UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of
Report: March 12, 2009
MIDDLESEX WATER
COMPANY
(Exact
name of registrant as specified in its charter)
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NEW
JERSEY
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0-422
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22-1114430
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(State
or other jurisdiction of
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(Commission
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(I.R.S.
Employer
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incorporation
or organization)
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File
Number)
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Identification
No.)
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1500 RONSON ROAD, P.O. BOX
1500, ISELIN, NEW JERSEY 08830
(Address
of principal executive offices, including zip code)
(732)-634-1500
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ] Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[ ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02 Results of Operations and Financial Condition.
On March
12, 2009, Middlesex Water Company (the "Company") announced its financial
results for the year ended December 31, 2008. A copy of the
press release announcing these financial results is attached hereto as Exhibit
99.1 and incorporated into this Form 8-K by reference.
Item
9.01 Financial Statements and Exhibits.
(c) Exhibits
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Exhibit
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Number
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Description of
Document
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99.1
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Press
Release issued by Middlesex Water Company, dated March 12, 2009, announces
2008 Financial
Results.
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf of the undersigned hereunto
duly authorized.
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MIDDLESEX
WATER COMPANY
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(Registrant)
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s/Kenneth J.
Quinn
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Kenneth
J. Quinn
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Vice
President, General Counsel,
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Secretary
and Treasurer
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Dated: March
12, 2009
2
Exhibit
99.1
MIDDLESEX
WATER COMPANY REPORTS
2008
FINANCIAL RESULTS
Annual
Revenues Up $4.9 Million from 2007
ISELIN,
NJ, March 12, 2009
- - Middlesex Water Company (NASDAQ:MSEX) a provider of water, wastewater
and related services in New Jersey and Delaware, today announced operating
revenue of $91.0 million for the year ended December 31, 2008, compared to
operating revenue of $86.1 million in 2007. Net income for the year ended
December 31, 2008 was $12.2 million, up from $11.8 million for the same period
in 2007. Earnings applicable to common stock for the year ended December 31,
2008, were $12.0 million, or $0.90 per basic share, compared with $11.6 million,
or $0.88 per basic share, in 2007. On a fully diluted basis, earnings per share
were $0.89 for 2008, compared to $0.87 per share in 2007.
Middlesex
Water President and Chief Executive Officer Dennis W. Doll said, “Despite the
deepening uncertainties and volatility in the marketplace, we were able to
achieve moderate growth in revenues, customers and earnings per share in 2008.
Revenues in our Middlesex system increased as a result of rate relief
implemented in late 2007. We realized improved water sales in our Delaware
system, Tidewater Utilities, Inc. and our regulated wastewater operations in
Delaware contributed to increased revenues due to customer growth. Although we
are seeing some impact from our nation’s economic challenges on the business in
the form of moderately reduced water consumption for industrial, commercial and
residential purposes, we remain focused on maintaining operational integrity and
continuing to improve service to customers through investments in infrastructure
and technology. Our mature regulatory model, reasonably predictable revenue
stream and stable customer base are all elements of stability in an otherwise
unstable economic environment,” he added.
2008 Operating
Results
Consolidated
operating revenues rose $4.9 million, or 5.7% over the same period in 2007.
Revenues in our Middlesex system increased by $4.2 million as result of a 9.1%
base rate increase implemented in October 2007. Middlesex revenues decreased
$1.1 million due to lower consumption by our customers during
2008. In Delaware, water sales improved by $0.8
million. We realized additional revenue of $1.2 million as a result
of an additional 12% base rate increase granted to Tidewater in February 2007
and additional Distribution System Improvement Charge increases approved in
January and July 2008. Revenues from regulated wastewater operations increased
$0.2 million due to customer growth.
Fees
charged for initial connection to our DE water system were $0.4 million lower in
2008. This is attributed to a slowing of new residential and commercial
development in our Delaware service territories. Fees for managing
the City of Perth Amboy water and wastewater systems were $0.5 million higher
than the same period in 2007, due mostly to scheduled fixed fee increases
inherent in the contract. Revenues from regulated wastewater
operations in DE increased $0.2 million due to customer growth.
Total
operations and maintenance expenses for the year ended December 31, 2008
increased $2.7 million, or 5.8%, from 2007 largely due to labor and benefits
costs, which increased $1.3 million. Water production costs were $0.3 million
higher in 2008, over 2007. The cost to operate wastewater facilities in Delaware
increased by $0.3 million as a result of an increased number of wastewater
treatment facilities in operation in Delaware. Costs for service claims under
our water and sewer line maintenance program were $0.1 million higher due in
part to a 9.4% increase in the number of subscribers in the program during 2008.
Depreciation
expense for 2008 rose by $0.4 million or 5.1% due to a higher level of utility
plant in service. Other taxes increased by $0.5 million generally reflecting
additional taxes on higher taxable gross revenues, payroll and real
estate.
Fourth Quarter
2008
For
the three month period ended December 31, 2008, operating revenues increased to
$21.5 million, up from $21.2 million, for the same period in 2007. This increase
was largely due to rate relief, customer growth and increased water consumption
in our Delaware system. Total operating expenses increased to $17.0 million, up
from $16.3 million for the same period in 2007.
Net
income decreased to $1.9 million, down from $2.6 million, in 2007. The
decrease of $0.7 million was primarily due to the sale of certain water service
rights in Delaware in 2007, that were not expected to recur in 2008, and
increased labor and benefits costs including a reduction in the cash surrender
value of life insurance policies due to financial market
conditions.
Company Quarterly
Dividend
Middlesex
Water paid a quarterly dividend of $0.1775 per share on the Common Stock on
March 2, 2009, to stockholders of record as of February 13, 2009. The Company
has paid cash dividends in varying amounts continually since 1912.
About Middlesex Water
Company
Middlesex
Water Company, organized in 1897, is a water utility serving customers in
central and southern New Jersey and in the State of Delaware. The Company and
its New Jersey subsidiaries -- Pinelands Water Company and Pinelands Wastewater
Company -- are subject to the regulations of the Board of Public Utilities of
the State of New Jersey. Middlesex Water Company operates the water and
wastewater utilities for the City of Perth Amboy through its subsidiary, Utility
Service Affiliates (Perth Amboy) Inc. Middlesex Water also provides
contract operations services and a service line maintenance program through its
non-regulated subsidiary, Utility Service Affiliates, Inc. The
Company’s regulated Delaware subsidiaries, Tidewater Utilities, Inc., together
with Southern Shores Water Company and Tidewater Environmental Services Inc.,
are subject to the regulations of the Public Service Commission in Delaware.
White Marsh Environmental Systems, Inc. operates small water and wastewater
systems under contract on a non-regulated basis in Delaware. These
companies are also subject to various Federal and State regulatory agencies
concerning water, and wastewater effluent, quality standards.
For
additional information regarding Middlesex Water Company, visit the Company’s
web site at www.middlesexwater.com
or call (732) 634-1500.
This
release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, among
others, our long-term strategy and expectations, the status of our
acquisition program, the impact of our acquisitions, the impact of current and
projected rate requests and the impact of our capital program on our
environmental compliance. 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,
unfavorable weather conditions, the success of certain cost containment
initiatives, changes in regulations or regulatory treatment, availability and
the cost of capital, the success of growth initiatives and other factors
discussed in our filings with the Securities and Exchange
Commission.
Contact:
Bernadette
Sohler, Vice President – Corporate Affairs
Middlesex
Water Company
1500
Ronson Road
Iselin,
New Jersey 08830
www.middlesexwater.com
(732)
638-7549
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MIDDLESEX
WATER COMPANY
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CONSOLIDATED
STATEMENTS OF INCOME
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(In
thousands except per share amounts)
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Years
Ended December 31,
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2008
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2007
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2006
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Operating
Revenues
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$ | 91,038 | $ | 86,114 | $ | 81,061 | ||||||
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Operating
Expenses:
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Operations
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44,782 | 42,117 | 39,799 | |||||||||
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Maintenance
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4,147 | 4,123 | 3,546 | |||||||||
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Depreciation
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7,922 | 7,539 | 7,060 | |||||||||
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Other
Taxes
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10,168 | 9,664 | 9,338 | |||||||||
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Total
Operating Expenses
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67,019 | 63,443 | 59,743 | |||||||||
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Operating
Income
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24,019 | 22,671 | 21,318 | |||||||||
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Other
Income (Expense):
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Allowance
for Funds Used During Construction
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667 | 537 | 632 | |||||||||
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Other
Income
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906 | 1,153 | 160 | |||||||||
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Other
Expense
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(271 | ) | (163 | ) | (18 | ) | ||||||
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Total
Other Income, net
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1,302 | 1,527 | 774 | |||||||||
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Interest
Charges
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7,057 | 6,619 | 7,012 | |||||||||
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Income
before Income Taxes
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18,264 | 17,579 | 15,080 | |||||||||
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Income
Taxes
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6,056 | 5,736 | 5,041 | |||||||||
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Net
Income
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12,208 | 11,843 | 10,039 | |||||||||
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Preferred
Stock Dividend Requirements
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218 | 248 | 248 | |||||||||
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Earnings
Applicable to Common Stock
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$ | 11,990 | $ | 11,595 | $ | 9,791 | ||||||
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Earnings
per share of Common Stock:
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Basic
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$ | 0.90 | $ | 0.88 | $ | 0.83 | ||||||
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Diluted
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$ | 0.89 | $ | 0.87 | $ | 0.82 | ||||||
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Average
Number of
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Common
Shares Outstanding :
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Basic
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13,317 | 13,203 | 11,844 | |||||||||
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Diluted
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13,615 | 13,534 | 12,175 | |||||||||
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Cash
Dividends Paid per Common Share
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$ | 0.703 | $ | 0.693 | $ | 0.683 | ||||||