York Water reports second-quarter earnings, acquisition
The York Water Co. reported an increase in its second-quarter and first six months earnings for 2014, as well as the recent acquisition of a water system.
The company, based in York, had net income of just under $2.8 million, an increase of $415,000 over the same quarter last year, according to a news release from the company. Earnings per share were 22 cents, a 4-cent increase over the prior year. Operating revenues were just under $11.8 million, an increase of about $1 million over the previous quarter.
In the first six months of 2014, York Water had net income of just over $4.8 million, an increase of $387,000 compared to the first six months of 2013. Earnings per share of 38 cents for the six-month period increased $0.03 compared to the same period last year. The company had operating revenues of about $22.3 million, an increase of about $1.5 million over last year.
The higher revenues are attributed to a rate increase that went into effect Feb. 28, as well as growth in the water and wastewater customer base, according to the release. However, the revenues were partially offset by higher expenses for wages, pensions and distribution system maintenance brought on by cold weather.
On May 21, the company signed an agreement to buy the water assets of Paradise Homes Community, a mobile home park on Lake Road in Paradise Township, York County, according to the release. Completion of this acquisition is contingent upon receiving approval from all required regulatory authorities.
The exact sale price will not be disclosed until the sale is approved, said Kathleen Miller, York Water’s CFO. The company expects to begin serving about 90 new customers through a connection with its current distribution system in the fourth quarter.
York Water said it spent $313,000 in the acquisition of water and wastewater facilities and plans to spend an additional $5 million in 2014, excluding acquisitions, for improvements to its pipes, filtration system, facilities and dams.
During the first half of the year, York Water invested $5.1 million in construction expenditures for expansion of its service territory, upgrades to water treatment facilities, replacement of a portion of its infrastructure and other routine items, according to the release.