The York Water Company Reports Strong 2015 Results
March 09 2016 - 7:46PM
The York Water Company’s (NASDAQ:YORW) President, Jeffrey R. Hines,
announced today the Company’s 2015 and fourth quarter earnings.
President Hines reported that annual operating
revenues for 2015 increased $1,189,000, and that net income
increased $1,005,000 when compared to 2014. 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 an emergency interconnection
with a neighboring municipality to provide water. The higher
revenues combined with lower retirement expenses offset higher
operating expenses and a reduction in income due to a prior year
land sale. Earnings per share for 2015 were $0.08 higher than
2014 and dividends per share rose by $0.025 compared to 2014.
During the year, the Company invested $13.8
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 2015, the Company replaced or relined
over 42,000 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 acquisitions in 2015.
President Hines also reported that operating
revenues for the fourth quarter of 2015 increased $118,000, but
that net income declined by $35,000 compared to the fourth quarter
of 2014. The decrease in net income resulted from an
adjustment in the fourth quarter of 2014 of $1,342,000 to record
the full-year 2014 impact of the IRS tangible property
regulations. This caused a significant reduction in income
tax expense during the fourth quarter of 2014. In 2015, the
impact of the IRS tangible property regulations was recorded as
earned throughout the year. Earnings per share for the fourth
quarter of 2015 were $0.01 lower than the fourth quarter of 2014,
also due to the 2014 adjustment.
President Hines reported that York Water plans
to invest approximately $20.1 million in 2016 and $13.1 million in
2017, 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 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Operating Revenues |
$ |
11,617 |
|
$ |
11,499 |
|
$ |
47,089 |
|
$ |
45,900 |
|
Net Income |
$ |
3,516 |
|
$ |
3,551 |
|
$ |
12,489 |
|
$ |
11,484 |
|
Average Number of Common
Shares Outstanding |
|
12,794 |
|
|
12,812 |
|
|
12,832 |
|
|
12,880 |
|
Basic Earnings Per Common
Share |
$ |
0.27 |
|
$ |
0.28 |
|
$ |
0.97 |
|
$ |
0.89 |
|
Dividends Declared Per
Common Share |
$ |
0.1555 |
|
$ |
0.1495 |
|
$ |
0.6040 |
|
$ |
0.5788 |
|
In 2016, the Company expects to close on and
begin operating its previously announced wastewater system
acquisitions of SYC and West York Borough, and water system
acquisitions including Crestview and Westwood. In total,
these system acquisitions are expected to add approximately 2,050
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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