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 BRYN MAWR, Pa., Aug. 3 /PRNewswire/ -- Philadelphia Suburban Corporation (NYSE: PSC) today reported quarterly net income of $3.6 million, up 37.1 percent over the same period last year.
 Second quarter revenues of $25.0 million exceeded those of the same period in 1992 by 7.8 percent.
 The income and revenue figures were reported after today's meeting of the PSC board of directors at which the regular quarterly dividend of $.27 per share was declared. The dividend is the company's 194th consecutive dividend and will be paid on Sept. 1, to shareholders of record on Aug. 17, 1993.
 PSC Chairman Nicholas DeBenedictis said the sharp increase in income was due to the increased revenues and cost containment measures at the water company, and corporate debt reduction programs which led to lower interest expenses. "Cost-cutting programs have reduced total expenses by 88 percent at the parent company for the first six months compared to 1992."
 DeBenedictis said the increased revenue was attributable to the June 1 rate increase of 7.4 percent and increased sales from the acquisitions of the Uwchlan and West Whiteland water systems. He added, however, "The revenues do not reflect the positive effect of the July heatwave which will be a part of our third quarter results."
 Despite the increased income, earnings per share increased only $.01 per share for the quarter ($.32 in 1992 to $.33 in 1993) and the first six months ($.58 in 1992 to $.59 in 1993) due to the issuance of 1.7 million shares of common stock in the second half of 1992 (primarily through the company's customer stock purchase plan), and 1.1 million shares of common stock in an April 1993 public offering. Overall, average shares of common stock outstanding for the second quarter increased by 34 percent over the average shares outstanding in 1992.
 DeBenedictis explained the increase in outstanding shares by saying, "Our recent stock offerings were needed to secure the company's financial position, improve its debt rating, and to fund its acquisition program. (PSC recently announced its plans to acquire the water utility assets of the Malvern Borough water system which will be its third such acquisition within the past year.) The increase in income has offset the dilution due to the increased number of shares outstanding.
 "Reducing our debt and strengthening our financial base was one of our primary objectives over the past year and with that accomplished, and barring any significant acquisitions, we intend to limit future stock sales to customers to less than 5 percent of shares outstanding."
 DeBenedictis also said that he expects no additional losses from discontinued operations and is confident that 1993 earnings will return to more predictable levels and be more in line with the results from continuing operations of previous years.
 In another decision, the board voted to authorize the company to acquire up to 250,000 shares of its common stock in open market purchases.
 DeBenedictis said the purchases would be made "from time to time" and be used for issuances of shares under the company's employee benefit programs, the customer stock purchase plan and the dividend reinvestment and optional stock purchase plans.
 Philadelphia Suburban Corporation is the parent company of Philadelphia Suburban Water Company (PSW), one of the nation's largest, fully integrated, investor owned water utilities in the country and serves 800,000 residents in 71 municipalities in Chester, Delaware and Montgomery counties.
 (Unaudited; dollars in thousands)
 Periods ended Quarter Six months
 June 30 1993 1992 1993 1992
 Earned revenues $25,048 $23,236 $47,774 $46,161
 Net income 3,604 2,628 6,191 4,730
 Net Income per share $.33 $.32 $.59 $.58
 Average common and common
 equivalent shares
 outstanding during
 the period 10,905,000 8,158,000 10,431,000 8,121,000
 -0- 8/3/93
 /CONTACT: Donna Alston, director, corporate communications of Philadelphia Suburban, 215-645-1095/

CO: Philadelphia Suburban Corporation ST: Pennsylvania IN: UTI SU: ERN DIV

MJ-MK -- PH022 -- 9030 08/03/93 16:01 EDT
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Publication:PR Newswire
Date:Aug 3, 1993

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