The York Water Company Reports Improved 2014 Results
March 10 2015 - 9:30AM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's fourth quarter and 2014 earnings.
President Hines reported that operating revenues for the fourth
quarter of 2014 increased $834,000 and net income increased
$913,000 over the fourth quarter of 2013. Higher operating revenues
and lower income tax expense offset higher retirement expenses and
increased health insurance expenses resulting in higher net income
for the fourth quarter of 2014. A fourth quarter adjustment of
$1,342,000 to record the 2014 impact of the IRS tangible property
regulations caused a significant reduction in income tax expense
despite the increase in revenue. Earnings per share for the fourth
quarter of 2014 were $0.07 higher than the fourth quarter of
2013.
President Hines also reported that annual operating revenues for
2014 increased $3,517,000, and that net income increased $1,830,000
when compared to 2013. Higher operating revenues were primarily due
to: increased water and wastewater rates, as approved by the
Pennsylvania Public Utility Commission effective February 28, 2014;
growth in the customer base, mainly due to acquisitions; and lower
income taxes due to the implementation of the IRS tangible property
regulations. The higher revenues offset increased wages,
retirement, and other expenses resulting in significantly higher
net income compared to 2013. Earnings per share for 2014 were
$0.14 higher than 2013 and dividends per share rose by $0.02
compared to 2013.
During the year, the Company invested $14.1 million in capital
projects for upgrades to its water treatment system, new water
mains, routine items, and to replace a portion of its
infrastructure. During 2014, the Company replaced or relined over
41,000 feet of pipe to improve its distribution system, reduce
ongoing expenses, and improve customer service. In addition to
these capital projects, the Company invested $0.4 million in water
and wastewater acquisitions in 2014.
President Hines reported that York Water plans to invest
approximately $14.1 million in 2015 and $15.8 million in 2016, both
exclusive of acquisitions which have not yet been approved, for
design and construction of a new untreated water pumping station
and force main, 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 |
|
2014 |
2013 |
2014 |
2013 |
Operating Revenues |
$11,499 |
$10,665 |
$45,900 |
$42,383 |
Net Income |
$3,551 |
$2,638 |
$11,484 |
$9,654 |
Average Number of Common Shares
Outstanding |
12,812 |
12,948 |
12,880 |
12,928 |
Basic Earnings Per Common Share |
$0.28 |
$0.21 |
$0.89 |
$0.75 |
Dividends Declared Per Common Share |
$0.1495 |
$0.1431 |
$0.5788 |
$0.5580 |
The Company expects to close on and begin operating its
previously announced wastewater system acquisition of SYC, and
water system acquisitions including Paradise, The Meadows, and
Newberry Farms in 2015. In total, these system acquisitions
are expected to add approximately 350 new customers.
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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