On track to meet previously announced full-year earnings expectations
BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE:WTR) announced today that the $1.3 billion
capital program it has executed over the last 5 years has helped buffer
the impact of cold-weather-related main breaks in its distribution
systems and likely prevented even more main breaks than the company
incurred.
"While southeastern Pennsylvania experienced twice the normal number of
main breaks (185) in December, none of the breaks occurred on the
ductile iron pipe that Aqua has continued to use for its replacement
program since the early 1970s. This shows the positive impact
infrastructure replacement can have on service reliability and quality,"
said Aqua America Chairman Nicholas DeBenedictis.
Many cities and municipalities in the Mid-Atlantic and Northeast have
been dealing with service outages due to main breaks caused by the cold
weather, and the resulting increased operating expenses. Aqua America's
southeastern Pennsylvania operating division experienced an average
temperature of 32.7 degrees in December 2010—well below normal— making
it the coldest December in 10 years. Despite this, Aqua America believes
it remains on track to meet the expectations for full-year earnings
results that it outlined on its third quarter earnings call in November,
which will be reported in late February.
The majority of the breaks Aqua America companies reported were in cast
iron pipe, with some occurring on pre-1920 cement main, both of which
have been and continue to be primary targets for replacement under the
company's pipe replacement program.
DeBenedictis said, "Without the long-term commitment that we have shown
by investing in our infrastructure, we would likely be looking at a dire
situation with our pipe. We have replaced 785 miles of pipe in the last
10 years, which represents 15 percent of our system in Pennsylvania."
Aqua America is one of the largest U.S.-based, publicly-traded water
utilities serving almost 3 million residents in Pennsylvania, Ohio,
Illinois, Texas, New Jersey, Indiana, Virginia, Florida, North Carolina,
Maine, Missouri, New York, and Georgia. Aqua America is listed on the
New York Stock Exchange under the ticker symbol WTR.
This release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995 that address, among
other things: the impact of the Company's capital and infrastructure
replacement program, and Company's expectations for its earnings for the
years. There are important factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements and other key factors that we have indicated
could adversely affect our business and financial performance discussed
in our Annual Report on Form 10-K for the fiscal year ended December 31,
2009, which is on file with the Securities and Exchange Commission. Aqua
America is not under any obligation—and expressly disclaims any such
obligation—to update or alter its forward-looking statements whether as
a result of new information, future events, or otherwise.
WTRF
Aqua America, Inc.
Donna Alston, 610-645-1095
Director,
Communications
dpalston@aquaamerica.com
or
Brian
Dingerdissen, 610-645-1191
Director, Investor Relations
bjdingerdissen@aquaamerica.com
Source: Aqua America, Inc.
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