Aqua America Reports Financial Results for Q1 2019
Aqua America Inc. (NYSE: WTR) today reported results for the first quarter ending March 31, 2019.
Revenues for the quarter were $201.1 million, an increase of 3.5 percent compared to $194.3 million in the first quarter of 2018. Rates and surcharges and new customers from acquisitions and organic growth were the largest contributors to the increase.
Operations and maintenance expenses increased to $79.3 million for the first quarter of 2019 compared to $73.9 million in the first quarter of 2018. Charges related to the Peoples transaction and integration increased expenses by $6.6 million. Excluding the impact of the Peoples transaction, operations and maintenance expenses declined primarily due to lower insurance claims.
For the first quarter 2019, net income was $16.9 million or $0.09 per share (GAAP). GAAP earnings were impacted by a mark-to-market adjustment on interest rate swaps of $34.8 million and transaction expenses related to the Peoples transaction of $6.6 million. Excluding the Peoples transaction-related expenses, adjusted income (non-GAAP) was $49.7 million or $0.28 per share. Please refer to the reconciliation of GAAP to non-GAAP financial measures later in this press release for additional information on our use of non-GAAP financial measures as a supplement to our GAAP results.
“In the first quarter, we remained on track for another year of strong municipal acquisition growth, record infrastructure investment and operational excellence. Regarding the Peoples acquisition, we received regulatory approval in Kentucky in March. In April we received regulatory approval in West Virginia and successfully completed our equity and debt offerings,” said Aqua America Chairman and CEO Chris Franklin. “With the Peoples integration progressing smoothly towards closing mid-year, we are excited to be able to leverage our core strengths on a broader platform.”
Peoples acquisition update
In November 2018, Aqua filed for regulatory approval from the public utility commissions in the three states where Peoples operates: Pennsylvania, West Virginia and Kentucky. In March Aqua received approval from Kentucky, and in April the company received approval in West Virginia. In Pennsylvania, Aqua received direct testimony from the intervenors and initiated settlement discussions.