Middlesex Water Co Files Q2 2024 10-Q

TL;DR

MSEX filed its Q2 10-Q. All systems go.

AI Summary

Middlesex Water Company filed its 10-Q report for the quarterly period ended June 30, 2024. The company, incorporated in New Jersey, is engaged in the water supply industry and is registered with the SEC under file number 0-422. Its common stock is traded on NASDAQ under the symbol MSEX.

Why It Matters

This filing provides investors with an update on Middlesex Water Company's financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial and operational information.

Key Numbers

• 0-422 — SEC File Number (Identifies the company's registration with the SEC.)
• 20240630 — Quarterly Period End Date (Specifies the end date for the reported financial period.)

Key Players & Entities

• MIDDLESEX WATER CO (company) — Registrant
• MSEX (company) — Trading Symbol
• NASDAQ (company) — Exchange
• June 30, 2024 (date) — Quarterly Period End Date
• 0-422 (dollar_amount) — SEC File Number

FAQ

Key Financial Figures

• $7.00 — 20 Convertible: Shares Outstanding, $7.00 Series - 10 $ 1,005 $ 1,005 Nonredeema
• $4.75 — 0 Series - 1 79 79 Shares Outstanding, $4.75 Series - 10 1,000 1,000 TOTAL PREFERRE

Filing Documents

• msex-20240630.htm (10-Q) — 714KB
• ex10-55.htm (EX-10.55) — 219KB
• ex10-56.htm (EX-10.56) — 219KB
• ex10-57.htm (EX-10.57) — 216KB
• ex10-58.htm (EX-10.58) — 214KB
• ex31-1.htm (EX-31.1) — 11KB
• ex31-2.htm (EX-31.2) — 11KB
• ex32-1.htm (EX-32.1) — 3KB
• ex32-2.htm (EX-32.2) — 3KB
• 0001174947-24-000934.txt ( ) — 5614KB
• msex-20240630.xsd (EX-101.SCH) — 52KB
• msex-20240630_cal.xml (EX-101.CAL) — 57KB
• msex-20240630_def.xml (EX-101.DEF) — 210KB
• msex-20240630_lab.xml (EX-101.LAB) — 404KB
• msex-20240630_pre.xml (EX-101.PRE) — 207KB
• msex-20240630_htm.xml (XML) — 502KB

Financial Statements (Unaudited)

Financial Statements (Unaudited): Condensed Consolidated Statements of Income 1 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Cash Flows 3 Condensed Consolidated Statements of Capital Stock and Long-Term Debt 4 Condensed Consolidated Statements of Common Stockholders' Equity 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures of Market Risk

Quantitative and Qualitative Disclosures of Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 MIDDLESEX WATER COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating Revenues $ 49,146 $ 42,801 $ 89,670 $ 80,957 Operating Expenses: Operations and Maintenance 21,825 21,204 42,290 41,462 Depreciation 6,305 6,184 11,701 12,170 Other Taxes 5,701 4,744 10,499 9,168 Total Operating Expenses 33,831 32,132 64,490 62,800 Operating Income 15,315 10,669 25,180 18,157 Other Income: Allowance for Funds Used During Construction 257 852 433 1,665 Other Income, net 2,399 1,290 7,588 2,188 Total Other Income, net 2,656 2,142 8,021 3,853 Interest Charges 4,041 3,251 7,310 5,846 Income before Income Taxes 13,930 9,560 25,891 16,164 Income Taxes 3,384 ( 341 ) 4,663 397 Net Income 10,546 9,901 21,228 15,767 Preferred Stock Dividend Requirements 30 30 60 60 Earnings Applicable to Common Stock $ 10,516 $ 9,871 $ 21,168 $ 15,707 Earnings per share of Common Stock: Basic $ 0.59 $ 0.56 $ 1.19 $ 0.89 Diluted $ 0.59 $ 0.55 $ 1.18 $ 0.88 Average Number of Common Shares Outstanding : Basic 17,829 17,713 17,824 17,683 Diluted 17,944 17,828 17,939 17,798 See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements 1 MIDDLESEX WATER COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 30, December 31, ASSETS 2024 2023 UTILITY PLANT: Water Production $ 307,173 $ 303,791 Transmission and Distribution 825,223 809,862 General 102,149 100,593 Construction Work in Progress 29,703 19,636 TOTAL 1,264,248 1,233,882 Less Accumulated Depreciation 244,102 235,540 UTILITY PLANT - NET 1,020,146 998,342 CURRENT ASSETS: Cash and Cash Equivalents 8,025 2,390 Accounts Receivable, net of allowance for credit losses of $ 2,135 and $ 2,13

Financial Statements

Financial Statements Accounting Standards Update ("ASU") 2023-07 "Improvements to Reportable Segment Disclosures" The ASU requires disclosure of significant segment expenses, extends certain annual disclosures to interim periods, and additional qualitative disclosures regarding the chief operating decision maker. The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31, 2024 . Early adoption is permitted. Retrospective The Company is currently evaluating the requirements of ASU 2023-07. ASU 2023-09 "Improvements to Income Tax Disclosures" The ASU amends certain income tax disclosure requirements, including adding requirements to present the reconciliation of income tax expense computed at the statutory rate to actual income tax expense using both percentages and amounts and providing a disaggregation of income taxes paid. Further, certain disclosures are eliminated, including the current requirement to disclose information on changes in unrecognized tax benefits in the next 12 months. The ASU is effective for the Company beginning with its annual financial statements for the year ending December 31, 2025 . Early adoption is permitted. Prospective, with retrospective application also permitted. The Company is currently evaluating the requirements of ASU 2023-09. 6 Note 2 – Rate and Regulatory Matters Middlesex – The approval by the New Jersey Board of Public Utilities (NJBPU) in February 2024 of the negotiated settlement of the Middlesex 2023 base rate case is expected to increase annual operating revenues by $ 15.4 million, effective March 1, 2024. The approved tariff rates were designed to recover increased operating costs as well as a return on invested capital of $ 563.1 million, based on an authorized return on common equity of 9.6 %. Middlesex has made capital infrastructure investments to ensure prudent upgrade and replacement of its utility assets to support continued regulatory compliance,

View Full Filing

View this 10-Q filing on SEC EDGAR