The York Water Company Reports 2021 Annual and Fourth Quarter Results

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported its 2021 financial results, showcasing operating revenues of $55,119,000, an increase of $1,267,000 over 2020. Net income reached $16,984,000, up by $386,000. Basic and diluted earnings per share rose to $1.30, a $0.03 increase. The company plans investments of $44 million in 2022 and $50 million in 2023 to enhance infrastructure and customer service. Factors like increased operating expenses partially offset revenue growth.

Positive

• Operating revenues increased by $1,267,000 to $55,119,000 in 2021.
• Net income rose by $386,000 to $16,984,000 in 2021.
• Basic and diluted earnings per share increased by $0.03 to $1.30.
• Dividends per share rose 4% compared to 2020.
• Investment of $34.4 million in capital projects and acquisitions enhanced infrastructure.

Negative

• Increased operation and maintenance expenses partially offset revenue growth.
• Higher depreciation costs impacted net income.

YORK, Pa., March 08, 2022 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President and CEO, JT Hand, announced the Company's 2021 financial results.

President Hand reported that 2021 operating revenues of $55,119,000 increased $1,267,000 and net income of $16,984,000 increased $386,000 compared to 2020 which included a non-recurring gain on life insurance of $515,000 not repeated in 2021. Basic and Diluted Earnings per share of $1.30 for 2021 increased $0.03 compared to 2020. Dividends per share rose 4% compared to 2020. Increased revenues were primarily due to the utilization of the Distribution System Improvement Charge (DSIC) and growth in the customer base. The DSIC is a Pennsylvania Public Utility Commission allowed charge that water utilities collect from customers for the replacement of aging infrastructure. The increased revenue was partially offset by higher operation and maintenance expenses and depreciation. Income taxes decreased due to higher deductions from the IRS tangible property regulations.

During the year, the Company invested $34.4 million in capital projects for routine items, an upgrade to the enterprise software system, and an elevated water tank, as well as various replacements and improvements to infrastructure. In addition, the Company invested $12.0 million in the acquisition of the West Manheim Township wastewater collection system, adding approximately 1,800 new wastewater customers. During 2021, the Company replaced approximately 61,000 feet of pipe to improve its distribution system, reduce ongoing expenses, and improve customer service.

President Hand also reported that for the fourth quarter of 2021 operating revenues increased $336,000 and net income increased $291,000 compared to the fourth quarter of 2020. Basic and Diluted Earnings per share of $0.31 for the fourth quarter of 2021 increased $0.03 compared to the same period last year. Increased revenues were primarily due to the utilization of the DSIC and growth in the customer base. The increased revenue was partially offset by higher operation and maintenance expenses and depreciation.

President Hand reported that York Water plans to invest approximately $44 million in 2022 and $50 million in 2023, excluding acquisitions, for additional main extensions, dam improvements, an elevated water tank, water treatment plant construction, and improvements to its pipes, service lines, and other facilities to ensure a safe, adequate, and reliable supply of drinking water and to maintain proper handling and disposal of wastewater for the Company’s growing customer base.

	Period Ended December 31
	In 000's (except per share)
	Quarter						Twelve Months
		2021			2020			2021			2020
Operating Revenues	$	13,734		$	13,398		$	55,119		$	53,852
Net Income	$	4,001		$	3,710		$	16,984		$	16,598
Average Number of Common Shares Outstanding		13,096			13,044			13,076			13,034
Basic and Diluted Earnings Per Common Share	$	0.31		$	0.28		$	1.30		$	1.27
Dividends Declared Per Common Share	$	0.1949		$	0.1874		$	0.7571		$	0.7280

This news release may contain forward-looking statements regarding the Company’s operational and financial expectations. These statements are based on currently available information and are subject to risks, uncertainties, and other events which could cause the Company’s actual results to be materially different from the results described in this statement. The Company undertakes no duty to update any forward-looking statement.

Contact:	JT Hand, President and CEO
	jth@yorkwater.com, 717-718-7554
or	Matthew E. Poff, Chief Financial Officer
	matthewp@yorkwater.com, 717-718-7549
Phone:	717-845-3601

FAQ

What were York Water Company's 2021 operating revenues?

York Water Company's 2021 operating revenues were $55,119,000, increasing by $1,267,000 compared to 2020.

How much did net income increase for York Water Company in 2021?

Net income for York Water Company increased by $386,000 to reach $16,984,000 in 2021.

What were the earnings per share for York Water Company in 2021?

The basic and diluted earnings per share for York Water Company in 2021 were $1.30, an increase of $0.03 from 2020.

What is the planned investment for York Water Company in 2022?

York Water Company plans to invest approximately $44 million in 2022 for infrastructure improvements and expansions.

What were the reasons for the revenue increase for York Water Company in 2021?

The revenue increase was primarily due to the Distribution System Improvement Charge (DSIC) and growth in the customer base.