DOVER, Del., Oct. 14, 2003 -- Chesapeake Utilities Corp. announced the sale of the assets of its Michigan water treatment and conditioning dealership, EcoWater Systems of Michigan, Inc. (doing business as Douglas Water Conditioning), bringing the total number of dealerships sold to four. The dealership has two operating locations, one in Waterford and one in Fenton, MI.
The assets of the dealership were sold on October 9, 2003 to three individuals including Jerry Tiefenback, a former owner. The sale of the dealership assets is another step taken by Chesapeake to address the challenges of its water services business. Strong performance and growth in the Company's core energy operations, while continuing to focus on the challenges of the water services business, should provide opportunities for improved returns in the future.
Chesapeake previously sold the assets of its Venice, FL, (Absolute Water Care, Inc.) dealership on June 3, 2003; the assets of its Rochester, MN, (EcoWater Systems of Rochester, Inc.) dealership on June 30, 2003; and the assets of Sharp Water of Idaho, Inc., (Intermountain Water with locations in Moscow and Boise) on July 31, 2003 (Moscow assets) and October 1, 2003 (Boise assets), respectively.
"We are committed to improving the operational and financial performance of the Company," said John R. Schimkaitis, President and Chief Executive Officer of Chesapeake Utilities Corporation. "The sale of these dealerships reflects our commitment. We are continuing to evaluate our options for the two remaining water services businesses." The two remaining dealerships are located in Salisbury and Westminster, MD.
Matters discussed in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. For example, the success of the Company's water business strategy is subject to competitive and economic pressures. Please refer to the Cautionary Statement in the Company's report on Form 10-K for the year ended December 31, 2002 for further information on the risks and uncertainties related to the Company's forward-looking statements.
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 other related businesses. Information about Chesapeake's businesses is available at www.chpk.com.
