The York Water Company Reports Three Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported strong financial results for Q1 2022, with operating revenues increasing by $1,159,000 to $14,240,000 and net income rising by $154,000 to $3,859,000 compared to Q1 2021. Basic and diluted earnings per share reached $0.29, up from $0.28 in the previous year. Revenue growth stems from an expanded customer base and the Distribution System Improvement Charge for infrastructure upgrades. However, this increase was partially offset by higher operation, maintenance expenses, and depreciation costs.

Positive

• Operating revenues increased by $1,159,000 to $14,240,000.
• Net income grew by $154,000 to $3,859,000.
• Basic and diluted earnings per share rose to $0.29 from $0.28.
• Successful wastewater acquisition contributed to revenue growth.
• Investment of $7.5 million in capital projects during Q1.

Negative

• Higher operation and maintenance expenses impacted overall profitability.
• Increased depreciation costs affecting net income.

YORK, Pa., May 03, 2022 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President, JT Hand, announced the Company's financial results for the first quarter of 2022.

President Hand reported that first quarter operating revenues of $14,240,000 increased $1,159,000 and net income of $3,859,000 increased $154,000 compared to the first quarter of 2021. Basic and Diluted Earnings per share of $0.29 for the three-month period increased $0.01 compared to the same period last year.   Increased revenues were primarily due to growth in the customer base from the West Manheim Township wastewater acquisition and the utilization of the Distribution System Improvement Charge (DSIC). 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 first three months of 2022, the Company invested $7.5 million in capital projects for routine items and wastewater treatment plant construction as well as various replacements and improvements to infrastructure. The Company estimates it will invest an additional $35.3 million in 2022, excluding acquisitions, for armoring and replacing the spillway of the Lake Williams dam, additional main extensions, and routine 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.

	Three Months Ended March 31 In 000's (except per share)
	2022		2021
Operating Revenues	$14,240		$13,081
Net Income	$3,859		$3,705
Average Number of Common Shares Outstanding	13,106		13,056
Basic and Diluted Earnings per Common Share	$0.29		$0.28
Dividends Declared Per Common Share	$0.1949		$0.1874

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.

FAQ

What were the Q1 2022 earnings results for York Water Company (YORW)?

York Water Company reported Q1 2022 operating revenues of $14,240,000, a net income of $3,859,000, and earnings per share of $0.29.

How did York Water Company's revenues change in Q1 2022?

Revenues increased by $1,159,000 compared to Q1 2021, primarily due to customer base growth.

What capital investments did York Water Company make in Q1 2022?

The company invested $7.5 million in capital projects for routine items and wastewater treatment construction.

What is the financial outlook for York Water Company (YORW) considering the Q1 results?

While revenues increased, higher operation and maintenance costs may pose challenges for future profitability.