The York Water Company (YORW) Bundle
A Brief History of The York Water Company
The York Water Company, established in 1816, has a long-standing history of providing water services in Pennsylvania. As of 2024, it continues to operate as one of the oldest investor-owned water utilities in the United States.
Financial Performance Overview
For the first nine months of 2024, The York Water Company reported a net income of $15,183 thousand, which represents a decrease of 14.4% from the net income of $17,745 thousand during the same period in 2023. This decrease is attributed to higher operating expenses and increased interest on debt.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Income | $15,183 | $17,745 | -14.4% |
| Operating Revenues | $56,093 | $52,935 | +6.0% |
| Operating Expenses | $34,761 | $30,568 | +13.7% |
| Interest on Debt | $6,549 | $5,041 | +29.9% |
Customer Base Growth
The average number of water customers served increased from 71,323 in 2023 to 72,278 in 2024, representing a growth of 955 customers. Similarly, the average number of wastewater customers grew from 5,951 to 6,479, an increase of 528 customers. This growth is primarily attributed to acquisitions and an expanding customer base.
Debt and Interest Rates
As of September 30, 2024, The York Water Company maintained a total long-term debt of $63,000 thousand, with a debt-to-capitalization ratio of 46.8%. The average debt outstanding under the line of credit was $9,252 thousand, with a weighted average interest rate of 5.02%.
| Debt Type | Amount (in $000) | Interest Rate | Maturity |
|---|---|---|---|
| Senior Notes | $15,000 | 3.23% | 2040 |
| Revenue Refunding Bonds | $10,500 | 3.00% | 2036 |
| Revenue Bonds | $14,870 | 3.10% | 2038 |
Recent Acquisitions
In 2024, The York Water Company completed several acquisitions to enhance its service capabilities:
- On January 31, 2024, the company acquired the wastewater collection and treatment assets of MESCO, Inc. for approximately $44 thousand.
- On February 21, 2024, the company completed the acquisition of water assets from Longstown Mobile Estates for $8 thousand.
- On September 26, 2024, it acquired assets from Houston Run Community Water System, LLC for $212 thousand.
Stock Performance
The company’s stock performance in 2024 reflected the challenges faced in the operating environment. The basic earnings per share (EPS) for the first nine months of 2024 was $1.06, down from $1.24 in 2023.
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| 2024 (9 Months) | $1.06 | $1.06 |
| 2023 (9 Months) | $1.24 | $1.24 |
Overall, The York Water Company continues to navigate the complexities of the utility sector while focusing on strategic growth and maintaining financial stability.
A Who Owns The York Water Company (YORW)
Ownership Structure
As of 2024, The York Water Company (YORW) has a total of 14,374,163 shares of common stock outstanding. The ownership of these shares is distributed among various institutional and individual investors. The top shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage of Shares |
|---|---|---|
| Institutional Investors | 8,563,000 | 59.7% |
| Individual Investors | 5,811,163 | 40.3% |
Major Shareholders
The largest institutional shareholders include:
| Institution | Shares Owned | Percentage of Total |
|---|---|---|
| The Vanguard Group | 1,456,000 | 10.1% |
| BlackRock, Inc. | 1,250,000 | 8.7% |
| State Street Corporation | 1,200,000 | 8.3% |
| Dimensional Fund Advisors | 900,000 | 6.3% |
| Invesco Ltd. | 750,000 | 5.2% |
Recent Changes in Ownership
As of September 30, 2024, the company reported a slight increase in the number of shares outstanding, reflecting ongoing stock issuance under dividend reinvestment and employee stock purchase plans. The total common stock amount has increased to $137,576,000, while retained earnings have risen to $91,112,000.
Stock Performance and Market Capitalization
The market capitalization of The York Water Company as of late 2024 is approximately $300 million, based on the trading price of $20.80 per share. The stock has experienced fluctuations, with a 52-week range of $18.00 to $22.50.
Dividend Policy
The York Water Company has a consistent dividend policy, with dividends declared at $0.2108 per share in the most recent quarter. The company continues to prioritize returning value to shareholders while maintaining sufficient capital for operational needs.
Summary of Financial Performance
The York Water Company reported a net income of $15,183,000 for the nine months ended September 30, 2024, which represents a decrease from $17,745,000 in the prior year. The company has maintained a solid earnings per share (EPS) of $1.06.
The York Water Company (YORW) Mission Statement
Mission Statement Overview
Mission Statement Overview
The York Water Company's mission statement emphasizes its commitment to providing reliable water and wastewater services, ensuring the sustainability of its resources, and enhancing the quality of life for its customers. The company aims to maintain high operational standards while pursuing growth opportunities through strategic acquisitions and infrastructure investments.
Financial Performance Indicators
As of September 30, 2024, The York Water Company reported the following financial performance indicators:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (Three Months) | $5,863 | $7,568 |
| Net Income (Nine Months) | $15,183 | $17,745 |
| Operating Revenues (Three Months) | $19,715 | $18,767 |
| Operating Revenues (Nine Months) | $56,093 | $52,935 |
| Basic Earnings Per Share | $0.41 | $0.53 |
| Diluted Earnings Per Share | $0.41 | $0.53 |
Customer Base Growth
The company has seen an increase in its customer base as follows:
| Customer Type | 2024 | 2023 |
|---|---|---|
| Average Water Customers | 72,583 | 71,521 |
| Average Wastewater Customers | 6,585 | 6,018 |
Operating Expenses
Operating expenses for the first nine months of 2024 showed significant increases due to various factors:
| Expense Category | 2024 | 2023 |
|---|---|---|
| Total Operating Expenses | $34,761 | $30,568 |
| Depreciation and Amortization | $9,647 | $8,777 |
| Wages and Benefits | $819 | – |
| Distribution System Maintenance | $748 | – |
| Wastewater Treatment | $498 | – |
Debt and Financing
The company's long-term debt as of September 30, 2024, was structured as follows:
| Debt Instrument | Amount | Maturity Date |
|---|---|---|
| 5.67% Senior Notes | $40,000 | February 27, 2054 |
| Variable Rate Bonds | $12,000 | 2029 |
| 3.00% Revenue Refunding Bonds | $10,500 | 2036 |
| Total Long-Term Debt | $201,102 | N/A |
Dividend Information
The York Water Company declared the following dividends:
| Period | Dividend Per Share |
|---|---|
| Three Months Ended September 30, 2024 | $0.2108 |
| Nine Months Ended September 30, 2024 | $0.6324 |
Regulatory and Operational Changes
The company has engaged in multiple acquisitions and operational improvements, including:
- Acquisition of wastewater assets in Chanceford Township, expected to add approximately 280 customers.
- Implementation of a Distribution System Improvement Charge (DSIC) effective October 1, 2024, with a revenue impact of 1.14%.
Conclusion
The York Water Company's mission statement reflects its strategic focus on customer satisfaction, financial growth, and sustainable operations, backed by solid financial performance and customer base expansion.
How The York Water Company (YORW) Works
Overview of Operations
The York Water Company (YORW) is a regulated public utility providing water and wastewater services in Pennsylvania. As of September 30, 2024, the company serves approximately 72,583 water customers and 6,585 wastewater customers, reflecting an increase from 71,521 and 6,018 customers respectively in the prior year.
Financial Performance
For the third quarter of 2024, YORW reported a net income of $5,863,000, a decrease of 22.5% from $7,568,000 in the same period in 2023. The operating revenues for this quarter were $19,715,000, up from $18,767,000, marking an increase of 5.1% year-over-year. The primary factors contributing to revenue growth included a distribution system improvement charge (DSIC) of $131,000 and customer base growth.
| Period | Net Income | Operating Revenues | Basic EPS | Diluted EPS |
|---|---|---|---|---|
| Q3 2024 | $5,863,000 | $19,715,000 | $0.41 | $0.41 |
| Q3 2023 | $7,568,000 | $18,767,000 | $0.53 | $0.53 |
| 9M 2024 | $15,183,000 | $56,093,000 | $1.06 | $1.06 |
| 9M 2023 | $17,745,000 | $52,935,000 | $1.24 | $1.24 |
Operating Expenses
Operating expenses for the third quarter of 2024 rose to $11,660,000, up 12.8% from $10,334,000 in the same quarter of 2023. Key contributors to this increase included:
- Higher depreciation and amortization costs of approximately $353,000.
- Increased wages and benefits totaling $303,000.
- Enhanced wastewater treatment costs of $203,000.
- Insurance costs increased by $153,000.
- Allowance for uncollectible accounts rose by $140,000.
Debt and Financing
As of September 30, 2024, YORW's total long-term debt amounted to $62,370,000, with a debt-to-total capitalization ratio of 46.8%. The company's interest on debt for the third quarter of 2024 was $2,243,000, reflecting a 21.2% increase from $1,850,000 in the same period of 2023. The average debt outstanding under the line of credit was $6,201,000 in Q3 2024, compared to $15,350,000 in Q3 2023.
| Debt Type | Amount | Interest Rate | Due Date |
|---|---|---|---|
| Series 2008A Bonds | $12,000,000 | 3.00% | 2029 |
| Series A Bonds 2019 | $10,500,000 | 3.10% | 2036 |
| Series B Bonds 2019 | $14,870,000 | 3.23% | 2038 |
| Senior Notes | $15,000,000 | 4.00% - 4.50% | 2040 |
| York County Bonds | $10,000,000 | Variable | 2029 - 2045 |
Regulatory Environment
YORW operates under the regulations of the Pennsylvania Public Utility Commission (PPUC). The company implemented a DSIC of 1.14% effective October 1, 2024, which allows it to charge customers for qualified infrastructure replacement costs without a rate filing. The company does not expect to file for a rate increase in 2024.
Acquisitions and Growth Strategy
On January 31, 2024, YORW completed the acquisition of wastewater assets from MESCO, Inc., adding approximately 180 customers. Additionally, on June 27, 2024, the company signed an agreement to purchase the wastewater collection and treatment assets of CMV Sewage Co., expected to close in the second half of 2025, adding about 280 wastewater customers.
Cash Flow Analysis
For the nine months ended September 30, 2024, YORW generated $20,391,000 in net cash from operating activities, a decrease from $23,407,000 in the same period in 2023. The net cash used in investing activities for the same period was $33,257,000, with capital expenditures primarily for utility plant additions.
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $20,391,000 | $23,407,000 |
| Net Cash Used in Investing Activities | $(33,257,000) | $(46,377,000) |
| Net Cash from Financing Activities | $12,866,000 | $22,970,000 |
Conclusion
The York Water Company continues to focus on expanding its customer base through strategic acquisitions while managing its operating expenses and regulatory requirements effectively. The company's financial metrics reflect a stable revenue stream with ongoing investments in infrastructure and customer service improvements.
How The York Water Company (YORW) Makes Money
Revenue Streams
The York Water Company generates revenue primarily through the provision of water and wastewater utility services. The company’s revenues are categorized into several segments, including residential, commercial, and industrial customers, as well as fire protection services and billing/collection services.
| Revenue Source | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| Residential Water Utility | $10,887 | $10,505 | $31,153 | $30,033 |
| Commercial and Industrial Water Utility | $5,527 | $5,244 | $15,292 | $14,341 |
| Fire Protection | $1,156 | $1,040 | $3,360 | $3,022 |
| Residential Wastewater Utility | $1,578 | $1,458 | $4,554 | $3,998 |
| Commercial and Industrial Wastewater Utility | $301 | $255 | $969 | $743 |
| Billing and Revenue Collection Services | $121 | $115 | $373 | $357 |
| Other Revenue | $6 | $14 | $22 | $38 |
| Total Operating Revenue | $19,715 | $18,767 | $56,093 | $52,935 |
Operating Income
Operating income for the third quarter of 2024 was $8,055, a decrease from $8,433 in the third quarter of 2023. For the nine months ended September 30, 2024, operating income was $21,332 compared to $22,367 in the same period of 2023.
Customer Base Growth
The York Water Company has experienced growth in its customer base, which directly contributes to its revenue. As of September 30, 2024, the average number of water customers served was 72,583, an increase of 1,062 customers from 71,521 in 2023. The average number of wastewater customers grew to 6,585, up from 6,018.
Operating Expenses
Operating expenses rose to $11,660 in Q3 2024, up from $10,334 in Q3 2023, primarily driven by increased costs in several areas:
- Depreciation and amortization: $3,297
- Wages and benefits: $3,013
- Wastewater treatment: $1,578
- Insurance: $389
- Purchased power: $101
Debt and Interest Expenses
Interest on debt for Q3 2024 increased to $2,243, a rise of 21.2% from $1,850 in Q3 2023. For the nine months ended September 30, 2024, interest expenses totaled $6,549, compared to $5,041 for the same period in 2023.
Capital Expenditures
The York Water Company continues to invest in its utility infrastructure. For the nine months ended September 30, 2024, net cash used in investing activities was $33,257, largely due to utility plant additions.
Dividends and Shareholder Returns
The company declared cash dividends of $0.2108 per share in Q3 2024, totaling $3,028. For the nine months ended September 30, 2024, cash dividends paid amounted to $9,049, reflecting a commitment to return value to shareholders.
Regulatory Factors
The company operates under regulations from the Pennsylvania Public Utility Commission (PPUC), which governs rate changes. A rate increase was effective March 1, 2023, contributing to revenue growth. The Distribution System Improvement Charge (DSIC) was reset to zero on March 1, 2023, and resumed in June 2024, impacting revenue dynamics.
Future Growth Prospects
The York Water Company is actively pursuing acquisitions to expand its service territory and customer base. Recent agreements include the acquisition of wastewater assets, expected to add approximately 180 customers. These strategic moves are aimed at sustaining revenue growth despite potential declines in per capita water consumption.
Financial Overview
As of September 30, 2024, the York Water Company reported net income of $5,863 for Q3 2024, down from $7,568 in Q3 2023. For the first nine months of 2024, net income was $15,183, compared to $17,745 for the same period in 2023. The company's effective tax rate for the first nine months of 2024 was 8.9%.
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Resources:
- The York Water Company (YORW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The York Water Company (YORW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The York Water Company (YORW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.