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Business Segment Data
 12 Months Ended
Dec. 31, 2024
Business Segment Data [Abstract]  
Business Segment Data

Note 8 – Business Segment Data

 

The Company’s Chief Operating Decision Maker (CODM) consists of the Company’s Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. The CODM evaluates segment performance and profitability using net income. This metric provides a clear, consistent basis for analyzing the financial results of each segment and supports decision-making regarding the allocation of resources.

 

Resource allocation to the Company’s regulated and non-regulated segments begins with the annual budgeting process, which establishes initial funding and resource levels for each segment. The budget incorporates key financial and operational inputs, including anticipated revenues, expenses, capital and financing requirements, aligning with the Company’s strategic objectives and regulatory obligations. The CODM reviews budget-to-actual variances on a monthly, quarterly and year to-date basis and makes interim decisions to reallocate resources among segments as needed, ensuring a timely and effective response to changing conditions. For the regulated segment, the CODM uses this assessment to determine whether the segment is achieving its regulatory authorized rate of return.

 

The segments follow the same accounting policies as described in Note 1 – Organization, Summary of Significant Accounting Policies and Recent Developments. Segment profit or loss is based on Net Income. Expenses used to determine operating income before taxes are charged directly to each segment or are allocated based on the applicable cost allocation factors. Assets allocated to each segment are based upon specific identification of such assets provided by Company records. The effects of all intra-segment and/or intercompany transactions are eliminated in the consolidated financial statements.

 

The Company has identified two reportable segments. One is the regulated business of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey and Delaware and includes Middlesex, Tidewater, Pinelands Water and Southern Shores. This segment also includes a regulated wastewater system in New Jersey, Pinelands Wastewater. The Company is subject to regulations as to its rates, services and other matters by the states of New Jersey and Delaware with respect to utility service within these states. The other segment is primarily comprised of non-regulated contract

services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware and includes USA, USA-PA, and White Marsh.

 

   (In Thousands) 
   Years Ended December 31, 
Operation by Segments  2024   2023   2022 
Revenues:               
Regulated  $179,359   $154,617   $151,117 
Non – Regulated   13,552    12,773    12,446 
Inter-segment Elimination   (1,034)   (1,116)   (1,129)
Consolidated Revenues  $191,877   $166,274   $162,434 
                
Operating Expenses               
Purchased Water:               
Regulated  $8,064   $9,144   $7,777 
Non – Regulated   
—
    
—
    
—
 
Inter-segment Elimination   (567)   (663)   (688)
Consolidated Purchased Water  $7,497   $8,481   $7,089 
                
Other Operations and Maintenance Expenses:               
Regulated  $76,483   $66,670   $64,170 
Non – Regulated   8,850    8,415    8,278 
Inter-segment Elimination   (467)   (453)   (441)
Consolidated Other Operations and Maintenance Expenses  $84,866   $74,632   $72,007 
                
Other Taxes:               
Regulated  $21,644   $18,504   $17,963 
Non – Regulated   230    240    245 
Consolidated Other Taxes  $21,874   $18,744   $18,208 
                
Depreciation:               
Regulated  $24,173   $24,931   $22,783 
Non – Regulated   257    263    246 
Consolidated Depreciation  $24,430   $25,194   $23,029 
                
Operating Income:               
Regulated  $49,462   $35,820   $44,257 
Non – Regulated   3,748    3,403    3,076 
Consolidated Operating Income  $53,210   $39,223   $47,333 
                
Other Income (Expense), Net:               
Regulated  $12,195   $6,637   $7,898 
Non – Regulated   281    214    279 
Inter-segment Elimination   (407)   (366)   (474)
Consolidated Other Income (Expense), Net  $12,069   $6,485   $7,703 
   (In Thousands) 
   Years Ended December 31, 
Operation by Segments (continued)  2024   2023   2022 
Interest Expense:               
Regulated  $14,430   $13,508   $9,833 
Non – Regulated   
—
    
—
    7 
Inter-segment Elimination   (407)   (365)   (473)
Consolidated Interest Expense  $14,023   $13,143   $9,367 
                
Income Taxes:               
Regulated  $5,653   $(146)  $2,084 
Non – Regulated   1,252    1,187    1,156 
Consolidated Income Taxes  $6,905   $1,041   $3,240 
                
Net Income:               
Regulated  $41,575   $29,094   $40,229 
Non – Regulated   2,776    2,430    2,200 
Consolidated Net Income   44,351    31,524    42,429 
                
Capital Expenditures:               
Regulated  $74,584   $90,047   $91,054 
Non – Regulated   38    132    281 
Total Capital Expenditures  $74,622   $90,179   $91,335 

 

   (In Thousands) 
   As of   As of 
   December 31, 2024   December 31, 2023 
Assets:          
Regulated  $1,264,472   $1,235,549 
Non – Regulated   7,671    8,068 
Inter-segment Elimination   (16,969)   (7,565)
Consolidated Assets  $1,255,174   $1,236,052