York Water Company Reports 2013 Results and Water Acquisitions
March 11 2014 - 9:30AM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's fourth quarter and 2013 earnings.
President Hines reported that operating revenues for the fourth
quarter of 2013 increased $264,000 and net income increased
$240,000 over the fourth quarter of 2012. Higher operating revenues
and lower retirement expenses offset higher income taxes and
increased depreciation and power expenses, resulting in higher net
income for the fourth quarter of 2013. Earnings per share for the
fourth quarter of 2013 were $0.03 higher than the fourth quarter of
2012.
President Hines also reported that annual operating revenues for
2013 increased $936,000, and that net income increased $351,000
when compared to 2012. Higher operating revenues were due to an
increase in the Distribution System Improvement Charge (a
Pennsylvania Public Utility Commission approved mechanism for
replacement of aging infrastructure), full-year wastewater revenue,
and growth in the customer base, mainly due to prior year
acquisitions. Higher revenues and lower retirement expenses due to
an increase in the discount rate were partially offset by increased
depreciation and power expenses, resulting in higher net income
compared to 2012. Earnings per share for 2013 were $0.03 higher
than 2012 and dividends per share rose by almost $0.02 compared to
2012.
During the year, the Company invested $9.9 million in capital
projects for routine items, upgrades to its water treatment system,
and to replace a portion of its infrastructure. During 2013, the
Company replaced or relined over 41,000 feet of pipe to improve its
distribution system, reduce ongoing expenses, and improve customer
service. President Hines reported that York Water plans to invest
approximately $12.5 million in 2014 and $16.9 million in 2015, for
expansion and improvements to its pipes, filtration system,
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 |
|
2013 |
2012 |
2013 |
2012 |
Operating Revenues |
$10,665 |
$10,401 |
$42,383 |
$41,447 |
Net Income |
$2,638 |
$2,398 |
$9,654 |
$9,303 |
Average Number of Common Shares
Outstanding |
12,948 |
12,893 |
12,928 |
12,847 |
Basic Earnings Per Common Share |
$0.21 |
$0.18 |
$0.75 |
$0.72 |
Dividends Declared Per Common Share |
$0.1431 |
$0.1383 |
$0.5580 |
$0.5391 |
On January 6, 2014 and January 10, 2014, the Company signed
agreements to purchase the water assets of Forest Lakes Water
Association in York County, Pennsylvania, and Lincoln Estates
Mobile Home Park and Lincoln Development Co. in Adams County,
Pennsylvania, respectively. Completion of both acquisitions is
contingent upon receiving approval from all required regulatory
authorities. The Company expects to begin serving
approximately 270 new customers in the second quarter of 2014.
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
Kathleen M. Miller, Chief Financial Officer
kathym@yorkwater.com
717-845-3601
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