Middlesex Water Reports Third Quarter Financial Results

Friday, 30. October 2020 21:10

Third Quarter Highlights

  • Revenues Increased 5.7%.
  • Net Income Rises by 14.6%

ISELIN, N.J., Oct. 30, 2020 (GLOBE NEWSWIRE) -- Middlesex Water Company (“Middlesex” or the “Company”) (NASDAQ:MSEX) a provider of water and wastewater services, today reported diluted earnings per share of $0.72, for the three months ended September 30, 2020, as compared to $0.66 per share in the same period in 2019.

Third Quarter Results
The Company reported consolidated operating revenues of $39.9 million for the three months ended September 30, 2020, as compared to $37.8 million for the same period in 2019. The $2.2 million increase in operating revenues was largely driven by higher water consumption by our retail and wholesale contract customers in the Middlesex System in New Jersey, customer growth in our Delaware systems and additional non-regulated revenues realized from our new contract, which commenced July 1, 2020, to operate and maintain the Borough of Highland Park, NJ water and wastewater systems.

“As the pandemic continues, our employees remain focused on delivering operational excellence and ensuring quality utility services in which our customers can have the greatest confidence,” said Middlesex Chairman, President and Chief Executive Officer Dennis W. Doll. “In addition to maintaining practices that help keep our employees and customers safe, we’re collaborating with state officials to help mitigate the financial consequences of the pandemic to customers as related to their water service and their ability to pay any outstanding balances,” added Doll. “We were also honored to be recognized recently with two awards – Middlesex Water Company was named a 2020 Top New Jersey Workplace and our Delaware subsidiary, Tidewater Utilities, Inc, was named a 2020 Superstar in Business. We thank our employees for their efforts that contribute to our winning company culture. Their dedication and commitment becomes even more apparent and critical during these uncertain times,” added Doll.

Operation and maintenance expenses for the three months ended September 30, 2020 increased $0.3 million from the same period in 2019. The increase was related to higher variable production costs due to increased customer water consumption and higher actuarially-determined employee benefit plan expenses.

Net income for the three months ended September 30, 2020 was $12.7 million, a $1.6 million increase from the same period in 2019. Diluted earnings per share were $0.72 and $0.66 for the three months ended September 30, 2020 and 2019, respectively.

Nine Month Results
Consolidated operating revenues for the nine months ended September 30, 2020 were $107.0 million, an increase of $5.1 million from the same period in 2019, primarily due to increased customer water consumption in our Middlesex and Delaware systems and customer growth in Delaware. For the nine months ended September 30, 2020, diluted earnings per share were $1.71 as compared to $1.55 for the same period in 2019.

Operation and maintenance expenses for the nine months ended September 30, 2020 increased $2.2 million from the same period in 2019 due to higher variable production costs related to increased customer water consumption and higher employee benefit plan expenses.

The benefit from income taxes for the nine months ended September 30, 2020 increased $1.6 million from the same period in 2019, primarily due to the approved regulatory accounting treatment of tax benefits associated with the adoption of Internal Revenue Service tangible property regulations.

Board Declares Dividend

As previously announced on October 21, 2020, our Board of Directors declared a cash dividend of $0.2725 per common share payable December 1, 2020 to shareholders of record as of November 13, 2020.

ABOUT MIDDLESEX WATER COMPANY

Established in 1897, Middlesex Water Company (NASDAQ:MSEX) serves as a trusted provider offering life-sustaining high quality water service for residential, commercial, industrial and fire protection purposes. The Company offers a full range of water, wastewater utility and related services. An investor-owned public utility, Middlesex Water is a professional services provider specializing in municipal and industrial contract operations and water and wastewater system technical operations and maintenance. The company and its subsidiaries form the Middlesex Water family of companies, which collectively serve a population of nearly half a million people in New Jersey and Delaware.  Named a 2020 Top Workplace in New Jersey and a 2020 Superstar in Business in Delaware, Middlesex is diligently focused on meeting and balancing the needs of our employees, customers, and shareholders. We invest in our people, our infrastructure and the communities we serve to support reliable and resilient utility services, economic growth and quality of life.  To learn more, visit our website and follow us on Facebook, Twitter and LinkedIn.

This press release contains “forward‐looking statements” within the meaning of U.S. federal securities laws regarding Middlesex Water Company “MSEX” or the “Company”, its financial condition, and its results of operations that reflect the Company’s current views and information currently available. This information is, where applicable, based on estimates, assumptions and analysis that the Company believes, as of the date hereof, provides a reasonable basis for the information contained herein. Forward‐looking statements can generally be identified by the use of forward‐looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or the negative version of those words or other comparable words and phrases, and include statements relating to the Company’s beliefs or expectations regarding its future performance, strategic plans and cash flows, as well as any other statements that do not directly relate to any historical or current facts. Actual results, performance or achievements may differ materially from forward‐looking statements, and the assumptions on which forward-looking statements are based. There can be no assurance that the information contained herein is reflective of future performance, and investors are cautioned not to place undue reliance on forward‐looking statements as a predictor of future performance. Unless otherwise specified, all information contained in this press release speaks only as of the date hereof. The Company undertakes no duty to update or revise the information contained herein, publicly or otherwise, whether as a result of new information, future events or otherwise.

Media Contact:
Bernadette Sohler, Vice President – Corporate Affairs
bsohler@middlesexwater.com
(732) 638-7549



         
         
 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,
   2020   2019   2020   2019 
         
Operating Revenues$ 39,920  $37,769  $ 106,965  $101,859 
         
Operating Expenses:       
 Operations and Maintenance 17,949   17,669   52,761   50,569 
 Depreciation 4,721   4,246   13,798   12,415 
 Other Taxes 4,073   3,871   11,318   10,913 
         
 Total Operating Expenses 26,743   25,786   77,877   73,897 
         
Operating Income 13,177   11,983   29,088   27,962 
         
Other Income (Expense):       
 Allowance for Funds Used During Construction 953   871   2,871   2,030 
 Other Income (Expense), net 444   (4)  1,164   (142)
         
Total Other Income, net 1,397   867   4,035   1,888 
         
Interest Charges 1,906   1,996   5,521   4,984 
         
Income before Income Taxes 12,668   10,854   27,602   24,866 
         
Income Taxes (69)  (265)  (2,516)  (952)
         
Net Income 12,737   11,119   30,118   25,818 
         
Preferred Stock Dividend Requirements 30   30   90   102 
         
Earnings Applicable to Common Stock$ 12,707  $11,089  $ 30,028  $25,716 
         
Earnings per share of Common Stock:       
 Basic$ 0.73  $0.67  $ 1.72  $1.56 
 Diluted$ 0.72  $0.66  $ 1.71  $1.55 
         
Average Number of       
 Common Shares Outstanding :       
 Basic 17,466   16,610   17,455   16,520 
 Diluted 17,581   16,757   17,570   16,673 



 

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