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Middlesex Water Announces Third Quarter 2024 Financial Results

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Middlesex Water Company (NASDAQ:MSEX) reported strong Q3 2024 financial results with diluted earnings per share of $0.80, up 42.9% year-over-year. Net income reached $14.3 million, increasing by $4.3 million compared to 2023. Quarterly revenues grew by $8.4 million to $55.1 million, driven by NJBPU-approved base rate increases and increased customer demand. The company increased its quarterly dividend by 4.62% to $0.34 per share. Operations and maintenance expenses rose by $2.8 million due to increased legal costs, enhanced water treatment processes, and higher labor and energy costs.

Middlesex Water Company (NASDAQ:MSEX) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con utili per azione diluiti di $0.80, in aumento del 42.9% rispetto all'anno precedente. Il reddito netto ha raggiunto $14.3 milioni, aumentando di $4.3 milioni rispetto al 2023. I ricavi trimestrali sono cresciuti di $8.4 milioni, arrivando a $55.1 milioni, grazie agli aumenti delle tariffe base approvati da NJBPU e alla maggiore domanda dei clienti. L'azienda ha aumentato il suo dividendo trimestrale del 4.62% a $0.34 per azione. Le spese per operazioni e manutenzione sono aumentate di $2.8 milioni a causa dell'aumento delle spese legali, dei processi di trattamento dell'acqua migliorati e maggiori costi di lavoro e energia.

Middlesex Water Company (NASDAQ:MSEX) informó sobre resultados financieros sólidos para el tercer trimestre de 2024, con ganancias por acción diluidas de $0.80, un aumento del 42.9% en comparación con el año anterior. El ingreso neto alcanzó $14.3 millones, lo que representa un aumento de $4.3 millones en comparación con 2023. Los ingresos trimestrales crecieron en $8.4 millones, alcanzando $55.1 millones, impulsados por aumentos en las tarifas base aprobados por NJBPU y una mayor demanda de los clientes. La compañía aumentó su dividendo trimestral en un 4.62% a $0.34 por acción. Los gastos operativos y de mantenimiento crecieron en $2.8 millones debido a costos legales más altos, procesos de tratamiento de agua mejorados y mayores costos de mano de obra y energía.

Middlesex Water Company (NASDAQ:MSEX)는 2024년 3분기 강력한 재무 실적을 보고했습니다. 희석 주당 순이익은 $0.80로, 전년 대비 42.9% 증가했습니다. 순이익은 $14.3 백만에 달해 2023년 대비 $4.3 백만 증가했습니다. 분기 매출은 $8.4 백만 증가한 $55.1 백만으로, NJBPU 승인을 받은 기준 요금 인상과 고객 수요 증가에 힘입었습니다. 회사는 분기 배당금을 4.62% 인상하여 주당 $0.34로 결정했습니다. 운영 및 유지보수 비용은 법률 비용 증가, 향상된 수질 처리 프로세스, 그리고 노동 및 에너지 비용 상승으로 인해 $2.8 백만 증가했습니다.

Middlesex Water Company (NASDAQ:MSEX) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un bénéfice dilué par action de $0.80, en hausse de 42,9% par rapport à l'année précédente. Le revenu net a atteint $14.3 millions, soit une augmentation de $4.3 millions par rapport à 2023. Les revenus trimestriels ont augmenté de $8.4 millions pour atteindre $55.1 millions, grâce à des augmentations de tarifs de base approuvées par le NJBPU et à une demande accrue des clients. La société a augmenté son dividende trimestriel de 4,62% à $0.34 par action. Les dépenses d'exploitation et de maintenance ont augmenté de $2.8 millions en raison de l'augmentation des frais juridiques, des processus de traitement de l'eau améliorés et des coûts de main-d'œuvre et d'énergie plus élevés.

Middlesex Water Company (NASDAQ:MSEX) hat starke Finanzresultate für das dritte Quartal 2024 berichtet, mit verwässerten Erträgen pro Aktie von $0.80, was einem Anstieg von 42,9% im Jahresvergleich entspricht. Der Nettogewinn erreichte $14.3 Millionen, was einem Anstieg von $4.3 Millionen im Vergleich zu 2023 entspricht. Die Quartalsumsätze wuchsen um $8.4 Millionen auf $55.1 Millionen, angetrieben durch von NJBPU genehmigte Grundtariferhöhungen und eine steigende Kundennachfrage. Das Unternehmen erhöhte seine vierteljährliche Dividende um 4,62% auf $0.34 pro Aktie. Die Betriebs- und Instandhaltungskosten stiegen um $2.8 Millionen aufgrund gestiegener Rechtskosten, verbesserter Wasseraufbereitungsprozesse sowie höherer Arbeits- und Energiekosten.

Positive
  • Q3 EPS increased 42.9% to $0.80
  • Net income grew by $4.3M to $14.3M
  • Quarterly revenues increased by $8.4M to $55.1M
  • 4.62% dividend increase, marking 52nd consecutive year of increases
  • Filed for additional $1.1M annual revenue through DSIC rate application
  • Delaware subsidiary filed for $10.3M (25.66%) rate increase
Negative
  • Operations and maintenance expenses increased by $2.8M
  • Higher energy and chemical costs due to increased water demand
  • Increased legal, financial and regulatory matter costs

Insights

The Q3 2024 results showcase robust financial performance with significant growth metrics. Diluted EPS increased by 42.9% to $0.80, while net income jumped by $4.3 million to $14.3 million. Revenue growth of $8.4 million to $55.1 million was driven by NJBPU-approved rate increases and higher customer demand.

The company's strategic positioning is strengthening with multiple rate case activities. The pending Delaware rate case seeking $10.3 million (25.66%) increase and New Jersey's DSIC application for $1.1 million annual revenues indicate strong growth potential. The 4.62% dividend increase, marking 52 consecutive years of increases, demonstrates financial stability and shareholder commitment.

  • Diluted earnings per share of $0.80 for the quarter, an increase of 42.9% in comparison to the prior year
  • Common dividend increased by 4.62%.

ISELIN, N.J., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Middlesex Water Company (“Middlesex” or the “Company”) (NASDAQ:MSEX) a provider of water and wastewater services, today announced third quarter financial results.

Third Quarter Operating Results

Diluted earnings per share were $0.80 and $0.56 for the three months ended September 30, 2024, and 2023, respectively. Net income for the quarter was $14.3 million, a $4.3 million increase when compared to the same period in 2023.

Revenues for the quarter ended September 30, 2024, increased $8.4 million to $55.1 million, compared to the same period in 2023. Middlesex System revenues increased $6.1 million due primarily to the New Jersey Board of Public Utilities (NJBPU)-approved base rate increase effective March 1, 2024, and increased customer demand. In our Delaware System, revenues increased $2.1 million due to customer growth and increased customer demand.

Operations and maintenance expenses for the quarter increased $2.8 million over the same period in 2023 due to increased legal, financial and regulatory matter costs, an enhanced water treatment process at Middlesex’s Park Avenue Plant, increased labor costs due to wage increases and higher energy and chemical costs due to increased water demand.

Year to Date Operating Results

Net income for the nine months ended September 30, 2024, was $35.5 million, a $9.8 million increase when compared to the same period in 2023. Diluted earnings per share were $1.98 and $1.44 for the nine months ended September 30, 2024, and 2023, respectively. A significant amount of the increase is attributable to the implementation of the NJBPU-approved base rate increases in our Middlesex System and the one-time recovery of previously incurred depreciation, operating and carrying costs of $6.8 million associated with the prior period construction and operation of the water treatment facilities at Middlesex’s Park Avenue Wellfield. As part of the NJBPU-approved Middlesex base rate case, which included the impact of the previously disclosed PFOA lawsuit settlement, the NJBPU authorized these operating and carrying costs to be recovered after Middlesex first applied settlement proceeds to the cost of the water treatment facilities at Middlesex’s Park Avenue Wellfield.

Revenues for the nine months ended September 30, 2024, were $144.8 million, an increase of $17.1 million over the same period in 2023. Middlesex System revenues increased $12.9 million primarily due to the NJBPU-approved base rate increase which took effect March 1, 2024, and increased customer demand. In our Delaware System, revenues increased $3.5 million due to customer growth and increased customer demand. Non-regulated revenues increased $0.3 million primarily due to higher supplemental contract services.

Operations and maintenance expenses for the nine months ended September 30, 2024, increased $3.6 million over the same period in 2023, primarily due to increased legal, financial and regulatory matter costs, an enhanced water treatment process at Middlesex’s Park Avenue Plant, increased labor costs due to wage increases and higher energy costs due to increased water demand.

Middlesex President and Chief Executive Officer Nadine Leslie said, “Our strong financial results are a reflection of our commitment to operational excellence, delivering safe and reliable service to our customers and working constructively with regulators to recover prudent infrastructure investments in a timely manner. We also increased our common dividend for the 52nd consecutive year by 4.62%,” added Leslie.

Rate Activity

New Jersey
In October 2024, Middlesex filed a second Distribution System Improvement Charge (DSIC) rate application that is expected to result in $1.1 million of annual revenues. In addition, in October 2024, Middlesex filed a petition with the NJBPU seeking approval to set a Purchased Water Adjustment Clause tariff rate to recover additional costs of $0.6 million for the purchase of treated water from a non-affiliated water utility regulated by the NJBPU.

Delaware
In August 2024, Tidewater Utilities, Inc. (Tidewater) filed an application with the Delaware Public Service Commission (DEPSC) to increase its general rates for water service. In the application, Tidewater seeks an overall increase in annual operating revenue of $10.3 million or 25.66% over current revenue. Effective October 30, 2024, Tidewater received approval of the DEPSC to suspend its DSIC rate and implement an interim rate increase, which is expected to result in approximately $2.5 million of annual revenues, subject to refund pending the outcome of the rate case application.

In September 2024, the DEPSC approved Tidewater’s petition to recover up to $2.1 million of costs associated with Tidewater’s obligation to identify and inventory lead service lines throughout Tidewater’s service area, as required by federal law and Delaware regulations. Through September 30, 2024, Tidewater has spent $1.7 million, which is included in Regulatory Assets and will be recovered through a surcharge mechanism.

Board Declares Dividend, Announces 4.62% Dividend Increase

We previously announced that our Board of Directors declared a quarterly cash dividend of $0.34 per common share payable on December 2, 2024, to shareholders of record as of November 15, 2024. This represents a 4.62% increase from the $0.325 per share dividend last declared in July 2024. This increase raises the annual dividend rate to $1.36 from $1.30 per share of common stock. Middlesex has paid cash dividends in varying amounts continually since 1912. Information about Middlesex Water’s Investment Plan (Direct Share Purchase and Sale and Dividend Reinvestment Plan) is available at https://shareholder.broadridge.com/middlesexwater/

About Middlesex Water Company
Established in 1897, Middlesex Water Company 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. The company and its subsidiaries form the Middlesex Water family of companies, which collectively serve a population of half a million people in New Jersey and Delaware. Middlesex Water is focused on meeting 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.

This press release contains “forward‐looking statements” within the meaning of U.S. federal securities laws reflecting the current beliefs or expectations of Middlesex Water Company “MSEX” or the “Company” regarding its future performance, its financial condition, its strategic plans and cash flows, its results of operations as well as any other statements that do not directly relate to any historical or current facts. These statements reflect the Company’s current views and information currently available. This information is based on estimates, assumptions, and analysis that the Company believes, as of the date hereof, provide 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.” 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, whether as a result of new information, future events or otherwise.

Contact:
Bernadette Sohler, Vice President – Corporate Affairs
bsohler@middlesexwater.com

Jennifer Ketschke, Director of Treasury and Investor Relations
jketschke@middlesexwater.com

 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,
  2024   2023   2024   2023 
        
Operating Revenues$ 55,100  $46,715  $ 144,770  $127,672 
        
Operating Expenses:       
Operations and Maintenance 25,359   22,581   67,649   64,042 
Depreciation 6,309   6,376   18,010   18,546 
Other Taxes 5,931   4,936   16,430   14,104 
        
Total Operating Expenses 37,599   33,893   102,089   96,692 
        
Operating Income 17,501   12,822   42,681   30,980 
        
Other Income:       
Allowance for Funds Used During Construction 354   496   787   2,162 
Other Income, net 1,614   936   9,202   3,124 
        
Total Other Income, net 1,968   1,432   9,989   5,286 
        
Interest Charges 3,411   3,518   10,721   9,364 
        
Income before Income Taxes 16,058   10,736   41,949   26,902 
        
Income Taxes 1,739   746   6,402   1,143 
        
Net Income 14,319   9,990   35,547   25,759 
        
Preferred Stock Dividend Requirements 29   30   89   90 
        
Earnings Applicable to Common Stock$ 14,290  $9,960  $ 35,458  $25,669 
        
Earnings per share of Common Stock:       
Basic$ 0.80  $0.56  $ 1.99  $1.45 
Diluted$ 0.80  $0.56  $ 1.98  $1.44 
        
Average Number of Common Shares Outstanding :       
Basic 17,838   17,758   17,828   17,708 
Diluted 17,952   17,873   17,943   17,823 
        

FAQ

What was Middlesex Water's (MSEX) earnings per share in Q3 2024?

Middlesex Water reported diluted earnings per share of $0.80 in Q3 2024, representing a 42.9% increase from $0.56 in Q3 2023.

How much did Middlesex Water (MSEX) increase its dividend in 2024?

Middlesex Water increased its quarterly dividend by 4.62% from $0.325 to $0.34 per share, raising the annual dividend rate to $1.36 from $1.30.

What was MSEX's revenue in Q3 2024?

Middlesex Water's revenue in Q3 2024 was $55.1 million, an increase of $8.4 million compared to the same period in 2023.

How much rate increase did Tidewater request in Delaware for MSEX in 2024?

Tidewater filed for a 25.66% rate increase in Delaware, seeking an overall increase in annual operating revenue of $10.3 million.

Middlesex Water Co

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Utilities - Regulated Water
Water Supply
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ISELIN