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: March 7, 2008
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
2.02 Results of
Operations and Financial Condition.
On
March
7, 2008, Middlesex
Water Company(the "Company") announced
its financial
results for the year ended
December 31, 2007. 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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Press
Release issued by Middlesex
Water Company, dated March 7, 2008, announces 2007 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: March
7, 2008
2
Exhibit
99.1
MIDDLESEX
WATER COMPANY ANNOUNCES
2007
FINANCIAL RESULTS
Annual
Revenues Up $5.0 Million from 2006
ISELIN,
NJ, March 7,
2008-
Middlesex Water Company (NASDAQ Global Select Market: MSEX), a leading
provider of water and wastewater services in New Jersey and Delaware, today
reported operating revenue of $86.1 million for the year ended December 31,
2007, compared to operating revenue of $81.1 million in 2006. Net income for
the
year ended December 31, 2007 was $11.8 million, up from $10.0 million for the
same period in 2006. Earnings applicable to common stock
for the year
ended December 31, 2007, were $11.6 million, or $0.88 per basic share, compared
with $9.8
million, or $0.83 per basic share, in
2006. On a fully diluted basis, earnings per share was
$0.87 for 2007, compared to $0.82 per
share in 2006.
Middlesex
Water President and Chief
Executive Officer Dennis W. Doll said, “Our Delaware system, Tidewater Utilities,
experienced
record water production due
to extended warm dry
weather
during the spring
and summer. Customer growth from both new
water
and wastewater connections
in Delawarealso
contributed to positive financial
results. Revenues
in our Middlesex system in
New Jersey increased
predominantly
due
to rate relief and increased sales
to contract customers. We expect to see the full effect of the October 2007
Middlesex rate increase reflected in our 2008 operating
revenues.”
2007
Operating Results
Consolidated
operating revenues rose
$5.0 million, or 6.2% over the same period in 2006. Revenues improved
by $3.7 million in our Delaware system, of which $2.4 million was a result
of a
base rate increase that was granted to Tidewater Utilities, Inc. Revenues in
our
Middlesex system increased by $0.7 million as a result of a 9.1% base rate
increase implemented in October 2007. In New Jersey,
water sales to contract customers
improved by $0.3 million. Customer growth and higher consumption contributed
$1.9 million of additional revenues. New customer connections to
existing and new wastewater systems in Delaware added
$0.3 million.
Total
operating expenses for the year ended December 31, 2007 increased $3.7 million,
up 6.2%, from 2006. Labor costs increased by $1.3 million, additional
power costs increased by $0.6 million and costs of pumping and water treatment
rose $0.2 million. Repair costs for water main breaks were $0.2
million higher than the same period in 2006. The cost to operate
wastewater facilities in Delaware increased by $0.2 million as a result of
the
acquisition of the Milton, DE wastewater system during the
year. Depreciation expense rose by $0.5 million as we continue to
construct additional utility plant to accommodate growth in our Delaware service
territories. Other taxes increased by $0.4 million reflecting higher
assessments for real estate and increased gross receipts taxes in New Jersey
All
other operating costs increased by $0.3 million.
Fourth
Quarter
Results
For
the three month period ended December 31, 2007, operating revenues increased
to
$21.2 million, up from $19.2 million, for the same period in 2006. This increase
was largely due to rate relief, customer growth and higher consumption. Total
operating expenses increased to $16.3 million, up from $14.8 million for the
same period in 2006.
Net
income increased to $2.6 million, up from $1.9 million, in 2006. The
increase of $0.7 million was due in part to higher operating revenues, the
sale
of certain water service rights in Delaware and the recognition of tax credits
for the construction of a solar energy facility. Earnings applicable to common
stock were $2.5 million, compared to $1.8 million for the same period in 2006.
Basic and diluted earnings per share remained at $0.19 and $0.14 respectively,
for both, in 2007 and 2006.
Company
Quarterly Dividend
Middlesex
Water paid a quarterly dividend of $0.1750 per share on the Common Stock on
March 1, 2008, to stockholders of record as of February 15, 2008. The
Company has paid cash dividends in varying amounts continually since
1912.
About
Middlesex Water
Company
Middlesex
Water Company, organized in 1897, is a water utility serving customers in
central and southern New Jersey and in the State of Delaware. The Company and
its New Jersey subsidiaries -- Pinelands Water Company and Pinelands Wastewater
Company -- are subject to the regulations of the Board of Public Utilities
of
the State of New Jersey. Middlesex Water Company operates the water and
wastewater utilities for the City of Perth Amboy through its subsidiary, Utility
Service Affiliates (Perth Amboy) Inc. Middlesex Water also provides
contract operations services and a service line maintenance program through
its
non-regulated subsidiary, Utility Service Affiliates, Inc. The
Company’s regulated Delaware subsidiaries, Tidewater Utilities, Inc., together
with Southern Shores Water Company and Tidewater Environmental Services Inc.,
are subject to the regulations of the Public Service Commission in Delaware.
White Marsh Environmental Systems, Inc. operates small water and wastewater
systems under contract on a non-regulated basis in Delaware.
These
companies are also subject to various Federal and State regulatory agencies
concerning water, and wastewater effluent, quality standards.
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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CONSOLIDATED
STATEMENTS OF
INCOME
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(In
thousands except per share
amounts)
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Years
Ended December
31,
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||||||||
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2007
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2006
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Operating
Revenues
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$ | 86,114 | $ | 81,061 | ||||
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Operating
Expenses:
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Operations
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42,117 | 39,799 | ||||||
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Maintenance
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4,123 | 3,546 | ||||||
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Depreciation
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7,539 | 7,060 | ||||||
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Other
Taxes
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9,664 | 9,338 | ||||||
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Total
Operating
Expenses
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63,443 | 59,743 | ||||||
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Operating
Income
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22,671 | 21,318 | ||||||
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Other
Income
(Expense):
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||||||||
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Allowance
for Funds Used During
Construction
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537 | 632 | ||||||
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Other
Income
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1,153 | 160 | ||||||
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Other
Expense
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(163 | ) | (18 | ) | ||||
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Total
Other Income,
net
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1,527 | 774 | ||||||
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Interest
Charges
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6,619 | 7,012 | ||||||
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Income
before Income
Taxes
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17,579 | 15,080 | ||||||
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Income
Taxes
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5,736 | 5,041 | ||||||
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Net
Income
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11,843 | 10,039 | ||||||
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Preferred
Stock Dividend
Requirements
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248 | 248 | ||||||
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Earnings
Applicable to Common
Stock
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$ | 11,595 | $ | 9,791 | ||||
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Earnings
per share of Common
Stock:
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Basic
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$ | 0.88 | $ | 0.83 | ||||
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Diluted
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$ | 0.87 | $ | 0.82 | ||||
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Average
Number
of
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||||||||
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Common
Shares Outstanding
:
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||||||||
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Basic
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13,203 | 11,844 | ||||||
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Diluted
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13,534 | 12,175 | ||||||
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Cash
Dividends Paid per Common
Share
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$ | 0.693 | $ | 0.683 | ||||