Aqua America Reports Record Earnings for the First Quarter of Company's 125th Year of Operation
Revenue up 7 percent; earnings up 41 percent
Earnings positively affected by tax incentives on capital spending
The company reported first quarter net income of
Income before the effect of the net state income tax benefits associated
with 100 percent bonus depreciation (a non-GAAP financial measure)
increased substantially to
On
During the first quarter, operations and maintenance expenses decreased
0.4 percent to
During the first quarter of 2011, the company invested
In April,
DeBenedictis said, "As part of our efforts to be environmental stewards,
we continue to look for innovative opportunities to invest capital in
ways that benefit the environment, our customers and our shareholders.
In 2011, we plan to construct three additional solar plants that are
projected to produce more than two thousand kilowatts of electricity,
representing a savings of
As of
To date in 2011, the company has received rate awards in
The company'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, the continued impact of state tax benefit associated with bonus
depreciation on financial results throughout 2011, the expected recovery
of a return on the company's capital investments, the projected
additional cash generated from the federal and state tax benefit from
bonus depreciation, the expected improvement in the operations and
maintenance expense to revenue ratio, the amount of capital spending by
the company planned for 2011 and the expected benefits from those
expenditures, the planned construction of, and expected electricity cost
savings from three additional solar plants, the company's ability to
access the capital markets, the impact of pending rate cases, and the
company's plans to file future rate increases and the timing of the
impact of such cases. 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 | ||||||
| March 31, | ||||||
| 2011 | 2010 | |||||
| Operating revenues | $ | 171,324 | $ | 160,517 | ||
| Net income attributable to common shareholders | $ | 30,351 | $ | 21,511 | ||
| Basic net income per common share | $ | 0.22 | $ | 0.16 | ||
| Diluted net income per common share | $ | 0.22 | $ | 0.16 | ||
| Basic average common shares outstanding | 137,825 | 136,509 | ||||
| Diluted average common shares outstanding | 138,384 | 136,800 | ||||
| Aqua America, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Income and Comprehensive Income | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
| Operating revenues | $ | 171,324 | $ | 160,517 | ||||
| Cost & expenses: | ||||||||
| Operations and maintenance | 67,325 | 67,601 | ||||||
| Depreciation | 27,293 | 26,200 | ||||||
| Amortization | 1,956 | 3,172 | ||||||
| Taxes other than income taxes | 13,765 | 12,860 | ||||||
| Total | 110,339 | 109,833 | ||||||
| Operating income | 60,985 | 50,684 | ||||||
| Other expense (income): | ||||||||
| Interest expense, net | 19,943 | 18,430 | ||||||
| Allowance for funds used during construction | (1,977 | ) | (1,541 | ) | ||||
| Gain on sale of other assets | (121 | ) | (1,929 | ) | ||||
| Income before income taxes | 43,140 | 35,724 | ||||||
| Provision for income taxes | 12,789 | 14,213 | ||||||
| Net income attributable to common shareholders | $ | 30,351 | $ | 21,511 | ||||
| Net income attributable to common shareholders | $ | 30,351 | $ | 21,511 | ||||
| Other comprehensive income, net of tax: | ||||||||
| Unrealized holding gain on investments | 4 | 902 | ||||||
| Reclassification adjustment for gain reported in net income | (2 | ) | (1,330 | ) | ||||
| Comprehensive income | $ | 30,353 | $ | 21,083 | ||||
| Net income per common share: | ||||||||
| Basic | $ | 0.22 | $ | 0.16 | ||||
| Diluted | $ | 0.22 | $ | 0.16 | ||||
| Average common shares outstanding: | ||||||||
| Basic | 137,825 | 136,509 | ||||||
| Diluted | 138,384 | 136,800 | ||||||
| Aqua America, Inc and Subsidiaries |
| Reconciliation of GAAP to Non-GAAP Financial Measure |
| (In thousands, except per share amounts) |
| (Unaudited) |
This press release includes a presentation of "income before net state
income tax benefit associated with 100 percent bonus depreciation" and
"diluted income per common share before net state income tax benefit
associated with 100 percent bonus depreciation" (net state income tax
benefit associated with 100 percent bonus depreciation is referred to
herein as the "special item"). These financial measures are measures of
the Company's operating performance that do not comply with U.S.
generally accepted accounting principles (GAAP), and are thus considered
to be "non-GAAP financial measures" under applicable
The Company is providing disclosure of the reconciliation of these
non-GAAP financial measures to the most comparable GAAP financial
measures. The Company believes that the non-GAAP financial measures
provide investors the ability to measure the Company's financial
operating performance excluding the special item, which is more
indicative of the Company's ongoing performance and is more comparable
to measures reported by other companies. The Company further believes
that the presentation of these non-GAAP financial measures is useful to
investors as a more meaningful way to compare the Company's operating
performance against its historical financial results and to assess the
underlying profitability of our core business. As currently enacted, 100
percent bonus depreciation is in effect for qualifying capital additions
placed in service from
The reconciliation of the non-GAAP financial measures to the comparable U.S. GAAP results provided for each period are presented below:
| Quarter Ended | ||||||
| March 31, | ||||||
| 2011 | 2010 | |||||
|
Net income attributable to common shareholders (GAAP financial measure) |
$ | 30,351 | $ | 21,511 | ||
|
Less: Net state income tax benefit associated with 100% bonus depreciation |
4,328 | - | ||||
|
Income attributable to common shareholders before net state income tax benefit associated with 100% bonus depreciation (Non-GAAP financial measure) |
$ | 26,023 | $ | 21,511 | ||
| Net income per common share (GAAP financial measure): | ||||||
| Basic | $ | 0.22 | $ | 0.16 | ||
| Diluted | $ | 0.22 | $ | 0.16 | ||
|
Income per common share before net state income tax benefit associated with 100% bonus depreciation (Non-GAAP financial measure): |
||||||
| Basic | $ | 0.19 | $ | 0.16 | ||
| Diluted | $ | 0.19 | $ | 0.16 | ||
| Average common shares outstanding: | ||||||
| Basic | 137,825 | 136,509 | ||||
| Diluted | 138,384 | 136,800 | ||||
| Aqua America, Inc. and Subsidiaries | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (In thousands of dollars) | ||||||
| (Unaudited) | ||||||
| March 31, | December 31, | |||||
| 2011 | 2010 | |||||
| Net property, plant and equipment | $ | 3,496,803 | $ | 3,467,800 | ||
| Current assets | 156,893 | 146,877 | ||||
| Regulatory assets and other assets | 458,630 | 457,789 | ||||
| $ | 4,112,326 | $ | 4,072,466 | |||
| Total equity | $ | 1,192,692 | $ | 1,174,826 | ||
| Long-term debt, excluding current portion | 1,530,092 | 1,531,976 | ||||
| Current portion of long-term debt and loans payable |
120,345 |
118,081 | ||||
| Other current liabilities |
88,949 |
105,634 | ||||
| Deferred credits and other liabilities | 1,180,248 | 1,141,949 | ||||
| $ | 4,112,326 | $ | 4,072,466 | |||
Director,
Investor Relations
bjdingerdissen@aquaamerica.com
or
Director, Communications
dpalston@aquaamerica.com
Source:
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