The York Water Company Reports 2016 Annual and Fourth Quarter Results
March 07 2017 - 9:30AM
The York Water Company’s (NASDAQ:YORW) President, Jeffrey R. Hines,
announced today the Company’s 2016 earnings.
President Hines reported that annual operating
revenues for 2016 increased $495,000, and that net income decreased
$643,000 when compared to 2015. Higher operating revenues
were primarily due to growth in the customer base, mainly due to
acquisitions; and additionally due to higher billing and collection
services income. Net income declined primarily due to a lower
volume of asset improvements eligible for the tax deduction under
the IRS tangible property regulations which resulted in higher
income taxes. Higher depreciation expense, and higher
retirement expenses added to the decline in net income in
2016. Basic and Diluted Earnings per share for 2016 were
$0.05 lower than 2015 and dividends per share rose by $0.0227
compared to 2015.
During the year, the Company invested $13.2
million in capital projects for further upgrades to water treatment
facilities, information and communication technology, and the
commencement of construction on an additional water pumping station
and force main, as well as for routine items and replacements of
infrastructure. During 2016, the Company replaced or relined over
42,000 feet of pipe to improve its distribution system, reduce
ongoing expenses, and improve customer service.
President Hines also reported that operating
revenues for the fourth quarter of 2016 increased $268,000, but
that net income declined by $574,000 compared to the fourth quarter
of 2015. The decrease in fourth quarter net income also
resulted from higher income taxes due to a lower volume of asset
improvements eligible for a tax deduction and higher retirement
expenses. Basic and Diluted Earnings per share for the fourth
quarter of 2016 were $0.04 lower than the fourth quarter of
2015.
President Hines reported that York Water plans
to invest approximately $22.8 million in 2017 and $15.6 million in
2018, for completion of a new untreated water pumping station and
force main, system expansion, the start of a dam upgrade project,
and improvements to its pipes and other facilities to ensure a
safe, adequate, and reliable supply of drinking water and to
maintain proper handling and disposal of wastewater for the
Company’s growing customer base.
|
Period Ended December 31 |
|
In 000's (except share and per
share) |
|
Quarter |
Twelve Months |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Operating Revenues |
$11,885 |
$11,617 |
$47,584 |
$47,089 |
Net Income |
$2,942 |
$3,516 |
$11,846 |
$12,489 |
Average Number of
Common Shares Outstanding |
|
12,863 |
|
12,794 |
|
12,846 |
|
12,832 |
Basic and Diluted
Earnings Per Common Share |
$0.23 |
$0.27 |
$0.92 |
$0.97 |
Dividends Declared Per
Common Share |
$0.1602 |
$0.1555 |
$0.6267 |
$0.6040 |
In January 2017, the Company closed on its
acquisition of the water assets of Stockham’s Village, and in
February 2017, the Company closed on its acquisition of the
wastewater assets of West York Borough. The water acquisition
added approximately 80 customers, and the wastewater acquisition
added approximately 1,700 customers, representing more than 2,200
units and making this the largest acquisition in the Company’s
history.
This news release may contain forward-looking
statements regarding the Company’s operational and financial
expectations. These statements are based on currently available
information and are subject to risks, uncertainties, and other
events which could cause the Company’s actual results to be
materially different from the results described in this statement.
The Company undertakes no duty to update any forward-looking
statement.
Contact:
Jeffrey R. Hines, President
jeffh@yorkwater.com
or
Kathleen M. Miller, Chief Financial Officer
kathym@yorkwater.com
Phone: 717-845-3601
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