(Mark
One)
|
|
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.)
|
Large
accelerated filer ¨
|
Accelerated
filer þ
|
Non-accelerated
filer ¨
|
PAGE
|
||
1
|
||
2
|
||
3
|
||
4
|
||
5
|
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11
|
||
17
|
||
17
|
||
18
|
||
18
|
||
18
|
||
18
|
||
18
|
||
19
|
||
19
|
||
19
|
MIDDLESEX
WATER COMPANY
|
||||||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(Unaudited)
(In thousands except per share amounts) |
||||||||||||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Operating
Revenues
|
$ |
21,745
|
$ |
21,037
|
$ |
40,732
|
$ |
39,267
|
||||||||
Operating
Expenses:
|
||||||||||||||||
Operations
|
10,143
|
10,012
|
20,335
|
19,658
|
||||||||||||
Maintenance
|
1,037
|
794
|
2,015
|
1,533
|
||||||||||||
Depreciation
|
1,875
|
1,713
|
3,720
|
3,381
|
||||||||||||
Other
Taxes
|
2,411
|
2,369
|
4,662
|
4,573
|
||||||||||||
Total
Operating Expenses
|
15,466
|
14,888
|
30,732
|
29,145
|
||||||||||||
Operating
Income
|
6,279
|
6,149
|
10,000
|
10,122
|
||||||||||||
Other
Income:
|
||||||||||||||||
Allowance
for Funds Used During Construction
|
140
|
115
|
252
|
228
|
||||||||||||
Other
Income
|
282
|
41
|
508
|
99
|
||||||||||||
Other
Expense
|
(8 | ) | (13 | ) | (12 | ) | (14 | ) | ||||||||
Total
Other Income, net
|
414
|
143
|
748
|
313
|
||||||||||||
Interest
Charges
|
1,698
|
1,808
|
3,081
|
3,323
|
||||||||||||
Income
before Income Taxes
|
4,995
|
4,484
|
7,667
|
7,112
|
||||||||||||
Income
Taxes
|
1,682
|
1,517
|
2,583
|
2,332
|
||||||||||||
Net
Income
|
3,313
|
2,967
|
5,084
|
4,780
|
||||||||||||
Preferred
Stock Dividend Requirements
|
62
|
62
|
124
|
124
|
||||||||||||
Earnings
Applicable to Common Stock
|
$ |
3,251
|
$ |
2,905
|
$ |
4,960
|
$ |
4,656
|
||||||||
Earnings
per share of Common Stock:
|
||||||||||||||||
Basic
|
$ |
0.25
|
$ |
0.25
|
$ |
0.38
|
$ |
0.40
|
||||||||
Diluted
|
$ |
0.24
|
$ |
0.25
|
$ |
0.37
|
$ |
0.40
|
||||||||
Average
Number of
|
||||||||||||||||
Common
Shares Outstanding :
|
||||||||||||||||
Basic
|
13,191
|
11,611
|
13,184
|
11,602
|
||||||||||||
Diluted
|
13,522
|
11,942
|
13,515
|
11,933
|
||||||||||||
Cash
Dividends Paid per Common Share
|
$ |
0.1725
|
$ |
0.1700
|
$ |
0.3450
|
$ |
0.3400
|
||||||||
See
Notes to Condensed Consolidated Financial Statements.
|
||||||||||||||||
MIDDLESEX
WATER COMPANY
|
|||||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|||||||||||
(Unaudited)
|
|||||||||||
(In
thousands)
|
|||||||||||
June
30,
|
December
31,
|
||||||||||
ASSETS
|
|
2007
|
2006
|
||||||||
UTILITY
PLANT:
|
Water
Production
|
$ |
97,588
|
$ |
95,324
|
||||||
|
Transmission
and Distribution
|
250,753
|
243,959
|
||||||||
|
General
|
24,627
|
25,153
|
||||||||
|
Construction
Work in Progress
|
8,216
|
6,131
|
||||||||
|
TOTAL
|
381,184
|
370,567
|
||||||||
|
Less
Accumulated Depreciation
|
62,199
|
59,694
|
||||||||
|
UTILITY
PLANT - NET
|
318,985
|
310,873
|
||||||||
|
|||||||||||
CURRENT
ASSETS:
|
Cash
and Cash Equivalents
|
2,519
|
5,826
|
||||||||
|
Accounts
Receivable, net
|
10,470
|
8,538
|
||||||||
|
Unbilled
Revenues
|
5,559
|
4,013
|
||||||||
|
Materials
and Supplies (at average cost)
|
1,445
|
1,306
|
||||||||
|
Prepayments
|
1,636
|
1,229
|
||||||||
|
TOTAL
CURRENT ASSETS
|
21,629
|
20,912
|
||||||||
|
|||||||||||
DEFERRED
CHARGES
|
Unamortized
Debt Expense
|
2,954
|
3,014
|
||||||||
AND
OTHER ASSETS:
|
Preliminary
Survey and Investigation Charges
|
5,026
|
3,436
|
||||||||
|
Regulatory
Assets
|
20,387
|
18,342
|
||||||||
|
Restricted
Cash
|
6,227
|
6,850
|
||||||||
|
Non-utility
Assets - Net
|
6,656
|
6,255
|
||||||||
|
Other
|
410
|
585
|
||||||||
|
TOTAL
DEFERRED CHARGES AND OTHER ASSETS
|
41,660
|
38,482
|
||||||||
|
TOTAL
ASSETS
|
$ |
382,274
|
$ |
370,267
|
||||||
CAPITALIZATION
AND LIABILITIES
|
|||||||||||
CAPITALIZATION:
|
Common
Stock, No Par Value
|
$ |
104,953
|
$ |
104,248
|
||||||
|
Retained
Earnings
|
25,399
|
25,001
|
||||||||
|
Accumulated
Other Comprehensive Income, net of tax
|
80
|
94
|
||||||||
|
TOTAL
COMMON EQUITY
|
130,432
|
129,343
|
||||||||
|
Preferred
Stock
|
3,958
|
3,958
|
||||||||
|
Long-term
Debt
|
130,073
|
130,706
|
||||||||
|
TOTAL
CAPITALIZATION
|
264,463
|
264,007
|
||||||||
|
|||||||||||
CURRENT
|
Current
Portion of Long-term Debt
|
2,556
|
2,501
|
||||||||
LIABILITIES:
|
Notes
Payable
|
800
|
–
|
||||||||
|
Accounts
Payable
|
7,502
|
5,491
|
||||||||
|
Accrued
Taxes
|
7,988
|
6,684
|
||||||||
|
Accrued
Interest
|
1,912
|
1,880
|
||||||||
|
Unearned
Revenues and Advanced Service Fees
|
707
|
601
|
||||||||
|
Other
|
1,183
|
984
|
||||||||
|
TOTAL
CURRENT LIABILITIES
|
22,648
|
18,141
|
||||||||
|
|||||||||||
COMMITMENTS
AND CONTINGENT LIABILITIES (Note 7)
|
|||||||||||
|
|||||||||||
DEFERRED
CREDITS
|
Customer
Advances for Construction
|
20,501
|
19,246
|
||||||||
AND
OTHER LIABILITIES:
|
Accumulated
Deferred Investment Tax Credits
|
1,774
|
1,813
|
||||||||
|
Accumulated
Deferred Income Taxes
|
18,053
|
15,779
|
||||||||
|
Employee
Benefit Plans
|
17,688
|
16,388
|
||||||||
|
Regulatory
Liability - Cost of Utility Plant Removal
|
6,501
|
6,200
|
||||||||
|
Other
|
514
|
527
|
||||||||
|
TOTAL
DEFERRED CREDITS AND OTHER LIABILITIES
|
65,031
|
59,953
|
||||||||
|
|||||||||||
CONTRIBUTIONS
IN AID OF CONSTRUCTION
|
30,132
|
28,166
|
|||||||||
|
TOTAL
CAPITALIZATION AND LIABILITIES
|
$ |
382,274
|
$ |
370,267
|
||||||
See
Notes to Condensed Consolidated Financial Statements.
|
|||||||||||
MIDDLESEX
WATER COMPANY
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Six
Months Ended June 30,
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
Income
|
$ |
5,084
|
$ |
4,780
|
||||
Adjustments
to Reconcile Net Income to
|
||||||||
Net
Cash Provided by Operating Activities:
|
||||||||
Depreciation
and Amortization
|
4,029
|
3,762
|
||||||
Provision
for Deferred Income Taxes and ITC
|
235
|
(98 | ) | |||||
Equity
Portion of AFUDC
|
(121 | ) | (105 | ) | ||||
Cash Surrender Value of Life Insurance
|
(205 | ) | (104 | ) | ||||
Gain
on Sale of Real Estate
|
(212 | ) |
-
|
|||||
Changes
in Assets and Liabilities:
|
||||||||
Accounts
Receivable
|
(1,555 | ) |
431
|
|||||
Unbilled
Revenues
|
(1,546 | ) | (1,196 | ) | ||||
Materials
& Supplies
|
(139 | ) | (195 | ) | ||||
Prepayments
|
(407 | ) | (795 | ) | ||||
Other
Assets
|
(194 | ) | (295 | ) | ||||
Accounts
Payable
|
2,011
|
(1,056 | ) | |||||
Accrued
Taxes
|
1,312
|
1,361
|
||||||
Accrued
Interest
|
32
|
28
|
||||||
Employee
Benefit Plans
|
1,300
|
920
|
||||||
Unearned
Revenue & Advanced Service Fees
|
106
|
19
|
||||||
Other
Liabilities
|
186
|
(73 | ) | |||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
9,916
|
7,384
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Utility
Plant Expenditures, Including AFUDC of $131 in 2007 and $123 in
2006
|
(8,774 | ) | (12,019 | ) | ||||
Restricted
Cash
|
647
|
98
|
||||||
Proceeds
from Real Estate Dispositions
|
273
|
-
|
||||||
Preliminary
Survey & Investigation Charges
|
(1,590 | ) | (754 | ) | ||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(9,444 | ) | (12,675 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Redemption
of Long-term Debt
|
(711 | ) | (555 | ) | ||||
Proceeds
from Issuance of Long-term Debt
|
133
|
1
|
||||||
Net
Short-term Bank Borrowings
|
800
|
8,600
|
||||||
Deferred
Debt Issuance Expenses
|
(30 | ) |
-
|
|||||
Common
Stock Issuance Expense
|
(15 | ) |
-
|
|||||
Restricted
Cash
|
(23 | ) | (11 | ) | ||||
Proceeds
from Issuance of Common Stock
|
705
|
767
|
||||||
Payment
of Common Dividends
|
(4,547 | ) | (3,943 | ) | ||||
Payment
of Preferred Dividends
|
(124 | ) | (124 | ) | ||||
Construction
Advances and Contributions-Net
|
33
|
(126 | ) | |||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(3,779 | ) |
4,609
|
|||||
NET
CHANGES IN CASH AND CASH EQUIVALENTS
|
(3,307 | ) | (682 | ) | ||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
5,826
|
2,984
|
||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$ |
2,519
|
$ |
2,302
|
||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH ACTIVITY:
|
||||||||
Utility
Plant received as Construction Advances and Contributions
|
$ |
2,811
|
$ |
2,095
|
||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOWS INFORMATION:
|
||||||||
Cash
Paid During the Year for:
|
||||||||
Interest
|
$ |
3,098
|
$ |
3,319
|
||||
Interest
Capitalized
|
$ | (131 | ) | $ | (123 | ) | ||
Income
Taxes
|
$ |
1,518
|
$ |
2,040
|
||||
See
Notes to Condensed Consolidated Financial Statements.
|
MIDDLESEX
WATER COMPANY
|
|||||||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CAPITAL STOCK
|
|||||||||||||
AND
LONG-TERM DEBT
|
|||||||||||||
(Unaudited)
|
|||||||||||||
(In
thousands)
|
|||||||||||||
June
30,
|
December
31,
|
||||||||||||
2007
|
2006
|
||||||||||||
Common
Stock, No Par Value
|
|||||||||||||
Shares
Authorized
-
40,000
|
|||||||||||||
Shares
Outstanding - 2007 - 13,200
|
$ |
104,953
|
$ |
104,248
|
|||||||||
2006
- 13,168
|
|||||||||||||
Retained
Earnings
|
25,399
|
25,001
|
|||||||||||
Accumulated
Other Comprehensive Income, net of tax
|
80
|
94
|
|||||||||||
$ |
130,432
|
$ |
129,343
|
||||||||||
Cumulative
Preference Stock, No Par Value:
|
|||||||||||||
Shares
Authorized -
100
|
|||||||||||||
Shares
Outstanding - None
|
|||||||||||||
Cumulative
Preferred Stock, No Par Value
|
|||||||||||||
Shares
Authorized -
139
|
|||||||||||||
Shares
Outstanding -
37
|
|||||||||||||
Convertible:
|
|||||||||||||
Shares
Outstanding, $7.00 Series - 14
|
1,457
|
1,457
|
|||||||||||
Shares
Outstanding, $8.00 Series - 12
|
1,399
|
1,399
|
|||||||||||
Nonredeemable:
|
|||||||||||||
Shares
Outstanding, $7.00 Series - 1
|
102
|
102
|
|||||||||||
Shares
Outstanding, $4.75 Series - 10
|
1,000
|
1,000
|
|||||||||||
TOTAL PREFERRED STOCK | $ |
3,958
|
$ |
3,958
|
|||||||||
Long-term
Debt
|
|||||||||||||
8.05%,
Amortizing Secured Note, due December 20, 2021
|
$ |
2,849
|
$ |
2,896
|
|||||||||
6.25%,
Amortizing Secured Note, due May 22, 2028
|
8,785
|
8,995
|
|||||||||||
6.44%,
Amortizing Secured Note, due August 25, 2030
|
6,487
|
6,627
|
|||||||||||
6.46%,
Amortizing Secured Note, due September 19, 2031
|
6,766
|
6,907
|
|||||||||||
4.22%,
State Revolving Trust Note, due December 31, 2022
|
707
|
739
|
|||||||||||
3.30%
to 3.60%, State Revolving Trust Note, due May 1, 2025
|
3,168
|
3,100
|
|||||||||||
3.49%,
State Revolving Trust Note, due January 25, 2027
|
603
|
598
|
|||||||||||
4.03%,
State Revolving Trust Note, due December 1, 2026
|
974
|
914
|
|||||||||||
4.00%
to 5.00%, State Revolving Trust Bond, due September 1, 2021
|
730
|
730
|
|||||||||||
0.00%,
State Revolving Fund Bond, due September 1, 2021
|
567
|
577
|
|||||||||||
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
|
|||||||||||
6.40%,
Series U, due February 1, 2009
|
15,000
|
15,000
|
|||||||||||
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
|
636
|
647
|
|||||||||||
4.25%
to 4.63%, Series Y, due September 1, 2018
|
820
|
820
|
|||||||||||
0.00%,
Series Z, due September 1, 2019
|
1,428
|
1,455
|
|||||||||||
5.25%
to 5.75%, Series AA, due September 1, 2019
|
1,890
|
1,890
|
|||||||||||
0.00%,
Series BB, due September 1, 2021
|
1,774
|
1,805
|
|||||||||||
4.00%
to 5.00%, Series CC, due September 1, 2021
|
2,090
|
2,090
|
|||||||||||
5.10%,
Series DD, due January 1, 2032
|
6,000
|
6,000
|
|||||||||||
0.00%,
Series EE, due September 1, 2024
|
7,420
|
7,482
|
|||||||||||
3.00%
to 5.50%, Series FF, due September 1, 2024
|
8,735
|
8,735
|
|||||||||||
0.00%,
Series GG, due September 1, 2026
|
1,750
|
1,750
|
|||||||||||
4.00%
to 5.00%, Series HH, due September 1, 2026
|
1,950
|
1,950
|
|||||||||||
SUBTOTAL
LONG-TERM DEBT
|
132,629
|
133,207
|
|||||||||||
Less:
Current Portion of Long-term Debt
|
(2,556 | ) | (2,501 | ) | |||||||||
TOTAL
LONG-TERM DEBT
|
$ |
130,073
|
$ |
130,706
|
|||||||||
See
Notes to Condensed Consolidated Financial Statements.
|
(In
Thousands Except per Share Amounts)
Three
Months Ended June 30,
|
||||||||||||||||
Basic:
|
2007
|
Shares
|
2006
|
Shares
|
||||||||||||
Net
Income
|
$ |
3,313
|
13,191
|
$ |
2,967
|
11,611
|
||||||||||
Preferred
Dividend
|
(62 | ) |
|
(62 | ) |
|
||||||||||
Earnings
Applicable to Common Stock
|
$ |
3,251
|
13,191
|
$ |
2,905
|
11,611
|
||||||||||
Basic
EPS
|
$ |
0.25
|
$ |
0.25
|
||||||||||||
Diluted:
|
||||||||||||||||
Earnings
Applicable to Common Stock
|
$ |
3,251
|
13,191
|
$ |
2,905
|
11,611
|
||||||||||
$7.00
Series Preferred Dividend
|
24
|
167
|
24
|
167
|
||||||||||||
$8.00
Series Preferred Dividend
|
24
|
164
|
24
|
164
|
||||||||||||
Adjusted
Earnings Applicable to Common Stock
|
$ |
3,299
|
13,522
|
$ |
2,953
|
11,942
|
||||||||||
Diluted
EPS
|
$ |
0.24
|
$ |
0.25
|
Six
Months Ended June 30,
|
||||||||||||||||
Basic:
|
2007
|
Shares
|
2006
|
Shares
|
||||||||||||
Net
Income
|
$ |
5,084
|
13,184
|
$ |
4,780
|
11,602
|
||||||||||
Preferred
Dividend
|
(124 | ) |
|
(124 | ) |
|
||||||||||
Earnings
Applicable to Common Stock
|
$ |
4,960
|
13,184
|
$ |
4,656
|
11,602
|
||||||||||
Basic
EPS
|
$ |
0.38
|
$ |
0.40
|
||||||||||||
Diluted:
|
||||||||||||||||
Earnings
Applicable to Common Stock
|
$ |
4,960
|
13,184
|
$ |
4,656
|
11,602
|
||||||||||
$7.00
Series Preferred Dividend
|
49
|
167
|
49
|
167
|
||||||||||||
$8.00
Series Preferred Dividend
|
48
|
164
|
48
|
164
|
||||||||||||
Adjusted
Earnings Applicable to Common Stock
|
$ |
5,057
|
13,515
|
$ |
4,753
|
11,933
|
||||||||||
Diluted
EPS
|
$ |
0.37
|
$ |
0.40
|
(In
Thousands)
|
||||||||||||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
Operations
by Segments:
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Revenues:
|
||||||||||||||||
Regulated
|
$ |
19,776
|
$ |
18,663
|
$ |
36,462
|
$ |
34,663
|
||||||||
Non
– Regulated
|
2,081
|
2,404
|
4,427
|
4,664
|
||||||||||||
Inter-segment
Elimination
|
(112 | ) | (30 | ) | (157 | ) | (60 | ) | ||||||||
Consolidated
Revenues
|
$ |
21,745
|
$ |
21,037
|
$ |
40,732
|
$ |
39,267
|
||||||||
Operating
Income:
|
||||||||||||||||
Regulated
|
$ |
5,951
|
$ |
5,746
|
$ |
9,416
|
$ |
9,449
|
||||||||
Non
– Regulated
|
328
|
403
|
584
|
673
|
||||||||||||
Consolidated
Operating Income
|
$ |
6,279
|
$ |
6,149
|
$ |
10,000
|
$ |
10,122
|
||||||||
Net
Income:
|
||||||||||||||||
Regulated
|
$ |
3,140
|
$ |
2,740
|
$ |
4,777
|
$ |
4,407
|
||||||||
Non
– Regulated
|
173
|
227
|
307
|
373
|
||||||||||||
Consolidated
Net Income
|
$ |
3,313
|
$ |
2,967
|
$ |
5,084
|
$ |
4,780
|
Capital
Expenditures:
|
||||||||||||||||
Regulated
|
$ |
5,024
|
$ |
7,209
|
$ |
8,549
|
$ |
11,801
|
||||||||
Non
– Regulated
|
130
|
200
|
225
|
218
|
||||||||||||
Total
Capital Expenditures
|
$ |
5,154
|
$ |
7,409
|
$ |
8,774
|
$ |
12,019
|
||||||||
As
of
June
30,
2007
|
As
of
December
31,
2006
|
|||||||||||||||
Assets:
|
||||||||||||||||
Regulated
|
$ |
377,728
|
$ |
366,149
|
||||||||||||
Non
– Regulated
|
7,540
|
6,808
|
||||||||||||||
Inter-segment
Elimination
|
(2,994 | ) | (2,690 | ) | ||||||||||||
Consolidated
Assets
|
$ |
382,274
|
$ |
370,267
|
(In
Thousands)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Purchased
Water
|
||||||||||||||||
Treated
|
$ |
539
|
$ |
473
|
$ |
999
|
$ |
935
|
||||||||
Untreated
|
529
|
492
|
1,128
|
1,059
|
||||||||||||
Total
Costs
|
$ |
1,068
|
$ |
965
|
$ |
2,127
|
$ |
1,994
|
(In
Thousands)
|
||||||||||||||||
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
Three
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Service
Cost
|
$ |
320
|
$ |
334
|
$ |
205
|
$ |
189
|
||||||||
Interest
Cost
|
453
|
425
|
224
|
201
|
||||||||||||
Expected
Return on Assets
|
(456 | ) | (402 | ) | (120 | ) | (83 | ) | ||||||||
Amortization
of Unrecognized Losses
|
66
|
62
|
84
|
111
|
||||||||||||
Amortization
of Unrecognized Prior Service Cost
|
-
|
3
|
-
|
-
|
||||||||||||
Amortization
of Transition Obligation
|
2
|
-
|
34
|
34
|
||||||||||||
Net
Periodic Benefit Cost
|
$ |
385
|
$ |
422
|
$ |
427
|
$ |
452
|
||||||||
Pension
Benefits
|
Other
Benefits
|
|||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Service
Cost
|
$ |
639
|
$ |
644
|
$ |
411
|
$ |
366
|
||||||||
Interest
Cost
|
907
|
855
|
448
|
419
|
||||||||||||
Expected
Return on Assets
|
(913 | ) | (816 | ) | (241 | ) | (174 | ) | ||||||||
Amortization
of Unrecognized Losses
|
131
|
119
|
169
|
240
|
Amortization
of Unrecognized Prior Service Cost
|
-
|
3
|
-
|
-
|
||||||||||||
Amortization
of Transition Obligation
|
5
|
-
|
68
|
68
|
||||||||||||
Net
Periodic Benefit Cost
|
$ |
769
|
$ |
805
|
$ |
855
|
$ |
919
|
||||||||
(In
Thousands)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
Income
|
$ |
3,313
|
$ |
2,967
|
$ |
5,084
|
$ |
4,780
|
||||||||
Other
Comprehensive Income:
|
||||||||||||||||
Change
in Value of Equity Investments,
Net
of Income Tax
|
(23 | ) |
---
|
(14 | ) |
---
|
||||||||||
Other
Comprehensive Income
|
(23 | ) |
---
|
(14 | ) |
---
|
||||||||||
Comprehensive
Income
|
$ |
3,290
|
$ |
2,967
|
$ |
5,070
|
$ |
4,780
|
|
-
|
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;
|
|
-
|
statements
regarding expectations and events concerning capital
expenditures;
|
|
-
|
statements
as to the Company’s expected liquidity needs during fiscal 2007 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 base rate
increase
requests;
|
|
-
|
new
or additional water quality
standards;
|
|
-
|
weather
variations and other natural
phenomena;
|
|
-
|
the
existence of attractive acquisition candidates and the risks involved
in
pursuing those acquisitions;
|
|
-
|
acts
of war or terrorism;
|
|
-
|
significant
changes in the housing starts in
Delaware;
|
|
-
|
the
availability and cost of capital resources;
and
|
|
-
|
other
factors discussed elsewhere in this quarterly
report.
|
(In
Thousands)
|
||||||||||||||||||||||||
Three
Months Ended June 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Regulated
|
Non-Regulated
|
Total
|
Regulated
|
Non-Regulated
|
Total
|
|||||||||||||||||||
Revenues
|
$ |
19,776
|
$ |
1,969
|
$ |
21,745
|
$ |
18,663
|
$ |
2,374
|
$ |
21,037
|
||||||||||||
Operations
and maintenance expenses
|
9,631
|
1,549
|
11,180
|
8,921
|
1,885
|
10,806
|
||||||||||||||||||
Depreciation
expense
|
1,842
|
33
|
1,875
|
1,683
|
30
|
1,713
|
||||||||||||||||||
Other
taxes
|
2,352
|
59
|
2,411
|
2,313
|
56
|
2,369
|
||||||||||||||||||
Operating
income
|
5,951
|
328
|
6,279
|
5,746
|
403
|
6,149
|
||||||||||||||||||
Other
income
|
414
|
---
|
414
|
143
|
---
|
143
|
||||||||||||||||||
Interest
expense
|
1,672
|
26
|
1,698
|
1,784
|
24
|
1,808
|
||||||||||||||||||
Income
taxes
|
1,553
|
129
|
1,682
|
1,365
|
152
|
1,517
|
||||||||||||||||||
Net
income
|
$ |
3,140
|
$ |
173
|
$ |
3,313
|
$ |
2,740
|
$ |
227
|
$ |
2,967
|
(In
Thousands)
|
||||||||||||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Regulated
|
Non-Regulated
|
Total
|
Regulated
|
Non-Regulated
|
Total
|
|||||||||||||||||||
Revenues
|
$ |
36,462
|
$ |
4,270
|
$ |
40,732
|
$ |
34,663
|
$ |
4,604
|
$ |
39,267
|
||||||||||||
Operations
and maintenance expenses
|
18,846
|
3,504
|
22,350
|
17,432
|
3,759
|
21,191
|
||||||||||||||||||
Depreciation
expense
|
3,656
|
64
|
3,720
|
3,324
|
57
|
3,381
|
||||||||||||||||||
Other
taxes
|
4,544
|
118
|
4,662
|
4,458
|
115
|
4,573
|
||||||||||||||||||
Operating
income
|
9,416
|
584
|
10,000
|
9,449
|
673
|