York Water Company Reports 3rd Quarter and Nine Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported its third quarter earnings for 2021, showing a revenue increase to $14.5 million, up $246,000 from Q3 2020. Net income rose to $4.8 million, an increase of $90,000. For the first nine months, revenues reached $41.4 million, a $931,000 increase, with net income at $13 million, up $95,000. Basic and diluted EPS remained stable at $0.36 for Q3 and $0.99 year-to-date. The company invested $27.4 million in infrastructure improvements and forecasts an additional $7.6 million this year.

Positive

• Third quarter operating revenues increased to $14.5 million, up $246,000 year-over-year.
• Net income for Q3 rose to $4.8 million, a $90,000 increase from the previous year.
• Year-to-date revenues reached $41.4 million, increasing by $931,000 compared to the previous year.
• Strong investment in infrastructure with $27.4 million spent and an additional $7.6 million planned for 2021.

Negative

• Increased operation and maintenance expenses partially offset revenue gains.
• Depreciation costs were also higher, impacting overall profitability.

YORK, Pa., Nov. 05, 2021 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President, JT Hand, announced the Company's financial results for the third quarter and the first nine months of 2021.

President Hand reported that third quarter operating revenues of $14,503,000 increased $246,000 and net income of $4,794,000 increased $90,000 compared to the third quarter of 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. Basic and Diluted Earnings per share were $0.36 for the three-month period, the same as the third quarter of last year.

President Hand also reported that the first nine months operating revenues of $41,385,000 increased $931,000 and net income of $12,983,000 increased $95,000 compared to the first nine months of 2020 which included a non-recurring gain on life insurance of $515,000 not repeated in 2021. 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. Income taxes decreased due to higher deductions from the IRS tangible property regulations. Basic and Diluted Earnings per share were $0.99 for the nine-month period, the same as the first nine months of last year.

During the first nine months of 2021, the Company invested $27.4 million in expenditures for an upgrade to the enterprise software system as well as various replacements and improvements to infrastructure. The Company estimates it will invest an additional $7.6 million in 2021, excluding acquisitions, for additional main extensions, an elevated water tank, 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.

	Period Ended September 30
	In 000's (except per share)
	Quarter					Nine Months
		2021			2020			2021			2020
Operating Revenues	$	14,503		$	14,257		$	41,385		$	40,454
Net Income	$	4,794		$	4,704		$	12,983		$	12,888
Average Number of Common Shares Outstanding		13,084			13,032			13,070			13,021
Basic and Diluted Earnings Per Common Share	$	0.36		$	0.36		$	0.99		$	0.99
Dividends Declared Per Common Share	$	0.1874		$	0.1802		$	0.5622		$	0.5406

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 third quarter 2021 earnings results for York Water Company (YORW)?

The York Water Company reported third quarter 2021 revenues of $14.5 million and a net income of $4.8 million.

How did York Water Company's performance compare for the first nine months of 2021 (YORW)?

For the first nine months of 2021, York Water Company achieved revenues of $41.4 million and a net income of $13 million.

What is the Basic and Diluted EPS for York Water Company (YORW) in Q3 2021?

The Basic and Diluted Earnings per share for Q3 2021 were both $0.36.

How much did York Water Company (YORW) invest in infrastructure improvements in 2021?

York Water Company invested $27.4 million in infrastructure improvements during the first nine months of 2021.