Middlesex Water Company · NASDAQ:MSEX
Middlesex Water — Shareholder Meeting (May 2010)
45 slides from Middlesex Water's shareholder meeting presentation, May 26, 2010
Slide 1: The Middlesex Water Enterprise Powered by Professionals
The Middlesex Water Enterprise Powered by Professionals Annual Meeting of Shareholders May 25, 2010
Slide 2: Forward Looking Statement
Forward Looking Statement Certain matters discussed in this presentation are forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward- looking statements can generally be identified as such
Slide 3: Y Dv
$ at) 160,000 . [= | a 140,000 =. | Y Dv 120,000 100,000 80,000 60,000 40,000 20,000 onBa7 9 t) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 4: Regulated vs. Non-Regulated Customers
Regulated vs. Non-Regulated Customers
Slide 5: Drivers of Growth
Drivers of Growth Demand for quality water and wastewater service continues in NJ, DE and beyond Increasingly stringent water quality regulations Developers/small systems seek problem solvers Service not restricted by geographic borders
Slide 6: Twin Lakes Utilities, Inc. Shohola, PA
Twin Lakes Utilities, Inc. Shohola, PA
Slide 7: Water Quality
Water Quality Providing safe, quality drinking water is the core of our business. Our customers place their confidence in us and we take our role as protectors of public health seriously.
Slide 8: Emergency Response
Emergency Response Systemwide Boil Water Advisory - March 2010 We continue to refine existing plans to address emergencies.
Slide 9: Water and Wastewater Facilities
Water and Wastewater Facilities We operate over 143 facilities in DE: § 87 Water Plants § 6 Wastewater Plants § 50 Contract Operation Agreements
Slide 10: Wandendale Wastewater Treatment Facility
• Angola, Sussex County, DE 340 acres for potential 1.45 MGD capacity facility • Service to approx. 5,000 homes • MBR with RIB disposal spray for spare area • Signed a one year extension on the conditional use plan. • Coastal Zone Permit Status Wandendale Wastewater Treatment Facility
Slide 11: Service in Delaware
Tidewater serves a combination of 348 residential communities and 582 commercial establishments from its 160 wells. SERVICE IN DELAWARE
Slide 12: Acres Square Miles Approved Since 2005
Actes 64 Square Miles Approved Since 2005 y 12000 y 10000 | | Il 2005 2006
Slide 13: Financial Highlights
Financial Highlights
Slide 14: $1.00 $0.80 $0.60 $0.40 $0.20 $0.00
$1.00 $0.80 $0.60 $0.40 $0.20 $0.00
Slide 15: Revenue Growth ($ Millions)
Revenue Growth ($ Millions)
Slide 16: Year Ended December 31, 2009 Performance
Year Ended December 31, 2009 2008 Operating Revenues $ 91.2 $ 91.0 Operating Expenses $ 71.0 $ 67.0 Net Income $ 10.0 $ 12.2 Diluted Earnings per Share $ 0.72 $ 0.89 Performance (millions except per share amounts)
Slide 17: Timely and Adequate Rate Increases; Factors Impacting 2009 Performance
Timely and Adequate Rate Increases - Tidewater - $3.0 Million base rate increase Effective March and September, 2009 - Middlesex - $1.0 Million PWAC rate increase Effective July 1, 2009 Customer Consumption - Customer Growth - Weather - Economy Operating Costs - Labor and Benefits - Water Production
Slide 18: First Quarter Ended March 31, 2010 Performance
First Quarter Ended March 31, 2010 2009 Operating Revenues $ 21.7 $ 20.6 Operating Expenses $ 18.4 $ 17.6 Net Income $ 1.6 $ 1.4 Diluted Earnings per Share $ 0.11 $ 0.10 Performance (millions except per share amounts)
Slide 19: Factors Impacting 2010 Financial Performance
Timely and Adequate Rate Increases - Middlesex - $7.8 Million base rate increase Effective March 17, 2010 - Tidewater - $0.2 Million DSIC rate increase Effective January 1, 2010 Customer Consumption - Customer Growth - Economy - Water Use Trends Operating Costs - Weather, Weather, Weather Factors Im
Slide 20: =NewJerseyiPA = Delaware
500 450 400 360 300 250 200 150 400 =NewJerseyiPA = Delaware 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 21: 2010 Construction Program ($ Millions)
Distribution System: $12.9 ERP IT System: 4.6 MWC RENEW Program: 3.5 Plant Improvements: 8.6 Other Infrastructure Needs: 3.6 Total: $33.2 2010 Construction Program ($ Millions)
Slide 22: 2010 Construction Funding
SRF Loans $3.5 Short-Term Loans 3.5 Reinvestment Plan 1.7 Customer Advances 1.7 Net Cash Flows 22.8 Total Funding $33.2 2010 Construction Funding
Slide 23: Dividends (Annual Rate)
Dividends (Annual Rate) 2006 2007 2008 2009 $0.69 $0.70 $0.71 $0.72 Ø Quarterly dividends paid since 1912 Ø Increased dividends for 37 consecutive years Ø Current Dividend Yield: 4.0%
Slide 24: $0.75 $0.65 + $0.55 + $0.45 + $0.35 + $0.25 '82 '84 '86 '88
$0.75 7 $0.65 + $0.55 + $0.45 + $0.35 + $0.25 '82 '84 '86 '88 '90 '92 194 $8698 dp ‘04 '06 '08 ~~ —«
Slide 25: Board/Management Changes
Board/Management Changes Steven M. Klein named to Board of Directors Richard M. Risoldi named Vice President Operations and Chief Operating Officer
Slide 26: Operating Highlights
Operating Highlights
Slide 27: Marsh Main Replacement
Marsh Main Replacement We replaced over 1 mile of water main beneath the Raritan River from Perth Amboy to South Amboy, NJ using directional drilling technology.
Slide 28: South River Basin
South River Basin
Slide 29: Marsh Main Modern Marvel
Marsh Main Modern Marvel The Challenge -Installation of over 5,400 feet of pipe The Tool - Enabling pullback under the river The pipe emerging from its mile- long journey.
Slide 30: A Safer Treatment Alternative
A Safer Treatment Alternative • Moving from chlorine gas to on-site generated liquid sodium hypochlorite as the primary disinfectant in the water treatment process. • New process is a safer treatment alternative which benefits our employees and the environment.
Slide 31: Chlorine Process Overview
Chlorine Process Overview SALT + WATER + ELECTRICITY = CHLORINE
Slide 32: Electrolytic Cell Chlorine Reaction
NaCl + H 2 O Electricity NaOCl (aq) Electrolytic Cell • Designed for Continuous Flow • 750 lbs / day output Chlorine Reaction Cells
Slide 33: Geographic Information Systems
Geographic Information Systems § Ability to Access and Update Field Data § More efficient coordination of main breaks and service calls § Better Asset Management with links to ERP § Integration of Hydraulic Modeling Tools § More Accurate Data for Finance, Administration, and Customer Service § Allow
Slide 34: Enterprise Resource Planning
Enterprise Resource Planning ü General Ledger - Completed ü Accounts payable - Completed ü Procurement - - Completed ü Human Resources - Live June 2010 ü Customer Care and Billing - Live June 2010 ü Work and Asset Management - Start Sept. 2010 ü Mobile Workforce Management - Start Sept. 2010 ü Time
Slide 35: RENEW Pipeline Rehabilitation
RENEW Pipeline Rehabilitation • Year 14 of a 25-Year Program • $3.5 million investment to replace water mains, valves and fire hydrants • Project preparation and pre-construction activities conducted • 23,500 feet of 6- and 8-inch main in Port Reading and Sewaren in Woodbridge Twp. • Project funding
Slide 36: RENEW (Cleaning and Lining of Cast Iron Pipe)
RENEW (Cleaning and Lining of Cast Iron Pipe)
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility Making environmentally and socially responsible choices throughout all facets of our business
Slide 38: Educating the next generation about watershed protection
Educating the next generation about watershed protection
Slide 39: EPA WaterSense Partner
EPA Q WaterSense PARTNER
Slide 40: Involved in our Local Communities
Involved in our Local Communities
Slide 41: Eo ce | ws Rul
Eo ce | 5 ws Rul
Slide 42: Honors and Awards
Honors and Awards Middlesex Water Named Green Leadership Winner in the area of Green Education. Tidewater Named “Best in the Business” by Workplace Dynamics LLC for the third time in the last 4 years. Middlesex Water Named to Fortune Small Business Magazine’s List of America’s Fastest Growing Public
Slide 43: Talented and Dedicated Employees
Talented and Dedicated Employees IDDLESEX om ATER COMPANY Se
Slide 44: Why Middlesex Water?
ü Stable with long-term growth potential ü Growing reputation for delivering sound, technical water and wastewater solutions ü Experienced management team and active industry leader ü Honest and ethical problem solver Why Middlesex Water?
Slide 45: Thank you for your interest, confidence and support
A Provider of Water, Wastewater and Related Products and Services A Provider of Water, Wastewater and Related Products and Services Thank you for your interest, confidence and support! www.middlesexwater.com