Philadelphia Suburban Corporation Announces Increased Operating Results for 2001; Company passes 600,000-customer mark for year
Chairman and President Nicholas DeBenedictis commenting on the year said, "2001 was another outstanding year for PSC. The company surpassed the 600,000-customer level, continued its commitment to shareholders by increasing the dividend by 6.9 percent and issuing a five-for-four stock split in the form of a 25 percent stock distribution."
PSC completed 20 acquisitions and other growth ventures during the year ended December 31, 2001, contributing to a four percent increase in the company's customer base.
As of December 31, 2001, PSC provided water and wastewater service to 602,510 customer connections (over two million people served) in the six states in which the company operates.
Of the 20 growth ventures completed during the year, four were completed during the fourth quarter of 2001, including PSC's purchase of the water assets of Chalfont Borough in Bucks County, Pennsylvania, putting the company past the 600,000-customer level. The Chalfont acquisition further confirms the company's ability to acquire public systems.
PSC continued to grow in its newest and fastest growing state, North Carolina, with the purchase of Hydraulics, Ltd. and in the Northeast (Poconos) region of Pennsylvania with the purchase of Paupack Water Company.
Diluted net income per share for the year increased 7.4 percent to $0.87, versus $0.81 in 2000, on 5.1 percent more average shares outstanding. Net income increased 13.6 percent to $60.0 million versus $52.8 million in the prior year.
Diluted income per share from operations increased to $0.87 per share, up 13.0 percent in comparison to $0.77 in 2000 (2000 income from operations is exclusive of one-time recovery of net merger expenses). Income from operations increased 18.8 percent to $60.0 million versus $50.5 million for the year ended December 31, 2000.
PSC attributes its increase in income from operations to rate awards granted throughout the company, increased water consumption related to weather conditions and the company's successful growth-through-acquisition strategy, including further expansion into its fast-growing North Carolina and Northeastern Pennsylvania territories.
Revenues for the year ended December 31, 2001 increased 12.2 percent to $307.3 million from $274.0 for the same period in 2000.
Diluted net income per share was $0.18 for the quarters ended December 31, 2001 and 2000. Fourth quarter 2000 net income was positively impacted by $0.02 per share as a result of the sale of the company's securities holdings in E'Town (water) Corporation.
Corresponding income from operations, exclusive of the impacts from the sale of the company's securities holdings in E'Town (water) Corporation, was up 10.9 percent to $12.2 million in comparison to $11.0 million in 2000.
Operating revenues for the quarter ended December 31, 2001 increased 8.5 percent to $75.1 million, versus $ 69.2 million for the same period in the prior year.
Operations and maintenance expenses as a percent of revenue (O&M ratio) continued to improve in 2001 to 36.4 percent, versus 37.1 percent in 2000. This continues a three-year trend of an average 100 basis point annual decrease in the O&M ratio since the Consumers merger in 1999.
O&M expenses for the year ended December 31, 2001 increased 10.0 percent in comparison to 2000 due to expenses associated with newly-acquired systems and higher water production costs, including increased chemical and treatment costs, associated with increased water sales for the year, along with other cost increases.
PSC is one of the nation's largest investor-owned water utilities, serving approximately two million residents in Pennsylvania, Illinois, Ohio, New Jersey, Maine, and North Carolina.
PSC is a publicly-traded company listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol "PSC" and has been committed to the preservation and improvement of the environment throughout its history, which spans more than 100 years.
The company's quarterly conference call with analysts will be at 11:00 a.m. Eastern Standard Time today. Interested parties may listen to the conference call over the Internet by logging onto www.suburbanwater.com. The call will be recorded and replayed beginning 12:00 p.m., Friday, February 15, 2002, and will run until 12:00 p.m., Tuesday, February 19, 2002.
The dial-in telephone number for the audio replay is (973) 341-3080 (pin number 3111066).
The following table shows selected operating data for the quarters and years ended December 31, 2001 and 2000 (in thousands, except per share data). All share and per share data have been restated to reflect the December 1, 2001 five-for-four stock split effected in the form of a 25 percent stock distribution.
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Operating revenues $ 75,121 $ 69,189 $ 307,280 $ 274,014
Net income available
to common stock* $ 12,209 $ 12,434 $ 60,005 $ 52,784
Merger recovery, net
of tax - - - (2,236)
-------------------- ---------------------
Income from operations* $ 12,209 $ 12,434 $ 60,005 $ 50,548
==================== =====================
Basic net income
per share* $ 0.18 $ 0.19 $ 0.88 $ 0.82
Diluted net income
per share* $ 0.18 $ 0.18 $ 0.87 $ 0.81
Merger recovery, net
of tax - - - (0.04)
-------------------- ---------------------
Income per common
share from operations* $ 0.18 $ 0.18 $ 0.87 $ 0.77
==================== =====================
Average common shares
outstanding:
Basic 68,284 66,455 67,873 64,759
Diluted 69,159 67,223 68,755 65,414
*The 2000 amounts include a net gain of $1,458 or $0.02
per share in the fourth quarter and $2,079 or $0.03 per
share for the year for the sale of the company's securities
holdings in E'Town (water) Corporation.
Note: The recovery of merger costs is related to the
March 1999 merger with Consumers Water Company.
This release contains certain forward-looking statements involving risks and uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements.
These factors include, among others, the following: general economic business conditions; unfavorable weather conditions; the success of certain cost containment initiatives; changes in regulations or regulatory treatment; availability and cost of capital; and the success of growth initiatives.
Philadelphia Suburban Corporation and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Operating revenues $ 75,121 $ 69,189 $307,280 $274,014
Cost & expenses:
Operations and
maintenance 30,243 27,426 111,885 101,741
Depreciation 9,618 8,315 37,979 32,271
Amortization 547 654 2,189 1,829
Taxes other than
income taxes 5,399 5,481 20,887 22,520
Recovery of
restructuring costs - - - (1,136)
-------- -------- -------- --------
Total 45,807 41,876 172,940 157,225
-------- -------- -------- --------
Operating income 29,314 27,313 134,340 116,789
Other expense (income):
Interest expense, net 9,832 10,233 39,859 40,360
Allowance for funds
used during
construction (357) (428) (1,222) (2,688)
Gain on sale of
other assets (287) (2,500) (3,384) (5,076)
Minority interest - 27 - 103
Recovery of merger
transaction costs - - - (2,905)
-------- -------- -------- --------
Income before
income taxes 20,126 19,981 99,087 86,995
Provision for
income taxes 7,891 7,521 38,976 34,105
-------- -------- -------- --------
Net income 12,235 12,460 60,111 52,890
Dividends on
preferred stock 26 26 106 106
-------- -------- -------- --------
Net income available
to common stock $ 12,209 $ 12,434 $ 60,005 $ 52,784
======== ======== ======== ========
Net income $ 12,235 $ 12,460 $ 60,111 $ 52,890
Other comprehensive
income (loss),
net of tax - (704) (200) (1,094)
-------- -------- -------- --------
Comprehensive income $ 12,235 $ 11,756 $ 59,911 $ 51,796
======== ======== ======== ========
Income from operations,
exclusive of net
merger recovery $ 12,209 $ 12,434 $ 60,005 $ 50,548
Merger recovery,
net of tax - - - 2,236
-------- -------- -------- --------
Net income available
for common stock $ 12,209 $ 12,434 $ 60,005 $ 52,784
======== ======== ======== ========
Net income per
common share:
Basic $ 0.18 $ 0.19 $ 0.88 $ 0.82
Diluted $ 0.18 $ 0.18 $ 0.87 $ 0.81
Income per common share
from operations,
exclusive of net merger
recovery:
Basic $ 0.18 $ 0.19 $ 0.88 $ 0.78
Diluted $ 0.18 $ 0.18 $ 0.87 $ 0.77
Average common shares
outstanding:
Basic 68,284 66,455 67,873 64,759
======== ======== ======== ========
Diluted 69,159 67,223 68,755 65,414
======== ======== ======== ========
--30--SW/ph* CF/ph
| CONTACT: | Philadelphia Suburban Corporation |
|---|---|
| Keya W. Epps, 610/645-1084 | |
| eppsk@suburbanwater.com | |
| or | |
| Donna Alston, 610/645-1095 | |
| alstond@suburbanwater.com | |