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, 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:
[ ] 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
Announcement
of Middlesex Water Company third quarter 2008 earnings as set forth in the
attached press release.
Item 9.01 Financial
Statements and Exhibits.
Income
statement for third quarter 2008 filed as an exhibit.
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
6, 2008
2
MIDDLESEX
WATER COMPANY REPORTS
THIRD
QUARTER 2008 FINANCIAL RESULTS
ISELIN,
NJ, (November 6, 2008) Middlesex Water Company (NASDAQ:MSEX) a
provider of water, wastewater and related services in New Jersey and Delaware,
today reported higher operating revenues and net income for the quarter ended
September 30, 2008 over the same period in 2007.
Third Quarter Operating
Results
Consolidated
operating revenues for the three months ended September 30, 2008 increased $1.5
million, or 6.3%, from the same period in 2007. Revenues in the Middlesex
system in New Jersey rose $1.4 million as a result of a 9.1% base rate increase
implemented in October 2007. Middlesex revenues decreased $0.3 million due to
lower water consumption in 2008. Revenues improved $0.3 million in the
Tidewater system in Delaware, of which $0.2 million was the result of the
cumulative 2.94% of Distribution System Improvement Charge rate increases that
were in effect during the third quarter of 2008.
Delaware
customer growth contributed $0.2 million to the overall revenue increase.
Fees charged for initial customer connections in the Tidewater system were $0.1
million lower in 2008 reflecting a slow-down in new residential and commercial
development in Delaware. Contract fees for managing the Perth Amboy
water and wastewater systems were $0.1 million higher than the same period in
2007, due mostly to higher pass-through charges. Revenues from
non-regulated contract operations in Delaware increased $0.1 million due to
growth in contract customers and increased sales of additional services.
All other operations accounted for $0.1 million of additional
revenues.
Net
income increased 13.4% from $4.2 million to $4.7 million. Basic and
diluted earnings per share were $0.35 for three months ended September 30, 2008,
compared to $0.31 for the same period in 2007.
Operation
and maintenance expenses for the three months ended September 30, 2008 increased
$0.6 million or 5.1%. Water production costs were $0.2 million higher in
New Jersey due to higher costs for water, electric power, chemicals and disposal
of residuals. Maintenance costs decreased $0.1 million compared to the
same period in 2007 due to a reduction in restoration and repair costs for the
water service lines in the Middlesex system. Operating costs for
Tidewater Environmental Services Inc. increased $0.1 million due to an increased
number of wastewater treatment facilities in operation in
Delaware. Administrative costs in Delaware also rose $0.1 million as
we work to support the increased customer base in that service
area. All other expense categories increased $0.1
million.
Middlesex
Water Company CEO, Dennis W. Doll, said “Despite the uncertainties in the
current economic environment, we continue to execute our plans for profitable
growth and enhanced shareholder value. The relatively predictable revenue stream
inherent in our business, combined with our continued strong financing
capability and growth opportunities, leaves us confident that our strategic plan
remains appropriate. We continue to seek out opportunities and win business as
reflected in our recent acquisition of a project in North
Carolina. Our 111-year old company has navigated tough markets in the
past and we believe the financial discipline we have long embraced to prudently
manage costs and analyze opportunities continues to be the appropriate
path.”
Nine Month Operating
Results
Operating
revenues for the nine months ended September 30, 2008 increased $4.7 million or
7.2% from the same period in 2007. Operation and maintenance expenses
increased $2.1 million or 6.1%. Net income increased $1.0 million or 11.3%.
Diluted earnings per share were $0.75 and $0.68 for nine months ended September
30, 2008 and 2007, respectively.
Board Declares Quarterly
Dividend
The
Company’s Board of Directors approved an increase in the Company's quarterly
cash dividend to $0.1775 from $0.1750. The new dividend rate is
payable December 1, 2008 to shareholders of record as of November 14, 2008. This
dividend increase raises the annual dividend to $0.71 from $0.70 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 including information about the
Company’s DRP Program, 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
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MIDDLESEX
WATER COMPANY
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
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(In
thousands except per share amounts)
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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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2008
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2007
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2008
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2007
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|||||||||||||
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Operating
Revenues
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$ | 25,653 | $ | 24,135 | $ | 69,543 | $ | 64,868 | ||||||||
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Operating
Expenses:
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12,574 | 11,961 | 36,401 | 34,310 | ||||||||||||
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Operations
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11,579 | 10,915 | 33,299 | 31,250 | ||||||||||||
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Maintenance
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995 | 1,046 | 3,102 | 3,060 | ||||||||||||
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Depreciation
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1,987 | 1,887 | 5,872 | 5,607 | ||||||||||||
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Other
Taxes
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2,708 | 2,558 | 7,715 | 7,221 | ||||||||||||
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Total
Operating Expenses
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17,269 | 16,406 | 49,988 | 47,138 | ||||||||||||
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Operating
Income
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8,384 | 7,729 | 19,555 | 17,730 | ||||||||||||
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Other
Income (Expense):
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Allowance
for Funds Used During Construction
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180 | 168 | 445 | 421 | ||||||||||||
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Other
Income
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150 | 100 | 668 | 608 | ||||||||||||
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Other
Expense
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(12 | ) | (9 | ) | (169 | ) | (21 | ) | ||||||||
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Total
Other Income, net
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318 | 259 | 944 | 1,008 | ||||||||||||
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Interest
Charges
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1,838 | 1,734 | 5,161 | 4,816 | ||||||||||||
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Income
before Income Taxes
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6,864 | 6,254 | 15,338 | 13,922 | ||||||||||||
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Income
Taxes
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2,149 | 2,096 | 5,054 | 4,680 | ||||||||||||
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Net
Income
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4,715 | 4,158 | 10,284 | 9,242 | ||||||||||||
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Preferred
Stock Dividend Requirements
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52 | 62 | 166 | 186 | ||||||||||||
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Earnings
Applicable to Common Stock
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$ | 4,663 | $ | 4,096 | $ | 10,118 | $ | 9,056 | ||||||||
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Earnings
per share of Common Stock:
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Basic
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$ | 0.35 | $ | 0.31 | $ | 0.76 | $ | 0.69 | ||||||||
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Diluted
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$ | 0.35 | $ | 0.31 | $ | 0.75 | $ | 0.68 | ||||||||
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Average
Number of
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Common
Shares Outstanding :
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Basic
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13,350 | 13,206 | 13,291 | 13,191 | ||||||||||||
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Diluted
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13,617 | 13,537 | 13,601 | 13,522 | ||||||||||||
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Cash
Dividends Paid per Common Share
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$ | 0.1750 | $ | 0.1725 | $ | 0.5250 | $ | 0.5175 | ||||||||
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See
Notes to Condensed Consolidated Financial Statements.
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MIDDLESEX
WATER COMPANY
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
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(In
thousands except per share amounts)
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Three
Months Ended September 30,
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Difference
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Nine
Months Ended September 30,
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Difference
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2008
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2007
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Dollars
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%
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2008
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2007
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Dollars
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%
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Operating
Revenues
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$ | 25,653 | $ | 24,135 | $ | 1,518 | 6.29 | % | $ | 69,543 | $ | 64,868 | $ | 4,675 | 7.21 | % | ||||||||||||||||
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Operating
Expenses:
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12,574 | 11,961 | 613 | 5.12 | % | 36,401 | 34,310 | 2,091 | 6.09 | % | ||||||||||||||||||||||
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Operations
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11,579 | 10,915 | 664 | 6.08 | % | 33,299 | 31,250 | 2,049 | 6.56 | % | ||||||||||||||||||||||
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Maintenance
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995 | 1,046 | (51 | ) | -4.88 | % | 3,102 | 3,060 | 42 | 1.37 | % | |||||||||||||||||||||
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Depreciation
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1,987 | 1,887 | 100 | 5.30 | % | 5,872 | 5,607 | 265 | 4.73 | % | ||||||||||||||||||||||
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Other
Taxes
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2,708 | 2,558 | 150 | 5.86 | % | 7,715 | 7,221 | 494 | 6.84 | % | ||||||||||||||||||||||
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Total
Operating Expenses
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17,269 | 16,406 | 863 | 5.26 | % | 49,988 | 47,138 | 2,850 | 6.05 | % | ||||||||||||||||||||||
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Operating
Income
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8,384 | 7,729 | 655 | 8.47 | % | 19,555 | 17,730 | 1,825 | 10.29 | % | ||||||||||||||||||||||
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Other
Income (Expense):
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Allowance
for Funds Used During Construction
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180 | 168 | 12 | 7.14 | % | 445 | 421 | 24 | 5.70 | % | ||||||||||||||||||||||
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Other
Income
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150 | 100 | 50 | 50.00 | % | 668 | 608 | 60 | 9.87 | % | ||||||||||||||||||||||
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Other
Expense
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(12 | ) | (9 | ) | (3 | ) | 33.33 | % | (169 | ) | (21 | ) | (148 | ) | 704.76 | % | ||||||||||||||||
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Total
Other Income, net
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318 | 259 | 59 | 22.78 | % | 944 | 1,008 | (64 | ) | -6.35 | % | |||||||||||||||||||||
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Interest
Charges
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1,838 | 1,734 | 104 | 6.00 | % | 5,161 | 4,816 | 345 | 7.16 | % | ||||||||||||||||||||||
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Income
before Income Taxes
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6,864 | 6,254 | 610 | 9.75 | % | 15,338 | 13,922 | 1,416 | 10.17 | % | ||||||||||||||||||||||
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Income
Taxes
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2,149 | 2,096 | 53 | 2.53 | % | 5,054 | 4,680 | 374 | 7.99 | % | ||||||||||||||||||||||
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Net
Income
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4,715 | 4,158 | 557 | 13.40 | % | 10,284 | 9,242 | 1,042 | 11.27 | % | ||||||||||||||||||||||
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Preferred
Stock Dividend Requirements
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52 | 62 | (10 | ) | -16.13 | % | 166 | 186 | (20 | ) | -10.75 | % | ||||||||||||||||||||
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Earnings
Applicable to Common Stock
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$ | 4,663 | $ | 4,096 | $ | 567 | 13.84 | % | $ | 10,118 | $ | 9,056 | $ | 1,062 | 11.73 | % | ||||||||||||||||
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Earnings
per share of Common Stock:
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Basic
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$ | 0.35 | $ | 0.31 | $ | 0.039 | 12.61 | % | $ | 0.76 | $ | 0.69 | $ | 0.075 | 10.88 | % | ||||||||||||||||
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Diluted
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$ | 0.35 | $ | 0.31 | $ | 0.039 | 12.77 | % | $ | 0.75 | $ | 0.68 | $ | 0.076 | 11.27 | % | ||||||||||||||||
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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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13,350 | 13,206 | 144 | 1.09 | % | 13,291 | 13,191 | 100 | 0.76 | % | ||||||||||||||||||||||
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Diluted
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13,617 | 13,537 | 80 | 0.59 | % | 13,601 | 13,522 | 79 | 0.58 | % | ||||||||||||||||||||||
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Cash
Dividends Paid per Common Share
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$ | 0.1750 | $ | 0.1725 | $ | 0.0025 | 1.45 | % | $ | 0.5250 | $ | 0.5175 | $ | 0.0075 | 1.45 | % | ||||||||||||||||
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See
Notes to Condensed Consolidated Financial Statements.
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