The York Water(US:YORW)2023-03-07 16:39Customer Growth and Revenue - The Company increased its customer base from 73,144 to 76,731 during the year ended December 31, 2022, reflecting growth through acquisitions and organic expansion[41]. - Revenue for the year ended December 31, 2022, was $60,061, an increase of $4,942 or 9.0% compared to $55,119 in 2021[43]. - Operating revenues for 2022 increased by $4,942, or 9.0%, from $55,119 in 2021 to $60,061 in 2022, primarily due to growth in the customer base and revenues from the DSIC of $2,243[84]. - The average number of wastewater customers served in 2022 increased by 2,284 customers, from 3,325 to 5,609, primarily due to the West Manheim Township acquisition[84]. - The Company expects revenues for 2023 to increase due to a rate increase effective March 1, 2023, and continued growth in the number of water and wastewater customers[84]. Financial Performance - Net income for 2022 was $19,580, an increase of $2,596, or 15.3%, from $16,984 in 2021, driven by higher operating revenues and lower income taxes[83]. - Operating income for 2022 was $24,483 million, an increase from $23,396 million in 2021, which is a growth of 4.6%[155]. - Basic and diluted earnings per share improved to $1.40 in 2022, up from $1.30 in 2021, marking a 7.7% increase[155]. - Net income rose to $19,580 million in 2022, compared to $16,984 million in 2021, reflecting an increase of 9.4%[155]. - The Company's effective tax rate for 2022 was 0.1%, a decrease of 98.7% compared to 6.2% in 2021, primarily due to higher deductions from the IRS TPR[89]. Operating Expenses and Capital Expenditures - Operating expenses for 2022 increased by $3,855, or 12.2%, from $31,723 in 2021 to $35,578 in 2022, mainly due to higher depreciation and treatment costs[85]. - Capital expenditures related to water quality standards and environmental requirements are budgeted to represent less than 15% of total expected capital expenditures over the next five years[40]. - The Company invested $50,532 in construction expenditures during 2022, including infrastructure improvements and wastewater treatment plant construction[98]. - Anticipated construction and acquisition expenditures for 2023 and 2024 are approximately $60,600 and $47,100, respectively[99]. Assets and Liabilities - The Company's total assets increased to $510,595,000 as of December 31, 2022, from $458,853,000 in 2021, reflecting a growth of approximately 11.3%[149]. - The net utility plant value rose to $431,205,000 in 2022, up from $382,909,000 in 2021, indicating an increase of about 12.6%[149]. - Accounts receivable increased to $6,701,000 in 2022 from $4,634,000 in 2021, representing a growth of approximately 44.7%[149]. - The Company’s long-term debt, excluding the current portion, was $139,465,000 as of December 31, 2022, slightly up from $138,869,000 in 2021[152]. - Regulatory assets totaled $42,545 million in 2022, down from $45,280 million in 2021, primarily due to changes in income taxes and unrealized swap losses[179]. Dividends and Stock Performance - The dividend payout ratios for 2022 were 56.2% relative to net income and 48.5% relative to net cash provided by operating activities, compared to 58.3% and 42.7% in 2021, respectively[125]. - The Board of Directors declared a quarterly dividend of $0.2027 per share, an increase of 4.00% from the previous $0.1949 per share[126]. - Common stockholders' equity as a percentage of total capitalization increased to 59.3% as of December 31, 2022, from 50.6% in 2021[105]. - The Company completed a public offering of 975,600 shares at $41 per share, raising net proceeds of $43,970[104]. Regulatory and Compliance - The Company is currently in compliance with all applicable water quality standards and does not anticipate major capital expenditures for its wastewater business[40]. - The effective Pennsylvania corporate net income tax rate will decrease from 9.99% to 8.99% starting January 1, 2023[114]. - The Company was granted approval to modify its tariff to include the cost of replacing up to 400 lead customer-owned service lines over nine years, with an estimated cost of $1,700 per line[124]. Acquisitions and Growth Strategy - The Company signed agreements to acquire wastewater assets expected to add approximately 280, 180, and 30 customers from three different acquisitions, with completion expected in the second half of 2023[93][94][95]. - The company completed the acquisition of wastewater collection assets in December 2021 for approximately $11,991 million, adding about 1,800 customers[207]. - In August 2022, the company acquired water and wastewater assets for approximately $47 million, adding 50 customers, with a negative acquisition adjustment of $13 million[208]. - The Company completed the acquisition of wastewater collection and treatment assets, adding approximately 90 wastewater customers for a purchase price of approximately $481 million[213]. Supply Chain and Inventory Management - The Company maintains an adequate inventory of critical repair parts and has not experienced material supply chain disruptions due to COVID-19[78].