York Water Co (YORW) 2017年年度報告「NASDAQ」.pdf

1、2017 Annual ReportU i f!Z p s l!X b u f s!D p n q b o zforOverYears Partnering with Our Community200The York Water Company has been a partner with the parks since the very beginning.In 1912,York Water began planting over one million trees around Lake Williams.Then in1967,Lake Redman was constructed

2、and completed in 1968.In 1976,York Water entered into a long-term agreement that opened up the 1,600 acre forest and lakes for the use of all residents and visitors.1968-20185othAnniversary of York County ParksLake Redman and Lake Williams Photos:Jon Bilous,Noir Gallery Q b h f!2U i f!Z p s l!X b u

3、f s!D p n q b o z2017 Annual ReportFifty Years Ago,The York Water Company completed a monumental improvement for our customers.TheConstruction of Lake Redmanin 1967 added over one billion gallons of water storage for a growing community.This planning and foresight ensured that our community would th

4、rive,even in severe droughts,for many generations to come.At the same time,the York County Parks Department was organized and eventually grew to 11 parks covering over 4,500 acres.The centerpiece of this public park system isOver 1,600 acres of York Water Propertysurrounding Lake Redman and Lake Wil

5、liams.1967-68turned out to beA Transformative Yearfor the York Community with two milestones that will continue to benefit residents for many generations to come.Dear Shareholders,Welcome to the Annual Report forAmericas Oldest Public Company!I am pleased to report that 2017 continued our unsurpasse

6、d record of 202years of service to our community.Dividends and Shareholder Value:An American Record!Operating revenues grew by 2.1%to$48.59 million in 2017.Operating incomedecreased 1.8%to$22.47 million.Our net income increased by 9.5%to$12.97million in 2017.Earnings per share increased 9.8%to$1.01.

7、In line with our objective to maintain regular dividend increases,we raised thequarterly dividend rate by 4.0%during the year.This is the 21st consecutive yearwe have raised our dividend and the 202nd consecutive year of dividend payments.We believe this to be the longest consecutive dividend record

8、 in America.In 2013,we initiated a share repurchase program to add value to our shareholders.The Board of Directors authorized us to repurchase up to 1,200,000 shares of theCompanys common stock from time to time.37,229 shares were repurchasedthis year.As of December 31,2017,618,004 shares remain av

9、ailable for repurchase.We are only including a summary of our financial results in this annual report.Please refer to our annual SEC 10K Report,which was delivered with this report,or can be downloaded from the investor relations section of our website for a more detailed review of our financial per

10、formance.Continued Growth,Acquisitions,and ExpansionThe number of customers we served at the end of 2017 grew to 69,604 water andwastewater customers.This was an increase of 2,552 new customers.This 3.8%customer growth in 2017 was greater than our typical 1-3%growth.The Companyis now authorized to s

11、erve in 48 municipalities in Adams and York Counties,and our population served grew in 2017 to approximately 198,000 people.Lake Redman Pumping Station Complete We completed an additional pumping station at our Lake Redman reservoir.This station and a 3.5 mile transmission main to our Filter Plant w

12、ill provideredundant capacity in the event of a contamination event,power outage,or flooding.Jeffrey R.Hines,P.E.President and Chief Executive OfficerU i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportQ b h f!3Water&Wastewater CustomersGrowth in Wastewater BusinessIn 2017 we completed the acquis

13、ition of the West York Borough sewer collectionsystem.This wastewater acquisition added approximately 1,700 customersrepresenting 2,200 homes and businesses.After all previously announcedacquisitions are complete,York Water will have approximately 2,300 wastewatercustomers and three 80,000-gallon-pe

14、r-day wastewater treatment plants.Water Still Costs Less than One Cent per GallonOur customer complaint rate and water rates remain among the lowest in the statewhile still providing world class service to our customers.In addition to greatcustomer service,these measurements help us to maintain a pr

15、oductive relationshipwith our regulators,which is paramount to running a successful company.Increasing Efficiency While Maintaining Personal Contact Although we are a 202-year-old company,we continue to make technologicaladvances to assist our customers while still providing that personal touch.When

16、you call our office,one of our locally based and friendly customer servicerepresentatives will answer the phone and assist you.We continue to expand ourinitiatives in online applications and scheduling,paperless billing and electronic bill pay.We also continue to deploy a state-of-the-art radio freq

17、uency drive-by and fixed meter reading system.Of course,our historic office in downtown York remains open for walk-in or phone-in customer support.System Improvements for a Sustainable Future We continue to replace almost 1%of our existing water pipe each year.This reducesmain breaks,water leakage,p

18、otential property damage,and reduces costs.YorkWater continues to work with local governments and other utilities to coordinatewater main replacements prior to road resurfacing projects.This saves ourcustomers money and provides the motoring public with a new road and equallynew utilities below.In 2

19、016 the American Water Works Association recommended that all watersystems should have a goal of eliminating lead service lines.In 2017,York Waterreplaced over 1,100 of the estimated 1,600 company-owned lead service lines andis on track to replace all of them by the end of 2018.Through a unique appr

20、oval by the Pennsylvania Public Utility Commission,the Company is also committed to replacing all customer-owned lead services,at little or no cost to the customer,over the following years with a goal of the complete elimination of all lead servicelines from our community.Dedicated and Experienced E

21、mployees and New Chief Financial OfficerYork Waters talented employees have an average of 13 years at the Company,whichis indicative of the rewarding environment and collaborative corporate culture ofThe York Water Company.A Company that continues to thrive and grow,and improveservice to its custome

22、rs for 202 years,can only be possible due to the dedication,loyalty,and hard work of its employees.We thank all of the York Water family fortheir commitment to make this Company the most efficient water utility in the nation.We also promoted Matthew Poff from Controller to CFO upon the retirement of

23、Kathy Miller.Bruce McIntosh,our VP of Human Resources,also retired.We thankKathy and Bruce for their 20 years of service.U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportQ b h f!4Q b h f!5U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportThe York Water Company congratulates York County on

24、 the 50th Anniversaryof its successful parks and recreation program!Founded in 1968 with thedonation of land for Rocky Ridge Park,York County now includes a system of11 parks with holdings in excess of 4,500 acres.The York Water Company has been a partner with York County Parks since 1977,when the C

25、ompany and York County entered into a cooperativearrangement that incorporated Lake Williams and Lake Redman into William H.Kain County Park.It is named for the companys 17th President andincludes 1,675 acres of beautiful land,along with the two lakes,for therecreational enjoyment of thousands of Yo

26、rk County residents and visitors eachyear.York Water has also made substantial contributions to the wildlife center atNixon Park,and to various projects throughout the park.Many events to commemorate the 50th Anniversary are being held throughoutthe year.For a complete list of events,contact the Yor

27、k County Department of Parks and Recreation at(717)840-7440,or visit www.yorkcountypa.gov andclick on“Parks and Recreation.”York County Parks are a vital part of the high quality of life enjoyed bycounty residents.We also invite visitors to come to York and enjoy year-roundrecreational activities su

28、ch as fishing,boating,hunting,picnicking,hiking,biking,running,horseback riding,etc.Take advantage of this wonderful resourceduring this 50th Anniversary year!William H.Kain for whom the park was named in recognition of his leadership andcontributions in establishing Kain Park.Obtaining approval for

29、 the incorporation of the reservoirs into the York County Parks system was regarded by Kain as one of his most worthwhile accomplishments.Q b h f!6U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportHighlights of Our 202nd Year(In thousands of dollars,except per share amounts)Summary of Operation

30、sFor the Year20172016201520142013Operating revenues.$48,589$47,584$47,089$45,900$42,383Operating expenses.26,11624,69624,42823,82321,622Operating income.22,47322,88822,66122,07720,761Interest expense.4,4845,0374,9764,9965,267Gain on sale of land.-36-316-Other income(expenses),net.(472)(632)(456)(1,0

31、36)(28)Income before income taxes.17,51717,25517,22916,36115,466Income taxes.4,5435,4094,7404,8775,812Net income.$12,974$11,846$12,489$11,484$9,654Per Share of Common StockBook value.$9.28$8.87$8.51$8.15$7.98Earning per shareBasic.1.010.920.97 0.890.75Diluted.1.010.920.97 0.890.75Weighted average nu

32、mber of sharesoutstanding during the year:Basic.12,849,12312,845,95512,831,687 12,879,912 12,928,040Diluted.12,849,17112,845,97312,831,687 12,879,912 12,928,040Cash dividends declared per share.0.64720.62670.60400.57880.5580Utility PlantOriginal cost,net of acquisition adjustments.$362,533$339,745$3

33、25,691$313,003$298,670Construction expenditures.24,60213,15813,84414,1399,852OtherTotal assets.$332,030$320,494$310,533$300,708$280,123Long-term debt including current portion.90,14284,65384,56282,31282,741For Managements Discussion and Analysis of Financial Condition and Results of Operations,pleas

34、e refer to Item 7 in theCompanys Annual Report on Form 10-K.Q b h f!7U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportMarket for Common Stock and DividendsThe common stock of The York Water Company is traded on the NASDAQ Global Select Market Symbol YORW.Quarterly price ranges and cash dividen

35、ds per share for the last two years follow:20172016HighLowDividend*HighLowDividend*1st Quarter$39.00$33.10$0.1602$30.99$23.79$0.15552ndQuarter39.8631.700.160233.4026.540.15553rd Quarter36.7731.900.160232.2427.680.15554th Quarter39.0033.250.166639.8528.610.1602*Cash dividends per share reflect divide

36、nds declared at each dividend date.Prices listed in the above table are sales prices as listed on the NASDAQ Global Select Market.Shareholders of record(excluding individual participants in securities positions listings)as of December 31,2017 numbered approximately 2,011.Performance GraphThe followi

37、ng line graph presents the annual and cumulative total shareholder return for The York Water Company CommonStock over a five-year period from 2012 through 2017,based on the market price of the Common Stock and assumingreinvestment of dividends,compared with the cumulative total shareholder return of

38、 companies in the S&P 500 Index and apeer group made up of publicly traded water utilities,also assuming reinvestment of dividends.The peer group companiesinclude:American States,American Water,Aqua America,Artesian Resources,California Water Service,Connecticut Water,Middlesex Water and San Jose Wa

39、ter.Shareholder Information S&P 500 Index-Total ReturnsPeer GroupThe York Water CompanyComparison of 5 Year Cumulative Total ReturnAssumes Initial Investment of$1002012-20170501001502002012201320172014201520162503002012 2013 2014 2015 2016 2017 The York Water Company100.00 122.52 139.56 153.90 240.5

40、4 217.44S&P 500 Index-Total Returns 100.00 132.39 150.51 152.59 170.84 208.14Peer Group 100.00118.03 144.80 163.55 199.92 256.47 Q b h f!8U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportShareholder Information Dividend PolicyDividends on the Companys common stock are declared by the Board of

41、Directors and are normally paid in January,April,July and October.Dividends are paid based on shares outstanding as of the stated record date,which is ordinarily the lastday of the calendar month immediately preceding the dividend payment.The dividend paid on the Companys common stock on January 16,

42、2018 was the 588th consecutive dividend paid by theCompany.The Company has paid consecutive dividends for its entire history,since 1816.The policy of the Companys Boardof Directors is currently to pay cash dividends on a quarterly basis.The dividend rate has been increased annually fortwenty-one con

43、secutive years.The Companys Board of Directors declared dividend number 589 in the amount of$0.1666per share at its January 2018 meeting.The dividend is payable on April 16,2018 to shareholders of record as of February 28,2018.Future cash dividends will be dependent upon the Companys earnings,financ

44、ial condition,capital demands and otherfactors and will be determined by the Companys Board of Directors.See Note 4 to the Companys financial statementsincluded in the Annual Report on Form 10-K for restrictions on dividend payments.Financial Reports and Investor RelationsThe Company makes available

45、 free of charge,on or through its website(),its annual report onForm 10-K,its quarterly reports on Form 10-Q,current reports on Form 8-K,and amendments to those reports filed orfurnished pursuant to Section 13(a)or 15(d)of the Exchange Act as soon as reasonably practicable after the Companyelectroni

46、cally files such material with,or furnishes it to,the SEC.Shareholders may request,without charge,copies of the Companys financial reports.Such requests,as well as other investorrelations inquiries,should be addressed to:Transfer Agent&RegistrarBroadridge Corporate IssuerSolutions,Inc.P.O.Box 1342Br

47、entwood,NY 11717(844)317-3311(toll free)Internet:http:/ Tilly Virchow Krause LLPSuite 200 221 West Philadelphia Street York,PA 17401Stock Exchange ListingThe Companys common shares trade on the NASDAQ Global Select Market.The trading symbol is YORW.Annual MeetingInformationMonday,May 7,20181:00 p.m.

48、Lunch 12:00 p.m.(reservation required)Appell Center for the Performing Arts50 North George StreetYork,PA 17401(717)718-2942(800)750-The York Water Company130 East Market StreetYork,PA 17401Molly E.NortonInvestor Relations andCommunications AdministratorQ b h f!9U i f!Z p s l!X b u f s!D p n q b o z2

49、017 Annual ReportSelected Financial DataIncomeOperating Revenues.$48,589$47,584$47,089 Operating Expenses.$26,116$24,696$24,428Operating Income.$22,473$22,888$22,661Interest Expense.$4,484$5,037$4,976Net Income.$12,974$11,846$12,489Percent Change in Net Income Compared to Prior Year.9.5%-5.1%8.8%Com

50、mon Stock Dividends.$8,318$8,051$7,743Dividend Payout Ratio.64.1%68.0%62.0%Weighted Average Common Shares Outstanding,Basic.12,849,12312,845,95512,831,687Basic&Diluted Earnings Per Weighted Average Common Share.$1.01$0.92$0.97Number of Common Shares Outstanding.12,872,74212,852,29512,812,377ROE on Y

51、ear End Common Equity.10.9%10.4%11.5%Common Stock Dividends Per Share.$0.6472$0.6267$0.6040Net Cash Flows From Operating Activities.$20,111$19,365$20,710Balance SheetCommon Stockholders Equity.$119,405$114,061$109,070Long-Term Debt Including Current Maturities.$90,142$84,653$84,562Total Capitalizati

52、on.$209,547$198,714$193,632Percent Common Stockholders Equity.57%57%56%Percent Long-Term Debt.43%43%44%Net Utility Plant.$288,787$270,907$261,420Operating DataRevenue ClassResidential.$31,184$30,142$29,682 Commercial and Industrial.$13,729$13,760$13,822 Other.$3,676$3,682$3,585 Total Operating Reven

53、ues.$48,589$47,584$47,089 Construction Expenditures.$24,602$13,158$13,844 Other Operating DataNumber of Customers.69,60467,05266,087 Number of Employees.102103107Common Shareholders.2,0112,0522,007 Book Value Per Common Share.$9.28$8.87$8.51 Market Value at Year End.$33.90$38.20$24.94Market Value to

54、 Book Value.365%431%293%P/E Ratio.33.641.525.7 Year Ended December 31Supplemental Information(Unaudited)(In thousands of dollars,except per share amounts)201720162015Q b h f!:U i f!Z p s l!X b u f s!D p n q b o z2017 Annual Report$45,900$42,383$41,447$40,629$39,005$37,043$32,838$31,433$23,823$21,622

55、$20,874$20,754$19,238$19,655$18,158$17,333$22,077$20,761$20,573$19,875$19,767$17,388$14,680$14,100$4,996$5,267$5,249$5,260$4,894$4,896$4,219$4,009$11,484$9,654$9,303$9,084$8,929$7,512$6,431$6,41419.0%3.8%2.4%1.7%18.9%16.8%0.3%5.3%$7,443$7,214$6,929$6,708$6,506$6,050$5,526$5,332 64.8%74.7%74.5%73.8%7

56、2.9%80.5%85.9%83.1%12,879,91212,928,04012,847,16012,734,42012,626,66011,695,15511,298,21511,225,822$0.89$0.75$0.72$0.71$0.71$0.64$0.57$0.57 12,830,52112,979,28112,918,63312,791,67112,692,05412,558,72411,367,24811,264,92311.0%9.3%9.3%9.5%9.8%8.6%9.2%9.5%$0.5788$0.5580$0.5391$0.5266$0.5150$0.5060$0.48

57、90$0.4750$18,766$18,438$16,422$17,474$14,755$15,801$11,527$10,040$104,563$103,511$99,825$95,265$91,257$86,922$69,766$67,272$82,312$82,741$82,684$82,621$82,672$75,662$84,340$69,335$186,875$186,252$182,509$177,886$173,929$162,584$154,106$136,60756%56%55%54%52%53%45%49%44%44%45%46%48%47%55%51%$253,194$

58、244,237$239,539$232,277$227,677$221,475$210,820$191,046$29,079$26,796$26,114$25,693$24,478$23,299$20,572$19,722$13,267$12,299$12,114$11,820$11,440$10,734$9,671$9,290$3,554$3,288$3,219$3,116$3,087$3,010$2,595$2,421$45,900$42,383$41,447$40,629$39,005$37,043$32,838$31,433$14,139$9,852$11,543$9,472$10,5

59、41$12,535$24,438$18,15465,10264,11863,77962,73862,505 62,186 61,527 58,8901071041051061111111101092,0022,023 1,7861,6581,6491,5161,4851,443$8.15$7.98$7.73$7.45$7.19$6.92$6.14$5.97$23.21$20.93$17.57$17.64$17.29$14.51$12.10$15.50285%262%227%237%240%210%197%260%26.127.9 24.424.824.422.721.227.2Suppleme

60、ntal Information(Unaudited)(In thousands of dollars,except per share amounts)20142013201220112010200920082007Q b h f!2 1U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportDirectors,Officers,&Key EmployeesJody L.Keller(4)Age 64Director Since 2015Board of Directors Key(1)Executive Committee (2)Aud

61、it Committee (3)Nomination and CorporateGovernance Committee(4)Compensation CommitteeRobert P.Newcomer(1)(2)(4)Age 69Director Since 2013Steven R.Rasmussen,CPA(2)(3)Age 45Director Since 2011Ernest J.Waters(1)(2)(4)Age 68Director Since 2007James H.Cawley(1)(3)Age 72Director Since 2016Jeffrey R.Hines,P

62、.E.(1)Age 56Director Since 2008George Hay Kain,III(4)Age 69Director Since 1986George W.Hodges(1)Age 67ChairmanDirector Since 2000Erin C.McGlaughlin(2)(3)Age 44Director Since 2016Michael W.Gang,Esq.(1)Age 67Director Since 1996Directors EmeritiJosephine S.AppellCynthia A.DotzelChlo R.EichelbergerJohn

63、L.FinlaysonHorace E.Keesey,IIIWilliam T.MorrisIrvin S.NaylorThomas C.NorrisJeffrey S.OsmanIn 1967,Lake Redman was built to help protect the community from drought.Fifty years later,in 2017,the 20-million-gallon-per-day Lake Redman Pump Station was constructed to further provide a reliable and redund

64、ant water supply in the event of floods,power outages,and contamination events.This pump station continues the over 200-year history of York Water preparing for the future and protecting our water supplies.U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportQ b h f!2 2Photo:Mike Mihalo Photograph

65、yOfficers&Key Employees Directors,Officers,&Key EmployeesVernon L.BraceyAge 56Vice President-Customer ServiceMatthew E.Poff,CPAAge 46Chief Financial Officer and TreasurerJohn H.Strine Age 61Vice President-OperationsMark S.Snyder,P.E.Age 47Vice President-EngineeringMolly E.NortonInvestor Relations an

66、dCommunications AdministratorNatalee Coln,SHRM-CPAge 30Human Resources ManagerJoseph T.HandAge 55Chief Operating Officer Jeffrey R.Hines,P.E.Age 56President andChief Executive OfficerQ b h f!2 3U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportKathleen M.MillerChief Financial Officer and Treasu

67、rerRetired 2017Chartered Territory Distribution and Supply SystemA map of York Waters 2017 chartered territory and service area,and photo of Lake Williams looking from one of its boat docks.U i f!Z p s l!X b u f s!D p n q b o z2017 Annual ReportThe York Water Company130 East Market StreetYork,Pennsylvania 17401717-845-