Middlesex Water Company Announces Third Quarter 2013 Financial Results

Middlesex Water Company Announces Third Quarter 2013 Financial Results

ISELIN, N.J., Nov. 6, 2013 (GLOBE NEWSWIRE) -- Middlesex Water Company
(Nasdaq:MSEX) ("Middlesex" or the "Company") today reported third quarter
operating revenues of $31.3 million compared to $32.4 million for the same
period in 2012. Net income for the quarter decreased to $5.8 million from $6.1
million in the same quarter of 2012. Earnings per basic and diluted share for
the quarter were $0.36, compared to $0.39 and $0.38, respectively, for the
same period in 2012.

Third Quarter Operating Results

Operating revenues for the third quarter decreased $1.1 million from the same
period in 2012.Revenues in the Middlesex system decreased $1.3 million,
primarily due to greater precipitation than expected during the third quarter
2013; decreased demand related to Hess Corporation ("Hess"), Middlesex's
largest customer, ceasing its oil refining operations at its Port Reading, New
Jersey facility in February 2013 and decreased contract sales to
municipalities of $0.6 million, primarily due to loss of the Borough of
Sayreville, New Jersey ("Sayreville") as a wholesale contract customer in
August 2013 due to expansion of the Borough's own supply and treatment
capability.Partially, and positively offsetting these factors were the full
quarter effect of the base rate increase that went into effect July 2012 in
the Middlesex system and $0.1 million of increased revenues realized by our
Tidewater system in Delaware earned through new water customer connections.

Operation and maintenance expenses for the three months ended September 30,
2013 decreased $0.5 million from the same period in 2012.This was
attributable primarily to a $0.6 million decrease in employee benefit expenses
prompted by an amendment to Middlesex's postretirement medical benefit plan
which further limits eligibility for benefits and increases contributions by
future retirees.

Middlesex Water Chairman and Chief Executive Officer Dennis Doll said,
"Despite the decreased demand for water prompted by the loss of two large
customers, we reduced costs, continued to invest in water infrastructure and
stayed focused on delivering on our growth strategy.In addition to increasing
efficiencies to better serve our customers, we recently announced the
acquisition of a 600-customer wastewater company in Delaware, achieved
milestones in our non-regulated partnership projects such as our biogas
renewable energy project in Ridgewood, New Jersey and a leachate treatment
contract to benefit the County of Monmouth, New Jersey. In addition, we are
expanding our contract operations business into the military market with the
recent contract award from the U.S. Department of Defense to privatize the
water system operations of Dover Air Force Base in Dover, Delaware.In all
these endeavors, controlling costs, protecting the environment and enhancing
service to customers is critical to our continued success," said Doll.

Nine Month Operating Results

For the nine months ended September 30, 2013, revenues were $87.4 million, as
compared to $83.3 million for the same period in 2012.Revenues in our
Middlesex system increased $2.0 million, primarily due to the effect of the
base rate increase granted in July 2012.Offsetting the increase was less
customer demand resulting from the loss of Hess, Middlesex's largest customer;
greater than expected precipitation events during the second and third
quarters of 2013 and loss of Sayreville as a customer in August 2013.Revenues
in our Tidewater system increased $0.4 million, primarily due to new customer
connections as well as final rate increases that went into effect in June
2012. Non-regulated contract operations revenues increased by $1.3 million
for our contracts serving the City of Perth Amboy, New Jersey and the Borough
of Avalon, New Jersey ("Avalon"). 

Operation and maintenance expenses increased $1.0 million from the same period
in 2012, primarily due to increased labor costs, higher water treatment costs
caused by increased precipitation, a higher number of main breaks in 2013 as
compared to 2012 and expenditures for contract operations serving Avalon, New
Jersey which commenced July 1, 2012.

Net income increased $1.8 million from the same period in 2012.Basic and
diluted earnings per share for the nine months were $0.84 and $0.83,
respectively compared to $0.73 in 2012.

Quarterly Dividend Increased for 41st Consecutive Year

On October 22, 2013, the Company's Board of Directors approved an increase in
the quarterly cash dividend on common stock to $0.1900 from $0.1875. The new
dividend rate is payable December 2, 2013 to shareholders of record as of
November 15, 2013. This dividend increase raises the annual dividend to $0.76
from $0.75 per share of common stock and represents the 41st consecutive year
of annual dividend increases.

About Middlesex Water Company

Middlesex Water Company, organized in 1897, provides regulated and unregulated
water and wastewater utility services primarily in New Jersey and Delaware
through various subsidiary companies. For additional information regarding
Middlesex Water Company including information about the Company's Dividend
Reinvestment and Common Stock Purchase Plan, visit the Company's Web site at
www.middlesexwater.com or call (732) 634-1500.

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, among others, our
long-term strategy and expectations, the status of our acquisition program,
the impact of our acquisitions, the impact of current and projected rate
requests and the impact of our capital program on our environmental
compliance. There are important factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking
statements including: general economic business conditions, unfavorable
weather conditions, the success of certain cost containment initiatives,
changes in regulations or regulatory treatment, availability and the cost of
capital, the success of growth initiatives and other factors discussed in our
filings with the Securities and Exchange Commission.

(In thousands except per share amounts)
                                      Three Months Ended Nine Months Ended
                                       September 30,       September 30,
                                      2013      2012      2013      2012
Operating Revenues                     $31,285 $32,353 $87,424 $83,300
Operating Expenses:                                               
Operations and Maintenance             15,120    15,600    45,698    44,740
Depreciation                           2,772     2,629     8,205     7,759
Other Taxes                            3,123     3,281     9,215     8,871
Total Operating Expenses               21,015    21,510    63,118    61,370
Operating Income                       10,270    10,843    24,306    21,930
Other Income (Expense):                                           
Allowance for Funds Used During        104       110       230       383
Other Income                           27        106       124       423
Other Expense                          (1)       (4)       (21)      (155)
Total Other Income, net                130       212       333       651
Interest Charges                       1,541     1,808     4,234     4,941
Income before Income Taxes             8,859     9,247     20,405    17,640
Income Taxes                           3,052     3,109     6,940     5,970
Net Income                             5,807     6,138     13,465    11,670
Preferred Stock Dividend Requirements  44        52        147       155
Earnings Applicable to Common Stock    $5,763  $6,086  $13,318 $11,515
Earnings per share of Common Stock:                               
Basic                                  $0.36   $0.39   $0.84   $0.73
Diluted                                $0.36   $0.38   $0.83   $0.73
Average Number of                                                 
Common Shares Outstanding :                                       
Basic                                  15,882    15,741    15,839    15,717
Diluted                                16,117    16,004    16,093    15,980
Cash Dividends Paid per Common Share  $0.1875 $0.1850 $0.5625 $0.5550

CONTACT: Bernadette Sohler, Vice President - Corporate Affairs
         Middlesex Water Company
         1500 Ronson Road
         Iselin, New Jersey  08830
         (732) 638-7549

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