Aqua America Reports Full Year 2012 Earnings
Net income Grows 37 Percent
Dividend increased 6 percent during 2012; 22nd increase in 21 years
For the fourth quarter of 2012, revenues increased 12.4 percent to
The
In
DeBenedictis said, "The on-going tax accounting change, which was
approved in the 2012 Pennsylvania rate order, allows
In 2012, the company invested
"We believe that the use of this cash providing tax policy is a
‘win-win' for customers and shareholders as the rate order should allow
As a result of implementing this tax accounting change,
The repair tax deduction is anticipated to continue in 2013 and future
years providing a deduction for each year's qualifying annual capital
expenditures. The repair tax deduction in 2013 is currently projected to
be similar to the level for 2012, but will be recognized over the four
quarters. In addition, the tax benefits recognized in 2013 are expected
to reflect the favorable effects of the first year of a 10-year
amortization of the tax deduction as per the
"2012 was one of the strongest years operationally in my 21 years as CEO. The company continues to adapt itself for the future and as a result, 2012 was also our strongest financial year ever giving us a new base for future results and marking the 20th record year for earnings out of the last 21," said DeBenedictis.
Aqua America's notable 2012 accomplishments, included:
-
Profitably divested the company's
Maine andNew York operations -
Completed the accretive acquisition of American Water's
Ohio property - Completed 18 acquisitions growing customers by 1.9 percent; including three municipal systems
- Improved the operations and maintenance expense to revenue ratio by 150 basis points through cost control programs, including those aimed at reducing purchased water, electricity and fuel expenses
-
Reduced Aqua America's weighted average cost of fixed-rate long-term
debt to 5.06 percent while maintaining Standard & Poor's A+ credit
rating for
Aqua Pennsylvania -
Completed 18 rate cases receiving a total of
$52.9 million in annualized revenue increases -
Received approval for a Distribution System Improvement Charge (DSIC)
in
New Jersey - Commenced profitable operation of a joint venture to provide water service for natural gas drilling
"Looking back in 2012,
In January,
Operating and maintenance expenses for continuing operations were up 5.9
percent for the year and were higher than in prior years due to 2012
expenses related to the acquisition of the Ohio American properties with
no corresponding expenditures in 2011 results. The operations and
maintenance expenses associated with acquisitions in 2012 represented
5.1 percent of the year's 5.9 percent increase, and for the quarter, 6.3
percent of the 8.5 percent increase. The fourth quarter operations and
maintenance expenses included costs associated with implementing the
repair tax accounting change of
As of
During 2012, the company received rate awards in
As of 2012,
The company's conference call with financial analysts will take place on
Investor Relations. The conference call will be archived in the investor
relations section of the company's website for 90 days following the
call. Additionally, the call will be recorded and made available for
replay at
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among
others: the projected impact of the repair tax accounting change on the
company, customers and shareholders; the anticipated continuation and
amount of the repair tax deduction in 2013 and future years; the
estimated size of the 2013 tax deduction and the size of the catch-up
adjustment under the tax repair policy; the estimated revenues from rate
awards received; the company's plans to file future rate increases and
the timing of the impact of such cases; the company's commitment to its
growth-through-acquisition program; the continuation of the company's
capital investment program and the amount of capital investment by the
company planned for 2013; that much of the 2013 capital investment is
projected to be eligible for a tax deduction under the tax repair
policy; the company's intention to use flow through accounting for the
tax benefits under the tax policy; the projected benefits of the work
the company is doing to continue to be the most efficient and profitable
water and wastewater utility; and the anticipated completion of the next
phase of the
WTRF
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Selected Operating Data | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended | Year Ended | |||||||||||
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December 31, |
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2012 |
2011 |
2012 |
2011 |
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Operating revenues |
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Income from continuing operations |
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Income from discontinued operations | 1,421 | 2,499 | 12,476 | 1,386 | ||||||||
Net income attributable to common shareholders |
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Income from continuing operations per share: | ||||||||||||
Basic |
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Diluted |
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Income from discontinued operations per share: | ||||||||||||
Basic |
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Diluted |
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Net income per common share: | ||||||||||||
Basic |
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Diluted |
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Basic average common shares outstanding | 139,884 | 138,478 | 139,361 | 138,182 | ||||||||
Diluted average common shares outstanding | 140,671 | 139,150 | 139,934 |
138,689 |
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Consolidated Statement of Income | |||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||
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December 31, |
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2012 |
2011 |
2012 |
2011 |
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Operating revenues | $ | 187,481 | $ | 166,793 | $ | 757,760 | $ | 687,291 | |||||||||||
Cost & expenses: | |||||||||||||||||||
Operations and maintenance | 72,179 | 66,502 | 271,843 | 256,743 | |||||||||||||||
Depreciation | 29,031 | 25,767 | 111,767 | 103,412 | |||||||||||||||
Amortization | 1,456 | 847 | 5,229 | 4,888 | |||||||||||||||
Taxes other than income taxes | 12,704 | 10,018 | 47,404 | 41,449 | |||||||||||||||
Total | 115,370 | 103,134 | 436,243 | 406,492 | |||||||||||||||
Operating income | 72,111 | 63,659 | 321,517 | 280,799 | |||||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 19,373 | 19,344 | 77,757 | 77,804 | |||||||||||||||
Allowance for funds used during construction | (658 | ) | (1,461 | ) | (4,142 | ) | (7,150 | ) | |||||||||||
Gain on sale of other assets | (264 | ) | (174 | ) | (1,090 | ) | (649 | ) | |||||||||||
Equity earnings in joint venture | (1,045 | ) | - | (1,976 | ) | - | |||||||||||||
Income from continuing operations before income taxes | 54,705 | 45,950 | 250,968 | 210,794 | |||||||||||||||
Provision for income taxes | (10,429 | ) | 14,444 | 66,881 | 69,111 | ||||||||||||||
Income from continuing operations | 65,134 | 31,506 | 184,087 | 141,683 | |||||||||||||||
Discontinued operations: | |||||||||||||||||||
Income from discontinued operations before income taxes | 1,680 | 3,825 | 20,493 | 14,279 | |||||||||||||||
Provision for income taxes | 259 | 1,326 | 8,017 | 12,893 | |||||||||||||||
Income from discontinued operations | 1,421 | 2,499 | 12,476 | 1,386 | |||||||||||||||
Net income attributable to common shareholders | $ | 66,555 | $ | 34,005 | $ | 196,563 | $ | 143,069 | |||||||||||
Income from continuing operations per share: | |||||||||||||||||||
Basic | $ | 0.47 | $ | 0.23 | $ | 1.32 | $ | 1.03 | |||||||||||
Diluted | $ | 0.46 | $ | 0.23 | $ | 1.32 | $ | 1.02 | |||||||||||
Income from discontinued operations per share: | |||||||||||||||||||
Basic | $ | 0.01 | $ | 0.02 | $ | 0.09 | $ | 0.01 | |||||||||||
Diluted | $ | 0.01 | $ | 0.02 | $ | 0.09 | $ | 0.01 | |||||||||||
Net income per common share: | |||||||||||||||||||
Basic | $ | 0.48 | $ | 0.25 | $ | 1.41 | $ | 1.04 | |||||||||||
Diluted | $ | 0.47 | $ | 0.24 | $ | 1.40 | $ | 1.03 | |||||||||||
Average common shares outstanding: | |||||||||||||||||||
Basic | 139,884 | 138,478 | 139,361 | 138,182 | |||||||||||||||
Diluted | 140,671 | 139,150 | 139,934 | 138,689 |
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Condensed Consolidated Balance Sheets | |||||||
(In thousands of dollars) | |||||||
(Unaudited) | |||||||
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2012 | 2011 | ||||||
Net property, plant and equipment | $ | 3,936,163 | $ | 3,530,942 | |||
Current assets | 260,894 | 405,358 | |||||
Regulatory assets and other assets | 661,460 | 412,120 | |||||
$ | 4,858,517 | $ | 4,348,420 | ||||
Total equity | $ | 1,385,892 | $ | 1,251,817 | |||
Long-term debt, excluding current portion | 1,543,954 | 1,395,457 | |||||
Current portion of long-term debt and loans payable | 125,421 | 188,200 | |||||
Other current liabilities | 148,743 | 258,618 | |||||
Deferred credits and other liabilities | 1,654,507 | 1,254,328 | |||||
$ | 4,858,517 | $ | 4,348,420 |
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Net Income Excluding Net Repair Tax Accounting Change and | ||||||
Net State Income Tax Benefit Associated with 100% Bonus Depreciation | ||||||
(In thousands, except per share amounts) | ||||||
(A Non-GAAP, Unaudited Number) | ||||||
Quarter Ended | ||||||
December 31, |
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2012 |
2011 |
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Net income attributable to common shareholders (GAAP financial measure) | $ | 66,555 | $ | 34,005 | ||
Less: | ||||||
Net impact of repair tax accounting change* | 31,005 | - | ||||
Net state income tax benefit associated with 100% bonus depreciation | - | 3,607 | ||||
Income before net repair tax accounting change | ||||||
and net state income tax benefit associated with 100% bonus depreciation | ||||||
(Non-GAAP financial measure) | $ | 35,550 | $ | 30,398 | ||
Net income per common share (GAAP financial measure): | ||||||
Basic | $ | 0.48 | $ | 0.25 | ||
Diluted | $ | 0.47 | $ | 0.24 | ||
Income per common share before net repair tax accounting change and net state income tax | ||||||
benefit associated with 100% bonus depreciation (Non-GAAP financial measure): | ||||||
Basic | $ | 0.25 | $ | 0.22 | ||
Diluted | $ | 0.25 | $ | 0.22 | ||
Average common shares outstanding: | ||||||
Basic | 139,884 | 138,478 | ||||
Diluted | 140,671 | 139,150 | ||||
*Net impact of repair tax accounting change represents the tax impact of the tax accounting change, net of related expenses to implement change. |
Director,
Investor Relations
bjdingerdissen@aquaamerica.com
or
Manager, Communications
dpalston@aquaamerica.com
Source:
News Provided by Acquire Media