York Water Company Reports 2nd Quarter and Six Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported a 2.1% increase in second quarter operating revenues to $13.32 million and a net income rise of 11.1% to $4.18 million compared to Q2 2019. Earnings per share rose to $0.32, reflecting a $0.04 increase. For the first half of 2020, operating revenues reached $26.20 million, up 5.3% year-over-year. The company invested $9 million in infrastructure improvements and plans an additional $12.6 million for 2020 projects, indicating strong financial management despite rising operational costs.

Positive

• Operating revenues increased by 2.1% to $13.32 million in Q2 2020.
• Net income rose by 11.1% to $4.18 million in Q2 2020.
• Earnings per share increased to $0.32, up $0.04 compared to Q2 2019.
• For the first half of 2020, operating revenues reached $26.20 million, a 5.3% increase.
• The company invested $9 million in infrastructure improvements in the first half of 2020.

Negative

• Higher operation and maintenance expenses and depreciation offset revenue gains.
• Lower Distribution System Improvement Charge (DSIC) after reset to zero.

YORK, Pa., Aug. 06, 2020 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President, JT Hand, announced the Company's financial results for the second quarter and the first six months of 2020.

President Hand reported that second quarter operating revenues of $13,320,000 increased $272,000 and net income of $4,182,000 increased $465,000 compared to the second quarter of 2019.  Earnings per share of $0.32 for the three-month period increased $0.04 compared to the same period last year.  Increased revenues were primarily due to higher per capita residential consumption and growth in the customer base.  The increased revenue was partially offset by higher operation and maintenance expenses and depreciation.  Interest expense decreased due to lower interest rates and income taxes decreased due to higher deductions from the IRS tangible property regulations.

President Hand also reported that the first six months operating revenues of $26,197,000 increased $1,318,000 and net income of $8,184,000 increased $1,654,000 compared to the first six months of 2019.  Increased revenues resulted primarily from the March 1, 2019 rate increase, higher per capita residential consumption, and growth in the customer base partially offset by lower Distribution System Improvement Charge (DSIC) after its reset to zero.  DSIC is a Pennsylvania Public Utility Commission (PPUC) allowed charge that water utilities collect from customers for the replacement of aging infrastructure.  The Company also recognized a non-recurring gain on life insurance.  The increased income was partially offset by higher operation and maintenance expenses and depreciation.  Interest expense decreased due to lower interest rates and income taxes decreased due to higher deductions from the IRS tangible property regulations.  Earnings per share of $0.63 for the six-month period increased $0.13 compared to the same period last year.

During the first six months of 2020, the Company invested $9.0 million in construction expenditures for replacement of a standpipe as well as various replacements and improvements to infrastructure.  The Company estimates it will invest an additional $12.6 million in 2020, excluding acquisitions, for additional main extensions, improvements to a raw water pumping station, expansion 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.

	Period Ended June 30
	In 000's (except per share)
		Quarter				Six Months
		2020		2019		2020		2019
Operating Revenues	$	13,320	$	13,048	$	26,197	$	24,879
Net Income	$	4,182	$	3,717	$	8,184	$	6,530
Average Number of Common Shares Outstanding		13,022		12,956		13,016		12,949
Basic and Diluted Earnings Per Common Share	$	0.32	$	0.28	$	0.63	$	0.50
Dividends Declared Per Common Share	$	0.1802	$	0.1733	$	0.3604	$	0.3466

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
, 717-718-7554

or

Matthew E. Poff, Chief Financial Officer
, 717-718-7549

Phone:717-845-3601

FAQ

What are the Q2 2020 financial results for York Water Company (YORW)?

York Water Company reported Q2 2020 operating revenues of $13.32 million and net income of $4.18 million, with earnings per share at $0.32.

How did York Water Company perform in the first half of 2020?

In the first six months of 2020, York Water's operating revenues were $26.20 million, and net income rose to $8.18 million, with earnings per share at $0.63.

What investments did York Water Company make in 2020?

The company invested $9 million in the first half of 2020 and plans an additional $12.6 million for infrastructure improvements.

What contributed to the revenue increase for York Water Company (YORW)?

Increased revenues were primarily due to higher per capita residential consumption and growth in the customer base.

What were the operational challenges faced by York Water Company in 2020?

Higher operation and maintenance expenses and depreciation partially offset revenue gains in 2020.