The York Water Company Reports Three Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported first-quarter 2021 earnings with operating revenues of $13.08 million, a $204,000 increase year-over-year. However, net income declined by $297,000 to $3.71 million, impacted by a prior-year non-recurring gain. Earnings per share (EPS) decreased to $0.28, down $0.03. The company invested $7.4 million in infrastructure improvements and plans to allocate an additional $26.1 million in 2021. Increased income was offset by higher operation costs, despite growth in customer base and billing services.

Positive

• Operating revenues rose by $204,000 to $13.08 million.
• Investment of $7.4 million in infrastructure improvements during Q1 2021.
• Forecast to invest an additional $26.1 million in 2021 for growth and upgrades.

Negative

• Net income dropped by $297,000 to $3.71 million.
• Earnings per share decreased by $0.03 to $0.28 compared to Q1 2020.
• Higher operation and maintenance expenses affected profitability.

YORK, Pa., May 04, 2021 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President, JT Hand, announced the Company's financial results for the first quarter of 2021.

President Hand reported that first quarter operating revenues of $13,081,000 increased $204,000, but net income of $3,705,000 decreased $297,000 compared to the first quarter of 2020 primarily due to a non-recurring gain on life insurance of $515,000 in the first quarter of 2020 not repeated in 2021. Basic and Diluted Earnings per share of $0.28 for the three-month period decreased $0.03 compared to the same period last year.   Increased revenues were primarily due to growth in the customer base and higher billing and revenue collection services. Per capita consumption decreased slightly, but residential demand increased. The increased income was 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 2021, the Company invested $7.4 million in construction expenditures for various replacements and improvements to infrastructure. The Company estimates it will invest an additional $26.1 million in 2021, excluding acquisitions, for additional main extensions, an elevated water tank, an upgrade to the enterprise software system, completion of a wastewater treatment plant, 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)
			2021			2020
	Operating Revenues	$	13,081		$	12,877
	Net Income	$	3,705		$	4,002
	Average Number of Common Shares Outstanding		13,056			13,010
	Basic and Diluted Earnings per Common Share	$	0.28		$	0.31
	Dividends Declared Per Common Share	$	0.1874		$	0.1802

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 York Water Company's first quarter 2021 operating revenues?

York Water Company's operating revenues for the first quarter of 2021 were $13.08 million.

How much did York Water's net income decrease in Q1 2021?

Net income for Q1 2021 decreased by $297,000 to $3.71 million.

What is the EPS for York Water Company in the first quarter of 2021?

The earnings per share (EPS) for York Water Company in Q1 2021 was $0.28.

What infrastructure investments did York Water Company make in 2021?

York Water Company invested $7.4 million in infrastructure improvements and plans an additional $26.1 million investment in 2021.