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
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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,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Operating
Revenues
|
$ | 23,035 | $ | 21,745 | $ | 43,890 | $ | 40,732 | ||||||||
Operating
Expenses:
|
||||||||||||||||
Operations
|
10,617 | 10,143 | 21,719 | 20,335 | ||||||||||||
Maintenance
|
1,110 | 1,037 | 2,107 | 2,015 | ||||||||||||
Depreciation
|
1,955 | 1,875 | 3,885 | 3,720 | ||||||||||||
Other
Taxes
|
2,528 | 2,411 | 5,008 | 4,662 | ||||||||||||
Total
Operating Expenses
|
16,210 | 15,466 | 32,719 | 30,732 | ||||||||||||
Operating
Income
|
6,825 | 6,279 | 11,171 | 10,000 | ||||||||||||
Other
Income (Expense):
|
||||||||||||||||
Allowance
for Funds Used During Construction
|
162 | 140 | 265 | 252 | ||||||||||||
Other
Income
|
277 | 282 | 518 | 508 | ||||||||||||
Other
Expense
|
(113 | ) | (8 | ) | (158 | ) | (12 | ) | ||||||||
Total
Other Income, net
|
326 | 414 | 625 | 748 | ||||||||||||
Interest
Charges
|
1,806 | 1,698 | 3,323 | 3,081 | ||||||||||||
Income
before Income Taxes
|
5,345 | 4,995 | 8,473 | 7,667 | ||||||||||||
Income
Taxes
|
1,780 | 1,682 | 2,904 | 2,583 | ||||||||||||
Net
Income
|
3,565 | 3,313 | 5,569 | 5,084 | ||||||||||||
Preferred
Stock Dividend Requirements
|
62 | 62 | 124 | 124 | ||||||||||||
Earnings
Applicable to Common Stock
|
$ | 3,503 | $ | 3,251 | $ | 5,445 | $ | 4,960 | ||||||||
Earnings
per share of Common Stock:
|
||||||||||||||||
Basic
|
$ | 0.26 | $ | 0.25 | $ | 0.41 | $ | 0.38 | ||||||||
Diluted
|
$ | 0.26 | $ | 0.24 | $ | 0.41 | $ | 0.37 | ||||||||
Average
Number of
|
||||||||||||||||
Common
Shares Outstanding :
|
||||||||||||||||
Basic
|
13,269 | 13,191 | 13,262 | 13,184 | ||||||||||||
Diluted
|
13,600 | 13,522 | 13,593 | 13,515 | ||||||||||||
Cash
Dividends Paid per Common Share
|
$ | 0.1750 | $ | 0.1725 | $ | 0.3500 | $ | 0.3450 |
See
Notes to Condensed Consolidated Financial Statements.
|
MIDDLESEX
WATER COMPANY
|
|||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|||||||||
(Unaudited)
|
|||||||||
(In
thousands)
|
|||||||||
June
30,
|
December
31,
|
||||||||
ASSETS
|
2008
|
2007
|
|||||||
UTILITY
PLANT:
|
Water
Production
|
$ | 100,211 | $ | 98,942 | ||||
Transmission
and Distribution
|
270,764 | 264,939 | |||||||
General
|
26,453 | 24,874 | |||||||
Construction
Work in Progress
|
15,299 | 9,833 | |||||||
TOTAL
|
412,727 | 398,588 | |||||||
Less
Accumulated Depreciation
|
67,721 | 64,736 | |||||||
UTILITY
PLANT - NET
|
345,006 | 333,852 | |||||||
CURRENT
ASSETS:
|
Cash
and Cash Equivalents
|
3,724 | 2,029 | ||||||
Accounts
Receivable, net
|
8,688 | 8,227 | |||||||
Unbilled
Revenues
|
5,691 | 4,609 | |||||||
Materials
and Supplies (at average cost)
|
1,451 | 1,205 | |||||||
Prepayments
|
1,657 | 1,363 | |||||||
TOTAL
CURRENT ASSETS
|
21,211 | 17,433 | |||||||
DEFERRED
CHARGES
|
Unamortized
Debt Expense
|
2,943 | 2,884 | ||||||
AND
OTHER ASSETS:
|
Preliminary
Survey and Investigation Charges
|
6,187 | 5,283 | ||||||
Regulatory
Assets
|
15,754 | 16,090 | |||||||
Operations
Contracts Fees Receivable
|
4,216 | 4,184 | |||||||
Restricted
Cash
|
6,113 | 6,418 | |||||||
Non-utility
Assets - Net
|
6,277 | 6,183 | |||||||
Other
|
330 | 348 | |||||||
TOTAL
DEFERRED CHARGES AND OTHER ASSETS
|
41,820 | 41,390 | |||||||
TOTAL
ASSETS
|
$ | 408,037 | $ | 392,675 | |||||
CAPITALIZATION
AND LIABILITIES
|
|||||||||
CAPITALIZATION:
|
Common
Stock, No Par Value
|
$ | 106,392 | $ | 105,668 | ||||
Retained
Earnings
|
28,245 | 27,441 | |||||||
Accumulated
Other Comprehensive Income, net of tax
|
- | 69 | |||||||
TOTAL
COMMON EQUITY
|
134,637 | 133,178 | |||||||
Preferred
Stock
|
3,958 | 3,958 | |||||||
Long-term
Debt
|
116,675 | 131,615 | |||||||
TOTAL
CAPITALIZATION
|
255,270 | 268,751 | |||||||
CURRENT
|
Current
Portion of Long-term Debt
|
17,807 | 2,723 | ||||||
LIABILITIES:
|
Notes
Payable
|
17,000 | 6,250 | ||||||
Accounts
Payable
|
4,982 | 6,477 | |||||||
Accrued
Taxes
|
8,106 | 7,611 | |||||||
Accrued
Interest
|
2,177 | 1,916 | |||||||
Unearned
Revenues and Advanced Service Fees
|
787 | 758 | |||||||
Other
|
1,283 | 1,274 | |||||||
TOTAL
CURRENT LIABILITIES
|
52,142 | 27,009 | |||||||
COMMITMENTS
AND CONTINGENT LIABILITIES (Note 7)
|
|||||||||
DEFERRED
CREDITS
|
Customer
Advances for Construction
|
21,585 | 21,758 | ||||||
AND
OTHER LIABILITIES:
|
Accumulated
Deferred Investment Tax Credits
|
1,421 | 1,461 | ||||||
Accumulated
Deferred Income Taxes
|
18,305 | 17,940 | |||||||
Employee
Benefit Plans
|
14,243 | 13,333 | |||||||
Regulatory
Liability - Cost of Utility Plant Removal
|
5,979 | 5,726 | |||||||
Other
|
1,265 | 459 | |||||||
TOTAL
DEFERRED CREDITS AND OTHER LIABILITIES
|
62,798 | 60,677 | |||||||
CONTRIBUTIONS
IN AID OF CONSTRUCTION
|
37,827 | 36,238 | |||||||
TOTAL
CAPITALIZATION AND LIABILITIES
|
$ | 408,037 | $ | 392,675 | |||||
See
Notes to Condensed Consolidated Financial Statements.
|
MIDDLESEX
WATER COMPANY
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Six
Months Ended June 30,
|
||||||||
2008
|
2007
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
Income
|
$ | 5,569 | $ | 5,084 | ||||
Adjustments
to Reconcile Net Income to
|
||||||||
Net
Cash Provided by Operating Activities:
|
||||||||
Depreciation
and Amortization
|
4,208 | 4,029 | ||||||
Provision
for Deferred Income Taxes and ITC
|
317 | 235 | ||||||
Equity
Portion of AFUDC
|
(138 | ) | (121 | ) | ||||
Cash
Surrender Value of Life Insurance
|
115 | (205 | ) | |||||
Gain
on Disposal of Equity Investments
|
(86 | ) | - | |||||
Gain
on Sale of Real Estate
|
- | (212 | ) | |||||
Changes
in Assets and Liabilities:
|
||||||||
Accounts
Receivable
|
(493 | ) | (1,555 | ) | ||||
Unbilled
Revenues
|
(1,082 | ) | (1,546 | ) | ||||
Materials
& Supplies
|
(246 | ) | (139 | ) | ||||
Prepayments
|
(294 | ) | (407 | ) | ||||
Other
Assets
|
(183 | ) | (194 | ) | ||||
Accounts
Payable
|
(559 | ) | 2,011 | |||||
Accrued
Taxes
|
531 | 1,312 | ||||||
Accrued
Interest
|
261 | 32 | ||||||
Employee
Benefit Plans
|
1,207 | 1,300 | ||||||
Unearned
Revenue & Advanced Service Fees
|
29 | 106 | ||||||
Other
Liabilities
|
(123 | ) | 186 | |||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
9,033 | 9,916 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Utility
Plant Expenditures, Including AFUDC of $127 in 2008 and $131 in
2007
|
(13,539 | ) | (8,774 | ) | ||||
Restricted
Cash
|
340 | 647 | ||||||
Proceeds
from Real Estate Dispositions
|
- | 273 | ||||||
Preliminary
Survey & Investigation Charges
|
(905 | ) | (1,590 | ) | ||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(14,104 | ) | (9,444 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Redemption
of Long-term Debt
|
(795 | ) | (711 | ) | ||||
Proceeds
from Issuance of Long-term Debt
|
939 | 133 | ||||||
Net
Short-term Bank Borrowings
|
10,750 | 800 | ||||||
Deferred
Debt Issuance Expenses
|
(158 | ) | (30 | ) | ||||
Common
Stock Issuance Expense
|
- | (15 | ) | |||||
Restricted
Cash
|
(35 | ) | (23 | ) | ||||
Proceeds
from Issuance of Common Stock
|
724 | 705 | ||||||
Payment
of Common Dividends
|
(4,640 | ) | (4,547 | ) | ||||
Payment
of Preferred Dividends
|
(124 | ) | (124 | ) | ||||
Construction
Advances and Contributions-Net
|
105 | 33 | ||||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
6,766 | (3,779 | ) | |||||
NET
CHANGES IN CASH AND CASH EQUIVALENTS
|
1,695 | (3,307 | ) | |||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
2,029 | 5,826 | ||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$ | 3,724 | $ | 2,519 | ||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH ACTIVITY:
|
||||||||
Utility
Plant received as Construction Advances and Contributions
|
$ | 1,312 | $ | 2,811 | ||||
Transfer of Equity Investments to Employee Retirement Benefit Plans | $ | 132 | - | |||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOWS INFORMATION:
|
||||||||
Cash
Paid During the Year for:
|
||||||||
Interest
|
$ | 3,101 | $ | 3,098 | ||||
Interest
Capitalized
|
$ | (127 | ) | $ | (131 | ) | ||
Income
Taxes
|
$ | 2,707 | $ | 1,518 | ||||
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,
|
|||||||||||
2008
|
2007
|
|||||||||||
Common
Stock, No Par Value
|
||||||||||||
Shares
Authorized -
|
40,000
|
|||||||||||
Shares
Outstanding -
|
2008
- 13,278
|
$ | 106,392 | $ | 105,668 | |||||||
2007
- 13,246
|
||||||||||||
Retained
Earnings
|
28,245 | 27,441 | ||||||||||
Accumulated
Other Comprehensive Income (Loss), net of tax
|
- | 69 | ||||||||||
TOTAL
COMMON EQUITY
|
$ | 134,637 | $ | 133,178 | ||||||||
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
|
$ | 2,749 | $ | 2,800 | ||||||||
6.25%,
Amortizing Secured Note, due May 22, 2028
|
8,365 | 8,575 | ||||||||||
6.44%,
Amortizing Secured Note, due August 25, 2030
|
6,207 | 6,347 | ||||||||||
6.46%,
Amortizing Secured Note, due September 19, 2031
|
6,487 | 6,627 | ||||||||||
4.22%,
State Revolving Trust Note, due December 31, 2022
|
674 | 691 | ||||||||||
3.30%
to 3.60%, State Revolving Trust Note, due May 1, 2025
|
3,678 | 3,168 | ||||||||||
3.49%,
State Revolving Trust Note, due January 25, 2027
|
667 | 603 | ||||||||||
4.03%,
State Revolving Trust Note, due December 1, 2026
|
957 | 974 | ||||||||||
3.64%,
State Revolving Trust Note, due July 1, 2028
|
211 | - | ||||||||||
3.64%,
State Revolving Trust Note, due January 1, 2028
|
140 | - | ||||||||||
4.00%
to 5.00%, State Revolving Trust Bond, due September 1,
2021
|
695 | 695 | ||||||||||
0.00%,
State Revolving Fund Bond, due September 1, 2021
|
528 | 538 | ||||||||||
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
|
582 | 591 | ||||||||||
4.25%
to 4.63%, Series Y, due September 1, 2018
|
765 | 765 | ||||||||||
0.00%,
Series Z, due September 1, 2019
|
1,317 | 1,342 | ||||||||||
5.25%
to 5.75%, Series AA, due September 1, 2019
|
1,785 | 1,785 | ||||||||||
0.00%,
Series BB, due September 1, 2021
|
1,656 | 1,685 | ||||||||||
4.00%
to 5.00%, Series CC, due September 1, 2021
|
1,995 | 1,995 | ||||||||||
5.10%,
Series DD, due January 1, 2032
|
6,000 | 6,000 | ||||||||||
0.00%,
Series EE, due September 1, 2024
|
7,004 | 7,112 | ||||||||||
3.00%
to 5.50%, Series FF, due September 1, 2024
|
8,385 | 8,385 | ||||||||||
0.00%,
Series GG, due September 1, 2026
|
1,685 | 1,710 | ||||||||||
4.00%
to 5.00%, Series HH, due August 1, 2026
|
1,950 | 1,950 | ||||||||||
0.00%,
Series II, due August 1, 2027
|
1,750 | 1,750 | ||||||||||
3.40%
to 5.00%, Series JJ, due August 1, 2027
|
1,750 | 1,750 | ||||||||||
SUBTOTAL
LONG-TERM DEBT
|
134,482 | 134,338 | ||||||||||
Less:
Current Portion of Long-term Debt
|
(17,807 | ) | (2,723 | ) | ||||||||
TOTAL LONG-TERM
DEBT
|
$ | 116,675 | $ | 131,615 | ||||||||
See
Notes to Condensed Consolidated Financial Statements.
|
(In
Thousands Except per Share Amounts)
Three
Months Ended June 30,
|
||||||||||||||||
Basic:
|
2008
|
Shares
|
2007
|
Shares
|
||||||||||||
Net
Income
|
$ | 3,565 | 13,269 | $ | 3,313 | 13,191 | ||||||||||
Preferred
Dividend
|
(62 | ) | (62 | ) |
|
|||||||||||
Earnings
Applicable to Common Stock
|
$ | 3,503 | 13,269 | $ | 3,251 | 13,191 | ||||||||||
Basic
EPS
|
$ | 0.26 | $ | 0.25 | ||||||||||||
Diluted:
|
||||||||||||||||
Earnings
Applicable to Common Stock
|
$ | 3,503 | 13,269 | $ | 3,251 | 13,191 | ||||||||||
$7.00
Series Preferred Dividend
|
24 | 167 | 24 | 167 | ||||||||||||
$8.00
Series Preferred Dividend
|
24 | 164 | 24 | 164 | ||||||||||||
Adjusted
Earnings Applicable to Common Stock
|
$ | 3,551 | 13,600 | $ | 3,299 | 13,522 | ||||||||||
Diluted
EPS
|
$ | 0.26 | $ | 0.24 |
Six
Months Ended June 30,
|
||||||||||||||||
Basic:
|
2008
|
Shares
|
2007
|
Shares
|
||||||||||||
Net
Income
|
$ | 5,569 | 13,262 | $ | 5,084 | 13,184 | ||||||||||
Preferred
Dividend
|
(124 | ) |
|
(124 | ) |
|
||||||||||
Earnings
Applicable to Common Stock
|
$ | 5,445 | 13,262 | $ | 4,960 | 13,184 | ||||||||||
Basic
EPS
|
$ | 0.41 | $ | 0.38 | ||||||||||||
Diluted:
|
||||||||||||||||
Earnings
Applicable to Common Stock
|
$ | 5,445 | 13,262 | $ | 4,960 | 13,184 | ||||||||||
$7.00
Series Preferred Dividend
|
49 | 167 | 49 | 167 | ||||||||||||
$8.00
Series Preferred Dividend
|
48 | 164 | 48 | 164 | ||||||||||||
Adjusted
Earnings Applicable to Common Stock
|
$ | 5,542 | 13,593 | $ | 5,057 | 13,515 | ||||||||||
Diluted
EPS
|
$ | 0.41 | $ | 0.37 | ||||||||||||
(In
Thousands)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
Operations
by Segments:
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Revenues:
|
||||||||||||||||
Regulated
|
$ | 20,538 | $ | 19,776 | $ | 38,960 | $ | 36,462 | ||||||||
Non
– Regulated
|
2,607 | 2,081 | 5,091 | 4,427 | ||||||||||||
Inter-segment
Elimination
|
(110 | ) | (112 | ) | (161 | ) | (157 | ) | ||||||||
Consolidated
Revenues
|
$ | 23,035 | $ | 21,745 | $ | 43,890 | $ | 40,732 | ||||||||
Operating
Income:
|
||||||||||||||||
Regulated
|
$ | 6,346 | $ | 5,951 | $ | 10,236 | $ | 9,416 | ||||||||
Non
– Regulated
|
479 | 328 | 935 | 584 | ||||||||||||
Consolidated
Operating Income
|
$ | 6,825 | $ | 6,279 | $ | 11,171 | $ | 10,000 | ||||||||
Net
Income:
|
||||||||||||||||
Regulated
|
$ | 3,260 | $ | 3,140 | $ | 4,961 | $ | 4,777 | ||||||||
Non
– Regulated
|
305 | 173 | 608 | 307 | ||||||||||||
Consolidated
Net Income
|
$ | 3,565 | $ | 3,313 | $ | 5,569 | $ | 5,084 | ||||||||
Capital
Expenditures:
|
||||||||||||||||
Regulated
|
$ | 6,973 | $ | 5,024 | $ | 13,284 | $ | 8,549 | ||||||||
Non
– Regulated
|
239 | 130 | 255 | 225 | ||||||||||||
Total
Capital Expenditures
|
$ | 7,212 | $ | 5,154 | $ | 13,539 | $ | 8,774 |
As
of
June
30,
2008
|
As
of
December
31,
2007
|
|||||||
Assets:
|
||||||||
Regulated
|
$ | 401,693 | $ | 387,931 | ||||
Non
– Regulated
|
10,366 | 8,157 | ||||||
Inter-segment
Elimination
|
(4,022 | ) | (3,413 | ) | ||||
Consolidated
Assets
|
$ | 408,037 | $ | 392,675 |
(In
Thousands)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Purchased
Water
|
||||||||||||||||
Treated
|
$ | 529 | $ | 539 | $ | 1,050 | $ | 999 | ||||||||
Untreated
|
516 | 529 | 1,121 | 1,128 | ||||||||||||
Total
Costs
|
$ | 1,045 | $ | 1,068 | $ | 2,171 | $ | 2,127 |
(In
Thousands)
|
||||||||||||||||
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three
Months Ended June 30,
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Service
Cost
|
$ | 312 | $ | 320 | $ | 194 | $ | 205 | ||||||||
Interest
Cost
|
488 | 453 | 252 | 224 | ||||||||||||
Expected
Return on Assets
|
(484 | ) | (456 | ) | (145 | ) | (120 | ) | ||||||||
Amortization
of Unrecognized Losses
|
- | 66 | 72 | 84 | ||||||||||||
Amortization
of Unrecognized Prior Service Cost
|
2 | 2 | - | - | ||||||||||||
Amortization
of Transition Obligation
|
- | - | 34 | 34 | ||||||||||||
Net
Periodic Benefit Cost
|
$ | 318 | $ | 385 | $ | 407 | $ | 427 |
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Service
Cost
|
$ | 624 | $ | 639 | $ | 387 | $ | 411 | ||||||||
Interest
Cost
|
975 | 907 | 505 | 448 | ||||||||||||
Expected
Return on Assets
|
(969 | ) | (913 | ) | (291 | ) | (241 | ) | ||||||||
Amortization
of Unrecognized Losses
|
- | 131 | 144 | 169 | ||||||||||||
Amortization
of Unrecognized Prior Service Cost
|
5 | - | - | - | ||||||||||||
Amortization
of Transition Obligation
|
- | 5 | 68 | 68 | ||||||||||||
Net
Periodic Benefit Cost
|
$ | 635 | $ | 769 | $ | 813 | $ | 855 | ||||||||
(In
Thousands)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Net
Income
|
$ | 3,565 | $ | 3,313 | $ | 5,569 | $ | 5,084 | ||||||||
Other
Comprehensive Income (Loss):
|
||||||||||||||||
Change
in Value of Equity Investments, Net of Income Tax
|
--- | (23 | ) | (12 | ) | (14 | ) | |||||||||
Less:
Adjustment for Gain Included in Net Income
|
(57 | ) | --- | (57 | ) | --- | ||||||||||
Other Comprehensive
Income (Loss):
|
(57 | ) | (23 | ) | (69 | ) | (14 | ) | ||||||||
Comprehensive
Income
|
$ | 3,508 | $ | 3,290 | $ | 5,500 | $ | 5,070 |
|
-
|
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 2008 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,
|
||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
Regulated
|
Non-
Regulated
|
Total
|
Regulated
|
Non-
Regulated
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 20,538 | $ | 2,497 | $ | 23,035 | $ | 19,776 | $ | 1,969 | $ | 21,745 | ||||||||||||
Operations
and maintenance expenses
|
9,796 | 1,931 | 11,727 | 9,631 | 1,549 | 11,180 | ||||||||||||||||||
Depreciation
expense
|
1,926 | 29 | 1,955 | 1,842 | 33 | 1,875 | ||||||||||||||||||
Other
taxes
|
2,470 | 58 | 2,528 | 2,352 | 59 | 2,411 | ||||||||||||||||||
Operating
income
|
6,346 | 479 | 6,825 | 5,951 | 328 | 6,279 | ||||||||||||||||||
Other
income
|
239 | 87 | 326 | 414 | -- | 414 | ||||||||||||||||||
Interest
expense
|
1,752 | 54 | 1,806 | 1,672 | 26 | 1,698 | ||||||||||||||||||
Income
taxes
|
1,573 | 207 | 1,780 | 1,553 | 129 | 1,682 | ||||||||||||||||||
Net
income
|
$ | 3,260 | $ | 305 | $ | 3,565 | $ | 3,140 | $ | 173 | $ | 3,313 |
(In
Thousands)
Six Months Ended June
30,
|
||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
Regulated
|
Non-
Regulated
|
Total
|
Regulated
|
Non-
Regulated
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 38,960 | $ | 4,930 | $ | 43,890 | $ | 36,462 | $ | 4,270 | $ | 40,732 | ||||||||||||
Operations
and maintenance expenses
|
20,005 | 3,821 | 23,826 | 18,846 | 3,504 | 22,350 | ||||||||||||||||||
Depreciation
expense
|
3,827 | 58 | 3,885 | 3,656 | 64 | 3,720 | ||||||||||||||||||
Other
taxes
|
4,892 | 116 | 5,008 | 4,544 | 118 | 4,662 | ||||||||||||||||||
Operating
income
|
10,236 | 935 | 11,171 | 9,416 | 584 | 10,000 | ||||||||||||||||||
Other
income
|
416 | 209 | 625 | 748 | --- | 748 | ||||||||||||||||||
Interest
expense
|
3,198 | 125 | 3,323 | 3,030 | 51 | 3,081 | ||||||||||||||||||
Income
taxes
|
2,493 | 411 | 2,904 | 2,357 | 226 | 2,583 | ||||||||||||||||||
Net
income
|
$ | 4,961 | $ | 608 | $ | 5,569 | $ | 4,777 | $ | 307 | $ | 5,084 |
Item
4.
|
Item
1.
|
Legal
Proceedings
|
Item 1A.
|
Risk
Factors
|
Item 2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
Item 3.
|
Defaults
Upon Senior Securities
|
Item 4.
|
Submission
of Matters to a Vote of Security
Holders
|
|
1.
|
ELECTION
OF DIRECTORS:
|
FOR
|
%
|
WITHHOLD
|
%
|
||
John
R. Middleton, M.D.
|
10,202,350
|
92.8
|
789,288
|
7.2
|
|
Jeffries
Shein
|
10,535,807
|
95.9
|
455,831
|
4.1
|
|
J.
Richard Tompkins
|
9,098,808
|
82.8
|
1,892,830
|
17.2
|
|
2.
|
Approval
of the new 2008 Restricted Stock
Plan
|
FOR
|
%
|
AGAINST
|
%
|
ABSTAIN
|
%
|
6,106.228
|
92.5
|
498,479
|
7.5
|
150,948
|
0.0
|
|
3.
|
Approval
of the outside Director Stock Compensation
Plan
|
FOR
|
%
|
AGAINST
|
%
|
ABSTAIN
|