|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
New Jersey
(State of incorporation)
|
22-1114430
(IRS employer identification no.)
|
PAGE
|
||
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
13
|
||
22
|
||
22
|
||
23
|
||
23
|
||
23
|
||
23
|
||
23
|
||
23
|
||
24
|
||
25
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Operating Revenues
|
$ | 28,671 | $ | 29,585 | $ | 78,769 | $ | 77,768 | ||||||||
Operating Expenses:
|
||||||||||||||||
Operations and Maintenance
|
14,667 | 14,036 | 42,760 | 41,205 | ||||||||||||
Depreciation
|
2,421 | 2,387 | 7,250 | 6,827 | ||||||||||||
Other Taxes
|
3,067 | 3,141 | 8,737 | 8,532 | ||||||||||||
Total Operating Expenses
|
20,155 | 19,564 | 58,747 | 56,564 | ||||||||||||
Operating Income
|
8,516 | 10,021 | 20,022 | 21,204 | ||||||||||||
Other Income (Expense):
|
||||||||||||||||
Allowance for Funds Used During Construction
|
235 | 143 | 626 | 785 | ||||||||||||
Other Income
|
759 | 172 | 1,118 | 532 | ||||||||||||
Other Expense
|
(20 | ) | (129 | ) | (180 | ) | (181 | ) | ||||||||
Total Other Income, net
|
974 | 186 | 1,564 | 1,136 | ||||||||||||
Interest Charges
|
1,703 | 1,819 | 4,631 | 5,125 | ||||||||||||
Income before Income Taxes
|
7,787 | 8,388 | 16,955 | 17,215 | ||||||||||||
Income Taxes
|
2,644 | 2,652 | 5,557 | 5,495 | ||||||||||||
Net Income
|
5,143 | 5,736 | 11,398 | 11,720 | ||||||||||||
Preferred Stock Dividend Requirements
|
52 | 52 | 155 | 156 | ||||||||||||
Earnings Applicable to Common Stock
|
$ | 5,091 | $ | 5,684 | $ | 11,243 | $ | 11,564 | ||||||||
|
||||||||||||||||
Earnings per share of Common Stock:
|
||||||||||||||||
Basic
|
$ | 0.33 | $ | 0.37 | $ | 0.72 | $ | 0.81 | ||||||||
Diluted
|
$ | 0.32 | $ | 0.36 | $ | 0.72 | $ | 0.80 | ||||||||
Average Number of
|
||||||||||||||||
Common Shares Outstanding :
|
||||||||||||||||
Basic
|
15,622 | 15,518 | 15,599 | 14,350 | ||||||||||||
Diluted
|
15,885 | 15,781 | 15,862 | 14,613 | ||||||||||||
Cash Dividends Paid per Common Share
|
$ | 0.1825 | $ | 0.1800 | $ | 0.5475 | $ | 0.5400 | ||||||||
See Notes to Unaudited Condensed Consolidated Financial Statements.
|
||||||||||||||||
MIDDLESEX WATER COMPANY
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited )
|
(In thousands)
|
September 30,
|
December 31,
|
||||||||
ASSETS
|
2011
|
2010
|
|||||||
UTILITY PLANT:
|
Water Production
|
$ | 125,242 | $ | 118,919 | ||||
Transmission and Distribution
|
320,457 | 308,468 | |||||||
General
|
45,114 | 44,368 | |||||||
Construction Work in Progress
|
16,843 | 11,715 | |||||||
TOTAL
|
507,656 | 483,470 | |||||||
Less Accumulated Depreciation
|
90,427 | 84,737 | |||||||
UTILITY PLANT - NET
|
417,229 | 398,733 | |||||||
CURRENT ASSETS:
|
Cash and Cash Equivalents
|
4,134 | 2,453 | ||||||
Accounts Receivable, net
|
13,068 | 11,963 | |||||||
Unbilled Revenues
|
6,319 | 4,752 | |||||||
Materials and Supplies (at average cost)
|
2,009 | 2,196 | |||||||
Prepayments
|
2,123 | 1,401 | |||||||
TOTAL CURRENT ASSETS
|
27,653 | 22,765 | |||||||
DEFERRED CHARGES
|
Unamortized Debt Expense
|
2,650 | 2,739 | ||||||
AND OTHER ASSETS:
|
Preliminary Survey and Investigation Charges
|
5,453 | 7,023 | ||||||
Regulatory Assets
|
37,421 | 38,771 | |||||||
Operations and Developer Contracts Fees Receivable
|
4,062 | 4,589 | |||||||
Restricted Cash
|
4,552 | 7,056 | |||||||
Non-utility Assets - Net
|
7,511 | 7,122 | |||||||
Other
|
622 | 387 | |||||||
TOTAL DEFERRED CHARGES AND OTHER ASSETS
|
62,271 | 67,687 | |||||||
TOTAL ASSETS
|
$ | 507,153 | $ | 489,185 | |||||
CAPITALIZATION AND LIABILITIES
|
|||||||||
CAPITALIZATION:
|
Common Stock, No Par Value
|
$ | 141,018 | $ | 139,534 | ||||
Retained Earnings
|
36,450 | 33,745 | |||||||
TOTAL COMMON EQUITY
|
177,468 | 173,279 | |||||||
Preferred Stock
|
3,353 | 3,362 | |||||||
Long-term Debt
|
132,641 | 133,844 | |||||||
TOTAL CAPITALIZATION
|
313,462 | 310,485 | |||||||
CURRENT
|
Current Portion of Long-term Debt
|
4,564 | 4,432 | ||||||
LIABILITIES:
|
Notes Payable
|
24,250 | 17,000 | ||||||
Accounts Payable
|
5,789 | 6,403 | |||||||
Accrued Taxes
|
10,671 | 8,752 | |||||||
Accrued Interest
|
895 | 1,598 | |||||||
Unearned Revenues and Advanced Service Fees
|
751 | 864 | |||||||
Other
|
1,412 | 1,691 | |||||||
TOTAL CURRENT LIABILITIES
|
48,332 | 40,740 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7)
|
|||||||||
DEFERRED CREDITS
|
Customer Advances for Construction
|
21,630 | 21,261 | ||||||
AND OTHER LIABILITIES:
|
Accumulated Deferred Investment Tax Credits
|
1,166 | 1,225 | ||||||
Accumulated Deferred Income Taxes
|
31,112 | 29,691 | |||||||
Employee Benefit Plans
|
26,096 | 28,562 | |||||||
Regulatory Liability - Cost of Utility Plant Removal
|
7,869 | 7,369 | |||||||
Other
|
617 | 154 | |||||||
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES
|
88,490 | 88,262 | |||||||
CONTRIBUTIONS IN AID OF CONSTRUCTION
|
56,869 | 49,698 | |||||||
TOTAL CAPITALIZATION AND LIABILITIES
|
$ | 507,153 | $ | 489,185 | |||||
See Notes to Unaudited Condensed Consolidated Financial Statements.
|
MIDDLESEX WATER COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In thousands)
|
Nine Months Ended September 30,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Income
|
$ | 11,398 | $ | 11,720 | ||||
Adjustments to Reconcile Net Income to
|
||||||||
Net Cash Provided by Operating Activities:
|
||||||||
Depreciation and Amortization
|
7,767 | 7,387 | ||||||
Provision for Deferred Income Taxes and Investment Tax Credits
|
1,297 | 114 | ||||||
Equity Portion of Allowance for Funds Used During Construction (AFUDC)
|
(405 | ) | (488 | ) | ||||
Cash Surrender Value of Life Insurance
|
(42 | ) | 159 | |||||
Stock Compensation Expense
|
315 | 277 | ||||||
Changes in Assets and Liabilities:
|
||||||||
Accounts Receivable
|
(578 | ) | (3,503 | ) | ||||
Unbilled Revenues
|
(1,567 | ) | (2,549 | ) | ||||
Materials & Supplies
|
187 | (306 | ) | |||||
Prepayments
|
(722 | ) | (488 | ) | ||||
Accounts Payable
|
(614 | ) | 1,168 | |||||
Accrued Taxes
|
1,919 | 3,938 | ||||||
Accrued Interest
|
(703 | ) | (1,034 | ) | ||||
Employee Benefit Plans
|
(1,226 | ) | (180 | ) | ||||
Unearned Revenue & Advanced Service Fees
|
(113 | ) | 59 | |||||
Other Assets and Liabilities
|
158 | (531 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
17,071 | 15,743 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Utility Plant Expenditures, Including AFUDC of $221 in 2011, $297 in 2010
|
(17,647 | ) | (22,223 | ) | ||||
Restricted Cash
|
2,504 | 505 | ||||||
NET CASH USED IN INVESTING ACTIVITIES
|
(15,143 | ) | (21,718 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Redemption of Long-term Debt
|
(3,818 | ) | (3,720 | ) | ||||
Proceeds from Issuance of Long-term Debt
|
2,747 | 10,000 | ||||||
Net Short-term Bank Borrowings
|
7,250 | (24,050 | ) | |||||
Deferred Debt Issuance Expense
|
(34 | ) | (7 | ) | ||||
Common Stock Issuance Expense
|
- | (133 | ) | |||||
Repurchase of Preferred Stock
|
(9 | ) | (11 | ) | ||||
Proceeds from Issuance of Common Stock
|
1,168 | 29,469 | ||||||
Payment of Common Dividends
|
(8,538 | ) | (7,672 | ) | ||||
Payment of Preferred Dividends
|
(155 | ) | (156 | ) | ||||
Construction Advances and Contributions-Net
|
1,142 | 1,067 | ||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
|
(247 | ) | 4,787 | |||||
NET CHANGES IN CASH AND CASH EQUIVALENTS
|
1,681 | (1,188 | ) | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
2,453 | 4,278 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 4,134 | $ | 3,090 | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:
|
||||||||
Utility Plant received as Construction Advances and Contributions
|
$ | 6,400 | $ | 924 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
|
||||||||
Cash Paid During the Year for:
|
||||||||
Interest
|
$ | 5,365 | $ | 6,167 | ||||
Interest Capitalized
|
$ | 221 | $ | 297 | ||||
Income Taxes
|
$ | 2,614 | $ | 2,726 | ||||
See Notes to Unaudited Condensed Consolidated Financial Statements.
|
MIDDLESEX WATER COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK
|
AND LONG-TERM DEBT
|
(Unaudited)
|
(In thousands)
|
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Common Stock, No Par Value
|
||||||||
Shares Authorized - 40,000 | ||||||||
Shares Outstanding - 2011 - 15,633 | $ | 141,018 | $ | 139,534 | ||||
2010 - 15,566 | ||||||||
Retained Earnings
|
36,450 | 33,745 | ||||||
TOTAL COMMON EQUITY
|
$ | 177,468 | $ | 173,279 | ||||
Cumulative Preferred Stock, No Par Value:
|
||||||||
Shares Authorized - 134 | ||||||||
Shares Outstanding - 32 | ||||||||
Convertible:
|
||||||||
Shares Outstanding, $7.00 Series - 14
|
1,457 | 1,457 | ||||||
Shares Outstanding, $8.00 Series - 7
|
816 | 816 | ||||||
Nonredeemable:
|
||||||||
Shares Outstanding, $7.00 Series - 1
|
80 | 89 | ||||||
Shares Outstanding, $4.75 Series - 10
|
1,000 | 1,000 | ||||||
TOTAL PREFERRED STOCK
|
$ | 3,353 | $ | 3,362 | ||||
Long-term Debt:
|
||||||||
8.05%, Amortizing Secured Note, due December 20, 2021
|
$ | 2,354 | $ | 2,456 | ||||
6.25%, Amortizing Secured Note, due May 19, 2028
|
7,000 | 7,315 | ||||||
6.44%, Amortizing Secured Note, due August 25, 2030
|
5,297 | 5,507 | ||||||
6.46%, Amortizing Secured Note, due September 19, 2031
|
5,577 | 5,787 | ||||||
4.22%, State Revolving Trust Note, due December 31, 2022
|
566 | 585 | ||||||
3.30% to 3.60%, State Revolving Trust Note, due May 1, 2025
|
3,623 | 3,655 | ||||||
3.49%, State Revolving Trust Note, due January 25, 2027
|
633 | 664 | ||||||
4.03%, State Revolving Trust Note, due December 1, 2026
|
846 | 865 | ||||||
4.00% to 5.00%, State Revolving Trust Bond, due August 1, 2021
|
484 | 522 | ||||||
0.00%, State Revolving Fund Bond, due August 1, 2021
|
359 | 397 | ||||||
3.64%, State Revolving Trust Note, due July 1, 2028
|
372 | 387 | ||||||
3.64%, State Revolving Trust Note, due January 1, 2028
|
124 | 130 | ||||||
6.59%, Amortizing Secured Note, due April 20, 2029
|
6,133 | 6,395 | ||||||
7.05%, Amortizing Secured Note, due January 20, 2030
|
4,583 | 4,771 | ||||||
5.69%, Amortizing Secured Note, due January 20, 2030
|
9,402 | 9,786 | ||||||
3.45%, State Revolving Trust Note, due August 1, 2031
|
33 | 17 | ||||||
3.75%, State Revolving Trust Note, due July 1, 2031
|
1,327 | - | ||||||
3.75%, State Revolving Trust Note, due November 30, 2030
|
1,404 | - | ||||||
First Mortgage Bonds:
|
||||||||
5.20%, Series S, due October 1, 2022
|
12,000 | 12,000 | ||||||
5.25%, Series T, due October 1, 2023
|
6,500 | 6,500 | ||||||
5.25%, Series V, due February 1, 2029
|
10,000 | 10,000 | ||||||
5.35%, Series W, due February 1, 2038
|
23,000 | 23,000 | ||||||
0.00%, Series X, due September 1, 2018
|
375 | 430 | ||||||
4.25% to 4.63%, Series Y, due September 1, 2018
|
525 | 590 | ||||||
0.00%, Series Z, due September 1, 2019
|
894 | 1,007 | ||||||
5.25% to 5.75%, Series AA, due September 1, 2019
|
1,315 | 1,440 | ||||||
0.00%, Series BB, due September 1, 2021
|
1,206 | 1,328 | ||||||
4.00% to 5.00%, Series CC, due September 1, 2021
|
1,560 | 1,680 | ||||||
5.10%, Series DD, due January 1, 2032
|
6,000 | 6,000 | ||||||
0.00%, Series EE, due August 1, 2023
|
4,804 | 5,224 | ||||||
3.00% to 5.50%, Series FF, due August 1, 2024
|
6,160 | 6,555 | ||||||
0.00%, Series GG, due August 1, 2026
|
1,352 | 1,440 | ||||||
4.00% to 5.00%, Series HH, due August 1, 2026
|
1,640 | 1,715 | ||||||
0.00%, Series II, due August 1, 2024
|
1,150 | 1,239 | ||||||
3.40% to 5.00%, Series JJ, due August 1, 2027
|
1,560 | 1,625 | ||||||
0.00%, Series KK, due August 1, 2028
|
1,526 | 1,616 | ||||||
5.00% to 5.50%, Series LL, due August 1, 2028
|
1,635 | 1,695 | ||||||
0.00%, Series MM, due August 1, 2030
|
1,901 | 1,968 | ||||||
3.00% to 4.375%, Series NN, due August 1, 2030
|
1,985 | 1,985 | ||||||
SUBTOTAL LONG-TERM DEBT
|
137,205 | 138,276 | ||||||
Less: Current Portion of Long-term Debt | (4,564 | ) | (4,432 | ) | ||||
TOTAL LONG-TERM DEBT | $ | 132,641 | $ | 133,844 |
See Notes to Unaudited Condensed Consolidated Financial Statements.
|
(Thousands of Dollars)
|
||||||||||||||||
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
First Mortgage Bonds
|
$ | 87,088 | $ | 87,579 | $ | 89,037 | $ | 85,405 | ||||||||
SRF Bonds
|
$ | 843 | $ | 850 | $ | 919 | $ | 937 |
(In Thousands Except per Share Amounts)
|
||||||||||||||||
Three Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Basic:
|
Income
|
Shares
|
Income
|
Shares
|
||||||||||||
Net Income
|
$ | 5,143 | 15,622 | $ | 5,736 | 15,518 | ||||||||||
Preferred Dividend
|
(52 | ) | (52 | ) | ||||||||||||
Earnings Applicable to Common Stock
|
$ | 5,091 | 15,622 | $ | 5,684 | 15,518 | ||||||||||
Basic EPS
|
$ | 0.33 | $ | 0.37 | ||||||||||||
Diluted:
|
||||||||||||||||
Earnings Applicable to Common Stock
|
$ | 5,091 | 15,622 | $ | 5,684 | 15,518 | ||||||||||
$7.00 Series Preferred Dividend
|
24 | 167 | 24 | 167 | ||||||||||||
$8.00 Series Preferred Dividend
|
14 | 96 | 14 | 96 | ||||||||||||
Adjusted Earnings Applicable to Common Stock
|
$ | 5,129 | 15,885 | $ | 5,722 | 15,781 | ||||||||||
Diluted EPS
|
$ | 0.32 | $ | 0.36 |
(In Thousands Except per Share Amounts)
|
||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Basic:
|
Income
|
Shares
|
Income
|
Shares
|
||||||||||||
Net Income
|
$ | 11,398 | 15,599 | $ | 11,720 | 14,350 | ||||||||||
Preferred Dividend
|
(155 | ) | (156 | ) | ||||||||||||
Earnings Applicable to Common Stock
|
$ | 11,243 | 15,599 | $ | 11,564 | 14,350 | ||||||||||
Basic EPS
|
$ | 0.72 | $ | 0.81 | ||||||||||||
Diluted:
|
||||||||||||||||
Earnings Applicable to Common Stock
|
$ | 11,243 | 15,599 | $ | 11,564 | 14,350 | ||||||||||
$7.00 Series Preferred Dividend
|
73 | 167 | 73 | 167 | ||||||||||||
$8.00 Series Preferred Dividend
|
42 | 96 | 42 | 96 | ||||||||||||
Adjusted Earnings Applicable to Common Stock
|
$ | 11,358 | 15,862 | $ | 11,679 | 14,613 | ||||||||||
Diluted EPS
|
$ | 0.72 | $ | 0.80 |
(In Thousands)
|
||||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
Operations by Segments:
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Revenues:
|
||||||||||||||||
Regulated
|
$ | 26,262 | $ | 27,062 | $ | 70,935 | $ | 70,083 | ||||||||
Non – Regulated
|
2,605 | 2,826 | 8,220 | 8,183 | ||||||||||||
Inter-segment Elimination
|
(196 | ) | (303 | ) | (386 | ) | (498 | ) | ||||||||
Consolidated Revenues
|
$ | 28,671 | $ | 29,585 | $ | 78,769 | $ | 77,768 | ||||||||
Operating Income:
|
||||||||||||||||
Regulated
|
$ | 8,241 | $ | 9,560 | $ | 18,893 | $ | 19,781 | ||||||||
Non – Regulated
|
275 | 461 | 1,129 | 1,423 | ||||||||||||
Consolidated Operating Income
|
$ | 8,516 | $ | 10,021 | $ | 20,022 | $ | 21,204 | ||||||||
Net Income:
|
||||||||||||||||
Regulated
|
$ | 4,630 | $ | 5,433 | $ | 10,375 | $ | 10,799 | ||||||||
Non – Regulated
|
513 | 303 | 1,023 | 921 | ||||||||||||
Consolidated Net Income
|
$ | 5,143 | $ | 5,736 | $ | 11,398 | $ | 11,720 | ||||||||
Capital Expenditures:
|
||||||||||||||||
Regulated
|
$ | 6,389 | $ | 6,211 | $ | 17,245 | $ | 22,121 | ||||||||
Non – Regulated
|
219 | 31 | 402 | 102 | ||||||||||||
Total Capital Expenditures
|
$ | 6,608 | $ | 6,242 | $ | 17,647 | $ | 22,223 | ||||||||
Assets:
|
As of
September 30,
2011
|
As of
December 31,
2010
|
||||||||||||||
Regulated
|
$ | 504,158 | $ | 486,918 | ||||||||||||
Non – Regulated
|
8,775 | 8,116 | ||||||||||||||
Inter-segment Elimination
|
(5,780 | ) | (5,849 | ) | ||||||||||||
Consolidated Assets
|
$ | 507,153 | $ | 489,185 |
($ In Thousands)
|
||||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Average Daily Amounts Outstanding
|
$ | 21,995 | $ | 14,902 | $ | 19,629 | $ | 29,297 | ||||||||
Weighted Average Interest Rates
|
1.32% | 1.53% | 1.50% | 1.59% |
(In Thousands)
|
||||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Treated
|
$ | 682 | $ | 737 | $ | 1,974 | $ | 2,168 | ||||||||
Untreated
|
672 | 618 | 1,794 | 1,753 | ||||||||||||
Total Costs
|
$ | 1,354 | $ | 1,355 | $ | 3,768 | $ | 3,921 |
(In Thousands)
|
||||||||||||||||
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Service Cost
|
$ | 394 | $ | 349 | $ | 326 | $ | 256 | ||||||||
Interest Cost
|
566 | 557 | 401 | 334 | ||||||||||||
Expected Return on Assets
|
(571 | ) | (505 | ) | (256 | ) | (190 | ) | ||||||||
Amortization of Unrecognized Losses
|
141 | 127 | 219 | 133 | ||||||||||||
Amortization of Unrecognized Prior Service Cost
|
2 | 2 | - | - | ||||||||||||
Amortization of Transition Obligation
|
- | - | 33 | 34 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 532 | $ | 530 | $ | 723 | $ | 567 |
Nine Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Service Cost
|
$ | 1,181 | $ | 1,047 | $ | 979 | $ | 769 | ||||||||
Interest Cost
|
1,696 | 1,671 | 1,203 | 1,001 | ||||||||||||
Expected Return on Assets
|
(1,712 | ) | (1,515 | ) | (769 | ) | (569 | ) | ||||||||
Amortization of Unrecognized Losses
|
424 | 380 | 658 | 399 | ||||||||||||
Amortization of Unrecognized Prior Service Cost
|
7 | 7 | - | - | ||||||||||||
Amortization of Transition Obligation
|
- | - | 101 | 101 | ||||||||||||
Net Periodic Benefit Cost
|
$ | 1,596 | $ | 1,590 | $ | 2,172 | $ | 1,701 |
|
-
|
statements as to expected financial condition, performance, prospects and earnings of the Company;
|
|
-
|
statements regarding strategic plans for growth;
|
|
-
|
statements regarding the amount and timing of rate increases and other regulatory matters, including the recovery of certain costs recorded as regulatory assets;
|
|
-
|
statements as to the Company’s expected liquidity needs during the upcoming fiscal year and beyond and statements as to the sources and availability of funds to meet its liquidity needs;
|
|
-
|
statements as to expected rates, consumption volumes, service fees, revenues, margins, expenses and operating results;
|
|
-
|
statements as to the Company’s compliance with environmental laws and regulations and estimations of the materiality of any related costs;
|
|
-
|
statements as to the safety and reliability of the Company’s equipment, facilities and operations;
|
|
-
|
statements as to financial projections;
|
|
-
|
statements as to the ability of the Company to pay dividends;
|
|
-
|
statements as to the Company’s plans to renew municipal franchises and consents in the territories it serves;
|
|
-
|
expectations as to the amount of cash contributions to fund the Company’s retirement benefit plans, including statements as to anticipated discount rates and rates of return on plan assets;
|
|
-
|
statements as to trends; and
|
|
-
|
statements regarding the availability and quality of our water supply.
|
|
-
|
the effects of general economic conditions;
|
|
-
|
increases in competition in the markets served by the Company;
|
|
-
|
the ability of the Company to control operating expenses and to achieve efficiencies in its operations;
|
|
-
|
the availability of adequate supplies of water;
|
|
-
|
actions taken by government regulators, including decisions on rate increase requests;
|
|
-
|
ability to meet current or additional water quality standards;
|
|
-
|
weather variations and other natural phenomena;
|
|
-
|
the existence of financially attractive acquisition candidates and the risks involved in pursuing those acquisitions;
|
|
-
|
acts of war or terrorism;
|
|
-
|
significant changes in the pace of housing development in Delaware;
|
|
-
|
the availability and cost of capital resources;
|
|
-
|
the ability to translate Preliminary Survey & Investigation (PS&I) charges into viable projects; and
|
|
-
|
other factors discussed elsewhere in this quarterly report.
|
•
|
Serve as a trusted and continually-improving provider of safe, reliable and cost-effective water, wastewater and related services;
|
•
|
Provide a comprehensive suite of water and wastewater solutions in the continually-developing Delaware market that results in profitable growth;
|
•
|
Pursue profitable growth in our core states of New Jersey and Delaware, as well as additional states; and
|
•
|
Invest in products, services and other viable opportunities that complement our core competencies.
|
(In Thousands)
|
||||||||||||||||||||||||
Three Months Ended September 30,
|
||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Regulated
|
Non-
Regulated
|
Total
|
Regulated
|
Non-
Regulated
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 26,119 | $ | 2,552 | $ | 28,671 | $ | 27,062 | $ | 2,523 | $ | 29,585 | ||||||||||||
Operations and maintenance expenses
|
12,492 | 2,175 | 14,667 | 12,079 | 1,957 | 14,036 | ||||||||||||||||||
Depreciation expense
|
2,386 | 35 | 2,421 | 2,351 | 36 | 2,387 | ||||||||||||||||||
Other taxes
|
3,000 | 67 | 3,067 | 3,072 | 69 | 3,141 | ||||||||||||||||||
Operating income
|
8,241 | 275 | 8,516 | 9,560 | 461 | 10,021 | ||||||||||||||||||
Other income, net
|
336 | 638 | 974 | 113 | 73 | 186 | ||||||||||||||||||
Interest expense
|
1,680 | 23 | 1,703 | 1,791 | 28 | 1,819 | ||||||||||||||||||
Income taxes
|
2,267 | 377 | 2,644 | 2,449 | 203 | 2,652 | ||||||||||||||||||
Net income
|
$ | 4,630 | $ | 513 | $ | 5,143 | $ | 5,433 | $ | 303 | $ | 5,736 |
|
·
|
Middlesex System revenues decreased $0.9 million, primarily from decreased contract sales to municipalities ($0.5 million) and decreased sales to general meter service customers ($0.4 million), both resulting from cooler temperatures and higher precipitation in the third quarter of 2011 as compared to 2010; and
|
|
·
|
Tidewater System revenues remained consistent, primarily due to decreased consumption sales from similar weather patterns experienced in the Middlesex System in the third quarter of 2011 as compared to 2010, offset by fixed service charges for new customers.
|
|
·
|
Employee healthcare costs and postretirement benefit plan expenses increased $0.5 million;
|
|
·
|
Increased net costs of $0.1 million from the implementation of a company wide information technology platform;
|
|
·
|
Costs associated with main breaks decreased $0.1 million, as we experienced less severe, and a lower number of, water main breaks in 2011 as compared to 2010; and
|
|
·
|
All other operation and maintenance expense categories increased $0.1 million.
|
|
·
|
A gain of $0.6 million as a result of transferring USA’s existing LineCare contracts to HomeServe; and
|
|
·
|
Increased Allowance for Funds Used During Construction from higher capitalized interest resulting from higher average construction work in progress balances in the third quarter of 2011 as compared to the third quarter of 2010.
|
(In Thousands)
|
||||||||||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Regulated
|
Non-
Regulated
|
Total
|
Regulated
|
Non-
Regulated
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 70,708 | $ | 8,061 | $ | 78,769 | $ | 70,083 | $ | 7,685 | $ | 77,768 | ||||||||||||
Operations and maintenance expenses
|
36,139 | 6,621 | 42,760 | 35,263 | 5,942 | 41,205 | ||||||||||||||||||
Depreciation expense
|
7,141 | 109 | 7,250 | 6,713 | 114 | 6,827 | ||||||||||||||||||
Other taxes
|
8,535 | 202 | 8,737 | 8,326 | 206 | 8,532 | ||||||||||||||||||
Operating income
|
18,893 | 1,129 | 20,022 | 19,781 | 1,423 | 21,204 | ||||||||||||||||||
Other income, net
|
811 | 753 | 1,564 | 914 | 222 | 1,136 | ||||||||||||||||||
Interest expense
|
4,557 | 74 | 4,631 | 5,018 | 107 | 5,125 | ||||||||||||||||||
Income taxes
|
4,772 | 785 | 5,557 | 4,878 | 617 | 5,495 | ||||||||||||||||||
Net income
|
$ | 10,375 | $ | 1,023 | $ | 11,398 | $ | 10,799 | $ | 921 | $ | 11,720 |
|
·
|
Middlesex System revenues increased $0.7 million, primarily due to the 13.5% rate increase that went into effect in late March 2010 offset by decreased sales to general meter service and contract customers resulting from cooler temperatures and higher precipitation during the summer of 2011 as compared to 2010;
|
|
·
|
Tidewater System revenues remained consistent, primarily due to decreased consumption sales from similar weather patterns experienced in the Middlesex System in 2011 as compared to 2010 and lower connection fees offset by increased fixed service charges for new customers; and
|
|
·
|
USA-PA’s revenues increased $0.3 million, primarily from scheduled increases in the fixed fees paid under contract with the City of Perth Amboy.
|
|
·
|
Labor costs increased $0.5 million primarily due to higher average labor rates from annual wage increases and lower capitalized labor;
|
|
·
|
Employee healthcare costs and postretirement benefit plan expenses increased $0.9 million;
|
|
·
|
Increased net costs of $0.3 million from the implementation of a company wide information technology platform;
|
|
·
|
Increased subcontractor charges of $0.3 million at our USA-PA subsidiary;
|
|
·
|
Increased transportation charges of $0.1 million primarily resulting from higher average gasoline prices;
|
|
·
|
Variable production costs decreased $0.4 million primarily due to lower purchase power costs resulting from decreased consumption;
|
|
·
|
Costs associated with water main breaks decreased $0.3 million, as we experienced less severe and a lower number of main breaks in 2011 as compared to 2010; and
|
|
·
|
All other operating and maintenance expense categories increased $0.2 million.
|
|
·
|
Lower average short term debt outstanding in 2011 as compared to 2010; and
|
|
·
|
Lower interest rates on long term debt outstanding in 2011 as compared to 2010.
|
|
·
|
A gain of $0.6 million as a result of transferring USA’s LineCare contracts to HomeServe; and
|
|
·
|
Decreased Allowance for Funds Used During Construction ($0.2 million) from lower capitalized interest resulting from lower average construction work in progress balances in 2011 as compared to 2010.
|
|
·
|
Internally generated funds
|
|
·
|
Proceeds from the sale of common stock through the DRP
|
|
·
|
Funds available and held in trust under existing New Jersey SRF loans (currently, $2.9 million) and Delaware SRF loans (currently, $2.7 million). The SRF programs provide low cost financing for projects that meet certain water quality and system improvement benchmarks.
|
|
·
|
Short-term borrowings, if necessary, through $60.0 million of available lines of credit with several financial institutions. As of September 30, 2011, the outstanding borrowings under these credit lines were $24.3 million.
|
Item 1.
|
Legal Proceedings
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Removed and Reserved
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
10.4
|
Copy of Amended Supply Agreement, dated as of July 27, 2011, between the Company and the Old Bridge Municipal Utilities Authority.
|
10.40
|
Amended Promissory Note for a committed line of credit between registrant’s wholly-owned subsidiary, Tidewater Utilities, Inc. and CoBank, ACB.
|
31.1
|
Section 302 Certification by Dennis W. Doll pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934.
|
31.2
|
Section 302 Certification by A. Bruce O’Connor pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934.
|
32.1
|
Section 906 Certification by Dennis W. Doll pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Section 906 Certification by A. Bruce O’Connor pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
XBRL Instance Document*
|
101.SCH
|
XBRL Schema Document*
|
101.CAL
|
XBRL Calculation Linkbase Document*
|
101.LAB
|
XBRL Labels Linkbase Document*
|
101.PRE
|
XBRL Presentation Linkbase Document*
|
101.DEF
|
XBRL Definition Linkbase Document*
|
MIDDLESEX WATER COMPANY
|
||
By:
|
/s/A. Bruce O’Connor
|
|
A. Bruce O’Connor
|
||
Vice President and
|
||
Chief Financial Officer
|
||
(Principal Accounting Officer)
|
|
(i)
|
Two (2.0) million gallons of water a day, or
|
|
(ii)
|
Such greater amount as may be elected under Article 7 (b) of this Agreement.
|
|
(i)
|
A fraction (the numerator of which is the actual daily usage; and the denominator of which is the applicable Daily Minimum or Revised Daily Minimum then in effect multiplied by 1.5) multiplied by the Contract Rate.
|
|
(i)
|
A fraction (the numerator of which is the quantity of water supplied in the maximum peak hour multiplied by 24; and the denominator of which is the applicable Daily Minimum
|
|
or Revised Daily Minimum then in effect multiplied by 2.0) multiplied by the Contract Rate.
|
MIDDLESEX WATER COMPANY
|
||
ATTEST:
|
||
By:
|
/s/Dennis W. Doll
|
|
/s/ Kenneth J. Quinn
|
Dennis W Doll, President
|
|
Kenneth J. Quinn
|
||
Secretary
|
||
OLD BRIDGE MUNICIPAL
|
||
UTILITIES AUTHORITY
|
||
ATTEST:
|
||
By:
|
/s/Thomas Galante
|
|
/s/Kiran Desai
|
Thomas Galante, Chairman
|
|
Kiran Desai, Secretary
|
MIDDLESEX WATER COMPANY
|
Nineteenth Revised Sheet No. 40
|
Canceling
|
|
B.P.U. No. 1 - WATER
|
Eighteenth Revised Sheet No. 40____
|
Date of Issue:
|
August 17, 2009
|
Effective for service
|
|
Rendered on and after:
|
|
Issued by:
|
Dennis W. Doll, President
|
|
1500 Ronson Road
|
March 17, 2010
|
|
Iselin, New Jersey 08830-3020
|
MIDDLESEX WATER COMPANY
|
Ninth Revised Sheet No. 42
|
Canceling
|
|
B.P.U. No. 1 - WATER
|
Eighth Revised Sheet No. 42_____
|
Date of Issue:
|
August 17, 2009
|
Effective for service
|
Rendered on and after:
|
||
Issued by:
|
Dennis W. Doll, President
|
|
1500 Ronson Road
|
March 17, 2010
|
|
Iselin, New Jersey 08830-3020
|
CoBANK, ACB
|
TIDEWATER UTILITIES, INC.
|
|||
By:
|
/s/Shannon Davoren
|
By:
|
/s/A. Bruce O’Connor
|
|
Title:
|
Assistant Corporate Secretary
|
Title:
|
Treasurer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Middlesex Water Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have;
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Middlesex Water Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have;
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Dennis W. Doll
|
Dennis W. Doll
|
|
Chief Executive Officer
|
/s/ A. Bruce O’Connor
|
|
A. Bruce O’Connor
|
|
Chief Financial Officer
|
Document and Entity Information | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Oct. 31, 2011 | |
Document And Entity Information | ||
Entity Registrant Name | MIDDLESEX WATER CO | |
Entity Central Index Key | 0000066004 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2011 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,634,889 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2011 |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Business Segment Data | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Data | Note 5 – Business Segment Data
The Company has identified two reportable segments. One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey, Delaware and Pennsylvania. This segment also includes regulated wastewater systems in New Jersey and Delaware. The Company is subject to regulations as to its rates, services and other matters by New Jersey, Delaware and Pennsylvania with respect to utility services within these states. The other segment is primarily comprised of non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. Inter-segment transactions relating to operational costs are treated as pass-through expenses. Finance charges on inter-segment loan activities are based on interest rates that are below what would normally be charged by a third party lender.
|
Basis of Presentation and Recent Matters | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Basis Of Presentation And Recent Matters | |
Basis of Presentation and Recent Matters |
Note 1 – Basis of Presentation and Recent Matters
Middlesex Water Company (Middlesex or the Company) is the parent company and sole shareholder of Tidewater Utilities, Inc. (Tidewater), Tidewater Environmental Services, Inc. (TESI), Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), Utility Service Affiliates (Perth Amboy) Inc. (USA-PA), and Twin Lakes Utilities, Inc. (Twin Lakes). Southern Shores Water Company, LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh) are wholly-owned subsidiaries of Tidewater. The financial statements for Middlesex and its wholly-owned subsidiaries (the Company) are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated.
The consolidated notes within the 2010 Annual Report on Form 10-K (the 2010 Form 10-K) are applicable to these financial statements and, in the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (including normal recurring accruals) to present fairly the financial position as of September 30, 2011, the results of operations for the three and nine month periods ended September 30, 2011 and 2010 and cash flows for the nine month periods ended September 30, 2011 and 2010. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2010, has been derived from the Company’s audited financial statements for the year ended December 31, 2010 included in the 2010 Form 10-K.
Certain reclassifications have been made to the prior year financial statements to conform with the current period presentation.
TESI Purchases Wastewater Systems
During the second quarter of 2011, TESI acquired two Sussex County, Delaware wastewater systems for approximately $0.1 million. These wastewater systems currently serve about 100 customers in total and ultimately expect to serve 360 at build-out. The wastewater plants are among several other nearby TESI-owned facilities providing regulated wastewater services to residential developments within the region. Tidewater provides water service to several communities in the area, including one of the developments where these wastewater systems are located.
USA Enters into Long-Term Marketing Agreement
In August 2011, USA entered into a 10-year marketing agreement (the Agreement) with HomeServe USA (HomeServe), a leading provider of home maintenance service programs to service, develop and grow USA’s LineCare customer base. As part of the Agreement, USA recognized a gain of $0.6 million on the transfer of its existing contracts to HomeServe. Over the next 10 years, USA will receive a service fee for the billing, cash collection and other administrative matters associated with HomeServe’s service contracts.
Recent Accounting Guidance
In the third quarter of 2011, there was no new adopted or proposed accounting guidance that did or could have a material impact on the Company’s financial statements.
|
Commitments and Contingent Liabilities | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingent Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities |
Note 7 – Commitments and Contingent Liabilities
Contract Operations - USA-PA operates the City of Perth Amboy, NJ’s water and wastewater systems under a 20-year agreement, which expires in 2018. In connection with the agreement with Perth Amboy, USA-PA entered into a 20-year subcontract with a wastewater operating company for the operation and maintenance of the Perth Amboy wastewater collection system. The subcontract provides for the sharing of certain fixed and variable fees and operating expenses.
Water Supply
Middlesex has an agreement with the NJWSA for the purchase of untreated water through November 30, 2023, which provides for an average purchase of 27 million gallons a day (mgd). Pricing is set annually by the NJWSA through a public rate making process. The agreement has provisions for additional pricing in the event Middlesex overdrafts or exceeds certain monthly and annual thresholds.
Middlesex also has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2016, provides for the minimum purchase of 3 mgd of treated water with provisions for additional purchases.
Purchased water costs are shown below:
Construction
The Company expects to spend approximately $21.9 million on its construction program in 2011. The actual amount and timing of capital expenditures is dependent on customer growth, residential new home construction and sales and project scheduling. There is no assurance that projected customer growth and residential new home construction and sales will occur.
Litigation
The Company is a defendant in lawsuits in the normal course of business. We believe the resolution of pending claims and legal proceedings will not have a material adverse effect on the Company’s consolidated financial statements.
Change in Control Agreements
The Company has Change in Control Agreements with certain of its officers that provide compensation and benefits in the event of termination of employment in connection with a change in control of the Company.
|
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EmployeeBenefitPlansAbstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Note 8 – Employee Benefit Plans
Pension Benefits
The Company’s Pension Plan covers substantially all employees hired prior to March 31, 2007. Employees hired after March 31, 2007 are not eligible to participate in this plan, but do participate in a defined contribution plan that provides an annual contribution into a self-directed retirement account at the discretion of the Company, based upon a percentage of the participants’ compensation. In order to be eligible for contribution, the participating employee must be employed by the Company on December 31st of the year to which the award relates. For the three months ended September 30, 2011 and 2010, the Company made Pension Plan cash contributions of $1.8 million and $0.8 million, respectively. For the nine months ended September 30, 2011 and 2010, the Company made Pension Plan cash contributions of $2.5 million and $1.4 million, respectively. The Company expects to make additional Pension Plan cash contributions of approximately $0.2 million over the remainder of the current year. The Company also maintains an unfunded supplemental retirement benefit plan for certain active and retired Company Officers and currently pays $0.3 million in annual benefits to the retired participants.
Other Benefits
The Company’s Other Benefits Plan covers substantially all of its retired employees. Employees hired after March 31, 2007 are not eligible to participate in this plan. Coverage includes healthcare and life insurance. For the three months ended September 30, 2011 and 2010, the Company made Other Benefits Plan cash contributions of $1.5 and $0.5 million, respectively. For the nine months ended September 30, 2011 and 2010, the Company made Other Benefits Plan cash contributions of $2.0 million and $1.4 million, respectively. The Company expects to make additional Other Benefits Plan cash contributions of approximately $0.8 million over the remainder of the current year.
The following table sets forth information relating to the Company’s periodic costs for its employee retirement benefit plans:
|
2MX%"3Y.%$7HBF;9[A\7PO3#<_M$Y((844['\OUH40DDX_,3EI1<#SQ!13#
M(V9V\H@87_@.E(B%BL9;67TN$V8(&A9[2368]_VU&86WK?:B9YG`JUG:JT"X13SC,^$D^W
M'&+&Y\FD%J&FEF&)X[IB0LG^!H447@'*89?;>GK-,%Y(7!/;Q
MG.4U59IYT76]J
M=2VV6'Z)7%-;F&LI^^UB+UJB)F&T`'O2#E[WK\:#X7@R'+!7DZO1Q:`[A8/)
M%/Z['(ZG$^WJ7+L8]Z\NA]H_O[HH,"TXT[]V$A^_BDU",^1"TWK=47?<'VJ3
M3\,AQ+?KJ+)KVR2Z]B;"];N33]KYZ.K/DH;)KWN2F#MOC3GEOPQQ2U2_2?2'
MFT5_?3'MCN#=J_X7K3L>:*.K\#2[?BQ(JAG7K$2>;R8@U(L:^S"M`J&G$,[%W5FOJKRAL`CE_5J->
MP`EV%^+T;>1#=UOTLV
2EV930*<'\EA7K';JCK%V
M-^S]R-D;X7MZ+I3*/5LC;T7#M1-+V/2`'V1S`G<+E5=K(;8HE2[M^]/N[@Y=
M\4+YM44^?3S,/_5@$%PP.4>L.0FFY#U2:S>?TVNH.9Z*%59",\E:TX%&7$.\
M[?-W"B&V(0D&Z
>6XI2'OS34)=X
?3A2QY$43C]MG-^A'O,5%(
"TR,#$Q,#DS,"YX
Short-term Borrowings | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Borrowings | Note 6 – Short-term Borrowings
As of September 30, 2011, the Company has established lines of credit aggregating $60.0 million. At September 30, 2011, the outstanding borrowings under these credit lines were $24.3 million at a weighted average interest rate of 1.27%.
The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows:
The maturity dates for the $24.3 million outstanding as of September 30, 2011 are all in October 2011 and are extendable at the discretion of the Company.
Interest rates for short-term borrowings under the lines of credit are below the prime rate with no requirement for compensating balances.
|
Rate Matters | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Rate Matters | |
Rate Matters |
Note 2 – Rate Matters
On August 28, 2011, Middlesex implemented a New Jersey Board of Public Utilities (NJBPU) approved Purchased Water Adjustment Clause (PWAC). In January 2011, Middlesex had filed a PWAC application with the NJBPU seeking to recover increased costs of $0.4 million to purchase untreated water from the New Jersey Water Supply Authority and treated water from a non-affiliated regulated water utility.
A Distribution System Improvement Charge (DSIC) is a Delaware Public Service Commission (DEPSC) approved rate-mechanism that allows water utilities to recover investment in non-revenue producing capital improvements to the water system between base rate proceedings. Effective July 1, 2011, Tidewater’s DEPSC approved DSIC was increased from 1.34% to 1.98%.
Effective June 1, 2011, the DEPSC approved a multi-year agreement for a phased-in base rate increase for Southern Shores. This increase was necessitated by capital investment in the upgrade and renovation of Southern Shores’ primary water treatment facilities, as well as by increased operating costs. Under the terms of the agreement, which expires on June 30, 2020, Southern Shores will also increase rates on January 1, 2012, and each successive January 1st through 2015, to generate approximately $0.1 million of additional revenue on an annual basis with each increase. Thereafter, rate increases, if any, cannot exceed the lesser of the regional Consumer Price Index or 3%.
The Pennsylvania Public Utility Commission (PAPUC) held public hearings in October 2011 in connection with the Twin Lakes application seeking permission to increase its base rates by approximately $0.2 million per year. We cannot predict whether the PAPUC will ultimately approve, deny, or reduce the amount of the request. A decision by the PAPUC is not expected until early 2012.
In July 2011, TESI filed an application with the DEPSC seeking permission to increase its base rates by approximately $0.8 million per year. The request was made necessary by capital investments TESI has made or has committed to make as well as increased operations and maintenance costs. We cannot predict whether the DEPSC will ultimately approve, deny, or reduce the amount of the request. A decision by the DEPSC is not expected until mid 2012. On September 28, 2011, TESI implemented a 7.6% interim rate increase subject to refund as allowed under DEPSC regulations.
In September 2011, Tidewater filed an application with the DEPSC seeking permission to increase its base rates by approximately $6.9 million per year. The request was made necessary by capital investments Tidewater has made or has committed to make as well as increased operations and maintenance costs. We cannot predict whether the DEPSC will ultimately approve, deny, or reduce the amount of the request. A decision by the DEPSC is not expected until mid 2012. Tidewater received DEPSC approval to implement a 10.49% interim rate increase, subject to refund, on November 15, 2011.
|
Capitalization | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization | Note 3 – Capitalization
Common Stock
During the nine months ended September 30, 2011, there were 63,816 common shares (approximately $1.2 million) issued under the Company’s Amended and Restated Dividend Reinvestment and Common Stock Purchase Plan (DRP). The Company maintains a stock plan for its non-management directors (Outside Director Stock Compensation Plan). In May 2011, the Company granted and issued 3,833 shares of common stock (approximately $0.1 million) to the non-management directors under the Outside Director Stock Compensation Plan.
Preferred Stock
In February 2011, the Company repurchased 93 shares of its $7.00 Series, nonredeemable cumulative preferred stock at par value for approximately $9 thousand.
Long-term Debt
In March 2011, Tidewater closed on a $2.8 million loan with the Delaware State Revolving Fund (SRF) program which allows, but does not obligate, Tidewater to draw against a General Obligation Note for a specific project. The interest rate on any draw will be set at 3.75% with a final maturity of July 1, 2031 on the amount actually borrowed. As of September 30, 2011, Tidewater has borrowed $1.3 million under this loan.
In March 2011, Southern Shores closed on a $1.6 million loan with the Delaware SRF program, which allows, but does not obligate, Southern Shores to draw against a General Obligation Note for a specific project. The interest rate on any draw will be set at 3.75% with a final maturity of November 30, 2030 on the amount actually borrowed. As of September 30, 2011, Southern Shores has borrowed $1.4 million under this loan.
Fair Value of Financial Instruments
The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments for which it is practicable to estimate that value. The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade receivables, accounts payable and notes payable approximate their respective fair values due to the short-term maturities of these instruments. The fair value of the Company’s long-term debt relating to First Mortgage and SRF Bonds is based on quoted market prices for similar issues. The carrying amount and fair market value of the Company’s bonds were as follows:
For other long-term debt for which there was no quoted market price, it was not practicable to estimate their fair value. The carrying amount of these instruments was $49.3 million at September 30, 2011 and $48.3 million at December 31, 2010. Customer advances for construction have a carrying amount of $21.6 million at September 30, 2011 and $21.3 million at December 31, 2010. Their relative fair values cannot be accurately estimated since future refund payments depend on several variables, including new customer connections, customer consumption levels and future rate increases. |
Earnings Per Share | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Note 4 – Earnings Per Share
Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) In Thousands | Sep. 30, 2011 | Sep. 30, 2010 |
---|---|---|
Statement of Cash Flows [Abstract] | ||
Allowance for Funds Used During Construction | $ 221 | $ 297 |
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Parenthetical) (USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Common Stock, Par Value | $ 0.00 | $ 0.00 |
Common Stock, Shares Authorized | 40,000,000 | 40,000,000 |
Common Stock, Shares Outstanding | 15,633,000 | 15,566,000 |
Cumulative Preferred Stock | ||
Preferred Stock, Par Value | $ 0.00 | $ 0.00 |
Preferred Stock, Shares Authorized | 134,000 | 134,000 |
Preferred Stock, Shares Outstanding | 32,000 | 32,000 |
Convertible Preferred Stock $7.00 Series | ||
Preferred Stock, Shares Outstanding | 14,000 | 14,000 |
Convertible Preferred Stock $8.00 Series | ||
Preferred Stock, Shares Outstanding | 7,000 | 7,000 |
Nonredeemable Preferred Stock $7.00 Series | ||
Preferred Stock, Shares Outstanding | 1,000 | 1,000 |
Nonredeemable Preferred Stock $4.75 Series | ||
Preferred Stock, Shares Outstanding | 10,000 | 10,000 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) In Thousands, except Share data | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Income Statement [Abstract] | ||||
Operating Revenues | $ 28,671 | $ 29,585 | $ 78,769 | $ 77,768 |
Operating Expenses: | ||||
Operations and Maintenance | 14,667 | 14,036 | 42,760 | 41,205 |
Depreciation | 2,421 | 2,387 | 7,250 | 6,827 |
Other Taxes | 3,067 | 3,141 | 8,737 | 8,532 |
Total Operating Expenses | 20,155 | 19,564 | 58,747 | 56,564 |
Operating Income | 8,516 | 10,021 | 20,022 | 21,204 |
Other Income (Expense): | ||||
Allowance for Funds Used During Construction | 235 | 143 | 626 | 785 |
Other Income | 759 | 172 | 1,118 | 532 |
Other Expense | (20) | (129) | (180) | (181) |
Total Other Income, net | 974 | 186 | 1,564 | 1,136 |
Interest Charges | 1,703 | 1,819 | 4,631 | 5,125 |
Income before Income Taxes | 7,787 | 8,388 | 16,955 | 17,215 |
Income Taxes | 2,644 | 2,652 | 5,557 | 5,495 |
Net Income | 5,143 | 5,736 | 11,398 | 11,720 |
Preferred Stock Dividend Requirements | 52 | 52 | 155 | 156 |
Earnings Applicable to Common Stock | $ 5,091 | $ 5,684 | $ 11,243 | $ 11,564 |
Earnings per share of Common Stock: | ||||
Basic | $ 0.33 | $ 0.37 | $ 0.72 | $ 0.81 |
Diluted | $ 0.32 | $ 0.36 | $ 0.72 | $ 0.80 |
Average Number of Common Shares Outstanding: | ||||
Basic | 15,622,000 | 15,518,000 | 15,599,000 | 14,350,000 |
Diluted | 15,885,000 | 15,781,000 | 15,862,000 | 14,613,000 |
Cash Dividends Paid per Common Share | $ 0.1825 | $ 0.1800 | $ 0.5475 | $ 0.5400 |
'0M=&]P)SYS=#PO
M9F]N=#X@=&AR;W5G:"`R,#$U+"!T;R!G96YE