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Aqua America Reports Earnings For Third Quarter

The following excerpt is from the company's SEC filing.

Third quarter revenues increased 5 percent to $221.1 million

Income from continuing operations of $67.4 million; $0.38 per share (diluted)

Year-to-date acquisitions add approximately 9,300 customer connections

Bryn Mawr, PA

Aqua America, Inc. (NYSE: WTR) today reported results for the quarter ending September 30, 2015.

Third Quarter Operating Results

Revenues increased to $221.1 million, or 5 percent, compared to $210.5 million for the third quarter of 2014. Higher consumption due to weather conditions accounted for approximately 40 percent of the increase. Acquisitions in both the regulated and market-based businesses also accounted for approximately 40 percent of the total increase, with rates, surcharges and organic growth contributing to the remaining approximate 20 percent.

Operations and maintenance expenses were $78.5 million for the third quarter of 2015, compared to $72.4 in the third quarter of 2014. Aquas acquisitions accounted for 5 percent of the 8.5 percent increase in operations and maintenance expenses. Management expects same-system operations and maintenance expenses to increase by 1 to 3 percent for the full year.

For the third quarter, Aqua America reported income from continuing operations of $67.4 million, which is compared to $67.7 million in 2014. Diluted income from continuing operations per share was $0.38 for the quarter, which matched third quarter results in the previous year.

As of September 30, Aqua reported year-to-date income from continuing operations of $173.4 million, which is up 5.1 percent from $164.9 million during the same time frame in 2014. Diluted income from continuing operations per share rose to $0.98, an increase of 5.4 percent from $0.93 reported in 2014. Revenues increased 4.9 percent to $617.1 million, comparing favorably to the $588.5 million reported in 2014. Operations and maintenance expenses were $231.5 million for the first nine months of the year.

Aqua delivered another quarter of strong financial results highlighted by a 5 percent increase in revenue compared to the same quarter in 2014, said President and Chief Executive Officer of

Aqua America Christopher Franklin. Management remains focused on growing Aquas customer base through prudent, strategic acquisitions, investing the needed capital to address the nations troubled water and wastewater infrastructure and creating efficiencies throughout the entire company. Given our performance through the first nine months of the year, we are comfortable reaffirming 2015 guidance of $1.25 to $1.27 earnings per share.

Capital Expenditures

Through the first three quarters of 2015, as part of its capital investment plan, Aqua has invested approximately $257 million to improve its infrastructure systems. The company expects to invest more than $325 million by year-end and more than $1 billion over the next three years. The capital investments made in the infrastructure of the communities Aqua serves are paramount to helping the company accomplish its mission of delivering safe water and reliable water and wastewater services to its customers.

Dividend

On October 16, 2015 Aqua Americas board of directors declared a quarterly cash dividend of $0.178 per share of common stock. This dividend will be payable on December 1, 2015, to shareholders of record on November 13, 2015. Aqua has paid a consecutive quarterly dividend for 70 years.

Rate Activity

Year-to-date, Aqua Americas regulated subsidiaries received rate awards and infrastructure surcharges in New Jersey, Pennsylvania (wastewater), Illinois, North Carolina, Ohio, and Texas, estimated to increase annualized revenues by approximately $7.7 million. The company has $2.4 million in rate or surcharge proceedings pending in New Jersey and Virginia, which include annualized billings of $1.7...


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