Aqua America Reports Increased Earnings for Second Quarter
-
Quarterly cash dividend increased 7.9 percent, to
$0.178 -
Diluted income from continuing operations per share increases to
$0.32 - Completed eight acquisitions year-to-date, adding approximately 8,700 customers
-
Christopher H. Franklin appointed chief executive officer -
Richard S. Fox appointed chief operating officer of regulated operations -
Daniel J. Schuller , Ph.D. appointed executive vice president, strategy and corporate development
Second Quarter Operating Results
For the second quarter,
Revenues increased to
Operations and maintenance expenses were
As of
"Success in both our regulated and market-based acquisition strategies
accounted for most of the company's increased revenue for the second
quarter," said Aqua America's Chief Executive Officer
Dividend
Earlier today, Aqua America's Board of Directors declared a quarterly
cash dividend of
"The Board's decision to raise the dividend by 7.9 percent is a
reflection of the organization's financial strength and its commitment
to increase shareholder value," said Aqua America Board Chairman
Corporate Update
Aqua has announced two major organizational changes in the month of
July. On
Additionally, Aqua appointed
"Over the past 14 years, I have had the pleasure to work closely with Rick, who has played a key role in managing and improving the company's operational efficiencies, which helped contribute to the overall success of our business," said Franklin. "Dan's experience and expertise in valuing, acquiring, and managing utilities during his career makes him an ideal fit in this organization. Both Rick and Dan will report directly to me, and I am confident that they will be valuable assets as we look to continue to grow."
Capital Expenditures
In the first six months of 2015, as part of its capital investment plan,
Aqua has invested approximately
Rate Activity
Year-to-date, Aqua America's regulated subsidiaries received rate awards
and infrastructure surcharges in
Regulated Operations
On
Thus far in 2015, Aqua has completed eight acquisitions in
"We feel strongly that there are opportunities for us to grow by acquiring both municipal and privately owned systems, creating a win-win for the customers and communities we serve," said Franklin. "Our financial strength and expertise in the water and wastewater utility space, allows us to competitively bid on systems that might be experiencing capital constraints, lack the ability to make infrastructure improvements or have an owner who wants to focus resources and attention elsewhere. The company is also adjusting its approach to acquisitions by more strategically targeting larger systems where possible. The success of this approach is just starting to come to fruition. Even with this adjustment of approach, we will continue to work to solve the problems that plague small utility systems in the states in which we operate."
Market-Based Activities
Aqua's market-based revenue increased to
Financial Information
As of
Earnings Call Information
Date:
Time:
Webcast and Slide Presentation link: http://ir.aquaamerica.com/events.cfm
Replay
Dial-In #: 888-203-1112 (U.S.) & +1 719-457-0820 (International)
Confirmation
code: 7075829
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 continued ability to adapt itself for the future
and build value by fully optimizing company assets; 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 company's
expectation to acquire between 15 and 20 systems and to grow the
customer base between 1.5 percent and 2.0 percent; the company's ability
to competitively bid for and acquire municipal and private water and
wastewater utilities; the potential additional customers that may be
added to the Wintergreen system in the future; the estimated revenues
from rate awards received; the company's ability to acquire larger
acquisitions and solve the needs of smaller utility systems; the
company's ability to fund needed infrastructure due to its financial
position and the amount of investment for the year and the next three
years; the company's continuation of investments in strategic ventures;
the expectations that are created and the potential value that will be
added by recently hired and promoted management; the expected revenue
increase for the year in market-based activities; the company's ability
to continue to deliver strong results; and, the company's ability to
grow its dividend, add shareholder value and to grow earnings. 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; changes in regulations or regulatory
treatment; availability and access to capital; 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, which is
on file with the
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| Selected Operating Data | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||
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2015 |
2014 |
2015 |
2014 |
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| Operating revenues | $ | 205,760 | $ | 195,307 | $ | 396,086 | $ | 377,979 | ||||
| Income from continuing operations | $ | 57,382 | $ | 54,818 | $ | 105,927 | $ | 97,219 | ||||
| Net income attributable to common shareholders | $ | 57,382 | $ | 55,569 | $ | 105,927 | $ | 98,428 | ||||
| Basic income from continuing operations per common share | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.55 | ||||
| Diluted income from continuing operations per common share | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.55 | ||||
| Basic net income per common share | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.56 | ||||
| Diluted net income per common share | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.55 | ||||
| Basic average common shares outstanding | 177,084 | 177,058 | 176,987 | 176,949 | ||||||||
| Diluted average common shares outstanding | 177,913 | 178,012 | 177,818 | 177,868 | ||||||||
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| Consolidated Statement of Income | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||
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2015 |
2014 |
2015 |
2014 |
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| Operating revenues | $ | 205,760 | $ | 195,307 | $ | 396,086 | $ | 377,979 | ||||||||
| Cost & expenses: | ||||||||||||||||
| Operations and maintenance | 79,746 | 70,375 | 152,935 | 142,061 | ||||||||||||
| Depreciation | 31,049 | 31,226 | 61,549 | 62,207 | ||||||||||||
| Amortization | 924 | 746 | 1,773 | 1,879 | ||||||||||||
| Taxes other than income taxes | 13,795 | 13,026 | 28,416 | 25,128 | ||||||||||||
| Total | 125,514 | 115,373 | 244,673 | 231,275 | ||||||||||||
| Operating income | 80,246 | 79,934 | 151,413 | 146,704 | ||||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense, net | 18,900 | 19,093 | 37,565 | 38,403 | ||||||||||||
| Allowance for funds used during construction | (1,040 | ) | (937 | ) | (2,222 | ) | (2,104 | ) | ||||||||
| Loss (gain) on sale of other assets | 1 | (140 | ) | (168 | ) | 208 | ||||||||||
| Equity loss in joint venture | 84 | 1,251 | 798 | 1,937 | ||||||||||||
| Income from continuing operations before income taxes | 62,301 | 60,667 | 115,440 | 108,260 | ||||||||||||
| Provision for income taxes | 4,919 | 5,849 | 9,513 | 11,041 | ||||||||||||
| Income from continuing operations | 57,382 | 54,818 | 105,927 | 97,219 | ||||||||||||
| Discontinued operations: | ||||||||||||||||
| Income from discontinued operations before income taxes | - | 1,253 | - | 2,025 | ||||||||||||
| Provision for income taxes | - | 502 | - | 816 | ||||||||||||
| Income from discontinued operations | - | 751 | - | 1,209 | ||||||||||||
| Net income attributable to common shareholders | $ | 57,382 | $ | 55,569 | $ | 105,927 | $ | 98,428 | ||||||||
| Income from continuing operations per share: | ||||||||||||||||
| Basic | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.55 | ||||||||
| Diluted | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.55 | ||||||||
| Income from discontinued operations per share: | ||||||||||||||||
| Basic | $ | - | $ | 0.00 | $ | - | $ | 0.01 | ||||||||
| Diluted | $ | - | $ | 0.00 | $ | - | $ | 0.01 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.56 | ||||||||
| Diluted | $ | 0.32 | $ | 0.31 | $ | 0.60 | $ | 0.55 | ||||||||
| Average common shares outstanding: | ||||||||||||||||
| Basic | 177,084 | 177,058 | 176,987 | 176,949 | ||||||||||||
| Diluted | 177,913 | 178,012 | 177,818 | 177,868 | ||||||||||||
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| Condensed Consolidated Balance Sheets | ||||||
| (In thousands of dollars) | ||||||
| (Unaudited) | ||||||
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2015 |
2014 |
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| Net property, plant and equipment | $ | 4,522,287 | $ | 4,401,990 | ||
| Current assets | 175,360 | 152,522 | ||||
| Regulatory assets and other assets | 902,631 | 852,240 | ||||
| Total assets | $ | 5,600,278 | $ | 5,406,752 | ||
| Total equity | $ | 1,702,927 | $ | 1,655,383 | ||
| Long-term debt, excluding current portion | 1,660,526 | 1,560,655 | ||||
| Current portion of long-term debt and loans payable | 74,809 | 77,013 | ||||
| Other current liabilities | 128,586 | 148,322 | ||||
| Deferred credits and other liabilities | 2,033,430 | 1,965,379 | ||||
| Total liabilities and equity | $ | 5,600,278 | $ | 5,406,752 | ||
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| Reconciliation of GAAP to Non-GAAP financial measures for continuing operations | ||
| (in thousands of dollars) | ||
|
(GAAP refers to accounting principles generally accepted in |
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| (Unaudited) | ||
| Regulated segment - Efficiency Ratio adjusted for Purchased Water | Trailing twelve | |
| months ended | ||
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| 2015 | ||
| Operating revenues (GAAP financial measure) |
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| Purchased Water | 20,524 | |
| Adjusted operating revenues (Non-GAAP financial measure) |
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| Operations and maintenance expense (GAAP financial measure) |
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| Purchased Water | 20,524 | |
| Adjusted operations and maintenance expense (Non-GAAP financial measure) |
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| Regulated segment efficiency ratio (GAAP financial measure) | 35.9% | |
|
Regulated segment efficiency ratio adjusted for Purchased Water (Non-GAAP financial measure) |
34.2% | |
Reconciliation of GAAP to Non-GAAP financial measures - 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 by adjustment, which is more indicative of the Company's ongoing performance and is more comparable to measures reported by other companies.
Regulated segment - Efficiency Ratio is adjusted for Purchased Water. Information referring to "Purchased Water" refers to expense related to cost of water purchased from other non-affiliated utilities. This "Purchased Water" expense amount is deducted from the operating revenues amount and the operations and maintenance expense amount to calculate the efficiency ratio adjusted for Purchased Water.
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
WTRF
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O:
610-645-1191
BJDingerdissen@AquaAmerica.com
or
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O: 610-645-1095
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DPAlston@AquaAmerica.com
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