Middlesex Water Company · NASDAQ:MSEX
Middlesex Water — Shareholder Meeting (May 2022)
27 slides from Middlesex Water's shareholder meeting presentation, May 25, 2022
Slide 1: Annual Meeting of Shareholders May 23, 2022
ANNUAL MEETING OF SHAREHOLDERS MAY 23, 2022
Slide 2: Speakers
Speakers: Dennis W. Doll Chairman, President & CEO A. Bruce O’Connor Sr. Vice President, Treasurer & Chief Financial Officer Jay L. Kooper Vice President, General Counsel & 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: MSEX Milestones
MSEX Milestones 125 Years of water utility service. 30 th Anniversary of the acquisition of Tidewater Utilities. 40 th Anniversary NASDAQ Listing. Added to the Standard & Poor’s Small Cap 600 Index. 4
Slide 5: 2021 Financial Highlights
2021 Financial Highlights Revenues………………………..$143.1M Net Income………………..…..$ 36.5M Earnings Per Share………….$ 2.07 5
Slide 6: First Quarter Results
First Quarter Results (Millions) 2022 2 02 1 Operating Revenues $36.2 $32.5 O & M Expenses $19.1 $18.4 Gain on Subsidiary Sale $ 5.2 $ - Net Income $12.1 $ 6 .9 Earnings Per Share $ 0.69 $ 0 .3 6 9
Slide 7: Sale of Subsidiary
Sale of Subsidiary 7 ▪ Regulated Delaware wastewater utility - sold in January 2022. ▪ Limited growth opportunities. ▪ Utility plant investment headwinds. ▪ Other Delaware regulated and non - regulated businesses to continue.
Slide 8: Revenue
Revenue 9% 91% Non Regulated Regulated New Jersey $86.4 Million 8 Delaware $44.3 Million Regulated
Slide 9: Net Income
Net Income 7% 93% Non Regulated Regulated New Jersey $20.1 Million 9 Delaware $13.7 Million Regulated
Slide 10: Utility Plant
Utility Plant (Millions) $332 $519 $598 $696 $744 $810 $168 $236 $255 $276 $298 $321 $0 $ 2 00 $ 4 00 $ 6 00 $ 8 00 $ 1 ,0 0 0 $ 1 ,2 0 0 2 0 11 2 0 18 2 0 19 2 0 20 2 0 21 2 0 2 2 E New Jersey D ela w are 10
Slide 11: Customers
Customers 65,960 66,020 66,040 66,060 66,090 49,670 52,130 55,280 57,880 60,380 0 2 0 ,0 0 0 4 0 ,0 0 0 6 0 ,0 0 0 8 0 ,0 0 0 1 0 0, 0 00 1 2 0, 0 00 1 4 0, 0 00 2 0 19 2 0 20 2 0 21 2 0 2 2 E 2 0 2 3 E New Jersey D ela w are 11
Slide 12: Capital Expenditures (Estimated)
Capital Expenditures (Estimated) (Millions) Distribution Systems Production Systems IT Systems Other T otal 2022 2023 2024 202 2 - 2024 50 54 45 149 33 21 3 57 4 1 2 7 3 5 8 16 $ 90 $81 $58 $229
Slide 13: Capital Project Funding
Capital Project Funding • Cash Flow From Operations. • Lines of Credit. • Remaining Proceeds 2021 DESRF Loan. • Common Stock Reinvestment Plan. • Private Placement Debt.
Slide 14: 3% Stock Purchase Discount
3% Stock Purchase Discount 14 • On purchases of MSEX Common Stock through the Company’s Investment Plan (the “Plan”). • Purchases by optional cash payment and/or by dividend reinvestment. • Began September 2021 and continues until 200,000 shares are purchased at the discounted price or August 1, 202
Slide 15: Dividends Paid
Dividends Paid Dividend increased by 6.4% in October 2021. Annual Dividend Rate: $1.16 per share 0.91 15 1.04 0.97 $0.86 $0.80 $0.60 $0.40 $0.20 $0.00 1.11 $ 1.00 $ 1.20 2 0 17 2 0 18 2 0 19 2 0 20 2 0 21
Slide 16: Diluted Earnings Per Share and Dividend Payout Ratio
$1.38 $1.96 $2.01 $2.18 $2.07 62% 46% 49% 48% 54% 0% 1 0 % 2 0 % 3 0 % 4 0 % 5 0 % 6 0 % 7 0 % $ 0 .00 $ 0 .50 $ 1 .00 $ 1 .50 $ 2 .00 $ 2 .50 2 0 17 2 0 18 2 0 19 2 0 20 2 0 21 Dividend Payout Ratio Diluted Earnings Per Share Diluted Earnings Per Share Dividend Payout Ratio 16 Diluted EPS Payout Ra
Slide 17: Operations Highlights
CELEBRATING 2 \, \ "= YEARS LS WM ic oovesex ATER COMPANY OPERATIONS HIGHLIGHTS
Slide 18: Ozone Plant & Associated Upgrades
Ozone Plant & Associated Upgrades $70 million investment in drinking water treatment and electrical upgrades to support service in extended adverse weather events 18
Slide 19: New Treatment Mitigates Disinfection By-Products & Emerging Contaminants
New Treatment Mitigates Disinfection By - Products & Emerging Contaminants 19
Slide 20: Park Avenue Plant Interim Treatment
Park Avenue Plant Interim Treatment Partial Interim Treatment to begin May 2022 with full plant completion expected by July 2023. 20
Slide 21: RENEW 2021 and RENEW 2022 Projects
$10.2 Million project completed in Borough of Metuchen, NJ 4 Miles of main including service lines, valves and fire hydrants were upgraded RENEW 2021 RENEW 2022 $7.9 Million project under way in Woodbridge NJ 4.5 Miles of main including service lines, valves and fire hydrants are being upgraded Lead
Slide 22: Lead Service Line Replacement
Lead Service Line Replacement In accordance with the New Jersey Legislation signed into law on July 22, 2021, utilities must replace the entire length of the lead or galvanized steel service line from the water main in the street to the water meter on the home or building owner’s property within 10
Slide 23: Emergency Preparedness
Emergency Preparedness Georgia Simpson named Chief Technology Officer 23 MWC Teams participate in the Broken Silos Emergency Drill
Slide 24: Governance Update
Governance Update Vaughn L. McKoy, JD, MBA named to Board of Directors, Class III on July 15, 2021. 24 Mr. McKoy is Partner with the firm of Inglesino, Webster, Wyciskala & Taylor, LLC where he specializes in general and commercial litigation, regulatory matters, corporate governance, ethics and com
Slide 25: Our Sustainability Journey
Our Sustainability Journey Continuing Our Progress x Improved transparency and disclosure x Greater engagement with rating agencies x Now tracking carbon emissions in NJ and DE x Enhanced dialogue and training related to Diversity, Equity and Inclusion x Remote work model adopted to ensure work life
Slide 26: Time Allotted for Shareholder Questions
Time Allotted for Shareholder Questions
Slide 27: Thank you for participating in our Annual Meeting
Thank you for participating in our ANNUAL MEETING. For more information, please visit the Investors tab at www.middlesexwater.com