York Water Company (YORW, Financial) filed Quarterly Report for the period ended 2010-03-31.
York Water Company has a market cap of $169.6 million; its shares were traded at around $13.49 with a P/E ratio of 21.1 and P/S ratio of 4.5. The dividend yield of York Water Company stocks is 3.9%. York Water Company had an annual average earning growth of 5.9% over the past 10 years. GuruFocus rated York Water Company the business predictability rank of 3-star.
Interest expense on debt for the first quarter of 2010 decreased $68, or 5.4%, from $1,271 for the first quarter of 2009 to $1,203 for the corresponding 2010 period. The primary reasons for the decrease were lower interest of $35 on the $12,000 variable rate bonds due to reduced interest rates and lower interest payments of $24 due to retirement of the 3.60% Industrial Development Authority Revenue Refunding Bonds, Series 1994, in May of 2009. Interest on the Company s lines of credit decreased by $9 due to reduced borrowings. The average interest rate on the lines of credit was 1.87% for the quarter ended March 31, 2010 compared to 1.26% for the quarter ended March 31, 2009. The average debt outstanding under the lines of credit was $7,445 for the first quarter of 2010 and $16,899 for the first quarter of 2009.
Allowance for funds used during construction decreased $89, from $98 in the first quarter of 2009 to $9 in the 2010 period, due to a planned lower volume of eligible construction. Eligible 2009 construction expenditures included a main extension to West Manheim Township.
Other expenses, net for the first quarter of 2010 decreased by $65 as compared to the same period of 2009. The decrease was primarily due to lower retirement expense of $49 and reduced charitable contributions of $24. Other expenses aggregating approximately $8 offset the reduction.
Historically, the Company has borrowed $15,000 to $20,000 under its lines of credit before refinancing with long-term debt or equity capital. As of March 31, 2010, the Company maintained unsecured lines of credit aggregating $33,000 with three banks. One line of credit includes a $4,000 portion which is payable upon demand and carries an interest rate of LIBOR plus 2.00%, and a $13,000 committed portion with a revolving 2-year maturity (currently May 2011), which currently carries an interest rate of LIBOR plus 2.00%. The Company had $1,269 in outstanding borrowings under the committed portion and no on-demand borrowings under this line of credit as of March 31, 2010. The Company expects to extend the due date of this line to May 2012. The second line of credit, in the amount of $11,000, is a committed line of credit, which matures in May 2010 and carries an interest rate of LIBOR plus 1.50%. This line of credit has a compensating balance requirement of $500. The Company had $3,000 in outstanding borrowings under this line of credit as of March 31, 2010. The Company currently expects to renew this line of credit under similar terms and conditions. The third line of credit, in the amount of $5,000, is a committed line of credit, which matured in April 2010 and carries an interest rate of LIBOR plus 2.00%. The Company had $2,000 in outstanding borrowings under this line of credit as of March 31, 2010. This line of credit was renewed through June 2011 under similar terms and conditions. The weighted average interest rate on line of credit borrowings as of March 31, 2010 was 1.84% compared to 1.44% as of March 31, 2009.
The Company's operations are exposed to market risks primarily as a result of changes in interest rates under its lines of credit. The Company has unsecured lines of credit with three banks having a combined maximum availability of $33,000. One line of credit includes a $4,000 portion, which is payable upon demand and carries an interest rate of LIBOR plus 2.00%, and a $13,000 committed portion with a revolving 2-year maturity (currently May 2011), which currently carries an interest rate of LIBOR plus 2.00%. The Company had $1,269 in outstanding borrowings under the committed portion and no on-demand borrowings under this line of credit as of March 31, 2010. The second line of credit, in the amount of $11,000, is a committed line of credit, which matures in May 2010 and carries an interest rate of LIBOR plus 1.50%. This line of credit has a compensating balance requirement of $500 (see Note 10 to the financial statements included herein). The Company had $3,000 in outstanding borrowings under this line of credit as of March 31, 2010. The third line of credit, in the amount of $5,000, is a committed line of credit, which matured in April 2010 and carries an interest rate of LIBOR plus 2.00%. The Company had $2,000 in outstanding borrowings under this line of credit as of March 31, 2010. This line of credit was renewed through June 2011 under similar terms and conditions. The weighted average interest rate on line of credit borrowings as of March 31, 2010 was 1.84%. Other than lines of credit, the Company has long-term fixed rate debt obligations as discussed in Note 8 to the financial statements included herein and a variable rate Pennsylvania Economic Development Financing Authority (PEDFA) loan agreement described below.
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York Water Company has a market cap of $169.6 million; its shares were traded at around $13.49 with a P/E ratio of 21.1 and P/S ratio of 4.5. The dividend yield of York Water Company stocks is 3.9%. York Water Company had an annual average earning growth of 5.9% over the past 10 years. GuruFocus rated York Water Company the business predictability rank of 3-star.
Highlight of Business Operations:
Operating expenses for the first quarter of 2010 decreased $262, or 5.2%, from $5,003 for the first quarter of 2009 to $4,741 for the corresponding 2010 period. The decrease was primarily due to lower salary and wage expense of approximately $269. This was mainly a result of the vacation accrual recorded last year. Increased capitalized overhead, reduced pension cost, lower distribution system maintenance expense, reduced legal fees and other expenses aggregating approximately $119 also added to the reduction of expenses. Higher depreciation expense due to increased plant investment, increased power costs and higher capital stock tax aggregating approximately $126 partially offset the decrease. For the remainder of the year, depreciation expense is expected to continue to rise due to investment in plant, and other operating expenses are expected to increase at a moderate rate as costs to serve customers and to extend our distribution system continue to rise.Interest expense on debt for the first quarter of 2010 decreased $68, or 5.4%, from $1,271 for the first quarter of 2009 to $1,203 for the corresponding 2010 period. The primary reasons for the decrease were lower interest of $35 on the $12,000 variable rate bonds due to reduced interest rates and lower interest payments of $24 due to retirement of the 3.60% Industrial Development Authority Revenue Refunding Bonds, Series 1994, in May of 2009. Interest on the Company s lines of credit decreased by $9 due to reduced borrowings. The average interest rate on the lines of credit was 1.87% for the quarter ended March 31, 2010 compared to 1.26% for the quarter ended March 31, 2009. The average debt outstanding under the lines of credit was $7,445 for the first quarter of 2010 and $16,899 for the first quarter of 2009.
Allowance for funds used during construction decreased $89, from $98 in the first quarter of 2009 to $9 in the 2010 period, due to a planned lower volume of eligible construction. Eligible 2009 construction expenditures included a main extension to West Manheim Township.
Other expenses, net for the first quarter of 2010 decreased by $65 as compared to the same period of 2009. The decrease was primarily due to lower retirement expense of $49 and reduced charitable contributions of $24. Other expenses aggregating approximately $8 offset the reduction.
Historically, the Company has borrowed $15,000 to $20,000 under its lines of credit before refinancing with long-term debt or equity capital. As of March 31, 2010, the Company maintained unsecured lines of credit aggregating $33,000 with three banks. One line of credit includes a $4,000 portion which is payable upon demand and carries an interest rate of LIBOR plus 2.00%, and a $13,000 committed portion with a revolving 2-year maturity (currently May 2011), which currently carries an interest rate of LIBOR plus 2.00%. The Company had $1,269 in outstanding borrowings under the committed portion and no on-demand borrowings under this line of credit as of March 31, 2010. The Company expects to extend the due date of this line to May 2012. The second line of credit, in the amount of $11,000, is a committed line of credit, which matures in May 2010 and carries an interest rate of LIBOR plus 1.50%. This line of credit has a compensating balance requirement of $500. The Company had $3,000 in outstanding borrowings under this line of credit as of March 31, 2010. The Company currently expects to renew this line of credit under similar terms and conditions. The third line of credit, in the amount of $5,000, is a committed line of credit, which matured in April 2010 and carries an interest rate of LIBOR plus 2.00%. The Company had $2,000 in outstanding borrowings under this line of credit as of March 31, 2010. This line of credit was renewed through June 2011 under similar terms and conditions. The weighted average interest rate on line of credit borrowings as of March 31, 2010 was 1.84% compared to 1.44% as of March 31, 2009.
The Company's operations are exposed to market risks primarily as a result of changes in interest rates under its lines of credit. The Company has unsecured lines of credit with three banks having a combined maximum availability of $33,000. One line of credit includes a $4,000 portion, which is payable upon demand and carries an interest rate of LIBOR plus 2.00%, and a $13,000 committed portion with a revolving 2-year maturity (currently May 2011), which currently carries an interest rate of LIBOR plus 2.00%. The Company had $1,269 in outstanding borrowings under the committed portion and no on-demand borrowings under this line of credit as of March 31, 2010. The second line of credit, in the amount of $11,000, is a committed line of credit, which matures in May 2010 and carries an interest rate of LIBOR plus 1.50%. This line of credit has a compensating balance requirement of $500 (see Note 10 to the financial statements included herein). The Company had $3,000 in outstanding borrowings under this line of credit as of March 31, 2010. The third line of credit, in the amount of $5,000, is a committed line of credit, which matured in April 2010 and carries an interest rate of LIBOR plus 2.00%. The Company had $2,000 in outstanding borrowings under this line of credit as of March 31, 2010. This line of credit was renewed through June 2011 under similar terms and conditions. The weighted average interest rate on line of credit borrowings as of March 31, 2010 was 1.84%. Other than lines of credit, the Company has long-term fixed rate debt obligations as discussed in Note 8 to the financial statements included herein and a variable rate Pennsylvania Economic Development Financing Authority (PEDFA) loan agreement described below.
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