Good day, and welcome to the Aqua America's Fiscal Year 2013 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Brian Dingerdissen, Director of Investor Relations. Please go ahead, sir.

Thank you, Jason. Good morning, everyone. Thank you for joining us for Aqua America's Full Year 2013 Earnings Conference Call. If you did not receive a copy of the press release, you can find it by visiting the Investor Relations section of our website at aquaamerica.com, or by calling Alex Whitlum [ph] at (610) 645-1196. There will also be a webcast of this event available on our site. Presenting today is Nicholas DeBenedictis, Chairman and President of Aqua America; along with David Smeltzer, the company's Chief Financial Officer. As a reminder, some of the matters discussed during this call may include forward-looking statements that involve risk, uncertainties and other factors that may cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements. Please refer to our most recent 10-Q, 10-K and other SEC filings for a description of such risks and uncertainties. During the course of this call, reference may be made to certain non-GAAP financial measures. Reconciliation of these non-GAAP to GAAP financial measures are posted in the Investor Relations section of the company's website. At this time, I would like to turn the call over to Nick for his formal remarks, after which, we will open the call up for questions. Nick?

Thank you, Brian. Good morning, everyone. Aqua's pleased to report this morning that 2013 was our 14th consecutive year of increasing earnings with a 10% CAGR over that time period, actually in excess of 10%. And 2013's 12.6% growth in net income allowed our board to raise the dividend in September of '13, 9%, that was our 23rd dividend increase in the past 22 years. The stock performed well over the course of the year, returning to shareholders 19% shareholder value and it was complemented by a 5-for-4 stock split on September 1, '13, that was our seventh split in the past 18 years. Now in '13, Aqua's management team was able to deliver the same consistent, strong financial results of an increasing shareholder value that our investors have come to expect as a slow-steady but profitable company. As we look at 2014, that will be my 23rd year with the company, and I'm optimistic as ever about keeping the record of earnings and dividend increases intact. 2013 was one of my most satisfying times at the company after, as I said, over 2 decades, not only thanks to the strong financial results, but also due to the excellent execution of our management team, which we reorganized in 2012 and is now producing, what I would consider, stellar results. Let me give you a couple of examples. This last year, we flawlessly executed on the $300 plus million CapEx investment program. And other than just the financial number, there's a lot behind that. One of the most important aspects of our continuing high investment level in our plans and infrastructure is the reduction of our environmentally driven expenditures to, today, less than 5% of our CapEx, it used to be much, much higher, so that we can almost exclusively focus…

Flat.

Flat in '14. And I think there's some upside on that because just in the recent 2 months, the gas prices have risen from $2 to over $4. And of course, Marcellus' problem is getting the gas out, not producing the gas -- Pennsylvania is now the second leading producer of natural gas in the country. It surpassed Louisiana this year. The problem is getting it out. The wells are more prolific and productive than they ever expected, but you have to get it to market. And with this recent run-up and usage of natural gas for energy, but also for heating in this cold winter, gas has shot up to $4. So we anticipate an increase in drilling, which is where the water is used in the process. To wrap up, '13 was an exceptional year, financially, for us. But equally important was operationally strong with our very strong financial capabilities now built with our A+ rating and the cash generation. And with growth returning, it shall allow us to maintain our record of increased earnings year in, year out and dividend increases in '14. Also, I saw an early headline on one of the services and I want to make sure I clarify it. The headline said that we, they acknowledge that we beat First Call and then they said that we're going to increase the dividend, at least I interpret it that way, and stock split. What we're talking about is the history of '13, obviously any stock split or more important, dividend increase is the board's responsibility, and we have not had our strategic meeting where we usually used to take the dividend increase up, but I assume -- you can assume it's a high priority when we've done it 23 times in the last 22 years. We did issue a revised release to clear -- make it clear that we didn't raise the dividend yet at yesterday's board meeting. I'll answer any questions.

[Operator Instructions] We'll go first to Jonathan Reeder with Wells Fargo.

Could you clarify the expectations on the shale pipeline in '14? You said flat, did you mean just breakeven or still a little bit of a loss?

About $0.5 million loss. But cash should jump up to about $8 million. That's what we're budgeting.

Okay. And then what was the gain on the Florida sale?

$0.08.

$0.08. And that was all in 2013?

Yes. A little bit in the first quarter, that's why the first quarter was higher than most of the analysts' estimates, although here in this board meeting [indiscernible]. And then the last quarter, it was also in the last quarter, which we tried to true up on the -- in the quarterly and year-end analysis [indiscernible].

Do you have the breakdown between Q1 and Q4, or no?

I think it was $0.03 -- $0.02 in the first quarter and $0.06 in the third quarter -- fourth quarter. And remember, the other noise in the last year was that in 2012, all the repair was brought in, in the fourth quarter, but when you spread it out over the 4 quarters, which we tried to do, that's what we try to true up in the end and how we came up with the 26 versus 22. But still a healthy quarter.

Yes. And then on the customer growth expectations, 1.5% to 2%, is that driven more through M&A expectations, or is it strong underlying organic growth that you're seeing?

We're seeing some strong organic growth now again, never really slowed down too much in Texas. A real rebirth in North Carolina. The rest are pretty standardized, 0.3%, 0.5% in some of the rust belt states. But we are seeing much more activity on the acquisition front. We just signed a deal with Chicago Heights doing O&M, which is hopefully a -- gets your reputation on and allows you to maybe do an acquisition later, although this is strictly O&M. But we are seeing some larger mid-sized municipal governments interested in working with us, be they regulated or unregulated.

Okay. And then, do you expect to file a K later today?

Dave? Monday?

Yes, probably Monday.

[Operator Instructions] We'll go next to Jerry Swing [ph] with Bonnic [ph].

Two quick questions, just on the repair tax accounting. Is there any way you can talk a little bit on the tax rate and maybe how we'd look at it on a go-forward basis, just on the modeling front, comfortable until we hit the tax line and then it -- that shifts around? And I know there's moving targets where you spend your CapEx during the quarter as to where it's been and how it falls into these buckets for the repair tax. So any comments on that?

Yes, that's the real dilemma. Depending on what project gets done at what time, some are eligible for 100%, some 70%, some 0. And just saying, we're going to spend the same amount of capital doesn't necessarily mean you're going to generate less or more. It depends on what projects you can spend them on, and obviously, that's management -- the challenge of management. But Dave can express what is that, his assumptions were. You're talking about this year's tax line?

Yes, this year, as in 2014? Yes. As much as you can.

Yes, well, when we look at the repairs, Nick said, it's a little bit hard to predict, right? It's based on specific projects that qualify and obviously, they have to get done during the year. But we actually see the repair being fairly consistent from '13 to '14. We saw a jump up in '13 over '12 and that was related to some new areas of deduction that we took, some of which were actually '12 portions that were booked in '13, that was about $0.05. We also saw in '13 the initiation of the catch-up deduction, amortization, right, so that started off and that will continue, we expect each year going forward. And in '13, we saw a greater percentage of our projects qualify because we began the year understanding what the rules were versus in '12 when we kind of worked up the rules during the year. So that explains the increase in '13. But like I said, we would expect, going forward, to be reasonably consistent in the level of deduction here, and therefore, our effective tax rate.

Okay, that's helpful. And then, Nick, I think last time we spoke in terms of Pennsylvania, you were, at the earliest, you'll do anything [indiscernible] -- I know it's probably -- I mean, there's still some time off later in 2015, at a minimum. Is that accurate or...

You faded out right when you said the dates.

Late 2015 is what I was looking at in terms of...

Yes. We don't see, right now, the need for a rate increase in '14. We don't see the need for a disk in '14. Now that could change. But as of now, it looks like we'd go into '15 and if that's the case, the first step would be a disk. And that could be mid- to late-'15.

[Operator Instructions] And there appears to be no further questions at the time. I would turn the conference back to Mr. DeBenedictus for any additional or closing comments.

Yes. Thank you, everyone, for attending the conference.

That does conclude today's conference. We thank you for your participation.