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Business Segment Data
 6 Months Ended
Jun. 30, 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  Six Month Ended
   June 30,  June 30,
   2025  2024  2025  2024
Operation by Segments                    
Revenues:                    
Regulated  $46,267   $45,966   $87,763   $83,431 
Non – Regulated   3,251    3,410    6,204    6,614 
Inter-segment Elimination   (195)   (230)   (343)   (375)
Consolidated Revenues  $49,323   $49,146   $93,624   $89,670 
                     
Operating Expenses                    
Purchased Water:                    
Regulated  $2,078   $1,967   $3,985   $3,753 
Non – Regulated   
—
    
—
    
—
    
—
 
Inter-segment Elimination   (74)   (114)   (103)   (141)
Consolidated Purchased Water  $2,004   $1,853   $3,882   $3,612 
                     
Other Operations and Maintenance Expenses:                    
Regulated  $19,152   $17,923   $36,646   $34,645 
Non – Regulated   2,031    2,165    3,887    4,267 
Inter-segment Elimination   (121)   (116)   (240)   (234)
Consolidated Other Operations and Maintenance Expenses  $21,062   $19,972   $40,293   $38,678 
                     
Other Taxes:                    
Regulated  $5,576   $5,640   $10,626   $10,383 
Non – Regulated   66    61    124    116 
Consolidated Other Taxes  $5,642   $5,701   $10,750   $10,499 
                     
Depreciation:                    
Regulated  $6,638   $6,239   $13,102   $11,568 
Non – Regulated   65    66    128    133 
Consolidated Depreciation  $6,703   $6,305   $13,230   $11,701 
                     
Operating Income:                    
Regulated  $12,943   $14,314   $23,644   $23,315 
Non – Regulated   969    1,001    1,825    1,865 
Consolidated Operating Income  $13,912   $15,315   $25,469   $25,180 
                     
Other Income:                    
Regulated  $2,019   $2,653   $3,921   $8,008 
Non – Regulated   38    50    93    109 
Inter-segment Elimination   (159)   (47)   (318)   (96)
Consolidated Other Income, Net  $1,898   $2,656   $3,696   $8,021 
   (In Thousands)
   Three Months Ended  Six Months Ended
   June 30,  June 30,
   2025  2024  2025  2024
Operation by Segments (continued)                    
Interest Charges:                    
Regulated  $3,782   $4,087   $6,654   $7,406 
Non – Regulated   —    
—
    —    
—
 
Inter-segment Elimination   (159)   (46)   (318)   (96)
Consolidated Interest Charges  $3,623   $4,041   $6,336   $7,310 
                     
Income Taxes:                    
Regulated  $1,088   $3,053   $1,960   $4,040 
Non – Regulated  $321    331   $611    623 
Consolidated Income Taxes  $1,409   $3,384   $2,571   $4,663 
                     
Net Income:                    
Regulated  $10,092   $9,826   $18,951   $19,877 
Non – Regulated  $686    720   $1,307    1,351 
Consolidated Net Income  $10,778   $10,546   $20,258   $21,228 
                     
Capital Expenditures:                    
Regulated  $31,696   $14,325   $50,549   $28,701 
Non – Regulated   28    23   $86    36 
Total Capital Expenditures  $31,724   $14,348   $50,635   $28,737 
                     

 

   (Thousands of Dollars)  
   As of  As of  
   June 30,
 2025		  December 31,
2024		  
Assets:        
Regulated   1,330,351   $1,264,472   
Non – Regulated   9,563    7,671   
Inter-segment Elimination   (24,024)   (16,969)  
Consolidated Assets  $1,315,890   $1,255,174