SOURCE: Middlesex Water Company

Middlesex Water Company

August 02, 2012 14:41 ET

Middlesex Water Company Reports Financial Results for Second Quarter

ISELIN, NJ--(Marketwire - Aug 2, 2012) - Middlesex Water Company (NASDAQ: MSEX) ("Middlesex" or the "Company") today reported operating revenues for the quarter ended June 30, 2012 of $27.4 million, up from $26.1 million for the same period in 2011. Net income increased $0.1 million to $3.7 million. Basic and diluted earnings per share were $0.23, remaining the same amount as in 2011. For the six months ended June 30, 2012, revenues were $50.9 million, as compared to $50.1 for the same period in 2011, and net income decreased to $5.4 million, from $6.2 million for the same period in 2011.

Second Quarter Operating Results
Operating revenues for the three months ended June 30, 2012 increased $1.3 million or 4.9%, from the same period in 2011, primarily due to increased sales of $0.8 million in our Delaware system, which includes Tidewater Utilities, Inc. ("Tidewater"), primarily due to the 10.49% interim rate increase that went into effect in November 2011 and increased connection fees. Revenues in the Company's Middlesex system in New Jersey increased $0.1 million, reflecting increased commercial, industrial and residential customer demand for water as well as implementation of a purchased water adjustment clause in August 2011. Scheduled increases for our contract operations services led to additional revenue of $0.2 million.

Operation and maintenance expenses for the three months ended June 30, 2012 increased $0.7 million from the same period in 2011. This increase was primarily due to an additional $0.6 million in postretirement benefits plan expenses, primarily due to changes in actuarial assumptions in our retirement plans. Favorable weather conditions, and consequently fewer main breaks, contributed to a decrease in main repair costs of $0.1 million in the second quarter of 2012. Additionally, labor costs decreased $0.2 million, primarily due to higher capitalized payroll and less overtime resulting from fewer main breaks. 

Middlesex Water Company Chairman, President and Chief Executive Officer Dennis W. Doll said, "We welcome increased demand by our customers for water and stand ready to meet peak demands for the remainder of the summer season. In addition, we are pleased with the timely approval by the Delaware Public Service Commission in June 2012 of a $3.9 million increase in base water rates for our Delaware subsidiary Tidewater; and the approval by the New Jersey Board of Public Utilities in July 2012 for a $8.1 million increase in base rates for Central New Jersey customers of our Middlesex system," added Doll. 

Six Month Operating Results
Consolidated operating revenues for the six months ended June 30, 2012 increased $0.8 million from the same period in 2011. Revenues in our Delaware system increased $1.2 million, primarily due to interim rate increases and increased connection fees. Scheduled increases for our contract operations services led to additional revenue of $0.3 million. Revenues, however, from our Middlesex system customers were down $0.7 million, primarily due to lower demand. Operation and maintenance expenses increased $1.0 million from the same period in 2011. This was primarily attributable to increased employee benefits related costs. 

For the six months ended June 30, 2012, basic and diluted earnings per share decreased to $0.35, as compared to $0.40 for the same period in 2011. Net income for the six months ended June 30, 2012 decreased $0.7 million from the same period in 2011. 

Company Quarterly Dividend 
The Company's Board of Directors declared a quarterly cash dividend of $0.1850 per share, payable September 3, 2012 to common shareholders as of August 15, 2012. The Company has paid cash dividends in varying amounts continually since 1912 and has increased the dividend for 39 consecutive years. Middlesex Water has a Dividend Reinvestment Plan under which dividends and optional cash payments can be used to purchase additional shares of Common stock.

About Middlesex Water Company
Middlesex Water Company is a provider of water, wastewater and related services, primarily in New Jersey and Delaware. Organized in 1897, the Company provides regulated and unregulated water and wastewater utility services through various subsidiary companies. For additional information regarding Middlesex Water Company, visit the Company's Web site at or call (732) 634-1500.

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.

(In thousands except per share amounts)  
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  
Operating Revenues   $ 27,401     $ 26,102     $ 50,947     $ 50,098  
Operating Expenses:                                
  Operations and Maintenance     14,765       14,062       29,140       28,093  
  Depreciation     2,582       2,417       5,130       4,829  
  Other Taxes     2,844       2,885       5,590       5,670  
    Total Operating Expenses     20,191       19,364       39,860       38,592  
Operating Income     7,210       6,738       11,087       11,506  
Other Income (Expense):                                
  Allowance for Funds Used During Construction     137       197       273       391  
  Other Income     125       202       317       359  
  Other Expense     (11 )     (111 )     (151 )     (160 )
Total Other Income, net     251       288       439       590  
Interest Charges     1,779       1,714       3,133       2,928  
Income before Income Taxes     5,682       5,312       8,393       9,168  
Income Taxes     1,957       1,687       2,861       2,913  
Net Income     3,725       3,625       5,532       6,255  
Preferred Stock Dividend Requirements     51       51       103       103  
Earnings Applicable to Common Stock   $ 3,674     $ 3,574     $ 5,429     $ 6,152  
Earnings per share of Common Stock:                                
  Basic   $ 0.23     $ 0.23     $ 0.35     $ 0.40  
  Diluted   $ 0.23     $ 0.23     $ 0.35     $ 0.40  
Average Number of Common Shares Outstanding :                                
  Basic     15,716       15,598       15,704       15,587  
  Diluted     15,979       15,861       15,967       15,850  
Cash Dividends Paid per Common Share   $ 0.1850     $ 0.1825     $ 0.3700     $ 0.3650  

Contact Information

  • Contact:
    Bernadette Sohler
    Vice President - Corporate Affairs
    Middlesex Water Company
    1500 Ronson Road
    Iselin, New Jersey 08830
    (732) 638-7549