Aqua America, Inc. (NYSE: WTR) CFO David P. Smeltzer cited the company’s
continued customer growth, capital investment, low cost debt and
excellent credit rating as key factors in the company’s success while
speaking at the 17th Annual Emerald Groundhog Day Investment
Forum in Philadelphia, Pennsylvania.
"Despite the economic slowdown, Aqua America has completed 26
acquisitions since July 2008—18 of which were completed in 2009,” said
Smeltzer. "While the housing slowdown has impacted our organic growth,
it does not appear to be a major factor when small municipal or private
owners decide to sell their water or wastewater system.”
Smeltzer said the company has also been able to maintain its capital
program, which currently hovers around $300 million, by taking advantage
of state revolving loan funds (SRL)and other low-interest loan products
made available to the company as a result of its strong balance sheet
and excellent credit rating. "Aqua Pennsylvania—our largest subsidiary,
which accounts for the majority of our capital spend—enjoys an A+ credit
rating from Standard & Poor’s and is the largest investor-owned user of
Pennsylvania’s PENNVEST SRL program,” said Smeltzer. "While the year-end
numbers aren’t final yet, at the end of the third quarter 2009, 45
percent of Aqua America's total fixed-rate long-term debt consisted of
low interest financing that included tax-exempt debt and state revolving
loan funds.”
Smeltzer said the economies of scale that accompany its
growth-through-acquisition strategy, and the company’s ability to access
SRL programs as well as the capital markets for low cost debt, play a
key role in the company’s ability to maintain affordable rates for its
customers. Smeltzer cited an EPA report that found that water is the
most affordable of all utilities, costing Americans less than one
percent of annual household income. He added that the company’s capital
program benefits customers by providing quality water and reliable
service for current and future generations, and shareholders by
providing an investment on which the company can earn a return for its
shareholders.
Aqua America, Inc. is a publicly traded water and wastewater utility
holding company with operating subsidiaries serving approximately three
million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas,
New Jersey, New York, Indiana, Florida, Virginia, Maine, Missouri, South
Carolina and Georgia. Aqua America is listed on the New York Stock
Exchange under the ticker symbol WTR.
This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, the Company’s ability to continue its
growth-through-acquisition strategy, its strategy for infrastructure
improvements and on infrastructure projects in 2010, the impact of
infrastructure improvements on service, and possible interest rate
savings and their effect on rate payers. There are important factors
that could cause the actual results to differ materially from those
expressed or implied by such forward-looking statements including among
others, the company’s ability to access low-interest and tax-exempt
financing programs; the company’s ability to realize the benefits from
low-interest or tax-exempt financing; the effect of the low-interest
financing on the company’s interest expense; the company’s ability to
successfully complete its infrastructure projects; general economic
business conditions; changes in regulations or regulatory treatment;
availability and cost of capital; and other factors discussed in our
Annual Report or Form 10-K for the fiscal year ended December 31, 2008,
which is on file with the SEC. We undertake no obligation to publicly
update or revise any forward looking statement.
WTRF
