York Water Company Reports Three Months Earnings and Announces Its Fourth Acquisition of 2012
May 08 2012 - 9:35AM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's financial results for the first
quarter of 2012.
President Hines reported that first quarter operating revenues
of $9,669,000 increased $24,000, and net income of $1,941,000
decreased $198,000 compared to the first quarter of 2011. Modestly
higher water revenues due to an increased customer base were offset
by increases in wages, distribution system maintenance and
depreciation. In addition, the first quarter of 2011 benefited from
life insurance proceeds, while the first quarter of 2012 did not,
and tax law changes were not as favorable as 2011. Earnings
per share for the three-month period decreased $0.02 compared to
the same period last year.
During the first three months of 2012, the Company invested $2.1
million in capital projects for upgrades to its enterprise software
system and its distribution system, as well as various replacements
of aging infrastructure. The Company estimates it will invest an
additional $10.0 million in 2012 for expansion and improvements to
its systems and infrastructure to continue providing excellent
customer service and ensuring a safe, adequate, and reliable supply
of drinking water for the Company's growing customer base.
|
Three Months
Ended March 31 In 000's (except
per share) |
|
2012 |
2011 |
Operating Revenues |
$9,669 |
$9,645 |
Net Income |
$1,941 |
$2,139 |
Average Number of Common Shares
Outstanding |
12,802 |
12,696 |
Basic Earnings per Common Share |
$0.15 |
$0.17 |
Dividends Paid Per Common Share |
$0.1336 |
$0.1310 |
In April, the Company signed an agreement to purchase the water
assets of the Windy Brae Mobile Home Park in York County,
Pennsylvania at a purchase price of $18,000. The Company expects to
close on this acquisition that serves 135 customers in the third
quarter. With this acquisition, York Water has now announced
three water and one wastewater acquisition in 2012 and expects to
begin serving these approximately 715 new customers in the second
and third quarters of 2012 following necessary approvals from
regulatory authorities.
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
Phone 717-845-3601
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