Philadelphia Suburban Corporation Reports Significant Increase in Second Quarter 2001 Income From Operations.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)--July 31, 2001 Per share income from operations up 16.7 percent Philadelphia Suburban Corporation (PSC (Public Service Commission) Same as PUC. ) today reported strong operating results for the quarter ended June 30, 2001. Diluted income per share from operations increased significantly to $.28 per share, up 16.7 percent, versus $.24 for the second quarter 2000 (2000 income exclusive of $.02 net merger recovery). Diluted net income per share of $.28 was up 7.7 percent in comparison to 2000 second quarter levels of $.26, on 5.9 percent more shares outstanding. Corresponding net income increased 13.2 percent to $15.4 million versus $13.6 million in the prior year. In comparison, income from operations increased 23.2 percent for the second quarter 2001 to $15.4 million, versus $12.5 million in the prior year. Increased earnings for the second quarter 2001 were primarily due to increased revenues from rate settlements, customer growth and increased water consumption due to favorable weather conditions; and a reduction in interest expense. For the six months ended June 30, 2001, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $.52, versus $.46 for the six months ended June 30, 2000, up 13.0 percent. Income exclusive of merger recovery for the six months ended June 30, 2001, was $.52 per share, versus $.44 in the prior year. Revenues for the quarter grew to $77.2 million from second quarter 2000 revenues of $68.5 million. The company's 12.7 percent increase in revenues is attributed to rate settlements increases and increased water sales, aided by continued customer growth. Revenues for the six months ended June 30, 2001, were up 11.1 percent to $147.4 million, versus $132.7 million in the prior year. PSC's operations and maintenance (O&M) expenses increased by 8.6 percent to $26.5 million for the second quarter 2001, versus $24.4 million in the prior year. Approximately one half of this increase is related to customer growth and increased water sales. O&M expenses as a percentage of revenue (efficiency ratio) continues to improve. For the second quarter of 2001 the ratio was 34.3 percent, compared to 35.6 percent for the second quarter 2000. For the 12 months ended June 30, 2001 the ratio was 36.4 percent, versus 38.2 percent for the 12 months ended June 30, 2000, a decrease of 180 basis points. PSC has one of the best efficiency ratios in the water utility industry, and expenses on a per customer basis have decreased by 1.0 percent for the 12 months ended June 30, 2001, which is indicative of the company's successful growth and 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. strategies. PSC announced, at its May 17, 2001, annual meeting of shareholders, its expectation to exceed its 2001 customer growth goal. PSC has purchased two new systems in its fast growing Consumers 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. subsidiary since entering the state in December 2000, and is in discussions with other possible acquisition targets. The company's Consumers Illinois subsidiary recently purchased the Village of Aroma Park water system, in Kankakee County, Illinois Kankakee County is a county located in the U.S. state of Illinois. As of 2000, the population was 103,833. Its county seat is Kankakee, Illinois6. This county is part of the Combined Statistical Area (CSA) for Chicago, though not included in the Metropolitan Statistical , following the same tuck-in acquisition Tuck-In Acquisition The acquisition of a company made for the sole purpose of merging it into a division of the acquirer. Sometimes referred to as "bolt-on acquisitions." Notes: strategy that has proven to be successful for PSC's southeastern Pennsylvania subsidiary, Philadelphia Suburban Water Company. PSC has experienced a 2.8 percent increase in its customer base for the first 6 months of 2001, in comparison to 1.2 percent for the first 6 months of 2000. PSC has completed the following acquisitions and growth ventures through June 30, 2001: 1. January - Purchase of Hydraulics hydraulics, branch of engineering concerned mainly with moving liquids. The term is applied commonly to the study of the mechanical properties of water, other liquids, and even gases when the effects of compressibility are small. , Ltd. of Greensboro, North Carolina “Greensboro” redirects here. For other uses, see Greensboro (disambiguation). Greensboro, North Carolina (IPA: [ɡɹiːnsbʌɹəʊ]) is a city in the U.S. state of North Carolina. , a public water utility serving 16,000 residents in 22 counties surrounding the towns of Greensboro, Hickory Hickory, city, United States Hickory, city (1990 pop. 28,301), Burke and Catawba counties, W N.C., at the foot of the Blue Ridge Mts.; inc. 1870. It is a processing and trade center for an abundant agricultural region (grain, soybeans, poultry, hogs, , Raleigh, and Gastonia 2. January - Operation and maintenance contract with Port Clyde Water District in St. George, Maine, serving approximately 315 residents 3. January - Purchase of Creekside Water System, in Gastonia, North Carolina Gastonia is a city in Gaston County in North Carolina, a state in the southeastern United States. As of the 2000 census, the city had a total population of 66,277 (68,964 is the 2005 Census Bureau estimated population). It is the county seat of Gaston County. , serving approximately 470 residents 4. January - Expansion of service franchise and construction of major pipeline in Mahoning Township, Lawrence County, Pennsylvania Mahoning Township is a township in Lawrence County, Pennsylvania, United States. The population was 3,447 at the 2000 census. Geography According to the United States Census Bureau, the township has a total area of 64.7 km² (25.0 mi²). 63.6 km² (24. to serve 1,000 residents 5. January - Purchase of Walnut Hill Walnut Hill may refer to:
6. February - Operation and maintenance contract with Greenwich Township, Warren County, New Jersey
Greenwich Township is a Township in Warren County, New Jersey, United States. As of the United States 2000 Census, the township population was 4,365. serving approximately 450 residents 7. March - Purchase of Springton Court water system, serving approximately 100 residents in West Brandywine Township, Chester County, Pennsylvania Chester County is a county located in the U.S. state of Pennsylvania. As of 2000, the population was 433,501. The county seat is West Chester. It is the wealthiest county in Pennsylvania. 8. April - Purchase of Media Borough wastewater system in Delaware County, Pennsylvania Delaware County (known colloquially as "Delco") is a county located in the U.S. state of Pennsylvania. As of 2000, the population was 550,864. Delaware County was created on September 26, 1789 from part of Chester County and named for the Delaware River. serving approximately 15,000 residents in Media Borough and neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. townships 9. April - Purchase of Dresher Woods Condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. water system in Upper Dublin Township Dublin Township may refer to:
10. April - Renewal of two-year professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. agreement with the Borough of Allentown in Monmouth County, New Jersey Monmouth County is a county located in the U.S. state of New Jersey, within the New York metropolitan area. As of the 2000 Census, the population is 615,301. Its county seat is Freehold Borough6. for the town's water and wastewater systems 11. May - Purchase of the Village of Aroma Park water system in Kankakee County, Illinois serving approximately 2,100 residents 12. June - Purchase of Geigertown Water Company, serving approximately 250 residents in Robeson and Union Townships, Berks County, Pennsylvania Berks County is a county located in the U.S. state of Pennsylvania. As of the 2000 census, the population was 373,638. Its county seat is Reading6. Berks County is part of the Reading, PA metropolitan statistical area and as of 2005, is also considered part of the PSC is the holding company for regulated public utilities that provide water and wastewater services to approximately two million residents in Pennsylvania, 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. , New Jersey, Maine, and North Carolina. PSC's common shares are traded on both the 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 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 "PSC". The company has been committed to the preservation and improvement of the environment throughout its history, which spans more than 100 years. The company's quarterly conference call with analysts will be at 11:00 a.m. Eastern Daylight Time today. Interested parties may listen to the conference call over the Internet by logging onto www.suburbanwater.com. The call will be recorded and replayed beginning 1:00 p.m., Tuesday, July 31, 2001, and will run until 1:00 p.m., Thursday, August 2, 2001. The dial-in telephone number for the audio replay is (973) 341-3080 (pin number 2719436). The following table shows the comparative 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. , net income available to common stock and net income per share for Philadelphia Suburban Corporation for the quarters and six months ended June 30, 2001 and 2000 (in thousands, except per share amounts):
(Unaudited) (Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
2001 2000 2001 2000
-------- -------- -------- --------
Operating revenues $ 77,240 $ 68,494 $147,433 $132,702
===================== ====================
Income exclusive of
net merger recovery $ 15,432 $ 12,506 $ 28,517 $ 22,752
Merger recovery, net
of tax $ - $ 1,059 $ - $ 1,059
--------------------- --------------------
Net income available
to common stock $ 15,432 $ 13,565 $ 28,517 $ 23,811
===================== ====================
Income per common share
exclusive of net
merger recovery:
Basic $ 0.28 $ 0.24 $ 0.53 $ 0.44
Diluted $ 0.28 $ 0.24 $ 0.52 $ 0.44
Net income per
common share:
Basic $ 0.28 $ 0.26 $ 0.53 $ 0.47
Diluted $ 0.28 $ 0.26 $ 0.52 $ 0.46
Average common shares
outstanding:
Basic 54,203 51,226 54,078 51,202
Diluted 54,870 51,801 54,722 51,672
Note: The recovery of merger costs is related to the March 1999
merger with Consumers Water Company.
This release contains certain forward-looking statements involving risks, uncertainties and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors include, among others, the following: general economic business conditions; weather conditions affecting customers' water usage or the company's costs of operations; the success of cost containment initiatives, including the recovery of merger costs; changes in regulations or regulatory treatment; availability and cost of capital; and the success of growth initiatives.
Philadelphia Suburban Corporation and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
-------- --------
2001 2000 2001 2000
-------- -------- -------- --------
Operating revenues $ 77,240 $ 68,494 $147,433 $132,702
Cost & expenses:
Operations and
maintenance 26,462 24,350 52,648 49,278
Depreciation 9,729 7,665 18,682 15,916
Amortization 623 388 1,145 658
Taxes other than
income taxes 5,350 5,597 10,938 11,579
Recovery of
restructuring
costs - (396) - (396)
-------- -------- -------- --------
Total 42,164 37,604 83,413 77,035
-------- -------- -------- --------
Operating income 35,076 30,890 64,020 55,667
Other expense (income):
Interest expense, net 9,904 9,990 20,166 19,845
Allowance for funds
used during
construction (264) (985) (512) (1,719)
Gain on sale of
other assets (118) - (2,909) (1,363)
Minority interest - 28 - 46
Recovery of merger
transaction costs - (663) - (663)
-------- -------- -------- --------
Income before
income taxes 25,554 22,520 47,275 39,521
Provision for
income taxes 10,096 8,929 18,705 15,657
-------- -------- -------- --------
Net income 15,458 13,591 28,570 23,864
Dividends on
preferred stock 26 26 53 53
-------- -------- -------- --------
Net income
available to
common stock $ 15,432 $ 13,565 $ 28,517 $ 23,811
======== ======== ======== ========
Net income $ 15,458 $ 13,591 $ 28,570 $ 23,864
Other comprehensive
income (loss),
net of tax 569 144 12 (510)
-------- -------- -------- --------
Comprehensive income $ 16,027 $ 13,735 $ 28,582 $ 23,354
======== ======== ======== ========
Net income per
common share:
Basic $ 0.28 $ 0.26 $ 0.53 $ 0.47
Diluted $ 0.28 $ 0.26 $ 0.52 $ 0.46
Average shares
outstanding:
Basic 54,203 51,226 54,078 51,202
======== ======== ======== ========
Diluted 54,870 51,801 54,722 51,672
======== ======== ======== ========
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