- Earnings per share increased 7.9
percent to $0.41 vs. $0.38 in 2015
- 2016 earnings guidance of $1.30 to
$1.35 per share reaffirmed
Aqua America, Inc. (NYSE: WTR) today reported results for the
third quarter ending Sept. 30, 2016.
Operating Results
For the third quarter of 2016, Aqua America reported revenues of
$226.6 million, an increase of $5.5 million or 2.5 percent compared
to $221.1 million in the same quarter of 2015. Higher consumption,
rates and surcharges, regulated growth and other factors increased
regulated revenue by approximately $9.2 million compared to the
third quarter of 2015. Lower revenue from reduced market-based
activities offset the increase by $3.7 million.
Operations and maintenance expenses were $79.8 million for the
third quarter of 2016, an increase of 1.6 percent compared to $78.5
million in the third quarter of 2015. Reduced market-based
activities and lower production costs of $2.7 million offset
increased employee-related expenses, costs associated with
regulated acquisitions and other expenses.
Net income for the third quarter was $73.2 million, an 8.5
percent increase compared to $67.4 million reported in the same
quarter of 2015. Earnings per diluted common share were $0.41 for
the quarter, an increase of 7.9 percent compared to $0.38 in the
same quarter of the previous year.
As of Sept. 30, Aqua reported year-to-date net income of $184.5
million, a 6.4 percent increase compared to $173.4 million reported
through the same time period of 2015. Earnings per diluted common
share for 2016 increased 6.1 percent to $1.04, compared to $0.98 in
the first nine months of 2015. Year-to-date, the company reported
revenues of $623.1 million compared to the $617.1 million reported
in the same time period of 2015. Operations and maintenance
expenses decreased 1.8 percent to $227.3 million versus $231.5
million through the first three quarters of 2015.
“Aqua’s third quarter and year-to-date strong financial results
are a testament to our cost-conscious culture and the continued use
of our core capabilities to produce positive results,” said Aqua
America President and CEO Christopher Franklin. “Our employees
demonstrated their dedication to our important mission as they
worked tirelessly to restore water and wastewater service to
thousands of customers affected by Hurricane Matthew in North
Carolina. This was another situation that reminded me how proud I
am to lead such a strong, customer-centric team.”
Capital Expenditures
Aqua invested $270 million in the first nine months of the year
to improve its infrastructure systems. The company expects to
invest more than $350 million in 2016 and more than $1.1 billion
through 2018. The capital investments made to rehabilitate and
expand the infrastructure of the communities Aqua serves are
paramount to helping the company to protect and provide Earth’s
most essential resource.
Rate Activity
To date in 2016, the company’s state subsidiaries in Illinois,
North Carolina, Ohio, Texas, Virginia and New Jersey have received
rate awards or infrastructure surcharges totaling an estimated
increase to annualized revenues of $5.5 million. This includes $1.1
million of revenues collected under interim rates during 2015.
Additionally, the company currently has rate or surcharge
proceedings pending in Indiana, Ohio and Virginia, totaling $8.1
million. The timing and extent to which rate increases might be
granted by the applicable regulatory agencies will vary by
state.
Acquisition Growth in Regulated Operations
Year to date, Aqua has added approximately 5,700 customer
connections through acquisitions in Pennsylvania, Indiana,
Illinois, North Carolina, Virginia, New Jersey and Ohio.
Acquisitions and organic growth have increased the company’s
customer base by more than 1.3 percent year-to-date in 2016.
“We’re excited by the mounting opportunities to grow our
regulated utilities across our entire footprint,” said Franklin.
“By providing a viable option for both private and municipal
systems, which increasingly need infrastructure improvement, we are
able to continually generate positive conversations with interested
parties.”
Financial Information
At quarter-end, Aqua America had $160 million available on its
credit lines, and the company’s weighted average cost of fixed-rate
long-term debt was 4.55 percent, a 15 basis-point reduction
compared to 4.7 percent at Sept. 30, 2015.
2016 Guidance
Aqua America continues to affirm its guidance for 2016, which
remains unchanged from last quarter:
- Earnings per diluted common share of
$1.30 to $1.35
- Total customer base growth of 1.5 to
2.0 percent
- Same-system operations and maintenance
expenses increase of 1 to 2 percent
- More than $350 million in capital
investments; more than $1.1 billion in 2016 through 2018
Aqua America does not guarantee future results of any kind.
Guidance is subject to risks and uncertainties, including, without
limitation, those factors outlined in the “Forward Looking
Statements” of this release and the “Risk Factors” section of the
company’s annual and quarterly reports filed with the Securities
and Exchange Commission (SEC).
Earnings Call Information
Date: Nov. 2, 2016Time: 11 a.m. EDT (please dial in by 10:45
a.m.)Webcast and slide presentation link:
http://ir.aquaamerica.com/events.cfmReplay Dial-in #: 888.203.1112
(U.S.) & +1 719.457.0820 (International)Confirmation code:
6100815
The company’s conference call with financial analysts will take
place on Wednesday, Nov. 2, 2016 at 11 a.m. Eastern Daylight Time.
The call and slide presentation will be webcast live so that
interested parties may listen over the Internet by logging on to
AquaAmerica.com and following the link for Investor Relations. The
webcast will be archived in the investor relations section of the
company’s website for 90 days following the call. Additionally, the
call will be recorded and made available for replay at 2 p.m. on
Nov. 2, 2016 for 10 business days following the call. To access the
audio replay in the U.S., dial 888.203.1112 (pass code 6100815).
International callers can dial +1 719.457.0820 (pass code
6100815).
About Aqua America
Aqua America is one of the largest U.S.-based, publicly traded
water utilities and serves nearly 3 million people in Pennsylvania,
Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and
Virginia. Aqua America is listed on the New York Stock Exchange
under the ticker symbol WTR. Visit AquaAmerica.com for more
information.
Caution Concerning Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others: the company’s earnings guidance; the
company’s ability to make capital investments; the anticipated
customer growth results for 2016; the anticipated amount of capital
investment through 2018; and the company’s ability to manage
operations and maintenance expenses. There are important factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements including:
the company’s continued ability to adapt itself for the future and
build value by fully optimizing company assets; general economic
business conditions; the company’s ability to fund needed
infrastructure due to its financial position; housing and customer
growth trends; unfavorable weather conditions; the success of
certain cost containment initiatives; changes in regulations or
regulatory treatment; availability and access to capital; the cost
of capital; disruptions in the credit markets; the success of
growth initiatives; the company’s ability to execute on its core
capabilities of prudently deploying capital, consistently earning
credibility with stakeholders, and maintaining its status as one of
the most efficient utilities in the United States; the company’s
ability to grow its dividend, add shareholder value and to grow
earnings; and other factors discussed in our Annual Report on Form
10-K, which is on file with the Securities and Exchange Commission.
For more information regarding risks and uncertainties associated
with Aqua America’s business, please refer to Aqua America’s
annual, quarterly and other SEC filings. Aqua America is not under
any obligation – and expressly disclaims any such obligation – to
update or alter its forward-looking statements whether as a result
of new information, future events or otherwise.
WTRF
Aqua America, Inc. and Subsidiaries Selected Operating Data
(In thousands, except per share amounts) (Unaudited)
Quarter Ended Nine Months Ended
September
30,
September
30,
2016
2015
2016
2015
Operating revenues $ 226,593 $ 221,051 $ 623,076 $ 617,137
Net income $ 73,170 $ 67,429 $ 184,533 $ 173,356
Basic net income per common share $ 0.41 $ 0.38 $ 1.04 $ 0.98
Diluted net income per common share $ 0.41 $ 0.38 $ 1.04 $ 0.98
Basic average common shares outstanding 177,336 176,704
177,243 176,891 Diluted average common shares outstanding
177,817 177,495 177,781 177,670
Aqua America, Inc. and Subsidiaries Condensed Consolidated Balance
Sheets (In thousands of dollars) (Unaudited)
September 30, December 31,
2016
2015
Net property, plant and equipment $ 4,901,486 $ 4,688,925
Current assets 141,401 128,370 Regulatory assets and other assets
993,138 900,578 Total assets $ 6,036,025 $ 5,717,873
Total equity $ 1,832,200 $ 1,725,930 Long-term debt,
excluding current portion 1,726,493 1,720,447 Current portion of
long-term debt and loans payable 131,767 52,314 Other current
liabilities 120,231 140,885 Deferred credits and other liabilities
2,225,334 2,078,297 Total liabilities and equity $
6,036,025 $ 5,717,873 Aqua America, Inc. and
Subsidiaries Consolidated Statement of Income (In thousands, except
per share amounts) (Unaudited) Quarter Ended
Nine Months Ended
September
30,
September
30,
2016
2015
2016
2015
Operating revenues $ 226,593 $ 221,051 $ 623,076 $ 617,137
Cost & expenses: Operations and maintenance 79,812
78,519 227,347 231,454 Depreciation 33,881 31,981 97,645 93,530
Amortization 389 816 1,367 2,589 Taxes other than income taxes
14,712 14,663 43,094
43,079 Total 128,794 125,979
369,453 370,652 Operating
income 97,799 95,072 253,623 246,485 Other expense (income):
Interest expense, net 20,168 19,239 60,136 56,804 Allowance for
funds used during construction (2,267 ) (1,708 ) (6,446 ) (3,930 )
Gain on sale of other assets (62 ) (170 ) (390 ) (338 ) Equity
(income) loss in joint venture (1,621 ) 698
(1,143 ) 1,496 Income before income taxes
81,581 77,013 201,466 192,453 Provision for income taxes
8,411 9,584 16,933 19,097
Net income $ 73,170 $ 67,429 $ 184,533
$ 173,356 Net income per common share: Basic $ 0.41 $
0.38 $ 1.04 $ 0.98 Diluted $ 0.41 $ 0.38 $ 1.04 $ 0.98
Average common shares outstanding: Basic 177,336
176,704 177,243 176,891
Diluted 177,817 177,495 177,781
177,670
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version on businesswire.com: http://www.businesswire.com/news/home/20161101006807/en/
Aqua America, Inc.Brian DingerdissenInvestor RelationsO:
610-645-1191BJDingerdissen@AquaAmerica.comorDonna AlstonManager,
CommunicationsO: 610-645-1095M:
484-368-4720DPAlston@AquaAmerica.com
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