On March 5, 2024, JT Hand, the President and CEO of The York Water Company (NASDAQ: YORW), unveiled the company’s financial achievements for 2023, showcasing substantial growth in operating revenues and net income. The announcement not only highlights the company’s financial health but also outlines an ambitious investment plan for the upcoming years, signaling a strong commitment to infrastructure improvement and customer service enhancement.
Growth and Performance in 2023
The company’s operating revenues saw a notable increase, reaching $71,031,000, up by $10,970,000 from the previous year. This improvement was primarily attributed to a rate increase effective from March 1, 2023, coupled with growth in the customer base. Despite the reset to zero of the Distribution System Improvement Charge (DSIC) and rising operation, maintenance expenses, and depreciation, net income surged to $23,757,000, marking a $4,177,000 increase compared to 2022. Basic and Diluted Earnings per share rose to $1.66, with dividends per share climbing by 4%.
Strategic Investments for Future Growth
In 2023, The York Water Company made significant investments, totaling $64.6 million, directed towards critical infrastructure projects including the Lake Williams dam’s spillway armor and replacement, wastewater treatment plant construction, and routine maintenance. Around 50,200 feet of pipe were replaced to enhance the distribution system, highlighting the company’s dedication to improving service quality and reducing future expenses. Looking ahead, York Water has earmarked approximately $42.2 million for 2024 and $46.1 million for 2025 for further main extensions, dam spillway work, wastewater plant construction, an enterprise software system upgrade, and other facility improvements to ensure a reliable supply of drinking water and efficient wastewater management.
Market Confidence and Forward-Looking Statements
The financial results and future investment plans underscore market confidence in The York Water Company, as evidenced by the 26 consecutive years of dividend increases and substantial institutional ownership. Despite facing certain risks and uncertainties, the company’s projections for operational and financial growth appear promising. The management’s forward-looking statements reflect a strategic vision aimed at sustaining and enhancing service delivery, infrastructure resilience, and shareholder value.
The York Water Company’s announcement of its 2023 financial success and its ambitious investment roadmap for the coming years not only demonstrates its resilience and strategic foresight but also reinforces its position as a leader in the utility sector. With a clear focus on infrastructure improvement and customer satisfaction, the company is well-positioned to navigate future challenges and continue its trajectory of growth and profitability.
