York Water Company Reports 2nd Quarter and Six Months Earnings

The York Water Company (NASDAQ:YORW) reported its financial results for Q2 and H1 2024.

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported its financial results for Q2 and H1 2024. Q2 operating revenues decreased slightly to $18,750,000, while net income fell to $4,993,000. Basic and Diluted EPS for Q2 decreased by $0.10 to $0.35. The decline in net income was primarily due to higher expenses and lower AFUDC.

For H1 2024, operating revenues increased to $36,378,000, but net income decreased to $9,320,000. Basic and Diluted EPS for H1 fell by $0.06 to $0.65. The company invested $20.9 million in capital projects during H1 and plans to invest an additional $21.3 million in 2024 for infrastructure improvements and expansion.

Positive

• Operating revenues for H1 2024 increased by $2,210,000 to $36,378,000
• Customer base growth contributed to increased revenues
• Company invested $20.9 million in capital projects during H1 2024
• Plans to invest an additional $21.3 million in infrastructure improvements in 2024

Negative

• Q2 net income decreased by $1,531,000 to $4,993,000
• Q2 Basic and Diluted EPS decreased by $0.10 to $0.35
• H1 net income decreased by $857,000 to $9,320,000
• H1 Basic and Diluted EPS decreased by $0.06 to $0.65
• Higher operation and maintenance expenses, depreciation, and interest on debt

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YORK, Pa., Aug. 02, 2024 (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 2024.

President Hand reported that second quarter operating revenues of $18,750,000 decreased $17,000 and net income of $4,993,000 decreased $1,531,000 compared to the second quarter of 2023. Basic and Diluted Earnings per share of $0.35 for the three-month period decreased $0.10 compared to the same period last year. The decrease in net income was primarily attributable to higher operation and maintenance expenses and depreciation, higher interest on debt, and lower allowance for funds used during construction (AFUDC) which were partially offset by lower pension costs. AFUDC is the cost of debt and equity funds used to finance plant construction.

President Hand also reported that the first six months operating revenues of $36,378,000 increased $2,210,000, but net income of $9,320,000 decreased $857,000 compared to the first six months of 2023. Increased revenues were primarily due to an increase in rates effective March 1, 2023 partially offset by a reset to zero 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. Growth in the customer base also added to revenues. The Company incurred lower pension costs. The increased revenue and lower pension costs were more than offset by higher operation and maintenance expenses and depreciation, and higher interest on debt. Basic and Diluted Earnings per share of $0.65 for the six-month period decreased $0.06 compared to the same period last year.

During the first six months of 2024, the Company invested $20.9 million in capital projects for armoring and replacing the spillway of the Lake Williams dam, wastewater treatment plant construction, as well as various replacements and improvements to infrastructure and routine items. The Company estimates it will invest an additional $21.3 million in 2024, excluding acquisitions, for armoring and replacing the spillway of the Lake Williams dam, additional main extensions, wastewater treatment plant construction, 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
		2024			2023			2024			2023
Operating Revenues	$	18,750		$	18,767		$	36,378		$	34,168
Net Income	$	4,993		$	6,524		$	9,320		$	10,177
Average Number of Common Shares Outstanding		14,341			14,289			14,333			14,282
Basic and Diluted Earnings Per Common Share	$	0.35		$	0.45		$	0.65		$	0.71
Dividends Declared Per Common Share	$	0.2108		$	0.2027		$	0.4216		$	0.4054

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

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What were York Water Company's (YORW) Q2 2024 financial results?

York Water Company reported Q2 2024 operating revenues of $18,750,000, a slight decrease from the previous year. Net income was $4,993,000, down by $1,531,000, and Basic and Diluted EPS decreased by $0.10 to $0.35.

How did York Water Company's (YORW) H1 2024 performance compare to H1 2023?

For H1 2024, York Water Company's operating revenues increased by $2,210,000 to $36,378,000. However, net income decreased by $857,000 to $9,320,000, and Basic and Diluted EPS fell by $0.06 to $0.65 compared to H1 2023.

What capital investments did York Water Company (YORW) make in H1 2024?

York Water Company invested $20.9 million in capital projects during H1 2024, focusing on armoring and replacing the Lake Williams dam spillway, wastewater treatment plant construction, and various infrastructure improvements.

What are York Water Company's (YORW) investment plans for the remainder of 2024?

York Water Company plans to invest an additional $21.3 million in 2024, excluding acquisitions, for infrastructure improvements including the Lake Williams dam spillway, main extensions, wastewater treatment plant construction, and routine facility upgrades.