Middlesex Water Company (MSEX) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues rose to $55.1 million, up $8.4 million year-over-year, driven by base rate increases and higher customer demand in New Jersey and Delaware.

• Net income for Q3 2024 was $14.3 million, a 43% increase from $10.0 million in Q3 2023, reflecting higher revenues and improved cost recovery.

• Diluted EPS rose 42.9% to $0.80 for Q3 2024, with year-to-date EPS at $1.98.

• Dividend increased by 4.62%, marking the 52nd consecutive annual increase.

• Regulatory approval for a $15.4 million annual base rate increase effective March 2024, with additional filings for surcharges and rate adjustments in Q3 and Q4 2024.

Financial highlights

• Q3 2024 operating revenues: $55.1 million (Q3 2023: $46.7 million); nine months YTD: $144.8 million (2023: $127.7 million).

• Q3 2024 net income: $14.3 million (Q3 2023: $10.0 million); nine months YTD: $35.5 million (2023: $25.8 million).

• Diluted EPS for Q3 2024: $0.80 (Q3 2023: $0.56); nine months YTD: $1.98 (2023: $1.44).

• Operating income for Q3 2024: $17.5 million (Q3 2023: $12.8 million); nine months YTD: $42.7 million (2023: $31.0 million).

• Cash flows from operations for nine months ended September 30, 2024: $37.3 million, down $2.7 million year-over-year due to timing of settlement recoveries and higher receivables.

Outlook and guidance

• Ongoing investments in system infrastructure and rising operating costs are expected to require a base rate increase filing in 2025.

• Filed for additional rate increases and surcharges in New Jersey and Delaware to recover infrastructure and regulatory costs.

• Customer growth in Delaware continues at 4% annually, but economic conditions may challenge future growth.

• Focus on timely cost recovery, prudent acquisitions, and expanding contract operations for profitable growth.