SOURCE: Middlesex Water Company

Middlesex Water Company

October 25, 2012 16:47 ET

Middlesex Water Company Reports Third Quarter 2012 Operating Results

ISELIN, NJ--(Marketwire - Oct 25, 2012) - Middlesex Water Company (NASDAQ: MSEX) ("Middlesex" or the "Company") today reported third quarter operating revenues of $32.4 million compared to $28.7 million for the same period in 2011. Net income for the quarter increased to $6.1 million from $5.1 million in the same quarter of 2011. Earnings per basic and diluted share for the quarter were $0.39 and $0.38 per share, respectively, compared to $0.33 and $0.32, respectively, for the same period in 2011. 

Third Quarter Operating Results

Operating revenues for the third quarter increased $3.7 million from the same period in 2011. Revenues in our Middlesex and Tidewater systems increased $2.9 million, primarily due to base rate increases that went into effect in June 2012 and July 2012, respectively. Also contributing to the results were increased revenues of $0.6 million related to our operating contracts with the Borough of Avalon, New Jersey and the Eagle Point Biological Wastewater Treatment facility, also in New Jersey. Both operations commenced in 2012. In addition, revenues increased $0.2 million from scheduled fixed fee increases through our contract with the City of Perth Amboy, New Jersey. 

Operation and maintenance expenses for the three months ended September 30, 2012 increased $0.9 million from the same period in 2011. This was attributable primarily to an increase in postretirement benefit plan expenses.

Nine Month Operating Results

For the nine months ended September 30, 2012, revenues were $83.3 million, as compared to $78.8 million for the same period in 2011. Revenues in our Middlesex system increased $1.1 million, primarily due to the effect of the base rate increase granted in July 2012. Revenues in our Tidewater system increased $2.1 million, primarily due to increased connection fees as well as interim and final rate increases that went into effect in November 2011 and June 2012, respectively. Non-regulated contract operations revenues increased by $1.2 million for new and existing contracts. 

Operation and maintenance expenses increased $2.0 million from the same period in 2011, primarily due to higher postretirement benefit plan expenses. 

Net income increased to $11.7 million from $11.4 million from the same period in 2011. Basic and diluted earnings per share for the nine months were $0.73, compared to $0.72 in 2011. 

Quarterly Dividend Increased for 40th Consecutive Year

On October 23, 2012, the Company's Board of Directors approved an increase in the quarterly cash dividend on common stock to $0.1875 from $0.1850. The new dividend rate is payable December 3, 2012 to shareholders of record as of November 15, 2012. This dividend increase raises the annual dividend to $0.75 from $0.74 per share of common stock and represents the 40th consecutive year of annual dividend increases and the 100th year of dividend payments.

About Middlesex Water Company

Middlesex Water Company, organized in 1897, provides regulated and unregulated water and wastewater utility services primarily in New Jersey and Delaware through various subsidiary companies. For additional information regarding Middlesex Water Company including information about the Company's Dividend Reinvestment and Common Stock Purchase Plan, visit the Company's Web site at www.middlesexwater.com 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.

MIDDLESEX WATER COMPANY  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
(Unaudited)  
(In thousands except per share amounts)  
                         
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2012     2011     2012     2011  
                                 
Operating Revenues   $ 32,353     $ 28,671     $ 83,300     $ 78,769  
                                 
Operating Expenses:                                
  Operations and Maintenance     15,600       14,667       44,740       42,760  
  Depreciation     2,629       2,421       7,759       7,250  
  Other Taxes     3,281       3,067       8,871       8,737  
                                 
    Total Operating Expenses     21,510       20,155       61,370       58,747  
                                 
Operating Income     10,843       8,516       21,930       20,022  
                                 
Other Income (Expense):                                
  Allowance for Funds Used During Construction     110       235       383       626  
  Other Income     106       759       423       1,118  
  Other Expense     (4 )     (20 )     (155 )     (180 )
                                 
Total Other Income, net     212       974       651       1,564  
                                 
Interest Charges     1,808       1,703       4,941       4,631  
                                 
Income before Income Taxes     9,247       7,787       17,640       16,955  
                                 
Income Taxes     3,109       2,644       5,970       5,557  
                                 
Net Income     6,138       5,143       11,670       11,398  
                                 
Preferred Stock Dividend Requirements     52       52       155       155  
                                 
Earnings Applicable to Common Stock   $ 6,086     $ 5,091     $ 11,515     $ 11,243  
                                 
Earnings per share of Common Stock:                                
  Basic   $ 0.39     $ 0.33     $ 0.73     $ 0.72  
  Diluted   $ 0.38     $ 0.32     $ 0.73     $ 0.72  
                                 
Average Number of                                
  Common Shares Outstanding:                                
  Basic     15,741       15,622       15,717       15,599  
  Diluted     16,004       15,885       15,980       15,862  
                                 
Cash Dividends Paid per Common Share   $ 0.1850     $ 0.1825     $ 0.5550     $ 0.5475  
                                 
                                 
   

Contact Information

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