
|
$ |
1.39 |
|
|
$ |
0.33 |
|
|
$ |
0.20 |
|
|
|
Diluted |
$ |
1.38 |
|
|
$ |
1.38 |
|
|
$ |
0.32 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
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