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: November 6, 2013
MIDDLESEX WATER COMPANY
(Exact name of registrant as specified in its charter)
| NEW JERSEY | 0-422 | 22-1114430 |
| (State or other jurisdiction of | (Commission | (I.R.S. Employer |
| incorporation or organization) | File Number) | Identification No.) |
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 November 6, 2013, Middlesex Water Company (the "Company") announced its financial results for the third quarter ended September 30, 2013. 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
| Exhibit | |
| Number | Description of Document |
| 99.1 | Press Release and income statement issued by Middlesex Water Company, dated November 6, 2013 announcing Third Quarter 2013 Financial Results. |
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.
| MIDDLESEX WATER COMPANY | |
| (Registrant) | |
| s/Kenneth J. Quinn | |
| Kenneth J. Quinn | |
| Vice President, General Counsel, | |
| Secretary and Treasurer |
Dated: November 6, 2013
MIDDLESEX WATER COMPANY ANNOUNCES THIRD QUARTER
2013 FINANCIAL RESULTS
November 6, 2013 -- ISELIN, NJ -- Middlesex Water Company (NASDAQ: MSEX) ("Middlesex" or the "Company") today reported third quarter operating revenues of $31.3 million compared to $32.4 million for the same period in 2012. Net income for the quarter decreased to $5.8 million from $6.1 million in the same quarter of 2012. Earnings per basic and diluted share for the quarter were $0.36, compared to $0.39 and $0.38, respectively, for the same period in 2012.
Third Quarter Operating Results
Operating revenues for the third quarter decreased $1.1 million from the same period in 2012. Revenues in the Middlesex system decreased $1.3 million, primarily due to greater precipitation than expected during the third quarter 2013; decreased demand related to Hess Corporation (“Hess”), Middlesex’s largest customer, ceasing its oil refining operations at its Port Reading, New Jersey facility in February 2013 and decreased contract sales to municipalities of $0.6 million, primarily due to loss of the Borough of Sayreville, New Jersey (“Sayreville”) as a wholesale contract customer in August 2013 due to expansion of the Borough’s own supply and treatment capability. Partially, and positively offsetting these factors were the full quarter effect of the base rate increase that went into effect July 2012 in the Middlesex system and $0.1 million of increased revenues realized by our Tidewater system in Delaware earned through new water customer connections.
Operation and maintenance expenses for the three months ended September 30, 2013 decreased $0.5 million from the same period in 2012. This was attributable primarily to a $0.6 million decrease in employee benefit expenses prompted by an amendment to Middlesex’s postretirement medical benefit plan which further limits eligibility for benefits and increases contributions by future retirees.
Middlesex Water Chairman and Chief Executive Officer Dennis Doll said, "Despite the decreased demand for water prompted by the loss of two large customers, we reduced costs, continued to invest in water infrastructure and stayed focused on delivering on our growth strategy. In addition to increasing efficiencies to better serve our customers, we recently announced the acquisition of a 600-customer wastewater company in Delaware, achieved milestones in our non-regulated partnership projects such as our biogas renewable energy project in Ridgewood, New Jersey and a leachate treatment contract to benefit the County of Monmouth, New Jersey. In addition, we are expanding our contract operations business into the military market with the recent contract award from the U.S. Department of Defense to privatize the water system operations of Dover Air Force Base in Dover, Delaware. In all these endeavors, controlling costs, protecting the environment and enhancing service to customers is critical to our continued success,” said Doll.
Nine Month Operating Results
For the nine months ended September 30, 2013, revenues were $87.4 million, as compared to $83.3 million for the same period in 2012. Revenues in our Middlesex system increased $2.0 million, primarily due to the effect of the base rate increase granted in July 2012. Offsetting the increase was less customer demand resulting from the loss of Hess, Middlesex’s largest customer; greater than expected precipitation events during the second and third quarters of 2013 and loss of Sayreville as a customer in August 2013. Revenues in our Tidewater system increased $0.4 million, primarily due to new customer connections as well final rate increases that went into effect in June 2012. Non-regulated contract operations revenues increased by $1.3 million for our contracts serving the City of Perth Amboy, New Jersey and the Borough of Avalon, New Jersey (“Avalon”).
Operation and maintenance expenses increased $1.0 million from the same period in 2012, primarily due to increased labor costs, higher water treatment costs caused by increased precipitation, a higher number of main breaks in 2013 as compared to 2012 and expenditures for contract operations serving Avalon, New Jersey which commenced July 1, 2012.
Net income increased $1.8 million from the same period in 2012. Basic and diluted earnings per share for the nine months were $0.84 and $0.83, respectively compared to $0.73 in 2012.
Quarterly Dividend Increased for 41st Consecutive Year
On October 22, 2013, the Company's Board of Directors approved an increase in the quarterly cash dividend on common stock to $0.1900 from $0.1875. The new dividend rate is payable December 2, 2013 to shareholders of record as of November 15, 2013. This dividend increase raises the annual dividend to $0.76 from $0.75 per share of common stock and represents the 41st consecutive year of annual dividend increases.
About Middlesex Water Company
Middlesex Water Company, organized in 1897, provides regulated and unregulated water and wastewater utility services primarily in New Jersey and Delaware through various subsidiary companies. For additional information regarding Middlesex Water Company including information about the Company's Dividend Reinvestment and Common Stock Purchase Plan, 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
(732) 638-7549
www.middlesexwater.com
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Operating Revenues | $ | 31,285 | $ | 32,353 | $ | 87,424 | $ | 83,300 | ||||||||
| Operating Expenses: | ||||||||||||||||
| Operations and Maintenance | 15,120 | 15,600 | 45,698 | 44,740 | ||||||||||||
| Depreciation | 2,772 | 2,629 | 8,205 | 7,759 | ||||||||||||
| Other Taxes | 3,123 | 3,281 | 9,215 | 8,871 | ||||||||||||
| Total Operating Expenses | 21,015 | 21,510 | 63,118 | 61,370 | ||||||||||||
| Operating Income | 10,270 | 10,843 | 24,306 | 21,930 | ||||||||||||
| Other Income (Expense): | ||||||||||||||||
| Allowance for Funds Used During Construction | 104 | 110 | 230 | 383 | ||||||||||||
| Other Income | 27 | 106 | 124 | 423 | ||||||||||||
| Other Expense | (1 | ) | (4 | ) | (21 | ) | (155 | ) | ||||||||
| Total Other Income, net | 130 | 212 | 333 | 651 | ||||||||||||
| Interest Charges | 1,541 | 1,808 | 4,234 | 4,941 | ||||||||||||
| Income before Income Taxes | 8,859 | 9,247 | 20,405 | 17,640 | ||||||||||||
| Income Taxes | 3,052 | 3,109 | 6,940 | 5,970 | ||||||||||||
| Net Income | 5,807 | 6,138 | 13,465 | 11,670 | ||||||||||||
| Preferred Stock Dividend Requirements | 44 | 52 | 147 | 155 | ||||||||||||
| Earnings Applicable to Common Stock | $ | 5,763 | $ | 6,086 | $ | 13,318 | $ | 11,515 | ||||||||
| Earnings per share of Common Stock: | ||||||||||||||||
| Basic | $ | 0.36 | $ | 0.39 | $ | 0.84 | $ | 0.73 | ||||||||
| Diluted | $ | 0.36 | $ | 0.38 | $ | 0.83 | $ | 0.73 | ||||||||
| Average Number of | ||||||||||||||||
| Common Shares Outstanding : | ||||||||||||||||
| Basic | 15,882 | 15,741 | 15,839 | 15,717 | ||||||||||||
| Diluted | 16,117 | 16,004 | 16,093 | 15,980 | ||||||||||||
| Cash Dividends Paid per Common Share | $ | 0.1875 | $ | 0.1850 | $ | 0.5625 | $ | 0.5550 | ||||||||