The York Water Company reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue growth and a decline in profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, operating revenues increased to $19,715,000, a rise of 5.1% from $18,767,000 in the same period of 2023. This growth was attributed to a $131 distribution system improvement charge (DSIC) and an expanding customer base, which saw an increase of 1,062 water customers and 567 wastewater customers year-over-year. However, operating income decreased to $8,055,000 from $8,433,000, and net income fell to $5,863,000, down 22.5% from $7,568,000 in Q3 2023. Basic earnings per share also declined to $0.41 from $0.53.

For the nine months ended September 30, 2024, total operating revenues rose to $56,093,000, a 6.0% increase from $52,935,000 in the prior year. This increase was primarily driven by a rate hike effective March 1, 2023, and a growing customer base. However, net income for the nine-month period decreased to $15,183,000, down 14.4% from $17,745,000 in 2023. Operating expenses surged by 13.7% to $34,761,000, largely due to higher costs in depreciation, wages, and distribution system maintenance.

The company’s total assets increased to $621,420,000 as of September 30, 2024, up from $588,205,000 at the end of 2023. Common stockholders’ equity also rose to $228,688,000, compared to $221,178,000 previously. Long-term debt increased to $198,439,000 from $180,007,000, reflecting the company’s ongoing investments in infrastructure and capital projects.

Strategically, York Water completed several acquisitions, including MESCO, Inc. and Longstown Mobile Estates, which added approximately 180 and 90 wastewater customers, respectively. The company also acquired the Houston Run Community Water System, adding 15 water customers. These acquisitions were deemed immaterial to the overall results. Additionally, the company is pursuing further acquisitions and bulk water contracts to mitigate potential declines in per capita water consumption.

The company’s effective tax rate increased to 8.9% for the nine months ended September 30, 2024, compared to 5.8% in the prior year, attributed to lower deductions from IRS regulations. The company continues to focus on maintaining its credit rating, which was affirmed at A- with a stable outlook by Standard & Poor’s in August 2024.