Middlesex Water Company · NASDAQ:MSEX
Middlesex Water — Shareholder Meeting (May 2021)
23 slides from Middlesex Water's shareholder meeting presentation, May 27, 2021
Slide 1: Annual Meeting of Shareholders May 25, 2021
Annual Meeting of Shareholders May 25, 2021 Dennis W. Doll Chairman, President and CEO
Slide 2: Additional MSEX Meeting Speaker Participants
Additional MSEX Meeting Speaker Participants A. Bruce O’Connor Sr. Vice President, Treasurer and Chief Financial Officer Jay Kooper Vice President, General Counsel and Secretary
Slide 3: Forward Looking Statement
Forward Looking Statement As an introduction to the information we will be discussing, please be aware that some of our comments can be considered forward - looking statements as defined by the federal securities laws and as outlined in the Company’s SEC filings. As such, any forward - looking state
Slide 4: Emergency Management/Business Continuity: Company COVID-Response
Emergency Management/Business Continuity COMPANY COVID - 19 RESPONSE x Focused on Protecting Employee and Customer Health and Safety x Extensive Safety Measures implemented x Frequent Board/Management Updates x Seamless transition to remote work status for “non - essential” workers x Suspension of c
Slide 5: Operations Highlights: Western Transmission Main
Operations Highlights Western Transmission Main x Project Completed □ $52 Million investment □ 4.5 Mile Supplementary transmission main in New Jersey □ Placed in service in April 2020 5
Slide 6: Operations Highlights: CJO Plant Upgrade
Operations Highlights CJO Plant Upgrade ▪ Approx. $72 M project ▪ New Ozone Treatment, Electrical Upgrades & More ▪ Expected online Q2 2021 6
Slide 7: Operations Highlights: RENEW
Operations Highlights RENEW □ $14 Million investment in Township of Edison, Borough of Metuchen and City of South Amboy (all in NJ) □ Service lines, valves and fire hydrants also being upgraded □ Work will improve fire flows and overall service quality □ Installing exterior meter pits RENEW Marked i
Slide 8: 2020 Business Highlights
2020 Business Highlights Continued Focus on… x Employee Safety x Employee Development & Training x Succession Planning for Key Roles x Diversity, Equity & Inclusion x Risk Management (ESG Risk & Disclosure) x Cyber Security x Culture & Connectivity 8
Slide 9: Other 2020 News
Other 2020 News Joshua Bershad , M.D. joined the MWC Board in December. MWC Named to the Top Workplaces List. MWC earned a Prime Designation for its ESG Efforts Tidewater Utilities honored by DE State Chamber of Commerce. Walter G. Reinhard Named Lead Director in May. 10 MSEX awarded 10 year water &
Slide 10: 2020 Financial Highlights
2020 Financial Highlights High Low • Revenues……………………….. $141.6M • Net Income………………..….. $ 38.4M • Earnings Per Share………… $ 2.18 New Highs 10
Slide 11: First Quarter Results
First Quarter Results (In Millions) $0.49 Operating Revenues O & M Expenses Net Income Earnings Per Share 2021 2020 $31.8 $25.2 $7.7 $0.44 $32.5 $26.9 $6.9 $0.39 11
Slide 12: Revenue
Revenue 9% 91% Non Regulated Regulated Regulated 12 New Jersey $86.6 Million Delaware $42.5 Million
Slide 13: Revenue - Regulated By Class
Fire 10% Contract 12 % C&I 19% Residential 59% New Jersey $38.5 Million Delaware $38.0 Million Revenue - Regulated By Class Residential 13
Slide 14: Net Income
Net I ncome 6% 94% Non Regulated Regulated New Jersey $23 Million Delaware $13 Million Regulated 14
Slide 15: Customers - DE
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2018 2019 2020 2021E 2022E 2023E Future Customers - DE 15 +4% +6% +4% +4% +5% +5%
Slide 16: Utility Plant - DE (Millions)
Utility Plant – DE (Millions) +$14 +$20 +$19 +$23 +$30 +$18 $0 $50 $100 $150 $200 $250 $300 $350 $400 2018 2019 2020 2021E 2022E 2023E 16
Slide 17: Customers - NJ
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2018 2019 2020 2021E 2022E 2023E + 136 Customers - NJ 17 +16 +60 +110 +110 +110
Slide 18: Utility Plant - NJ (Millions)
Utility Plant – NJ (Millions) +$58 +$79 +$98 +$101 +$80 +$68 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2018 2019 2020 2021E 2022E 2023E 18
Slide 19: Middlesex Base Rate Increase
Middlesex Base Rate Increase +$267 Million - Utility Plant Since 2017 Filing Date: May 20, 2021 Increase Components: Utility Plant Related $18.7M Depreciation $ 6.9M Operating Expenses $ 3.0M Taxes $ 2.7M $31.3M 19
Slide 20: Capital Project Funding
Capital Project Funding ▪ Remaining proceeds 2019 NJEDA Loan - $6.0 Million ▪ Up to a $40.0 Million private placement ▪ $20.0 Million CoBank Loan ▪ Lines of Credit ▪ Common Stock Reinvestment Plan 20
Slide 21: Consolidated Capital Structure
Consolidated Capital Structure ($ In Millions) Actual Forecast 3/31/2021 % 12/31/2021 % Debt $293 45.5% $350 48.8% Equity 351 54.5% 367 51.2% TOTAL $644 100% $717 100% 21
Slide 22: Time Allotted for Shareholder Questions
Time Allotted for Shareholder Questions 22
Slide 23: Thank You for Participating in Our 2021 Annual Meeting of Shareholders
Thank You for Participating in Our 2021 Annual Meeting of Shareholders For more information, please visit the Investors tab at www.middlesexwater.com 23