American States Water Company Announces Earnings for the Second Quarter of 2015
Second Quarter 2015 Results
The table below sets forth a comparison of the second quarter diluted earnings per share by business segment, as reported:
Three Months Ended | |||||||||||||||
6/30/2015 | 6/30/2014 | CHANGE | |||||||||||||
Water | $ | 0.33 | $ | 0.33 | $ | — | |||||||||
Electric | 0.01 | 0.02 | (0.01 | ) | |||||||||||
Contracted services | 0.06 | 0.04 | 0.02 | ||||||||||||
AWR (parent) | 0.01 | — | 0.01 | ||||||||||||
Consolidated diluted earnings per share, as reported | $ | 0.41 | $ | 0.39 | $ | 0.02 |
Water
For the three months ended June 30, 2015 and 2014, diluted earnings from
the water segment were
Billed water consumption for the second quarter of 2015 decreased by
approximately 13% as compared to the same period in 2014 due largely to
water conservation by our customers in response to the ongoing drought
conditions in
Electric
For the three months ended June 30, 2015, diluted earnings from the
electric segment decreased by
Contracted Services
Diluted earnings from contracted services were
AWR (parent)
Diluted earnings from AWR (parent) increased by
Year-to-Date 2015 Results
Basic and fully diluted earnings per share were
Year-to-Date | |||||||||
6/30/2015 | 6/30/2014 | Change | |||||||
Water | $ | 0.57 | $ | 0.54 | $ | 0.03 | |||
Electric | 0.04 | 0.04 | --- | ||||||
Contracted services | 0.10 | 0.08 | 0.02 | ||||||
AWR (parent) |
0.02 | 0.01 | 0.01 | ||||||
Consolidated diluted earnings per share, as reported |
$ | 0.73 | $ | 0.67 | $ | 0.06 |
Increase/ | ||||
Reconciliation of Changes in YTD EPS from 2014 to 2015: |
(Decrease) | |||
Water Segment: |
||||
Water gross margin contribution due to rate increases (excluding surcharges*) | $ | 0.02 | ||
Higher depreciation expense | (0.01 | ) | ||
Lower other operation and maintenance expenses, partially offset by higher administrative and general expenses |
0.01 | |||
Lower interest expense | 0.01 | |||
Electric Segment: |
||||
Lower electric margin | (0.01 | ) | ||
Lower depreciation expense | 0.01 | |||
Contracted Services Segment: |
||||
Favorable changes in cost estimates, partially offset by a decrease in construction activities |
0.02 | |||
Higher operating expenses, partially offset by revenue increases due to successful price redeterminations | (0.01 | ) | ||
Lower state income taxes | 0.01 | |||
AWR Parent: |
||||
Increase due primarily to state income tax benefits recorded at AWR parent | 0.01 | |||
YTD 2015 EPS increase |
$ | 0.06 |
* | Surcharges billed to customers for previously incurred costs are recorded as revenues with a corresponding increase in operating expenses. These surcharges have no impact to earnings and are excluded from the table above. |
Regulatory Matters
In
Dividends
Non-GAAP Financial Measures
This press release includes a discussion on the water and electric gross
margins for various periods, which are computed by taking total water
and electric revenues, less total supply costs. The discussion also
includes AWR’s operations in terms of diluted earnings per share by
business segment, which is each business segment’s earnings divided by
the Company’s weighted average number of diluted shares. These items are
derived from consolidated financial information but are not presented in
our financial statements that are prepared in accordance with Generally
Accepted Accounting Principles (“GAAP”) in
The non-GAAP financial measures supplement our GAAP disclosures and should not be considered as alternatives to the GAAP measures. Furthermore, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other registrants. The Company uses water and electric gross margins and earnings per share by business segment as important measures in evaluating its operating results and believes these measures are useful internal benchmarks in evaluating the performance of its operating segments. The Company reviews these measurements regularly and compares them to historical periods and to the operating budget.
Forward-Looking Statements
Certain matters discussed in this news release with regard to the
Company’s expectations may be forward-looking statements that involve
risks and uncertainties. The assumptions and risk factors that could
cause actual results to differ materially include those described in the
Company’s most recent Form 10-Q and Form 10-K filed with the
Conference Call
The Company will host a conference call tomorrow,
The call will also be archived on our website and can be replayed
beginning
About
American States Water Company | ||||||||||||||
Consolidated | ||||||||||||||
Comparative Condensed Balance Sheets | ||||||||||||||
June 30, | December 31, | |||||||||||||
(in thousands) | 2015 | 2014 | ||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Utility Plant-Net | $1,015,507 | $1,003,520 | ||||||||||||
Goodwill | 1,116 | 1,116 | ||||||||||||
Other Property and Investments | 18,728 | 17,536 | ||||||||||||
Current Assets | 150,228 | 209,451 | ||||||||||||
Regulatory and Other Assets | 157,776 | 146,675 | ||||||||||||
Total Assets | $1,343,355 | $1,378,298 | ||||||||||||
Capitalization and Liabilities | ||||||||||||||
Capitalization | 803,191 | 832,599 | ||||||||||||
Current Liabilities | 95,167 | 99,290 | ||||||||||||
Other Credits | 444,997 | 446,409 | ||||||||||||
Total Capitalization and Liabilities | $1,343,355 | $1,378,298 | ||||||||||||
Condensed Statements of Income | Three months ended | Six months ended | ||||||||||||
(in thousands, except per share amounts) | June 30, | June 30, | ||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Operating Revenues | ||||||||||||||
Water | $ | 87,581 | $ | 86,232 | $ | 159,085 | $ | 156,989 | ||||||
Electric | 7,889 | 8,328 | 18,858 | 18,784 | ||||||||||
Contracted services | 19,148 | 21,081 | 37,608 | 41,813 | ||||||||||
Total operating revenues | $ | 114,618 | $ | 115,641 | $ | 215,551 | $ | 217,586 | ||||||
Operating Expenses | ||||||||||||||
Water purchased | $ | 16,415 | $ | 16,263 | $ | 28,706 | $ | 27,487 | ||||||
Power purchased for pumping | 2,123 | 2,570 | 4,140 | 4,534 | ||||||||||
Groundwater production assessment | 4,122 | 4,853 | 7,511 | 8,393 | ||||||||||
Power purchased for resale | 2,566 | 1,988 | 5,065 | 4,687 | ||||||||||
Supply cost balancing accounts | 1,816 | (106 | ) | 3,629 | 712 | |||||||||
Other operation | 7,362 | 7,085 | 13,522 | 14,032 | ||||||||||
Administrative and general | 20,471 | 19,407 | 39,998 | 39,591 | ||||||||||
Depreciation and amortization | 10,536 | 10,525 | 21,084 | 21,055 | ||||||||||
Maintenance | 4,205 | 4,327 | 7,682 | 7,816 | ||||||||||
Property and other taxes | 4,060 | 3,965 | 8,336 | 8,290 | ||||||||||
ASUS construction | 10,412 | 13,764 | 20,458 | 27,221 | ||||||||||
Total operating expenses | $ | 84,088 | $ | 84,641 | $ | 160,131 | $ | 163,818 | ||||||
Operating income | $ | 30,530 | $ | 31,000 | $ | 55,420 | $ | 53,768 | ||||||
Other Income and Expenses | ||||||||||||||
Interest expense | (5,527 | ) | (5,778 | ) | (10,755 | ) | (11,405 | ) | ||||||
Interest income | 102 | 123 | 214 | 235 | ||||||||||
Other, net | 77 | 271 | 350 | 396 | ||||||||||
Total other income and expenses | (5,348 | ) | (5,384 | ) | (10,191 | ) | (10,774 | ) | ||||||
Income Before Income Tax Expense | $ | 25,182 | $ | 25,616 | $ | 45,229 | $ | 42,994 | ||||||
Income tax expense | 9,534 | 10,262 | 17,432 | 16,619 | ||||||||||
Net Income | $ | 15,648 | $ | 15,354 | $ | 27,797 | $ | 26,375 | ||||||
Weighted average shares outstanding | 37,702 | 38,781 | 37,952 | 38,764 | ||||||||||
Basic earnings per Common Share | $ | 0.41 | $ | 0.39 | $ | 0.73 | $ | 0.68 | ||||||
Weighted average diluted shares | 37,909 | 39,001 | 38,153 | 38,974 | ||||||||||
Fully diluted earnings per Common Share | $ | 0.41 | $ | 0.39 | $ | 0.73 | $ | 0.67 | ||||||
Dividends Declared Per Common Share | $ | 0.2130 | $ | 0.2025 | $ | 0.4260 | $ | 0.4050 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804006901/en/
Source:
American States Water Company
Eva G. Tang
Senior Vice
President-Finance, Chief Financial Officer,
Corporate Secretary and
Treasurer
Telephone: (909) 394-3600, ext. 707