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Business Segment Data
 3 Months Ended
Mar. 31, 2025
Business Segment Data [Abstract]  
Business Segment Data

Note 5 – 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 of the 2024 Form 10-K. 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) 
   Three Months Ended 
   March 31, 
Operation by Segments  2025   2024 
Revenues:          
Regulated  $41,496   $37,465 
Non – Regulated   2,952    3,204 
Inter-segment Elimination   (147)   (145)
Consolidated Revenues  $44,301   $40,524 
           
Operating Expenses          
Purchased Water:          
Regulated  $1,907   $1,789 
Non-Regulated   
—
    
—
 
Inter-segment Elimination   (28)   (30)
Consolidated Purchased Water  $1,879   $1,759 
           
Other Operations and Maintenance Expenses:          
Regulated  $17,493   $16,720 
Non – Regulated   1,856    2,101 
Inter-segment Elimination   (119)   (116)
Consolidated Other Operations and Maintenance Expenses  $19,230   $18,706 
           
Other Taxes:          
Regulated  $5,050   $4,744 
Non – Regulated   58    54 
Consolidated Other Taxes  $5,108   $4,798 
           
Depreciation:          
Regulated  $6,464   $5,329 
Non – Regulated   63    67 
Consolidated Depreciation  $6,527   $5,396 
           
Operating Income:          
Regulated  $10,701   $8,999 
Non – Regulated   856    866 
Consolidated Operating Income  $11,557   $9,865 
           
Other Income:          
Regulated  $1,901   $5,355 
Non – Regulated   55    59 
Inter-segment Elimination   (159)   (50)
Consolidated Other Income, Net  $1,797   $5,365 
   (In Thousands) 
   Three Months Ended 
   March 31, 
Operation by Segments (continued)  2025   2024 
Interest Charges:          
Regulated  $2,872   $3,319 
Non – Regulated   
—
    
—
 
Inter-segment Elimination   (159)   (50)
Consolidated Interest Charges  $2,713   $3,269 
           
Income Taxes:          
Regulated  $872   $987 
Non – Regulated  $290    292 
Consolidated Income Taxes  $1,162   $1,279 
           
Net Income:          
Regulated  $8,858   $10,049 
Non – Regulated  $621    633 
Consolidated Net Income  $9,479   $10,682 
           
Capital Expenditures:          
Regulated  $18,853   $14,376 
Non – Regulated   58    13 
Total Capital Expenditures  $18,911   $14,389 

 

   (Thousands of Dollars) 
   As of   As of 
   March 31, 2025   December 31, 2024 
Assets:        
Regulated   1,293,783   $1,264,472 
Non – Regulated   8,047    7,671 
Inter-segment Elimination   (22,869)   (16,969)
Consolidated Assets  $1,278,961   $1,255,174