York Water Company Reports 2nd Quarter and Six Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported its Q2 2021 financial results, showing operating revenues of $13.8 million, up $481,000 year-over-year. Net income reached $4.5 million, an increase of $302,000. EPS rose to $0.35, reflecting a $0.03 gain from the previous year. For the first half of 2021, revenues totaled $26.9 million, up $685,000, while net income was $8.2 million, a slight increase of $5,000. Investments of $16 million were made in infrastructure upgrades. The outlook remains cautious amid rising operational expenses.

Positive

• Q2 operating revenues increased by $481,000 to $13.8 million.
• Net income for Q2 rose by $302,000 to $4.5 million.
• EPS for Q2 increased by $0.03 to $0.35.
• First half revenues of $26.9 million, up $685,000.
• Investment of $16 million in infrastructure upgrades.

Negative

• Higher operation and maintenance expenses were reported.
• Increased depreciation expenses offset revenue gains.
• No recurring life insurance gain compared to the same period last year.

YORK, Pa., Aug. 05, 2021 (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 2021.

President Hand reported that second quarter operating revenues of $13,801,000 increased $481,000 and net income of $4,484,000 increased $302,000 compared to the second quarter of 2020. Basic and Diluted Earnings per share of $0.35 for the three-month period increased $0.03 compared to the same period last year. Increased revenues were primarily due to growth in the customer base and higher billing and revenue collection services. 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.

President Hand also reported that the first six months operating revenues of $26,882,000 increased $685,000 and net income of $8,189,000 increased $5,000 compared to the first six months of 2020 which included a non-recurring gain on life insurance of $515,000 not repeated in 2021. Increased revenues were primarily due to growth in the customer base and higher billing and revenue collection services. 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 were $0.63 for the six-month period, the same as the first six months of last year.

During the first six months of 2021, the Company invested $16.0 million in construction expenditures for an upgrade to the enterprise software system as well as various replacements and improvements to infrastructure. The Company estimates it will invest an additional $16.5 million in 2021, excluding acquisitions, for additional main extensions, an elevated water tank, completion of a wastewater treatment plant, 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
		2021		2020		2021		2020
Operating Revenues	$	13,801	$	13,320	$	26,882	$	26,197
Net Income	$	4,484	$	4,182	$	8,189	$	8,184
Average Number of Common Shares Outstanding		13,069		13,022		13,062		13,016
Basic and Diluted Earnings Per Common Share	$	0.35	$	0.32	$	0.63	$	0.63
Dividends Declared Per Common Share	$	0.1874	$	0.1802	$	0.3748	$	0.3604

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 York Water Company's earnings for Q2 2021?

York Water Company reported Q2 2021 earnings of $4.5 million, or $0.35 per share.

How did York Water Company's revenue change in the first half of 2021?

In the first half of 2021, York Water's revenue increased by $685,000, totaling $26.9 million.

What are the key financial figures for York Water Company in Q2 2021?

Key figures include operating revenues of $13.8 million and net income of $4.5 million.

What investments did York Water Company make in 2021?

York Water Company invested $16 million in infrastructure upgrades during the first six months of 2021.

Did York Water Company's expenses increase in Q2 2021?

Yes, higher operation and maintenance expenses were reported, impacting overall profitability.