Aqua America Reports Earnings for 2015
-
Revenues increased 4.4 percent to
$814.2 million -
Adjusted income from continuing operations per share (non-GAAP
financial measure) increased 5 percent to
$1.26 per share in 2015 (excluding joint venture impairment charge) vs.$1.20 in 2014 - 2015 acquisitions and organic growth added approximately 17,750 customer connections
Full-year Operating Results
Revenues increased to
In 2015, operations and maintenance expenses were
Aqua reported adjusted income from continuing operations (a non-GAAP
financial measure) of
A reduction in forecasted future raw water sales volumes, primarily
resulting from lower natural gas prices and changes in natural gas
industry market dynamics, led the company's joint venture, of which Aqua
is a 49 percent stakeholder, to assess the value of its pipeline assets
that supply raw water to natural gas well drilling operations in the
"Aqua's strong 2015 results from its regulated business represents
management's continued focus on renewing infrastructure in the
communities we serve, creating efficiencies for our customers and
growing Aqua's regulated customer base through prudent acquisitions. Our
strategy remains focused on growing the company by capitalizing on our
core strengths in the regulated arena," said President and Chief
Executive Officer of Aqua America
Fourth Quarter Operating Results
Revenues increased to
Operations and maintenance expenses were
Adjusted income from continuing operations (a non-GAAP financial
measure) was
For the fourth quarter of 2015, Aqua reported income from continuing
operations of
Capital Expenditures
In 2015, Aqua invested approximately
Dividend
On
Rate Activity
In 2015, Aqua America's regulated subsidiaries received rate awards and
infrastructure surcharges in
To date in 2016, the company's state subsidiaries in
Acquisition Growth in Regulated Operations
In 2015, Aqua's growth-through-acquisition program yielded the largest customer growth rate seen since 2008. The company's successful growth initiatives included four municipal acquisitions and added 10,579 customer connections through acquisitions completed in 2015. Coupled with organic growth, the company increased its customer base by 1.9 percent with 17,747 new customer connections.
So far in 2016, Aqua has completed acquisitions in
On
"Our refined and enhanced growth strategy continues to see success," said Franklin. "2015 was a step in the right direction for the growth we would like to see moving forward. We expect customer growth this year to be in the range of 1.5 to 2 percent given our current pipeline, and we are excited about some of the larger opportunities we see on the horizon that could build our customer base more substantially over the coming years."
Financial Information
At year-end 2015, Aqua America's weighted average cost of fixed-rate
long-term debt was 4.57 percent and the company had
2016 Guidance
-
Earnings per diluted common share of
$1.30 to$1.35 - Total customer base growth of 1.5 to 2 percent
- Same-system operations and maintenance expenses increase of 1 to 2 percent
-
More than
$350 million in capital investments; more than$1.1 billion in 2016 through 2018
Earnings Call Information
Date:
Time:
Webcast and slide presentation link: http://ir.aquaamerica.com/events.cfm
Confirmation
code: 384711
The company's conference call with financial analysts will take place on
About
Caution Concerning Forward-Looking Statements
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among
others: the company's expected same-system operations and maintenance
expense increase; the company's ability to control expenses and maintain
its efficiency; the continuation of the company's
growth-through-acquisition program and the expectations for customer
growth from this program; the anticipated rate filings and the estimated
revenues from rate awards received; the company's ability to refine and
execute its market-based strategy and maximize shareholder return for
the business unit; the expected increase in customer base for the year;
the guidance range of earnings per share for the year; the anticipated
amount of capital investment for the year and the next three years; and
the company's continuation of investments in strategic ventures. There
are important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements including: the company's continued ability to adapt itself
for the future and build value by fully optimizing company assets;
general economic business conditions; the company's ability to fund
needed infrastructure due to its financial position; housing and
customer growth trends; the success of the Corporation's joint venture
in the
WTRF
The company's results stated here are unaudited. The final audited
financial statements will be filed with the company's annual report on
Form 10-K. The following statements and tables show selected operating
data for the quarter and year ended
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| Selected Operating Data | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Quarter Ended | Year Ended | |||||||||||
|
|
|
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|
2015 |
2014 |
2015 |
2014 |
|||||||||
| Operating revenues | $ | 197,067 | $ | 191,389 | $ | 814,204 | $ | 779,903 | ||||
| Income from continuing operations | $ | 28,434 | $ | 48,954 | $ | 201,790 | $ | 213,884 | ||||
| Net income attributable to common shareholders | $ | 28,434 | $ | 66,815 | $ | 201,790 | $ | 233,239 | ||||
| Basic income from continuing operations per common share | $ | 0.16 | $ | 0.28 | $ | 1.14 | $ | 1.21 | ||||
| Diluted income from continuing operations per common share | $ | 0.16 | $ | 0.28 | $ | 1.14 | $ | 1.20 | ||||
| Basic net income per common share | $ | 0.16 | $ | 0.38 | $ | 1.14 | $ | 1.32 | ||||
| Diluted net income per common share | $ | 0.16 | $ | 0.38 | $ | 1.14 | $ | 1.31 | ||||
| Basic average common shares outstanding | 176,480 | 176,660 | 176,788 | 176,864 | ||||||||
| Diluted average common shares outstanding | 177,261 | 177,651 | 177,517 | 177,763 | ||||||||
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|
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| Condensed Consolidated Balance Sheets | ||||||
| (In thousands of dollars) | ||||||
| (Unaudited) | ||||||
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|
2015 |
2014 |
|||||
| Net property, plant and equipment | $ | 4,688,925 | $ | 4,401,990 | ||
| Current assets | 128,370 | 152,522 | ||||
| Regulatory assets and other assets | 923,743 | 852,240 | ||||
| Total assets | $ | 5,741,038 | $ | 5,406,752 | ||
| Total equity | $ | 1,725,930 | $ | 1,655,383 | ||
| Long-term debt, excluding current portion | 1,743,612 | 1,560,655 | ||||
| Current portion of long-term debt and loans payable | 52,314 | 77,013 | ||||
| Other current liabilities | 140,885 | 148,322 | ||||
| Deferred credits and other liabilities | 2,078,297 | 1,965,379 | ||||
| Total liabilities and equity | $ | 5,741,038 | $ | 5,406,752 | ||
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| Consolidated Statement of Income | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||
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|
2015 |
2014 |
2015 |
2014 |
|||||||||||||
| Operating revenues | $ | 197,067 | $ | 191,389 | $ | 814,204 | $ | 779,903 | ||||||||
| Cost & expenses: | ||||||||||||||||
| Operations and maintenance | 77,856 | 74,121 | 309,310 | 288,556 | ||||||||||||
| Depreciation | 31,760 | 31,365 | 125,290 | 123,054 | ||||||||||||
| Amortization | 858 | 796 | 3,447 | 3,481 | ||||||||||||
| Taxes other than income taxes | 11,978 | 12,510 | 55,057 | 50,453 | ||||||||||||
| Total | 122,452 | 118,792 | 493,104 | 465,544 | ||||||||||||
| Operating income | 74,615 | 72,597 | 321,100 | 314,359 | ||||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense, net | 19,732 | 19,004 | 76,536 | 76,397 | ||||||||||||
| Allowance for funds used during construction | (2,289 | ) | (1,835 | ) | (6,219 | ) | (5,134 | ) | ||||||||
| (Gain) loss on sale of other assets | (130 | ) | (129 | ) | (468 | ) | 4 | |||||||||
| Gain on extinguishment of debt | (678 | ) | - | (678 | ) | - | ||||||||||
| Equity loss in joint venture | 33,681 | 1,316 | 35,177 | 3,989 | ||||||||||||
| Income from continuing operations before income taxes | 24,299 | 54,241 | 216,752 | 239,103 | ||||||||||||
| Provision for income taxes | (4,135 | ) | 5,287 | 14,962 | 25,219 | |||||||||||
| Income from continuing operations | 28,434 | 48,954 | 201,790 | 213,884 | ||||||||||||
| Discontinued operations: | ||||||||||||||||
| Income from discontinued operations before income taxes | - | 29,658 | - | 32,155 | ||||||||||||
| Provision for income taxes | - | 11,797 | - | 12,800 | ||||||||||||
| Income from discontinued operations | - | 17,861 | - | 19,355 | ||||||||||||
| Net income attributable to common shareholders | $ | 28,434 | $ | 66,815 | $ | 201,790 | $ | 233,239 | ||||||||
| Income from continuing operations per share: | ||||||||||||||||
| Basic | $ | 0.16 | $ | 0.28 | $ | 1.14 | $ | 1.21 | ||||||||
| Diluted | $ | 0.16 | $ | 0.28 | $ | 1.14 | $ | 1.20 | ||||||||
| Income from discontinued operations per share: | ||||||||||||||||
| Basic | $ | - | $ | 0.10 | $ | - | $ | 0.11 | ||||||||
| Diluted | $ | - | $ | 0.10 | $ | - | $ | 0.11 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.16 | $ | 0.38 | $ | 1.14 | $ | 1.32 | ||||||||
| Diluted | $ | 0.16 | $ | 0.38 | $ | 1.14 | $ | 1.31 | ||||||||
| Average common shares outstanding: | ||||||||||||||||
| Basic | 176,480 | 176,660 | 176,788 | 176,864 | ||||||||||||
| Diluted | 177,261 | 177,651 | 177,517 | 177,763 | ||||||||||||
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| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Quarter Ended | Year Ended | |||||||||||
|
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|
|||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||
| Income from continuing operations (GAAP financial measure) | $ | 28,434 | $ | 48,954 |
|
$ | 213,884 | |||||
|
Plus: joint venture impairment charge (net of taxes of |
21,433 | - | 21,433 | - | ||||||||
| Adjusted income from continuing operations (Non-GAAP financial measure) | $ | 49,867 | $ | 48,954 |
|
$ | 213,884 | |||||
| Income from continuing operations per common share (GAAP financial measure): | ||||||||||||
| Basic | $ | 0.16 | $ | 0.28 |
|
$ | 1.21 | |||||
| Diluted | $ | 0.16 | $ | 0.28 |
|
$ | 1.20 | |||||
| Adjusted income from continuing operations per common share (Non-GAAP financial measure): | ||||||||||||
| Basic | $ | 0.28 | $ | 0.28 |
|
$ | 1.21 | |||||
| Diluted | $ | 0.28 | $ | 0.28 |
|
$ | 1.20 | |||||
| Average common shares outstanding: | ||||||||||||
| Basic | 176,480 | 176,660 | 176,788 | 176,864 | ||||||||
| Diluted | 177,261 | 177,651 | 177,517 | 177,763 | ||||||||
The Company is providing disclosure of the reconciliation of the 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 by adjustment, 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.
This press release includes a presentation of "adjusted income from continuing operations" and "adjusted income from continuing operations per common share." Both of these amounts have been adjusted to exclude the effects of the Company's share of a noncash impairment charge recognized by a joint venture.
These financial measures are measures of the Company's operating
performance that do not comply with
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Chief of Staff
O:
610-645-1191
BJDingerdissen@AquaAmerica.com
or
Manager, Communications
O: 610-645-1095
M:
484-368-4720
DPAlston@AquaAmerica.com
Source:
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