Aqua America Inc. (WTR, Financial) filed Quarterly Report for the period ended 2009-06-30.
Aqua America is the largest publicly-traded U.S.-based water utility serving residents in Pennsylvania Ohio Illinois Texas New Jersey Indiana Virginia Florida North Carolina Maine Missouri New York South Carolina and Kentucky. The company has been committed to the preservation and improvement of the environment throughout its history which spans more than 100 years. Aqua America Inc. has a market cap of $2.41 billion; its shares were traded at around $17.78 with a P/E ratio of 23.4 and P/S ratio of 4. The dividend yield of Aqua America Inc. stocks is 3%. Aqua America Inc. had an annual average earning growth of 7.9% over the past 10 years. GuruFocus rated Aqua America Inc. the business predictability rank of 5-star.
Revenues for the first six months increased $31,786 or 11.0% primarily due to additional revenues associated with increased water and wastewater rates of $33,462 and additional wastewater and water revenues of $2,702 associated with a larger customer base due to acquisitions, offset partially by the loss of utility revenues of $1,391 associated with utility systems sold, and decreased water consumption as compared to the first six months of 2008. The decrease in customer water consumption is largely due to unfavorable weather conditions in our service territories during the first half of 2009 that reduced water usage.
Operations and maintenance expenses increased by $6,088 or 4.7% primarily due to increases in water production costs of $2,456, operating costs associated with acquisitions of $1,557, increased insurance and claims expense of $1,087, additional expenses resulting from the write-off of previously deferred expenses related to our rate filing in North Carolina of $996, and normal increases in other operating costs. In addition, pension expense increased as compared to the first six months of 2008, and most of the increased cost is recoverable in rates going forward. Offsetting these increases were the June 2009 gain on the sale of our utility system in Texas of $1,009, decreases in fuel costs for our service vehicles of $952, and reduced expenses of $703 associated with the dispositions of utility systems. The increased water production costs, principally purchased water, power, and chemicals were associated with vendor price increases.
Amortization increased $3,634 primarily due to additional expense of $2,983 resulting from the recovery of our costs associated with our rate filing in Texas and $394 resulting from a rate case adjustment related to our rate filing in North Carolina, as well as the amortization of the costs associated with, and other costs being recovered in, various rate filings.
Revenues for the quarter increased $16,582 or 11.0% primarily due to additional revenues associated with increased water and wastewater rates of $19,456 and additional wastewater and water revenues of $1,396 associated with a larger customer base due to acquisitions, offset partially by the loss of utility revenues of $561 associated with utility systems sold, and decreased water consumption as compared to the second quarter of 2008. The decrease in customer water consumption is largely due to unfavorable weather conditions in our service territories during the second quarter of 2009 that reduced water usage.
Operations and maintenance expenses increased by $3,403 or 5.2% primarily due to increases in water production costs of $1,152, operating costs associated with acquisitions of $847, increased insurance and claims expense of $491, and normal increases in other operating costs. In addition, pension expense increased as compared to the second quarter of 2008, and most of the increased cost is recoverable in rates going forward. Offsetting these increases were the gain on the sale of our utility system in Texas of $1,009, decreases in fuel costs for our service vehicles of $514, and reduced expenses of $297 associated with the dispositions of utility systems. The increased water production costs, principally purchased water, power, and chemicals were associated with vendor price increases.
Read the The complete ReportWTR is in the portfolios of John Keeley of Keeley Fund Management.
Aqua America is the largest publicly-traded U.S.-based water utility serving residents in Pennsylvania Ohio Illinois Texas New Jersey Indiana Virginia Florida North Carolina Maine Missouri New York South Carolina and Kentucky. The company has been committed to the preservation and improvement of the environment throughout its history which spans more than 100 years. Aqua America Inc. has a market cap of $2.41 billion; its shares were traded at around $17.78 with a P/E ratio of 23.4 and P/S ratio of 4. The dividend yield of Aqua America Inc. stocks is 3%. Aqua America Inc. had an annual average earning growth of 7.9% over the past 10 years. GuruFocus rated Aqua America Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
At June 30, 2009, our $95,000 unsecured revolving credit facility, which expires in May 2012, had $18,946 available for borrowing. At June 30, 2009, we had short-term lines of credit of $139,000, of which $41,922 was available. One of our short-term lines of credit is an Aqua Pennsylvania $70,000 364-day unsecured revolving credit facility with two banks. This facility is used to provide working capital and expires in December 2009. In addition, we have $66,500 of short-term lines of credit maturing in August and December 2009.Revenues for the first six months increased $31,786 or 11.0% primarily due to additional revenues associated with increased water and wastewater rates of $33,462 and additional wastewater and water revenues of $2,702 associated with a larger customer base due to acquisitions, offset partially by the loss of utility revenues of $1,391 associated with utility systems sold, and decreased water consumption as compared to the first six months of 2008. The decrease in customer water consumption is largely due to unfavorable weather conditions in our service territories during the first half of 2009 that reduced water usage.
Operations and maintenance expenses increased by $6,088 or 4.7% primarily due to increases in water production costs of $2,456, operating costs associated with acquisitions of $1,557, increased insurance and claims expense of $1,087, additional expenses resulting from the write-off of previously deferred expenses related to our rate filing in North Carolina of $996, and normal increases in other operating costs. In addition, pension expense increased as compared to the first six months of 2008, and most of the increased cost is recoverable in rates going forward. Offsetting these increases were the June 2009 gain on the sale of our utility system in Texas of $1,009, decreases in fuel costs for our service vehicles of $952, and reduced expenses of $703 associated with the dispositions of utility systems. The increased water production costs, principally purchased water, power, and chemicals were associated with vendor price increases.
Amortization increased $3,634 primarily due to additional expense of $2,983 resulting from the recovery of our costs associated with our rate filing in Texas and $394 resulting from a rate case adjustment related to our rate filing in North Carolina, as well as the amortization of the costs associated with, and other costs being recovered in, various rate filings.
Revenues for the quarter increased $16,582 or 11.0% primarily due to additional revenues associated with increased water and wastewater rates of $19,456 and additional wastewater and water revenues of $1,396 associated with a larger customer base due to acquisitions, offset partially by the loss of utility revenues of $561 associated with utility systems sold, and decreased water consumption as compared to the second quarter of 2008. The decrease in customer water consumption is largely due to unfavorable weather conditions in our service territories during the second quarter of 2009 that reduced water usage.
Operations and maintenance expenses increased by $3,403 or 5.2% primarily due to increases in water production costs of $1,152, operating costs associated with acquisitions of $847, increased insurance and claims expense of $491, and normal increases in other operating costs. In addition, pension expense increased as compared to the second quarter of 2008, and most of the increased cost is recoverable in rates going forward. Offsetting these increases were the gain on the sale of our utility system in Texas of $1,009, decreases in fuel costs for our service vehicles of $514, and reduced expenses of $297 associated with the dispositions of utility systems. The increased water production costs, principally purchased water, power, and chemicals were associated with vendor price increases.
Read the The complete ReportWTR is in the portfolios of John Keeley of Keeley Fund Management.
