Aqua America (WTR:NYSE - commentary - research - Cramer's Take) bought four water systems in Illinois, North Carolina and Pennsylvania for $550,000.
The Bryn Mawr, Pa., company said its Aqua Illinois unit bought the water system assets of the Village of Philo in Champaign County, marking the company's second municipal acquisition in Illinois in two years. The Philo system supplies water to 1,300 residents. Aqua Illinois plans to invest in a new water tank, replace aging and undersized pipe, and install new services at a cost of more than $1.2 million over the rest of the decade.
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Its Aqua Pennsylvania unit bought the water systems assets of the Garbush Water, serving 250 residents in Jackson Township, Luzerne County.
In North Carolina, Aqua subsidiaries acquired the water system assets of the Northwoods residential development near Chapel Hill, Orange County, serving 250 residents, and the water system assets of Community Water Works in Statesville, Iredell County, serving another 250 residents in the Lincoln Estates and River Hill Heights subdivisions. Aqua North Carolina plans to invest nearly $130,000 in the Community Water Works systems for new water main and meters, in addition to a well station, a storage tank and connection to the Iredell County water system.
These purchases are in addition to the company's acquisition of 24 water and wastewater systems through the first three quarters of 2005.
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Updated: 10:42 AM EST Aqua America Posts Higher 3Q Profit
BRYN MAWR, Pa. (AP) - Aqua America Inc., a water utility, on Wednesday posted a 16 percent increase in its third-quarter income on higher water rates.
Net income climbed to $27.9 million, or 29 cents per share, versus $24.1 million, or 26 cents per share, last year. Revenue jumped 14 percent to $136.8 million from $120.3 million.
Analysts surveyed by Thomson Financial were looking for a 29-cent-per-share profit on sales of $134.8 million.
Chief Executive Nicholas DeBenedictis said sales rose as water use returned to normal levels from May to September and as key states allowed the water utility to raise its prices.
Shares of the company added 11 cents to $33.89 in morning trading on the New York Stock Exchange.
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Updated: 02:49 PM EST Aqua Pennsylvania Files Rate Request; With Increase, Cost for Water Remains One Cent Per Gallon
BRYN MAWR, Pa.--(BUSINESS WIRE)----Aqua Pennsylvania, Inc. (Aqua) filed an application with the Pennsylvania Public Utility Commission (PUC) today requesting a $5.44 a month (18 cents a day) increase in rates for a typical residential customer. Although the request--which would bring a typical monthly residential bill to $43.30--asks that the new rates become effective January 18, 2006, the PUC typically suspends such requests for up to nine months (August 18, 2006) to permit a complete investigation and analysis.
Aqua Vice President Kathy Pape said that the primary reason for the rate request is the quarter billion dollars the company has invested in capital improvements since its last rate request and that approximately 80 percent of the company's request is related to its capital investment. "We've invested $274.5 million for capital improvement projects throughout the state over the last two years," explained Pape. "The money has been spent on the replacement of aging water pipes and the construction of storage tanks to provide improved water pressure and fire protection and reliable service. Aqua also made major upgrades to its water treatment facilities to continue to meet all Environmental Protection Agency (EPA) standards, and installed a new state-of-the-art radio frequency metering system for efficiency and convenience. With 400,000 customers throughout Pennsylvania, that's an average investment of about $685 per customer--much more than most residential customers pay annually for water."
According to the EPA, over the next 20 years, the nation's water systems need to invest about $277 billion for pipes, tanks, valves and treatment plants. Pape said that Aqua has taken a proactive approach to this nationwide problem by systematically replacing about one percent of its distribution system annually. Additionally, its treatment plants and other facilities are upgraded and maintained on a regular basis.
"We believe it's less expensive to make regular, ongoing improvements rather than defer maintenance and run the risk of water quality and service reliability issues in the future. Our customers benefit from our proactive approach, which increases reliability by reducing the potential for service interruptions," said Pape. "I suspect very few of our 400,000 customers can recall the last time they were without water."
If the PUC were to grant the entire request, a typical Aqua residential customer would still be able to have a day's worth of water (approximately 150 gallons) for approximately $1.45--less than the cost of one liter of premium bottled water. Pape noted that, "Even if the commission were to grant our entire increase, customers would still be able to have water delivered directly to their taps for one penny per gallon."
The total annual revenue request for Aqua, which serves a total of 1.4 million residents throughout the state, is $38.8 million.
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Updated: 11:17 AM EST Aqua America Subsidiary Invests $4.2 Million to Acquire New Jersey Water System; Purchase marks company's first entry in Ocean County
BRYN MAWR, Pa.--(BUSINESS WIRE)----Aqua America, Inc. (NYSE:WTR) announced today that its New Jersey subsidiary acquired the water system assets of the Berkeley Water Company for approximately $4.2 million. The system serves nearly 12,000 residents in Berkeley Township, Ocean County.
The transaction is the company's first acquisition in Ocean County, New Jersey.
"This acquisition not only adds another large community system to our national footprint," said Aqua America Chairman and Chief Executive Officer Nicholas DeBenedictis, "but it also marks Aqua's first inroads into New Jersey's vibrant shore communities and resort areas."
The company plans to invest approximately $1 million in capital improvements for the Berkeley system through 2006. This amount includes upgrading the existing well to improve water quality, as well as installing radio frequency (RF) meter reading devices for all of the system's customers.
"The RF devices offer greater efficiency and convenience because they allow us to read the meters remotely from the curb. This high-tech system also increases reading accuracy while eliminating the need for estimated bills," said Aqua New Jersey President and CEO Sharon Schulman, noting that the company expects to complete the RF installations in April 2006.
Aqua America, Inc. is the largest U.S.-based publicly-traded water company, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina. Aqua America is listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol WTR.
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Updated: 02:42 PM EST Aqua America 10 Percent Dividend Increase and Four-for-Three Stock Split Set for December 1
BRYN MAWR, Pa.--(BUSINESS WIRE)----Aqua America, Inc. (NYSE:WTR) is reminding shareholders that the 10 percent cash dividend increase and the four-for-three stock split approved by its Board of Directors on August 2, 2005, are effective tomorrow, December 1, 2005 to shareholders of record as of November 17, 2005.
The December 1, 2005 dividend payment will increase from $0.13 to $0.1425 per share on a pre-split basis. On an annualized basis, the dividend increase is equivalent to a $0.05 increase above the current (pre-split) annual dividend rate of $0.52 to $0.57 per share.
The stock split will be effected in the form of a four-for-three (33 1/3 percent) stock distribution. As a result of the stock split, the new (post-split) quarterly cash dividend rate will be $0.1069 per share on the increased number of shares resulting from the stock distribution, or $0.4276 per share on an annualized basis. Shares will begin trading on a post-split basis on December 2, 2005.
The cash dividend increase is the company's 15th in 14 years. The stock split is the company's sixth in nine years.
Aqua America, Inc. is the largest U.S.-based publicly-traded water utility, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina. Aqua America is listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol WTR.
Aqua America Subsidiary Closes $2.2 Million Purchase of North Carolina Wastewater System
BRYN MAWR, Pa.--(BUSINESS WIRE)----Aqua America, Inc. (NYSE:WTR) announced today that its North Carolina subsidiary acquired the wastewater system serving the Governor's Club residential community on the outskirts of Chapel Hill. The purchase price is approximately $2.2 million.
With this acquisition, Aqua North Carolina, Inc. will provide wastewater services for nearly 2,100 residents in this Chatham County community, which includes a 27-hole golf course designed by Jack Nicklaus. An additional 1,500 residents are expected when the development is built out.
"This acquisition expands our presence in one of North Carolina's most prestigious growth areas, strengthening our foothold in the Tar Heel State and creating opportunities for additional growth ventures," said Aqua America Chairman and Chief Executive Officer Nicholas DeBenedictis, noting that the company now provides water and wastewater services to more than 210,000 residents in 31 counties across the state.
This transaction comes on the heels of the company's acquisition in September of another Chatham County wastewater system, the Preserve at Jordan Lake. That system serves nearly 750 residents, with an additional 800 residents expected at build-out.
At Governor's Club, the wastewater plant's capacity was recently expanded to 200,000 gallons per day (gpd). Currently, the system' average wastewater treatment is 100,000 gpd. The facility has 18 million gallons of storage, including a newly expanded 15 million gallon storage pond.
Aqua America, Inc. is the largest U.S.-based publicly-traded water company, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina. Aqua America is listed on both the New York and Philadelphia Stock Exchanges under the ticker symbol WTR.
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Aqua America Adds Another North Carolina Wastewater System Copyright Business Wire 2005 BUSINESS WIRE BRYN MAWR, Pa.--(BUSINESS WIRE)----Aqua America, Inc. (NYSE:WTR) announced today that its North Carolina subsidiary acquired the Chatham Water Reclamation/Carolina Meadows wastewater system for the purchase price of approximately $350,000.
The system purchased by Aqua North Carolina, Inc. provides wastewater services to approximately 2,000 residents in various residential developments and nine commercial customers, including an 86-bed nursing care facility. It is located on the outskirts of Chapel Hill and is adjacent to the Governor's Club wastewater system that Aqua acquired last month. The $2.2 million Governor's Club transaction expanded the company's base by nearly 2,100 residents, with an additional 1,500 residents expected when the development is built out.
"This is another valuable 'tuck-in' acquisition that we can integrate into our existing North Carolina operations, helping us achieve greater economies of scale. Furthermore, we continue to create new growth opportunities in one of the state's high-profile areas," said Aqua America Chairman and Chief Executive Officer Nicholas DeBenedictis. The company operates water and wastewater systems across the state serving more than 225,000 residents in 31 counties.
As part of the transaction, the company plans to invest nearly $1 million in capital improvements to upgrade and expand the existing facility to provide state-of-the-art wastewater treatment.
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Aqua America Subsidiary Secures $25 Million in Tax-Exempt Bonds to Finance Water Improvements; Interest Savings Estimated at $5 Million Copyright Business Wire 2005 BUSINESS WIRE BRYN MAWR, Pa.--(BUSINESS WIRE)----Aqua America, Inc. (NYSE:WTR) announced today that its largest subsidiary -- Aqua Pennsylvania, Inc. -- successfully closed a $25 million tax-exempt financing issued through the Delaware County Industrial Development Authority at yields of 4.82 percent.
The entire $25 million will be used to construct water infrastructure improvements between 2005 and 2008 in southeastern Pennsylvania. The work includes improvements to the company's water treatment facilities and a host of water main replacement projects in Montgomery, Chester and Delaware counties.
Aqua America Treasurer Kathy Pape said she anticipates that the $25 million tax-exempt bonds will produce significant savings on the company's interest expense. "By locking in these historically low long-term interest rates, we estimate that compared to a taxable rate of approximately 5.6 percent, we are saving approximately $5 million in interest expense over the loan's 30-year term."
Since Aqua America began aggressively pursuing low-interest financing in 1999, the company has reduced its system-wide long-term interest rate from 7.4 percent to 5.76 percent on nearly $900 million of outstanding debt as of December 2005, representing an annual savings of more than $14 million.
"Thanks to our company's effectiveness in securing tax-exempt financing, we're able to enhance our capital program by investing the savings in additional projects, such as replacing aging pipes and upgrading treatment facilities to improve water quality and reliability," said Aqua America Chairman and Chief Executive Officer Nicholas DeBenedictis.
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CORRECTING and REPLACING Aqua America Records Best Year Ever in Number of Acquisitions; Adds Western PA Water System as 2005 Ends BUSINESS WIRE BRYN MAWR, Pa.--(BUSINESS WIRE)----Third bullet point of release should read: November 2005 - Aqua New Jersey subsidiary acquired the water system assets of the Berkeley Water Company which serves nearly 12,000 residents in Berkeley Township, Ocean County (sted November 2005 - Aqua New Jersey subsidiary acquired the water system assets of the Berkeley Water Company which serves nearly 1,200 residents in Berkeley Township, Ocean County).
The corrected release reads:
AQUA AMERICA RECORDS BEST YEAR EVER IN NUMBER OF ACQUISITIONS; ADDS WESTERN PA WATER SYSTEM AS 2005 ENDS
Aqua America, Inc. (NYSE:WTR) reported today that acquisition activity in the fourth quarter brought in a total of eight water and wastewater systems. Over the course of 2005, Aqua America expanded its national footprint with a company record of 30 acquisitions, in addition to various new housing growth ventures.
The company acquired systems and added customers in North Carolina, New Jersey, Pennsylvania, Ohio, Texas and Illinois during the year. The 2005 total surpassed the company's previous record of 26 acquisitions in 2004.
"The momentum carried through the fourth quarter to help us achieve an annual all-time record number of acquisitions," said Aqua America Chairman and Chief Executive Officer Nicholas DeBenedictis. "We broadened our capabilities in the wastewater arena and added more 'tuck-in' water systems, which we can smoothly integrate into our operations network to capitalize on economies of scale. We plan to stay the course with our successful growth-through-acquisition strategy in 2006, keeping a steady pace with a goal of 25-to-30 new acquisitions."
In the final days of 2005, Aqua Pennsylvania, Inc. purchased the water system assets of the privately owned Oakland Beach Water Company, which serves approximately 2,000 residents in Sadsbury and Summit townships, Crawford County, marking the company's first entry into Crawford County. The $750,000 transaction was completed with a combination of cash and Aqua stock. The system will be managed as part of Aqua Pennsylvania's Shenango Division, based in Sharon, which is approximately 30 miles from the newly acquired system.
In addition to this transaction, Aqua America subsidiaries closed the following purchases in the fourth quarter:
-- December 2005 - Aqua North Carolina, Inc. acquired the wastewater system assets of Chatham Water Reclamation/Carolina Meadows residential development and nursing care facility in Chatham County, serving nearly 2,000 residents.
-- November 2005 - Aqua North Carolina, Inc. acquired the wastewater system assets of Governor's Club residential development in Chatham County, North Carolina, which serves nearly 2,100 residents, with an additional 1,500 residents expected at build-out.
-- November 2005 - Aqua New Jersey subsidiary acquired the water system assets of the Berkeley Water Company which serves nearly 12,000 residents in Berkeley Township, Ocean County.
-- October 2005 - Aqua Pennsylvania, Inc. purchased the water system assets of Garbush Water Company, which serves approximately 240 residents in Jackson Township, Luzerne County
-- October 2005 - Aqua North Carolina, Inc. acquired the water system of the Northwoods residential development near Chapel Hill, Orange County, serving approximately 240 residents.
-- October 2005 - Aqua Illinois Inc. purchased the water system assets of the Village of Philo, serving approximately 1,300 residents.
-- October 2005 - Heater Utilities, Inc. acquired the water system assets of Community Water Works Inc. in Statesville, Iredell County, North Carolina, which serves nearly 240 residents.
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