The York Water Co (YORW) Reports Increased Earnings for Q3 and First Nine Months of 2023
Third quarter operating revenues of $18,767,000, an increase of $2,956,000 from Q3 2022
Net income of $7,568,000 for Q3, up by $1,887,000 from the same period last year
Operating revenues for the first nine months of 2023 reached $52,935,000, a rise of $7,985,000 from 2022
Net income for the first nine months of 2023 was $17,745,000, an increase of $3,176,000 from the previous year
On November 3, 2023, The York Water Co (NASDAQ:YORW) released its financial results for the third quarter and the first nine months of 2023. The company reported significant growth in both operating revenues and net income compared to the same periods in 2022.
Financial Performance
The York Water Co (NASDAQ:YORW) reported third quarter operating revenues of $18,767,000, an increase of $2,956,000 compared to the third quarter of 2022. Net income for the quarter was $7,568,000, up by $1,887,000 from the same period last year. Basic and Diluted Earnings per share for the three-month period increased $0.13 compared to the same period last year.
The company also reported that the first nine months operating revenues of $52,935,000 increased $7,985,000 and net income of $17,745,000 increased $3,176,000 compared to the first nine months of 2022. Basic and Diluted Earnings per share of $1.24 for the nine-month period increased $0.19 compared to the same period last year.
Key Factors Driving Performance
The increased revenues were primarily due to an increase in rates effective March 1, 2023, partially offset by a reset to zero of the Distribution System Improvement Charge (DSIC). Growth in the customer base also added to revenues. However, the increased revenue was partially offset by higher operation and maintenance expenses and depreciation.
Capital Investments
During the first nine months of 2023, the company invested $46.3 million in capital projects for armoring and replacing the spillway of the Lake Williams dam, wastewater treatment plant construction, and routine items, as well as various replacements and improvements to infrastructure. In October 2023, the company invested $566,000 in the acquisition of the Conewago Industrial Park Water and Sewer Company water assets and wastewater collection and treatment assets. The company estimates it will invest an additional $16 million in 2023, excluding acquisitions, for various improvements and extensions.
Financial Table Summary
The financial table provided in the earnings report shows a clear upward trend in both operating revenues and net income for the quarter and nine months ended September 30, 2023, compared to the same periods in 2022. The average number of common shares outstanding also increased, while the dividends declared per common share saw a slight rise.
Explore the complete 8-K earnings release (here) from The York Water Co for further details.
This article first appeared on GuruFocus.
