Welcome to the Aqua America, Inc. Q1 2015 Earnings Conference Call. [Operator Instructions]. At this time I would like to turn the conference over to Mr. Brian Dingerdissen, Director of Investor Relations. Please go ahead, sir.

Thank you, Dana. Good morning, everyone. Thank you for joining us for Aqua America's first quarter 2015 earnings conference call. If you did not receive a copy of the press release conference call you can find it by visiting the investor relation section of our website at aquaamerica.com or by calling Alex Whitelam at (610) 645-1196. There will also be a webcast of this event available on our site. Presenting today is Nick 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 up the call for questions. Nick?

Thank you, Brian and welcome everyone to Aqua's first quarter earnings report. As primarily a mid-Atlantic, Midwest utility we experienced a brutal winter period encompassing the quarter that I'll report on today, but before getting to the numbers, I want to acknowledge the efforts of our dedicated and experienced employees who got our customers through this cold winter almost unscathed. As you know Aqua's reliability goal is 100% and we think is kept intact even after this winter. We had more main breaks than forecasted, more than last year which we thought was high, a lot of elevated maintenance to service customers with frozen pipes, a lot of extra overtime. And lower consumption in the quarter based on the fact of the weather. But I have to remind you that 2013/14 winter was no cake walk either so the comparisons were somewhat offsetting. I would like to note that although we had over 400 main breaks during this three-month period, had we not been rehabilitating over 25% of our pipe over the past 20 years, and that's about thousands of miles of old pipe, over the past two decades, we probably would have experienced probably in the range of 800 pipe breaks. So everything is relative and we saw return to normal pipe breaks very quickly in April and that shows how the system is resilient and the repairs we're doing really are paying off. We just did get our April revenues and it was a little bit weathered than normal but looking ahead, May and June are much higher use months than April. So the second quarter results will probably be contingent on dryer weather or how much dryer weather we get over the next two months, May and June and the good news is unlike California, our reservoirs…

[Operator Instructions]. We will go to Jonathan Reeder with Wells Fargo Securities.

So if I heard you correct, there won't be an announcement either at the Annual Meeting coming up?

No, I don't believe there will be.

Okay. And is it this Friday or next Friday, I'm sorry I don't have the calendar in front much me?

It's this Friday, two days from now.

Okay. I mean how should we be thinking I guess the process, it's still a short list. Does that mean just terms haven't been reached with the number one candidate or did something fall through that didn't kind of reach their hopeful deadline?

I think you just have assume but we’re still doing a thorough job and this is a very confidential type thing, people that have applied to look at the job, have their career at stake. So I don’t really want to get into any speculation.

Okay. And then I guess just in terms of the actual business, it seems like things are really running well. The M&A landscape you seem quite optimistic that, there is potentially large future deals in the process too. I mean should we be thinking as large as the North Maine or is it the size of the other deal that you announced this quarter as well?

I think the North Maine at 50,000, 44,000 people being sailing was 50. That's the upper end of the range that we are targeting. So in essence, the deductive reasoning would say that if we got one or two of those, that's great a year. But we are looking for the larger municipal deals, 5000, 10,000, 15,000 000 customers or people. We think that's our niche. We're not looking at Philadelphia. We're not looking at big cities. There are some in our public space if we look at that. But we are looking at what I'll call small to mid-sized town U.S.A. and the eight states we're in and those are probably have more of a decision mode to make because it's less politics, more about the financial and service to their customers. So we think we have a better chance at convincing them which is very difficult because as you know, things at rest stay at rest and there has never been massive move at privatization but we're starting to see maybe 1%, 2%, 5% of that 85% of municipal sector at least putting out RFPs, asking for inquiries and that's healthy and with us with 1% of the total market, that would be a huge growth factor for us.

Of course. So I guess is this just increased conversations with the RFPs or do you think you're pretty close to striking some additional deals?

Well, you know, what happens is you might have to have referendums, there is council votes. Gestation period is much longer than a private deal, even at macro-deal like big electric company deal which would still take as year sometimes or more. But the municipal deals could take sometimes a year-and-a-half, two years through an election cycle so it's hard to predict.

Okay. And then last question on the non-regulated, revenue projection of $30 million this year, I guess how should we think about that, you know, growing going forward? I know of you said the margins were kind of in the 6% to 7% range. What's the aspiration for I guess growing off that $30 million base?

Well, hopefully as you get a little bigger and a little bit, you know, more of an in-depth management team. Don't forget we just started this. You have the chance of consolidating expenses and maybe improving margins. That would be one area. But, at this point, the CAGR has been almost 50% a year when you look at it compounded. I don't think we're going to continue at that pace, but, you know, we're looking into a couple more deals right within the space so I would anticipate 10% to 20% revenue growth at which point the margins and maybe some margin improvement.

Okay. 10 and 20%, would half of that just be from the organic business growing and then the other half from kind of other deals?

Right. If you do a deal on top of that, then it would grow faster but I don't want to predict until we have it and the JV on the Marcellus, I think you really have to look at that as a base now. It's finally bottomed I guess you could argue and you know we're starting to see drilling. It's shut down basically for six months. We're starting to see a little bit of demand coming up which means that just a little uptick in gas prices and oil prices over the past month it's already started to make a little bit of a difference. So to me, that's some upside. As you remember we had predicted as much as $0.05 to $0.10 a share by this time and now it reverses the penny. So that’s a in my mind, you know a possibility of enhancing our future. We are still generating cash, Jonathan so it's not like it's throwing cash off because of the high depreciation rate but it's just not -- we're just not selling as many gallons as we would like.

[Operator Instructions]. And it appears we have no further questions.

Okay. Thank you very much.

Again that does conclude today's presentation. We will thank you for your participation.