York Water Company Reports 3rd Quarter and Nine Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported third quarter operating revenues of $14,257,000, a rise of $577,000, with net income increasing by $221,000 to $4,704,000. Earnings per share (EPS) also rose to $0.36. For the first nine months, operating revenues reached $40,454,000 (+$1,895,000), with net income growing to $12,888,000 (+$1,875,000) and EPS at $0.99. The growth was driven by increased customer base and per capita consumption, although higher operational expenses partially offset gains. The company plans to invest $12.2 million in infrastructure improvements.

Positive

• Third quarter operating revenues increased to $14,257,000 (+$577,000)
• Net income rose to $4,704,000 (+$221,000)
• EPS for Q3 increased to $0.36 (+$0.01)
• First nine months revenues rose to $40,454,000 (+$1,895,000)
• Net income for nine months increased to $12,888,000 (+$1,875,000)
• EPS for nine months climbed to $0.99 (+$0.14)
• Plans to invest $12.2 million in infrastructure improvements

Negative

• Higher operation and maintenance expenses impacted net income
• Depreciation and income taxes increased due to lower deductions from IRS regulations
• Lower Distribution System Improvement Charge (DSIC) after reset to zero

YORK, Pa., Nov. 06, 2020 (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 2020.

President Hand reported that third quarter operating revenues of $14,257,000 increased $577,000 and net income of $4,704,000 increased $221,000 compared to the third quarter of 2019. Earnings per share of $0.36 for the three-month period increased $0.01 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, depreciation, and income taxes due to lower deductions from the IRS tangible property regulations. Interest expense decreased due to lower interest rates.

President Hand also reported that the first nine months operating revenues of $40,454,000 increased $1,895,000 and net income of $12,888,000 increased $1,875,000 compared to the first nine 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, depreciation, and income taxes due to higher taxable income partially offset by higher deductions from the IRS tangible property regulations. Interest expense decreased due to lower interest rates. Earnings per share of $0.99 for the nine-month period increased $0.14 compared to the same period last year.

During the first nine months of 2020, the Company invested $16.0 million in construction expenditures for replacement of a standpipe as well as various replacements and improvements to infrastructure. In addition, the Company invested $1,158,000 in the acquisition of two wastewater systems.   The Company estimates it will invest an additional $12.2 million in 2020, excluding acquisitions, for reimbursement for the Amblebrook development water and wastewater infrastructure, 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 September 30
	In 000's (except per share)
	Quarter				Nine Months
		2020		2019		2020		2019
Operating Revenues	$	14,257	$	13,680	$	40,454	$	38,559
Net Income	$	4,704	$	4,483	$	12,888	$	11,013
Average Number of Common Shares Outstanding		13,032		12,969		13,021		12,956
Basic and Diluted Earnings Per Common Share	$	0.36	$	0.35	$	0.99	$	0.85
Dividends Declared Per Common Share	$	0.1802	$	0.1733	$	0.5406	$	0.5199

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 financial results for York Water Company in the third quarter of 2020?

In Q3 2020, York Water Company reported operating revenues of $14,257,000 and net income of $4,704,000, with EPS at $0.36.

How much did York Water Company earn in the first nine months of 2020?

For the first nine months of 2020, York Water Company reported operating revenues of $40,454,000 and net income of $12,888,000, with EPS at $0.99.

What is the projected investment by York Water Company for infrastructure in 2020?

York Water Company plans to invest an additional $12.2 million in infrastructure improvements in 2020.

What factors contributed to the revenue growth for York Water Company?

Revenue growth was primarily due to increased per capita residential consumption and an expanding customer base.

How did operational expenses affect York Water Company's profits?

Operational expenses increased, partially offsetting revenue gains and impacting net income.