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Aqua America Nets $24.1 Million for Third Quarter
"BRYN MAWR, Pa. -- Customer growth and rate awards in key states are the primary factors that resulted in increased operating revenues, operating income and net income in the third quarter at Aqua America Inc. despite rainy and stormy weather during the third quarter, officials reported yesterday.Aqua America, through its Ohio division, has operations in the Mahoning Valley.Third quarter operating revenues grew 17.8% to $120.3 million from the same quarter in 2003 as a direct result of customer growth from recent acquisitions and increased rates in many of the states where the company operates, according to Nicholas DeBenedictis, chairman. Operating income was up 10.1% to $51 million. "Considering the severe weather we experienced in our mid-Atlantic and Southern states, we are very pleased with our results," DeBenedictis said. "Traditionally, it is the third quarter during which weather can have an incremental impact of as much as 10% up or down on earnings. In southeastern Pennsylvania, where more than 335,000 water customers are concentrated, rainfall during the summer months of June, July and August averaged 50% above normal. The one piece of good news resulting from the excessive rain however, is all of our company reservoirs in the area are full and ready for next year." Net income increased 2% to $24.1 million from $23.6 million for the same quarter of 2003. Corresponding net income per diluted share was 26 cents for the quarter, the same as in the third quarter of last year. Operating revenues for the nine months ended Sep. 30 increased 22.8% to $326.6 million.Net income for the nine months of this year increased 10.2% to $57.5 million from the same period in 2003. The impact of the extraordinary rainfall in parts of its service territory was offset by customer growth and rate awards. "Increased revenue was due to the addition of our newly-acquired Heater Utilities system in North Carolina purchased in June 2004, our AquaSource properties acquired in August 2003, and former Florida Water Services customers acquired in June 2004," said DeBenedictis. Further supplementing customer growth were seven "tuck-in" acquisitions completed by Aqua America subsidiaries during the third quarter, 22 in total since January. "So far this year we're averaging more than a half dozen tuck-ins per quarter, which is a nice complement to the three larger acquisitions we completed since last summer," DeBenedictis said. "This has been a very busy year for rate awards," he continued. "We've already received rate awards in Pennsylvania, Illinois, Ohio, New Jersey, and other states totaling approximately $20 million in annualized revenue. In addition, the company's infrastructure improvement charges have added $1.7 million in incremental revenue in 2004. Three other rate filings, which collectively represent approximately $16.7 million in annualized revenue are in process in North Carolina, Illinois and Texas. In Texas, regulations have allowed us to implement the increase in August 2004 pending an adjustment at the conclusion of the case." Aqua America Inc. is the largest U.S.-based publicly-traded water utility, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina.Visit Aqua America Inc.: www.aquaamerica.com"