Aqua America Reports Earnings for the Third Quarter
Net Income Increases More Than 30 Percent
December Dividend Increased 7 Percent
In August, the Board of Directors declared a 6.9 percent dividend
increase of
Operating revenues for the first nine months of 2010 totaled
To date in 2010, the company has received rate awards in
In the quarter, operations and maintenance expenses increased 6.5
percent compared to the same period in 2010. DeBenedictis added, "The
higher-than-normal expense growth in the quarter is due to non-cash
charges resulting from the write-off of previously deferred expenses
related to rate filings and expenses associated with increased water
use, which was up more than 9 percent over the same quarter last year as
a result of the favorable weather compared to 2009. Management remains
focused on continuing to control expenses and expects to continue to
improve its operations and maintenance expense-to-revenue ratio
(efficiency ratio), which is more than 200 basis points less for the 12
months ending
The company invested
Aqua America's weighted average cost of fixed-rate long-term debt was
5.43 percent, and the company has
So far in 2010,
Aqua America's conference call with financial analysts will take place
on
This release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including,
among others, management's ability to earn a fair return on its
investments. the anticipated growth in revenue and earnings,
management's ability to manage expense growth, the timing and impact of
pending and planned rate cases and the amount of such increases, the
expected improvement in the operations and maintenance expense to
revenue ratio, the amount of future capital investments by the Company
and the impact of those investments, possible investments in future
solar projects, the Company's ability to access capital markets at
favorable rates, the Company's continuation of its
growth-through-acquisition model, and the expected number of
acquisitions to be completed in 2010. There are important factors that
could cause actual results to differ materially from those expressed or
implied by such forward-looking statements including: general economic
business conditions; housing and customer growth trends; unfavorable
weather conditions; the success of certain cost containment initiatives;
the extent to which rate increase requests are granted and the timing of
rate awards; changes in regulations or regulatory treatment;
availability and the cost of capital; disruptions in the credit markets;
the success of growth initiatives; and other factors discussed in our
Annual Report on Form 10-K for the fiscal year ended
WTRF
Aqua America, Inc. and Subsidiaries | ||||||||||||
Selected Operating Data | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended |
Nine Months Ended |
|||||||||||
|
September 30, |
September 30, |
||||||||||
2010 |
2009 |
2010 |
2009 |
|||||||||
Operating revenues | $ | 207,797 | $ | 180,826 | $ | 546,758 | $ | 502,646 | ||||
Net income attributable to common shareholders | $ | 43,751 | $ | 33,470 | $ | 95,117 | $ | 77,694 | ||||
Basic net income per common share | $ | 0.32 | $ | 0.25 | $ | 0.70 | $ | 0.57 | ||||
Diluted net income per common share | $ | 0.32 | $ | 0.25 | $ | 0.69 | $ | 0.57 | ||||
Basic average common shares outstanding | 137,095 | 135,975 | 136,798 | 135,673 | ||||||||
Diluted average common shares outstanding | 137,394 | 136,260 | 137,112 | 136,006 | ||||||||
Aqua America, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Quarter Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
||||||||||||||
2010 |
2009 |
2010 |
2009 |
|||||||||||||
Operating revenues | $ | 207,797 | $ | 180,826 | $ | 546,758 | $ | 502,646 | ||||||||
Cost & expenses: | ||||||||||||||||
Operations and maintenance | 72,968 | 68,488 | 209,879 | 204,026 | ||||||||||||
Depreciation | 27,431 | 25,436 | 80,433 | 76,795 | ||||||||||||
Amortization | 3,629 | 3,029 | 10,115 | 8,848 | ||||||||||||
Taxes other than income taxes | 14,182 | 12,418 | 39,985 | 35,892 | ||||||||||||
Total | 118,210 | 109,371 | 340,412 | 325,561 | ||||||||||||
Operating income | 89,587 | 71,455 | 206,346 | 177,085 | ||||||||||||
Other expense (income): | ||||||||||||||||
Interest expense, net | 19,150 | 17,256 | 56,084 | 50,693 | ||||||||||||
Allowance for funds used during construction | (1,077 | ) | (747 | ) | (4,079 | ) | (1,940 | ) | ||||||||
Gain on sale of other assets | (291 | ) | (162 | ) | (2,330 | ) | (375 | ) | ||||||||
Income before income taxes | 71,805 | 55,108 | 156,671 | 128,707 | ||||||||||||
Provision for income taxes | 28,054 | 21,638 | 61,554 | 51,013 | ||||||||||||
Net income attributable to common shareholders | $ | 43,751 | $ | 33,470 | $ | 95,117 | $ | 77,694 | ||||||||
Net income attributable to common shareholders | $ | 43,751 | $ | 33,470 | $ | 95,117 | $ | 77,694 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Unrealized holding gain (loss) on investments | 272 | (142 | ) | 1,174 | 127 | |||||||||||
Reclassification adjustment for (gain) loss reported in net income | - | - | (1,330 | ) | 5 | |||||||||||
Comprehensive income | $ | 44,023 | $ | 33,328 | $ | 94,961 | $ | 77,826 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.25 | $ | 0.70 | $ | 0.57 | ||||||||
Diluted | $ | 0.32 | $ | 0.25 | $ | 0.69 | $ | 0.57 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic |
137,095 | 135,975 | 136,798 | 135,673 | ||||||||||||
Diluted | 137,394 | 136,260 | 137,112 | 136,006 | ||||||||||||
Aqua America, Inc. and Subsidiaries | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In thousands of dollars) | ||||||
(Unaudited) | ||||||
September 30, | December 31, | |||||
2010 |
2009 |
|||||
Net property, plant and equipment | $ | 3,397,300 | $ | 3,227,294 | ||
Current assets | 149,165 | 121,571 | ||||
Regulatory assets and other assets | 366,817 | 413,732 | ||||
$ | 3,913,282 | $ | 3,762,597 | |||
Total equity | $ | 1,139,565 | $ | 1,109,464 | ||
Long-term debt, excluding current portion | 1,450,338 | 1,386,557 | ||||
Current portion of long-term debt and loans payable | 82,277 | 87,064 | ||||
Other current liabilities | 124,301 | 113,943 | ||||
Deferred credits and other liabilities | 1,116,801 | 1,065,569 | ||||
$ | 3,913,282 | $ | 3,762,597 | |||
Director, Investor
Relations
610-645-1191
bjdingerdissen@aquaamerica.com
or
Director, Communications
610-645-1095
dpalston@aquaamerica.com
Source:
News Provided by Acquire Media