The York Water Company
130 East Market Street
York, Pennsylvania 17401
717-845-3601
www.yorkwater.com
U i f ! Z p s l ! X b u f s ! D p n q b o z
2013 Annual Report
Our G V U V S F
1
'
Is Framed by Our Past Vision
2 : 9 !
th
Z f b s
' Lively Bidding At Auction
Held In Owen And Broth
er's Rooms
_,
FRY
SECURITIES
SOLD
..
II
Will Be;:.
'?.0 W t2l ·cr_,.
To Tlura CI~-' C1
.:.
D-1~gate~
R VENTED
G IN YORK
--
WEEK'S TEST Cd'MPLETEO BY PROF.
CAIRD, . HIGH AUTJ-iORITY
Presidem: Of W a;~er Con1pany
Points Out In Reviewing
Utility's History
h
J ~ADDRESSES ROTARIANS --_..._._.,_......,...,...:,_.;:.;.:;... New York eacterlo~ogl~t Can Clto None
More Efficient at Such Low Operating
Stertllzatlon 99.98 Per Cent
Cost -
PLANT IS SECOND TO NONE
On~ band!'"'a nnd !.hirtcen yenr;: o ·
The York Water Company
130 East Market Street
York, Pennsylvania 17401
717-845-3601
www.yorkwater.com
U i f ! Z p s l ! X b u f s ! D p n q b o z
2013 Annual Report
Our G V U V S F
Is Framed by Our Past Vision
2 : 9 !
Z f b s
:-tock rf'c.=-ptly sold. Sixty-n1M PISTI:Z£Bt77'Ial\r-SYSTE.i\£
X IC' NO. •!-
( a )
J.V«pShQWln[/
.
,af'f:h,..
YlJmr l f'ArEBCOlo:f/YNJ,..
'YOrkPdlfr.',Ybzmkt.
WATER STOCK SOARS
Reco~d Pri;.e of 68't2 Paid Last
N ight At Owen's Auction
Other Securities Sold
s'(ll were-
lot" : T '"'n
.>8,
u t
1:1 Rhan~s at 6R%.
following
l'h e sa.m~ thn.t;
thP-
securitit:.; were ~.;old:
$500 .Middle~
town and Roya I ton Water company
ll t. i:f.IO and. nccrued lntet•e:=:t; tlv.,.
l:i' :>
:;h a.t"t•s
::,· ork State bank ~tt
(i2;2 ; Sl !lO 1'"c:H·k C:~LS rompany o'a at
TO::l ~nd :l.CCl'l.t~d UH>'r~.st; 17 sha.re::~
:turk 2'Jatl ontt1 a.l 611;~; five slw.rt:.R
Ynl'l< X~:ttlonal bank at 611h.
,:..; o:rtll
.\t
r,rconl Pril'c,
'ThP lll"k~ of Tork :-.rational iR also
bt-ing o11e dollar
a.
lJiglH:•r than tlli.s sto<-k has ever ~;old ~
Jn/ thf" pnhlic marl. cit:, of York
,. •. N.P- recched
b;-.·
· will art'h·1"d in a few day·s.
~
---===----=-=--•
MANY ARE ATTRAOTE·D s
~-\Jl Ot' th~~e trees a r e l'·ed and White
!JiJl~. E'\ ergrecns hcing c-bo&en b~ca.1.1 se
-
_ 11 '·1·~ ·".--~dinK of lhe leaves of d-ecidu~
~~O?tlel!:. in~o tho basin was ro · -
TO RESERVOIR PARK ~ ohJE:~t~nnable. Tlwr e haxe
.
-plant~d
ReSt"rvoir park along the Country e :.tot-ap-e basin as a. s tart for
road has been attra'Otln g -·a,.'lE>nse rPforcs.hn g· project.
t.;l.:<'n
1
ltiR,OI)O
trees
,
- Club
~ ·
·
F
largG number of visitors daily and
thl:()ughout the summer tt had been
- estimated that an average of more
than one picnic a. day was held on I :-;f1c,J':'T1,""/I( 'fn"
the beautttui
Sunday school classes a.nd cbur~b I ~-------------:!
soetettes have held afternoon .sup~
-pers.
Numerous
V.A'!'"' r.HOTrJtt\; ~ .QE:.
la.wns.
AI)!l~
•
Brown indicates pipe 1R1d 1850- 1860 .
•
Ysllow
1860 - 1870.
•
• 1870 - 1880,
Oresn
1880 - 1890 •.
•
Blus
•
Red
1890 - 1900.
• 1900- 1910.
Purp1s
The lawns and evergreens are fn
roads
excellent condition and the
have been oiled during the Bummoi'
which has prevented the ralaing ot
'fO'' ' ·an)" dust.. Thts part contalnR 72
acre-R of ground and, on account of
"'
benches are provided by the 1
1
i~: el~~~tto~~ a o~~~~~an1~~e~ DROUGHT :pR· OVES WORTH
I·M. POUNDING BASIN
:::;,. ~~x;;::t~~ ~~rs~:~~isl~~~~ oF·
th;h:t~~~~:a.~hich had been clc
.
for a. few days on account or la: NO WATER SHORTAGE HER E
the SlOO,OOO, plpe through the &"t'ou
trom the -pumping Atat1ou, are .
ooon tQ the general publ1c du
REFORESTATION HEl.PS
CONSERVE SU PPLY
.
·
·
r11::
I.
~INFALL ONLY ·.6
INCH
WATER SUPPLY IS
MORE ASSURED
Secretr.iT Of Forests And
\Vaters Praises Forestation
Work Of York \Vater Co.
WATER STOCK SOARS
Re~ord Price of
68Y2 Pa id La s t
Night At Owet'l 's Auction
Other Sec.urities S o ld
The }>r1.ce for York Wat.m: com
pany stock bro·kc all t·ecords
last
oveuin g at the tl,uction rooms of V~t
S. Owen and Brother, '\Yherf\ it sol d
R.c:~ higti as o!P 2 , being $8 .50 in a.d
vance of the highest price a.t which
~h'-' stock recently sold. Sixty-nine
sharf's were
in the following
lot:;: Ten shar es a t 68:14, 40 sha.res
ut liS. 19 shar es at 68Jh .
followi n g
t h e
$5()(} M.i:ddle-
Ar t.he sante t i me
seeuri.ties wer e s o ld :
sold.
-----·--·--......_
.
I
.
.
lJ [
PLAN~
WAT~R
OUTSTANDING
LEADER· YORK'S WATER PUREST ·
Te:>t of 90 San'lples by Eminent
Chemi~~;~;~, t~a:::r-~:1 A n y
YORK PUMPING STATION
MODEl OF EFFirlrNCY ·~.~~:~~~:~~~.l~!t~t j~E~nc:~~?~f~:i:l
COMPANY
ALONG CODOt>tliS SEEN BY
ONLY FEW CITIZENS
thorough test of tho local filtering
plant a.nd of the 90 .sa.m.plcs coliooted
irom va.rious pa.tt~ of the oity none
~!1~wed a single hanuful b.a.ctet.·ia. Mr.
Ctul·d used the highest standards as
lc~,id down by the United states b"OV·
r n blic
ernmcnt and tho
I!ea.tth a..c:;sociation for testing public
~vater supplies. He stated tha.t it i.\1
a commun oocurrence for plants to
fall Wht.!n . those high sta.nda:rds a.re
6 000 000 GALLONS DAILY a.pplied, whcrP.as in rork t11e water
filter
plants of lmmel"o-us cities ·thvoughO plant which pro
duces a better re...mpa.ny is d elivering a water
frP.e from taete, pdor,. color and tur
l:idity a.nd these respects simila.r to
bacterial
cl is tilled water. From a
standpoint, the ws.ter is practi~al:ly
Since 1896 there has nestled in t'he
valley alqng the south branch of the
Codorus creek o, handsome red brick
E!tructure trimmed in gray sandston.<:\.
which has housed the' mighty pumps
that 'K..s•t numJ.)a l ro port of tl'te opera- f
ion and fl ns.u:wlal condition of the
company '\vas rea,d a.t the m1.1eting.
t\ cop~· 11as heen m:illcd to each
stockholder. The report.. which is
-
- -•-·"- --
GOOD WATE·R REDUCES
I
LIQUOR OONS·UMPTION
A good w a.tR-..r supply· ha '!J! mor e i n
t h e d t-inking
fiuehce in eliminating.
of sp irl.tuou s Uctuor than all t h e pro
l.a.w.s in the l!rt.atute books,
.h.ibltlon
t o Dr'. W illiam. Ma.yo, of
a ccording
t h e oelel>ratOOi Mayo Clinic, R och es
ter, :.UinneJSo ta..
ln an addr ess b e.f()re the ,American
Chem1cal B()Ciety, lliis eml.ne.nt m ed
icaJ author1t y pointed out t h at t he
drin king o! billl ()n.s ot g allons of b eer
'Lively Bidding At Auction
Held In Owen And Broth-
.er's Rooms
SECURIT IES
SOLD
t he
Stocks of the York Water company,
the Y.ork Telephone apd Teleg ra ph
Industrial Nation al
comapny,
bank and ..the Trust Company of Glen
Rock reached n ew hig"h pr.ices at a
puhlt cauction .held last evening in
t he rooms of W. S. O wen & Brother,
·
nental Eur()'J)e in t he p a s.t c entury
an<\ w ine b y the yeople ot conti-
~~1~t1~~~~ t~e~;e<>~~!1~~~ ~~C::u~~
the p olluted w a.t er in t hoge centur ie5.
AND PURE WATER :!:':utlsooa· would have wiped
CJTY BETTER PROTECTED
FROM FIRE THAN IN 1924
--
Service Company's Report
Shows No Typhoid Trace
able To This Source
KERR AGAIN PRESIDENl\
The directors of the York W ·atei
re- elec t ecl yesterdal
t Dmpany were
YORK WATERCOMPANYSPE NDS
,600,000 TO IMPROVE ITS
SYSTEM
--·--
In 1913, the Lake Williams Dam was first filled with water. For the past
100 years the reservoir has provided invaluable service to the community as
a water supply during droughts and as a place for recreation and aquatic life.
The 1,600 acre forest surrounding the lake helps filter rainwater and also
provides miles of hiking trails, picnic areas, and wildlife habitat.
The old newspaper articles contained in this
annual report are part of York Water's historical
archives. We'd like to thank our wonderful local
newspapers who, over the past two centuries,
have done a magnificent job chronicling the events
that occurred in the communities we serve.
These included the York Daily Record, the York
Dispatch, and the York Gazette.
Always Preparing for the Future
Always Preparing for the Future
Environmental Stewardship from the Beginning
NO DANGER OF
NEW WAHR CO.
DAM BREAKING
CONSIDERABLE
AMONG SKEPTICAL PERSONS
ABOUT BIG IMP<>UNOING BASIN
NOW IN COURSE OF ERECTION
SOUTH> OF YORK-FEAR TER·
RIBLE CALAMITY SHOULD
IT
BREAK, BUT, AS A M•ATTER OF
FACT, IF IT DID BREAK THE
HAR·M OONE WO"ui..D BE :TRIF-.
LING
..J!J.i!..,2.d
iNS P E C TE 0 FREQUENTLY
In 1913, the Lake Williams Dam was first filled with water. For the past
100 years the reservoir has provided invaluable service to the community as
a water supply during droughts and as a place for recreation and aquatic life.
The 1,600 acre forest surrounding the lake helps filter rainwater and also
provides miles of hiking trails, picnic areas, and wildlife habitat.
The old newspaper articles contained in this
annual report are part of York Water's historical
archives. We'd like to thank our wonderful local
newspapers who, over the past two centuries,
have done a magnificent job chronicling the events
that occurred in the communities we serve.
These included the York Daily Record, the York
Dispatch, and the York Gazette.
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
For almost two centuries,
The York Water Company tradition
has reflected Strong Leadership and Vision–
Framing the successes of the Past and Present
as we prepare our communities for the Future.
A glance at newspaper clippings from nearly a century ago conveys our commitment
to the communities that we serve and displays a tradition of strong leadership, vision and success
that continues to the present - and frames a positive future for The York Water Company and its customers.
The headlines repeatedly reflect themes about "Purity of Water and High Water Quality" - "Record Stock
Prices" - "New Pipeline and Pumping Station Construction." Conservation measures and community spirit,
such as "Tree Planting, Reservoir Parks, and Impounding Basins" are also consistent news article themes that
have captured the culture and commitment of The York Water Company.
This tradition continues at The York Water Company today with Record Financial Performance, Continued
Growth and Expansion, Efficiency and System Improvements, Increased Shareholder Value and the issuance
of Dividends in 2013 for the 198th consecutive year - an American Record. This is a reassuring message
from The York Water Company to shareholders and customers - one about consistently serving the
community's needs, supplying water of the highest quality, achieving financial success and planning for a
bright sustainable future.
Q b h f ! 2
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Jeffrey R. Hines, P.E.
President and
Chief Executive Officer
Dear Shareholders,
I am pleased to report that 2013 was a record year which continues our
198-year tradition of service, growth, and performance.
Record Financial Performance
Due to our continued growth, 2013 results were the best in our history.
Operating revenues grew by 2.3% to $42.4 million in 2013. Operating income
increased 0.9% to $20.8 million. Our net income increased by 3.8% to $9.7
million in 2013. Earnings per share increased 4.2% to $0.75.
We are only including a summary of our financial results in this annual
report. Please refer to our annual SEC 10-K Report, which was delivered with
this report, or can be downloaded from the investor relations section of
our website at www.yorkwater.com for a more detailed review of our
financial performance.
Continued Growth, Acquisitions, and Expansion
The number of customers served in 2013 grew to 64,118 water and wastewater
customers. This was an increase of 339 new water and wastewater customers.
This 0.5% customer growth in 2013 was below our pre-recession growth rate
of 2-3%. The Company is now authorized to serve in 47 municipalities in
Adams and York Counties. Our population served grew by about 0.5% in
2013 to approximately 190,000 people.
Growth in Wastewater Business
In 2013, York Water announced the planned acquisitions of the wastewater
assets of the East Prospect Borough Authority and the SYC, Inc. wastewater
system. These two acquisitions will complement the 2012 acquisition of the
Asbury Pointe wastewater collection and treatment system. York's total
wastewater customers with these three systems will total nearly 800
customers and include three 80,000 gallon per day wastewater treatment
plants. In 2013, we also expanded our wastewater billing and customer service
contracts to include the West Manheim Township Sewer Authority, bringing
our number of municipal wastewater billing customer contracts to three.
York Water Continues to Assist Communities in Need
In 2013, York Water began a project to install water lines in York Haven
Borough in York County. This project will provide domestic water to over one
hundred customers plus provide high quality fire protection for the first time
Q b h f ! 3
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
This 1898 photo shows the aerating fountain on Reservoir Hill. The fountain and 100 acre park were open to the public.
Today the fountain has been replaced by a gazebo which was originally built in 1876, but the park continues to serve as a
green space that is open to visitors.
in the Borough's history. In 2013, York Water was approached by the owners of the
Lincoln Estates water system in Adams County and Forrest Lakes water system in
York County to purchase their respective water systems. The contracts for these two
areas were signed in early 2014. These acquisitions will add about 270 customers.
Rate Increase Approved, Water Still Costs Less than One Cent per Gallon
On January 9, 2014 the Pennsylvania Public Utility Commission approved a
$5.0 million per year increase in revenue. This increase in water and wastewater
customer rates was necessary to recover costs associated with $48 million in capital
improvements since the last rate increase. Much of this investment was required
to replace critical infrastructure and to insure our customers have a safe, reliable, and
abundant supply of water and that wastewater is properly treated and discharged
now and into the future.
York Water's customer complaint rate and water rates remain among the lowest in
the state while still providing world class service to our customers.
Dividends and Shareholder Value: An American Record!
In line with our objective to maintain regular dividend increases, we raised the
quarterly dividend rate by 3.5% during the year. This is the seventeenth consecutive
year we have raised our dividend and the 198th consecutive year of dividend
payments. We believe this to be the longest consecutive dividend record in America.
Shareholder value continued to improve in 2013. The market price of our common
stock increased 19% from $17.57 per share to $20.93. Declared dividends increased
in 2013 by 3.5% to $0.558 per share. The total increase in shareholder value for a
share of stock purchased on January 1, 2013 was 22.3%.
Increasing Efficiency
Although we are a 198-year-old company, we continue to make technological
advances to assist our customers while still providing that personal touch. When you
call our office, one of our friendly customer service representatives will answer the
phone and assist you. We continue to expand our initiatives in paperless billing and
Q b h f ! 4
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
electronic bill pay. In 2013, we increased the number of paperless billing
customers by 50%, and we are working to continue this trend in 2014. We've
also deployed a state-of-the-art radio frequency drive-by and fixed meter
reading system. Of course, our historic office in downtown York remains open
for walk-in or phone-in customer support.
System Improvements for a Sustainable Future
York Water continues to replace almost 1% of its existing water pipe each year.
This reduces main breaks, water leakage, and potential property damage.
York Water continues to work with local governments and other utilities to
coordinate water main replacements prior to road resurfacing projects. This
saves our customers money and provides the motoring public with a new road
and equally new utilities below. At our Grantley Road Filter Plant we have
initiated a process to rebuild all twelve water filters over the next several years.
This will increase our capacity and provide redundancy in emergencies. As this
past winter has demonstrated: York's investments in back-up generators and
infrastructure replacement insured that, although electrical power was out for up
to five days, York's customers had a reliable and uninterrupted supply of water.
Dedicated and Experienced Employees
A Company that continues to thrive and grow, and improve service to its
customers for nearly 200 years, can only be possible due to the dedication,
loyalty, and hard work of its employees. York Water's talented employees have
an average of 16 years at the Company, which is indicative of the rewarding
environment and corporate culture of The York Water Company. We thank all of
the York Water family for their commitment to make this Company the most
efficient water utility in the nation.
Director Finlayson Retires in 2014
John Finlayson has been a Director since 1993 and Audit Committee Chair since
2000. During his twenty-year tenure, John provided professionalism and
financial expertise that helped transform The York Water Company into its
preeminent position in the community and among our peers. Fortunately, John
will continue to provide counsel and advice as he serves the Company as a
Director Emeritus.
Outlook
As we begin our 199th year in business, we continue our efforts to grow and
serve our communities. We monitor our operating region for opportunities to
acquire new franchise territories in both water and wastewater and enter into
non-regulated business activities so that we may provide our extensive history,
experience, and know-how to communities that realize the importance of a high
quality, drought-resistant supply of water for domestic, commercial, industrial,
and fire protection uses. We will do all of this while managing our natural
resources and the environment so that we are fully sustainable for the
communities we serve for the next two centuries and beyond.
We will continue to anticipate our communities' growth so that wherever and
whenever "That good York water" supply and service is needed, we will be there.
Q b h f ! 5
Note: Efficiency ratio as measured by
net income as a percent of revenue.
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Highlights of Our 198th Year
(In thousands of dollars, except per share amounts)
For the Year
2013
2012
2011
2010
2009
Summary of Operations
Operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . $
42,383
$
41,447
$
40,629
$
39,005
$
37,043
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
21,622
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20,761
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,162
Other income (expenses), net . . . . . . . . . . . .
(133)
Income before income taxes . . . . . . . . . . . . . .
15,466
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,812
20,874
20,573
5,144
(520)
14,909
5,606
20,754
19,875
5,155
19,238
19,767
4,795
19,655
17,388
4,780
(677)
(465)
(517)
14,043
4,959
14,507
5,578
12,091
4,579
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
9,654
$
9,303
$
9,084
$
8,929
$
7,512
Per Share of Common Stock
Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Basic earnings per share . . . . . . . . . . . . . . . . . . . .
7.98
0.75
$
7.73
0.72
$
7.45
0.71
$
$
7.19
0.71
6.92
0.64
Cash dividends declared per share. . . . .
0.5580
0.5391
0.5266
0.5150
0.5060
Weighted average number of shares
outstanding during the year . . . . . . . . . . . .
12,928,040
12,847,160
12,734,420
12,626,660
11,695,155
Utility Plant
Original cost,
net of acquisition adjustments. . . . . . . . . . . $
298,670
$
289,579
$
278,344
$
269,856
$
259,839
Construction expenditures . . . . . . . . . . . . . . . .
9,852
11,543
9,472
10,541
12,535
Other
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
282,529
$
282,490
$
274,219
$
259,931
$
248,837
Long-term debt
including current portion . . . . . . . . . . . . . . . .
84,928
84,975
85,017
85,173
77,568
For Management’s Discussion and Analysis of Financial Condition and Results of Operations, please refer to Item 7 in the
Company’s Annual Report on Form 10-K.
Q b h f ! 6
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Shareholder Information
Market for Common Stock and Dividends
The common stock of The York Water Company is traded on the NASDAQ Global Select Market (Symbol “YORW”).
Quarterly price ranges and cash dividends per share for the last two years follow:
High
$19.24
19.64
21.99
22.00
2013
Low
$17.62
17.86
18.92
19.70
Dividend*
$0.1383
0.1383
0.1383
0.1431
High
$18.43
17.89
18.49
18.49
2012
Low
$17.00
16.94
17.51
16.75
Dividend*
$0.1336
0.1336
0.1336
0.1383
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
* Cash dividends per share reflect dividends declared at each dividend date.
Prices listed in the above table are sales prices as listed on the NASDAQ Global Select Market. Shareholders of record
(excluding individual participants in securities positions listings) as of December 31, 2013 numbered approximately 2,023.
Performance Graph
The following line graph presents the annual and cumulative total shareholder return for The York Water Company Common
Stock over a five-year period from 2008 through 2013, based on the market price of the Common Stock and assuming
reinvestment of dividends, compared with the cumulative total shareholder return of companies in the S&P 500 Index and a
peer group made up of publicly traded water utilities, also assuming reinvestment of dividends. The peer group companies
include: American States, American Water, Aqua America, Artesian Resources, California Water Service, Connecticut Water,
Middlesex Water and San Jose Water. American Water was added to the peer group in 2013 as it completed its fifth year as a
publicly traded water utility. The line graph shows the peer group as it existed in 2012 and in 2013 for comparison purposes.
Q b h f ! 7
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Shareholder Information
Dividend Policy
Dividends on the Company's common stock are declared by the Board of Directors and are normally paid in January, April,
July and October. Dividends are paid based on shares outstanding as of the stated record date, which is ordinarily the last
day of the calendar month immediately preceding the dividend payment.
The dividend paid on the Company’s common stock on January 15, 2014 was the 572nd consecutive dividend paid by the
Company. The Company has paid consecutive dividends for its entire history, since 1816. The policy of the Company’s Board
of Directors is currently to pay cash dividends on a quarterly basis. The dividend rate has been increased annually for
seventeen consecutive years. The Company’s Board of Directors declared dividend number 573 in the amount of $0.1431 per
share at its January 2014 meeting. The dividend is payable on April 15, 2014 to shareholders of record as of February 28, 2014.
Future cash dividends will be dependent upon the Company’s earnings, financial condition, capital demands and other
factors and will be determined by the Company’s Board of Directors.
Financial Reports and Investor Relations
The Company makes available free of charge, on or through its website (www.yorkwater.com), its annual report on Form
10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after the Company electronically
files such material with, or furnishes it to, the SEC.
Shareholders may request, without charge, copies of the Company’s financial reports. Such requests, as well as other investor
relations inquiries, should be addressed to:
Bonnie J. Rexroth — Investor Relations
Administrator
The York Water Company
130 East Market Street
York, PA 17401
(717) 845-3601
(800) 750-5561
bonnier@yorkwater.com
Stock Exchange
Listing
The Company’s common
shares trade on the NASDAQ
Global Select Market.
The trading symbol is “YORW”.
Independent
Auditors
ParenteBeard LLC
Suite 200
221 West Philadelphia Street
York, PA 17401
Transfer Agent
& Registrar
American Stock Transfer &
Trust Company LLC
6201 15th Avenue
Brooklyn, NY 11219
(877) 739-9990
www.amstock.com
Annual Meeting
Information
Monday, May 5, 2014
1:00 p.m. - Lunch 12:00 p.m.
(reservation required)
Strand-Capitol Performing
Arts Center
50 North George Street
York, PA 17401
Plumber wiping joint where service was cut so as to make
room for 20" supply main. August 28, 1898.
Q b h f ! 8
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Supplemental Information (Unaudited)
(In thousands of dollars, except per share amounts)
Year Ended December 31
Selected Financial Data
Income
2013
2012
2011
Operating Revenues..............................................................................................
Operating Expenses ..............................................................................................
Operating Income..................................................................................................
Interest Expense.....................................................................................................
Net Income .............................................................................................................
Percent Change in Net Income Compared to Prior Year ................................
Common Stock Dividends ...................................................................................
Dividend Payout Ratio .........................................................................................
$42,383
$21,622
$20,761
$5,162
$9,654
3.8%
$7,214
74.7%
$41,447
$20,874
$20,573
$5,144
$9,303
2.4%
$6,929
74.5%
$40,629
$20,754
$19,875
$5,155
$9,084
1.7%
$6,708
73.8%
Weighted Average Common Shares Outstanding............................................
12,928,040
12,847,160
12,734,420
Basic Earnings Per Weighted Average Common Share...................................
$0.75
$0.72
$0.71
Number of Common Shares Outstanding.........................................................
12,979,281
12,918,633
12,791,671
ROE on Year End Common Equity ....................................................................
Common Stock Dividends Per Share .................................................................
Net Cash Flows From Operating Activities ......................................................
9.3%
$0.5580
$18,438
Balance Sheet
Common Stockholders’ Equity ...........................................................................
$103,511
Long-Term Debt Including Current Maturities ................................................
$84,928
Total Capitalization ...............................................................................................
$188,439
Percent Common Stockholders’ Equity .............................................................
Percent Long-Term Debt ......................................................................................
55%
45%
9.3%
$0.5391
$16,422
$99,825
$84,975
$184,800
54%
46%
9.5%
$0.5266
$17,474
$95,265
$85,017
$180,282
53%
47%
Net Utility Plant ....................................................................................................
$244,237
$239,539
$232,277
Operating Data
Revenue Class
Residential ..............................................................................................................
Commercial and Industrial..................................................................................
Other........................................................................................................................
Total Operating Revenues....................................................................................
$26,796
$12,299
$3,288
$42,383
$26,114
$12,114
$3,219
$41,447
$25,693
$11,820
$3,116
$40,629
Construction Expenditures ..........................................................................
$9,852
$11,543
$9,472
Other Operating Data
Number of Customers ..........................................................................................
Number of Employees..........................................................................................
Common Shareholders .........................................................................................
Book Value Per Common Share ..........................................................................
Market Value at Year End ....................................................................................
Market Value to Book Value ................................................................................
P/E Ratio ................................................................................................................
64,118
104
2,023
$7.98
$20.93
262%
27.9
63,779
105
1,786
$7.73
$17.57
227%
24.4
62,738
106
1,658
$7.45
$17.64
237%
24.8
Q b h f ! 9
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Supplemental Information (Unaudited)
(In thousands of dollars, except per share amounts)
2010
2009
2008
2007
2006
2005
2004
2003
$39,005
$19,238
$19,767
$4,795
$8,929
18.9%
$6,506
72.9%
$37,043
$19,655
$17,388
$4,780
$7,512
16.8%
$6,050
80.5%
$32,838
$18,158
$14,680
$4,112
$6,431
0.3%
$5,526
85.9%
$31,433
$17,333
$14,100
$3,916
$6,414
5.3%
$5,332
83.1%
$28,658
$15,754
$12,904
$3,727
$6,091
4.4%
$4,820
79.1%
$26,805
$14,049
$12,756
$3,423
$5,833
10.0%
$4,392
75.3%
$22,504
$12,627
$9,877
$2,132
$5,301
19.2%
$3,930
74.1%
$20,889
$11,578
$9,311
$2,523
$4,448
17.4%
$3,512
79.0%
12,626,660
11,695,155
11,298,215
11,225,822
10,475,173
10,359,374
9,937,836
9,579,690
$0.71
$0.64
$0.57
$0.57
$0.58
$0.56
$0.53
$0.46
12,692,054
12,558,724
11,367,248
11,264,923
11,201,119
10,399,995
10,330,571
9,628,845
9.8%
$0.5150
$14,755
8.6%
$0.5060
$15,801
$91,257
$85,173
$86,922
$77,568
$176,430
$164,490
52%
48%
53%
47%
9.2%
$0.4890
$11,527
$69,766
$86,353
$156,119
45%
55%
9.5%
$0.4750
$10,040
9.3%
$0.4540
$7,116
11.6%
$0.4240
$8,451
$67,272
$70,505
$137,777
49%
51%
$65,361
$62,335
$127,696
51%
49%
$50,415
$51,874
$102,289
49%
51%
11.0%
$0.3940
$7,670
$48,037
$51,913
$99,950
48%
52%
11.4%
$0.3667
$6,772
$39,056
$32,652
$71,708
54%
46%
$227,677
$221,475
$210,820
$191,046
$173,800
$154,774
$139,454
$115,724
$24,478
$11,440
$3,087
$39,005
$23,299
$10,734
$3,010
$37,043
$20,572
$9,671
$2,595
$32,838
$19,722
$9,290
$2,421
$31,433
$17,972
$8,497
$2,189
$28,658
$16,737
$8,009
$2,059
$26,805
$13,789
$6,893
$1,822
$22,504
$12,574
$6,598
$1,717
$20,889
$10,541
$12,535
$24,438
$18,154
$20,678
$15,562
$25,689
$10,252
62,505
111
1,649
$7.19
$17.29
240%
24.4
62,186
111
1,516
$6.92
$14.51
210%
22.7
61,527
110
1,485
$6.14
$12.10
197%
21.2
58,890
109
1,443
$5.97
$15.50
260%
27.2
57,578
106
1,463
$5.84
$17.88
306%
30.8
55,731
97
1,449
$4.85
$17.23
356%
30.8
53,134
95
1,459
$4.65
$12.93
278%
24.3
51,916
92
1,392
$4.05
$12.13
299%
26.0
Q b h f ! :
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Directors, Officers, & Key Employees
Board of Directors
Cynthia A. Dotzel, CPA (2) (3)
Age 59
Director Since 2009
John L. Finlayson (2) (4)
Age 73
Director Since 1993
Michael W. Gang, Esq. (1) (3)
Age 63
Director Since 1996
George W. Hodges (1)
Age 63
Chairman
Director Since 2000
George Hay Kain, III (4)
Age 64
Director Since 1986
Robert P. Newcomer (4)
Age 65
Director Since 2013
Jeffrey S. Osman (1)
Age 71
Director Since 2001
Steven R. Rasmussen, CPA (2) (3)
Age 41
Director Since 2011
Ernest J. Waters (2) (4)
Age 64
Director Since 2007
(1) Executive Committee
(2) Audit Committee
(3) Nomination and Corporate Governance Committee
(4) Compensation Committee
Q b h f ! 2 1
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Directors, Officers, & Key Employees
Officers & Key Employees
Vernon L. Bracey
Age 52
Vice President-
Customer Service
Joseph T. Hand
Age 51
Chief Operating Officer
Jeffrey R. Hines, P.E. (1)
Age 52, President and
Chief Executive Officer
Director Since 2008
Bruce C. McIntosh
Age 61
Vice President-Human Resources
and Secretary
Kathleen M. Miller
Age 51
Chief Financial Officer
and Treasurer
Mark S. Snyder
Age 43
Vice President-Engineering
Directors Emeriti
Josephine S. Appell
Chloé R. Eichelberger
Horace E. Keesey, III
William T. Morris
Irvin S. Naylor
Thomas C. Norris
John H. Strine
Age 57
Vice President-Operations
Bonnie J. Rexroth
Age 53
Investor Relations Administrator
Q b h f ! 2
2
U i f ! Z p s l ! X b u f s ! D p n q b o z
2 0 1 3 A n n u a l R e p o r t
Chartered Territory Distribution and Supply System
A map of York Water’s 2014 chartered territory and service area.
After Lake Williams was completed in 1913, the surrounding farmland was forested with over one million trees. This was one of the first large
scale reforestation projects in the world, and visitors from all over traveled to York to admire the planting.
Q b h f ! 2 3
Always Preparing for the Future
Always Preparing for the Future
Environmental Stewardship from the Beginning
MINNESOTA FORESTRY
BOARD TO ~SIT YO~~~~~~~~~~
STATE TRt;ASURER LEWIS AR·
RANGES FOR TRIP TO
WATER CO. PLANTATION
- • -
WILL
A.ItRIVE SATURD/
---
REFORESTATION MARVEl
PiOt:ures A~ d News A-: • u
Dhcribo \', a-:~r c~-p~~ Fa-·
t1cn. M1nn~s .. -;- -s Say
.
.. ar\C·luu~.
• 1
1':\,
.:.
Members o! the Minnesota Re~
.
research will sp-c!Jffir.lE>.''
, . , .•.
1~-r ... ,~,
~o:unnot dP.!'C\"lhE'
e~tation commission, who are
the East on a forestry tour o:t inv ·
t.!gu.tion and
Satur·du.y nigh't In York, and Suul41-v-ful sight.
-.: =
morning will inspect the pla.ntatflJllf'StFI of parts of Cana.dli.,
l\cw
of the York Water company, at Englu.nd :;tu,Lcs I;I.Ild the Allanliuso<~
impoundlng reservoir several miicanl ::;tu.tes and iluso nul. seen uuY
_sautlL.oLtb..e_cit.lr. ....Tha_<".omnlillsi.(t.hhlJ{ to comparo wlth the roforestC>d
!Project of the York \\'ater cvrupm1y.'
This wa!< th"' <>xprP~..nd bactel"lologist,
Troy, ::\. Y ., ha..s just cotnplet:ed a
thorough
local filtering
plant a.nd. of the ~0 sa.r.n.ples c~">llooted
from varlou~ pa.rt~ of the c ity none
~howed a sing le ha rmful bac t eria.. Mr..
Caird US€d
the hig'nest standar ds as
l d.id down by the United B-t."'.:tes &ov
ernment and tho Alnerica.n P ubHc
llea.tth a.sso-cia.t ion for test lng p;ttblic
water supplies. He stated tha.t i t i:;;
a common 6Ccurrence f or p la.nts t o
fail when . these high sta ndards ar-e
a.l>Plie<.l., w h erea..on.
lt was
the e:xJ.remcly hot weather which in
Ct'eas-ed the consumption of w ater in
York far beyond any previous day
during the -present
On
days when the ISUn shines br ightlY
th'e oonsumpticm of water
t h e
'highest, for it is on such days that
the many h ouseholder s put the hose
to use f or watering la.wns and g a.r-
summer.
is
MANY ARE ATTRAOTED
~---·---
TO RESERVOm PARK
ReSt>rvoir park a.long the Country
road has been attracting a.
C'Jub
large number of visitors daily and
throughout the summer It bad been
estimated that an average or more
than one p1cn1c a day was hcln on
~be beautiful
NumeronR
Sunday ~SChool clasae~ a.nd church
sucletten have held afternoon .~:~up
pers.
~wns.
The lawns and evergreens are fn
excellent eonditton and tho
roads
have been oiled during the summer
which has pl'evented the rals.tng or
n,r dust. This part contain~ 72
aC'res of gJ•otmd and, on account or
Its elevation, a magnlflcant ,·lew of
obtained. Numf'rous
the clty
benches arf' provide-d by the York
Wat.er company for the visltor.l:l and
them by
every
tl-.a o+tat'\...tanf•
courtf'..Sy 115 shown
is
WATER GOMPA~~Y'S
STOCK SKYROCKETS
Nin etee~l Of The Xe ,~ Shares
Se:: At Forty-Five