The York Water(YORW) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2024 was $5,863, a decrease of$1,705 or 22.5% from $7,568 in Q3 2023, primarily due to higher operating expenses and increased income taxes [70]. - Net income for the first nine months of 2024 was$15,183, a decrease of $2,562 or 14.4$17,745 in the same period of 2023, due to higher operating expenses and interest on debt [76]. Revenue and Operating Performance - Operating revenues for Q3 2024 increased by $948 or 5.1$19,715, driven by a distribution system improvement charge of $131 and an increase in the customer base by 1,062 water customers [71]. - Operating revenues for the first nine months of 2024 increased by$3,158 or 6.0% to $56,093, primarily due to a rate increase effective March 1, 2023 [78]. Operating Expenses - Operating expenses for Q3 2024 rose by$1,326 or 12.8% to $11,660, mainly due to higher depreciation, wages, and wastewater treatment costs [72]. - Operating expenses for the first nine months of 2024 increased by$4,193 or 13.7% to $34,761, driven by higher costs in depreciation, wages, and maintenance [79]. Interest and Debt - Interest on debt for Q3 2024 increased by$393 or 21.2% to $2,243, attributed to higher long-term debt and interest rates on Senior Notes [73]. - Interest on debt for the first nine months of 2024 rose by$1,508 or 29.9% to $6,549, reflecting increased long-term debt and interest rates [80]. - The Company entered into a note purchase agreement for$40,000 aggregate principal amount of senior notes, with net proceeds of approximately $39,833 used to refinance line of credit borrowings [102]. Customer and Asset Acquisitions - The Company signed an agreement on June 27, 2024, to acquire wastewater assets from CMV Sewage Co., expected to add approximately 280 wastewater customers upon completion in the second half of 2025 [86]. - The Company signed an agreement to purchase wastewater collection assets of Margaretta Mobile Home Park, expected to add approximately 65 customers, with closing anticipated in the second half of 2025 [87]. - The Company signed an agreement to acquire wastewater collection and treatment assets of York Haven Sewer Authority, expected to add approximately 230 customers, with closing expected in Q4 2024 [88]. Construction and Funding - The Company invested$32,993 in construction expenditures for the nine months ended September 30, 2024, funded through internally-generated funds and other sources [93]. - Anticipated construction expenditures for the remainder of 2024 are approximately $9,700, primarily funded through internally-generated funds and customer contributions expected to account for 5$20,391 in internally-generated funds during the first nine months of 2024, a decrease from $23,407 in the same period of 2023, primarily due to higher interest and income taxes paid [97]. - Common stockholders' equity as a percentage of total capitalization was 53.2$1,921 for customer-owned lead service line replacements through September 30, 2024 [115]. - Pennsylvania state officials declared a drought watch for 33 counties, including all four counties in the Company's service territory, potentially impacting future revenues [116].