Middlesex Water Company (“Middlesex” or the “Company”)
(NASDAQ:MSEX) a provider of water and wastewater services, today
announced third quarter financial results.
Third Quarter Operating Results
Diluted earnings per share were $0.80 and $0.56 for the three
months ended September 30, 2024, and 2023, respectively. Net income
for the quarter was $14.3 million, a $4.3 million increase when
compared to the same period in 2023.
Revenues for the quarter ended September 30, 2024, increased
$8.4 million to $55.1 million, compared to the same period in 2023.
Middlesex System revenues increased $6.1 million due primarily to
the New Jersey Board of Public Utilities (NJBPU)-approved base rate
increase effective March 1, 2024, and increased customer demand. In
our Delaware System, revenues increased $2.1 million due to
customer growth and increased customer demand.
Operations and maintenance expenses for the quarter increased
$2.8 million over the same period in 2023 due to increased legal,
financial and regulatory matter costs, an enhanced water treatment
process at Middlesex’s Park Avenue Plant, increased labor costs due
to wage increases and higher energy and chemical costs due to
increased water demand.
Year to Date Operating Results
Net income for the nine months ended September 30, 2024, was
$35.5 million, a $9.8 million increase when compared to the same
period in 2023. Diluted earnings per share were $1.98 and $1.44 for
the nine months ended September 30, 2024, and 2023, respectively. A
significant amount of the increase is attributable to the
implementation of the NJBPU-approved base rate increases in our
Middlesex System and the one-time recovery of previously incurred
depreciation, operating and carrying costs of $6.8 million
associated with the prior period construction and operation of the
water treatment facilities at Middlesex’s Park Avenue Wellfield. As
part of the NJBPU-approved Middlesex base rate case, which included
the impact of the previously disclosed PFOA lawsuit settlement, the
NJBPU authorized these operating and carrying costs to be recovered
after Middlesex first applied settlement proceeds to the cost of
the water treatment facilities at Middlesex’s Park Avenue
Wellfield.
Revenues for the nine months ended September 30, 2024, were
$144.8 million, an increase of $17.1 million over the same period
in 2023. Middlesex System revenues increased $12.9 million
primarily due to the NJBPU-approved base rate increase which took
effect March 1, 2024, and increased customer demand. In our
Delaware System, revenues increased $3.5 million due to customer
growth and increased customer demand. Non-regulated revenues
increased $0.3 million primarily due to higher supplemental
contract services.
Operations and maintenance expenses for the nine months ended
September 30, 2024, increased $3.6 million over the same period in
2023, primarily due to increased legal, financial and regulatory
matter costs, an enhanced water treatment process at Middlesex’s
Park Avenue Plant, increased labor costs due to wage increases and
higher energy costs due to increased water demand.
Middlesex President and Chief Executive Officer Nadine Leslie
said, “Our strong financial results are a reflection of our
commitment to operational excellence, delivering safe and reliable
service to our customers and working constructively with regulators
to recover prudent infrastructure investments in a timely manner.
We also increased our common dividend for the 52nd consecutive year
by 4.62%,” added Leslie.
Rate Activity
New JerseyIn October 2024, Middlesex filed a
second Distribution System Improvement Charge (DSIC) rate
application that is expected to result in $1.1 million of annual
revenues. In addition, in October 2024, Middlesex filed a petition
with the NJBPU seeking approval to set a Purchased Water Adjustment
Clause tariff rate to recover additional costs of $0.6 million for
the purchase of treated water from a non-affiliated water utility
regulated by the NJBPU.
DelawareIn August 2024, Tidewater Utilities,
Inc. (Tidewater) filed an application with the Delaware Public
Service Commission (DEPSC) to increase its general rates for water
service. In the application, Tidewater seeks an overall increase in
annual operating revenue of $10.3 million or 25.66% over current
revenue. Effective October 30, 2024, Tidewater received approval of
the DEPSC to suspend its DSIC rate and implement an interim rate
increase, which is expected to result in approximately $2.5 million
of annual revenues, subject to refund pending the outcome of the
rate case application.
In September 2024, the DEPSC approved
Tidewater’s petition to recover up to $2.1 million of costs
associated with Tidewater’s obligation to identify and inventory
lead service lines throughout Tidewater’s service area, as required
by federal law and Delaware regulations. Through September 30,
2024, Tidewater has spent $1.7 million, which is included in
Regulatory Assets and will be recovered through a surcharge
mechanism.
Board Declares Dividend, Announces 4.62% Dividend
Increase
We previously announced that our Board of Directors declared a
quarterly cash dividend of $0.34 per common share payable on
December 2, 2024, to shareholders of record as of November 15,
2024. This represents a 4.62% increase from the $0.325 per share
dividend last declared in July 2024. This increase raises the
annual dividend rate to $1.36 from $1.30 per share of common stock.
Middlesex has paid cash dividends in varying amounts continually
since 1912. Information about Middlesex Water’s Investment Plan
(Direct Share Purchase and Sale and Dividend Reinvestment Plan) is
available at https://shareholder.broadridge.com/middlesexwater/
About Middlesex Water CompanyEstablished in
1897, Middlesex Water Company serves as a trusted provider offering
life-sustaining high quality water service for residential,
commercial, industrial and fire protection purposes. The company
offers a full range of water, wastewater utility and related
services. The company and its subsidiaries form the Middlesex Water
family of companies, which collectively serve a population of half
a million people in New Jersey and Delaware. Middlesex Water is
focused on meeting the needs of our employees, customers, and
shareholders. We invest in our people, our infrastructure, and the
communities we serve to support reliable and resilient utility
services, economic growth, and quality of life.
This press release contains “forward‐looking statements” within
the meaning of U.S. federal securities laws reflecting the current
beliefs or expectations of Middlesex Water Company “MSEX” or the
“Company” regarding its future performance, its financial
condition, its strategic plans and cash flows, its results of
operations as well as any other statements that do not directly
relate to any historical or current facts. These statements reflect
the Company’s current views and information currently available.
This information is based on estimates, assumptions, and analysis
that the Company believes, as of the date hereof, provide a
reasonable basis for the information contained herein.
Forward‐looking statements can generally be identified by the use
of forward‐looking words such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates,” “foresees.” Actual results, performance or
achievements may differ materially from forward‐looking statements,
and the assumptions on which forward-looking statements are based.
There can be no assurance that the information contained herein is
reflective of future performance, and investors are cautioned not
to place undue reliance on forward‐looking statements as a
predictor of future performance. Unless otherwise specified, all
information contained in this press release speaks only as of the
date hereof. The Company undertakes no duty to update or revise the
information contained herein, whether as a result of new
information, future events or otherwise.
Contact:Bernadette Sohler, Vice President –
Corporate Affairsbsohler@middlesexwater.com
Jennifer Ketschke, Director of Treasury and Investor
Relationsjketschke@middlesexwater.com
MIDDLESEX WATER COMPANY |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(In thousands except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ |
55,100 |
|
|
$ |
46,715 |
|
|
$ |
144,770 |
|
|
$ |
127,672 |
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Operations and Maintenance |
|
25,359 |
|
|
|
22,581 |
|
|
|
67,649 |
|
|
|
64,042 |
|
Depreciation |
|
6,309 |
|
|
|
6,376 |
|
|
|
18,010 |
|
|
|
18,546 |
|
Other Taxes |
|
5,931 |
|
|
|
4,936 |
|
|
|
16,430 |
|
|
|
14,104 |
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
37,599 |
|
|
|
33,893 |
|
|
|
102,089 |
|
|
|
96,692 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
17,501 |
|
|
|
12,822 |
|
|
|
42,681 |
|
|
|
30,980 |
|
|
|
|
|
|
|
|
|
Other Income: |
|
|
|
|
|
|
|
Allowance for Funds Used During Construction |
|
354 |
|
|
|
496 |
|
|
|
787 |
|
|
|
2,162 |
|
Other Income, net |
|
1,614 |
|
|
|
936 |
|
|
|
9,202 |
|
|
|
3,124 |
|
|
|
|
|
|
|
|
|
Total Other Income, net |
|
1,968 |
|
|
|
1,432 |
|
|
|
9,989 |
|
|
|
5,286 |
|
|
|
|
|
|
|
|
|
Interest Charges |
|
3,411 |
|
|
|
3,518 |
|
|
|
10,721 |
|
|
|
9,364 |
|
|
|
|
|
|
|
|
|
Income before Income Taxes |
|
16,058 |
|
|
|
10,736 |
|
|
|
41,949 |
|
|
|
26,902 |
|
|
|
|
|
|
|
|
|
Income Taxes |
|
1,739 |
|
|
|
746 |
|
|
|
6,402 |
|
|
|
1,143 |
|
|
|
|
|
|
|
|
|
Net Income |
|
14,319 |
|
|
|
9,990 |
|
|
|
35,547 |
|
|
|
25,759 |
|
|
|
|
|
|
|
|
|
Preferred Stock Dividend Requirements |
|
29 |
|
|
|
30 |
|
|
|
89 |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
Earnings Applicable to Common Stock |
$ |
14,290 |
|
|
$ |
9,960 |
|
|
$ |
35,458 |
|
|
$ |
25,669 |
|
|
|
|
|
|
|
|
|
Earnings per share of Common Stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.80 |
|
|
$ |
0.56 |
|
|
$ |
1.99 |
|
|
$ |
1.45 |
|
Diluted |
$ |
0.80 |
|
|
$ |
0.56 |
|
|
$ |
1.98 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
Average Number of Common Shares Outstanding : |
|
|
|
|
|
|
|
Basic |
|
17,838 |
|
|
|
17,758 |
|
|
|
17,828 |
|
|
|
17,708 |
|
Diluted |
|
17,952 |
|
|
|
17,873 |
|
|
|
17,943 |
|
|
|
17,823 |
|
|
|
|
|
|
|
|
|
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