Business Segment Data

12 Months Ended

Dec. 31, 2012

Business Segment Data

Business Segment Data

Note 8 – 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 the states of New Jersey, Delaware and Pennsylvania with respect to utility service 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.

	(Thousands of Dollars)
	Years Ended December 31,
Operations by Segments:	2012			2011			2010
Revenues:
Regulated	$	98,021		$	91,729		$	92,378
Non – Regulated		12,851			10,805			10,937
Inter-segment Elimination		(493	)		(465	)		(580	)
Consolidated Revenues	$	110,379		$	102,069		$	102,735
Operating Income:
Regulated	$	25,944		$	22,760		$	24,815
Non – Regulated		1,703			1,441			1,782
Consolidated Operating Income	$	27,647		$	24,201		$	26,597
Depreciation:
Regulated	$	10,241		$	9,601		$	9,093
Non – Regulated		168			145			151
Consolidated Depreciation	$	10,409		$	9,746		$	9,244
Other Income, Net:
Regulated	$	1,489		$	1,982		$	1,265
Non – Regulated		94			896			313
Inter-segment Elimination		(726	)		(729	)		(134	)
Consolidated Other Income, Net	$	857		$	2,149		$	1,444
Interest Expense:
Regulated	$	6,725		$	6,376		$	6,925
Non – Regulated		96			97			134
Inter-segment Elimination		(96	)		(97	)		(134	)
Consolidated Interest Charges	$	6,725		$	6,376		$	6,925
Income Taxes:
Regulated	$	6,579		$	5,548		$	6,004
Non – Regulated		804			979			782
Consolidated Interest Charges	$	7,383		$	6,527		$	6,786
Net Income:
Regulated	$	13,500		$	12,088		$	13,152
Non – Regulated		896			1,359			1,178
Consolidated Net Income	$	14,396		$	13,447		$	14,330
Capital Expenditures:
Regulated	$	21,149		$	23,125		$	29,344
Non – Regulated		429			437			260
Total Capital Expenditures	$	21,578		$	23,562		$	29,604

	As of December 31, 2012			As of December 31, 2011
Assets:
Regulated	$	560,165		$	539,947
Non – Regulated		11,674			10,325
Inter-segment Elimination		(10,113	)		(12,736	)
Consolidated Assets	$	561,726		$	537,536