-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, gpw2U3VF0MCaW+RaN+dliTL35QlsBoeGgKwdBRGbytzORxhpB6BF2iM8IU0U4eM6 sc9e/Plk/cgl5QMmNfREaA== 0000108985-95-000013.txt : 19950804 0000108985-95-000013.hdr.sgml : 19950804 ACCESSION NUMBER: 0000108985-95-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950731 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: YORK WATER CO CENTRAL INDEX KEY: 0000108985 STANDARD INDUSTRIAL CLASSIFICATION: 4941 IRS NUMBER: 231242500 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-00690 FILM NUMBER: 95557313 BUSINESS ADDRESS: STREET 1: 130 E MARKET ST CITY: YORK STATE: PA ZIP: 17405 BUSINESS PHONE: 7178453601 MAIL ADDRESS: STREET 1: PO BOX 15089 10-Q 1 QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended June 30, 1995 Commission File No. 0-690 THE YORK WATER COMPANY (Exact name of Registrant as specified in its Charter) PENNSYLVANIA 23-1242500 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 130 East Market Street, York, Pennsylvania 17401 (Address of principal executive offices) (Zip Code) Registrant's telephone number including Area Code 717-845-3601 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common stock, $10 par value 633,498 Shares outstanding as of June 30, 1995 THE YORK WATER COMPANY PART I - FINANCIAL INFORMATION Item 1. Financial Statements Balance Sheet (Unaudited) As Of As of June 30,1995 Dec. 31, 1994 UTILITY PLANT, at original cost $85,837,539 $83,642,650 Less-Reserve for depreciation 11,250,086 10,535,512 74,587,453 73,107,138 OTHER PHYSICAL PROPERTY: Less-Reserve for depreciation of $52,648 in 1995 and $50,312 in 1994 427,827 430,162 CURRENT ASSETS: Receivables, less reserves of $90,000 in 1995 and in 1994 2,214,631 2,211,288 Materials and supplies, at cost (first-in, first-out) 263,629 298,356 Prepaid expenses 123,147 111,278 Deferred income taxes 61,377 64,877 2,662,784 2,685,799 OTHER LONG-TERM ASSETS: Prepaid pension cost 1,466,590 1,402,946 Deferred debt expense 418,045 445,713 Deferred rate case expense 91,182 139,864 Notes receivable 1,120,863 1,155,753 Deferred regulatory assets 6,643,407 6,885,508 Other 736,129 714,447 10,476,216 10,744,231 $88,154,280 $86,967,330 THE YORK WATER COMPANY Balance Sheet (Unaudited) As Of As Of June 30,1995 Dec. 31, 1994 CAPITALIZATION Common stock $ 6,334,977 $ 6,296,836 Capital surplus 13,345,155 13,146,153 Earnings retained in the business 1,809,699 1,808,925 21,489,831 21,251,914 LONG-TERM DEBT 6.25% Ind. Dev. Auth. Rev. Refund Bonds, due 2000 4,300,000 4,300,000 10.05% Senior Notes, Series C, due 2020 6,500,000 6,500,000 10.17% Senior Notes, Series A, due 2019 6,000,000 6,000,000 9.6% Senior Notes, Series B,due 2019 5,000,000 5,000,000 8.43% Senior Notes,Series D,due 2022 7,500,000 7,500,000 4.75% Ind. Dev. Auth. Rev. Refunding Bonds, due 2009 2,700,000 2,700,000 32,000,000 32,000,000 CURRENT LIABILITIES Short-term borrowings 2,128,000 1,302,000 Accounts payable 490,192 891,034 Dividends payable 466,429 464,295 Accrued taxes - 331,847 Advance water revenues 188,853 169,110 Accrued interest 680,240 680,240 Other accrued expenses 1,245,861 991,079 5,199,575 4,829,605 DEFERRED CREDITS Customers' advances for construction15,867,883 15,037,501 Contributions in aid of construction 4,375,345 4,375,345 Deferred income taxes 7,777,952 7,969,029 Deferred regulatory liabilities 1,443,694 1,503,936 29,464,874 28,885,811 $88,154,280 $86,967,330 THE YORK WATER COMPANY Statements of Income
(Unaudited) (Unaudited) Three Months Ended Six Months Ended June 30 June 30 1995 1994 1995 1994 WATER OPERATING REVENUES Residential $2,187,996 $2,044,380 $4,283,683 $4,029,118 Commercial and industrial 1,336,808 1,339,638 2,627,088 2,532,806 Other 312,509 288,051 621,550 570,320 3,837,313 3,672,069 7,532,321 7,132,244 OPERATING EXPENSES Operation and maintenance 827,523 768,933 1,581,643 1,555,014 Administrative and general 833,521 804,994 1,672,330 1,661,745 1,661,044 1,573,927 3,253,973 3,216,759 Depreciation 377,479 385,393 754,959 717,477 Taxes other than income taxes 232,556 226,439 482,093 469,561 Federal and state income taxes 300,254 237,841 629,908 502,556 2,571,333 2,423,600 5,120,933 4,906,353 Operating Income 1,265,980 1,248,469 2,411,388 2,225,891 INTEREST EXPENSE AND OTHER EXPENSE/(INCOME) Interest on long-term debt 693,175 712,300 1,386,350 1,446,537 Interest on short-term debt 37,361 1,154 64,412 3,096 Allowance for funds used during construction (6,128) (15,292) (85,385) (23,710) Gain on sale of land - - - (215,417) Other income, net (32,264) 41,532 (89,899) (97,120) 692,144 739,694 1,275,478 1,113,386 Net Income $ 573,836 $ 508,775 $1,135,910 $1,112,505 Earnings Per Share $0.91 $0.81 $1.80 $1.78 Cash Dividends Per Share $0.90 $0.90 $1.80 $1.80 /TABLE THE YORK WATER COMPANY Statements of Cash Flows
(Unaudited) (Unaudited) Six Months Six Months Ended Ended June 30, 1995 June 30, 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,135,910 $ 1,112,505 Adjustments to reconcile net income to net cash provided by operating activities Gain on sale of land - (215,417) Depreciation 754,959 717,477 Provision for losses on accounts receivable 45,000 45,000 (Decrease) increase in deferred income taxes (including regulatory assets and liabilities) (5,718) 311,107 Changes in assets and liabilities: Increase in accounts receivable (48,343) (95,498) Increase in recoverable income taxes - (256,244) Decrease in materials and supplies 34,727 45,344 Increase in prepaid expenses (75,513) (102,371) Decrease in accounts payable, accrued expenses and other liabilities (124,183) (417,528) Decrease in accrued interest and taxes (331,847) (418,475) Decrease (increase) in other assets 98,534 (19,550) Net cash provided by operating activities 1,483,526 706,350 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of temporary investments - (10,111) Maturities of temporary investments - 2,007,935 Proceeds from the sale of land - 249,000 Costs incurred relating to the sale of land - (33,583) Construction expenditures (2,276,805) (1,659,157) Customers' advances for construction and contributions in aid of construction 830,382 274,377 Net cash provided by investing activities (1,446,423) 828,461 CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) under line-of-credit agreements 826,000 (452,000) Issuance of common stock under dividend reinvestment plan 202,454 196,328 Issuance of common stock under employee stock purchase plan 34,689 30,491 Dividends paid (1,135,136) (1,121,064) Decrease in notes receivable 34,890 24,989 Net cash (used in) financing activities (37,103) (1,321,256) Net increase in cash and cash equivalents - 213,555 Cash and cash equivalents at beginning of period - 42,634 Cash and cash equivalents at end of period $ - $ 256,189 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest, net of amounts capitalized $ 1,307,093 $ 1,375,210 Income taxes 808,465 475,463 /TABLE THE YORK WATER COMPANY Notes to Interim Financial Statements 1. Interim Financial Information The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair presentation of results for such periods. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company's Annual Report to Shareholders for the year ended 1994. 2. Earnings Per Share Earnings per share for the three months ended March 31, 1995 and 1994 were based on weighted average shares outstanding of 632,090 and 624,338, respectively. THE YORK WATER COMPANY Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Three Months Ended June 30, 1995 Compared with Three Months Ended June 30, 1994 Net income for the three months ended June 30, 1995 was $573,836, an increase of $65,061 compared to the three months ended June 30, 1994. Operating revenues for the three months ended June 30, 1995 increased $165,244 (4.5%) compared to the three months ended June 30, 1994. The revenue increase resulted primarily from an increase in rates of 3.7% approved by the Pennsylvania Public Utility Commission (PPUC) effective September 23, 1994 and an increase in the volume of water sold as a result of adding 1,209 customers since June 30, 1994. Operation and maintenance expenses for the three months ended June 30, 1995 increased $58,590 (7.6%) compared to the three months ended March 31, 1994 primarily due to increased repair expenses associated with electric pumping equipment. Administrative and general expenses for the three months ended June 30, 1995 increased $28,527 (3.5%) compared to the three months ended June 30, 1994 primarily due to an increase in regulatory commission expenses. Federal and state income taxes for the three months ended June 30, 1995 increased $62,413 when compared to the three months ended June 30, 1994 principally as a result of an increase in taxable net income. Interest on short-term debt for the three months ended June 30, 1995 increased $36,207 when compared to the three months ended June 30, 1994. The increase is due primarily to an increase in short- term debt outstanding during the three months ended June 30, 1995. Six Months Ended June 30, 1995 Compared with Six Months Ended June 30, 1994 Net income for the six months ended June 30, 1995 was $1,135,910, an increase of $23,405 (2.1%) compared to the six months ended June 30, 1994. Operating revenues for the six months ended June 30, 1995 increased $400,077 (5.6%) compared to the six months ended June 30, 1994. The revenue increase resulted primarily from an increase in rates of 3.7% approved by the PPUC effective September 23, 1994 and an increase in the volume of water sold as a result of adding 1,209 customers since June 30, 1994. Depreciation expense for the six months ended June 30, 1995 increased $37,482 (5.2%) compared to the six months ended June 30, 1994 as a result of increased plant investment. Federal and state income taxes for the six months ended June 30, 1995 increased $127,352 when compared to the six months ended June 30, 1994 principally as a result of an increase in taxable net income. Interest on long-term debt for the six months ended June 30, 1995 decreased $60,187 (4.2%) compared to the six months ended June 30, 1994. The decrease in interest on long-term debt is primarily related to the issuance of $2,700,000 4.75% Revenue Refunding Bonds to replace a like amount of bonds with an interest rate of 7.0% in March of 1994. Interest on short-term debt for the six months ended June 30, 1995 increased $61,316 when compared to the six months ended June 30, 1994. The increase is due primarily to an increase in short-term debt outstanding during the six months ended June 30, 1995. Allowance for funds used during construction for the six months ended June 30, 1995 increased $61,675 when compared to the six months ended June 30, 1994. The increase was due to an increase in the Company's plant investment under construction during the six months ended June 30, 1995. During the six months ended June 30, 1994, the Company had a gain on the sale of one parcel of land of $215,417 ($124,759 after tax). Rate Developments Within the last several years the Company has filed written applications for rate increases with the PPUC and has been granted rate relief as a result of such requests. The most recent formal rate request was filed by the Company on April 29, 1994 seeking a $999,725 increase in annual revenues. Effective September 23, 1994, the PPUC authorized an increase in rates designed to produce approximately $550,000 in additional annual revenues, an increase of 3.7%. Liquidity and Capital Resources During the first six months of 1995, the per capita volume of water sold did not significantly change compared to the first six months of 1994. The Company does not anticipate any change in the level of water usage which would have a material impact on future results of operations. During the six months ended June 30, 1995, the Company had $2,276,805 of construction expenditures. The Company financed such expenditures through internally generated funds, customers' advances, proceeds from the issuance of common stock under its dividend reinvestment plan (stock issued in lieu of cash dividends) and employee stock purchase plan and short-term borrowings. The Company anticipates annual construction expenditures for 1995 and 1996 of approximately $4,491,000 and $3,645,000, respectively. The Company plans to finance such expenditures with internally generated funds, customers' advances short-term borrowings and proceeds from the issuance of common stock under its dividend reinvestment plan (stock issued in lieu of cash dividends) and employee stock purchase plan. The Company anticipates that it will submit an application in the future with the PPUC proposing increases in rates to provide a fair rates of return on the capital expenditures associated with its 1995 and 1996 construction projects. During the six months ended June 30, 1995, net cash used in investing and financing activities exceeded net cash provided by operating activities. The Company anticipates that during the remainder of 1995 net cash used in investing and financing activities will again exceed net cash provided by operating activities. Customers' advances, borrowings against the Company's lines of credit and proceeds from the issuance of common stock under its dividend reinvestment plan (stock issued in lieu of cash dividends) and employee stock purchase plan are used to satisfy the need for additional cash. As of June 30, 1995, current liabilities exceeded current assets by $2,536,791. As of December 31, 1994, current liabilities exceeded current assets by $2,143,806. Generally, the Company finances a portion of its construction expenditures with borrowings against its lines of credit until such borrowings reach an amount which would justify issuing long-term debt. Accordingly, current liabilities frequently exceed current assets on the Company's balance sheets. Short-term borrowings from lines of credit as of June 30, 1995 were $2,128,000. The Company maintains lines of credit aggregating $10,000,000. THE YORK WATER COMPANY Part II - Other Information Item 4. Results of Votes of Security Holders The Annual Meeting of the Shareholders of The York Water Company was convened May 1, 1995 at the office of the Company, 130 East Market Street, in the City of York, Pennsylvania, at 1:00 P.M. for the purpose of taking action upon the following proposals: (1) To elect three (3) Directors to three-year terms of office. The actions taken by the Shareholders concerning the election of Directors are as follows: Irvin S. Naylor William T. Morris Horace Keesey III For election 457,856.898 456,363.050 457,636.951 Shares withheld 1,405.258 2,072.157 1,348.890 The following Directors' terms of office continued after the Annual Meeting. Robert E. Skold Josephine S. Appell Paul W. Ware Frank Motter John L. Finlayson George Hay Kain, III (2) To appoint KPMG Peat Marwick as independent accountants to audit the books and accounts of the Company for the year 1995. The actions taken by the Shareholders concerning the appointment of KPMG Peat Marwick as independent accountants are as follows: For Approval 457,176.539 Against Approval 1,341.475 Abstaining From Voting 1,143.344 THE YORK WATER COMPANY SIGNATURES Pursuant to the requirements of the Securities Exchange Act of the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE YORK WATER COMPANY William T. Morris Principal Executive Officer Date: July 26, 1995 Jeffrey S. Osman Principal Financial and Accounting Officer Date: July 26, 1995 EX-27 2
UT 0000108985 YORK WATER COMPANY 6-MOS DEC-31-1995 JUN-30-1995 PER-BOOK 74,587,453 427,827 2,662,784 7,152,634 3,323,942 88,154,280 6,334,977 13,345,155 1,809,699 21,489,831 0 0 32,000,000 2,128,000 0 0 0 0 0 0 32,536,449 88,154,280 7,532,321 629,908 4,491,025 5,120,933 2,411,388 89,899 2,501,287 1,365,377 1,135,910 0 1,135,910 1,135,136 198,500 1,483,526 1.80 1.80
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