Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MIDDLESEX WATER CO | |
Entity Central Index Key | 0000066004 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 16,468,462 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Operating Revenues | $ 30,698 | $ 31,177 |
Operating Expenses: | ||
Operations and Maintenance | 16,120 | 17,834 |
Depreciation | 4,046 | 3,609 |
Other Taxes | 3,504 | 3,384 |
Total Operating Expenses | 23,670 | 24,827 |
Operating Income | 7,028 | 6,350 |
Other Income (Expense): | ||
Allowance for Funds Used During Construction | 515 | 167 |
Other Income (Expense), net | (57) | 297 |
Total Other Income, net | 458 | 464 |
Interest Charges | 1,200 | 1,138 |
Income before Income Taxes | 6,286 | 5,676 |
Income Taxes | (266) | 1,182 |
Net Income | 6,552 | 4,494 |
Preferred Stock Dividend Requirements | 36 | 36 |
Earnings Applicable to Common Stock | $ 6,516 | $ 4,458 |
Earnings per share of Common Stock: | ||
Basic | $ 0.40 | $ 0.27 |
Diluted | $ 0.39 | $ 0.27 |
Average Number of Common Shares Outstanding: | ||
Basic | 16,428 | 16,354 |
Diluted | 16,584 | 16,510 |
Cash Dividends Paid per Common Share | $ 0.2400 | $ 0.2238 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
UTILITY PLANT: | ||
Water Production | $ 156,716 | $ 156,423 |
Transmission and Distribution | 515,017 | 512,202 |
General | 77,304 | 74,371 |
Construction Work in Progress | 40,346 | 32,878 |
TOTAL | 789,383 | 775,874 |
Less Accumulated Depreciation | 160,777 | 157,387 |
UTILITY PLANT - NET | 628,606 | 618,487 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 4,986 | 3,705 |
Accounts Receivable, net | 9,982 | 11,762 |
Unbilled Revenues | 6,940 | 7,293 |
Materials and Supplies (at average cost) | 5,479 | 5,411 |
Prepayments | 2,263 | 2,644 |
TOTAL CURRENT ASSETS | 29,650 | 30,815 |
AND OTHER ASSETS: | ||
Operating Lease Right-of-Use Asset | 6,517 | |
Preliminary Survey and Investigation Charges | 5,359 | 5,254 |
Regulatory Assets | 98,826 | 99,236 |
Restricted Cash | 1,802 | 1,956 |
Non-utility Assets - Net | 10,203 | 9,989 |
Other | 2,010 | 2,093 |
TOTAL DEFERRED CHARGES AND OTHER ASSETS | 124,717 | 118,528 |
TOTAL ASSETS | 782,973 | 767,830 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 160,142 | 157,354 |
Retained Earnings | 94,000 | 91,433 |
TOTAL COMMON EQUITY | 254,142 | 248,787 |
Preferred Stock | 2,433 | 2,433 |
Long-term Debt | 158,422 | 152,851 |
TOTAL CAPITALIZATION | 414,997 | 404,071 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 7,336 | 7,343 |
Notes Payable | 49,500 | 48,500 |
Accounts Payable | 13,976 | 19,325 |
Accrued Taxes | 17,466 | 14,230 |
Accrued Interest | 587 | 1,289 |
Unearned Revenues and Advanced Service Fees | 1,025 | 1,036 |
Other | 3,356 | 2,640 |
TOTAL CURRENT LIABILITIES | 93,246 | 94,363 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Customer Advances for Construction | 22,616 | 22,572 |
Operating Lease Obligation | 6,260 | |
Accumulated Deferred Income Taxes | 47,869 | 47,270 |
Employee Benefit Plans | 29,976 | 30,661 |
Regulatory Liabilities | 76,217 | 79,112 |
Other | 2,530 | 2,730 |
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES | 185,468 | 182,345 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 89,262 | 87,051 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 782,973 | $ 767,830 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 6,552 | $ 4,494 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 4,190 | 3,771 |
Provision for Deferred Income Taxes and Investment Tax Credits | (2,319) | 117 |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (347) | (115) |
Cash Surrender Value of Life Insurance | (123) | (2) |
Stock Compensation Expense | 229 | 173 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | 1,780 | 815 |
Unbilled Revenues | 353 | 7 |
Materials & Supplies | (68) | (37) |
Prepayments | 381 | 356 |
Accounts Payable | (5,349) | (2,915) |
Accrued Taxes | 3,236 | 3,185 |
Accrued Interest | (702) | (591) |
Employee Benefit Plans | 26 | (588) |
Unearned Revenue & Advanced Service Fees | (11) | 15 |
Other Assets and Liabilities | (164) | 296 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 7,664 | 8,981 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $168 in 2019, $52 in 2018 | (12,324) | (10,011) |
NET CASH USED IN INVESTING ACTIVITIES | (12,324) | (10,011) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (1,337) | (1,141) |
Proceeds from Issuance of Long-term Debt | 6,899 | 2,293 |
Net Short-term Bank Borrowings | 1,000 | (500) |
Deferred Debt Issuance Expense | (20) | |
Common Stock Issuance Expense | (6) | |
Proceeds from Issuance of Common Stock | 2,559 | 286 |
Payment of Common Dividends | (3,943) | (3,659) |
Payment of Preferred Dividends | (36) | (36) |
Construction Advances and Contributions-Net | 651 | 182 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 5,787 | (2,595) |
NET CHANGES IN CASH AND CASH EQUIVALENTS | 1,127 | (3,625) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 5,661 | 6,397 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 6,788 | 2,772 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 1,605 | 284 |
Cash Paid During the Year for: | ||
Interest | 2,297 | 1,833 |
Interest Capitalized | 168 | 52 |
Income Taxes | $ 815 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Allowance for funds used during construction | $ 168 | $ 52 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Common Stock, No Par Value | $ 160,142 | $ 157,354 |
Retained Earnings | 94,000 | 91,433 |
TOTAL COMMON EQUITY | 254,142 | 248,787 |
TOTAL PREFERRED STOCK | 2,433 | 2,433 |
SUBTOTAL LONG-TERM DEBT | 168,466 | 162,904 |
Add: Premium on Issuance of Long-term Debt | 1,204 | 1,259 |
Less: Unamortized Debt Expense | (3,912) | (3,969) |
Less: Current Portion of Long-term Debt | (7,336) | (7,343) |
TOTAL LONG-TERM DEBT | 158,422 | 152,851 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 856 | 924 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,850 | 3,955 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,197 | 3,267 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,477 | 3,547 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 228 | 228 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,632 | 1,632 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 330 | 351 |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 369 | 389 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 501 | 501 |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 111 | 111 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 85 | 88 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 235 | 235 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 77 | 77 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 879 | 907 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,517 | 3,604 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,708 | 2,771 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 5,555 | 5,684 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,277 | 9,387 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,442 | 3,483 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,954 | 1,954 |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,024 | 1,024 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 23,408 | 16,509 |
First Mortgage Bonds - Series Z [Member] | ||
SUBTOTAL LONG-TERM DEBT | 113 | 113 |
First Mortgage Bonds - Series AA [Member] | ||
SUBTOTAL LONG-TERM DEBT | 155 | 155 |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 354 | 362 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 489 | 489 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,819 | 1,876 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,980 | 2,980 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 710 | 723 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 795 | 795 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 506 | 520 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 671 | 671 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 880 | 898 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,010 | 1,010 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,103 | 1,137 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,415 | 1,415 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,906 | 1,956 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 700 | 700 |
First Mortgage Bonds - Series QQ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,915 | 9,915 |
First Mortgage Bonds - Series RR [Member] | ||
SUBTOTAL LONG-TERM DEBT | 22,500 | 22,500 |
First Mortgage Bonds - Series SS [Member] | ||
SUBTOTAL LONG-TERM DEBT | 23,000 | 23,000 |
First Mortgage Bonds - Series TT [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,057 | 2,107 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 800 | 800 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,100 | 2,147 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 795 | 795 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 10,880 | 11,006 |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,860 | 3,860 |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 6,837 | 6,917 |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,365 | 2,365 |
Convertible Preferred Stock $7.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 1,005 | 1,005 |
Convertible Preferred Stock $8.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 349 | 349 |
Nonredeemable Preferred Stock $7.00 Series [Member] | ||
TOTAL PREFERRED STOCK | 79 | 79 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
TOTAL PREFERRED STOCK | 1,000 | 1,000 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | $ 1,039 | $ 1,064 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) (Parenthetical) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Common Stock, Shares Authorized | 40,000 | 40,000 |
Common Stock, Shares Outstanding | 16,451 | 16,403 |
Preferred Stock, Shares Authorized | 126 | 126 |
Preferred Stock, Shares Outstanding | 23 | 23 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
Interest rate | 2.00% | |
Due date of debt | Feb. 1, 2036 | |
Convertible Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Convertible Preferred Stock $8.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 3 | 3 |
Nonredeemable Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 1 | 1 |
Nonredeemable Preferred Stock $4.75 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
Interest rate | 8.05% | |
Due date of debt | Dec. 20, 2021 | |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
Interest rate | 6.25% | |
Due date of debt | May 19, 2028 | |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
Interest rate | 6.44% | |
Due date of debt | Aug. 25, 2030 | |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
Interest rate | 6.46% | |
Due date of debt | Sep. 19, 2031 | |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
Interest rate | 4.22% | |
Due date of debt | Dec. 31, 2022 | |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
Interest rate | 3.60% | |
Due date of debt | May 1, 2025 | |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
Interest rate | 3.30% | |
Due date of debt | Mar. 1, 2026 | |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
Interest rate | 3.49% | |
Due date of debt | Jan. 25, 2027 | |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
Interest rate | 4.03% | |
Due date of debt | Dec. 1, 2026 | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
Due date of debt | Aug. 1, 2021 | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
State Revolving Fund Bond 0.00%, due August 1, 2021 [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2021 | |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
Interest rate | 3.64% | |
Due date of debt | Jul. 1, 2028 | |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
Interest rate | 3.64% | |
Due date of debt | Jan. 1, 2028 | |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
Interest rate | 3.45% | |
Due date of debt | Aug. 1, 2031 | |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
Interest rate | 6.59% | |
Due date of debt | Apr. 20, 2029 | |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
Interest rate | 7.05% | |
Due date of debt | Jan. 20, 2030 | |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
Interest rate | 5.69% | |
Due date of debt | Jan. 20, 2030 | |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
Interest rate | 4.45% | |
Due date of debt | Apr. 20, 2040 | |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
Interest rate | 4.47% | |
Due date of debt | Apr. 20, 2040 | |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Jul. 1, 2031 | |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Nov. 30, 2030 | |
First Mortgage Bonds - Series X [Member] | ||
Interest rate | 0.00% | |
First Mortgage Bonds - Series Z [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2019 | |
First Mortgage Bonds - Series AA [Member] | ||
Due date of debt | Aug. 1, 2019 | |
First Mortgage Bonds - Series AA [Member] | Minimum [Member] | ||
Interest rate | 5.25% | |
First Mortgage Bonds - Series AA [Member] | Maximum [Member] | ||
Interest rate | 5.75% | |
First Mortgage Bonds - Series BB [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2021 | |
First Mortgage Bonds - Series CC [Member] | ||
Due date of debt | Aug. 1, 2021 | |
First Mortgage Bonds - Series CC [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
First Mortgage Bonds - Series CC [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series EE [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2023 | |
First Mortgage Bonds - Series FF [Member] | ||
Due date of debt | Aug. 1, 2024 | |
First Mortgage Bonds - Series FF [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series FF [Member] | Maximum [Member] | ||
Interest rate | 5.50% | |
First Mortgage Bonds - Series GG [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2026 | |
First Mortgage Bonds - Series HH [Member] | ||
Due date of debt | Aug. 1, 2026 | |
First Mortgage Bonds - Series HH [Member] | Minimum [Member] | ||
Interest rate | 4.00% | |
First Mortgage Bonds - Series HH [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series II [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2024 | |
First Mortgage Bonds - Series JJ [Member] | ||
Due date of debt | Aug. 1, 2027 | |
First Mortgage Bonds - Series JJ [Member] | Minimum [Member] | ||
Interest rate | 3.40% | |
First Mortgage Bonds - Series JJ [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series KK [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2028 | |
First Mortgage Bonds - Series LL [Member] | ||
Due date of debt | Aug. 1, 2028 | |
First Mortgage Bonds - Series LL [Member] | Minimum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series LL [Member] | Maximum [Member] | ||
Interest rate | 5.50% | |
First Mortgage Bonds - Series MM [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2030 | |
First Mortgage Bonds - Series NN [Member] | ||
Due date of debt | Aug. 1, 2030 | |
First Mortgage Bonds - Series NN [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series NN [Member] | Maximum [Member] | ||
Interest rate | 4.375% | |
First Mortgage Bonds - Series OO [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2031 | |
First Mortgage Bonds - Series PP [Member] | ||
Due date of debt | Aug. 1, 2031 | |
First Mortgage Bonds - Series PP [Member] | Minimum [Member] | ||
Interest rate | 2.00% | |
First Mortgage Bonds - Series PP [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series QQ [Member] | ||
Interest rate | 5.00% | |
Due date of debt | Oct. 1, 2023 | |
First Mortgage Bonds - Series RR [Member] | ||
Interest rate | 3.80% | |
Due date of debt | Oct. 1, 2038 | |
First Mortgage Bonds - Series SS [Member] | ||
Interest rate | 4.25% | |
Due date of debt | Oct. 1, 2047 | |
First Mortgage Bonds - Series TT [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2032 | |
First Mortgage Bonds - Series UU [Member] | ||
Due date of debt | Aug. 1, 2032 | |
First Mortgage Bonds - Series UU [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series UU [Member] | Maximum [Member] | ||
Interest rate | 3.25% | |
First Mortgage Bonds - Series VV [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2033 | |
First Mortgage Bonds - Series WW [Member] | ||
Due date of debt | Aug. 1, 2033 | |
First Mortgage Bonds - Series WW [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series WW [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
First Mortgage Bonds - Series XX [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2047 | |
First Mortgage Bonds - Series YY [Member] | ||
Due date of debt | Aug. 1, 2047 | |
First Mortgage Bonds - Series YY [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
First Mortgage Bonds - Series YY [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
Interest rate | 0.00% | |
Due date of debt | Aug. 1, 2047 | |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | ||
Due date of debt | Aug. 1, 2047 | |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | Minimum [Member] | ||
Interest rate | 3.00% | |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | Maximum [Member] | ||
Interest rate | 5.00% | |
Construction Loans [Member] | ||
Interest rate | 0.00% |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 155,120 | $ 74,055 | $ 229,175 |
Balance, shares at Dec. 31, 2017 | 16,352,000 | ||
Net Income | 4,494 | 4,494 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 286 | 286 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 8,000 | ||
Restricted Stock Award, Net - Employees | $ 174 | 174 | |
Restricted Stock Award, Net - Employees, shares | |||
Shares Forfeited | |||
Shares Forfeited, shares | (2,000) | ||
Cash Dividends on Common Stock | (3,659) | (3,659) | |
Cash Dividends on Common Stock, shares | |||
Cash Dividends on Preferred Stock | (36) | (36) | |
Cash Dividends on Preferred Stock, shares | |||
Balance at Mar. 31, 2018 | $ 155,580 | 74,855 | 230,435 |
Balance, shares at Mar. 31, 2018 | 16,358,000 | ||
Balance at Dec. 31, 2018 | $ 157,354 | 91,433 | 248,787 |
Balance, shares at Dec. 31, 2018 | 16,403,000 | ||
Net Income | 6,552 | 6,552 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 2,559 | $ 2,559 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 48,000 | 47,649 | |
Restricted Stock Award, Net - Employees | $ 229 | $ 229 | |
Restricted Stock Award, Net - Employees, shares | |||
Cash Dividends on Common Stock | (3,943) | (3,943) | |
Cash Dividends on Common Stock, shares | |||
Cash Dividends on Preferred Stock | (36) | (36) | |
Cash Dividends on Preferred Stock, shares | |||
Common Stock Expenses | (6) | (6) | |
Common Stock Expenses, shares | |||
Balance at Mar. 31, 2019 | $ 160,142 | $ 94,000 | $ 254,142 |
Balance, shares at Mar. 31, 2019 | 16,451,000 |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation and Recent Developments [Abstract] | |
Basis of Presentation and Recent Developments | Note 1 – Basis of Presentation and Recent Developments Middlesex Water Company (Middlesex or the Company) is the parent company and sole shareholder of Tidewater Utilities, Inc. (Tidewater), Tidewater Environmental Services, Inc. (TESI), Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), Utility Service Affiliates (Perth Amboy) Inc. (USA-PA), and Twin Lakes Utilities, Inc. (Twin Lakes). Southern Shores Water Company, LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh) are wholly-owned subsidiaries of Tidewater. The financial statements for Middlesex and its wholly-owned subsidiaries (the Company) are reported on a consolidated basis. All significant intercompany accounts and transactions have been eliminated. The consolidated notes within the 2018 Annual Report on Form 10-K (the 2018 Form 10-K) are applicable to these financial statements and, in the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (including normal recurring accruals) to present fairly the financial position as of March 31, 2019 and the results of operations and cash flows for the three month periods ended March 31, 2019 and 2018. Information included in the Condensed Consolidated Balance Sheet as of December 31, 2018, has been derived from the Company’s audited financial statements for the year ended December 31, 2018 included in the 2018 Form 10-K. Recently Adopted Accounting Guidance Leases - Leases Note 7 – Commitments and Contingent Liabilities There are no other new adopted or proposed accounting guidance that the Company is aware of that could have a material impact on the Company’s financial statements. |
Rate and Regulatory Matters
Rate and Regulatory Matters | 3 Months Ended |
Mar. 31, 2019 | |
Regulated Operations [Abstract] | |
Rate and Regulatory Matters | Note 2 Rate and Regulatory Matters Middlesex – Tidewater - In February 2019, Tidewater received approval from the DEPSC to reduce its rates, effective March 1, 2019, to reflect the lower corporate income tax rate enacted by the , resulting in an overall rate decrease of 3.35%, or $1.0 million of revenues, on an annual basis. The DEPSC also approved a one-time credit of $0.7 million to customers’ accounts related to the lower corporate income tax rate. Pinelands - |
Capitalization
Capitalization | 3 Months Ended |
Mar. 31, 2019 | |
CAPITALIZATION: | |
Capitalization | Note 3 – Capitalization Common Stock - In March 2019, Middlesex filed a petition with the NJBPU seeking approval to issue and sell up to 1,500,000 shares of its common stock in one or more transactions through December 31, 2022. The sale of these additional shares of common stock is part of the Company’s comprehensive financing plan to fund its multi-year utility plant infrastructure investment program. As described below in “ Long-term Debt” Long-term Debt - In September 2018, the NJIB announced changes to the SRF program for project funding priority ranking, the proportions of interest free loans and market interest rate loans and overall loan limits on interest free loan balances to investor-owned water utilities. These changes affect SRF projects for which the construction loan closes after September 2018. Under the new guidelines, the principal balance having a stated interest rate of zero percent (0%) is 25% of the loan balance with the remaining portion of 75% having a market based interest rate. This is limited to the first $10.0 million of the loan. Loan amounts above $10.0 million do not participate in the 0% rate program, but do participate at the market based interest rate. The only active project affected by the SRF program changes is the upgrade to the Company’s Carl J. Olsen water treatment plant (CJO Plant). In April 2018, the NJBPU approved Middlesex’s request to participate in the NJIB loan program and borrow up to $55.0 million for the CJO Plant project. Although the CJO Plant project has met all the SRF Program requirements, the NJIB has been unable to commit to funding the construction loan. In order to help ensure adherence to its comprehensive financing plan, Middlesex received approval from the NJBPU in February 2019 to issue and sell up to $140 million of First Mortgage Bonds through the NJEDA in one or more transactions through December 31, 2022. In May 2018, Middlesex repaid its $9.5 million RENEW 2017 interest-free construction loan by issuing to the NJIB first mortgage bonds designated as Series 2018A ($7.1 million) and Series 2018B ($2.4 million). The interest rate on the Series 2018A bond is zero and the interest rate on the Series 2018B bond ranges between 3.0% and 5.0%. Through March 31, 2019, Middlesex has drawn a total of $8.2 million and expects to draw the remaining proceeds during the second quarter of 2019. The final maturity date for both bonds is August 1, 2047, with scheduled debt service payments over the life of the loans. In April 2018, the NJBPU approved Middlesex’s request to participate in the NJIB loan program to fund the construction of a large-diameter transmission pipeline from the CJO water treatment plant and interconnect with our distribution system. Middlesex closed on a $43.5 million NJIB interest-free construction loan in August 2018. Through March 31, 2019, Middlesex has drawn a total of $16.8 million and expects to draw down the remaining proceeds through the end of 2019. In March 2018, the NJBPU approved Middlesex’s request to borrow up to $14.0 million under the NJIB program to fund the 2018 RENEW Program, which is an ongoing initiative to eliminate all unlined water distribution mains in the Middlesex system. Middlesex closed on an $8.7 million NJIB construction loan in September 2018. Through March 31, 2019, Middlesex has drawn a total of $6.6 million and expects to draw the remaining proceeds during the remainder of 2019. The NJIB has informed the Company that the RENEW 2018 interest-free construction loan is scheduled for the May 2019 long-term debt financing program. In March 2018, the DEPSC approved Tidewater’s request to borrow up to $0.9 million under the Delaware SRF program to fund the replacement of an entire water distribution system of a small Delaware subdivision. Tidewater closed on the SRF loan in May 2018. In April 2019, Tidewater received approval from the DEPSC to increase the borrowing to $1.7 million based on revised project cost estimates. The closing on the additional $0.8 million is expected to occur in June 2019. Fair Value of Financial Instruments - March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $100,910 $103,247 $101,411 $102,789 For other long-term debt for which there was no quoted market price and there is not an active trading market, it was not practicable to estimate their fair value (for details, including carrying value, interest rate and due date on these series of long-term debt, please refer to those series noted as “Amortizing Secured Note”, “State Revolving Trust Note” and “Construction Loans” on the Condensed Consolidated Statements of Capital Stock and Long-Term Debt). The carrying amount of these instruments was $67.6 million and $61.5 million at March 31, 2019 and December 31, 2018, respectively. Customer advances for construction have carrying amounts of $22.6 million at both March 31, 2019 and December 31, 2018, respectively. Their relative fair values cannot be accurately estimated since future refund payments depend on several variables, including new customer connections, customer consumption levels and future rate increases. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4 – Earnings Per Share Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series. (In Thousands Except per Share Amounts) Three Months Ended March 31, 2019 2018 Basic: Income Shares Income Shares Net Income $ 6,552 16,428 $ 4,494 16,354 Preferred Dividend (36 ) (36 ) Earnings Applicable to Common Stock $ 6,516 16,428 $ 4,458 16,354 Basic EPS $ 0.40 $ 0.27 Diluted: Earnings Applicable to Common Stock $ 6,516 16,428 $ 4,458 16,354 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend 6 41 6 41 Adjusted Earnings Applicable to Common Stock $ 6,539 16,584 $ 4,481 16,510 Diluted EPS $ 0.39 $ 0.27 |
Business Segment Data
Business Segment Data | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Data | Note 5 – Business Segment Data The Company has identified two reportable segments. One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey, Delaware and Pennsylvania. This segment also includes regulated wastewater systems in New Jersey and Delaware. The Company is subject to regulations as to its rates, services and other matters by New Jersey, Delaware and Pennsylvania with respect to utility services within these states. The other segment is primarily comprised of non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. Inter-segment transactions relating to operational costs are treated as pass-through expenses. Finance charges on inter-segment loan activities are based on interest rates that are below what would normally be charged by a third party lender. (In Thousands) Three Months Ended March 31, Operations by Segments: 2019 2018 Revenues: Regulated $ 27,898 $ 27,206 Non – Regulated 2,925 4,100 Inter-segment Elimination (125 ) (129 ) Consolidated Revenues $ 30,698 $ 31,177 Operating Income: Regulated $ 6,034 $ 5,625 Non – Regulated 994 725 Consolidated Operating Income $ 7,028 $ 6,350 Net Income: Regulated $ 5,868 $ 3,983 Non – Regulated 684 511 Consolidated Net Income $ 6,552 $ 4,494 Capital Expenditures: Regulated $ 12,293 $ 9,978 Non – Regulated 31 33 Total Capital Expenditures $ 12,324 $ 10,011 As of As of March 31, December 31, 2019 2018 Assets: Regulated $ 780,317 $ 764,749 Non – Regulated 9,087 8,994 Inter-segment Elimination (6,431 ) (5,913 ) Consolidated Assets $ 782,973 $ 767,830 |
Short-term Borrowings
Short-term Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Note 6 – Short-term Borrowings As of March 31, 2019, the Company retains lines of credit aggregating $100.0 million. At March 31, 2019, the outstanding borrowings under these credit lines were $49.5 million at a weighted average interest rate of 3.61%. The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were $50.0 million and $27.9 million at 3.64% and 2.74% for the three months ended March 31, 2019 and 2018, respectively. The maturity dates for the $49.5 million outstanding as of March 31, 2019 are in April 2019 through June 2019 and are extendable at the discretion of the Company. Interest rates for short-term borrowings under the lines of credit are below the prime rate with no requirement for compensating balances. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 7 – Commitments and Contingent Liabilities Water Supply Middlesex also has an agreement with a non-affiliated regulated water utility for the purchase of treated water. This agreement, which expires February 27, 2021, provides for the minimum purchase of 3.0 mgd of treated water with provisions for additional purchases. Tidewater contracts with the City of Dover, Delaware to purchase 15.0 million gallons of treated water annually. Purchased water costs are shown below: (In Thousands) Three Months Ended March 31, 2019 2018 Treated $ 770 $ 888 Untreated 861 930 Total Costs $ 1,631 $ 1,818 Guarantees - If requested to perform under the guaranty to the County and, if AWM and NSU, as guarantor to Middlesex, do not fulfill their obligations to indemnify Middlesex against any claims that may arise under the Middlesex guaranty to the County, Middlesex would be required to fulfill the remaining operational commitment of AWM. As of both March 31, 2019 and December 31, 2018, the liability recognized in Other Non-Current Liabilities on the balance sheet for the guaranty is approximately $1.5 million. Leases - The Company has entered into an operating lease of office space for administrative purposes, expiring in 2030. The Company has not entered into any finance leases. The exercise of a lease renewal option for the Company’s administrative offices is solely at the discretion of the Company. The right-of-use (ROU) asset recorded represents the Company’s right to use an underlying asset for the lease term and lease liability represents the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company’s operating lease does not provide an implicit discount rate and as such the Company used an estimated incremental borrowing rate (4.03%) based on the information available at commencement date in determining the present value of lease payments. Given the impacts of accounting for regulated operations, and the resulting recognition of expense at the amounts recovered in customer rates, expenditures for operating leases are consistent with lease expense and were $0.1 million and less than $0.1 million for the three months ended March 31, 2019 and 2018, respectively. Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) March 31, 2019 ROU Asset at Lease Inception $ 7.3 Accumulated Amortization (0.8 ) Current ROU Asset $ 6.5 The Company’s future minimum operating lease commitments as of March 31, 2019 are as follows: (In Millions) March 31, 2019 2019 $ 0.5 2020 0.8 2021 0.8 2022 0.8 2023 0.8 Thereafter 5.3 Total Lease Payments $ 9.0 Imputed Interest (2.1 ) Present Value of Lease Payments 6.9 Less Current Portion* (0.6 ) Non-Current Lease Liability $ 6.3 *Included in Other Current Liabilities Construction Litigation Change in Control Agreements |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 8 – Employee Benefit Plans Pension Benefits Other Postretirement Benefits - The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended March 31, 2019 2018 2019 2018 Service Cost $ 543 $ 607 $ 210 $ 284 Interest Cost 857 765 496 474 Expected Return on Assets (1,173 ) (1,218 ) (613 ) (637 ) Amortization of Unrecognized Losses 404 415 330 447 Amortization of Unrecognized Prior Service Credit — — — (402 ) Net Periodic Benefit Cost* $ 631 $ 569 $ 423 $ 166 *Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Contra
Revenue Recognition from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition from Contracts with Customers | Note 9 – Revenue Recognition from Contracts with Customers The Company’s revenues are primarily generated from regulated tariff-based sales of water and wastewater services and non-regulated operation and maintenance contracts for services on water and wastewater systems owned by others. Revenue from contracts with customers is recognized when control of a promised good or service is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The Company’s regulated revenue from contracts with customers is derived from tariff-based sales that result from the obligation to provide water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. The Company’s residential customers are billed quarterly while most of the Company’s industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 and 30 days after the invoice date. The Company recognizes revenue as the water and wastewater services are delivered, to customers as well as records unbilled revenues estimated from the last meter reading date to the end of the accounting period utilizing factors such as historical customer data, regional weather indicators and general economic conditions in its service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance of service provided to Tidewater customers and are recognized as service is provided. Non-regulated service contract revenues consist of base service fees, as well as fees for additional billable services provided to customers, are billed monthly and are due within 30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers. Certain of these contracts continue through 2022 and thus contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain termination provisions. Substantially all operating revenues and accounts receivable are from contracts with customers. The Company records an allowance for doubtful accounts based on historical write-offs combined with an evaluation of current economic conditions within its service territories. The Company’s contracts do not contain any significant financing components. The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended March 31, 2019 2018 Regulated Tariff Sales Residential $ 15,980 $ 15,623 Commercial 3,309 3,109 Industrial 2,198 2,312 Fire Protection 3,013 2,888 Wholesale 3,339 3,212 Non-Regulated Contract Operations 2,824 3,999 Total Revenue from Contracts with Customers $ 30,663 $ 31,143 Other Regulated Revenues 58 62 Other Non-Regulated Revenues 102 101 Inter-segment Elimination (125 ) (129 ) Total Revenue $ 30,698 $ 31,177 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes As part of its 2014 Federal income tax return, the Company adopted the final Internal Revenue Service (IRS) tangible property regulations and changed its accounting method for the tax treatment of expenditures that qualified as deductible repairs. The adoption resulted in a net reduction of $17.6 million in taxes previously remitted to the IRS, for which the Company has already sought and received the tax refunds. A reserve provision against refunded taxes of $2.3 million was recorded in 2015 at the time of filing its change in accounting method based on a possible challenge by the IRS during an audit examination. The Company’s 2014 federal income tax return was subsequently selected for examination by the IRS in 2016. In 2018, the Company received information from the IRS regarding certain aspects of the its adopted accounting method used to calculate qualifying tangible property repair cost deductions and increased its reserve provision to $4.1 million. During the first quarter of 2019, the Company agreed to certain modifications of its accounting method for expenditures that qualify as deductible repairs and the IRS concluded its audit of the Company’s 2014 federal income tax return. The modifications also impacted the Company’s filed 2015, 2016 and 2017 federal income tax returns. The Company paid $0.8 million in income taxes in connection with the conclusion of the 2014 and 2015 tax years. The IRS is currently examining the 2016 and 2017 tax years to determine the impact of the modifications on those tax years. The Company reduced its income tax reserve provision to $3.1 million as of March 31, 2019. Pending completion of the 2016 and 2017 examinations, the final tax liability could be different than the recorded reserve provision. For the three months ended March 31, 2019, the Company reduced its potential interest expense liability to $0.3 million as a result of the closing of the 2014 and 2015 tax years and the revised income tax reserve provision. |
Capitalization (Tables)
Capitalization (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
CAPITALIZATION: | |
Schedule of carrying amount and fair value of bonds | The carrying amount and fair value of the Bonds were as follows: March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $100,910 $103,247 $101,411 $102,789 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic earnings per share (EPS) are computed on the basis of the weighted average number of shares outstanding during the period presented. Diluted EPS assumes the conversion of both the Convertible Preferred Stock $7.00 Series and the Convertible Preferred Stock $8.00 Series. (In Thousands Except per Share Amounts) Three Months Ended March 31, 2019 2018 Basic: Income Shares Income Shares Net Income $ 6,552 16,428 $ 4,494 16,354 Preferred Dividend (36 ) (36 ) Earnings Applicable to Common Stock $ 6,516 16,428 $ 4,458 16,354 Basic EPS $ 0.40 $ 0.27 Diluted: Earnings Applicable to Common Stock $ 6,516 16,428 $ 4,458 16,354 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend 6 41 6 41 Adjusted Earnings Applicable to Common Stock $ 6,539 16,584 $ 4,481 16,510 Diluted EPS $ 0.39 $ 0.27 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Inter-segment transactions relating to operational costs are treated as pass-through expenses. Finance charges on inter-segment loan activities are based on interest rates that are below what would normally be charged by a third party lender. (In Thousands) Three Months Ended March 31, Operations by Segments: 2019 2018 Revenues: Regulated $ 27,898 $ 27,206 Non – Regulated 2,925 4,100 Inter-segment Elimination (125 ) (129 ) Consolidated Revenues $ 30,698 $ 31,177 Operating Income: Regulated $ 6,034 $ 5,625 Non – Regulated 994 725 Consolidated Operating Income $ 7,028 $ 6,350 Net Income: Regulated $ 5,868 $ 3,983 Non – Regulated 684 511 Consolidated Net Income $ 6,552 $ 4,494 Capital Expenditures: Regulated $ 12,293 $ 9,978 Non – Regulated 31 33 Total Capital Expenditures $ 12,324 $ 10,011 As of As of March 31, December 31, 2019 2018 Assets: Regulated $ 780,317 $ 764,749 Non – Regulated 9,087 8,994 Inter-segment Elimination (6,431 ) (5,913 ) Consolidated Assets $ 782,973 $ 767,830 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of purchased water cost | Purchased water costs are shown below: (In Thousands) Three Months Ended March 31, 2019 2018 Treated $ 770 $ 888 Untreated 861 930 Total Costs $ 1,631 $ 1,818 |
Schedule of operating lease ROU assets and lease liabilities | Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) March 31, 2019 ROU Asset at Lease Inception $ 7.3 Accumulated Amortization (0.8 ) Current ROU Asset $ 6.5 |
Schedule of future minimum operating lease | The Company’s future minimum operating lease commitments as of March 31, 2019 are as follows: (In Millions) March 31, 2019 2019 $ 0.5 2020 0.8 2021 0.8 2022 0.8 2023 0.8 Thereafter 5.3 Total Lease Payments $ 9.0 Imputed Interest (2.1 ) Present Value of Lease Payments 6.9 Less Current Portion* (0.6 ) Non-Current Lease Liability $ 6.3 *Included in Other Current Liabilities |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of periodic costs for employee retirement benefit plan | The following tables set forth information relating to the Company’s periodic costs for its employee retirement benefit plans: (In Thousands) Pension Benefits Other Benefits Three Months Ended March 31, 2019 2018 2019 2018 Service Cost $ 543 $ 607 $ 210 $ 284 Interest Cost 857 765 496 474 Expected Return on Assets (1,173 ) (1,218 ) (613 ) (637 ) Amortization of Unrecognized Losses 404 415 330 447 Amortization of Unrecognized Prior Service Credit — — — (402 ) Net Periodic Benefit Cost* $ 631 $ 569 $ 423 $ 166 *Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Cont_2
Revenue Recognition from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Operating Revenue | The Company’s operating revenues are comprised of the following: (In Thousands) Three Months Ended March 31, 2019 2018 Regulated Tariff Sales Residential $ 15,980 $ 15,623 Commercial 3,309 3,109 Industrial 2,198 2,312 Fire Protection 3,013 2,888 Wholesale 3,339 3,212 Non-Regulated Contract Operations 2,824 3,999 Total Revenue from Contracts with Customers $ 30,663 $ 31,143 Other Regulated Revenues 58 62 Other Non-Regulated Revenues 102 101 Inter-segment Elimination (125 ) (129 ) Total Revenue $ 30,698 $ 31,177 |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Developments (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Basis of Presentation and Recent Developments [Abstract] | |
Right-of-use asset | $ 6,700 |
Lease liability | 7,100 |
Regulatory assets | $ 400 |
Rate and Regulatory Matters (De
Rate and Regulatory Matters (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Regulatory Liabilities [Line Items] | ||
Deferred income tax benefits | $ (2,319) | $ 117 |
Middlesex [Member] | New Jersey Board Of Public Utilities [Member] | ||
Regulatory Liabilities [Line Items] | ||
Additional annual costs | 100 | |
Tidewater [Member] | Delaware Public Service Commission Member | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | $ 200 | |
Corporate tax rate | 3.35% | |
Base rate amount | $ 1,000 | |
Line of credit | 700 | |
Pinelands Water Company [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | 200 | |
Pinelands Wastewater [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | $ 500 |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||||
May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Apr. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Apr. 30, 2018 | |
Schedule of Capitalization [Line Items] | ||||||||||
Issuance of shares under the DRP, shares | 47,649 | |||||||||
Issuance of shares under the DRP | $ 2,559 | $ 286 | ||||||||
Authorized shares under plan | 1,500,000 | |||||||||
Other long term debt | $ 67,600 | $ 61,500 | ||||||||
Customer advances | 22,616 | $ 22,572 | ||||||||
Amount drawn | 6,899 | 2,293 | ||||||||
New Jersey NJIB Program [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing amount | 14,000 | |||||||||
Maximum borrowing capacity, construction loan | $ 6,600 | $ 8,700 | $ 16,800 | |||||||
Delaware State Revolving Fund [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing amount | $ 900 | $ 10,000 | ||||||||
Delaware State Revolving Fund [Member] | Subsequent Event [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing capacity, construction loan | $ 800 | $ 1,700 | ||||||||
Series 2018A [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Proceeds from issuance of first mortgage bond | $ 7,100 | |||||||||
Interest rate | 0.00% | |||||||||
Due date of debt | Aug. 1, 2047 | |||||||||
Series 2018B [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Proceeds from issuance of first mortgage bond | $ 2,400 | |||||||||
Due date of debt | Aug. 1, 2047 | |||||||||
New Jersey Infrastructure Bank [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Maximum borrowing capacity, construction loan | $ 9,500 | $ 140,000 | $ 43,500 | $ 55,000 | ||||||
Interest rate | 0.00% | |||||||||
Percentage of principal with stated interest rate | 75.00% | |||||||||
Percentage of principal with market interest rate | 25.00% | |||||||||
Maximum [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Common stock granted and issued under plan | 200,000 | |||||||||
Percentage of offering shares on discount to participants | 5.00% | |||||||||
Maximum [Member] | Series 2018B [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Interest rate | 5.00% | |||||||||
Minimum [Member] | Series 2018B [Member] | ||||||||||
Schedule of Capitalization [Line Items] | ||||||||||
Interest rate | 3.00% |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
First Mortgage Bonds | $ 100,910 | $ 101,411 |
Fair Value [Member] | ||
First Mortgage Bonds | $ 103,247 | $ 102,789 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic: | ||
Net Income | $ 6,552 | $ 4,494 |
Preferred Dividend | (36) | (36) |
Earnings Applicable to Common Stock | $ 6,516 | $ 4,458 |
Basic EPS | $ 0.40 | $ 0.27 |
Weighted average number of basic shares outstanding | 16,428 | 16,354 |
Diluted: | ||
Adjusted Earnings Applicable to Common Stock | $ 6,539 | $ 4,481 |
Diluted EPS | $ 0.39 | $ 0.27 |
Weighted average number of diluted shares outstanding | 16,584 | 16,510 |
Convertible Preferred Stock $7.00 Series [Member] | ||
Diluted: | ||
Preferred Dividend | $ 17 | $ 17 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 115 | 115 |
Convertible Preferred Stock $8.00 Series [Member] | ||
Diluted: | ||
Preferred Dividend | $ 6 | $ 6 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 41 | 41 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 | 2 | |
Operating Revenues | $ 30,698 | $ 31,177 | |
Operating Income | 7,028 | 6,350 | |
Net Income | 6,552 | 4,494 | |
Capital Expenditures | 12,324 | 10,011 | |
Assets | 782,973 | $ 767,830 | |
Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 27,898 | 27,206 | |
Operating Income | 6,034 | 5,625 | |
Net Income | 5,868 | 3,983 | |
Capital Expenditures | 12,293 | 9,978 | |
Assets | 780,317 | 764,749 | |
Non - Regulated [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 2,925 | 4,100 | |
Operating Income | 994 | 725 | |
Net Income | 684 | 511 | |
Capital Expenditures | 31 | 33 | |
Assets | 9,087 | 8,994 | |
Inter-segment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | (125) | $ (129) | |
Assets | $ (6,431) | $ (5,913) |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lines Of Credit Facility | ||
Established lines of credit | $ 100,000 | |
Established lines of credit, amount outstanding | $ 49,500 | |
Weighted average interest rate at period end | 3.61% | |
Average Daily Amounts Outstanding | $ 50,000 | $ 27,900 |
Weighted Average Interest Rates | 3.64% | 2.74% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)gal | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Guaranty liabilty for AWM's performance | $ 1,500 | $ 1,500 | |
Budgeted construction cost for construction program, 2018 | 112,000 | ||
Contractual construction agreements | 17,000 | ||
Rental expenses under operating leases | $ 100 | $ 100 | |
Estimated incremental borrowing rate | 4.03% | ||
Lease maturity date | 2030 | ||
NJ Water Supply Authority [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Purchase commitment expiration date of contract | Nov. 30, 2023 | ||
Water purchase per commitment | gal | 27,000,000 | ||
Regulated Water Authority [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Purchase commitment expiration date of contract | Feb. 27, 2021 | ||
Water purchase per commitment | gal | 3,000,000 | ||
City of Dover [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Water purchase per commitment | gal | 15,000,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Schedule of Purchased Water Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Purchased Water | ||
Treated | $ 770 | $ 888 |
Untreated | 861 | 930 |
Total Costs | $ 1,631 | $ 1,818 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Schedule of Operating Lease ROU Assets and Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
ROU Asset at Lease Inception | $ 7,300 |
Accumulated Amortization | (800) |
Current ROU Asset | $ 6,500 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
2019 | $ 500 | ||
2020 | 800 | ||
2021 | 800 | ||
2022 | 800 | ||
2023 | 800 | ||
Thereafter | 5,300 | ||
Total Lease Payments | 9,000 | ||
Imputed Interest | (2,100) | ||
Present Value of Lease Payments | 6,900 | ||
Less Current Portion | [1] | (600) | |
Non-Current Lease Liability | $ 6,260 | ||
[1] | Included in Other Current Liabilities |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Annual benefits paid to retired participants | $ 400 | |
Pension Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benfit plan, cash contributions | 500 | $ 500 |
Expected cash contributions | 3,100 | |
Other Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benfit plan, cash contributions | 200 | $ 200 |
Expected cash contributions | $ 1,200 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Benefits Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Pension Benefit Plan [Member] | |||
Periodic costs for employee retirement benefit plans | |||
Service Cost | $ 543 | $ 607 | |
Interest Cost | 857 | 765 | |
Expected Return on Assets | (1,173) | (1,218) | |
Amortization of Unrecognized Losses | 404 | 415 | |
Amortization of Unrecognized Prior Service Credit | |||
Net Periodic Benefit Cost | [1] | 631 | 569 |
Other Benefits Plan [Member] | |||
Periodic costs for employee retirement benefit plans | |||
Service Cost | 210 | 284 | |
Interest Cost | 496 | 474 | |
Expected Return on Assets | (613) | (637) | |
Amortization of Unrecognized Losses | 330 | 447 | |
Amortization of Unrecognized Prior Service Credit | (402) | ||
Net Periodic Benefit Cost | [1] | $ 423 | $ 166 |
[1] | Service cost is included in Operations and Maintenance expense on Consolidated Statements of Income; all other amounts are included in Other Income/Expense, net. |
Revenue Recognition from Cont_3
Revenue Recognition from Contracts with Customers (Schedule of Operating Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Regulated Tariff Sales | ||
Residential | $ 15,980 | $ 15,623 |
Commercial | 3,309 | 3,109 |
Industrial | 2,198 | 2,312 |
Fire Protection | 3,013 | 2,888 |
Wholesale | 3,339 | 3,212 |
Non-Regulated Contract Operations | 2,824 | 3,999 |
Total Revenue from Contracts with Customers | 30,663 | 31,143 |
Other Regulated Revenues | 58 | 62 |
Other Non-Regulated Revenues | 102 | 101 |
Inter-segment Elimination | (125) | (129) |
Total Revenue | $ 30,698 | $ 31,177 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Income taxes Paid | $ (266) | $ 1,182 | ||
Tax Year 2014 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net reduction in taxes due to the federal government | 17,600 | |||
Income tax refund receivable | $ 2,300 | |||
Interest expense | 300 | |||
Increase reserve provision | 3,100 | $ 4,100 | ||
Income taxes Paid | $ 800 |