For the first six months of 2018, the company reported revenues of $406.2 million compared to $391.2 million in the first half of 2017. Operations and maintenance expenses for the first half of 2018 increased to $147.5 million compared to $137.5 million in 2017.
As of June 30, Aqua reportedyear-to-date net income of $117.4 million compared to $110.0 million reported through the same period of 2017, an increase of 6.7 percent. Earnings per diluted common share were $0.66 in the first six months compared to $0.62 in the same period last year.
Acquisition growth in regulated operations
In July, Aqua completed two wastewater system acquisitions: the Village of Manteno, Illinois, serving approximately 3,800 customers, and Limerick, Pennsylvania, which serves approximately 5,400 customers. Including organic growth, the company has added more than 14,000 customers or 1.4 percent customer growth in 2018 and is on track to meet its expectation of 2 to 3 percent customer growth for the year.
The company has six additional purchase agreements in place with municipalities. As Aqua announced in July, this includes a signed $50.25 million asset purchase agreement with Cheltenham Township, Pennsylvania to purchase its wastewater system serving approximately 10,500 connections. In Pennsylvania, the company also has agreements to purchase the wastewater systems of East Bradford and New Garden, and the water system of one other township. Additionally, the company has agreements with two towns in Illinois. These include an agreement with a town for its water and wastewater system serving a combined 3,000 connections and a town whose wastewater system serves over 500 connections. When all eight of these acquisitions are complete, the company will welcome over 27,000 new customer connections to the Aqua family from municipalities.
The company’s municipal growth strategy will also benefit from new fair market value legislation recently enacted in North Carolina that will enable municipalities to sell their systems to regulated utilities and generate increased infrastructure investment in those communities.
Franklin added, “We are proud to have the opportunity to be the water and wastewater solution for so many new communities and customers. By receiving fair market valuations for water and wastewater systems, municipal leaders can greatly improve their communities’ financial position and address their most pressing local and municipal needs. We are pleased with recent legislation enacted in North Carolina, where we look forward to helping more communities as we have across our operational footprint.”
Dividend
On July 20, 2018, Aqua America’s board of directors declared a quarterly cash dividend of $0.219 per share of common stock, an increase of 7.0 percent or $0.0143, compared to the $0.2047 cash dividend the company paid in June of this year. This dividend will be payable on September 1, 2018 to shareholders of record on August 17, 2018. This marks the 28th dividend increase in the past 27 years, and the company has paid a consecutive quarterly cash dividend for more than 73 years.
