York Water Company Reports 3rd Quarter and Nine Months Earnings and Closing on Two Water Acquisitions
November 07 2012 - 8:33AM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's financial results for the third
quarter and the first nine months of 2012.
President Hines reported that third quarter operating revenues
of $11,025,000 increased $574,000 and net income of $2,760,000
increased $396,000 compared to the third quarter of 2011. Earnings
per share of $0.22 for the three-month period increased $0.03
compared to the same period last year.
President Hines also reported that the first nine months
operating revenues of $31,046,000 increased $498,000, and net
income of $6,905,000 decreased $56,000 compared to the first nine
months of 2011. Higher revenues were due to an increase in the
Distribution System Improvement Charge (DSIC) and growth in the
customer base. Expense reductions, including a lower provision for
doubtful accounts, reduced power costs and lower life insurance
expenses, were offset by higher income taxes and increased expenses
for depreciation, distribution system maintenance, wages and
benefits. The DSIC is a surcharge allowed by the Pennsylvania
Public Utility Commission for the replacement of aging
infrastructure. Earnings per share of $0.54 for the nine-month
period decreased $0.01 compared to the same period last year.
During the first nine months of 2012, the Company invested $8.8
million in capital projects for upgrades to its water treatment and
enterprise software systems, as well as various scheduled
replacements of aging infrastructure. In addition, the Company
invested $463,000 in the acquisitions of water and wastewater
systems during the first nine months of 2012. The Company estimates
it will invest an additional $2.8 million in 2012 for acquisitions,
expansion and improvements to its systems and infrastructure to
continue providing excellent customer service, ensuring 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 September
30 |
|
In 000's (except per
share) |
|
Quarter |
Nine
Months |
|
2012 |
2011 |
2012 |
2011 |
Operating Revenues |
$ 11,025 |
$ 10,451 |
$ 31,046 |
$ 30,548 |
Net Income |
$ 2,760 |
$ 2,364 |
$ 6,905 |
$ 6,961 |
Average Number of Common Shares
Outstanding |
12,861 |
12,748 |
12,832 |
12,722 |
Basic Earnings Per Common Share |
$ 0.22 |
$ 0.19 |
$ 0.54 |
$ 0.55 |
Dividends Paid Per Common Share |
$ 0.1336 |
$ 0.1310 |
$ 0.4008 |
$ 0.3930 |
On August 16, 2012, the Company completed the acquisition and
began operating the water system of York Starview, LP in York
County, Pennsylvania. The acquisition resulted in the addition of
approximately 240 new water customers with purchase price and
acquisition costs to date of approximately $133,000.
On October 12, 2012, the Company completed the acquisition of
the water system of Section A Water Corporation in Adams County,
Pennsylvania. The Company began operating the existing system as a
satellite location on October 15, 2012. The acquisition resulted in
the addition of approximately 100 new water customers at a purchase
price of approximately $135,000. One additional water acquisition
is expected to close during the first quarter of 2013.
The York Water Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5589
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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