York Water Co. Reports Earnings Results for the Fourth Quarter and Year 2011; Provides Capital Expenditure Guidance for the Year 2012
March 12, 2012 at 02:25 pm EDT
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York Water Co. reported earnings results for the fourth quarter and year 2011. For the quarter, the company reported net income was $2,123,000 or $0.16 per basic share on operating revenues of $10,081,000 against $2,076,000 or $0.17 per basic share on operating revenues of $9,754,000 for the same period a year ago.
For the year, the company reported that annual operating revenues increased $1,624,000 to $40,629,000 from $39,005,000 in 2010 and that net income increased $155,000 to $9,084,000 compared to $8,929,000 in 2010. Higher water revenues due to growth in the customer base and a rate increase effective in November 2010, and lower income taxes caused the majority of the increase in net income. Increased net income was partially offset by higher distribution maintenance expenses, increased retirement and depreciation expenses, an increase in the allowance for doubtful accounts, and higher interest on long-term debt. Earnings per share were $0.71 in both 2011 and 2010. Although revenues and net income were higher in 2011, they were impacted by a reduction in water usage due to record rainfall in the company's service area. During the year, the company invested $9.5 million in capital projects for upgrades to water treatment facilities and standpipes as well as various replacements of aging infrastructure.
The company plans to invest approximately $12.0 million in 2012 and $13.7 million in 2013 for expansion and improvements to its pipes, facilities and dams to ensure a safe, adequate, and reliable water supply for the company's growing customer base.
The York Water Company is an investor-owned water utility in the United States. The primary business of the Company is to impound, purify to meet or exceed safe drinking water standards and distribute water. It also owns and operates three wastewater collection systems and ten wastewater collection and treatment systems. It operates within its franchised water and wastewater territory, which covers portions of 56 municipalities within four counties in south-central Pennsylvania. It covers the areas of billing, payment procedures, dispute processing, terminations, service territory, debt and equity financing and rate setting. The Company obtains the bulk of its water supply for its primary system for York and Adams Counties from both the South Branch and East Branch of the Codorus Creek. It has two reservoirs, Lake Williams and Lake Redman, which together hold up to approximately 2.2 billion gallons of water. Water service is supplied through the Company's own distribution system.
THE YORK WATER COMPANY 
