At this time, I would like to turn the call over to Nick for his formal remarks. After which, we will open up the call for questions.Nicholas DeBenedictis Thank you, Brian, and good morning, everyone. Pleased to report another solid quarter of growing revenue, earnings, cash generation as distinguished by EBITDA and proud to say we're continuing to invest in our water systems and growth opportunities at a pace of 2.5x our depreciation. So we're still investing in our economy. Confident that we're on our way to our 13th straight year of record earnings as we continue as one of the nation's most efficient, profitable, financially sound, and fastest-growing water utilities. As I start my 21st year as CEO this year, the first 4 months of 2012 has been among the busiest I've had. Let me just recap for you. We began '12 with a new organization and a succession plan. My contract was extended till 2015 and 3 new executive vice president positions were established and filled with experienced Aqua executives, so we can prepare for the company's future. Since that time, a number of key management positions have been reestablished with a focus on increased efficiency in our operations and future growth potential. We've taken some major governance initiatives through the board as we move towards our annual meeting, which is coming up next week. The board has recommended a declassified board, which the vote is overwhelming to date. We adopted -- the board adopted a policy for majority voting. We recommended a new compensation plan, which is being voted on by the shareholders, which is geared towards total shareholder return and earnings growth. And we recommend a renewal of our employee stock purchase plan and have already recommended our existing shelf renewed -- I'm sorry our existing shelf registration, which is done by the board individually. And that's even though we have no plans -- and I don't want to give anybody the impression we do, we have no plans for any equity issuance in our current 5-year plan.
We completed the state portfolio transformation that we began back in 2011. And just like to recap all of the results of that. We sold operations in our smallest, and both, unfortunately, were unprofitable states, Missouri and South Carolina, completely exited those. We profitably expanded in Texas by purchasing operations of American Water in Texas. And Texas is our fastest-growing state. We sold our Maine operations with only 6-month regulatory process, which is remarkable, to Connecticut Water for basically 2x book value, and much of that gain was taken in this quarter as the official closing was January 1. And the increased equity generated by the transaction to Aqua was immediately invested in higher earning states and is already accretive.On May 1, we sold our New York Water operations, representing $46 million in rate base and 51,000 water customers. We sold it at book for $39 million and $23 million of assumed debt to American Water. And we simultaneously purchased American Water's operation in Ohio. We purchased 57,000 water and wastewater customers in Ohio, representing $95 million in rate base, basically for book value, $95 million in book for $101 million in cash plus $11 million in assumed debt. And of course, all the regulatory and liabilities and assets were assumed by each company. I think this is a very constructive transaction as was the Maine transaction with the other water companies in our small unit space, where we're rationalizing and getting bigger in states where we already are concentrated allows for more efficiency, shedding unprofitable operations. It's good for the consumer and it's good for our shareholders. We also had a very busy year reissuing and expanding our corporate and Pennsylvania-based revolvers. Both have been renewed at the Pennsylvania for a year, the Aqua corporate for 5 years. The corporate is at 65 over LIBOR, 1 month LIBOR, and the Pennsylvania is 70 over LIBOR. Both pretty reasonable. And between those 2 alone, we have over $250 million in capacity and then we also had our state subs at probably another $70 million, $80 million, which is now unused. Read the rest of this transcript for free on seekingalpha.com