This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Aqua America Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: WTR

And if we just stay with the same length of maturity, which should be 20 year maturity, we think we might be able to do as well as 75 to 100 pips saving on those – on that 100 million. So you can see, we continue to do financial engineering, but in the very positive way because of the solid financial foundation of the company and its strong S&P rating and timing is everything and where some of these notes are coming due or callable and we are taking advantage of today’s historic low interest rates.

On the O&M front, for the trailing 12 months ending 6/30/2012, we posted a O&M to revenue what we call our efficiency ratio of 37.3 versus 37.8 in the year prior period. Just to refresh you, we had a nice run of tightening margins, improving margins and actually lowering the efficiency ratio, which is the inverse, we just reached some numbers and you can see the trend line these are yearend numbers.

But for yearend 2007, our O&M to revenue or efficiency ratio was 42.2, in 2008 it dropped to 41.8, in 2009 it dropped to 40.2, in 2010 it dropped to 38.7, in 2011, we achieved 38.

And we’re hopeful with these six months in the bag now already we’re hopeful to squeeze another 50 basis points to maybe 75 basis points or more in the margin out of this benchmark for yearend 2012, there was some confusion after my last call, we measure our efficiency ratio slightly different than the other large water company American Water who is also giving these kind of tracking results and they are doing very good with their net results also.

If we use the same metrics as American, which is the regulated division O&M, not all O&M including are unregulated. And we just purchased water, which as they do and that’s a legitimate thing to do. Our trailing 12 months 6/30/2012 number would not be 37.3, it would be 34.3. And I think, whichever we want to use, I believe it’s the best in the entire utility industry.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,817.90 +7.84 0.04%
S&P 500 2,069.41 +5.91 0.29%
NASDAQ 4,754.8920 +41.9220 0.89%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs