UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
(
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☐ Accelerated Filer ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of June 30, 2026, the registrant had
Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 23,515,000 | 19,199,000 | 43,589,000 | 37,655,000 |
| Total Revenue | ||||
| Total COGS | ||||
| Gross Profit | ||||
| Depreciation and amortization | ||||
| General and administrative | ||||
| Operations and maintenance | ||||
| Taxes other than income taxes | ||||
| Total operating expenses | ||||
| Operating income | ||||
| Other income (expense) | ||||
| Other income (expense), net | ||||
| Income before income taxes | ||||
| Income tax expense (benefit) | - | - | ||
| Net Income | ||||
| Basic earnings per share | ||||
| Diluted earnings per share | ||||
| Weighted average shares outstanding, basic | ||||
| Weighted average shares outstanding, diluted | ||||
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Accounts receivable | ||
| Less: allowance for credit losses | ||
| Cash and cash equivalents | ||
| Prepaid expenses and other current assets | ||
| Other current assets (derived) | ||
| Total current assets | ||
| Noncurrent assets | ||
| Finance receivables, noncurrent | ||
| Other noncurrent assets | ||
| Property, plant and equipment | ||
| Regulatory assets | ||
| Utility plant, net | ||
| Other assets (derived) | ||
| Total noncurrent assets | ||
| Total Assets | ||
| Liabilities | ||
| Current liabilities | ||
| Accounts payable | ||
| Accrued compensation | ||
| Accrued liabilities | ||
| Debt, current | ||
| Other current liabilities (derived) | ||
| Total current liabilities | ||
| Noncurrent liabilities | ||
| Contributions in aid of construction | ||
| Deferred revenue, noncurrent | ||
| Deferred tax liabilities | ||
| Long-term debt | ||
| Other noncurrent liabilities | ||
| Regulatory liabilities | ||
| Other liabilities (derived) | ||
| Total noncurrent liabilities | ||
| Total Liabilities | ||
| Equity | ||
| Preferred stock | ||
| Preferred stock, shares authorized | ||
| Preferred stock, shares issued | ||
| Common stock | ||
| Common stock, shares authorized | ||
| Common stock, shares issued | ||
| Common stock, shares outstanding | ||
| Retained earnings (accumulated deficit) | ||
| Total Equity | ||
| Total liabilities and equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | ||
| Depreciation and amortization | ||
| Deferred income taxes | - | - |
| Change in income taxes receivable | - | - |
| Other noncash items, net | ||
| Change in accounts payable and accrued liabilities | ||
| Changes in operating assets and liabilities, net | - | - |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -20,266,000 | -22,182,000 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Dividends paid | - | - |
| Proceeds from issuance of common stock | ||
| Customer advances and contributions for construction | ||
| Repayments of customer advances | - | - |
| Other financing activities (derived) | - | |
| Net cash from financing activities | ||
| Net change in cash | ||
| Cash at beginning of period | 1,000 | |
| Cash at end of period | 1,000 | |
| Supplemental cash flow information | ||
| Cash paid for interest | ||
| Cash paid for income taxes | ||
| Supplemental disclosure of noncash investing and financing activities | ||
| Construction expenditures incurred but not yet paid | ||
| Debt portion of allowance for funds used during construction | ||
| Common stock | Retained earnings (accumulated deficit) | Total | |
|---|---|---|---|
| Balance at March 31, 2025 | 138,556,000 | 93,587,000 | 232,143,000 |
| Net income | |||
| Other equity movements | 515,000 | -3,159,000 | -2,644,000 |
| Balance at June 30, 2025 | 139,071,000 | 95,480,000 | 234,551,000 |
| Balance at March 31, 2026 | 140,365,000 | 101,915,000 | 242,280,000 |
| Net income | |||
| Other equity movements | 48,079,000 | -3,698,000 | 44,381,000 |
| Balance at June 30, 2026 | 188,444,000 | 105,832,000 | 294,276,000 |
| Balance at December 31, 2024 | 138,089,000 | 93,103,000 | 231,192,000 |
| Net income | |||
| Other equity movements | 982,000 | -6,313,000 | -5,331,000 |
| Balance at June 30, 2025 | 139,071,000 | 95,480,000 | 234,551,000 |
| Balance at December 31, 2025 | |||
| Net income | |||
| Other equity movements | 48,492,000 | -6,992,000 | 41,500,000 |
| Balance at June 30, 2026 |
York Water Co is a public reporting company classified under Water Supply. The accompanying unaudited condensed financial statements have been prepared from the Company's books and records as of and for the period ended June 30, 2026. The interim financial statements are unaudited and, in the opinion of management, reflect all adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods presented. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year, and these statements should be read in conjunction with the audited financial statements and notes included in the Company's most recent annual report. Utility plant, net totaled $586,564,000 compared with $548,715,000 in the prior period, an increase of 6.9%, and regulatory assets totaled $62,140,000 compared with $55,475,000, an increase of 12.0%.
Revenue for the period was $23,515,000. This compares with revenue of $19,199,000 in the prior period, an increase of 22.5%. Accounts receivable increased to $8,639,000 from $7,484,000, an increase of 15.4%, and noncurrent deferred revenue increased to $27,953,000 from $21,812,000, an increase of 28.2%. Contributions in aid of construction totaled $51,692,000 compared with $50,340,000 in the prior period, an increase of 2.7%. Operations and maintenance expense was $5,953,000 compared with $4,823,000 in the prior period, an increase of 23.4%, and depreciation and amortization was $3,654,000 compared with $3,506,000, an increase of 4.2%. Income tax expense was $166,000 for the period, compared with an income tax benefit of $367,000 in the prior period. The effective tax rate was 2.1% for the quarter and (5.8)% year to date. Net income for the period was $7,615,000.
Basic earnings per share were $0.49 and diluted earnings per share were $0.49, computed using weighted-average basic shares outstanding of 15,883,488 and a dilutive adjustment of 297 shares. Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, and diluted earnings per share reflects the potential dilution from share-based awards. As of June 30, 2026, current debt was $340,000 and long-term debt was $189,364,000. Long-term debt decreased from $218,056,000 in the prior period, a decrease of 13.2%, while current debt increased from $330,000, an increase of 3.0%. Interest expense on debt for the period was $2,282,000, and other nonoperating expense, net was $208,000. Total liabilities were $409,691,000 as of June 30, 2026.
Total stockholders' equity was $294,276,000 as of June 30, 2026. Stockholders' equity consisted of common stock of $188,444,000 and retained earnings of $105,832,000. Common stock increased from $139,071,000 in the prior period, an increase of 35.5%, and retained earnings increased from $95,480,000, an increase of 10.8%. [COMPLETE: number of common shares authorized, issued and outstanding, and dividends declared per share during the period.] The Company is involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the applicable rules and regulations of the Securities and Exchange Commission. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented.
The financial statements include the accounts of the Company and its consolidated subsidiaries, if any. All intercompany balances and transactions have been eliminated in consolidation.
The allowance for credit losses reflects expected credit losses over the contractual life of the in-scope financial assets, measured considering historical loss experience, current conditions, and reasonable and supportable forecasts, and is presented as a deduction from the amortized cost basis of the related assets.
Receivables are recorded at the amounts contractually due from customers and other counterparties, net of any allowance for amounts not expected to be collected.
Property and equipment are stated at cost less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the related assets, generally on a straight-line basis. Expenditures for maintenance and repairs are expensed as incurred.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When the carrying amount of an asset or asset group is not recoverable, an impairment loss is recognized for the amount by which the carrying amount exceeds fair value.
Debt is carried at amortized cost. Debt issuance costs and discounts or premiums are presented as an adjustment to the carrying amount of the related debt and amortized to interest expense over the contractual term of the debt.
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized when it is more likely than not that some portion of the deferred tax assets will not be realized.
Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock, except when the effect would be antidilutive.
Equity instruments issued by the Company are classified in stockholders' equity based on their terms. The components of stockholders' equity and the changes in those components for the periods presented are set forth in the equity note.
The Company evaluates the applicability and impact of Accounting Standards Updates issued by the Financial Accounting Standards Board as they are issued. Adopted updates and updates not yet effective are not expected to have a material effect on the financial statements, except as otherwise described in these notes.
| Current | Prior | |
|---|---|---|
| Debt, current | ||
| Long-term debt | ||
| Total debt | 189,704,000 | 222,230,000 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | ||
| Utility plant, net | ||
| Total property and equipment | 588,055,000 | 569,926,000 |
| Current | Prior | |
|---|---|---|
| Common stock | ||
| Retained earnings (accumulated deficit) | ||
| Total stockholders' equity | 294,276,000 | 240,347,000 |
| Current | Prior | |
|---|---|---|
| Weighted average shares outstanding, basic | ||
| Dilutive effect of potential common shares | ||
| Weighted average shares outstanding, diluted | ||
| Basic earnings per share | 0.49 | 0.35 |
| Diluted earnings per share |
| Current | Prior | Year to date | Prior year to date | |
|---|---|---|---|---|
| Effective tax rate | ( | ( |
| Current | Prior | |
|---|---|---|
| Deferred tax assets, gross | ||
| Operating loss carryforwards | ||
| Other deferred tax assets | ||
| Valuation allowance | ||
| Employee compensation | ||
| Pensions | ||
| Allowance for doubtful accounts | ||
| Charitable contribution carryforwards | ||
| Compensated absences | ||
| Deferred tax liabilities | ||
| Deferred income tax liabilities | ||
| Property and equipment | ||
| Other deferred tax liabilities | ||
| Deferred financing costs |
| Current | Prior | |
|---|---|---|
| Other nonoperating income (expense), net | ( | ( |
| Current | Prior | |
|---|---|---|
| Interest expense on debt |
York Water Company is a public reporting company classified under Water Supply, and the following discussion compares our results of operations for the period ended June 30, 2026 with the comparable prior-year period. Revenue increased 22.5% to $23,515,000 from $19,199,000 in the prior-year period, an increase of $4,316,000, driven primarily by [COMPLETE: description of revenue drivers, such as rate relief, customer growth, or consumption changes]. Operations and maintenance expense increased 23.4% to $5,953,000 from $4,823,000, an increase of $1,130,000, reflecting [COMPLETE: drivers of operations and maintenance increase]. General and administrative expense increased 8.4% to $3,617,000 from $3,338,000, an increase of $279,000, and depreciation and amortization increased 4.2% to $3,654,000 from $3,506,000, an increase of $148,000 that is consistent with continued investment in utility plant. Taxes other than income taxes increased 8.3% to $483,000 from $446,000.
Other expense, net, decreased 15.6% to $2,027,000 from $2,401,000 in the prior-year period, a favorable change of $374,000 attributable to [COMPLETE: drivers of the change in other income (expense), net, including interest expense]. We recorded income tax expense of $166,000 in the current period compared with an income tax benefit of $367,000 in the prior-year period, reflecting [COMPLETE: explanation of the change in the effective tax rate, including the impact of the tax accounting method for repairs]. Net income for the period was $7,615,000, and basic earnings per share were $0.49 on weighted-average basic shares outstanding of 15,883,488.
With respect to liquidity and capital resources, cash and cash equivalents were $555,000 at June 30, 2026 compared with $1,000 at the end of the prior period, an increase of $554,000. Our primary sources of liquidity are cash generated from operations, the issuance of common stock and long-term debt, and [COMPLETE: description of available credit facilities and unused borrowing capacity]. Common stock increased 35.5% to $188,444,000 from $139,071,000, an increase of $49,373,000, while long-term debt decreased 13.2% to $189,364,000 from $218,056,000, a reduction of $28,692,000, and current debt was $340,000 compared with $330,000. Total liabilities were $409,691,000 and total equity was $294,276,000 at period end. Utility plant, net, increased 6.9% to $586,564,000 from $548,715,000, an increase of $37,849,000 reflecting capital expenditures on [COMPLETE: description of principal capital projects]. Regulatory assets increased 12.0% to $62,140,000 from $55,475,000, and deferred revenue, noncurrent, increased 28.2% to $27,953,000 from $21,812,000. Accounts receivable increased 15.4% to $8,639,000 from $7,484,000, and accounts payable increased 9.6% to $9,337,000 from $8,517,000, consistent with the growth in revenue and capital activity during the period. [COMPLETE: statement as to whether management believes cash flows from operations, together with available financing sources, are sufficient to fund operations, capital expenditures, debt service, and dividends for at least the next twelve months.]
Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. We are involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements. Management evaluated disclosure controls and procedures as of the end of the period and concluded they were effective at the reasonable assurance level, and no changes materially affected internal control over financial reporting during the quarter. [COMPLETE: discussion of critical accounting estimates and any changes from the most recent Annual Report on Form 10-K.]
York Water Co is a public reporting company classified under Water Supply, and its primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. Cash and cash equivalents were $555,000 at June 30, 2026, compared with $1,000 at the prior period end. Because these balances are held in short-term, highly liquid instruments, changes in prevailing interest rates affect the interest income earned on them but are not expected to have a material effect on their carrying value. [COMPLETE: quantified effect of a hypothetical change in interest rates on interest income from cash, cash equivalents, and short-term investments]
The Company is also exposed to interest rate risk through its borrowings. Long-term debt was $189,364,000 at June 30, 2026, compared with $218,056,000 at the prior period end, a decrease of 13.2%, and the current portion of debt was $340,000 compared with $330,000. The Company's balance sheet reflected long-term debt of $189,364,000 at June 30, 2026 and $221,900,000 at the comparative balance sheet date, with total liabilities of $409,691,000 and $440,541,000, respectively. [COMPLETE: description of fixed-rate versus variable-rate composition of outstanding debt, related interest rate sensitivity, and estimated fair value of long-term debt]
The Company does not have material foreign currency or commodity price exposure. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. Other than the interest rate exposures described above, there have been no material changes in the Company's market risk exposures from those disclosed in its most recent Annual Report on Form 10-K. [COMPLETE: confirmation that no derivative instruments were outstanding and reference to the applicable Annual Report on Form 10-K]
Management of York Water Co, with the participation of its principal executive officer and principal financial officer, evaluated the effectiveness of the Company's disclosure controls and procedures as of June 30, 2026, the end of the period covered by this report. Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, management concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance of achieving their objectives, and management necessarily applies judgment in evaluating the cost-benefit relationship of possible controls and procedures.
There were no changes in the Company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. In connection with its oversight of third-party service providers, the Company conducts security assessments of third-party providers before engagement and maintains ongoing monitoring, including quarterly assessments made by the contracted Chief Information Officer and ongoing monitoring by its dedicated cybersecurity staff, to ensure compliance with its cybersecurity standards. This process is also intended to provide for the security and integrity of the Company's data that may be stored on third-party systems.
[COMPLETE: Management's conclusion language above must be reviewed and formally adopted by management, including the principal executive officer and principal financial officer, before filing.]
The Company is involved in legal proceedings arising in the ordinary course of business from time to time. Such matters may include claims and disputes incidental to the operation of a regulated water utility, and their outcomes cannot be predicted with certainty. Management does not currently believe that any pending matter is material to the financial statements.
This assessment reflects the status of matters involving York Water Co as of June 30, 2026. The Company will continue to monitor developments in any pending or threatened proceedings and will provide disclosure in future periodic reports should management's assessment of materiality change.
Our business, financial condition and results of operations are subject to a number of risks and uncertainties, and the risk factors described in our most recent Annual Report on Form 10-K should be read together with the information in this report. We are a public reporting company classified under Water Supply, and our principal products, services, markets and strategy are described in our prior SEC filings. [COMPLETE: statement regarding whether there have been any material changes to the risk factors disclosed in the Annual Report on Form 10-K]. The risks described below are not the only risks we face, and additional risks not presently known to us or that we currently deem immaterial may also adversely affect our business.
We are exposed to interest rate and capital market risk, and our ability to finance our capital program depends on access to debt and equity markets on acceptable terms. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. As of June 30, 2026, we had long-term debt of $189,364,000 and current debt of $340,000, and our total liabilities of $409,691,000 exceeded our total equity of $294,276,000. Our cash and cash equivalents were $555,000 at period end, while our utility plant, net, totaled $586,564,000, reflecting the capital-intensive nature of our operations and our reliance on external financing to fund ongoing investment in infrastructure. Our previously disclosed long-term debt maturity schedule included $44,630,000 maturing in year two, and an inability to refinance maturing obligations, or a rise in interest rates when we do so, could increase our financing costs and adversely affect our results.
Our results depend significantly on the regulatory environment in which we operate and on our ability to control operating costs and recover them through rates. As of June 30, 2026, we carried regulatory assets of $62,140,000, regulatory liabilities of $46,379,000 and contributions in aid of construction of $51,692,000, and unfavorable regulatory outcomes or delays in rate relief could impair our ability to recover these costs and earn an adequate return. For the period ended June 30, 2026, we reported revenue of $23,515,000 and net income of $7,615,000. Operations and maintenance expense increased 23.4% to $5,953,000 from $4,823,000 in the prior period, and general and administrative expense rose 8.4% to $3,617,000; continued cost increases that are not timely reflected in rates could reduce our margins. We are involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements, although the outcome of litigation is inherently uncertain. Management evaluated our disclosure controls and procedures as of the end of the period and concluded they were effective at the reasonable assurance level, and no changes materially affected internal control over financial reporting during the quarter; however, any future failure to maintain effective controls could adversely affect the reliability of our financial reporting and investor confidence.
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K with respect to Rule 10b5-1 trading arrangements of the directors and officers of YORK WATER CO for the quarter ended 2026-06-30. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]
[COMPLETE: any other information required to be disclosed under Item 5 of Part II, including any information required to be reported on Form 8-K during the quarter that was not so reported]