York Water 2024 – Revenue Up, Net Income Down

By Bobby Samwell • Tuesday, March 04 15:16 • Permanent Link

The York Water Company (NASDAQ:YORW) has reported its 2024 annual and fourth-quarter financial results, revealing several key changes compared to the previous year.

In 2024, the company's operating revenues amounted to $74,959,000, marking a $3,928,000 increase from 2023. However, net income for the year decreased by $3,432,000, totaling $20,325,000. Basic and diluted earnings per share for 2024 also declined by $0.24 compared to 2023, standing at $1.42. Despite this, dividends per share saw a 4% increase compared to 2023.

The rise in revenues can be attributed to increased rates effective from March 1, 2023, revenues from the distribution system improvement charge (DSIC), and growth in the customer base. The DSIC, which is collected from customers for the replacement of aging infrastructure, contributed to the company's improved revenue stream. Additionally, lower pension costs were incurred during the year.

Throughout 2024, the company invested $48.2 million in construction expenditures, which included the armoring and replacement of the spillway of the Lake Williams Dam, wastewater treatment plant construction, and routine infrastructure replacements and improvements. Notably, the company replaced approximately 50,200 feet of pipe to enhance its distribution system, reduce ongoing expenses, and improve customer service. It also made acquisitions amounting to $783,000, involving four water and two wastewater systems.

For the fourth quarter of 2024, operating revenues increased by $770,000, but net income decreased by $870,000 compared to the same period in 2023. Basic and diluted earnings per share for the quarter amounted to $0.36, reflecting a decrease of $0.06 from the corresponding period in the previous year.

Looking ahead, York Water plans to invest approximately $46.0 million in 2025 and $48.5 million in 2026, excluding acquisitions. These investments will be directed towards main extensions, water tank replacement, wastewater treatment plant construction, enterprise software system upgrades, and routine infrastructure improvements.

Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $33.44. For the full picture, make sure to review York Water's 8-K report.

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