Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 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 | Sep. 30, 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 | 16,669,540 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity File Number | 0-422 | |
Entity Incorporation State or Country Code | NJ | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Operating Revenues | $ 37,769 | $ 38,713 | $ 101,859 | $ 104,809 |
Operating Expenses: | ||||
Operations and Maintenance | 17,669 | 18,114 | 50,569 | 52,773 |
Depreciation | 4,246 | 3,792 | 12,415 | 11,137 |
Other Taxes | 3,871 | 3,889 | 10,913 | 10,910 |
Total Operating Expenses | 25,786 | 25,795 | 73,897 | 74,820 |
Operating Income | 11,983 | 12,918 | 27,962 | 29,989 |
Other Income (Expense): | ||||
Allowance for Funds Used During Construction | 871 | 424 | 2,030 | 805 |
Other Income (Expense), net | (4) | 409 | (142) | 1,277 |
Total Other Income, net | 867 | 833 | 1,888 | 2,082 |
Interest Charges | 1,996 | 1,723 | 4,984 | 4,929 |
Income before Income Taxes | 10,854 | 12,028 | 24,866 | 27,142 |
Income Taxes | (265) | (262) | (952) | 1,683 |
Net Income | 11,119 | 12,290 | 25,818 | 25,459 |
Preferred Stock Dividend Requirements | 30 | 36 | 102 | 108 |
Earnings Applicable to Common Stock | $ 11,089 | $ 12,254 | $ 25,716 | $ 25,351 |
Earnings per share of Common Stock: | ||||
Basic | $ 0.67 | $ 0.75 | $ 1.56 | $ 1.55 |
Diluted | $ 0.66 | $ 0.74 | $ 1.55 | $ 1.54 |
Average Number of Common Shares Outstanding: | ||||
Basic | 16,610 | 16,394 | 16,520 | 16,379 |
Diluted | 16,757 | 16,550 | 16,673 | 16,535 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
UTILITY PLANT: | ||
Water Production | $ 157,970 | $ 156,423 |
Transmission and Distribution | 536,367 | 512,202 |
General | 80,635 | 74,371 |
Construction Work in Progress | 69,651 | 32,878 |
TOTAL | 844,623 | 775,874 |
Less Accumulated Depreciation | 166,873 | 157,387 |
UTILITY PLANT - NET | 677,750 | 618,487 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | 3,151 | 3,705 |
Accounts Receivable, net | 13,407 | 11,762 |
Unbilled Revenues | 9,417 | 7,293 |
Materials and Supplies (at average cost) | 5,159 | 5,411 |
Prepayments | 3,577 | 2,644 |
TOTAL CURRENT ASSETS | 34,711 | 30,815 |
DEFERRED CHARGES AND OTHER ASSETS: | ||
Operating Lease Right of Use Asset | 6,133 | |
Preliminary Survey and Investigation Charges | 2,252 | 5,254 |
Regulatory Assets | 100,320 | 99,236 |
Restricted Cash | 53,927 | 1,956 |
Non-utility Assets - Net | 10,306 | 9,989 |
Other | 1,954 | 2,093 |
TOTAL DEFERRED CHARGES AND OTHER ASSETS | 174,892 | 118,528 |
TOTAL ASSETS | 887,353 | 767,830 |
CAPITALIZATION: | ||
Common Stock, No Par Value | 170,562 | 157,354 |
Retained Earnings | 105,233 | 91,433 |
TOTAL COMMON EQUITY | 275,795 | 248,787 |
Preferred Stock | 2,084 | 2,433 |
Long-term Debt | 228,272 | 152,851 |
TOTAL CAPITALIZATION | 506,151 | 404,071 |
CURRENT LIABILITIES: | ||
Current Portion of Long-term Debt | 7,161 | 7,343 |
Notes Payable | 58,500 | 48,500 |
Accounts Payable | 20,178 | 19,325 |
Accrued Taxes | 12,132 | 14,230 |
Accrued Interest | 799 | 1,289 |
Unearned Revenues and Advanced Service Fees | 1,048 | 1,036 |
Other | 3,657 | 2,640 |
TOTAL CURRENT LIABILITIES | 103,475 | 94,363 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
DEFERRED CREDITS AND OTHER LIABILITIES: | ||
Customer Advances for Construction | 22,682 | 22,572 |
Operating Lease Obligation | 5,908 | |
Accumulated Deferred Income Taxes | 50,947 | 47,270 |
Employee Benefit Plans | 27,826 | 30,661 |
Regulatory Liabilities | 72,000 | 79,112 |
Other | 2,567 | 2,730 |
TOTAL DEFERRED CREDITS AND OTHER LIABILITIES | 181,930 | 182,345 |
CONTRIBUTIONS IN AID OF CONSTRUCTION | 95,797 | 87,051 |
TOTAL CAPITALIZATION AND LIABILITIES | $ 887,353 | $ 767,830 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 25,818 | $ 25,459 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 12,858 | 11,743 |
Provision for Deferred Income Taxes | (8,379) | (5,975) |
Equity Portion of Allowance for Funds Used During Construction (AFUDC) | (1,330) | (538) |
Cash Surrender Value of Life Insurance | (187) | (119) |
Stock Compensation Expense | 409 | 757 |
Changes in Assets and Liabilities: | ||
Accounts Receivable | (1,645) | (2,759) |
Unbilled Revenues | (2,124) | (2,098) |
Materials and Supplies | 252 | (1,515) |
Prepayments | (933) | (1,111) |
Accounts Payable | 853 | 5,606 |
Accrued Taxes | (2,098) | 3,400 |
Accrued Interest | (490) | (545) |
Employee Benefit Plans | (640) | (1,426) |
Unearned Revenue & Advanced Service Fees | 12 | 85 |
Other Assets and Liabilities | 972 | 1,899 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 23,348 | 32,863 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility Plant Expenditures, Including AFUDC of $700 in 2019 and $267 in 2018 | (61,220) | (49,518) |
NET CASH USED IN INVESTING ACTIVITIES | (61,220) | (49,518) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Redemption of Long-term Debt | (6,315) | (6,013) |
Proceeds from Issuance of Long-term Debt | 82,446 | 9,265 |
Net Short-term Bank Borrowings | 10,000 | 20,500 |
Deferred Debt Issuance Expense | (754) | (862) |
Common Stock Issuance Expense | (22) | |
Proceeds from Issuance of Common Stock | 12,449 | 864 |
Payment of Common Dividends | (11,893) | (10,993) |
Payment of Preferred Dividends | (102) | (108) |
Construction Advances and Contributions-Net | 3,480 | 3,140 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 89,289 | 15,793 |
NET CHANGES IN CASH AND CASH EQUIVALENTS | 51,417 | (862) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 5,661 | 6,397 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 57,078 | 5,535 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||
Utility Plant received as Construction Advances and Contributions | 5,375 | 3,028 |
Long-term Debt Deobligation | 130 | |
Cash Paid During the Year for: | ||
Interest | 5,929 | 5,090 |
Interest Capitalized | 700 | 267 |
Income Taxes | $ 6,752 | $ 3,191 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Allowance for funds used during construction | $ 700 | $ 267 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Common Stock, No Par Value | $ 170,562 | $ 157,354 |
Retained Earnings | 105,233 | 91,433 |
TOTAL COMMON EQUITY | 275,795 | 248,787 |
TOTAL PREFERRED STOCK | 2,084 | 2,433 |
SUBTOTAL LONG-TERM DEBT | 231,820 | 162,904 |
Add: Premium on Issuance of Long-term Debt | 8,164 | 1,259 |
Less: Unamortized Debt Expense | (4,551) | (3,969) |
Less: Current Portion of Long-term Debt | (7,161) | (7,343) |
TOTAL LONG-TERM DEBT | 228,272 | 152,851 |
Amortizing Secured Note, due December 20, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 715 | 924 |
Amortizing Secured Note, due May 19, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,640 | 3,955 |
Amortizing Secured Note, due August 25, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,057 | 3,267 |
Amortizing Secured Note, due September 19, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,337 | 3,547 |
State Revolving Trust Note, due December 31, 2022 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 202 | 228 |
State Revolving Trust Note, due May 1, 2025 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,519 | 1,632 |
State Revolving Trust Note, due March 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 309 | 351 |
State Revolving Trust Note, due January 25, 2027 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 349 | 389 |
State Revolving Trust Note, due December 1, 2026 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 474 | 501 |
State Revolving Trust Bond 4.00% to 5.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 60 | 111 |
State Revolving Trust Bond 0.00%, due August 1, 2021 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 50 | 88 |
State Revolving Trust Note, due July 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 225 | 235 |
State Revolving Trust Note, due January 1, 2028 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 73 | 77 |
State Revolving Trust Note, due August 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 851 | 907 |
Amortizing Secured Note, due April 20, 2029 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,343 | 3,604 |
Amortizing Secured Note 7.05%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,583 | 2,771 |
Amortizing Secured Note 5.69%, due January 20, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 5,299 | 5,684 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 9,057 | 9,387 |
Amortizing Secured Note, due April 20, 2040 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,361 | 3,483 |
State Revolving Trust Note, due July 1, 2031 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,892 | 1,954 |
State Revolving Trust Note, due February 1, 2036 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,013 | 1,064 |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 990 | 1,024 |
Construction Loans [Member] | ||
SUBTOTAL LONG-TERM DEBT | 38,171 | 16,509 |
First Mortgage Bonds - Series Z [Member] | ||
SUBTOTAL LONG-TERM DEBT | 113 | |
First Mortgage Bonds - Series AA [Member] | ||
SUBTOTAL LONG-TERM DEBT | 155 | |
First Mortgage Bonds - Series BB [Member] | ||
SUBTOTAL LONG-TERM DEBT | 241 | 362 |
First Mortgage Bonds - Series CC [Member] | ||
SUBTOTAL LONG-TERM DEBT | 331 | 489 |
First Mortgage Bonds - Series EE [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,455 | 1,876 |
First Mortgage Bonds - Series FF [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,440 | 2,980 |
First Mortgage Bonds - Series GG [Member] | ||
SUBTOTAL LONG-TERM DEBT | 633 | 723 |
First Mortgage Bonds - Series HH [Member] | ||
SUBTOTAL LONG-TERM DEBT | 710 | 795 |
First Mortgage Bonds - Series II [Member] | ||
SUBTOTAL LONG-TERM DEBT | 429 | 520 |
First Mortgage Bonds - Series JJ [Member] | ||
SUBTOTAL LONG-TERM DEBT | 588 | 671 |
First Mortgage Bonds - Series KK [Member] | ||
SUBTOTAL LONG-TERM DEBT | 807 | 898 |
First Mortgage Bonds - Series LL [Member] | ||
SUBTOTAL LONG-TERM DEBT | 928 | 1,010 |
First Mortgage Bonds - Series MM [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,037 | 1,137 |
First Mortgage Bonds - Series NN [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,190 | 1,415 |
First Mortgage Bonds - Series OO [Member] | ||
SUBTOTAL LONG-TERM DEBT | 1,806 | 1,956 |
First Mortgage Bonds - Series PP [Member] | ||
SUBTOTAL LONG-TERM DEBT | 660 | 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 | 1,957 | 2,107 |
First Mortgage Bonds - Series UU [Member] | ||
SUBTOTAL LONG-TERM DEBT | 755 | 800 |
First Mortgage Bonds - Series VV [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,003 | 2,147 |
First Mortgage Bonds - Series WW [Member] | ||
SUBTOTAL LONG-TERM DEBT | 755 | 795 |
First Mortgage Bonds - Series XX [Member] | ||
SUBTOTAL LONG-TERM DEBT | 10,627 | 11,006 |
First Mortgage Bonds - Series YY [Member] | ||
SUBTOTAL LONG-TERM DEBT | 3,785 | 3,860 |
0.00%, Series 2018A, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 6,678 | 6,917 |
3.00%-5.00%, Series 2018B, due August 1, 2047 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 2,320 | 2,365 |
4.00%, Series 2019A, due August 1, 2059 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 32,500 | |
5.00%, Series 2019B, due August 1, 2059 [Member] | ||
SUBTOTAL LONG-TERM DEBT | 21,200 | |
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 | |
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 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL STOCK AND LONG-TERM DEBT (Unaudited) (Parenthetical) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Common Stock, Shares Authorized | 40,000 | 40,000 |
Common Stock, Shares Outstanding | 16,670 | 16,403 |
Preferred Stock, Shares Authorized | 123 | 126 |
Preferred Stock, Shares Outstanding | 20 | 23 |
Due date of debt | Sep. 30, 2019 | |
Convertible Preferred Stock $7.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 10 | 10 |
Convertible Preferred Stock $8.00 Series [Member] | ||
Preferred Stock, Shares Outstanding | 0 | 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 February 1, 2036 [Member] | ||
Interest rate | 2.00% | |
Due date of debt | Feb. 1, 2036 | |
State Revolving Trust Note, due November 30, 2030 [Member] | ||
Interest rate | 3.75% | |
Due date of debt | Nov. 30, 2030 | |
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% | |
4.00%, Series 2019A, due August 1, 2059 [Member] | ||
Interest rate | 4.00% | |
Due date of debt | Aug. 1, 2059 | |
5.00%, Series 2019B, due August 1, 2059 [Member] | ||
Interest rate | 5.00% | |
Due date of debt | Aug. 1, 2059 | |
Construction Loans [Member] | ||
Interest rate | 0.00% |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) - 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 | 25,459 | 25,459 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 864 | $ 864 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 21,000 | 21,001 | |
Restricted Stock Award, Net - Employees | $ 628 | $ 628 | |
Restricted Stock Award, Net - Employees, shares | 23,000 | ||
Stock Award - Board Of Directors | $ 147 | 147 | |
Stock Award - Board Of Directors, shares | 4,000 | ||
Shares Forfeited | $ (18) | (18) | |
Shares Forfeited, shares | (2,000) | ||
Cash Dividends on Common Stock | (10,993) | (10,993) | |
Cash Dividends on Common Stock, shares | |||
Cash Dividends on Preferred Stock | (108) | (108) | |
Cash Dividends on Preferred Stock, shares | |||
Balance at Sep. 30, 2018 | $ 156,741 | 88,413 | 245,154 |
Balance, shares at Sep. 30, 2018 | 16,398,000 | ||
Balance at Jun. 30, 2018 | $ 156,251 | 79,828 | 236,077 |
Balance, shares at Jun. 30, 2018 | 16,392,000 | ||
Net Income | 12,290 | 12,290 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 266 | 266 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 8,000 | ||
Restricted Stock Award, Net - Employees | $ 242 | 242 | |
Restricted Stock Award, Net - Employees, shares | |||
Shares Forfeited | $ (18) | (18) | |
Shares Forfeited, shares | (2,000) | ||
Cash Dividends on Common Stock | (3,667) | (3,667) | |
Cash Dividends on Common Stock, shares | |||
Cash Dividends on Preferred Stock | (36) | (36) | |
Cash Dividends on Preferred Stock, shares | |||
Balance at Sep. 30, 2018 | $ 156,741 | 88,413 | 245,154 |
Balance, shares at Sep. 30, 2018 | 16,398,000 | ||
Balance at Dec. 31, 2018 | $ 157,354 | 91,433 | 248,787 |
Balance, shares at Dec. 31, 2018 | 16,403,000 | ||
Net Income | 25,818 | 25,818 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 12,449 | $ 12,449 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 222,000 | 221,558 | |
Restricted Stock Award, Net - Employees | $ 679 | $ 679 | |
Restricted Stock Award, Net - Employees, shares | 18,000 | ||
Stock Award - Board Of Directors | $ 196 | 196 | |
Stock Award - Board Of Directors, shares | 4,000 | ||
Shares Forfeited | $ (466) | (466) | |
Shares Forfeited, shares | (18,000) | ||
Conversion of $8.00 Convertible Preferred Stock | $ 350 | 350 | |
Conversion of $8.00 Convertible Preferred Stock, shares | 41,000 | ||
Cash Dividends on Common Stock | (11,893) | (11,893) | |
Cash Dividends on Common Stock, shares | |||
Cash Dividends on Preferred Stock | (102) | (102) | |
Cash Dividends on Preferred Stock, shares | |||
Common Stock Expenses | (23) | (23) | |
Common Stock Expenses, shares | |||
Balance at Sep. 30, 2019 | $ 170,562 | 105,233 | 275,795 |
Balance, shares at Sep. 30, 2019 | 16,670,000 | ||
Balance at Jun. 30, 2019 | $ 165,138 | 98,146 | 263,284 |
Balance, shares at Jun. 30, 2019 | 16,554,000 | ||
Net Income | 11,119 | 11,119 | |
Dividend Reinvestment & Common Stock Purchase Plan | $ 5,368 | 5,368 | |
Dividend Reinvestment & Common Stock Purchase Plan, shares | 92,000 | ||
Restricted Stock Award, Net - Employees | $ 172 | 172 | |
Restricted Stock Award, Net - Employees, shares | 1,000 | ||
Shares Forfeited | $ (466) | (466) | |
Shares Forfeited, shares | (18,000) | ||
Conversion of $8.00 Convertible Preferred Stock | $ 350 | 350 | |
Conversion of $8.00 Convertible Preferred Stock, shares | 41,000 | ||
Cash Dividends on Common Stock | (3,987) | (3,987) | |
Cash Dividends on Common Stock, shares | |||
Cash Dividends on Preferred Stock | (30) | (30) | |
Cash Dividends on Preferred Stock, shares | |||
Common Stock Expenses | (15) | (15) | |
Common Stock Expenses, shares | |||
Balance at Sep. 30, 2019 | $ 170,562 | $ 105,233 | $ 275,795 |
Balance, shares at Sep. 30, 2019 | 16,670,000 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid, per share | $ 0.2400 | $ 0.2238 | $ 0.7200 | $ 0.6713 |
Conversion price | $ 8 | $ 8 |
Basis of Presentation and Recen
Basis of Presentation and Recent Developments | 9 Months Ended |
Sep. 30, 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 (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 September 30, 2019 and the results of operations and cash flows for the three month and nine month periods ended September 30, 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. Recent Developments Tidewater to Acquire Water Systems 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 | 9 Months Ended |
Sep. 30, 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 - Twin Lakes - |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2019 | |
CAPITALIZATION: | |
Capitalization | Note 3 – Capitalization Common Stock - In September 2019, the Company determined it had inadvertently sold shares of its common stock through the Investment Plan from August 1, 2018 through September 3, 2019 (Eligible Period) after the registration statement covering sales through the Investment Plan had expired and therefore was no longer effective. Under applicable federal securities laws, participants in the Investment Plan who purchased shares of common stock have a right to rescind their Eligible Period purchases and require the Company to repurchase these shares for an amount equal to the price paid by the participant, less any dividends paid on the purchased shares, plus interest. In October 2019, the Company’s Board of Directors approved a plan to voluntarily offer a right of rescission (Rescission Offer) to Investment Plan participants who purchased shares of the Company’s common stock during the Eligible Period. During the Eligible Period, Investment Plan participants purchased 232,643 shares at an average price of $55.79 per share. On October 11, 2019, the Company filed a supplement to the Investment Plan prospectus (Prospectus Supplement) with the United States Securities and Exchange Commission registering the Rescission Offer and notifying eligible Investment Plan participants of the specific details of the Rescission Offer. By filing the Prospectus Supplement the 232,643 previously unregistered shares are deemed registered. Investment Plan participants have thirty (30) days from the notification date to decide to accept or reject the Rescission Offer. Based on the current market price of the Company’s common stock, the Company does not expect that the exercise of any applicable rescission rights under the Rescission Offer by participants will have a material impact on its results of operations, financial condition or liquidity. For the nine months ended September 30, 2019, 3,000 shares (approximately $0.3 million) of the Company’s no par $8.00 Series Cumulative and Convertible Preferred Stock were converted into 41,142 shares of common stock. In May 2019, Middlesex received approval from the NJBPU to issue and sell up to 1,500,000 shares of its common stock in one or more transactions through December 31, 2022. Sales of additional shares of common stock are 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 - The NJIB generally schedules its long-term debt financings in May and November. Middlesex currently has two projects that are in the construction loan phase of New Jersey SRF program: 1) 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 September 30, 2019, Middlesex has drawn a total of $30.2 million and expects to draw down the remaining proceeds through the first quarter of 2020. 2) In March 2018, the NJBPU approved Middlesex’s request to participate in the NJIB loan 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 September 30, 2019, Middlesex has drawn a total of $8.0 million and drew the remaining proceeds in October 2019. The Company expects that the large-diameter transmission pipeline and the 2018 RENEW construction loans will be included in the NJIB May 2020 long-term debt financing program. In May 2018, Middlesex repaid its RENEW 2017 interest-free construction loan by issuing to the NJIB first mortgage bonds in the amount of $9.5 million 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%. The final maturity date for both bonds is August 1, 2047, with scheduled debt service payments over the life of the loans. In 2019, the NJIB de-obligated principal payments of $0.1 million on Series NN of the Company’s First Mortgage Bonds. 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 (FMB) through the NJEDA in one or more transactions through December 31, 2022. Because the interest paid to the bondholders is exempt from federal and New Jersey income taxes, the interest rate on debt issued through the NJEDA is generally lower than otherwise achievable in the traditional taxable corporate bond market. However, the interest received by the bondholder is subject to the Alternative Minimum Tax. In August 2019, Middlesex priced and closed on a NJEDA debt financing transaction of $53.7 million by issuing FMBs designated as Series 2019A ($32.5 million at coupon interest rate of 4.0%) and Series 2019B ($21.2 million at coupon interest rate of 5.0%). The proceeds, including an issuance premium of $7.1 million, are being used to finance several projects under the Water For Tomorrow capital program initiated by the Company to upgrade and replace aging water utility infrastructure. The total proceeds of $60.8 million, initially recorded as Restricted Cash on the balance sheet, is held in escrow by a bond trustee and are drawn down by requisition for the qualifying projects. Through September 30, 2019, Middlesex has drawn a total of $7.6 million and currently expects to draw the remaining $53.2 million of proceeds, currently included in Restricted Cash, through the third quarter of 2021. 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 community. 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. Tidewater closed on the additional SRF loan in October 2019 and immediately began drawing on the combined loan amount with expected draws continuing through the first quarter of 2020. Fair Value of Financial Instruments - September 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $151,361 $154,355 $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 $80.5 million and $61.5 million at September 30, 2019 and December 31, 2018, respectively. Customer advances for construction have carrying amounts of $22.7 million and $22.6 million at September 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2019 2018 Basic: Income Shares Income Shares Net Income $ 11,119 16,610 $ 12,290 16,394 Preferred Dividend (30 ) (36 ) Earnings Applicable to Common Stock $ 11,089 16,610 $ 12,254 16,394 Basic EPS $ 0.67 $ 0.75 Diluted: Earnings Applicable to Common Stock $ 11,089 16,610 $ 12,254 16,394 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend — 32 6 41 Adjusted Earnings Applicable to Common Stock $ 11,106 16,757 $ 12,277 16,550 Diluted EPS $ 0.66 $ 0.74 (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2019 2018 Basic: Income Shares Income Shares Net Income $ 25,818 16,520 $ 25,459 16,379 Preferred Dividend (102 ) (108 ) Earnings Applicable to Common Stock $ 25,716 16,520 $ 25,351 16,379 Basic EPS $ 1.56 $ 1.55 Diluted: Earnings Applicable to Common Stock $ 25,716 16,520 $ 25,351 16,379 $7.00 Series Preferred Dividend 50 115 50 115 $8.00 Series Preferred Dividend 12 38 18 41 Adjusted Earnings Applicable to Common Stock $ 25,778 16,673 $ 25,419 16,535 Diluted EPS $ 1.55 $ 1.54 |
Business Segment Data
Business Segment Data | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, Operations by Segments: 2019 2018 2019 2018 Revenues: Regulated $ 35,000 $ 34,628 $ 93,342 $ 93,002 Non – Regulated 3,020 4,304 9,032 12,286 Inter-segment Elimination (251 ) (219 ) (515 ) (479 ) Consolidated Revenues $ 37,769 $ 38,713 $ 101,859 $ 104,809 Operating Income: Regulated $ 11,001 $ 12,214 $ 24,937 $ 27,827 Non – Regulated 982 704 3,025 2,162 Consolidated Operating Income $ 11,983 $ 12,918 $ 27,962 $ 29,989 Net Income: Regulated $ 10,409 $ 11,770 $ 23,700 $ 23,904 Non – Regulated 710 520 2,118 1,555 Consolidated Net Income $ 11,119 $ 12,290 $ 25,818 $ 25,459 Capital Expenditures: Regulated $ 25,437 $ 21,141 $ 60,998 $ 49,469 Non – Regulated 85 — 222 49 Total Capital Expenditures $ 25,522 $ 21,141 $ 61,220 $ 49,518 As of As of September 30, December 31, 2019 2018 Assets: Regulated $ 886,280 $ 764,749 Non – Regulated 9,593 8,994 Inter-segment Elimination (8,520 ) (5,913 ) Consolidated Assets $ 887,353 $ 767,830 |
Short-term Borrowings
Short-term Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Note 6 – Short-term Borrowings As of September 30, 2019, the Company retained lines of credit aggregating $120.0 million, an increase of $20.0 million from June 30, 2019. In October 2019, the Company increased its lines of credit to $140.0 million. At September 30, 2019, the outstanding borrowings under these credit lines were $58.5 million at a weighted average interest rate of 3.06%. The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Average Daily Amounts Outstanding $ 58,259 $ 43,402 $ 56,881 $ 34,332 Weighted Average Interest Rates 3.26% 3.24% 3.45% 3.09% The maturity dates for the $58.5 million outstanding as of September 30, 2019 are in October 2019 through December 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 | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Treated $ 818 $ 836 $ 2,415 $ 2,427 Untreated 878 948 2,521 2,728 Total Costs $ 1,696 $ 1,784 $ 4,936 $ 5,155 Guarantees - If required 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 September 30, 2019 and December 31, 2018, the liability recognized in Other Non-Current Liabilities on the balance sheet for the guaranty is approximately $1.4 million and $1.5 million, respectively. 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 was $0.2 million for each of the three months ended September 30, 2019 and 2018, respectively, and $0.5 million and $0.3 million for the nine months ended September 30, 2019 and 2018, respectively. Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) September 30, 2019 ROU Asset at Lease Inception $ 7.3 Accumulated Amortization (1.2 ) Current ROU Asset $ 6.1 The Company’s future minimum operating lease commitments as of September 30, 2019 are as follows: (In Millions) September 30, 2019 2019 $ 0.2 2020 0.8 2021 0.8 2022 0.8 2023 0.8 Thereafter 5.2 Total Lease Payments $ 8.6 Imputed Interest (2.0 ) Present Value of Lease Payments 6.6 Less Current Portion* (0.7 ) Non-Current Lease Liability $ 5.9 *Included in Other Current Liabilities Construction Litigation Change in Control Agreements |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 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 September 30, 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 Cost (Credit) — — — (402 ) Net Periodic Benefit Cost* $ 631 $ 569 $ 423 $ 166 (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2019 2018 2019 2018 Service Cost $ 1,628 $ 1,820 $ 630 $ 851 Interest Cost 2,570 2,296 1,488 1,423 Expected Return on Assets (3,520 ) (3,653 ) (1,838 ) (1,912 ) Amortization of Unrecognized Losses 1,213 1,244 989 1,340 Amortization of Unrecognized Prior Service Cost (Credit) — — — (1,205 ) Net Periodic Benefit Cost* $ 1,891 $ 1,707 $ 1,269 $ 497 *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 | 9 Months Ended |
Sep. 30, 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 and 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Regulated Tariff Sales Residential $ 20,693 $ 19,788 $ 54,453 $ 53,303 Commercial 4,487 4,418 11,539 11,298 Industrial 2,723 2,868 7,242 7,869 Fire Protection 3,100 3,084 9,211 9,045 Wholesale 3,813 4,319 10,582 11,211 Non-Regulated Contract Operations 2,919 4,203 8,729 11,983 Total Revenue from Contracts with Customers $ 37,735 $ 38,680 $ 101,756 $ 104,709 Other Regulated Revenues 184 151 315 276 Other Non-Regulated Revenues 101 101 303 303 Inter-segment Elimination (251 ) (219 ) (515 ) (479 ) Total Revenue $ 37,769 $ 38,713 $ 101,859 $ 104,809 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 2018, the Company increased its income tax 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. In March 2019 and June 2019, the Company paid $0.8 million in income taxes and $0.1 million in interest, respectively, in connection with the conclusion and closing of the 2014 and 2015 tax return audits. As of September 30, 2019, the Company has reduced its income tax reserve provision and interest expense liability to $2.4 million and $0.1 million, respectively. In October 2019, the Company paid $1.9 million in income taxes in connection with the conclusion and closing of the 2016 and 2017 tax return audits. |
Capitalization (Tables)
Capitalization (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
CAPITALIZATION: | |
Schedule of carrying amount and fair value of bonds | The carrying amount and fair value of the Bonds were as follows: September 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Amount Value Amount Value Bonds $151,361 $154,355 $101,411 $102,789 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2019 2018 Basic: Income Shares Income Shares Net Income $ 11,119 16,610 $ 12,290 16,394 Preferred Dividend (30 ) (36 ) Earnings Applicable to Common Stock $ 11,089 16,610 $ 12,254 16,394 Basic EPS $ 0.67 $ 0.75 Diluted: Earnings Applicable to Common Stock $ 11,089 16,610 $ 12,254 16,394 $7.00 Series Preferred Dividend 17 115 17 115 $8.00 Series Preferred Dividend — 32 6 41 Adjusted Earnings Applicable to Common Stock $ 11,106 16,757 $ 12,277 16,550 Diluted EPS $ 0.66 $ 0.74 (In Thousands Except per Share Amounts) Nine Months Ended September 30, 2019 2018 Basic: Income Shares Income Shares Net Income $ 25,818 16,520 $ 25,459 16,379 Preferred Dividend (102 ) (108 ) Earnings Applicable to Common Stock $ 25,716 16,520 $ 25,351 16,379 Basic EPS $ 1.56 $ 1.55 Diluted: Earnings Applicable to Common Stock $ 25,716 16,520 $ 25,351 16,379 $7.00 Series Preferred Dividend 50 115 50 115 $8.00 Series Preferred Dividend 12 38 18 41 Adjusted Earnings Applicable to Common Stock $ 25,778 16,673 $ 25,419 16,535 Diluted EPS $ 1.55 $ 1.54 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, Operations by Segments: 2019 2018 2019 2018 Revenues: Regulated $ 35,000 $ 34,628 $ 93,342 $ 93,002 Non – Regulated 3,020 4,304 9,032 12,286 Inter-segment Elimination (251 ) (219 ) (515 ) (479 ) Consolidated Revenues $ 37,769 $ 38,713 $ 101,859 $ 104,809 Operating Income: Regulated $ 11,001 $ 12,214 $ 24,937 $ 27,827 Non – Regulated 982 704 3,025 2,162 Consolidated Operating Income $ 11,983 $ 12,918 $ 27,962 $ 29,989 Net Income: Regulated $ 10,409 $ 11,770 $ 23,700 $ 23,904 Non – Regulated 710 520 2,118 1,555 Consolidated Net Income $ 11,119 $ 12,290 $ 25,818 $ 25,459 Capital Expenditures: Regulated $ 25,437 $ 21,141 $ 60,998 $ 49,469 Non – Regulated 85 — 222 49 Total Capital Expenditures $ 25,522 $ 21,141 $ 61,220 $ 49,518 As of As of September 30, December 31, 2019 2018 Assets: Regulated $ 886,280 $ 764,749 Non – Regulated 9,593 8,994 Inter-segment Elimination (8,520 ) (5,913 ) Consolidated Assets $ 887,353 $ 767,830 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Short-term Debt [Abstract] | |
Schedule of information regarding short-term borrowings | The weighted average daily amounts of borrowings outstanding under the Company’s credit lines and the weighted average interest rates on those amounts were as follows: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Average Daily Amounts Outstanding $ 58,259 $ 43,402 $ 56,881 $ 34,332 Weighted Average Interest Rates 3.26% 3.24% 3.45% 3.09% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of purchased water cost | Purchased water costs are shown below: (In Thousands) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Treated $ 818 $ 836 $ 2,415 $ 2,427 Untreated 878 948 2,521 2,728 Total Costs $ 1,696 $ 1,784 $ 4,936 $ 5,155 |
Schedule of operating lease ROU assets and lease liabilities | Information related to operating lease ROU assets and lease liabilities is as follows: (In Millions) September 30, 2019 ROU Asset at Lease Inception $ 7.3 Accumulated Amortization (1.2 ) Current ROU Asset $ 6.1 |
Schedule of future minimum operating lease | The Company’s future minimum operating lease commitments as of September 30, 2019 are as follows: (In Millions) September 30, 2019 2019 $ 0.2 2020 0.8 2021 0.8 2022 0.8 2023 0.8 Thereafter 5.2 Total Lease Payments $ 8.6 Imputed Interest (2.0 ) Present Value of Lease Payments 6.6 Less Current Portion* (0.7 ) Non-Current Lease Liability $ 5.9 *Included in Other Current Liabilities |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 Cost (Credit) — — — (402 ) Net Periodic Benefit Cost* $ 631 $ 569 $ 423 $ 166 (In Thousands) Pension Benefits Other Benefits Nine Months Ended September 30, 2019 2018 2019 2018 Service Cost $ 1,628 $ 1,820 $ 630 $ 851 Interest Cost 2,570 2,296 1,488 1,423 Expected Return on Assets (3,520 ) (3,653 ) (1,838 ) (1,912 ) Amortization of Unrecognized Losses 1,213 1,244 989 1,340 Amortization of Unrecognized Prior Service Cost (Credit) — — — (1,205 ) Net Periodic Benefit Cost* $ 1,891 $ 1,707 $ 1,269 $ 497 *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) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Regulated Tariff Sales Residential $ 20,693 $ 19,788 $ 54,453 $ 53,303 Commercial 4,487 4,418 11,539 11,298 Industrial 2,723 2,868 7,242 7,869 Fire Protection 3,100 3,084 9,211 9,045 Wholesale 3,813 4,319 10,582 11,211 Non-Regulated Contract Operations 2,919 4,203 8,729 11,983 Total Revenue from Contracts with Customers $ 37,735 $ 38,680 $ 101,756 $ 104,709 Other Regulated Revenues 184 151 315 276 Other Non-Regulated Revenues 101 101 303 303 Inter-segment Elimination (251 ) (219 ) (515 ) (479 ) Total Revenue $ 37,769 $ 38,713 $ 101,859 $ 104,809 |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Developments (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Regulatory Liabilities [Line Items] | ||
Deferred income tax benefits | $ (8,379) | $ (5,975) |
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 | $ 500 | |
Corporate tax rate | 3.35% | |
Base rate amount | $ 1,000 | |
Line of credit | 700 | |
Pinelands Water Company [Member] | New Jersey Board Of Public Utilities [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | 500 | |
Pinelands Wastewater [Member] | New Jersey Board Of Public Utilities [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | 700 | |
Twin Lakes [Member] | Pennsylvania Public Utilities Commissio [Member] | ||
Regulatory Liabilities [Line Items] | ||
Approved increase in annual operating revenues | $ 200 |
Capitalization (Narrative) (Det
Capitalization (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Oct. 31, 2019 | Aug. 31, 2019 | May 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 31, 2019 | Apr. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Mar. 31, 2018 | |
Schedule of Capitalization [Line Items] | |||||||||||||
Issuance of shares under the DRP, shares | 221,558 | 21,001 | |||||||||||
Issuance of shares under the DRP | $ 5,368 | $ 266 | $ 12,449 | $ 864 | |||||||||
Common stock granted and issued under plan | 200,000 | ||||||||||||
Percentage of offering shares on discount to participants | 5.00% | ||||||||||||
Convertible Preferred Stock Converted | 41,142 | 41,142 | |||||||||||
Due date of debt | Sep. 30, 2019 | ||||||||||||
Other long term debt | $ 80,500 | $ 80,500 | $ 61,500 | ||||||||||
Customer advances | $ 22,682 | 22,682 | $ 22,572 | ||||||||||
Amount drawn | 82,446 | 9,265 | |||||||||||
Deobligated principal payments | $ 130 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Number of shares purchased | 232,643 | ||||||||||||
Average price per share | $ 55.79 | ||||||||||||
Series Cumulative Preferred Stock [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Number of shares purchased | 3,000 | ||||||||||||
Number of shares purchased value | $ 300,000 | ||||||||||||
No par value | $ 8 | $ 8 | |||||||||||
New Jersey NJIB Program [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 8,700 | $ 8,700 | |||||||||||
Delaware State Revolving Fund [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing amount | $ 900 | ||||||||||||
Maximum borrowing capacity, construction loan | $ 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 | ||||||||||||
Series 2019A [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 32,500 | ||||||||||||
Interest rate | 4.00% | ||||||||||||
Series 2019B [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 21,200 | ||||||||||||
Interest rate | 5.00% | ||||||||||||
New Jersey Infrastructure Bank [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 9,500 | $ 140,000 | $ 43,500 | ||||||||||
Interest rate | 0.00% | 0.00% | |||||||||||
Percentage of principal with stated interest rate | 75.00% | ||||||||||||
Percentage of principal with market interest rate | 25.00% | ||||||||||||
Deobligated principal payments | $ 100 | ||||||||||||
Amount of drawn expected remaining | 8,000 | ||||||||||||
Middlesex [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 30,200 | 30,200 | |||||||||||
First Mortgage Bonds [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Maximum borrowing capacity, construction loan | $ 53,700 | $ 60,800 | 60,800 | ||||||||||
Amount drawn | 7,600 | ||||||||||||
Proceeds from issuance premium | $ 7,100 | ||||||||||||
Amount of drawn expected remaining | $ 53,200 | ||||||||||||
Maximum [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
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% | ||||||||||||
New Jersey Board Of Public Utilities [Member] | |||||||||||||
Schedule of Capitalization [Line Items] | |||||||||||||
Authorized shares under plan | 1,500,000 |
Capitalization (Schedule of Car
Capitalization (Schedule of Carrying Amount and Fair Value of Bonds) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
First Mortgage Bonds | $ 151,361 | $ 101,411 |
Fair Value [Member] | ||
First Mortgage Bonds | $ 154,355 | $ 102,789 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic: | ||||
Net Income | $ 11,119 | $ 12,290 | $ 25,818 | $ 25,459 |
Preferred Dividend | (30) | (36) | (102) | (108) |
Earnings Applicable to Common Stock | $ 11,089 | $ 12,254 | $ 25,716 | $ 25,351 |
Basic EPS | $ 0.67 | $ 0.75 | $ 1.56 | $ 1.55 |
Weighted average number of basic shares outstanding | 16,610 | 16,394 | 16,520 | 16,379 |
Diluted: | ||||
Adjusted Earnings Applicable to Common Stock | $ 11,106 | $ 12,277 | $ 25,778 | $ 25,419 |
Diluted EPS | $ 0.66 | $ 0.74 | $ 1.55 | $ 1.54 |
Weighted average number of diluted shares outstanding | 16,757 | 16,550 | 16,673 | 16,535 |
Convertible Preferred Stock $7.00 Series [Member] | ||||
Diluted: | ||||
Preferred Dividend | $ 17 | $ 17 | $ 50 | $ 50 |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 115 | 115 | 115 | 115 |
Convertible Preferred Stock $8.00 Series [Member] | ||||
Diluted: | ||||
Preferred Dividend | $ 6 | $ 12 | $ 18 | |
Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock (in shares) | 32 | 41 | 38 | 41 |
Business Segment Data (Details)
Business Segment Data (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | 2 | 2 | 2 | 2 | |
Operating Revenues | $ 37,769 | $ 38,713 | $ 101,859 | $ 104,809 | |
Operating Income | 11,983 | 12,918 | 27,962 | 29,989 | |
Net Income | 11,119 | 12,290 | 25,818 | 25,459 | |
Capital Expenditures | 25,522 | 21,141 | 61,220 | 49,518 | |
Assets | 887,353 | 887,353 | $ 767,830 | ||
Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 35,000 | 34,628 | 93,342 | 93,002 | |
Operating Income | 11,001 | 12,214 | 24,937 | 27,827 | |
Net Income | 10,409 | 11,770 | 23,700 | 23,904 | |
Capital Expenditures | 25,437 | 21,141 | 60,998 | 49,469 | |
Assets | 886,280 | 886,280 | 764,749 | ||
Non - Regulated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 3,020 | 4,304 | 9,032 | 12,286 | |
Operating Income | 982 | 704 | 3,025 | 2,162 | |
Net Income | 710 | 520 | 2,118 | 1,555 | |
Capital Expenditures | 85 | 222 | 49 | ||
Assets | 9,593 | 9,593 | 8,994 | ||
Inter-segment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | (251) | $ (219) | (515) | $ (479) | |
Assets | $ (8,520) | $ (8,520) | $ (5,913) |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lines Of Credit Facility | |||||
Established lines of credit | $ 120,000 | $ 120,000 | |||
Increase in lines of credit | 20,000 | ||||
Established lines of credit, amount outstanding | $ 58,500 | $ 58,500 | |||
Weighted average interest rate at period end | 3.06% | 3.06% | |||
Average Daily Amounts Outstanding | $ 58,259 | $ 43,402 | $ 56,881 | $ 34,332 | |
Weighted Average Interest Rates | 3.26% | 3.24% | 3.45% | 3.09% | |
Maturity date | Sep. 30, 2019 | ||||
Subsequent Event [Member] | |||||
Lines Of Credit Facility | |||||
Increase in lines of credit | $ 140,000 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)gal | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Guaranty liabilty for AWM's performance | $ 1,400 | $ 1,400 | $ 1,500 | ||
Budgeted construction cost for construction program, 2019 | 105,000 | ||||
Contractual construction agreements | 68,000 | ||||
Rental expenses under operating leases | $ 200 | $ 200 | $ 500 | $ 300 | |
Estimated incremental borrowing rate | 4.03% | 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Purchased Water | ||||
Treated | $ 818 | $ 836 | $ 2,415 | $ 2,427 |
Untreated | 878 | 948 | 2,521 | 2,728 |
Total Costs | $ 1,696 | $ 1,784 | $ 4,936 | $ 5,155 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Schedule of Operating Lease ROU Assets and Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
ROU Asset at Lease Inception | $ 7,300 |
Accumulated Amortization | (1,200) |
Current ROU Asset | $ 6,100 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Schedule of Future Minimum Operating Lease) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
2019 | $ 200 | ||
2020 | 800 | ||
2021 | 800 | ||
2022 | 800 | ||
2023 | 800 | ||
Thereafter | 5,200 | ||
Total Lease Payments | 8,600 | ||
Imputed Interest | (2,000) | ||
Present Value of Lease Payments | 6,600 | ||
Less Current Portion | [1] | (700) | |
Non-Current Lease Liability | $ 5,908 | ||
[1] | Included in Other Current Liabilities |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 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 | $ 1,300 | $ 1,100 | 2,300 | $ 2,300 |
Expected cash contributions | 1,300 | 1,300 | ||
Other Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benfit plan, cash contributions | 200 | $ 200 | 600 | $ 500 |
Expected cash contributions | $ 800 | $ 800 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Benefits Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Pension Benefit Plan [Member] | |||||
Periodic costs for employee retirement benefit plans | |||||
Service Cost | $ 543 | $ 607 | $ 1,628 | $ 1,820 | |
Interest Cost | 857 | 765 | 2,570 | 2,296 | |
Expected Return on Assets | (1,173) | (1,218) | (3,520) | (3,653) | |
Amortization of Unrecognized Losses | 404 | 415 | 1,213 | 1,244 | |
Amortization of Unrecognized Prior Service Cost (Credit) | |||||
Net Periodic Benefit Cost | [1] | 631 | 569 | 1,891 | 1,707 |
Other Benefits Plan [Member] | |||||
Periodic costs for employee retirement benefit plans | |||||
Service Cost | 210 | 284 | 630 | 851 | |
Interest Cost | 496 | 474 | 1,488 | 1,423 | |
Expected Return on Assets | (613) | (637) | (1,838) | (1,912) | |
Amortization of Unrecognized Losses | 330 | 447 | 989 | 1,340 | |
Amortization of Unrecognized Prior Service Cost (Credit) | (402) | (1,205) | |||
Net Periodic Benefit Cost | [1] | $ 423 | $ 166 | $ 1,269 | $ 497 |
[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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Regulated Tariff Sales | ||||
Residential | $ 20,693 | $ 19,788 | $ 54,453 | $ 53,303 |
Commercial | 4,487 | 4,418 | 11,539 | 11,298 |
Industrial | 2,723 | 2,868 | 7,242 | 7,869 |
Fire Protection | 3,100 | 3,084 | 9,211 | 9,045 |
Wholesale | 3,813 | 4,319 | 10,582 | 11,211 |
Non-Regulated Contract Operations | 2,919 | 4,203 | 8,729 | 11,983 |
Total Revenue from Contracts with Customers | 37,735 | 38,680 | 101,756 | 104,709 |
Other Regulated Revenues | 184 | 151 | 315 | 276 |
Other Non-Regulated Revenues | 101 | 101 | 303 | 303 |
Inter-segment Elimination | (251) | (219) | (515) | (479) |
Total Revenue | $ 37,769 | $ 38,713 | $ 101,859 | $ 104,809 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Oct. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||||||
Income taxes Paid | $ (265) | $ (262) | $ (952) | $ 1,683 | |||||
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 | ||||||||
Redused reserve provision | 2,400 | 2,400 | $ 4,100 | ||||||
Income taxes Paid | $ 800 | ||||||||
Interest expense liability | $ 100 | $ 100 | |||||||
Tax Year 2015 [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income taxes Paid | $ 100 | ||||||||
Tax Year 2016 [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income taxes Paid | $ 1,900 | ||||||||
Tax Year 2017 [Member] | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income taxes Paid | $ 1,900 |