SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File
For Quarter Ended: March 31, 1995 No. 0-422
MIDDLESEX WATER COMPANY
(Exact name of registrant as specified in its charter)
INCORPORATED IN NEW JERSEY 22-1114430
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1500 RONSON ROAD, ISELIN, NJ 08830
(Address of principal executive offices) (Zip Code)
(908) 634-1500
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities and Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that this registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 30 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the
Issuer's classes of common stock, as of the latest practicable
date:.
Class: Outstanding at March 31, 1995:
Common Stock, No Par Value 4,044,832
PART I. - FINANCIAL INFORMATION
MIDDLESEX WATER COMPANY
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Three Months
Ended March 31,
1995 1994
__________ __________
Operating Revenues $ 8,739,873 $ 8,569,432
__________ __________
Operating Expenses:
Operation and Maintenance 4,168,008 4,104,051
Depreciation 676,866 649,450
Taxes,other than Income Taxes 1,301,550 1,288,553
Federal Income Taxes 623,213 577,141
__________ __________
Total Operating Expenses 6,769,637 6,619,195
__________ __________
Utility Operating Income 1,970,236 1,950,237
Other Income(Expense)-Net (1,263) 410
__________ __________
Income before Interest Charges 1,968,973 1,950,647
Interest Charges 755,973 742,455
__________ __________
Net Income 1,213,000 1,208,192
Preferred Stock Dividend
Requirements 39,737 61,519
__________ __________
Earnings Applicable to
Common Stock $ 1,173,263 $ 1,146,673
__________ __________
Earnings per Share of
Common Stock $0.29 $0.29
__________ __________
Average Number of Common
Shares Outstanding 4,037,147 3,983,525
Cash Dividends Paid per
Common Share $0.27 $0.26 1/4
See Notes to Consolidated Financial Statements
MIDDLESEX WATER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS AND OTHER DEBITS
March 31, December 31,
1995 1994
___________ ____________
(Unaudited)
UTILITY PLANT:
Water Production $ 25,755,520 $ 25,612,023
Transmission and Distribution 94,006,270 93,334,300
General 11,266,147 11,202,947
Construction Work in Progress 451,035 262,249
___________ ____________
TOTAL 131,478,972 130,411,519
Less Accumulated Depreciation 22,204,975 21,668,506
___________ ____________
UTILITY PLANT-NET 109,273,997 108,743,013
___________ ____________
NONUTILTY PROPERTY-NET 465,312 400,209
___________ ____________
CURRENT ASSETS:
Cash and Cash Equivalents 5,611,466 3,854,186
Marketable Securities 954,086 933,298
Accounts Receivable(net of allowance
for doubtful accounts) 3,243,666 4,236,800
Unbilled Revenues 2,109,494 2,143,795
Materials and Supplies(at average cost) 1,046,685 991,116
Prepayments 384,449 503,808
___________ ____________
TOTAL CURRENT ASSETS 13,349,846 12,663,003
___________ ____________
DEFERRED CHARGES:
Regulatory Assets 5,908,531 5,818,530
Unamortized Debt Expense 3,059,979 3,082,420
Preliminary Survey and Investigation Charges 655,587 653,328
Other 822,739 1,052,255
___________ ___________
TOTAL DEFFERED CHARGES 10,446,836 10,606,533
___________ ___________
TOTAL $133,535,991 $132,412,758
___________ ___________
See Notes to Consolidated Financial Statements
MIDDLESEX WATER COMPANY
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND OTHER CREDITS
March 31, December 31,
1995 1994
Unaudited)
___________ ___________
CAPITALIZATION(see accompanying statements) $ 97,355,761 $ 97,141,200
CURRENT LIABILITIES:
Accounts Payable 1,491,005 1,616,945
Customer Deposits 322,351 308,174
Taxes Accrued 6,067,494 4,444,372
Interest Accrued 413,522 1,134,223
Other 899,604 877,283
___________ ___________
TOTAL CURRENT LIABILITIES 9,193,976 8,380,997
___________ ___________
DEFERRED CREDITS:
Customer Advances for Construction 8,994,586 9,199,363
Accumulated Deferred Investment Tax Credits 2,434,173 2,452,096
Accumulated Deferred Federal Income Taxes 9,780,215 9,767,241
Other 1,605,282 1,312,961
___________ ___________
TOTAL DEFERRED CREDITS 22,814,256 22,731,661
___________ ___________
CONTRIBUTIONS IN AID OF CONSTRUCTION 4,171,998 4,158,900
___________ ___________
TOTAL $133,535,991 $132,412,758
___________ ___________
See Notes to Consolidated Financial Statements
MIDDLESEX WATER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION AND RETAINED EARNINGS
March 31, December 31,
1995 1994
(Unaudited)
___________ ___________
CAPITALIZATION:
Common Stock,No Par Value
Authorizied,6,000,000 Shares
Outstanding Shares-1995,4,044,832
1994,4,030,834 $ 27,405,643 $ 27,151,673
Retained Earnings 17,783,813 17,699,422
___________ ___________
TOTAL COMMON EQUITY 45,189,456 44,851,095
___________ ___________
Cumulative Preference Stock,No Par Value
Authorized,100,000 Shares;Outstanding,None.
Cumulative Preferred Stock,No Par Value,
Authorized,69,418 Shares
Convertible:
Outstanding,$7 Series-14,901 Shares 1,564,605 1,564,605
Nonredeemable:
Outstanding,$7 Series-1995,1,017 Shares
1994,2,255 Shares 101,700 225,500
Outstanding,$4.75 Series-10,000 Shares 1,000,000 1,000,000
___________ ___________
TOTAL CUMULATIVE PREFERRED STOCK 2,666,305 2,790,105
___________ ___________
Long-term Debt:
First Mortgage Bonds:
7.25%,Series R,due July 1,2021 6,000,000 6,000,000
5.20%,Series S,due October 1,2022 12,000,000 12,000,000
5.25%,Series T,due October 1,2023 6,500,000 6,500,000
6.40%,Series U,due February 1,2009 15,000,000 15,000,000
5.25%,Series V,due February 1,2029 10,000,000 10,000,000
___________ ___________
TOTAL LONG-TERM DEBT 49,500,000 49,500,000
___________ ___________
TOTAL CAPITALIZATION $ 97,355,761 $ 97,141,200
___________ ___________
Three Months Ended Year Ended
March 31, December 31,
1995 1994
(Unaudited)
___________ ___________
RETAINED EARNINGS:
BALANCE AT BEGINNING OF PERIOD $ 17,699,422 $ 16,615,466
Net Income 1,213,000 5,495,372
___________ ___________
TOTAL 18,912,422 22,110,838
___________ ___________
Cash Dividends:
Cumulative Preferred Stock 39,303 180,006
Common Stock 1,089,306 4,231,410
___________ ___________
TOTAL DEDUCTIONS 1,128,609 4,411,416
___________ ___________
BALANCE AT END OF PERIOD $ 17,783,813 $ 17,699,422
___________ ___________
See Notes to Consolidated Financial Statements
MIDDLESEX WATER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
1995 1994
___________ ___________
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income $ 1,213,000 $ 1,208,192
Adjustments To Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 676,866 649,450
Amortization of Deferred Charges 45,981 101,585
Provision for Deferred Income Taxes 12,974 300,820
Amortization of Investment Tax Credit (17,923) (17,923)
Changes in Current Assets and Liabilities:
Accounts Receivables 993,134 202,989
Materials and Supplies (55,569) (33,786)
Accounts Payable (125,940) (273,052)
Accrued Income Taxes 1,623,122 1.225,696
Accrued Interest (720,701) (27,878)
Unbilled Revenues 34,301 76,100
Other-Net 207,339 91,919
___________ ___________
NET CASH PROVIDED BY OPERATING ACTIVITIES 3,886,584 3,504,112
___________ ___________
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility Plant Expenditures (1,207,850) (554,647)
Marketable Securities (20,788) 0
Preliminary Survey and Investigation Charges (2,259) (7,714)
Other-Net 83,327 (48,978)
___________ ___________
NET CASH USED IN INVESTING ACTIVITIES (1,147,570) (611,339)
___________ ___________
CASH FLOW FROM FINANCING ACTIVITIES:
Redemption of Long-term Debt 0 (12,500,000)
Issuance of Long-term Debt 0 25,000,000
Short-term Bank Borrowings(Repayments) 0 (8,500,000)
Long-term Debt Issuance Expense (8,000) (1,132,943)
Temporary Cash Investments-Restricted 216,384 217,500
Proceeds from Issuance of Common Stock 253,970 214,780
Payment of Preferred Dividends (39,303) (54,566)
Payment of Common Dividends (1,089,306) (1,045,099)
Customer Advances-Net (191,679) 22,679
Redemption of Preferred Stock (123,800) (1,224,000)
___________ ___________
NET CASH PROVIDED FROM FINANCING ACTIVITIES (981,734) 998,351
___________ ___________
NET CHANGE IN CASH AND CASH EQUIVALENTS 1,757,280 3,891,124
___________ ___________
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 3,854,186 1,146,245
___________ ___________
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 5,611,466 $ 5,037,369
___________ ___________
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Cash Paid During the Period for:
Interest $ 1,442,625 $ 740,081
Income Taxes $ 61,000 $ 117,000
See Notes to Consolidated Financial Statements
MIDDLESEX WATER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Summary of Significant Accounting Policies
Consolidation - Middlesex Water Company (Middlesex or the Company) is
the parent company of Tidewater Utilities, Inc. (Tidewater or Delaware).
White Marsh Environmental Systems, Inc., a corporation formed during the
second quarter of 1994, is a wholly-owned subsidiary of Tidewater. The
financial statements for Middlesex and its wholly-owned subsidiary are
reported on a consolidated basis.
The consolidated notes accompanying the 1994 Form 10-K are applicable to
this report and, in the opinion of the Company, the accompanying
unaudited consolidated financial statements contain all adjustments
(consisting of only normal recurring accruals) necessary to present
fairly the financial position as of March 31, 1995 and the results of
operations and its cash flows for the periods ended March 31, 1995 and
1994. Information included in the Balance Sheet as of December 31, 1994
has been derived from the Company's audited financial statements
included in its annual report on Form 10-K for the year ended December
31, 1994.
Note 2 - Regulatory Matters
On February 2, 1995, the Company filed a petition with the New Jersey
Board of Public Utilities (BPU) seeking approval for a Purchased Water
Adjustment Clause (PWAC). A PWAC is a regulatory vehicle that allows
New Jersey water utilities to pass along to, or credit, customers'
changes in the cost of purchasing water, without the need for filing a
full base rate case. The Company is seeking recovery of approximately
$0.1 million of increased costs. A decision on this matter is expected
to be rendered during the second quarter of 1995.
Note 3 - Capitalization
Preferred Stock - During the first quarter, the Company purchased and
retired 1,238 shares of the nonredeemable $7.00 Series at the stated
purchase price of $100 per share.
Common Stock - During the three months ended March 31, 1995, 13,998
common shares ($0.3 million) were issued under the Company's Dividend
Reinvestment and Common Stock Purchase Plan.
Note 4 - Commitments
On April 21, 1995, the Company completed the asset purchase of a 2,200
customer water utility and a 2,200 customer waste water utility in
Burlington County, New Jersey. The newly acquired systems are called
Pinelands Water Company and Pinelands Sewer Company. These systems will
not have a material impact on the Company's revenues and will require
substantial rate increases to attain profitability.
MIDDLESEX WATER COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE MONTHS
ENDED MARCH 31, 1995 COMPARED TO MARCH 31, 1994
Revenues rose by $0.2 million or 2.0%. Higher consumption levels and
customer connection fees from Tidewater operations were the primary
reason for the increase. Delaware customer accounts grew by 2.4% during
the quarter.
Operation and Maintenance expenses increased $0.1 million or 1.6% due to
chemicals, insurance, normal maintenance and labor. These higher
expenses were partially offset by lower purchased water and power costs.
Depreciation expense increased by 4.2%, reflecting plant additions of
almost $6.0 million since March 31, 1994. Federal Income Tax rose by
8.0% due to a higher level of taxable income from Delaware operations.
Although Net Income was at the same level, Earnings Applicable to Common
Stock rose by 2.3% as a result of lower preferred stock outstanding.
Capital Resources: The consolidated capital program for 1995, estimated
at $7.2 million, includes $5.0 million for routine plant additions and
$2.2 million for special plant additions. The $5.0 million for routine
items includes $1.6 million for mains, $0.6 million for service lines,
$0.5 million for meters and $2.3 million for various other items. The
$2.2 million for special plant additions includes $1.1 million for water
production facilities in Delaware, $0.3 million for treatment of well
supplies, $0.2 million for treatment plant expansion, $0.1 million for
Robinson's Branch Dam Project, and $0.5 million for South River Basin
Regional Supply Project.
Liquidity: To finance the 1995 capital program, the Company will
utilize internally-generated cash and cash balances on hand at December
31, 1994. Capital expenditures of $1.2 million have been incurred
through March 31, 1995.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K:
Exhibits - None.
Reports on Form 8-K - None.
MIDDLESEX WATER COMPANY
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 by the undersigned thereto duly authorized.
MIDDLESEX WATER COMPANY
(Registrant)
Date: May 11, 1995 /Ernest C. Gere/
Ernest C. Gere
Senior Vice President and
Chief Financial Officer
UT
0000066004
MIDDLESEX WATER COMPANY
3-MOS
DEC-31-1995
MAR-31-1995
PER-BOOK
109,273,997
465,312
13,349,846
10,446,836
0
133,535,991
27,405,643
0
17,783,813
45,189,456
0
2,666,305
49,500,000
0
0
0
0
0
0
0
36,180,230
133,535,991
8,739,873
623,213
6,146,424
6,769,637
1,970,236
(1,263)
1,968,973
755,973
1,213,000
39,737
1,173,263
1,089,306
2,885,250
3,886,584
.29
.29
