Middlesex Water Company Announces Second Quarter 2016 Financial Results
August 02 2016 - 12:43PM
Middlesex Water Company (the "Company" or “Middlesex”),
(Nasdaq:MSEX), a provider of water and wastewater and related
services primarily in New Jersey and Delaware, today announced
operating results for the quarter ended June 30, 2016.
Second Quarter Operating ResultsConsolidated
operating revenues for the quarter ended June 30, 2016 increased
$1.1 million to $32.7 million as compared to the same period in
2015. Net income climbed to $5.9 million, up from $5.1
million in 2015. Basic and diluted earnings per share were
$0.36 for the quarter ended June 30, 2016, up from $0.31 for the
same period in 2015.
Revenues in the Company’s Middlesex System in New Jersey
increased $1.3 million from the same period in 2015, primarily due
to the New Jersey Board of Public Utilities approved rate increase
implemented in August 2015, higher weather-driven customer demand
in our regulated water utilities in New Jersey and higher water
demand from contract customers. Revenues from contract
operations increased $0.2 million due to higher supplemental
service revenues earned under our contracts to operate
municipally-owned systems in New Jersey and Delaware.
Revenues in our Delaware regulated water utility, Tidewater
Utilities, Inc. (“Tidewater”) decreased $0.4 million due to lower
weather-driven customer demand for water, partially offset by the
addition of new customers.
Operation and maintenance expenses for the second quarter
decreased $0.4 million from the same period in 2015. Employee
benefit expenses decreased $0.4 million, largely due to lower
retirement plan costs resulting from a higher
actuarially-determined discount rate than in the prior year.
Variable water production costs decreased $0.3 million, due to
higher raw water quality in our Middlesex System. Decreased
cold weather water main break activity resulted in lower costs of
$0.2 million in our Middlesex system. Labor costs increased
$0.3 million, due to company-wide higher average labor rates and
lower capitalized labor costs at Tidewater. Contract
operations expenses costs increased $0.1 million due to higher
expenditures for billable supplemental services under our operating
contracts serving municipal customers.
Middlesex Chairman, President and Chief Executive Officer Dennis
W. Doll said, “Our facilities continue to stand ready to deliver
quality water and wastewater services through the hot, dry summer
weather, which is reflected in these second quarter results.
In the second quarter, we also began a $12.0 million project to
replace aging infrastructure in the Township of Edison and the City
of South Amboy, New Jersey. Our Company was honored to be
recognized in June as a finalist in the Third Annual New York Stock
Exchange Governance, Risk & Compliance Leadership Awards for
Best-In-House Legal Team at a Small to- Mid-Cap Company and for
Distinguished General Counsel. Also in June, our General
Counsel Jay L. Kooper was recognized by NJBIZ as a 2016 General
Counsel of the Year Finalist. We’re grateful for this
independent validation of the high quality of our team’s continuing
efforts.”
Six Month Operating ResultsConsolidated
operating revenues for the six months ended June 30, 2016 were
$63.3 million, an increase of $2.9 million from the same period in
2015, due mostly to the aforementioned August 2015 rate increase in
our Middlesex System. For the six months ended June 30,
2016, basic and diluted earnings per share increased to $0.65, as
compared to $0.54 and $0.53, respectively, for the same period in
2015.
Quarterly Dividend Declared The Company’s Board
of Directors declared a quarterly cash dividend of $0.19875 per
share, payable September 1, 2016 to common shareholders as of
August 12, 2016.
About Middlesex Water CompanyMiddlesex Water
Company, organized in 1897, is an investor-owned water and
wastewater utility, serving customers in central and southern New
Jersey, Delaware and Pennsylvania. For additional information
regarding Middlesex Water Company or its Direct Share Purchase and
Sale and Dividend Reinvestment Plan, visit
http://investors.middlesexwater.com or call (732)
638-7549.
This release contains forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, our long-term strategy and
expectations, the status of our acquisition program, the impact of
our acquisitions, the impact of current and projected rate requests
and the impact of our capital program on our environmental
compliance. There are important factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements including: general economic
business conditions, unfavorable weather conditions, the success of
certain cost containment initiatives, changes in regulations or
regulatory treatment, availability and the cost of capital, the
success of growth initiatives and other factors discussed in our
filings with the Securities and Exchange Commission.
MIDDLESEX WATER
COMPANY |
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
|
(Unaudited) |
|
(In thousands except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ |
32,725 |
|
|
$ |
31,666 |
|
|
$ |
63,304 |
|
|
$ |
60,446 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Operations and Maintenance |
|
15,789 |
|
|
|
16,229 |
|
|
|
31,617 |
|
|
|
32,317 |
|
|
Depreciation |
|
3,180 |
|
|
|
2,982 |
|
|
|
6,317 |
|
|
|
5,930 |
|
|
Other Taxes |
|
3,428 |
|
|
|
3,220 |
|
|
|
6,740 |
|
|
|
6,280 |
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
22,397 |
|
|
|
22,431 |
|
|
|
44,674 |
|
|
|
44,527 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
10,328 |
|
|
|
9,235 |
|
|
|
18,630 |
|
|
|
15,919 |
|
|
|
|
|
|
|
|
|
|
|
Other
Income (Expense): |
|
|
|
|
|
|
|
|
Allowance for Funds Used During
Construction |
|
119 |
|
|
|
103 |
|
|
|
180 |
|
|
|
185 |
|
|
Other Income |
|
25 |
|
|
|
43 |
|
|
|
73 |
|
|
|
82 |
|
|
Other Expense |
|
(7 |
) |
|
|
(18 |
) |
|
|
(26 |
) |
|
|
(83 |
) |
|
|
|
|
|
|
|
|
|
|
Total Other Income, net |
|
137 |
|
|
|
128 |
|
|
|
227 |
|
|
|
184 |
|
|
|
|
|
|
|
|
|
|
|
Interest Charges |
|
1,436 |
|
|
|
1,496 |
|
|
|
2,413 |
|
|
|
2,554 |
|
|
|
|
|
|
|
|
|
|
|
Income
before Income Taxes |
|
9,029 |
|
|
|
7,867 |
|
|
|
16,444 |
|
|
|
13,549 |
|
|
|
|
|
|
|
|
|
|
|
Income Taxes |
|
3,110 |
|
|
|
2,778 |
|
|
|
5,735 |
|
|
|
4,825 |
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
5,919 |
|
|
|
5,089 |
|
|
|
10,709 |
|
|
|
8,724 |
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock Dividend Requirements |
|
36 |
|
|
|
36 |
|
|
|
72 |
|
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Applicable to Common Stock |
$ |
5,883 |
|
|
$ |
5,053 |
|
|
$ |
10,637 |
|
|
$ |
8,652 |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share of Common Stock: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.36 |
|
|
$ |
0.31 |
|
|
$ |
0.65 |
|
|
$ |
0.54 |
|
|
Diluted |
$ |
0.36 |
|
|
$ |
0.31 |
|
|
$ |
0.65 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
|
Average
Number of |
|
|
|
|
|
|
|
|
Common
Shares Outstanding : |
|
|
|
|
|
|
|
|
Basic |
|
16,271 |
|
|
|
16,149 |
|
|
|
16,252 |
|
|
|
16,141 |
|
|
Diluted |
|
16,427 |
|
|
|
16,305 |
|
|
|
16,408 |
|
|
|
16,297 |
|
|
|
|
|
|
|
|
|
|
|
Cash
Dividends Paid per Common Share |
$ |
0.1988 |
|
|
$ |
0.1925 |
|
|
$ |
0.3975 |
|
|
$ |
0.3850 |
|
|
|
|
|
|
|
|
|
|
|
Contact:
Bernadette Sohler, Vice President – Corporate Affairs
Middlesex Water Company,
1500 Ronson Road
Iselin, New Jersey 08830
(732) 638-7549
www.middlesexwater.com
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