Aqua America, Inc. (NYSE: WTR) today reported results for the quarter ending June 30, 2013. Revenues for the quarter were $195.7 million compared to $191.7 million for the same period of 2012. Net income for the quarter rose to $53.6 million from $41.4 million for the same period in 2012. Corresponding diluted earnings per share for the quarter were $0.38, compared to $0.30 for the same quarter in 2012, an increase of 27 percent.
For the first six months of 2013, net income increased to $100.2 million from $79.3 million and corresponding diluted earnings per share increased 25 percent to $0.71 from $0.57 for the same period in 2012. Operating revenues for the first six months of 2013 totaled $375.7 million, an increase of $20.0 million from revenues of $355.7 million for the six months ending June 30, 2012.
Aqua America Chairman and CEO Nicholas DeBenedictis said, “Our company continued its strong performance in the second quarter. The benefits of the company’s long-term strategy of growth through acquisition, pruning underperforming assets, operational efficiency, and investing in needed infrastructure improvements, complemented by the benefit of the repair tax accounting change delivered increased net income in the quarter.”
The benefit of the repair tax accounting change announced in December 2012 allows the company to continue investing in needed infrastructure improvements in excess of $200 million annually in Pennsylvania (more than $300 million companywide annually) without seeking rate increases from its customers in Pennsylvania. In essence the company, by adopting the repair tax accounting change, has instituted a rate freeze in its largest state, Pennsylvania, and replaced the foregone revenues from rate increases with the flow-through accounting treatment of income tax benefits permitted under the Pennsylvania Public Utility Commission Order of June 2012.
Aqua America invested $134.9 million in regulated infrastructure improvements in the first six months of 2013 as part of its capital investment program. All of these investments were funded through internally generated funds, which for the first six months of 2013 totaled $158.8 million. These investments include: pipe replacement to improve distribution networks; plant upgrades to enhance water quality; and other service reliability improvements for its customers.