Aqua America Reports Increased Net Income for First Quarter 2004.Business Editors BRYN MAWR Bryn Mawr (brĭn mär), uninc. town (1990 est. pop. 10,000), Montgomery co., SE Pa., a residential suburb of Philadelphia. It is the seat of Bryn Mawr College (for women), opened in 1885 by the Society of Friends. , Pa.--(BUSINESS WIRE)--May 5, 2004 Aqua America, Inc. (NYSE NYSE See: New York Stock Exchange :WTR WTR Water WTR Writer WTR Wait To Restore WTR Wireless Technology Research WTR Walker, Texas Ranger (TV show) WTR Western Test Range WTR With-The-Rule Astigmatism WTR Working Time Regulation (UK) ), formerly Philadelphia Suburban Corporation, reported net income for the quarter ended March 31, 2004 of $15.6 million, a 16.9 percent increase from $13.3 million in the first quarter of 2003. Corresponding earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share were $0.17 for the quarter, compared to $0.16 per diluted share in the same period in 2003. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. grew 24.0 percent to $99.8 million, from $80.5 million for the same quarter in 2003, due primarily to the benefits of the company's acquisition of the AquaSource utility operations, which was completed last July. In addition to the seven "tuck-in" acquisitions announced during the quarter, the company recently announced that its Florida subsidiary had reached an agreement with Florida Water Services Corporation, a wholly-owned subsidiary of ALLETE, Inc. (NYSE: ALE), to acquire 63 water and wastewater systems for $13.8 million. A second agreement allows Aqua America's Florida subsidiary to acquire an additional nine water and wastewater systems for $4.2 million subject to the outcome of a previously negotiated right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. with a nearby municipality MUNICIPALITY. The body of officers, taken collectively, belonging to a city, who are appointed to manage its affairs and defend its interests. . As permitted under Florida law The jurisprudence of this state offers major differences from doctrines prevailing in the United States at either the federal level or that of the various states. Homestead exemption from forced sale, the dangerous instrumentality doctrine, the right to privacy, and the Williams , regulatory approval will be sought following the scheduled closing date of June 30, 2004. The Commission's review process might result in an adjustment of the final purchase price based on the Commission's determination of plant investment for the system. When complete, the acquisitions will add more than 16,000 new customers to the company's Florida operations. In November 2003, the company announced that it had entered into an agreement to acquire the water and wastewater systems of Heater Utilities, Inc., a subsidiary of ALLETE Water Services, located in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . This acquisition will add more than 50,000 new customers to the company's North Carolina operations and will secure Aqua America's position as the largest investor-owned water and wastewater utility in the state. The acquisition is scheduled to close in mid- mid- pref. Middle: midbrain. 2004, pending final regulatory approval. Chairman and President Nicholas DeBenedictis said, "Growth-through-acquisition continues to be the heart of our strategy. These new acquisitions will further define our new Southern footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. and enhance our operating efficiency in these key growth areas. The new properties will also provide opportunities for additional investments, which can yield corresponding regulatory returns, and a new base from which to expand." The company's increase in operating and maintenance expenses to $41.8 million in the first quarter 2004, from $30.7 million in the same period in 2003, was predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. attributable to the addition of the former AquaSource water and wastewater utilities. The company assumed control of the AquaSource operations on August 1, 2003. These newly-acquired systems are smaller and more geographically decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. , which result in a higher operating cost model than the company's traditional, Northern centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. operations. DeBenedictis said, "Efficiency improvements remain a top priority for the company. As we continue to acquire new systems in the South and experience the organic growth that fills in our footprint, we expect to achieve economies of scale that will improve our ratio of operating and maintenance expenses to revenue (efficiency ratio)." On April 27, 2004 the Board declared a $0.12 per share quarterly common stock cash dividend to be paid on June 1, 2004 to shareholders of record on May 14, 2004. This increase is 7.1 percent higher than the corresponding dividend paid one year prior on June 1, 2003 and is the result of the company's thirteenth dividend increase in 12 years. The company's conference call with analysts is today at 11:00 a.m. Eastern Daylight Time. The call will be webcast so that interested parties may listen over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by logging on to www.aquaamerica.com. The conference call will be archived in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's Web site for 90 days following the call. Additionally, the call will be recorded and made available for replay for 10 business days after the call, beginning at 12:00 p.m. Wednesday, May 5, 2004 through Wednesday, May 19, 2004. The dial-in telephone number for the audio replay is 877-519-4471 (PIN#: 4722373). The following table shows selected operating data for the quarters ended March 31, 2004 and 2003 (in thousands, except per share data) for Aqua America, Inc. All share and per share data for 2003 results have been restated to reflect the December 1, 2003 five-for-four stock split.
Quarter Ended
March 31
--------------------
2004 2003
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Operating revenues $99,768 $80,489
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Net income available to common stock $15,575 $13,324
====================
Net income per common share:
Basic $0.17 $0.16
Diluted $0.17 $0.16
Average common shares outstanding:
Basic 92,688 84,971
Diluted 93,806 85,733
Aqua America, Inc. is the largest U.S.-based publicly-traded water utility serving approximately 2.5 million residents in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Ohio, Illinois Ohio is a village in Bureau County, Illinois, United States. The population was 540 at the 2000 census. Geography Ohio is located at (41.556900, -89.460995)GR1. , Texas, New Jersey, Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Virginia, Florida, North Carolina, Maine, Missouri, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and Kentucky. Aqua America is listed on both the New York and Philadelphia Stock Exchanges Philadelphia Stock Exchange (PHLX) A securities exchange trading American and European foreign currency options on spot exchange rates. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors WTR. The company has been committed to the preservation and improvement of the environment throughout its history, which spans more than 100 years. This release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including, among others, the expected completion of the Heater and Florida Water Services transactions, growth prospects, opportunities to invest and effect on operating efficiency from the company's growth strategy, the benefits of geographic diversity, and the impact of the acquisition of the Florida Water Services systems. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. including: general economic business conditions, unfavorable weather conditions, the success of certain cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. 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.
Aqua America, Inc. and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
March 31,
---------------------
2004 2003
---------- ----------
Operating revenues $99,768 $80,489
Cost & expenses:
Operations and maintenance 41,831 30,664
Depreciation 13,674 11,347
Amortization 670 712
Taxes other than income taxes 7,149 5,320
---------- ----------
Total 63,324 48,043
---------- ----------
Operating income 36,444 32,446
Other expense (income):
Interest expense, net 11,802 10,612
Allowance for funds used during
construction (609) (376)
Gain on sale of other assets (450) (55)
---------- ----------
Income before income taxes 25,701 22,265
Provision for income taxes 10,126 8,938
---------- ----------
Net income 15,575 13,327
Dividends on preferred stock - 3
---------- ----------
Net income available to common stock $15,575 $13,324
========== ==========
Net income $15,575 $13,327
Other comprehensive income (loss), net of tax:
Unrealized gain on securities 59 47
Reclassification adjustment for gains
reported in net income (230) -
---------- ----------
Comprehensive income $15,404 $13,374
========== ==========
Net income per common share:
Basic $0.17 $0.16
Diluted $0.17 $0.16
Average common shares outstanding:
Basic 92,688 84,971
========== ==========
Diluted 93,806 85,733
========== ==========
Aqua America, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands of dollars)
(Unaudited)
March 31, December 31,
2004 2003
------------ ------------
Net property, plant and equipment $1,841,725 $1,824,291
Current assets 83,491 83,969
Regulatory assets and other assets 155,522 161,476
------------ ------------
$2,080,738 $2,069,736
============ ============
Stockholders' equity $667,282 $659,030
Long-term debt, excluding current portion 686,312 696,666
Current portion of long-term debt and loans
payable 159,845 135,845
Other current liabilities 78,438 96,156
Deferred credits and other liabilities 488,861 482,039
------------ ------------
$2,080,738 $2,069,736
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