America reports increased net income for third quarter 2005
Pa.--(BUSINESS WIRE)--Nov. 9, 2005--Aqua America, Inc.
increased 14 percent to $136.8 million for the third quarter of
2005 from $120.3 million in the same period in 2004. The revenue
increase is primarily due to the result of the benefits received
from major rate awards in key states during the third quarter of
2004 and a return to more normal levels of water consumption
over the same period last year. Aqua America Chairman and CEO
Nicholas DeBenedictis said, "The weather during the months
of May to September
For the nine months ended September 30, 2005, operating revenues totaled $373.9 million, an increase of 14 percent from $326.6 million for the nine months ended September 30, 2004. The year-to-date revenue growth was driven by significant rate decisions during the third quarter of 2004 and also positively impacted by the benefits of customer growth due primarily to the larger acquisitions in mid 2004.
Net income for the first nine months of 2005 increased 20 percent to $69.0 million from $57.5 million and corresponding diluted earnings per share increased 16 percent to $0.71 from $0.61 in the same period last year.
"The company's financial performance year-to-date has been
exceptional, aided by the favorable events in mid 2004, namely
the acquisitions of Heater Utilities (North Carolina) and
Florida Water Services (Florida) and significant rate awards in
some of our larger states. These events, supplemented by our
normal growth-through-acquisition and capital investment
On August 2, 2005,
the Board of Directors voted to increase the December 1, 2005
common stock cash dividend to shareholders by 10 percent, which
on an annualized basis is equivalent to a $0.05 increase above
the current annual dividend rate of $0.52 to $0.57 per share.
Additionally, the Board approved, for the sixth time in nine
years, a stock split to be effected in the form of a
four-for-three (33 1/3 percent) stock distribution. The
increased quarterly cash
The company's ratio
of operating and maintenance expenses to revenues (efficiency
ratio) for the third quarter of 2005 was 38.5 percent, an
improvement from 41.3 percent in the second quarter of 2005.
Year-to-date September 30, 2005, the company's efficiency ratio
also improved to 40.4 percent from 40.7 percent for the same
period in 2004. DeBenedictis said, "Our efficiency ratio is
an important measure and an ongoing focus of management. We work
toward continuous improvement of our controllable expenses,
which helps offset expenses
Consistent with Aqua
America's long-term growth-through-acquisition strategy, the
company has completed 28 acquisitions year-to-date in 2005 in
the states in which it operates. DeBenedictis said, "These
small system acquisitions are the bread and butter upon which
our long-term growth strategy was founded. We use
The conference call will be archived in the investor relations section of the company's Web site for 90 days following the call. Additionally, the call will be recorded and made available for replay for 10 business days after the call, beginning at 12:00 p.m. Wednesday, November 9, 2005 through Wednesday, November 23, 2005. To access the audio replay in the U.S., dial (888)-203-1112 (PIN# 4941886). For international callers, dial (719)-457-0820 (PIN# 4941886).
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. Aqua America is listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol WTR.