York Water Co
Annual Report 2020

Plain-text annual report

T h e Y o r k W a t e r C o m p a n y 2020 Annual Report Adapting to the p r e s e n t for a Sustainable f u t u r e Skilled Maintenance Men Evan Sterner and Jordan Smith suspend the Company’s banner in front of our corporate headquarters at 130 East Market Street in preparation for “That Good York Water Day” on November 24, 2020. Evan and Jordan represent the foundation of our Company – our employees. William Morris, President and CEO during The York Water Company’s 180th year and 500th dividend, and JT Hand, President and CEO during The York Water Company’s 205th year and 600th dividend, come together in celebration of the history of our Company. T h e Y o r k W a t e r C o m p a n y 2 0 2 0 A n n u a l R e p o r t Committed to AdAptAbility, perseverAnCe, And sustAinAbility dediCAted to prudent investment in the people, proCesses, And infrAstruCture of our utility systems In 2020, The York WaTer CompanY ConTInued To provIde safe and relIable WaTer and WasTeWaTer servICes To our CusTomers – and sustained our historic record of increased earnings and growth for shareholders. This was accomplished amid the COVID-19 Pandemic – requiring adapTabIlITY and perseveranCe at many service and operational scales. The York Water Company remained open throughout the pandemic, as Governor Wolf’s orders allowed. Residential consumption increased – and new adaptations were necessary – such as increased sanitation practices and the installation of a payment window off our main parking lot for “no-contact” customer transactions. We reached a major milestone in 2020, as the only publicly-traded company in U.S. history to ever reach 600 consecutive dividends. This kind of susTaInabIlITY can be attributed to our history of strong Board Leadership – and the contributions of all York Water employees, past and present. In recognition of this achievement, a dIvIdend Grove – 600 trees of 12 different varieties, including Red Maple, White Oak, and Eastern White Pine, will be planted in York Water’s Reservoir Park – with the first tree having been planted during a ceremony in October 2020. This community park, with walking trails and the best view of The City of York, is also the location of The York Water Company Filtration Plant facility. On November 23, 2020, The York Water Company was invited to virtually ring the closing bell at NASDAQ – celebrating our 600th declared dividend and 20th Anniversary of being listed on NASDAQ. As America’s Oldest Public Company and Oldest Investor-Owned Utility – The York Water Company extended America’s longest consecutive dividend payment record while increasing our quarterly dividend for the 24th consecutive year. New acquisitions continued in 2020, including the Felton Borough Wastewater System, Letterkenny Township Wastewater System (the first YWC acquisition in Franklin County), and Amblebrook Water and Wastewater Systems in Adams County. Additionally, The York Water Company invested over $32 million in construction expenditures for various replacements, improvement to infrastructure, and routine improvements to water and wastewater pipes, service lines, and other facilities. In spite of the many challenges of 2020, The York Water Company adapted and achieved operational and financial success – due to solid leadership – and the dedICaTIon, TalenT, and hard Work of all our employees. We are committed to our customers and our mission to provide quality water and wastewater services to the communities we serve. Prudent investment, operational preparedness, and tenacity through adversity have been our hallmarks, and our focus on these fundamentals served our Company well in 2020. P a g e 1 J T Hand President and Chief Executive Officer Dear Shareholders, Perhaps not since the Spanish Flu Pandemic of 1918 have the customers and communities served by York Water been more reliant upon our Company and our superior utility services to address their residential, commercial, and industrial hygiene needs. By the 1st of April, “wash your hands” became not only a mantra, but also a plea to defend against the novel coronavirus. As alcohol-based hand sanitizer disappeared from shelves, the Centers for Disease Control and Prevention reminded us of the efficacy of washing hands with soapy water for 20 seconds, perhaps while humming the “Happy Birthday” song. Just as we stood ready in 1918, so too did York Water’s Employees and Directors stand at the ready and respond without hesitation or fail in 2020. Transitions of Leadership In 2020, York Water welcomed Alex Chiaruttini to the leadership team as Chief Administrative Officer and General Counsel. This position was newly created in order to continue expanding the knowledge base and skillset of the executive team, and Alex has already proven to be an asset. Mark Wheeler became the Chief Operating Officer of York Water in 2020, filling the position after the previous COO, JT Hand, transitioned to President and CEO. Mark led the York Water Operations team through a successful year of projects, improvements, and renovations of our infrastructure to better serve the water and wastewater needs of the communities that we serve. Matt Poff completed another year as Chief Financial Officer of York Water, adding invaluable financial expertise to the executive team and leading York Water through a successful financial year. The steadfast leadership of York Water is crucial to the mission and success of our Company in providing quality water and wastewater services to our community. Alexandra C. Chiaruttini Mark A. Wheeler Matthew E. Poff, CPA P a g e 2 The York Water Company 2020 Annual ReportIn September of 2020, James Cawley retired as a Director of The York Water Company and was elected a Director Emeritus in gratitude of his four years of unparalleled public utility and regulatory knowledge, experience, and wisdom provided to York Water. Another Year of Record Performance – An Unequalled Milestone On November 23, 2020, our Board of Directors declared York Water’s 600th consecutive dividend, representing a 205- year history of shareholder return dating back to our founding in 1816. Concurrently, the quarterly we dividend rate by 4%, the 24th consecutive year we have raised our dividend. To celebrate this unmatched record, our employees and Directors were invited to virtually ring the closing bell on NASDAQ. Achieving this historic milestone is a testament to the prudence of York Water’s investment strategy and our Directors’ focus on accountability, responsibility, reliability, and innovation in delivering water and wastewater services. Just as our employees stood with the communities we served through the Civil War, the Pandemic of 1918, and both World Wars, so too have they stood fast through the COVID-19 pandemic. The ceremony was dedicated to our Mission Essential Utility Employees, whose technical capacity and steadfast tenacity kept the businesses, the homes, and the engine of our local economy running. Director Michael Gang, Esq., on behalf of the Board of Directors, presented Director Emeritus James Cawley with a Resolution of Appreciation for his years of dedication to the Board of Directors. raised In 2013, we initiated a share repurchase program to add value for our shareholders. The Board of Directors authorized us to repurchase up to 1,200,000 shares of the Company’s common stock from time to time. No shares were repurchased this year. As of December 31, 2020, 618,004 shares remain available for repurchase. We are only including a summary of our financial results in this annual report. Please refer to our annual SEC 10K 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. Acquisitions and Westward Expansion York Water closed on three acquisitions in 2020 and expanded its certificated territory to three more municipalities. With the acquisition of the Letterkenny Township Municipal Authority’s wastewater treatment system, York Water now serves customers across York, Adams, and Franklin Counties. Our number of customers served grew by 1,270, for a 2020 customer growth of 1.8%. While our Governor’s orders required non-essential businesses to close or reduce hours, York Water’s doors remained open, and we adapted our regulatory filings and legal consultancy to virtual and socially separate environments. P a g e 3 The York Water Company 2020 Annual ReportFelton Acquisition “Seven days after receiving approval from the PUC we went through a successful, remote settlement. One week later and York Water initiated wastewater support to our residents. We have a great relationship with York Water, and we are confident that our residents’ wastewater needs are now in York Water’s capable hands.” — Joy Flinchbaugh, Felton Borough Secretary/Treasurer Letterkenny Acquisition “From the outset of our discussions, we knew that York Water was the right partner for Letterkenny Township Municipal Authority.  We are community focused, and York Water’s history of community engagement and customer focus were exactly what we wanted as we pursued this agreement.” — Charles Myers, Letterkenny Township Municipal Authority Chairman Amblebrook Acquisition “In York Water, we have found a top- rated utility provider that understands the business of water and wastewater operations. We are confident that York Water will deliver superior utility service to our residents at Amblebrook, so we can continue to focus on providing first- class residential support and community amenities as this community grows.” — Pete Martin, Community Development Manager for CCD Rock Creek As the Company closes our 204th year of service, it is hard to capture the true scale of achievement our Company has realized this past year. There will be volumes written about 2020 and the impact a novel coronavirus had on our Community and our Country. In spite of the impediments cast before us, the Company secured record earnings, record growth, and a record milestone. These achievements were only possible through centuries of prudent investment in the people, processes, and infrastructure of our utility systems. Through investment, we have secured resilient and redundant systems, and we take great pride in the recognition bestowed upon our Company by the elected officials of our community. We are grateful to our shareholders for their trust and confidence in our Nation’s Oldest Investor- Owned Utility. P a g e 4 The York Water Company 2020 Annual Report“No single other company has done more for the people of the City of York than The York Water Company.” — Mayor Michael Helfrich, City of York, Pennsylvania Following the NASDAQ closing bell ringing ceremony, local dignitaries declared November 24, 2020 as “That Good York Water Day.” York County President Commissioner Julie Wheeler and City of York Mayor Michael Helfrich joined our CEO and President JT Hand outside of our Downtown York headquarters to honor York Water and presented the official proclamation. P a g e 5 Highlights of Our 205th Year (In thousands of dollars, except per share amounts) Summary of Operations For The Year 2020 2019 2018 2017 2016 Operating revenues ..................... Operating expenses ..................... Operating income ....................... Interest expense .......................... Gain on life insurance .................. Gain on sale of land .................... Other income (expenses), net ......... Income before income taxes ........... Income taxes ............................. Net income ................................. Per Share of Common Stock Book value ............................... Earnings per share: Basic ................................... Diluted ................................ Weighted average number of shares outstanding during the year: Basic ................................... Diluted .................................. Cash dividends declared per share ... Utility Plant Original cost, $ 53,852 $ 51,578 $ 48,437 $ 48,589 $ 47,584 29,421 24,431 4,177 515 – (2,153) 18,616 2,018 16,598 10.97 1.27 1.27 $ $ 27,792 23,786 4,758 – – (2,386) 16,642 2,240 14,402 10.31 1.11 1.11 $ $ 25,920 22,517 5,280 – – (1,370) 15,867 2,491 13,376 9.75 1.04 1.04 $ $ 24,896 23,693 4,484 – – (1 692) 17,517 4,543 12,974 9.28 1.01 1.01 $ $ 23,414 24,170 5,037 – 36 (1,914) 17,255 5,409 11,846 8.87 0.92 0.92 $ $ 13,033,681 12,964,080 12,903,568 12,849,123 12,845,955 13,034,520 12,966,292 12,903,836 12,849,171 12,845,973 0.7280 0.7001 0.6731 0.6472 0.6267 net of acquisition adjustments .... Construction expenditures ............ $ 434,963 $ 398,065 $ 377,676 $ 362,533 $ 339,745 32,123 18,425 16,882 24,602 13,158 Other Total assets ............................... $ 406,957 $ 363,529 $ 345,140 $ 332,030 $ 320,494 Long-term debt including current portion .................................. 123,573 101,035 93,358 90,142 84,653 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. P a g e 6 The York Water Company 2020 Annual Report Shareholder Information Market Information The common stock of The York Water Company is traded on the NASDAQ Global Select Market under the symbol YORW. Shareholders of record (excluding individual participants in securities positions listings) as of December 31, 2020, numbered approximately 1,982. 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 Securities and Exchange Commission, or SEC. The SEC also maintains a website at www.sec.gov that contains reports, proxy statements, and other information about SEC registrants, including the Company. 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: Molly E. Norton Investor Relations & Communications Administrator The York Water Company 130 East Market Street York, PA 17401 (717) 718-2942 (800) 750-5561 mollyn@yorkwater.com Stock Exchange Listing The Company’s common shares trade on the NASDAQ Global Select Market. The trading symbol is YORW. Independent Auditors Baker Tilly US, LLP Suite 200 221 West Philadelphia Street York, PA 17401 Transfer Agent & Registrar Broadridge Corporate Issuer Solutions, Inc. P.O. Box 1342 Brentwood, NY 11717 (844) 317-3311 (toll free) Internet: http://shareholder.broadridge.com/YORW Annual Meeting Information Monday, May 3, 2021 1:00 p.m. Eastern Time Meeting live via the Internet − please visit www.virtualshareholdermeeting.com/YORW2021 Shareholders will need the control number found on their proxy card or Notice Regarding the Availability of Proxy Materials. P a g e 7 The York Water Company 2020 Annual ReportSupplemental Information (Unaudited) (In thousands of dollars, except per share amounts) Year ended December 31 Selected Financial Data Income 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 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 .................................................................................................. $ 53,852 $ 29,421 $ 24,431 $ 4,177 $ 16,598 15.2% $ 9,490 57.2% $ 51,578 $ 27,792 $ 23,786 $ 4,758 $ 14,402 7.7% $ 9,083 63.1% $ 48,437 $ 25,920 $ 22,517 $ 5,280 $ 13,376 3.1% $ 8,690 65.0% Weighted Average Common Shares Outstanding, Basic ......................................... 13,033,681 12,964,080 12,903,568 Basic & Diluted Earnings Per Weighted Average Common Share......................... $ 1.27 $ 1.11 $ 1.04 Number of Common Shares Outstanding ................................................................. 13,060,817 13,014,898 12,943,536 ROE on Year End Common Equity ............................................................................. Common Stock Dividends Per Share .......................................................................... Net Cash Flows From Operating Activities ............................................................... 11.6% $ 0.7280 $ 20,235 10.7% $ 0.7001 $ 18,881 10.6% $ 0.6731 $ 18,372 Balance Sheet Common Stockholders' Equity .................................................................................... Long-Term Debt Including Current Maturities ......................................................... Total Capitalization ........................................................................................................ Percent Common Stockholders' Equity ...................................................................... Percent Long-Term Debt ............................................................................................... $ 143,252 $ 123,573 $ 266,825 54% 46% $ 134,185 $ 101,035 $ 235,220 57% 43% $ 126,195 $ 93,358 $ 219,553 57% 43% $ 48,589 $ 24,896 $ 23,693 $ 4,484 $ 12,974 9.5% $ 8,318 64.1% $ 47,584 $ 23,414 $ 24,170 $ 5,037 $ 11,846 -5.1% $ 8,051 68.0% $ 47,089 $ 23,294 $ 23,795 $ 4,976 $ 12,489 8.8% $ 7,743 62.0% $ 45,900 $ 22,593 $ 23,307 $ 4,996 $ 11,484 19.0% $ 7,443 64.8% $ 42,383 $ 21,217 $ 21,166 $ 5,267 $ 9,654 3.8% $ 7,214 74.7% $ 41,447 $ 20,331 $ 21,116 $ 5,249 $ 9,303 2.4% $ 6,929 74.5% $ 40,629 $ 20,091 $ 20,538 $ 5,260 $ 9,084 1.7% $ 6,708 73.8% $ 39,005 $ 18,735 $ 20,270 $ 4,894 $ 8,929 18.9% $ 6,506 72.9% 12,849,123 12,845,955 12,831,687 12,879,912 12,928,040 12,847,160 12,734,420 12,626,660 $ 1.01 $ 0.92 $ 0.97 $ 0.89 $ 0.75 $ 0.72 $ 0.71 $ 0.71 12,872,742 12,852,295 12,812,377 12,830,521 12,979,281 12,918,633 12,791,671 12,692,054 10.9% $ 0.6472 $ 20,111 10.4% $ 0.6267 $ 19,365 11.5% $ 0.6040 $ 20,710 11.0% $ 0.5788 $ 18,766 9.3% $ 0.5580 $ 18,438 9.3% $ 0.5391 $ 16,422 9.5% $ 0.5266 $ 17,474 9.8% $ 0.5150 $ 14,755 $ 119,405 $ 90,142 $ 209,547 57% 43% $ 114,061 $ 84,653 $ 198,714 57% 43% $ 109,070 $ 84,562 $ 193,632 56% 44% $ 104,563 $ 82,312 $ 186,875 56% 44% $ 103,511 $ 82,741 $ 186,252 56% 44% $ 99,825 $ 82,684 $ 95,265 $ 82,621 $ 91,257 $ 82,672 $ 182,509 $ 177,886 $ 173,929 55% 45% 54% 46% 52% 48% Net Utility Plant ............................................................................................................. $ 343,623 $ 313,224 $ 299,157 $ 288,787 $ 270,907 $ 261,420 $ 253,194 $ 244,237 $ 239,539 $ 232,277 $ 227,677 Operating data Revenue Class Residential ....................................................................................................................... Commercial and Industrial........................................................................................... Other ................................................................................................................................ Total Operating Revenues ............................................................................................ $ 35,733 $ 14,068 $ 4,051 $ 53,852 $ 33,409 $ 14,441 $ 3,728 $ 51,578 $ 31,281 $ 13,578 $ 3,578 $ 48,437 $ 31,257 $ 13,729 $ 3,603 $ 48,589 $ 30,218 $ 13,760 $ 3,606 $ 47,584 $ 29,761 $ 13,822 $ 3,506 $ 47,089 $ 29,165 $ 13,267 $ 3,468 $ 45,900 $ 26,873 $ 12,299 $ 3,211 $ 42,383 $ 26,192 $ 12,114 $ 3,141 $ 41,447 $ 25,750 $ 11,820 $ 3,059 $ 40,629 $ 24,550 $ 11,440 $ 3,015 $ 39,005 Construction Expenditures Other Operating Data $ 32,123 $ 18,425 $ 16,882 $ 24,602 $ 13,158 $ 13,844 $ 14,139 $ 9,852 $ 11,543 $ 9,472 $ 10,541 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 ........................................................................................................................... 72,681 108 1,982 $ 10.97 $ 46.60 425% 36.7 71,411 106 1,998 $ 10.31 $ 46.11 447% 41.5 70,263 109 1,999 $ 9.75 $ 32.06 329% 30.8 69,604 102 2,011 $ 9.28 $ 33.90 365% 33.6 67,052 103 2,052 $ 8.87 $ 38.20 431% 41.5 66,087 107 2,007 $ 8.51 $ 24.94 293% 25.7 65,102 107 2,002 $ 8.15 $ 23.21 285% 26.1 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 62,505 111 1,649 $ 7.19 $ 17.29 240% 24.4 P a g e 8 The York Water Company 2020 Annual ReportYear ended December 31 Selected Financial Data Income 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 .................................................................................................. $ 53,852 $ 29,421 $ 24,431 $ 4,177 $ 16,598 15.2% $ 9,490 57.2% $ 51,578 $ 27,792 $ 23,786 $ 4,758 $ 14,402 7.7% $ 9,083 63.1% $ 48,437 $ 25,920 $ 22,517 $ 5,280 $ 13,376 3.1% $ 8,690 65.0% Weighted Average Common Shares Outstanding, Basic ......................................... 13,033,681 12,964,080 12,903,568 Basic & Diluted Earnings Per Weighted Average Common Share......................... $ 1.27 $ 1.11 $ 1.04 Number of Common Shares Outstanding ................................................................. 13,060,817 13,014,898 12,943,536 ROE on Year End Common Equity ............................................................................. Common Stock Dividends Per Share .......................................................................... Net Cash Flows From Operating Activities ............................................................... 11.6% $ 0.7280 $ 20,235 10.7% $ 0.7001 $ 18,881 10.6% $ 0.6731 $ 18,372 Balance Sheet Common Stockholders' Equity .................................................................................... Long-Term Debt Including Current Maturities ......................................................... Total Capitalization ........................................................................................................ Percent Common Stockholders' Equity ...................................................................... Percent Long-Term Debt ............................................................................................... $ 143,252 $ 123,573 $ 266,825 54% 46% $ 134,185 $ 101,035 $ 235,220 57% 43% $ 126,195 $ 93,358 $ 219,553 57% 43% Supplemental Information (Unaudited) (In thousands of dollars, except per share amounts) 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 $ 48,589 $ 24,896 $ 23,693 $ 4,484 $ 12,974 9.5% $ 8,318 64.1% $ 47,584 $ 23,414 $ 24,170 $ 5,037 $ 11,846 -5.1% $ 8,051 68.0% $ 47,089 $ 23,294 $ 23,795 $ 4,976 $ 12,489 8.8% $ 7,743 62.0% $ 45,900 $ 22,593 $ 23,307 $ 4,996 $ 11,484 19.0% $ 7,443 64.8% $ 42,383 $ 21,217 $ 21,166 $ 5,267 $ 9,654 3.8% $ 7,214 74.7% $ 41,447 $ 20,331 $ 21,116 $ 5,249 $ 9,303 2.4% $ 6,929 74.5% $ 40,629 $ 20,091 $ 20,538 $ 5,260 $ 9,084 1.7% $ 6,708 73.8% $ 39,005 $ 18,735 $ 20,270 $ 4,894 $ 8,929 18.9% $ 6,506 72.9% 12,849,123 12,845,955 12,831,687 12,879,912 12,928,040 12,847,160 12,734,420 12,626,660 $ 1.01 $ 0.92 $ 0.97 $ 0.89 $ 0.75 $ 0.72 $ 0.71 $ 0.71 12,872,742 12,852,295 12,812,377 12,830,521 12,979,281 12,918,633 12,791,671 12,692,054 10.9% $ 0.6472 $ 20,111 10.4% $ 0.6267 $ 19,365 11.5% $ 0.6040 $ 20,710 11.0% $ 0.5788 $ 18,766 9.3% $ 0.5580 $ 18,438 9.3% $ 0.5391 $ 16,422 9.5% $ 0.5266 $ 17,474 9.8% $ 0.5150 $ 14,755 $ 119,405 $ 90,142 $ 209,547 57% 43% $ 114,061 $ 84,653 $ 198,714 57% 43% $ 109,070 $ 84,562 $ 193,632 56% 44% $ 104,563 $ 82,312 $ 186,875 56% 44% $ 103,511 $ 82,741 $ 186,252 56% 44% $ 99,825 $ 82,684 $ 95,265 $ 82,621 $ 91,257 $ 82,672 $ 182,509 $ 177,886 $ 173,929 55% 45% 54% 46% 52% 48% Net Utility Plant ............................................................................................................. $ 343,623 $ 313,224 $ 299,157 $ 288,787 $ 270,907 $ 261,420 $ 253,194 $ 244,237 $ 239,539 $ 232,277 $ 227,677 Operating data Revenue Class Construction Expenditures Other Operating Data Residential ....................................................................................................................... Commercial and Industrial........................................................................................... Other ................................................................................................................................ Total Operating Revenues ............................................................................................ $ 35,733 $ 14,068 $ 4,051 $ 53,852 $ 33,409 $ 14,441 $ 3,728 $ 51,578 $ 31,281 $ 13,578 $ 3,578 $ 48,437 $ 31,257 $ 13,729 $ 3,603 $ 48,589 $ 30,218 $ 13,760 $ 3,606 $ 47,584 $ 29,761 $ 13,822 $ 3,506 $ 47,089 $ 29,165 $ 13,267 $ 3,468 $ 45,900 $ 26,873 $ 12,299 $ 3,211 $ 42,383 $ 26,192 $ 12,114 $ 3,141 $ 41,447 $ 25,750 $ 11,820 $ 3,059 $ 40,629 $ 24,550 $ 11,440 $ 3,015 $ 39,005 $ 32,123 $ 18,425 $ 16,882 $ 24,602 $ 13,158 $ 13,844 $ 14,139 $ 9,852 $ 11,543 $ 9,472 $ 10,541 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 ........................................................................................................................... 72,681 108 1,982 $ 10.97 $ 46.60 425% 36.7 71,411 106 1,998 $ 10.31 $ 46.11 447% 41.5 70,263 109 1,999 $ 9.75 $ 32.06 329% 30.8 69,604 102 2,011 $ 9.28 $ 33.90 365% 33.6 67,052 103 2,052 $ 8.87 $ 38.20 431% 41.5 66,087 107 2,007 $ 8.51 $ 24.94 293% 25.7 64,118 104 2,023 $ 7.98 $ 20.93 262% 27.9 65,102 107 2,002 $ 8.15 $ 23.21 285% 26.1 P a g e 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 62,505 111 1,649 $ 7.19 $ 17.29 240% 24.4 The York Water Company 2020 Annual ReportDirectors, Officers, & Key Employees Board of Directors Cynthia A. Dotzel, CPA (1) Age 66 Director Since 2019 Michael W. Gang, Esq. (1) Age 70 Director Since 1996 Joseph T. Hand (1) Age 58 Director Since 2020 Jeffrey R. Hines, P.E. (1) Age 59 Director Since 2008 George W. Hodges (1) Age 70 Chairman Director Since 2000 George Hay Kain, III (3) Age 72 Director Since 1986 Jody L. Keller (4) Age 67 Director Since 2015 Erin C. McGlaughlin (2) (4) Age 47 Director Since 2016 Directors Emeriti Josephine S. Appell James H. Cawley Chloe R. Eichelberger John L. Finlayson William T. Morris Irvin S. Naylor Thomas C. Norris Jeffrey S. Osman Key (1) Executive Committee (2) Audit Committee (3) Nomination and Corporate Governance Committee (4) Compensation Committee Robert P. Newcomer (1) (2) (4) Age 72 Director Since 2013 Steven R. Rasmussen, CPA (2) (3) Age 48 Director Since 2011 Ernest J. Waters (1) (2) (3) Age 71 Director Since 2007 P a g e 1 0 The York Water Company 2020 Annual ReportT h e Y o r k W a t e r C o m p a n y 2 0 2 0 A n n u a l R e p o r t The foundation of The York Water Company is our employees, a talented team of professionals who stand behind our motto of “That good York Water” and who serve without fail. Our dedicated Directors have governed this Company through 205 years of service. We were proud to ring the NASDAQ closing bell on November 23, 2020, and dedicated this historic event to all of our employees, past and present, in celebration of the historic milestone we achieved in declaring our 600th consecutive dividend. Directors, Officers, & Key Employees Officers & Key Employees Vernon L. Bracey Age 59 Vice President- Customer Service Alexandra C. Chiaruttini Age 50 Chief Administrative Officer and General Counsel Natalee Colón, SHRM-CP Age 33 Vice President- Human Resources Joseph T. Hand Age 58 President and Chief Executive Officer Mark J. Hardman Age 48 Vice President-Technology Matthew E. Poff, CPA Age 49 Chief Financial Officer and Treasurer Mark S. Snyder, P.E. Age 50 Vice President-Engineering Martin L. Strine Age 60 Operations Manager Mark A. Wheeler Age 53 Chief Operating Officer and Secretary Molly E. Norton Age 28 Investor Relations and Communications Administrator P a g e 1 2 The York Water Company 2020 Annual ReportChartered Territory Distribution and Supply System Our Filter Plant, located in Reservoir Park, was built in 1930 in order to meet the water needs of the growing community. This facility was initially built with a capacity of 15 million gallons per day, but has since expanded to 40 million gallons per day. This facility is still in service today, and purifies and distributes water to our customers every single day. The York Water Company 2020 Annual ReportThe York Water Company 130 East Market Street York, Pennsylvania 17401 717-845-3601 www.yorkwater.com 

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