DOVER, Del., Oct. 1, 2003 -- Chesapeake Utilities Corp. announced the sale of its Idaho water treatment and conditioning dealership, Sharp Water of Idaho, Inc. (doing business as (dba) Intermountain Water), bringing the total number of dealerships sold to three. The dealership had two operating locations, one in Boise and one in Moscow, Idaho. Each location's assets were sold in a separate transaction.
The assets of the Boise location of Intermountain Water were sold on September 30, 2003 to Health Preservation Waters, LLC of St. Cloud, MN. The assets of the Moscow location of Intermountain Water were sold on July 31, 2003 to Brian R. Todd, former Operations Manager.
The sale of the dealership reflects further progress in addressing the challenges of the Company's water services business. Strong performance and growth in the Company's core energy operations, while continuing to address these challenges, should provide opportunities for improved returns in the future.
These sales are expected to further reduce losses from this segment. Management continues to improve the return from these operations, while reviewing options for the remaining water services businesses. Chesapeake previously sold certain assets of its Venice, FL (Absolute Water Care, Inc.) dealership on June 3, 2003 and the assets of its Rochester, MN (EcoWater Systems of Rochester, Inc.) on June 30, 2003.
"The sale of three of our water dealerships over the past several months reflects our commitment to improve the operational and financial performance of this business in 2003," said John R. Schimkaitis, President and Chief Executive Officer of Chesapeake Utilities Corporation. "Management continues to look at options for the remaining water services businesses, and is committed to improving the return from these operations."
Chesapeake's strategy is to grow earnings from its utility foundation by investing in related businesses and services that provide opportunities for higher, unregulated returns. This growth strategy includes acquisitions and investments in unregulated businesses as well as the continued investment and expansion of the Company's utility operations that provide a stable base of earnings. Chesapeake continuously re-evaluates its investments to ensure that they are consistent with its strategy and the goal of enhancing shareholder value.
Chesapeake Utilities Corporation is a diversified utility company engaged in natural gas distribution and transmission, propane gas distribution and wholesale marketing, advanced information services and water services. Information about Chesapeake's businesses is available at www.chpk.com.
