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: July 30, 2010
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 July
30, 2010, Middlesex Water Company (the "Company") announced its financial
results for the second quarter ended June 30, 2010. 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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----------------------------------
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99.1
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Press
Release and income statement issued by Middlesex Water Company, dated July
30, 2010 announcing Second Quarter 2010 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: July
30, 2010
MIDDLESEX
WATER COMPANY REPORTS
FINANCIAL
RESULTS FOR SECOND QUARTER
ISELIN,
NJ, (July 30, 2010) Middlesex Water Company (NASDAQ:MSEX)
(“Middlesex” or the “Company”) today reported second quarter operating revenues
of $26.5 million compared to $23.1 million for the same period in 2009, an
increase of 15.0%. Net income for the quarter rose to $4.4 million
from $2.8 million in the same quarter of 2009, an increase of
55.4%. Earnings applicable to common stock for the quarter were $4.4
million, or $0.31 per basic share, compared with $2.8 million, or $0.21 per
basic share, in 2009. Diluted earnings per share for the quarter were
$0.31, compared to $0.21 in 2009. For the six months, ended June 30,
2010, net income increased $1.8 million or 42.2% from the same period in
2009.
Second Quarter Operating
Results
Consolidated
operating revenues for the three months ended June 30, 2010 increased $3.5
million from the same period in 2009. Revenues in our Middlesex
system in New Jersey rose $2.3 million, primarily due to a $0.9 million increase
in contract sales to municipalities driven by higher demand for water and the
effects of a March 2010 base rate increase. The base rate increase
also resulted in a $0.7 million increase in fixed-fee facilities
charges. Water sales to the residential, commercial and industrial
classes of customers increased $0.7 million, primarily from the effects of the
March 2010 base rate increase offset by decreased general metered service
customer consumption. Revenues from our Tidewater system in Delaware
increased $1.1 million, primarily due to greater demand for water by general
metered customers, a new bulk water contract and increased connection
fees.
Middlesex
Water Company Chairman, President and CEO Dennis W. Doll said, “We are
encouraged by a return to weather patterns late in the second quarter of 2010
that have been more favorable than the abnormal patterns experienced in 2009.
The improved weather helps position the company to capitalize on important
infrastructure investments made in 2009 and early 2010, which have been fully
reflected in the base rate increase approved in March. We continue to
be focused on controlling expenses and increasing efficiency through greater use
of technology as those initiatives have been coming on-line. A significant
milestone in our business systems transformation was achieved on June 29th when
we converted our customer care and billing system, also a project that was
afforded rate recognition by our regulators in the March 17th
increase,” added Doll.
Favorable
results for the three months ended June 30, 2010 increased net income by $1.6
million, compared to the same period in 2009. The increase in
earnings per share for the three months ended June 30, 2010, as compared to the
same period in 2009, resulting from increased net income was tempered by an
increase in the average number of common shares outstanding after the Company’s
sale of 1.9 million shares of common stock in a June 2010 public stock
offering.
Operation
and maintenance expenses for the three months ended June 30, 2010 increased $0.7
million from the same period in 2009. This was attributable in part to $0.1
million of costs incurred in connection with higher incidences of water main
breaks and leaks in our Middlesex system; increased purchased water costs of
$0.2 million driven by overall heightened demand in our Middlesex system; and
licensing and service costs of $0.2 million related to implementation of a
Company-wide enterprise resource planning technology platform in
2010.
Six Month Operating
Results
Consolidated
operating revenues for the six months ended June 30, 2010 increased $4.5 million
or 10.3% from the same period in 2009. Revenues in our Middlesex system
increased $2.7 million, primarily due to a $1.2 million increase in contract
sales to municipalities driven by higher demand and effects of the March 2010
base rate increase. Other factors contributing were $1.1 million in
increased facilities charges primarily from the base rate increase; $0.2 million
in revenues through an approved purchased water adjustment clause and $1.7
million in increased revenues in our Tidewater system due to higher demand,
increased base rates, new customer growth and connection fees.
Operation
and maintenance expenses increased $1.2 million from the same period in
2009. This was attributable in part to $0.4 million of costs incurred in
connection with higher incidences of water main breaks and leaks in our
Middlesex system, increased purchased water costs of $0.4 million in our
Middlesex system driven by overall heightened demand in our Middlesex system and
$0.2 million in increased licensing and service costs related to implementation
of our Company- wide enterprise resource planning technology
platform.
Net
income increased $1.8 million or 42.2% from the same period in 2009. Basic
earnings per share increased to $0.43 for the six months ended June 30, 2010,
compared to $0.31 for the same period in 2009. Diluted earnings
per share increased to $0.42 for the six months ended June 30, 2010, compared to
$0.31 for the same period in 2009.
Company Quarterly
Dividend
The
Company’s Board of Directors declared a quarterly cash dividend of $0.1800 per
share, payable September 1, 2010 to common shareholders as of August 13,
2010. The Company has paid cash dividends in varying amounts
continually since 1912. Middlesex Water has a Dividend Reinvestment
Plan under which dividends and optional cash payments can be used to purchase
additional shares of Common stock.
Appointment of a Lead
Director
The
Company’s
Board of Directors also approved an amendment to the Company’s By-Laws to
provide for the appointment of a Lead Director, in view of the fact that Dennis
W. Doll serves as Chairman of the Board as well as President and Chief Executive
Officer. Jeffries Shein has been appointed by the Board to serve as such Lead
Director.
About Middlesex Water
Company
Middlesex Water Company is a provider
of water, wastewater and related services, primarily in New Jersey and
Delaware. Organized in 1897, the Company provides regulated and
unregulated water and wastewater utility services through various subsidiary
companies. 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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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
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(In
thousands except per share amounts)
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Three
Months Ended June 30,
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Six
Months Ended June 30,
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2010
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2009
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2010
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2009
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Operating
Revenues
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$ | 26,538 | $ | 23,083 | $ | 48,184 | $ | 43,665 | ||||||||
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Operating
Expenses:
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Operations
and Maintenance
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13,576 | 12,893 | 27,170 | 25,936 | ||||||||||||
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Depreciation
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2,236 | 2,111 | 4,439 | 4,196 | ||||||||||||
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Other
Taxes
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2,832 | 2,532 | 5,391 | 4,984 | ||||||||||||
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Total
Operating Expenses
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18,644 | 17,536 | 37,000 | 35,116 | ||||||||||||
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Operating
Income
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7,894 | 5,547 | 11,184 | 8,549 | ||||||||||||
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Other
Income (Expense):
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Allowance
for Funds Used During Construction
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348 | 241 | 642 | 482 | ||||||||||||
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Other
Income
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189 | 150 | 360 | 328 | ||||||||||||
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Other
Expense
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(33 | ) | (7 | ) | (53 | ) | (18 | ) | ||||||||
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Total
Other Income, net
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504 | 384 | 949 | 792 | ||||||||||||
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Interest
Charges
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1,882 | 1,766 | 3,306 | 3,158 | ||||||||||||
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Income
before Income Taxes
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6,516 | 4,165 | 8,827 | 6,183 | ||||||||||||
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Income
Taxes
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2,092 | 1,319 | 2,843 | 1,976 | ||||||||||||
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Net
Income
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4,424 | 2,846 | 5,984 | 4,207 | ||||||||||||
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Preferred
Stock Dividend Requirements
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52 | 52 | 104 | 104 | ||||||||||||
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Earnings
Applicable to Common Stock
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$ | 4,372 | $ | 2,794 | $ | 5,880 | $ | 4,103 | ||||||||
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Earnings
per share of Common Stock:
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Basic
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$ | 0.31 | $ | 0.21 | $ | 0.43 | $ | 0.31 | ||||||||
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Diluted
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$ | 0.31 | $ | 0.21 | $ | 0.42 | $ | 0.31 | ||||||||
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Average
Number of
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Common
Shares Outstanding :
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Basic
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13,972 | 13,434 | 13,756 | 13,424 | ||||||||||||
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Diluted
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14,235 | 13,697 | 14,019 | 13,687 | ||||||||||||
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Cash
Dividends Paid per Common Share
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$ | 0.1800 | $ | 0.1775 | $ | 0.3600 | $ | 0.3550 | ||||||||