York Water Company Announces Increased Earnings for Its 197th Year of Operation in 2012 and a Share Repurchase Program
March 12 2013 - 12:13PM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's fourth quarter and 2012 earnings.
President Hines reported that operating revenues for the fourth
quarter of 2012 increased $320,000 and net income increased
$275,000 over the fourth quarter of 2011. Higher operating revenues
and lower maintenance expenses offset higher income taxes and
increased depreciation resulting in higher net income for the
fourth quarter of 2012. Earnings per share for the fourth quarter
of 2012 were $0.02 higher than the fourth quarter of 2011.
President Hines also reported that annual operating revenues for
2012 increased $818,000 and that net income increased $219,000 as
compared to 2011. Higher revenues were due to an increase in the
Distribution System Improvement Charge (DSIC) and growth in the
customer base, mainly through acquisitions. The DSIC is a surcharge
allowed by the Pennsylvania Public Utility Commission for the
replacement of aging infrastructure. In addition to the
increased revenue, lower expenses for power, the provision for
doubtful accounts, tank remediation and insurance contributed to
higher 2012 net income. Earnings per share for 2012 were $0.01
higher than 2011.
During the year, the Company invested $11.5 million in capital
projects for upgrades to its water treatment and enterprise
software systems, as well as various scheduled replacements of
infrastructure. During 2012, the Company replaced or relined over
40,000 feet of pipe to improve its distribution system, reduce
ongoing expenses, and improve customer service. In addition,
the Company invested $661,000 in the acquisitions of water and
wastewater systems. President Hines reported that York Water
plans to invest approximately $14.1 million in 2013 and $14.0
million in 2014, excluding acquisitions, for expansion and
improvements to its pipes, facilities, and dams 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 |
|
2012 |
2011 |
2012 |
2011 |
Operating Revenues |
$10,401 |
$10,081 |
$41,447 |
$40,629 |
Net Income |
$2,398 |
$2,123 |
$9,303 |
$9,084 |
Average Number of Common Shares
Outstanding |
12,893 |
12,772 |
12,847 |
12,734 |
Basic Earnings Per Common Share |
$0.18 |
$0.16 |
$0.72 |
$0.71 |
Dividends Paid Per Common Share |
$0.1383 |
$0.1336 |
$0.5391 |
$0.5266 |
President Hines also reported that York Water's Board of
Directors has authorized a share repurchase program granting the
Company authority to repurchase up to 1.2 million shares of the
Company's common stock from time to time. Under the stock
repurchase program, the Company may repurchase shares in the open
market or through privately negotiated transactions. The timing and
actual number of shares repurchased under the program will depend
on a variety of factors including price, corporate and regulatory
requirements, and other market and business conditions, and will be
at the discretion of the Company. All open market purchases
made through the program are expected to comply with Securities and
Exchange Commission Rule 10b-18. York Water may suspend or
discontinue the repurchase program at any time. President
Hines commented, "the share repurchase program reflects our
confidence in the Company and demonstrates our commitment to
providing value to our shareholders."
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.
The York Water Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5589
CONTACT: Jeffrey R. Hines, President
jeffh@yorkwater.com
or
Kathleen M. Miller, Chief Financial Officer
kathym@yorkwater.com
717-845-3601
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