York Water Company Reports 3rd Quarter and Nine Months Earnings

Rhea-AI Summary

The York Water Company (NASDAQ:YORW) reported strong financial results for Q3 and the first nine months of 2022. Q3 operating revenues reached $15.81 million, up $1.31 million year-over-year, with net income of $5.68 million increasing by $887,000. Basic earnings per share rose to $0.40. For the nine-month period, revenues reached $44.95 million, up $3.57 million, with net income of $14.57 million. The company invested $34.1 million in construction and improvements, indicating a commitment to enhancing its infrastructure.

Positive

• Q3 operating revenues of $15.81 million, up $1.31 million year-over-year.
• Net income of $5.68 million for Q3, an increase of $887,000.
• Basic earnings per share increased to $0.40, up $0.04 from last year.
• Nine-month operating revenues of $44.95 million, an increase of $3.57 million.
• Net income for the nine-month period rose to $14.57 million, up $1.59 million.
• Major investments totaling $34.1 million in infrastructure and acquisitions.

Negative

• Higher operation and maintenance expenses partially offset revenue gains.
• Increased depreciation costs.

YORK, Pa., Nov. 03, 2022 (GLOBE NEWSWIRE) -- The York Water Company's (NASDAQ:YORW) President, JT Hand, announced the Company's financial results for the third quarter and the first nine months of 2022.

President Hand reported that third quarter operating revenues of $15,811,000 increased $1,308,000 and net income of $5,681,000 increased $887,000 compared to the third quarter of 2021. Basic and Diluted Earnings per share of $0.40 for the three-month period increased $0.04 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. Income taxes decreased due to higher deductions from the IRS tangible property regulations.

President Hand also reported that the first nine months operating revenues of $44,950,000 increased $3,565,000 and net income of $14,569,000 increased $1,586,000 compared to the first nine 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 $1.05 for the nine-month period increased $0.06 compared to the same period last year.

During the first nine months of 2022, the Company invested $34.1 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. In addition, the Company invested a combined $2.8 million in the acquisitions of the water system and the wastewater collection and treatment system jointly owned by Letterkenny Industrial Development Authority and Franklin County General Authority and the water system and the wastewater collection and treatment system of Country View Manor Community, LLC. The Company estimates it will invest an additional $11.0 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 September 30
	In 000's (except per share)
	Quarter				Nine Months
	2022		2021		2022		2021
Operating Revenues	$	15,811	$	14,503	$	44,950	$	41,385
Net Income	$	5,681	$	4,794	$	14,569	$	12,983
Average Number of Common Shares Outstanding		14,255		13,084		13,854		13,070
Basic and Diluted Earnings Per Common Share	$	0.40	$	0.36	$	1.05	$	0.99
Dividends Declared Per Common Share	$	0.1949	$	0.1874	$	0.5847	$	0.5622

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 Q3 2022 earnings for York Water Company (YORW)?

In Q3 2022, York Water Company reported earnings of $5.68 million, with basic earnings per share at $0.40.

How much did York Water Company invest in infrastructure during 2022?

York Water Company invested $34.1 million in construction expenditures in 2022.

What were the operating revenues for York Water Company in the first nine months of 2022?

Operating revenues for the first nine months of 2022 were $44.95 million, an increase of $3.57 million year-over-year.

Did York Water Company experience revenue growth in Q3 2022?

Yes, York Water Company experienced revenue growth of $1.31 million in Q3 2022 compared to Q3 2021.

What factors contributed to the revenue increase for York Water Company?

The revenue increase was primarily due to the growth in the customer base from the West Manheim Township wastewater acquisition and the Distribution System Improvement Charge (DSIC).