Middlesex Water Company Reports Second Quarter Financial Results
ISELIN, NJ -- (MARKET WIRE) -- 08/07/07 -- Middlesex Water Company, (NASDAQ: MSEX), a provider of water and wastewater and related services in New Jersey and Delaware, today reported higher operating revenues and net income for the quarter ended June 30, 2007.
Second Quarter Operating Results
Consolidated operating revenues for the second quarter rose to $21.7 million or 3.4%, compared to $21.0 million for the same period in 2006. This was largely due to customer growth and rate relief in our Delaware service territories.
Net income increased to $3.3 million from $3.0 million. Middlesex Water reported earnings applicable to common stock of $3.3 million, or $0.25 per basic share, for the quarter ended June 30, 2007, compared with $2.9 million, or $0.25 per basic share, in 2006. On a fully diluted basis, earnings per share were $0.24 for 2007, compared to $0.25 per share for the same period in 2006. Diluted earnings per share decreased slightly due to a higher number of shares outstanding. Middlesex sold and issued 1.5 million shares of new common stock in November 2006.
Middlesex Water Company CEO, Dennis W. Doll, said, "Second quarter results are generally in line with our expectations. In April, we filed for an $8.9 million or 16.5% increase for our Middlesex system in New Jersey. We expect a decision in this matter by the first quarter of 2008. We continue to focus on controlling operating costs and generating further efficiencies. To that end, in the second quarter, we consolidated our finance and accounting functions into a single location and sold an office building that had not been part of our core utility business for a gain of $0.2 million."
Operation and maintenance expenses for the three months ended June 30, 2007 increased $0.4 million or 3.5% with labor costs up $0.2 million due to wage increases and increased staffing to serve continued growth in our Delaware systems. Water production costs were $0.2 million higher due to increased sales in Delaware and higher unit costs for water, power and treatment costs in New Jersey.
"We continue to grow our regulated water and wastewater utility businesses as well as our non-regulated services," added Doll. "During the second quarter, we completed the acquisition of the wastewater system of the Town of Milton, DE. This system is being operated by our Delaware wastewater utility, Tidewater Environmental Services, Inc. and is intended to expand over the next several years to accommodate growth in the surrounding area."
The company is involved in several initiatives designed to help control operating costs, help facilitate profitable growth and improve service to customers. These include projects to address long-term water treatment and distribution infrastructure needs in New Jersey and to implement a long-term technology strategy.
Board Declares Quarterly Dividend
The Company's Board of Directors declared a quarterly cash dividend of $0.1725 per share, payable September 4, 2007 to common shareholders as of August 15, 2007. 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.
About Middlesex Water Company
Middlesex Water Company, organized in 1897, provides regulated and unregulated water and wastewater utility services in New Jersey and Delaware 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.
MIDDLESEX WATER COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2007 2006 2007 2006
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Operating Revenues $ 21,744,615 $ 21,037,055 $ 40,732,188 $ 39,267,201
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Operating Expenses:
Operations 10,143,070 10,011,895 20,335,222 19,658,026
Maintenance 1,036,689 794,248 2,014,508 1,533,232
Depreciation 1,874,539 1,712,740 3,719,919 3,381,133
Other Taxes 2,411,198 2,369,072 4,662,273 4,572,525
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Total Operating
Expenses 15,465,496 14,887,955 30,731,922 29,144,916
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Operating Income 6,279,119 6,149,100 10,000,266 10,122,285
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Other Income:
Allowance for
Funds Used
During
Construction 140,364 115,388 252,592 228,025
Other Income 282,051 40,840 508,196 98,778
Other Expense (7,899) (12,519) (12,498) (14,258)
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Total Other Income,
net 414,516 143,709 748,290 312,545
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Interest Charges 1,697,523 1,808,118 3,081,230 3,323,116
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Income before
Income Taxes 4,996,112 4,484,691 7,667,326 7,111,714
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Income Taxes 1,681,586 1,516,855 2,583,271 2,331,514
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Net Income 3,314,526 2,967,836 5,084,055 4,780,200
Preferred Stock
Dividend
Requirements 61,946 61,946 123,893 123,893
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Earnings Applicable
to Common Stock $ 3,252,580 $ 2,905,890 $ 4,960,162 $ 4,656,307
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Earnings per share
of Common Stock:
Basic $ 0.25 $ 0.25 $ 0.38 $ 0.40
Diluted $ 0.24 $ 0.25 $ 0.37 $ 0.40
Average Number of
Common Shares
Outstanding:
Basic 13,191,257 11,610,579 13,183,536 11,602,149
Diluted 13,522,397 11,941,719 13,514,676 11,933,289
Cash Dividends Paid
per Common Share $ 0.1725 $ 0.1700 $ 0.3450 $ 0.3400
Contact: Bernadette Sohler Vice President - Corporate Affairs 732-634-1500 Middlesex Water Company 1500 Ronson Road Iselin, New Jersey 08830 www.middlesexwater.com