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Chesapeake Utilities Corp. (CPK) filed Quarterly Report for the period ended 2011-06-30.
Chesapeake Utilities Corp. has a market cap of $367.6 million; its shares were traded at around $38.5 with a P/E ratio of 14.2 and P/S ratio of 0.9. The dividend yield of Chesapeake Utilities Corp. stocks is 3.6%. Chesapeake Utilities Corp. had an annual average earning growth of 3.8% over the past 10 years.
This is the annual revenues and earnings per share of CPK over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CPK.
Highlight of Business Operations:
Our net income for the quarter ended June 30, 2011 was $3.5 million, or $0.37 per share (diluted). This represents an increase of $180,000, or $0.02 per share (diluted), compared to a net income of $3.3 million, or $0.35 per share (diluted), as reported in the same period in 2010.
Eastern Shore, our natural gas transmission subsidiary, generated gross margin of $542,000 in the second quarter of 2011 from new transportation services associated with its eight-mile mainline extension to interconnect with TETLP’s pipeline system. These services commenced in January 2011 and have a three-year phase-in from 19,324 Mcfs per day to 38,647 Mcfs per day, and an estimated gross margin of $2.4 million in 2011, $3.9 million in 2012 and $4.3 million annually thereafter.
14 large commercial and industrial customers added by the Delmarva natural gas operation since July 2010 generated $261,000 in additional gross margin during the second quarter of 2011. These new customers are expected to generate annual margin of $1.1 million in 2011, compared to $196,000 of gross margin generated from these customers in 2010. Also generating additional gross margin of $105,000 for the second quarter of 2011 was a three-percent growth in residential customers for the Delmarva natural gas distribution operation.
Advanced Information Services. BravePoint, our advanced information services subsidiary, reported $188,000 in operating loss in the second quarter of 2011, compared to operating income of $230,000 reported in the same quarter in 2010. BravePoint’s operating results in the second quarter of 2011 reflect approximately $341,000 in additional costs associated with the initial roll-out and implementation of a new product, ProfitZoom™. BravePoint completed the first successful implementation of ProfitZoom™ in July 2011. At present, BravePoint has three customers, which have implemented, or are in the process of implementing, this new product and has several outstanding sales proposals under consideration by other customers. ProfitZoom™ is an integrated system designed specifically for the fire protection and specialty contracting industries, which includes a comprehensive suite of financial, job costing and service management modules, and is a successor product to another software solution that BravePoint previously marketed and supported for companies in the fire suppression industry. Understanding the needs of the industry and utilizing its technology expertise, BravePoint began developing the ProfitZoom™ product in 2009.
Other Operating Expenses. Our other operating expenses increased by $2.5 million in the second quarter of 2011, compared to the same quarter in 2010. Included in this increase are $808,000 in non-recurring charges incurred during the second quarter of 2011, which were comprised of $259,000 in additional marketing and development costs of ProfitZoom™, and $549,000 in one-time charges in May 2011 associated with the voluntary workforce reduction of 31 employees in Florida as we continue to integrate our Florida operations. The voluntary workforce reduction in Florida is expected to generate $500,000 in cost savings in 2011 and $800,000 in annual savings thereafter.
Operating income for the regulated energy segment decreased by approximately $445,000, or five percent, in the second quarter of 2011, compared to the same quarter in 2010. An increase in gross margin of $1.3 million, offset by an increase in other operating expense of $1.8 million, resulted in the decrease in operating income.
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