Aqua America Inc. (WTR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Aqua America Inc. has a market cap of $2.98 billion; its shares were traded at around $21.55 with a P/E ratio of 26.1 and P/S ratio of 4.4. The dividend yield of Aqua America Inc. stocks is 2.7%. Aqua America Inc. had an annual average earning growth of 7% over the past 10 years. GuruFocus rated Aqua America Inc. the business predictability rank of 5-star.WTR is in the portfolios of Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, John Keeley of Keeley Fund Management.
At September 30, 2010, our $95,000 unsecured revolving credit facility, which expires in May 2012, had $10,848 available for borrowing. At September 30, 2010, we had short-term lines of credit of $137,000, of which $67,528 was available. One of our short-term lines of credit is an Aqua Pennsylvania $70,000 364-day unsecured revolving credit facility with two banks, which is used to provide working capital.
Revenues increased $44,112 or 8.8% primarily due to additional revenues associated with increased water and wastewater rates of $25,310, increased water consumption as compared to the first nine months of 2009, additional revenues associated with increased infrastructure rehabilitation surcharges of $2,413, and additional wastewater and water revenues of $2,118 associated with a larger customer base due to acquisitions. The increase in customer water consumption is largely due to favorable weather conditions in many of our service territories during May, June, and the third quarter of 2010, which increased water usage. Further impacting the comparison is the unfavorable weather conditions experienced in 2009 in our service territories that reduced water usage in the third quarter of 2009.
Operations and maintenance expenses increased by $5,853 or 2.9% primarily due to the write-off of previously deferred regulatory expenses of $2,082, the absence of the June 2009 gain on sale of a utility system of $1,009, which had the effect of reducing operations and maintenance expense in 2009, increases in operating costs associated with acquisitions of $938, a write-off of capitalized costs of $715, increases in fuel costs for our service vehicles of $536, and normal increases in other operating costs. Offsetting these increases were decreases in water production costs of $1,227, decreased bad debt expense of $1,052, and reduced expenses of $175 associated with the dispositions of utility systems. The decreased water production costs, principally for chemicals utilized to treat water, were associated with vendor price decreases.
Operations and maintenance expenses increased by $4,480 or 6.5% primarily due to the write-off of previously deferred regulatory expenses of $1,071, increased water production costs of $534, increases in operating costs associated with acquisitions of $326, and normal increases in other operating costs. Offsetting these increases was decreased bad debt expense of $169. The increase in water production costs is a result of increased water consumption, offset primarily by vendor price decreases for chemicals utilized to treat water.
Taxes other than income taxes increased by $1,764 or 14.2% primarily due to an increase in property taxes of $1,261, an increase in gross receipts, excise and franchise taxes of $577, and an increase in capital stock taxes for our operating subsidiary in Pennsylvania of $208. The increase in property taxes is attributable to an increase in recoverable expenses associated with a recent rate award. The increase in gross receipts, excise and franchise taxes is attributable to an increase in revenue.
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Aqua America Inc. has a market cap of $2.98 billion; its shares were traded at around $21.55 with a P/E ratio of 26.1 and P/S ratio of 4.4. The dividend yield of Aqua America Inc. stocks is 2.7%. Aqua America Inc. had an annual average earning growth of 7% over the past 10 years. GuruFocus rated Aqua America Inc. the business predictability rank of 5-star.WTR is in the portfolios of Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, John Keeley of Keeley Fund Management.
Highlight of Business Operations:
During the first nine months of 2010, we had $239,467 of capital expenditures, issued $114,313 of long-term debt, repaid debt and made sinking fund contributions and other loan repayments of $97,678, and repaid $5,203 of customer advances for construction. The capital expenditures were related to improvements to treatment plants, new and rehabilitated water mains, tanks, hydrants, and service lines, well and booster improvements, and other enhancements and improvements. The issuance of $114,313 of long-term debt was comprised principally of the proceeds received from the June 2010 issuance of senior unsecured notes payable of $70,000, and the funds borrowed under our revolving credit facility of $43,000.At September 30, 2010, our $95,000 unsecured revolving credit facility, which expires in May 2012, had $10,848 available for borrowing. At September 30, 2010, we had short-term lines of credit of $137,000, of which $67,528 was available. One of our short-term lines of credit is an Aqua Pennsylvania $70,000 364-day unsecured revolving credit facility with two banks, which is used to provide working capital.
Revenues increased $44,112 or 8.8% primarily due to additional revenues associated with increased water and wastewater rates of $25,310, increased water consumption as compared to the first nine months of 2009, additional revenues associated with increased infrastructure rehabilitation surcharges of $2,413, and additional wastewater and water revenues of $2,118 associated with a larger customer base due to acquisitions. The increase in customer water consumption is largely due to favorable weather conditions in many of our service territories during May, June, and the third quarter of 2010, which increased water usage. Further impacting the comparison is the unfavorable weather conditions experienced in 2009 in our service territories that reduced water usage in the third quarter of 2009.
Operations and maintenance expenses increased by $5,853 or 2.9% primarily due to the write-off of previously deferred regulatory expenses of $2,082, the absence of the June 2009 gain on sale of a utility system of $1,009, which had the effect of reducing operations and maintenance expense in 2009, increases in operating costs associated with acquisitions of $938, a write-off of capitalized costs of $715, increases in fuel costs for our service vehicles of $536, and normal increases in other operating costs. Offsetting these increases were decreases in water production costs of $1,227, decreased bad debt expense of $1,052, and reduced expenses of $175 associated with the dispositions of utility systems. The decreased water production costs, principally for chemicals utilized to treat water, were associated with vendor price decreases.
Operations and maintenance expenses increased by $4,480 or 6.5% primarily due to the write-off of previously deferred regulatory expenses of $1,071, increased water production costs of $534, increases in operating costs associated with acquisitions of $326, and normal increases in other operating costs. Offsetting these increases was decreased bad debt expense of $169. The increase in water production costs is a result of increased water consumption, offset primarily by vendor price decreases for chemicals utilized to treat water.
Taxes other than income taxes increased by $1,764 or 14.2% primarily due to an increase in property taxes of $1,261, an increase in gross receipts, excise and franchise taxes of $577, and an increase in capital stock taxes for our operating subsidiary in Pennsylvania of $208. The increase in property taxes is attributable to an increase in recoverable expenses associated with a recent rate award. The increase in gross receipts, excise and franchise taxes is attributable to an increase in revenue.
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