York Water Company Announces Increased Earnings for Its 196th Year of Operation in 2011
March 12 2012 - 1:25PM
The York Water Company's (Nasdaq:YORW) President, Jeffrey R. Hines,
announced today the Company's fourth quarter and 2011 earnings.
President Hines reported that operating revenues for the fourth
quarter of 2011 increased $327,000 over the fourth quarter of 2010
and net income for the fourth quarter of 2011 increased $47,000
compared to the 2010 fourth quarter. Higher operating revenues and
lower income taxes offset increases in maintenance, depreciation
and retirement expenses. Earnings per share for the fourth quarter
of 2011 were $0.01 lower than the fourth quarter of 2010.
President Hines also reported that annual operating revenues for
2011 increased $1,624,000 and that net income increased $155,000
compared to 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. The total rainfall for 2011 was about
63.0 inches which was over 3 inches greater than the previous
record of 59.8 inches set in 1972 and nearly 22 inches, or 53%,
greater than the average annual precipitation of 41.2 inches. York
Water has been maintaining rainfall records since 1888.
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.
During 2011, the Company replaced or relined over 41,000 feet
of pipe to improve its distribution system, reduce ongoing
expenses, and improve customer service. President Hines
reported that York Water 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.
|
Period Ended December
31 In 000's (except share and per share) |
|
Quarter |
Twelve
Months |
|
2011 |
2010 |
2011 |
2010 |
Operating Revenues |
$ 10,081 |
$ 9,754 |
$ 40,629 |
$ 39,005 |
Net Income |
$ 2,123 |
$ 2,076 |
$ 9,084 |
$ 8,929 |
Average Number of Common Shares
Outstanding |
12,772 |
12,672 |
12,734 |
12,627 |
Basic Earnings Per Common Share |
$ 0.16 |
$ 0.17 |
$ 0.71 |
$ 0.71 |
Dividends Paid Per Common Share |
$ 0.134 |
$ 0.131 |
$ 0.527 |
$ 0.515 |
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.
The York Water Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5589
CONTACT: Jeffrey R. Hines, President
jeffh@yorkwater.com
Kathleen M. Miller, Chief Financial Officer
kathym@yorkwater.com
717-845-3601
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