Middlesex Water Company Appoints New Chief Executive

Middlesex Water Company (NASDAQ: MSEX) has announced the appointment of Nadine Leslie as its new President and CEO effective March 1, 2024. Leslie brings extensive domestic and international experience in the water industry, having previously served as the CEO of Suez North America, where she was responsible for overseeing a leading environmental company with revenues over $1.1 billion, providing water and recycling services to millions of people in the United States and Canada.

Dennis W. Doll, the outgoing President and CEO, who is set to retire from the company on February 29, 2024, expressed confidence in Leslie's appointment, stating, "I and the rest of the Middlesex board of directors are thrilled to have Nadine join our company. Her breadth of knowledge and experience bring a fresh perspective to the numerous opportunities and challenges facing our company and our industry."

Leslie also expressed her enthusiasm for the new role, stating, "I am thrilled to join the Middlesex Water Company team and grateful for the trust and confidence placed in me by the Middlesex board of directors." She added, "I am confident with the support of our talented team and board members, we will navigate challenges, capitalize on opportunities and create additional value for our customers and shareholders."

Middlesex Water Company, established in 1897, serves as a trusted provider of high-quality water service for residential, commercial, industrial, and fire protection purposes, catering to a population of nearly half a million people in New Jersey and Delaware.

As a result of the announcement, the company's shares have moved 1.7%, and are now trading at a price of $60.53.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (k) $138,077 $134,598 $141,592 $143,141 $162,434 $166,495
Revenue Growth n/a -2.52% 5.2% 1.09% 13.48% 2.5%
Operating Margins 27% 26% 26% 23% 28% 24%
Net Margins 24% 25% 27% 26% 26% 20%
Net Income (k) $32,452 $33,888 $38,425 $36,543 $42,429 $32,929
Net Interest Expense (k) $6,758 $7,264 $7,493 $8,114 $9,367 $12,157
Depreciation & Amort. (k) $15,037 $16,716 $18,472 $21,109 $23,029 $24,469
Earnings Per Share $1.96 $2.01 $2.19 $2.08 $2.4 $1.85
EPS Growth n/a 2.55% 8.96% -5.02% 15.38% -22.92%
Diluted Shares (k) 16,540 16,829 17,574 17,607 17,712 17,873
Free Cash Flow (k) $45,864 $36,053 -$52,264 -$46,350 -$29,974 -$42,113
Current Ratio 0.33 0.45 0.6 0.61 0.32 1.12
Total Debt (k) $170,247 $241,575 $284,496 $317,877 $323,849 $360,567
Net Debt / EBITDA 3.19 4.58 5.01 5.79 4.55 5.62

Middlesex Water Company has decent operating margins with a stable trend, flat EPS growth, and just enough current assets to cover current liabilities. Furthermore, the firm suffers from negative cash flows and a highly leveraged balance sheet.

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