Aqua America Reports Earnings for 2016
-
Regulated segment revenue increased to
$800.1 million -
Reported earnings per share of
$1.32 -
Invested a record of
$383 million to improve infrastructure systems - Acquired 19 water and wastewater systems
- Increased total customer base by 1.6 percent, or approximately 15,000 customers
Full-year Operating Results
Aqua's regulated segment revenues increased to
Operations and maintenance expenses for Aqua's regulated segment
increased to
For the full-year 2016, Aqua reported net income of
"Aqua's 2016 results from our regulated business is a testament to the
management team's continuous focus on growing our customer base through
acquisitions, prudently investing in renewing our aging infrastructure,
and driving efficiencies across the organization," said
Fourth Quarter Operating Results
Aqua's regulated segment revenues increased to
Operations and maintenance expenses for Aqua's regulated segment
increased to
For the fourth quarter 2016, Aqua reported net income of
Capital Expenditures
In 2016, Aqua invested a record of
Dividend
On
Rate Activity
In 2016, Aqua America's regulated subsidiaries received rate awards and
infrastructure surcharges in
To date in 2017, the company's state subsidiaries in
Acquisition Growth in Regulated Operations
In 2016, the company invested more than
"Our acquisition efforts yielded strong results in 2016, and we will continue to build off that success," said Franklin. "We remain very optimistic about the prospect of growth in the water and wastewater sector. By providing a viable option for both private and municipal systems, which increasingly need infrastructure improvement, we can continually generate positive conversations with local officials who can choose Aqua to improve and strengthen their systems for future generations."
Financial Information
At year-end 2016, Aqua America's weighted average cost of fixed-rate
long-term debt was 4.26 percent and the company had
2017 Guidance Highlights
-
Earnings per diluted common share of
$1.34 to$1.39 - Same-system operations and maintenance expenses increase of 1 to 2 percent
-
More than
$450 million in infrastructure improvements in 2017 for communities served by Aqua -
More than
$1.2 billion planned through 2019 in existing operations to improve and strengthen systems -
Aqua
Pennsylvania expected to file infrastructure investment charge in 2017 and rate case filing likely in 2018, with resolution expected in 2019 - Total customer growth of 1.5 to 2 percent
Earnings Call Information |
Date: |
Time: |
Webcast and slide presentation link: http://ir.aquaamerica.com/events.cfm |
The call and slide presentation will be webcast live so that interested
parties may listen over the
About
Caution Concerning Forward-Looking Statements
This release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among
others: the expected earnings per share for the fiscal year ending in
2017; the continuation of the company's growth-through-acquisition
program and the expectations for customer growth from this program and
the ability of the company to create momentum in the privatization of
municipal water and wastewater systems; the expected increase in
customer base for the fiscal year ending in 2017; the company's expected
same-system operations and maintenance expense increase for the fiscal
year ending in 2017; the company's ability to control expenses and
create and maintain efficiencies; the anticipated amount of capital
investment from 2017 through 2019; the anticipated outcome of the
company's
WTRF
The company's results stated here are unaudited. The final audited
financial statements will be filed with the company's annual report on
Form 10-K. The following statements and tables show selected operating
data for the quarter and year ended
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||||||||||||
Selected Operating Data | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended | Year Ended | |||||||||||
|
|
|||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||
Operating revenues | $ | 196,799 | $ | 197,067 | $ | 819,875 | $ | 814,204 | ||||
Operations and maintenance expense | $ | 77,550 | $ | 77,856 | $ | 304,897 | $ | 309,310 | ||||
Regulated segment: | ||||||||||||
Operating revenues | $ | 193,784 | $ | 189,094 | $ | 800,107 | $ | 779,613 | ||||
Operations and maintenance expense | $ | 75,333 | $ | 72,227 | $ | 285,347 | $ | 282,866 | ||||
Net income | $ | 49,649 | $ | 28,434 | $ | 234,182 | $ | 201,790 | ||||
Basic net income per common share | $ | 0.28 | $ | 0.16 | $ | 1.32 | $ | 1.14 | ||||
Diluted net income per common share | $ | 0.28 | $ | 0.16 | $ | 1.32 | $ | 1.14 | ||||
Basic average common shares outstanding | 177,365 | 176,480 | 177,273 | 176,788 | ||||||||
Diluted average common shares outstanding | 177,880 | 177,261 | 177,846 | 177,517 | ||||||||
|
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Condensed Consolidated Balance Sheets | ||||||
(In thousands of dollars) | ||||||
(Unaudited) | ||||||
|
|
|||||
2016 |
2015 |
|||||
Net property, plant and equipment | $ | 5,001,615 | $ | 4,688,925 | ||
Current assets | 128,650 | 128,370 | ||||
Regulatory assets and other assets | 1,028,726 | 900,578 | ||||
Total assets | $ | 6,158,991 | $ | 5,717,873 | ||
Total equity | $ | 1,850,068 | $ | 1,725,930 | ||
Long-term debt, excluding current portion, net of debt issuance costs | 1,737,605 | 1,720,447 | ||||
Current portion of long-term debt and loans payable | 157,206 | 52,314 | ||||
Other current liabilities | 144,330 | 140,885 | ||||
Deferred credits and other liabilities | 2,269,782 | 2,078,297 | ||||
Total liabilities and equity | $ | 6,158,991 | $ | 5,717,873 | ||
|
||||||||||||||||
Consolidated Statement of Income | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
|
|
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2016 |
2015 |
2016 |
2015 |
|||||||||||||
Operating revenues | $ | 196,799 | $ | 197,067 | $ | 819,875 | $ | 814,204 | ||||||||
Cost & expenses: | ||||||||||||||||
Operations and maintenance | 77,550 | 77,856 | 304,897 | 309,310 | ||||||||||||
Depreciation | 33,342 | 31,760 | 130,987 | 125,290 | ||||||||||||
Amortization | 654 | 858 | 2,021 | 3,447 | ||||||||||||
Taxes other than income taxes | 13,291 | 11,978 | 56,385 | 55,057 | ||||||||||||
Total | 124,837 | 122,452 | 494,290 | 493,104 | ||||||||||||
Operating income | 71,962 | 74,615 | 325,585 | 321,100 | ||||||||||||
Other expense (income): | ||||||||||||||||
Interest expense, net | 20,458 | 19,732 | 80,594 | 76,536 | ||||||||||||
Allowance for funds used during construction | (2,369 | ) | (2,289 | ) | (8,815 | ) | (6,219 | ) | ||||||||
Loss (gain) on sale of other assets | 12 | (130 | ) | (378 | ) | (468 | ) | |||||||||
Gain on extinguishment of debt | - | (678 | ) | - | (678 | ) | ||||||||||
Equity (income) loss in joint venture | 167 | 33,681 | (976 | ) | 35,177 | |||||||||||
Income before income taxes | 53,694 | 24,299 | 255,160 | 216,752 | ||||||||||||
Provision for income taxes | 4,045 | (4,135 | ) | 20,978 | 14,962 | |||||||||||
Net income | $ | 49,649 | $ | 28,434 | $ | 234,182 | $ | 201,790 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.28 | $ | 0.16 | $ | 1.32 | $ | 1.14 | ||||||||
Diluted | $ | 0.28 | $ | 0.16 | $ | 1.32 | $ | 1.14 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 177,365 | 176,480 | 177,273 | 176,788 | ||||||||||||
Diluted | 177,880 | 177,261 | 177,846 | 177,517 | ||||||||||||
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Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarter Ended | Year Ended | |||||||||||||
|
|
|||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||
Net income (GAAP financial measure) | $ | 49,649 | $ | 28,434 | $ | 234,182 | $ | 201,790 | ||||||
Plus: Joint venture impairment charge | - | 32,975 | - | 32,975 | ||||||||||
Tax effect | - | (11,542 | ) | - | (11,542 | ) | ||||||||
Adjusted income (Non-GAAP financial measure) | $ | 49,649 | $ | 49,867 | $ | 234,182 | $ | 223,223 | ||||||
Net income per common share (GAAP financial measure): | ||||||||||||||
Basic | $ | 0.28 | $ | 0.16 | $ | 1.32 | $ | 1.14 | ||||||
Diluted | $ | 0.28 | $ | 0.16 | $ | 1.32 | $ | 1.14 | ||||||
Adjusted income per common share (Non-GAAP financial measure): | ||||||||||||||
Basic | $ | 0.28 | $ | 0.28 | $ | 1.32 | $ | 1.26 | ||||||
Diluted | $ | 0.28 | $ | 0.28 | $ | 1.32 | $ | 1.26 | ||||||
Average common shares outstanding: | ||||||||||||||
Basic | 177,365 | 176,480 | 177,273 | 176,788 | ||||||||||
Diluted | 177,880 | 177,261 | 177,846 | 177,517 | ||||||||||
The Company is providing disclosure of the reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. The Company believes that the non-GAAP financial measures provide investors the ability to measure the Company's financial operating performance by adjustment, which is more indicative of the Company's ongoing performance and is more comparable to measures reported by other companies. The Company further believes that the presentation of these non-GAAP financial measures is useful to investors as a more meaningful way to compare the Company's operating performance against its historical financial results.
This press release includes a presentation of "adjusted income" and "adjusted income per common share." Both of these amounts have been adjusted to exclude the effects of the Company's share of a noncash impairment charge recognized by a joint venture in the fourth quarter of 2015.
These financial measures are measures of the Company's operating
performance that do not comply with
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Investor Relations
O:
610.645.1191
BJDingerdissen@AquaAmerica.com
or
Manager, Communications
O: 610.645.1095
M:
484.368.4720
DPAlston@AquaAmerica.com
Source:
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