Market value of equity: $3,427.63 M
Debt: $1,802.64 M
Cash & Equivalents: $4.27 M
Enterprise Value: $5,226 M
Debt: $1,802.64 M
Cash & Equivalents: $4.27 M
Enterprise Value: $5,226 M
EBITDA less CapEx: $-183.47 M
Pre-tax Cap Rate: -3.51%
- Unique Water Utility Industry Consolidation Opportunity; 50,000 systems regulated by EPA; 85% municipal / 15% private
- $384.4 billion needed from 2011-2030; EPA’S ESTIMATE OF THE NATIONAL NEED FOR WATER INFRASTRUCTURE
- Capex investment is accretive; 50/50 capitalization of debt & equity
- 12/31/11, 52% ofAqua America’s fixed rate long term debt cames from tax exempts and state revolving funds
- utility system investments add income without an immediate impact on customer rates
- Customer growth from acquisitions and organic growth totaled 7,500 customers
- A+ credit rating for Aqua Pennsylvania; 227 electric, gas, and water utilities rated by Standard & Poor’s, only one has a higher rating than Aqua Pennsylvania
- weighted average cost of fixed-rate long-term debt was 5.02 percent
- announced 5-for-4 stock split and 9 percent dividend increase
- strategy of growth through acquisition, pruning underperforming assets, operational efficiency, and investing in needed infrastructure improvements
- Aqua America Chairman and CEO Nicholas DeBenedictis stated "...repair tax accounting change delivered increased net income in the quarter."
- repair tax accounting change allows the company to continue investing in needed infrastructure improvements in excess of more than $300 million companywide annually without seeking rate increases from its customers
- repair tax institutes a rate freeze and foregoes revenue from rate increases with the flow-through accounting treatment of income tax benefits
I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.
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