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: August 1, 2017
MIDDLESEX WATER COMPANY
(Exact name of registrant as specified in its charter)
| NEW JERSEY | 0-422 | 22-1114430 |
| (State or other jurisdiction of | (Commission | (I.R.S. Employer |
| incorporation or organization) | File Number) | Identification No.) |
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 (17CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 1, 2017, Middlesex Water Company announced financial results for the second quarter ended June 30, 2017. A copy of the press release announcing these results is attached hereto as Exhibit 99.1 and incorporated into this Current Report on Form 8-K by reference.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
| Exhibit | |
| Number | Description of Document |
| 99.1 | Press Release issued by Middlesex Water Company, dated August 1, 2017, announcing Second Quarter 2017 Financial Results. |
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.
| MIDDLESEX WATER COMPANY | |
| (Registrant) | |
| s/A. Bruce O‘Connor | |
| A. Bruce O’Connor | |
| Vice President, Treasurer and | |
| Chief Financial Officer |
Dated: August 1, 2017
MIDDLESEX WATER COMPANY ANNOUNCES
SECOND QUARTER 2017 FINANCIAL RESULTS
ISELIN, N.J., (August 1, 2017) -- Middlesex Water Company (the “Company” or “Middlesex”), (Nasdaq:MSEX), a provider of water and wastewater and related services primarily in New Jersey and Delaware, today announced operating results for the quarter ended June 30, 2017.
Second Quarter Operating Results
Consolidated operating revenues for the three months ended June 30, 2017 increased $0.3 million to $33.0 million from the same period in 2016. Net income decreased $0.5 million to $5.4 million from the comparable period in 2016. Basic and diluted earnings per share were $0.33 for the quarter ended June 30, 2017, down from $0.36 for the same period in 2016.
Operating revenues in our Delaware regulated water utility, Tidewater Utilities, Inc. (“Tidewater”), increased $0.5 million due to the addition of new customers. This was offset by a $0.2 million decrease in operating revenues in the Company’s Middlesex System in New Jersey as a result of lower water usage across all customer categories.
Operation and maintenance expenses for the second quarter increased $0.9 million to $16.7 million from the same period in 2016. Higher water production costs of $0.5 million in the Middlesex System in New Jersey were due to a rate increase in water treatment residuals disposal costs from the local municipal wastewater utility and lower raw water quality. Labor costs increased $0.3 million due to higher average labor rates and additional employees required to address regulatory needs.
Middlesex Chairman, President and Chief Executive Officer Dennis W. Doll said, “Water usage remained moderate through the second quarter and we were able to capably meet the needs of customers as hotter weather took hold by mid-summer. Through our Water for Tomorrow® initiative, our crews continue to make various strategic improvements in our water distribution infrastructure. As we seek recovery of those prudent investments, we are closely monitoring our revenues and costs to determine the timing and need for rate filings in our New Jersey and Delaware regulated utilities,” added Doll.
Six Month Operating Results
Consolidated operating revenues for the six months ended June 30, 2017 were $63.1 million, a decrease of $0.2 million from the same period in 2016, due mostly to lower water usage in the Middlesex System in New Jersey, offset by increased revenues from additional new customers in our Tidewater System in Delaware. For the six months ended June 30, 2017, basic and diluted earnings per share were $0.60 and $0.59 respectively, as compared to $0.65 for basic and diluted earnings per share for the same period in 2016.
Quarterly Dividend Declared
The Company’s Board of Directors declared a quarterly cash dividend of $0.21125 per share, payable September 1, 2017 to common shareholders as of August 11, 2017. Middlesex has paid cash dividends continually since 1912 and has increased its annual dividend rate for 44 consecutive years. Information about Middlesex’s Direct Share Purchase and Sale and Dividend Reinvestment Plan can be found on our website.
About Middlesex Water Company
Middlesex Water Company, organized in 1897, is an investor-owned water and wastewater utility, serving customers in central and southern New Jersey, Delaware and Pennsylvania. For additional information regarding Middlesex Water Company or its Direct Share Purchase and Sale and Dividend Reinvestment Plan, visit http://investors.middlesexwater.com or call (732) 638-7549.
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
MIDDLESEX WATER COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Operating Revenues | $33,014 | $32,725 | $63,145 | $63,304 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Operations and Maintenance | 16,651 | 15,789 | 32,385 | 31,617 | ||||||||||||
| Depreciation | 3,385 | 3,180 | 6,693 | 6,317 | ||||||||||||
| Other Taxes | 3,415 | 3,428 | 6,724 | 6,740 | ||||||||||||
| Total Operating Expenses | 23,451 | 22,397 | 45,802 | 44,674 | ||||||||||||
| Operating Income | 9,563 | 10,328 | 17,343 | 18,630 | ||||||||||||
| Other Income (Expense): | ||||||||||||||||
| Allowance for Funds Used During Construction | 180 | 119 | 299 | 180 | ||||||||||||
| Other Income | 47 | 25 | 53 | 73 | ||||||||||||
| Other Expense | (22 | ) | (7 | ) | (27 | ) | (26 | ) | ||||||||
| Total Other Income, net | 205 | 137 | 325 | 227 | ||||||||||||
| Interest Charges | 1,469 | 1,436 | 2,472 | 2,413 | ||||||||||||
| Income before Income Taxes | 8,299 | 9,029 | 15,196 | 16,444 | ||||||||||||
| Income Taxes | 2,918 | 3,110 | 5,374 | 5,735 | ||||||||||||
| Net Income | 5,381 | 5,919 | 9,822 | 10,709 | ||||||||||||
| Preferred Stock Dividend Requirements | 36 | 36 | 72 | 72 | ||||||||||||
| Earnings Applicable to Common Stock | $ | 5,345 | $ | 5,883 | $ | 9,750 | $ | 10,637 | ||||||||
| Earnings per share of Common Stock: | ||||||||||||||||
| Basic | $ | 0.33 | $ | 0.36 | $ | 0.60 | $ | 0.65 | ||||||||
| Diluted | $ | 0.33 | $ | 0.36 | $ | 0.59 | $ | 0.65 | ||||||||
| Average Number of | ||||||||||||||||
| Common Shares Outstanding : | ||||||||||||||||
| Basic | 16,332 | 16,271 | 16,316 | 16,252 | ||||||||||||
| Diluted | 16,488 | 16,427 | 16,472 | 16,408 | ||||||||||||
| Cash Dividends Paid per Common Share | $ | 0.2113 | $ | 0.1988 | $ | 0.4225 | $ | 0.3975 | ||||||||