Middlesex Water Company · NASDAQ:MSEX
Middlesex Water — Investor Presentation (July 2019)
21 slides from Middlesex Water's investor presentation, Jul 17, 2019
Slide 1: Investor Presentation July 2019
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Slide 2: Disclaimer
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) DISCLAIMER This presentation contains “forward-looking statements” within the meaning of U . S . federal securities laws regarding Middlesex Water Company
Slide 3: Management Presenters
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) MANAGEMENT PRESENTERS Dennis W. Doll Chairman, President & CEO 14 years with MSEX, CEO since 2006 Bruce O’Connor Senior VP, Treasurer & CFO 29 years with M
Slide 4: MSEX at a Glance: Diversified Services Portfolio
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) Diversified Services Portfolio MSEX AT A GLANCE ; Founded in 1897 ; Headquartered in Iselin, NJ ; ∼ 330 employees ; Owner/operator of water utility and was
Slide 5: Stable Northeastern Coverage
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) STABLE NORTHEASTERN COVERAGE ; Middlesex System – Approximately 61,300 retail customers – Population of served contract area: approximately 219,000 ; Pinel
Slide 6: MSEX Opportunity
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) MSEX OPPORTUNITY Performance Profile ✔ Objective Regulatory Environment ✔ Established Reputation for Technical and Operational Excellence ✔ Stable Resident
Slide 7: Environmental, Social & Governance
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) ENVIRONMENTAL, SOCIAL & GOVERNANCE _____________________ Source: 2019 Annual Meeting of Shareholders Presentation. Environmental Stewardship We work to min
Slide 8: Attractive Opportunities for Continued Growth & Profitability
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) ATTRACTIVE OPPORTUNITIES FOR CONTINUED GROWTH & PROFITABILITY 2018 10 - K pg 21 outlines growth ops Invest in projects, products and services that compleme
Slide 9: The Water Utility Industry
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) [ ] The Water Utility Industry Page 8
Slide 10: & Page
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) Page 9
Slide 11: & Page
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Slide 12: The Business Model: A Regulated Water Company
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) THE BUSINESS MODEL: A REGULATED WATER COMPANY • Earn a return on invested capital • Recover all other costs • Add non - regulated income Revenue requiremen
Slide 13: Financial Highlights
Artwork is located here: [tracker for .ai, .psd, etc. file (s)] ARTWORK (DTP USE ONLY) 33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors FINANCIAL HIGHLIGHTS
Slide 14: MSEX Summary Financial Profile
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) 1.5% Key Earnings and Dividend Statistics $0.76 $0.78 $0.81 $0.86 $0.91 $0.93 $- $0.20 $0.40 $0.60 $0.80 $1.00 2014 2015 2016 2017 2018 TTM Q1 2019 68% 64%
Slide 15: Capital Expenditures Outlook
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) CAPITAL EXPENDITURES OUTLOOK ; Distribution: Large and small mains, service lines and hydrants ; Production: New and upgraded water and wastewater treatmen
Slide 16: Rate Activity History
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) RATE ACTIVITY HISTORY Entity Effective Annual Revenues Middlesex 4/1/2018 $5.5M Middlesex PWAC 10/30/2017 $0.8M TUI DSIC 1/1/2018 $0.4M Tidewater 1/1/2019
Slide 17: Factors Affecting Earnings
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) FACTORS AFFECTING EARNINGS Timely Rate Recovery Regulator decisions on rate increase requests Customer Growth Effects of general economic conditions, compe
Slide 18: Summary
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) SUMMARY Sustainable and consistent financial performance 1 Disciplined infrastructure investment and growth 2 Balanced revenue base supported by best - in
Slide 19: Appendix
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Slide 20: Additional Financial Metrics
Artwork is located here: [tracker for .ai, .psd, etc. file (s)] ARTWORK (DTP USE ONLY) 33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors Additional Financial Metrics
Slide 21: Additional Financial Metrics
33 61 118 255 192 0 72 182 195 95 147 187 176 209 117 255 192 0 Color Palette TITLE LINES & BOXES 0 0 0 Additional Colors ARTWORK (DTP USE ONLY) Trailing 12 Months 2017 2018 Q1 2019 Return on equity 10.1% 13.4% 14.1% Book value per share $13.90 $15.04 $15.32 Total equity % 62.5% 62.2% 61.8% Long ter