Aqua America 2Q earnings up 15%

Aqua America Inc. earnings for the second quarter increased 15 percent, which the company cited as an accomplishment despite bad weather and the recession.

Earnings for the Bryn Mawr-based company's quarter ended June 30, announced Tuesday evening, were $25.9 million (19 cents a share) on 1.4 percent more shares outstanding, compared with earnings a year ago of $22.6 million (17 cents a share).

The Philadelphia area "had 16 days of rain in June, which was more than twice last year's number, while for the quarter there were 45 days of rain versus just 29 days in 2008," said Aqua America Chairman and CEO Nicholas DeBenedictis. "Rainfall, especially frequent rainfall, leads to less water usage, which results in less revenue. The temperature in many of our service areas in June was also cooler than normal, resulting in less lawn watering."

Aqua America has continued to receive rate awards, getting enough rate relief so far in 2009 to increase annual operating revenues by $27.2 million.

The company said it expects to invest a record of almost $300 million this year on current capital expenditures, with a focus on pipe replacement projects and plant upgrades.

Aqua Pennsylvania Inc. will be issuing $58 million in tax-exempt first mortgage bonds, and the company received a $1.23 million low-interest loan from the Pennsylvania Infrastructure Investment Authority for water-quality improvements.

The share price was down 20 cents, to $17.92, at midafternoon.    - Roslyn Rudolph