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 2, 2007
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:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
8.01 Other Events
Announcement
of Middlesex Water Company Third Quarter 2007 Earnings as set forth in the
press
release, which is attached as Exhibit 99.1 and incorporated herein by
reference.
Item
9.01 Financial Statements and Exhibits
(d) Exhibits.
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Exhibit
No.
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Description
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99.1
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Press
release, dated November 2, 2007 issued by Middlesex Water Company
announcing its financial results for the three and nine months ended
September 30, 2007.
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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: November
2, 2007
2
MIDDLESEX
WATER COMPANY ANNOUNCES 23.5% INCREASE
IN
NET INCOME
Drive
for Efficiencies Continues in Third Quarter as Company
Consolidates
Customer
Service Functions in New Jersey
ISELIN,
NJ, (November 2,
2007) Middlesex Water Company (NASDAQ Global Select
Market:MSEX), a provider of water and wastewater services in New Jersey and
Delaware, today reported higher operating revenues and net income for the
quarter ended September 30, 2007.
Third
Quarter 2007 Results
Consolidated
operating revenues for the third quarter rose to $24.1 million, up 6.6%,
compared to $22.6 million for the same period in 2006. This was
largely due to extended dry weather, customer growth and rate relief in our
Delaware territories served by Tidewater Utilities, Inc. A base
rate increase of an additional 12% granted to Tidewater
in February provided an additional $0.7 million in
revenues.
Earnings
applicable to common stock rose to $4.1 million for the quarter ended September
30, 2007, up from $3.3 million for the same period in 2006. Net
income increased 23.5% to $4.2 million from $3.4 million. Due to a
higher number of shares outstanding, basic earnings per share grew by 6.8%
to
$0.31 per share, from $0.29 per share, for the same period in
2006. Diluted earnings per share were also $0.31, compared to $0.28,
in 2006.
Middlesex
Water Company CEO, Dennis W. Doll, said, “Seeking and obtaining appropriate rate
relief while simultaneously implementing operating efficiencies is positioning
us to better deliver value for our shareholders. We are pleased with
our third quarter results as well as with the most recent decision from the
New
Jersey Board of Public Utilities for a 9.1% or $5.0 million increase in base
water rates, which became effective October 26, 2007. We continue to
seek ways to operate more efficiently, and, in the third quarter, began the
consolidation of our customer service functions into a single location in
New
Jersey as a more efficient and effective approach to providing high quality
service to our customers.” This consolidation was completed as of
November 1st.
Total
operating expenses for the three months ended September 30, 2007 increased
to
$16.4 million, up 5.4%, from $15.8 million in 2006. This increase was
attributed to a $0.3 million increase in water production costs due to increased
sales in Delaware and higher unit costs for water and electric power costs
in
New Jersey. Repair costs for water main breaks were $0.1 million
higher than the same period in 2006. All other expense categories
increased by $0.2 million.
Nine-Month
Results
For
the
nine-month period ended September 30, 2007, operating revenues increased
to
$64.9 million, up 4.8% from $61.9 million, for the same period in 2006. This
increase was largely due to rate relief, customer growth and higher consumption,
as well as increased revenues from our regulated and non-regulated wastewater
operations in Delaware. Total operating expenses increased to $47.1 million,
up
5.0% from $44.9 million for the same period in 2006.
Net
income increased to $9.2 million, up 13.4% from $8.2 million, in
2006. Earnings applicable to common stock were $9.1 million, compared
to $8.0 million for the same period in 2006. Basic and diluted earnings per
share remained at $0.69 and $0.68 in 2007 for both, respectively, the
same as in 2006.
“Having
received recent approvals to operate in Maryland, combined with ongoing
negotiations in several states, we are confident in our ability to expand
our
footprint and grow our regulated water and wastewater utility businesses
as well
as our non-regulated services,” added Doll.
Board
Declares Quarterly Dividend
The
Company’s Board of Directors has approved an increase in the Company's quarterly
cash dividend to $0.1750 from $0.1725. The new dividend rate is
payable December 3, 2007 to shareholders of record as of November 15, 2007.
This
dividend increase raises the annual dividend to $0.70 from $0.69 per share
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.
Contact:
Bernadette
Sohler, Vice President – Corporate Affairs
Middlesex
Water Company
1500
Ronson Road
Iselin,
New Jersey 08830
www.middlesexwater.com
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MIDDLESEX
WATER COMPANY
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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||||||||||||||||
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(Unaudited)
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||||||||||||||||
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(In
thousands except per share amounts)
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||||||||||||||||
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Three
Months Ended September 30,
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Nine
Months Ended September 30,
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|||||||||||||||
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2007
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2006
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2007
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2006
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Operating
Revenues
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$ |
24,135
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$ |
22,632
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$ |
64,868
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$ |
61,899
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||||||||
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Operating
Expenses:
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||||||||||||||||
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Operations
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10,915
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10,446
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31,250
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30,104
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||||||||||||
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Maintenance
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1,046
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907
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3,060
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2,440
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Depreciation
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1,887
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1,883
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5,607
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5,264
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Other
Taxes
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2,558
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2,537
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7,221
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7,110
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Total
Operating Expenses
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16,406
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15,773
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47,138
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44,918
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Operating
Income
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7,729
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6,859
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17,730
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16,981
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Other
Income:
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||||||||||||||||
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Allowance
for Funds Used During Construction
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168
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170
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421
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398
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Other
Income
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100
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41
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608
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140
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Other
Expense
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(9 | ) | (6 | ) | (21 | ) | (20 | ) | ||||||||
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Total
Other Income, net
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259
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205
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1,008
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518
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Interest
Charges
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1,734
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1,890
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4,816
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5,213
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Income
before Income Taxes
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6,254
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5,174
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13,922
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12,286
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Income
Taxes
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2,096
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1,797
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4,680
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4,129
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Net
Income
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4,158
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3,377
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9,242
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8,157
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Preferred
Stock Dividend Requirements
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62
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62
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186
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186
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Earnings
Applicable to Common Stock
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$ |
4,096
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$ |
3,315
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$ |
9,056
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$ |
7,971
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||||||||
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Earnings
per share of Common Stock:
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Basic
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$ |
0.31
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$ |
0.29
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$ |
0.69
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$ |
0.69
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Diluted
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$ |
0.31
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$ |
0.28
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$ |
0.68
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$ |
0.68
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Average
Number of
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||||||||||||||||
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Common
Shares Outstanding :
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Basic
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13,206
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11,630
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13,191
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11,611
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Diluted
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13,537
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11,961
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13,522
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11,943
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Cash
Dividends Paid per Common Share
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$ |
0.1725
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$ |
0.1700
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$ |
0.5175
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$ |
0.5100
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