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Share Name | Share Symbol | Market | Type |
---|---|---|---|
York Water Company | NASDAQ:YORW | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-1.14 | -3.03% | 36.53 | 36.49 | 36.54 | 37.60 | 36.38 | 37.60 | 23,699 | 20:35:17 |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from __________ to __________
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
|
|
(Title of Class)
|
(Trading Symbol)
|
(Name of Each Exchange on Which Registered)
|
⌧
|
☐ No
|
⌧
|
☐ No
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
|
Smaller reporting company
|
Emerging growth company
|
|
⌧ No
|
|
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
|
||
Common stock, No par value
|
as of May 7, 2024
|
Mar. 31, 2024
|
Dec. 31, 2023
|
|||||||
ASSETS
|
||||||||
UTILITY PLANT, at original cost
|
$
|
|
$
|
|
||||
Plant acquisition adjustments
|
(
|
)
|
(
|
)
|
||||
Accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
Net utility plant
|
|
|
||||||
OTHER PHYSICAL PROPERTY, net of accumulated depreciation
of $
|
|
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
|
|
||||||
Accounts receivable, net of reserves of $
and $
|
|
|
||||||
Unbilled revenues
|
|
|
||||||
Recoverable income taxes
|
|
|
||||||
Materials and supplies inventories, at cost
|
|
|
||||||
Prepaid expenses
|
|
|
||||||
Total current assets
|
|
|
||||||
OTHER LONG-TERM ASSETS:
|
||||||||
Prepaid pension cost
|
|
|
||||||
Note receivable
|
|
|
||||||
Deferred regulatory assets
|
|
|
||||||
Other assets
|
|
|
||||||
Total other long-term assets
|
|
|
||||||
Total Assets
|
$
|
|
$
|
|
Mar. 31, 2024
|
Dec. 31, 2023
|
|||||||
STOCKHOLDERS’ EQUITY AND LIABILITIES
|
||||||||
COMMON STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock,
issued and outstanding
and
|
$
|
|
$
|
|
||||
Retained earnings
|
|
|
||||||
Total common stockholders’ equity
|
|
|
||||||
PREFERRED STOCK, authorized
|
|
|
||||||
LONG-TERM DEBT
|
|
|
||||||
COMMITMENTS
|
|
|
||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
|
|
||||||
Dividends payable
|
|
|
||||||
Accrued compensation and benefits
|
|
|
||||||
Accrued income taxes | ||||||||
Accrued interest
|
|
|
||||||
Deferred regulatory liabilities
|
|
|
||||||
Other accrued expenses
|
|
|
||||||
Total current liabilities
|
|
|
||||||
DEFERRED CREDITS:
|
||||||||
Customers’ advances for construction
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Deferred employee benefits
|
|
|
||||||
Deferred regulatory liabilities
|
|
|
||||||
Other deferred credits
|
|
|
||||||
Total deferred credits
|
|
|
||||||
Contributions in aid of construction
|
|
|
||||||
Total Stockholders’ Equity and Liabilities
|
$
|
|
$
|
|
|
Three Months
Ended March 31
|
|||||||
|
2024
|
2023
|
||||||
OPERATING REVENUES:
|
$
|
|
$
|
|
||||
|
||||||||
OPERATING EXPENSES:
|
||||||||
Operation and maintenance
|
|
|
||||||
Administrative and general
|
|
|
||||||
Depreciation and amortization
|
|
|
||||||
Taxes other than income taxes
|
|
|
||||||
|
|
|
||||||
|
||||||||
Operating income
|
|
|
||||||
|
||||||||
OTHER INCOME (EXPENSES):
|
||||||||
Interest on debt
|
(
|
)
|
(
|
)
|
||||
Allowance for funds used during construction
|
|
|
||||||
Other pension costs
|
(
|
)
|
(
|
)
|
||||
Other income (expenses), net
|
(
|
)
|
(
|
)
|
||||
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Income before income taxes
|
|
|
||||||
|
||||||||
Income tax expense
|
|
|
||||||
|
||||||||
Net Income
|
$
|
|
$
|
|
||||
|
||||||||
Basic Earnings Per Share
|
$
|
|
$
|
|
||||
Diluted Earnings Per Share
|
$
|
|
$
|
|
|
Common
Stock
Shares
|
Common
Stock
Amount
|
Retained
Earnings
|
Total
|
||||||||||||
Balance, December 31, 2023
|
$ | $ | $ | |||||||||||||
Net income
|
– | |||||||||||||||
Cash dividends declared, $
|
– | ( |
) | ( |
) | |||||||||||
Issuance of common stock under
dividend reinvestment, direct stock and
employee stock purchase plans
|
||||||||||||||||
Stock-based compensation
|
( |
) | ||||||||||||||
Balance, March 31, 2024
|
$ | $ | $ |
|
Common
Stock
Shares
|
Common
Stock
Amount
|
Retained
Earnings
|
Total
|
||||||||||||
Balance, December 31, 2022
|
$ | $ | $ | |||||||||||||
Net income
|
– | |||||||||||||||
Cash dividends declared, $
|
– | ( |
) | ( |
) | |||||||||||
Issuance of common stock under
dividend reinvestment, direct stock and
employee stock purchase plans
|
||||||||||||||||
Stock-based compensation
|
||||||||||||||||
Balance, March 31, 2023
|
$ | $ | $ |
Three Months
Ended March 31
|
||||||||
2024
|
2023
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
Increase in deferred income taxes
|
|
|
||||||
Other
|
(
|
)
|
(
|
)
|
||||
Changes in assets and liabilities:
|
||||||||
Decrease in accounts receivable and unbilled revenues
|
|
|
||||||
Decrease in recoverable income taxes
|
|
|
||||||
Increase in materials and supplies, prepaid expenses, prepaid pension cost,
regulatory and other assets
|
(
|
)
|
(
|
)
|
||||
Increase in accounts payable, accrued compensation and benefits, accrued
expenses, deferred employee benefits, regulatory liabilities, and other deferred credits
|
|
|
||||||
Increase in accrued interest and taxes
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Utility plant additions, including debt portion of allowance for funds used during
construction of $
|
(
|
)
|
(
|
)
|
||||
Acquisitions of water and wastewater systems
|
( |
) | ||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Customers’ advances for construction and contributions in aid of construction
|
|
|
||||||
Repayments of customer advances
|
|
(
|
)
|
|||||
Proceeds of long-term debt issues
|
|
|
||||||
Debt issuance costs | ( |
) | ( |
) | ||||
Repayments of long-term debt
|
(
|
)
|
(
|
)
|
||||
Changes in cash overdraft position
|
(
|
)
|
(
|
)
|
||||
Issuance of common stock
|
|
|
||||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Net change in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest, net of amounts capitalized
|
$
|
|
$
|
|
||||
Supplemental disclosure of non-cash investing and financing activities:
Accounts payable includes $
|
As of | As of | |||||||||||
Mar. 31, 2024
|
Dec. 31, 2023
|
Change
|
||||||||||
Accounts receivable – customers
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Other receivables
|
|
|
(
|
)
|
||||||||
|
|
(
|
)
|
|||||||||
Less: allowance for doubtful accounts
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Accounts receivable, net
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Unbilled revenue
|
$
|
|
$
|
|
$
|
|
Three Months
Ended March 31
|
||||||||
2024
|
2023
|
|||||||
Weighted average common shares, basic
|
|
|
||||||
Effect of dilutive securities:
|
||||||||
Employee stock-based compensation
|
|
|
||||||
Weighted average common shares, diluted
|
|
|
As of
Mar. 31, 2024
|
As of
Dec. 31, 2023
|
|||||||
Variable Rate Pennsylvania Economic Development Financing Authority
Exempt Facilities Revenue Refunding Bonds, Series 2008A, due 2029
|
$ |
|
$ |
|
||||
Facilities Revenue Refunding Bonds, Series A of 2019, due 2036
|
|
|
||||||
Facilities Revenue Refunding Bonds, Series B of 2019, due 2038
|
|
|
||||||
|
|
|
||||||
Facilities Revenue Bonds, Series 2015, due 2029 – 2045
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
||||||||
Committed Line of Credit, due September 2025
|
|
|
||||||
Total long-term debt
|
|
|
||||||
Less discount on issuance of long-term debt
|
(
|
)
|
(
|
)
|
||||
Less unamortized debt issuance costs | ( |
) | ( |
) | ||||
Long-term portion
|
$
|
|
$
|
|
Description
|
March 31, 2024
|
Fair Value Measurements
at Reporting Date Using
Significant Other Observable Inputs (Level 2)
|
||
Interest Rate Swap
|
$
|
$
|
Description
|
December 31, 2023
|
Fair Value Measurements
at Reporting Date Using
Significant Other Observable Inputs (Level 2)
|
||
Interest Rate Swap
|
$
|
$
|
|
Three Months
Ended March 31
|
|||||||
|
2024
|
2023
|
||||||
Water utility service:
|
||||||||
Residential
|
$
|
|
$
|
|
||||
Commercial and industrial
|
|
|
||||||
Fire protection
|
|
|
||||||
Wastewater utility service:
|
||||||||
Residential
|
|
|
||||||
Commercial and industrial
|
|
|
||||||
Billing and revenue collection services
|
|
|
||||||
Collection services
|
|
|
||||||
Other revenue
|
|
|
||||||
Total Revenue from Contracts with Customers
|
|
|
||||||
Rents from regulated property
|
|
|
||||||
Total Operating Revenue
|
$
|
|
$
|
|
|
Three Months
Ended March 31
|
|||||||
|
2024
|
2023
|
||||||
Service cost
|
$
|
|
$
|
|
||||
Interest cost
|
|
|
||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
||||
Amortization of prior service cost
|
(
|
)
|
(
|
)
|
||||
Rate-regulated adjustment
|
|
|
||||||
Net periodic pension expense
|
$
|
|
$
|
|
Number of Shares
|
Grant Date Weighted
Average Fair Value
|
|||||||
Nonvested at beginning of the period
|
|
$
|
|
|||||
Granted
|
|
$
|
|
|||||
Vested
|
(
|
)
|
$
|
|
||||
Forfeited
|
(
|
)
|
$
|
|
||||
Nonvested at end of the period
|
|
$
|
|
Item 2.
|
Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
(In thousands of dollars, except per share amounts)
|
•
|
the amount and timing of rate changes and other regulatory matters including the recovery of
costs recorded as regulatory assets;
|
•
|
expected profitability and results of operations;
|
•
|
trends;
|
•
|
goals, priorities and plans for, and cost of, growth and expansion;
|
•
|
strategic initiatives;
|
•
|
availability of water supply;
|
•
|
water usage by customers; and
|
•
|
the ability to pay dividends on common stock and the rate of those dividends.
|
•
|
changes in weather or climate, including drought conditions or extended periods of heavy precipitation;
|
•
|
natural disasters, including pandemics such as the outbreak of the novel strain of coronavirus known as “COVID-19” and its variants and the
effectiveness of the Company’s pandemic plans;
|
•
|
levels of rate relief granted;
|
•
|
the level of commercial and industrial business activity within the Company’s service territory;
|
•
|
construction of new housing within the Company’s service territory and increases in population;
|
•
|
changes in government policies or regulations, including the tax code;
|
•
|
the ability to obtain permits for expansion projects;
|
•
|
material changes in demand from customers, including the impact of conservation efforts which may
impact the demand of customers for water;
|
•
|
changes in economic and business conditions, including interest rates;
|
•
|
loss of customers;
|
•
|
changes in, or unanticipated, capital requirements;
|
•
|
the impact of acquisitions;
|
•
|
changes in accounting pronouncements;
|
•
|
changes in the Company’s credit rating or the market price of its common stock; and
|
•
|
the ability to obtain financing.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 5.
|
Other Information.
|
Item 6. |
Exhibits.
|
Exhibit No.
|
Description
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the
Inline XBRL document).
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema.
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase.
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase.
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase.
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase.
|
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
THE YORK WATER COMPANY
|
|
/s/ Joseph T. Hand
|
|
Date: May 7, 2024
|
Joseph T. Hand
Principal Executive Officer
|
/s/ Matthew E. Poff
|
|
Date: May 7, 2024
|
Matthew E. Poff
Principal Financial and Accounting Officer
|
I, Joseph T. Hand, certify that:
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of The York Water Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
Date: May 7, 2024
|
/s/ Joseph T. Hand
|
Joseph T. Hand
|
|
President and CEO
|
I, Matthew E. Poff, certify that:
|
||
1.
|
I have reviewed this quarterly report on Form 10-Q of The York Water Company;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: May 7, 2024
|
/s/ Matthew E. Poff
|
Matthew E. Poff
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
THE YORK WATER COMPANY
|
|
Date: May 7, 2024
|
/s/ Joseph T. Hand
|
Joseph T. Hand
|
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a)); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
THE YORK WATER COMPANY
|
|
Date: May 7, 2024
|
/s/ Matthew E. Poff
|
Matthew E. Poff
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Chief Financial Officer
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Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
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ASSETS | ||
Other physical property, accumulated depreciation | $ 511 | $ 501 |
CURRENT ASSETS: | ||
Accounts receivables, reserves | $ 1,055 | $ 1,005 |
COMMON STOCKHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 46,500,000 | 46,500,000 |
Common stock, issued (in shares) | 14,343,500 | 14,332,245 |
Common stock, outstanding (in shares) | 14,343,500 | 14,332,245 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Statements of Income [Abstract] | ||
OPERATING REVENUES: | $ 17,628 | $ 15,401 |
OPERATING EXPENSES: | ||
Operation and maintenance | 4,812 | 4,112 |
Administrative and general | 3,074 | 2,666 |
Depreciation and amortization | 3,083 | 2,814 |
Taxes other than income taxes | 444 | 391 |
Operating expenses | 11,413 | 9,983 |
Operating income | 6,215 | 5,418 |
OTHER INCOME (EXPENSES): | ||
Interest on debt | (2,123) | (1,513) |
Allowance for funds used during construction | 1,134 | 749 |
Other pension costs | (230) | (364) |
Other income (expenses), net | (67) | (94) |
Other income (expenses) | (1,286) | (1,222) |
Income before income taxes | 4,929 | 4,196 |
Income tax expense | 602 | 543 |
Net Income | $ 4,327 | $ 3,653 |
Basic Earnings Per Share (in dollars per share) | $ 0.3 | $ 0.26 |
Diluted Earnings Per Share (in dollars per share) | $ 0.3 | $ 0.26 |
Statements of Common Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividends declared (in dollars per share) | $ 0.2108 | $ 0.2027 |
Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Utility plant additions, debt portion of allowance for funds used during construction | $ 634 | $ 418 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Accounts payable for construction of utility plant | $ 8,172 | $ 7,764 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2024 | |
Basis of Presentation [Abstract] | |
Basis of Presentation |
1. Basis of Presentation
The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments, consisting of only normal recurring accruals,
necessary for a fair presentation of results for such periods. Because the financial statements cover an interim period, they do not include all disclosures and notes normally provided in annual financial statements, and therefore, should be read in
conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be
expected for the year ending December 31, 2024.
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Acquisitions |
3 Months Ended |
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Mar. 31, 2024 | |
Acquisitions [Abstract] | |
Acquisitions |
2. Acquisitions
On January 31, 2024, the Company completed the acquisition of the wastewater collection and treatment assets of MESCO, Inc. in Monaghan Township, York
County, Pennsylvania. The Company began operating the existing wastewater collection and treatment assets on February 1, 2024. The acquisition resulted in the addition of approximately 180 wastewater customers with purchase price and acquisition costs of approximately $37. This acquisition is immaterial to Company results.
On February 21, 2024, the Company completed the acquisition of the water assets of Longstown Mobile Estates in Windsor Township, York County,
Pennsylvania. The Company began operating the existing water system through an interconnection with its current distribution system on February 26, 2024. The acquisition resulted in the addition of approximately 90 water customers with purchase price and acquisition costs of approximately $8. These customers were previously served by the Company through a single customer connection to the mobile home park. This acquisition is immaterial to Company results.
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Accounts Receivable and Contract Assets |
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Accounts Receivable and Contract Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Contract Assets |
3. Accounts Receivable and Contract Assets
Accounts receivable and contract assets are summarized in the following table:
Differences in timing of revenue recognition, billings, and cash collections result in receivables, which are contract assets. Generally, billing occurs
subsequent to revenue recognition, resulting in unbilled revenue on the balance sheet, which is also a contract asset. The Company does not receive advances or
deposits from customers before revenue is recognized so no contract liabilities are reported. Accounts receivable are recorded when the right to consideration becomes unconditional and are presented separately on the balance sheet. The changes in
accounts receivable – customers and in unbilled revenue were primarily due to the normal timing difference between performance and the customer’s payments.
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Common Stock and Earnings Per Share |
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Common Stock and Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Earnings Per Share |
4. Common Stock and Earnings Per Share
Net income of $4,327 and $3,653 for the three months ended March 31, 2024
and 2023, respectively, is used to calculate both basic and diluted earnings per share. Basic earnings per share is based on the
weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding plus potentially dilutive shares. The dilutive effect of employee stock-based compensation is
included in the computation of diluted earnings per share and is calculated using the treasury stock method and expected proceeds upon exercise or issuance of the stock-based compensation.
The following table summarizes the shares used in computing basic and diluted earnings per share:
On March 11, 2013, the Board of Directors, or the Board, authorized a share repurchase program granting the Company authority to repurchase up to 1,200,000 shares of the Company’s common stock from time to time. The stock repurchase program has no specific end date and the Company may repurchase
shares in the open market or through privately negotiated transactions. The Company may suspend or discontinue the repurchase program at any time. No
shares were repurchased during the three months ended March 31, 2024 and 2023. As of March 31, 2024, 618,004 shares remain authorized for repurchase.
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Debt |
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Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
5. Debt
On February 27, 2024, the Company entered into a note purchase agreement with certain institutional investors relating to the private placement of $40,000 aggregate principal amount of the Company’s senior notes. The senior notes bear interest at 5.67% per annum payable semiannually and mature on February 27, 2054. The senior notes are unsecured and unsubordinated obligations of the Company. The Company received net
proceeds, after deducting issuance costs, of approximately $39,833. The net proceeds were used to refinance line of credit borrowings
incurred by the Company as interim financing for various capital projects of the Company.
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Interest Rate Swap Agreement |
3 Months Ended |
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Mar. 31, 2024 | |
Interest Rate Swap Agreement [Abstract] | |
Interest Rate Swap Agreement |
6. Interest Rate Swap Agreement
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest
rate risk. The Company utilizes an interest rate swap agreement to effectively convert the Company’s $12,000 variable-rate debt issue to a
fixed rate. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional amount on which the interest payments are based ($12,000) is not exchanged. The interest rate swap provides that the Company pays the counterparty a fixed interest rate of 3.16% on the notional amount of $12,000. In exchange, the counterparty paid the
Company a variable interest rate based on 59% of the U.S. Dollar one-month LIBOR rate on the notional amount. The variable interest rate changed to 59%
of the daily simple Secured Overnight Financing Rate, or SOFR, plus a spread adjustment of 11.448 basis points upon the discontinuance of
LIBOR in 2023. The intent is for the variable rate received from the swap counterparty to approximate the variable rate the Company pays to bondholders on its variable rate debt issue, resulting in a fixed rate being paid to the swap counterparty
and reducing the Company’s interest rate risk. The Company’s net payment rate on the swap was (0.04)% and 0.44% for the three months ended March 31, 2024 and 2023, respectively.
The interest rate swap agreement is classified as a financial derivative used for non-trading activities. The accounting standards regarding accounting
for derivatives and hedging activities require companies to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. In accordance with the standards, the interest rate swap is recorded on the balance
sheet in other deferred credits at fair value (see Note 7).
The Company uses regulatory accounting treatment rather than hedge accounting to defer the unrealized gains and losses on its interest rate swap. These
unrealized gains and losses are recorded as a regulatory asset or regulatory liability. Based on current ratemaking treatment, the Company expects the unrealized gains and losses to be recognized in rates as a component of interest expense as the
swap settlements occur. Swap settlements are recorded in the income statement with the hedged item as interest expense. Swap settlements resulted in the reclassification from regulatory assets to interest expense of $(1) and $14 for the three months ended March 31, 2024 and 2023, respectively. The overall swap result was a (gain) loss of $(175) and $127 for the three months ended March 31, 2024 and 2023, respectively. The Company expects to reclassify $22 before
tax from regulatory assets to interest expense as a result of swap settlements over the next 12 months.
The interest rate swap agreement contains provisions that require the Company to maintain a credit rating of at least BBB- with Standard & Poor’s. If
the Company’s rating were to fall below this rating, it would be in violation of these provisions, and the counterparty to the derivative could request immediate payment if the derivative was in a liability position. On July 26, 2023, Standard &
Poor’s affirmed the Company’s credit rating at A-, with a stable outlook and adequate liquidity. The Company’s interest rate swap was in a liability position as of March 31, 2024. If a violation due to credit rating, or some other default provision, were triggered on March 31, 2024, the Company would have been required to pay the counterparty approximately $476.
The interest rate swap will expire on October 1, 2029. Other than the
interest rate swap, the Company has no other derivative instruments.
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Fair Value of Financial Instruments |
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Mar. 31, 2024 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||
Fair Value of Financial Instruments |
7. Fair Value of Financial Instruments
The accounting standards regarding fair value measurements establish a fair value hierarchy which indicates the extent to which inputs used in measuring
fair value are observable in the market. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, commodity
rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability.
The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption
“Other deferred credits” on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period.
Fair values are measured as the present value of all expected future cash flows based on the swap yield curve as of the date of the valuation. These
inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company’s credit quality as of March 31, 2024.
The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year
debt on utilities rated A- as of March 31, 2024. The use of the Company’s credit rating resulted in a reduction in the fair value of
the swap liability of $18 as of March 31, 2024. The fair value of the swap reflecting the Company’s credit quality as of December 31, 2023 is shown in the
table below.
The carrying amount of current assets and liabilities that are considered financial instruments approximates fair value as of the dates presented. The
Company’s total long-term debt, with a carrying value of $192,370 at March 31, 2024, and $182,643 at December 31, 2023, had an estimated fair value of approximately $179,000 and $175,000, respectively. The estimated fair value of debt was
calculated using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration and risk profile. These inputs to this calculation are deemed to be Level 2 inputs. The Company recognized its credit
rating in determining the yield curve and did not factor in third-party credit enhancements including the letter of credit on the 2008 Pennsylvania Economic Development Financing Authority Series A issue.
Customers’ advances for construction and note receivable had carrying values at March 31, 2024 of $19,134 and $255, respectively. At December 31, 2023,
customers’ advances for construction and note receivable had carrying values of $18,853 and $255, respectively. The relative fair values of these amounts cannot be accurately estimated since the timing of future payment streams is dependent upon several factors,
including new customer connections, customer consumption levels and future rate increases.
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Commitments |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments [Abstract] | |
Commitments |
8. Commitments
The Company committed to capital expenditures of approximately $40,073 to armor and replace the spillway of the Lake Williams dam, of which $1,777 remains to be
incurred as of March 31, 2024. The Company may make additional commitments for this project in the future.
The Company was granted approval by the PPUC to modify its tariff to include the cost of the annual replacement of up to 400 lead customer-owned service lines over nine years
from the date of the agreement. The tariff modification allows the Company to replace customer-owned service lines at its own initial cost. The Company will record the costs as a regulatory asset to be recovered in future base rates to customers,
over a four-year period. The cost for the customer-owned lead service line replacements was approximately $1,819 and $1,762 through March 31, 2024 and December 31, 2023,
respectively, and is included as a regulatory asset. Based on its experience, the Company estimates that lead customer-owned service lines replacements will cost $1,900. This estimate is subject to adjustment as more facts become available.
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Revenue |
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Revenue |
9. Revenue
The following table shows the Company’s revenues disaggregated by service and customer type.
Utility Service
The Company provides utility service as a distinct and single performance obligation to each of its water and wastewater customers. The transaction price
is detailed in the tariff pursuant to an order by the PPUC and made publicly available. There is no variable consideration and no free service, special rates, or subnormal charges to any customer. Due to the fact that the contract includes a single
performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of utility service through a stand-ready obligation to perform and the transfer of
water or the collection of wastewater through a series of distinct transactions that are identical in nature and have the same pattern of transfer to the customer. The Company uses an output method to recognize the utility service revenue over
time. The stand-ready obligation is recognized through the passage of time in the form of a fixed charge and the transfer of water or the collection of wastewater is recognized at a per unit rate based on the actual or estimated flow through the
meter. Each customer is invoiced every month and the invoice is due within twenty days. The utility service has no returns or warranties
associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for
the passage of time and the actual or estimated usage from the latest meter reading to the end of the accounting period. The methodology is standardized and consistently applied to reduce bias and the need for judgment.
Billing and Revenue Collection Service
The Company provides billing and revenue collection service as distinct performance obligations to three municipalities within the service territory of the Company. The municipalities provide service to their residents and the Company acts as the billing and revenue collection agent for
the municipalities. The transaction price is a fixed amount per bill prepared as established in the contract. There is no variable consideration. Due to the fact that both the billing performance obligation and the revenue collection performance
obligation are materially complete by the end of the reporting period, the Company does not allocate the transaction price between the two performance obligations. The performance obligations are satisfied at a point in time when the bills are sent
as the municipalities receive all the benefits and bear all of the risk of non-collection at that time. Each municipality is invoiced when the bills are complete and the invoice is due within thirty days. The billing and revenue collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and
no performance obligations remain unsatisfied as of the end of the reporting period.
Collection Service
The Company provides collection service as a distinct and single performance obligation to several municipalities within the service territory of the
Company. The municipalities provide wastewater service to their residents. If those residents are delinquent in paying for their wastewater service, the municipalities request that the Company post for and shut off the supply of water to the
premises of those residents. When the resident is no longer delinquent, the Company will restore water service to the premises. The transaction price for each posting, each shut off, and each restoration is a fixed amount as established in the
contract. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied at a point in time when
the posting, shut off, or restoration is completed as the municipalities receive all the benefits in the form of payment or no longer providing wastewater service. Each municipality is invoiced periodically for the posting, shut offs, and
restorations that have been completed since the last billing and the invoice is due within thirty days. The collection service has no
returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled
revenue is recognized for postings, shut offs, and restorations that have been completed from the last billing to the end of the accounting period.
Service Line Protection Plan
The Company provides service line protection as a distinct and single performance obligation to current water customers that choose to participate. The
transaction price is detailed in the plan’s terms and conditions and made publicly available. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the
transaction price. The performance obligation is satisfied over time through the continuous provision of service line protection through a stand-ready obligation to perform. The Company uses an output method to recognize the service line protection
revenue over time. The stand-ready obligation is recognized through the passage of time. A customer has a choice to prepay for an entire year or to pay in advance each month. The service line protection plan has no returns or extended warranties
associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no material performance obligations remain unsatisfied as of the end of the reporting period.
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Rate Matters |
3 Months Ended |
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Mar. 31, 2024 | |
Rate Matters [Abstract] | |
Rate Matters |
10. Rate Matters
From time to time, the Company files applications for rate increases with the PPUC and is granted rate relief as a result of such requests. The most recent rate request was filed by the Company on May 27, 2022 and sought an annual increase in water rates of $18,854 and an annual increase in wastewater rates of $1,457.
Effective March 1, 2023, the PPUC authorized an increase in water rates designed to produce approximately $11,600 in additional annual
revenues and an increase in wastewater rates designed to produce approximately $1,900 in additional annual revenues.
The PPUC permits water utilities to collect a distribution system improvement charge, or DSIC. The DSIC allows the Company to add a charge to customers’
bills for qualified replacement costs of certain infrastructure without submitting a rate filing. This surcharge mechanism typically adjusts periodically based on additional qualified capital expenditures completed or anticipated in a future
period. The DSIC is capped at 5% of base rates and is reset to zero when new base rates that reflect the costs of those additions become effective or when a utility’s earnings exceed a regulatory benchmark. The DSIC reset to zero when the new base rates took effect March 1, 2023. The DSIC provided revenues of $0 and $271 for the three months ended March 31, 2024 and 2023, respectively.
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Pensions |
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Pensions |
11. Pensions
Components of Net Periodic Pension Cost
Pension service cost is recorded in operating expenses. All other components of net periodic pension cost are recorded as other pension costs in other
income (expenses).
Employer Contributions
The Company previously disclosed in its financial statements for the year
ended December 31, 2023 that it expected to
contribute $1,556 to its pension plans in 2024. For the three months ended March 31, 2024, contributions of $389 have been made. The Company expects to contribute the remaining $1,167 during the final three quarters of 2024.
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Stock-Based Compensation |
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Stock-Based Compensation |
12. Stock-Based Compensation
On May 2, 2016, the Company’s stockholders approved The York Water Company
Long-Term Incentive Plan, or LTIP. The LTIP was adopted to provide the incentive of long-term stock-based awards to officers, directors, and key employees. The LTIP provides for the granting of nonqualified stock options, incentive stock options,
stock appreciation rights, performance restricted stock grants and units, restricted stock grants and units, and unrestricted stock grants. A maximum of 100,000 shares
of common stock may be issued under the LTIP over the ten-year life of the plan. The maximum number of shares of common stock subject to
awards that may be granted to any participant in any one calendar year is 2,000. Shares of common stock issued under the LTIP may be
treasury shares or authorized but unissued shares. The LTIP will be administered by the Compensation Committee of the Board, or the full Board, provided that the full Board will administer the LTIP as it relates to awards to non-employee directors
of the Company. The Company filed a registration statement with the Securities and Exchange Commission on May 11, 2016 covering the offering of stock under the LTIP. The LTIP was effective on July 1, 2016.
On May 1, 2023, the Board accelerated the vesting period for restricted stock granted in 2021, 2022, and 2023 to one retiring key employee from three years
to that key employee’s 2024 retirement date, which has been fully recognized as of March 31, 2024.
On January 29, 2024, the Board accelerated the vesting period for restricted stock granted in 2022 and 2023 to one retiring officer from three years
to that officer’s 2024 retirement date.
The restricted stock awards provide the grantee with the rights of a shareholder, including the right to receive dividends and to vote such shares, but not
the right to sell or otherwise transfer the shares during the restriction period. As a result, the awards are included in common shares outstanding on the balance sheet. Restricted stock awards result in compensation expense valued at the fair
market value of the stock on the date of the grant and are amortized ratably over the requisite service period.
The following tables summarize the stock grant amounts and activity for the three months ended March 31, 2024.
No long-term stock-based awards were granted under the LTIP during the three months ended March 31, 2024. For the three months ended March 31, 2024 and 2023, the statement of income includes stock-based compensation, net, of $43 and $54, respectively, and related
recognized tax benefits of $12 and $15,
respectively. The total fair value of the shares vested in the three months ended March 31, 2024 and 2023 was $11 and $0, respectively. Total stock-based compensation related to nonvested awards not yet recognized is $346 at March 31, 2024, which will be recognized over the
remaining three year vesting period.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2024 | |
Income Taxes [Abstract] | |
Income Taxes |
13. Income Taxes
Under the Internal Revenue Service tangible property regulations, or TPR, the Company is permitted to deduct the costs of certain asset improvements that
were previously being capitalized and depreciated for tax purposes as an expense on its income tax return. This ongoing deduction results in a reduction in the effective income tax rate, a net reduction in income tax expense, and a reduction in the
amount of income taxes currently payable. It also results in increases to deferred tax liabilities and regulatory assets representing the appropriate book and tax basis difference on capital additions.
The Company’s effective tax rate was 12.2%
and 12.9% for the three months ended March 31, 2024 and 2023, respectively. The effective tax rate will vary depending on income before income taxes and the level of eligible asset improvements expensed for tax purposes under TPR each period.
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Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Revenue (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Revenue [Abstract] | |
Revenue |
Utility Service
The Company provides utility service as a distinct and single performance obligation to each of its water and wastewater customers. The transaction price
is detailed in the tariff pursuant to an order by the PPUC and made publicly available. There is no variable consideration and no free service, special rates, or subnormal charges to any customer. Due to the fact that the contract includes a single
performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied over time through the continuous provision of utility service through a stand-ready obligation to perform and the transfer of
water or the collection of wastewater through a series of distinct transactions that are identical in nature and have the same pattern of transfer to the customer. The Company uses an output method to recognize the utility service revenue over
time. The stand-ready obligation is recognized through the passage of time in the form of a fixed charge and the transfer of water or the collection of wastewater is recognized at a per unit rate based on the actual or estimated flow through the
meter. Each customer is invoiced every month and the invoice is due within twenty days. The utility service has no returns or warranties
associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled revenue is recognized for
the passage of time and the actual or estimated usage from the latest meter reading to the end of the accounting period. The methodology is standardized and consistently applied to reduce bias and the need for judgment.
Billing and Revenue Collection Service
The Company provides billing and revenue collection service as distinct performance obligations to three municipalities within the service territory of the Company. The municipalities provide service to their residents and the Company acts as the billing and revenue collection agent for
the municipalities. The transaction price is a fixed amount per bill prepared as established in the contract. There is no variable consideration. Due to the fact that both the billing performance obligation and the revenue collection performance
obligation are materially complete by the end of the reporting period, the Company does not allocate the transaction price between the two performance obligations. The performance obligations are satisfied at a point in time when the bills are sent
as the municipalities receive all the benefits and bear all of the risk of non-collection at that time. Each municipality is invoiced when the bills are complete and the invoice is due within thirty days. The billing and revenue collection service has no returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and
no performance obligations remain unsatisfied as of the end of the reporting period.
Collection Service
The Company provides collection service as a distinct and single performance obligation to several municipalities within the service territory of the
Company. The municipalities provide wastewater service to their residents. If those residents are delinquent in paying for their wastewater service, the municipalities request that the Company post for and shut off the supply of water to the
premises of those residents. When the resident is no longer delinquent, the Company will restore water service to the premises. The transaction price for each posting, each shut off, and each restoration is a fixed amount as established in the
contract. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the transaction price. The performance obligation is satisfied at a point in time when
the posting, shut off, or restoration is completed as the municipalities receive all the benefits in the form of payment or no longer providing wastewater service. Each municipality is invoiced periodically for the posting, shut offs, and
restorations that have been completed since the last billing and the invoice is due within thirty days. The collection service has no
returns or warranties associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no performance obligations remain unsatisfied as of the end of the reporting period. A contract asset for unbilled
revenue is recognized for postings, shut offs, and restorations that have been completed from the last billing to the end of the accounting period.
Service Line Protection Plan
The Company provides service line protection as a distinct and single performance obligation to current water customers that choose to participate. The
transaction price is detailed in the plan’s terms and conditions and made publicly available. There is no variable consideration. Due to the fact that the contract includes a single performance obligation, no judgment is required to allocate the
transaction price. The performance obligation is satisfied over time through the continuous provision of service line protection through a stand-ready obligation to perform. The Company uses an output method to recognize the service line protection
revenue over time. The stand-ready obligation is recognized through the passage of time. A customer has a choice to prepay for an entire year or to pay in advance each month. The service line protection plan has no returns or extended warranties
associated with it. No revenue is recognized from performance obligations satisfied in prior periods and no material performance obligations remain unsatisfied as of the end of the reporting period.
|
Accounts Receivable and Contract Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Contract Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Contract Assets |
Accounts receivable and contract assets are summarized in the following table:
|
Common Stock and Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Used in Computing Basic and Diluted Earnings per Share |
The following table summarizes the shares used in computing basic and diluted earnings per share:
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
|
Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||
Fair Value of Interest Rate Swap |
The Company has recorded its interest rate swap liability at fair value in accordance with the standards. The liability is recorded under the caption
“Other deferred credits” on the balance sheet. The table below illustrates the fair value of the interest rate swap as of the end of the reporting period.
Fair values are measured as the present value of all expected future cash flows based on the swap yield curve as of the date of the valuation. These
inputs to this calculation are deemed to be Level 2 inputs. The balance sheet carrying value reflects the Company’s credit quality as of March 31, 2024.
The rate used in discounting all prospective cash flows anticipated to be made under this swap reflects a representation of the yield to maturity for 30-year
debt on utilities rated A- as of March 31, 2024. The use of the Company’s credit rating resulted in a reduction in the fair value of
the swap liability of $18 as of March 31, 2024. The fair value of the swap reflecting the Company’s credit quality as of December 31, 2023 is shown in the
table below.
|
Revenue (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues Disaggregated by Service and Customer Type |
The following table shows the Company’s revenues disaggregated by service and customer type.
|
Pensions (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Pension Cost |
Components of Net Periodic Pension Cost
|
Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock |
The following tables summarize the stock grant amounts and activity for the three months ended March 31, 2024.
|
Acquisitions (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Feb. 21, 2024
USD ($)
Customer
|
Jan. 31, 2024
USD ($)
Customer
|
Mar. 31, 2024
USD ($)
|
Mar. 31, 2023
USD ($)
|
|
Acquisitions [Abstract] | ||||
Acquisition of water and wastewater systems | $ 45 | $ 0 | ||
Wastewater Collection and Treatment Assets of MESCO, Inc. [Member] | ||||
Acquisitions [Abstract] | ||||
Number of customers acquired | Customer | 180 | |||
Acquisition of water and wastewater systems | $ 37 | |||
Water Assets of Longstown Mobile Estates [Member] | ||||
Acquisitions [Abstract] | ||||
Number of customers acquired | Customer | 90 | |||
Acquisition of water and wastewater systems | $ 8 |
Accounts Receivable and Contract Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Accounts Receivable and Contract Assets [Abstract] | ||
Accounts receivable - customers | $ 7,602 | $ 8,250 |
Other receivables | 539 | 592 |
Accounts receivable | 8,141 | 8,842 |
Less: allowance for doubtful accounts | (1,055) | (1,005) |
Accounts receivable, net | 7,086 | 7,837 |
Unbilled revenue | 3,575 | $ 3,484 |
Change in accounts receivable - customers | (648) | |
Change in other receivables | (53) | |
Change in accounts receivable | (701) | |
Change in allowance for doubtful accounts | (50) | |
Change in accounts receivable, net | (751) | |
Change in unbilled revenue | $ 91 |
Common Stock and Earnings Per Share (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 11, 2013 |
|
Common Stock and Earnings Per Share [Abstract] | |||
Net income | $ 4,327 | $ 3,653 | |
Shares Used in Computing Basic and Diluted Earnings per Share [Abstract] | |||
Weighted average common shares, basic (in shares) | 14,324,879 | 14,275,866 | |
Effect of dilutive securities [Abstract] | |||
Employee stock-based compensation (in shares) | 2,827 | 3,837 | |
Weighted average common shares, diluted (in shares) | 14,327,706 | 14,279,703 | |
Stock Repurchase Program [Abstract] | |||
Number of shares authorized to be repurchased under the stock repurchase program (in shares) | 1,200,000 | ||
Number of shares repurchased under the stock repurchase program (in shares) | 0 | 0 | |
Number of remaining shares authorized to be repurchased under the stock repurchase program (in shares) | 618,004 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Interest Rate Swap [Abstract] | ||
Term of debt on utilities rated A- used to discount prospective cash flows | 30 years | |
Reduction in fair value of swap liability | $ (18) | |
Fair Value Measurements [Abstract] | ||
Customers' advances for construction | 19,134 | $ 18,853 |
Note receivable | 255 | 255 |
Fair Value on a Recurring Basis [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 458 | 632 |
Fair Value on a Recurring Basis [Member] | Fair Value Measurements at Reporting Date Using Significant Other Observable Inputs (Level 2) [Member] | ||
Interest Rate Swap [Abstract] | ||
Interest rate swap | 458 | 632 |
Carrying Amount [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | 192,370 | 182,643 |
Estimated Fair Value [Member] | ||
Fair Value, Financial Liabilities [Abstract] | ||
Total long-term debt | $ 179,000 | $ 175,000 |
Commitments (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
ServiceLine
|
Dec. 31, 2023
USD ($)
|
|
Commitments [Abstract] | ||
Capital expenditures committed | $ 40,073 | |
Armor and Replace Spillway of Lake Williams Dam [Member] | ||
Commitments [Abstract] | ||
Remaining committed capital expenditures to be incurred | $ 1,777 | |
Customer-Owned Lead Service Lines [Member] | ||
Commitments [Abstract] | ||
Number of lead customer-owned service lines to be replaced annually | ServiceLine | 400 | |
Term of tariff modification to replace customer-owned lead service lines | 9 years | |
Recovery period of regulatory asset | 4 years | |
Costs incurred to replace customer-owned lead service lines | $ 1,819 | $ 1,762 |
Costs to be incurred to replace customer-owned lead service lines | $ 1,900 |
Rate Matters (Details) - PPUC [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Rate Request Filed on May 27, 2022 [Member] | Water [Member] | ||
Rate Matters [Abstract] | ||
Requested annual increase in rates | $ 18,854 | |
Authorized dollar increase in annual revenues | 11,600 | |
Rate Request Filed on May 27, 2022 [Member] | Wastewater [Member] | ||
Rate Matters [Abstract] | ||
Requested annual increase in rates | 1,457 | |
Authorized dollar increase in annual revenues | 1,900 | |
DSIC [Member] | ||
Rate Matters [Abstract] | ||
Distribution system improvement charge revenue | $ 0 | $ 271 |
DSIC [Member] | Maximum [Member] | ||
Rate Matters [Abstract] | ||
Distribution system improvement charge percentage over base rate | 5.00% | |
DSIC [Member] | Minimum [Member] | ||
Rate Matters [Abstract] | ||
Distribution system improvement charge percentage over base rate | 0.00% |
Pensions (Details) - Pension Plans [Member] - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Components of Net Periodic Pension Cost [Abstract] | |||
Service cost | $ 159 | $ 149 | |
Interest cost | 463 | 469 | |
Expected return on plan assets | (791) | (903) | |
Amortization of prior service cost | (3) | (3) | |
Rate-regulated adjustment | 561 | 801 | |
Net periodic pension expense | 389 | $ 513 | |
Employer Contributions [Abstract] | |||
Estimated employer contributions in 2024 | $ 1,556 | ||
Employer contributions made in 2024 | 389 | ||
Estimated remaining employer contributions in 2024 | $ 1,167 |
Income Taxes (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Taxes [Abstract] | ||
Effective tax rate | 12.20% | 12.90% |
1 Year York Water Chart |
1 Month York Water Chart |
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