Aqua America (NYSE:WTR) is one of the largest U.S.-based water utility companies, serving nearly 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. During the second quarter, Aqua America reported $203.4 million in revenue, which is down 0.2% Y/Y and didn’t meet analysts’ consensus. However, operational and maintenance expenses were decreased to $70.9 million, from $74 million a year before, which helped the company to achieve a higher net income of $61 million in comparison with $59.6 million for the same period last year.
Source: Investor’s Presentation
What made me interested in the company is its recent M&A activity. According to the management, the client base of Aqua America increased by one thousand customers in the first half of the year, thanks to a number of acquisitions that were made in Pennsylvania and Ohio. Also, during the last three years, Aqua America conducted 51 acquisitions and still continues to be active in the M&A field.
