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Dec 31, 2019
Essential Utilities Q4 2019 Earnings Report
Essential Utilities reported an increase in revenue and net income for Q4 2019.
Key Takeaways
Essential Utilities reported Q4 2019 revenues of $226.0 million, a 9.9% increase compared to Q4 2018. Net income for Q4 2019 was $64.2 million, or $0.28 per share, compared to a net loss of $3.7 million, or $0.02 per share, for Q4 2018. Excluding the impact of the Peoples transaction, adjusted income for Q4 2019 was $61.4 million, or $0.34 per share, compared to $55.2 million, or $0.31 per share, in 2018.
Revenues increased to $226.0 million, up 9.9% compared to the same period in 2018.
Net income was $64.2 million (GAAP) or $0.28 per share (GAAP) compared to a net loss of $3.7 million (GAAP) or $0.02 per share (GAAP) for the fourth quarter of 2018.
Adjusted income was $61.4 million (non-GAAP) or $0.34 per share (non-GAAP), compared to $55.2 million (non-GAAP) or $0.31 (non-GAAP) in 2018, excluding the impact of the Peoples transaction.
Essential invested $59.7 million to acquire eight water and wastewater systems in 2019, adding approximately 12,000 new customers.
Essential Utilities
Essential Utilities
Forward Guidance
Essential Utilities provided full-year 2020 guidance, including adjusted pro-forma income per diluted common share (non-GAAP) of $1.53 to $1.58.
Positive Outlook
- Adjusted pro-forma income per diluted common share (non-GAAP) of $1.53 to $1.58.
- 3-year earnings growth CAGR 5-7% for 2019 through 2022, such that base is 2019 adjusted income per share (non-GAAP)
- Infrastructure investments of approximately $550 million in 2020 for communities served by the water operations
- Infrastructure investments of approximately $400 million in 2020 for communities served by the gas operations
- Rate base compound annual growth rate of 6 to 7 percent through 2022 in water; and 8 to 10 percent in gas through 2022
Challenges Ahead
- Guidance is subject to risks and uncertainties, including those factors outlined in the “Forward-Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
- It excludes transaction-related expenses for the Company’s pending Peoples acquisition
- It excludes the impact of Peoples transaction-related rate credits of $23 million to be granted to Pennsylvania water and gas customers
- There is need for adjustment to provide full-year run rate of Peoples operating results, including additional net interest expense
- There are income tax implications of non-GAAP adjustments