York Water Company Reports 2nd Quarter and Six Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported an increase in second-quarter operating revenues to $14.9 million, a rise of $1.098 million from 2021. Net income also increased to $5.029 million, up by $545,000.

For the first half of 2022, operating revenues reached $29.139 million, a $2.257 million year-on-year increase, with net income at $8.888 million, reflecting a $699,000 rise. Basic and diluted EPS for Q2 was $0.36, and for H1 was $0.65. The company is focusing on infrastructure improvements, planning additional investments of $26 million this year.

Positive

• Operating revenues rose to $14.9 million in Q2 2022, up $1.098 million from Q2 2021.
• Net income increased to $5.029 million for Q2 2022, up $545,000 year-over-year.
• Basic and diluted EPS increased by $0.01 to $0.36 in Q2 2022.
• For H1 2022, operating revenues reached $29.139 million, up $2.257 million compared to H1 2021.
• Net income for H1 2022 increased to $8.888 million, up $699,000 year-on-year.
• Basic and diluted EPS for H1 2022 grew to $0.65, up by $0.02 from the previous year.
• The company plans to invest an additional $26 million in infrastructure improvements in 2022.

Negative

• Increased operation and maintenance expenses and depreciation offset some revenue gains.
• The financial results are subject to risks and uncertainties that could impact future performance.

YORK, Pa., Aug. 04, 2022 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President, JT Hand, announced the Company's financial results for the second quarter and the first six months of 2022.

President Hand reported that second quarter operating revenues of $14,899,000 increased $1,098,000 and net income of $5,029,000 increased $545,000 compared to the second quarter of 2021. Basic and Diluted Earnings per share of $0.36 for the three-month period increased $0.01 compared to the same period last year.   Increased revenues were primarily due to growth in the customer base from the West Manheim Township wastewater acquisition and the utilization of the Distribution System Improvement Charge (DSIC). The DSIC is a Pennsylvania Public Utility Commission allowed charge that water utilities collect from customers for the replacement of aging infrastructure.   The increased revenue was partially offset by higher operation and maintenance expenses and depreciation.

President Hand also reported that the first six months operating revenues of $29,139,000 increased $2,257,000 and net income of $8,888,000 increased $699,000 compared to the first six months of 2021. Increased revenues were primarily due to growth in the customer base from the West Manheim Township wastewater acquisition and the utilization of the DSIC. The increased revenue was partially offset by higher operation and maintenance expenses and depreciation. Income taxes decreased due to higher deductions from the IRS tangible property regulations. Basic and Diluted Earnings per share of $0.65 for the six-month period increased $0.02 compared to the same period last year.

During the first six months of 2022, the Company invested $19.0 million in construction expenditures for routine items, armoring and replacing the spillway of the Lake Williams dam, and wastewater treatment plant construction as well as various replacements and improvements to infrastructure. The Company estimates it will invest an additional $26.0 million in 2022, excluding acquisitions, for armoring and replacing the spillway of the Lake Williams dam, additional main extensions, and routine improvements to its pipes, service lines, and other facilities to ensure a safe, adequate, and reliable supply of drinking water and to maintain proper handling and disposal of wastewater for the Company’s growing customer base.

	Period Ended June 30
	In 000's (except per share)
	Quarter				Six Months
	2022		2021		2021		2021
Operating Revenues	$	14,899	$	13,801	$	29,139	$	26,882
Net Income	$	5,029	$	4,484	$	8,888	$	8,189
Average Number of Common Shares Outstanding		14,189		13,069		13,650		13,062
Basic and Diluted Earnings Per Common Share	$	0.36	$	0.35	$	0.65	$	0.63
Dividends Declared Per Common Share	$	0.1949	$	0.1874	$	0.3898	$	0.3748

This news release may contain forward-looking statements regarding the Company’s operational and financial expectations. These statements are based on currently available information and are subject to risks, uncertainties, and other events which could cause the Company’s actual results to be materially different from the results described in this statement. The Company undertakes no duty to update any forward-looking statement.

FAQ

What were the second quarter 2022 revenue results for York Water Company (YORW)?

York Water Company reported second quarter 2022 revenues of $14.9 million, an increase of $1.098 million compared to the same period in 2021.

How much did net income increase for York Water Company in Q2 2022?

In Q2 2022, York Water Company's net income rose to $5.029 million, which is an increase of $545,000 from Q2 2021.

What is the EPS for York Water Company for the first half of 2022?

The basic and diluted earnings per share for York Water Company in the first half of 2022 was $0.65, up $0.02 compared to the same period in 2021.

What investments is York Water Company planning for 2022?

York Water Company plans to invest an additional $26 million in infrastructure improvements throughout 2022.

What factors affected the revenue increase of York Water Company in 2022?

Revenue increases were largely due to customer base growth from acquisitions and the Distribution System Improvement Charge (DSIC), but were partially offset by higher operational costs.