Middlesex Water Company (MSEX) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income rose to $10.5M, up 6.5% year-over-year, and revenues increased to $49.1M, a 14.8% rise, driven by approved rate increases, customer growth, and infrastructure investments.

• Regulatory approvals in New Jersey and Delaware enabled significant increases in annual operating revenues and recovery of infrastructure costs.

• The company continues to invest in system upgrades, lead service line replacements, and compliance with new PFAS regulations.

• Dividend of $0.325 per share declared, payable in September 2024, continuing a 51-year streak of annual increases.

• One-time recovery of $6.4M in previously incurred costs related to Park Avenue Wellfield water treatment facilities.

Financial highlights

• Q2 2024 operating revenues rose to $49.1M from $42.8M year-over-year; net income increased to $10.5M from $9.9M.

• Six-month revenues reached $89.7M, up from $81.0M; net income was $21.2M, up from $15.8M year-over-year.

• Diluted EPS for Q2 was $0.59 (vs. $0.55); for six months, $1.18 (vs. $0.88) year-over-year.

• Operating income for Q2 was $15.3M, up from $10.7M; for six months, $25.2M, up from $18.2M year-over-year.

• Cash flows from operations for six months were $17.9M, down from $29.3M, mainly due to settlement timing and higher interest payments.

Outlook and guidance

• Continued focus on infrastructure investment, cost management, and customer growth to drive profitability.

• Delaware general rate case expected to be filed in Q3 2024 to support infrastructure resiliency.

• Ongoing compliance efforts for new PFAS regulations and lead service line replacements.