Middlesex Water Company (“Middlesex” or the “Company”)
(NASDAQ:MSEX) a provider of water and wastewater services, today
reported financial results for the second quarter ended June 30,
2024.
Second Quarter 2024 Results
Diluted earnings per share were $0.59 for the three months ended
June 30, 2024, compared to $0.55 for the same period in 2023. Net
income for the quarter ended June 30, 2024, increased to $10.5
million, up 6.5% from the same period in 2023.
Quarterly consolidated operating revenues were $49.1 million, an
increase of $6.3 million as compared to the same period in 2023.
Revenues in our Middlesex System increased $5.2 million due to the
New Jersey Board of Public Utilities (“NJBPU”) approved base rate
increase which took effect March 1, 2024 and increased commercial
and industrial customer billings. In our Delaware system, revenues
increased $0.6 million due to customer growth and higher customer
demand.
Operation and maintenance expenses for the second quarter of
2024 increased $0.6 million from the same period in 2023. The
increase was largely related to an enhanced water treatment process
at the Company’s Park Avenue Wellfield, increased labor costs, lead
service line inventory compliance costs associated with our
Delaware system, and outside professional support services
costs.
Year-to-Date Results
Year-to-date net income increased $5.5 million, when compared to
the same period in 2023. Diluted earnings per share were $1.18 and
$0.88 for the six months ended June 30, 2024, and 2023,
respectively. The majority 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 $6.4 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 six months ended June 30, 2024, were $89.7
million, an increase of $8.7 million over the same period in 2023.
Middlesex System revenues increased $6.8 million due to the NJBPU-
approved base rate increase effective March 1, 2024 and higher
commercial and industrial billings. In our Delaware system,
revenues increased $1.4 million due to customer growth and higher
customer demand. Pinelands system revenues increased $0.2 million
due to scheduled rate increases resulting from the NJBPU-approved
2023 base rate increase. Non-regulated revenues increased $0.2
million primarily due to higher supplemental contract services.
Year-to-date operations and maintenance expenses increased $0.8
million over the same period in 2023, primarily due to increased
labor and employee benefit costs, an enhanced water treatment
process at the Company’s Park Avenue Wellfield and lead service
line inventory compliance costs associated with our Delaware
system. These cost increases were offset by the one-time cost
recovery described above.
Year-to-date income taxes increased by $4.3
million when compared to the same period in 2023, primarily due to
higher pre-tax income and lower income tax benefits associated with
decreased repair expenditures on tangible property in the Middlesex
System.
Middlesex President and Chief Executive Officer Nadine Leslie
said, “We continue to focus on solidifying our growth and
succession planning strategies, meeting customer demand for high
quality water service, and investing in our drinking water
infrastructure through our RENEW and Water for Tomorrow® programs
in New Jersey to ensure compliance with new federal drinking water
regulations. In Delaware, we expect to file our general rate case
in the third quarter of 2024 to maintain our infrastructure
resiliency and compliance with various regulations,” Leslie
added.
Board Declares Dividend
We previously announced that our Board of Directors declared a
quarterly cash dividend of $0.325 per common share payable on
September 3, 2024, to shareholders of record as of August 15, 2024.
Middlesex has paid cash dividends in varying amounts continually
since 1912 and has increased its annual dividend for fifty-one
consecutive years.
ABOUT MIDDLESEX WATER COMPANY
Established in 1897, Middlesex Water Company (NASDAQ: MSEX)
serves as a trusted provider of life-sustaining high quality water
service for residential, commercial, industrial and fire protection
purposes. The Company and its subsidiaries form the Middlesex
family of companies, which collectively serve a population of half
a million people in New Jersey and Delaware. We offer a full range
of water, wastewater utility and related services including
municipal and industrial contract operations and water and
wastewater system technical operations and maintenance. We are
focused on meeting and balancing 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. Information about Middlesex Water’s Investment Plan
(Direct Share Purchase and Sale and Dividend Reinvestment Plan) is
available at https://shareholder.broadridge.com/middlesexwater/
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.
Media Contact:Bernadette Sohler, Vice President
– Corporate AffairsMiddlesex Water Company (732)
638-7549www.middlesexwater.com
MIDDLESEX WATER COMPANY |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(In thousands except per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Operating Revenues |
$ |
49,146 |
|
|
$ |
42,801 |
|
|
$ |
89,670 |
|
|
$ |
80,957 |
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Operations and Maintenance |
|
21,825 |
|
|
|
21,204 |
|
|
|
42,290 |
|
|
|
41,462 |
|
Depreciation |
|
6,305 |
|
|
|
6,184 |
|
|
|
11,701 |
|
|
|
12,170 |
|
Other Taxes |
|
5,701 |
|
|
|
4,744 |
|
|
|
10,499 |
|
|
|
9,168 |
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
33,831 |
|
|
|
32,132 |
|
|
|
64,490 |
|
|
|
62,800 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
15,315 |
|
|
|
10,669 |
|
|
|
25,180 |
|
|
|
18,157 |
|
|
|
|
|
|
|
|
|
Other Income: |
|
|
|
|
|
|
|
Allowance for Funds Used During Construction |
|
257 |
|
|
|
852 |
|
|
|
433 |
|
|
|
1,665 |
|
Other Income, net |
|
2,399 |
|
|
|
1,290 |
|
|
|
7,588 |
|
|
|
2,188 |
|
|
|
|
|
|
|
|
|
Total Other Income, net |
|
2,656 |
|
|
|
2,142 |
|
|
|
8,021 |
|
|
|
3,853 |
|
|
|
|
|
|
|
|
|
Interest Charges |
|
4,041 |
|
|
|
3,251 |
|
|
|
7,310 |
|
|
|
5,846 |
|
|
|
|
|
|
|
|
|
Income before Income Taxes |
|
13,930 |
|
|
|
9,560 |
|
|
|
25,891 |
|
|
|
16,164 |
|
|
|
|
|
|
|
|
|
Income Taxes |
|
3,384 |
|
|
|
(341 |
) |
|
|
4,663 |
|
|
|
397 |
|
|
|
|
|
|
|
|
|
Net Income |
|
10,546 |
|
|
|
9,901 |
|
|
|
21,228 |
|
|
|
15,767 |
|
|
|
|
|
|
|
|
|
Preferred Stock Dividend Requirements |
|
30 |
|
|
|
30 |
|
|
|
60 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
Earnings Applicable to Common Stock |
$ |
10,516 |
|
|
$ |
9,871 |
|
|
$ |
21,168 |
|
|
$ |
15,707 |
|
|
|
|
|
|
|
|
|
Earnings per share of Common Stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.59 |
|
|
$ |
0.56 |
|
|
$ |
1.19 |
|
|
$ |
0.89 |
|
Diluted |
$ |
0.59 |
|
|
$ |
0.55 |
|
|
$ |
1.18 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
Average Number of Common Shares Outstanding : |
|
|
|
|
|
|
|
Basic |
|
17,829 |
|
|
|
17,713 |
|
|
|
17,824 |
|
|
|
17,683 |
|
Diluted |
|
17,944 |
|
|
|
17,828 |
|
|
|
17,939 |
|
|
|
17,798 |
|
|
|
|
|
|
|
|
|
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