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Mar 31, 2023
Middlesex Water Q1 2023 Earnings Report
Reported a decrease in net income and earnings per share due to a prior year gain on the sale of a subsidiary and increased operating expenses.
Key Takeaways
Middlesex Water Company reported first quarter results with a rise in operating revenues but a decrease in net income and diluted earnings per share compared to the same period in 2022. The decrease in net income was primarily due to a gain on the sale of a subsidiary in the first quarter of 2022. Operating revenues increased due to rate increases and higher contract customer demand.
Consolidated operating revenues increased by $2.0 million to $38.2 million compared to the same period in 2022.
Revenues in the Middlesex System increased by $2.2 million due to rate increases and higher customer demand.
Net income for the quarter decreased by $6.2 million compared to the same period in 2022, which included a $5.2 million pre-tax gain.
Diluted earnings per share were $0.33, compared to $0.68 for the three months ended March 31, 2022.
Forward Guidance
The company faces challenges including rising interest costs, inflation, supply chain issues, and increased regulation, but benefits from strong regulatory compacts.
Positive Outlook
- Strong regulatory compacts in place.
- Recovery of prudent infrastructure investments.
- Recovery of other costs.
- Ensuring reliably sustainable services.
- Ability to recover costs through regulatory mechanisms.
Challenges Ahead
- Rising interest costs.
- Inflation.
- Lingering supply chain challenges.
- Increased regulation.
- Maintaining a stable and well-trained workforce.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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