American States Water Company Announces First Quarter 2018 Results
First Quarter 2018 Results
The table below sets forth a comparison of the first quarter 2018 diluted earnings per share by business segment with diluted earnings per share for the first quarter of 2017, as reported:
Diluted Earnings per Share | |||||||||||||
Three Months Ended | |||||||||||||
3/31/2018 | 3/31/2017 | CHANGE | |||||||||||
Water | $ |
0.20 |
$ | 0.25 | $ | (0.05 | ) | ||||||
Electric | 0.04 | 0.04 | - | ||||||||||
Contracted services | 0.05 | 0.05 | - | ||||||||||
Consolidated diluted earnings per share, as reported | $ | 0.29 | $ | 0.34 | $ | (0.05 | ) | ||||||
Water Segment:
For the three months ended March 31, 2018, fully diluted earnings per
share from the water segment of
-
Lower net earnings due to the cost of capital decision issued by the
California Public Utilities Commission (CPUC) inMarch 2018 , which lowered GSWC’s return on rate base. The lower return beginning in 2018 is expected to decrease GSWC’s 2018 adopted annual revenue requirement by approximately$3.6 million , or about$0.07 per share. -
Losses incurred due to market conditions during the three months ended
March 31, 2018 on the company’s investments held to fund a retirement benefit plan, as compared to gains generated in the same period of 2017.
Excluding an increase in billed surcharges, which have no impact on
earnings, and the effects of the CPUC’s cost of capital decision
discussed above, the water gross margin decreased by
Electric Segment:
For the three months ended March 31, 2018 and 2017, diluted earnings
from the electric segment were
Contracted Services Segment:
For the three months ended March 31, 2018 and 2017, diluted earnings per
share from American States Water Company’s contracted services segment,
Regulatory Matters
In
Dividends
On
Non-GAAP Financial Measures
This press release includes a discussion on the water and electric gross
margins for various periods, which are computed by subtracting total
supply costs from total revenues. 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 the 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 on
About
American States Water Company | |||||||||
Consolidated | |||||||||
Comparative Condensed Balance Sheets | |||||||||
March 31, | December 31, | ||||||||
(in thousands) | 2018 | 2017 | |||||||
(Unaudited) | |||||||||
Assets | |||||||||
Utility Plant-Net | $ | 1,218,830 | $ | 1,204,992 | |||||
Goodwill | 1,116 | 1,116 | |||||||
Other Property and Investments | 23,744 | 24,070 | |||||||
Other Current Assets | 145,676 | 155,463 | |||||||
Regulatory and Other Assets | 34,298 | 31,093 | |||||||
Total Assets | $ | 1,423,664 | $ | 1,416,734 | |||||
Capitalization and Liabilities | |||||||||
Capitalization | $ | 812,577 | $ | 850,984 | |||||
Other Current Liabilities | 196,491 | 156,662 | |||||||
Other Credits | 414,596 | 409,088 | |||||||
Total Capitalization and Liabilities | $ | 1,423,664 | $ | 1,416,734 | |||||
Condensed Statements of Income | Three months ended | ||||||||
(in thousands, except per share amounts) | March 31, | ||||||||
2018 | 2017 | ||||||||
(Unaudited) | |||||||||
Operating Revenues | |||||||||
Water | $ | 64,412 | $ | 66,404 | |||||
Electric | 9,832 | 10,502 | |||||||
Contracted services | 20,484 | 21,904 | |||||||
Total operating revenues | 94,728 | 98,810 | |||||||
Operating Expenses | |||||||||
Water purchased | 13,607 | 12,106 | |||||||
Power purchased for pumping | 1,693 | 1,597 | |||||||
Groundwater production assessment | 4,651 | 3,375 | |||||||
Power purchased for resale | 3,408 | 3,100 | |||||||
Supply cost balancing accounts | (3,869 | ) | (1,749 | ) | |||||
Other operation | 7,988 | 6,160 | |||||||
Administrative and general | 20,293 | 20,448 | |||||||
Depreciation and amortization | 9,666 | 9,683 | |||||||
Maintenance | 3,829 | 3,464 | |||||||
Property and other taxes | 4,799 | 4,566 | |||||||
ASUS construction | 9,972 | 11,484 | |||||||
Total operating expenses | 76,037 | 74,234 | |||||||
Operating income | 18,691 | 24,576 | |||||||
Other Income and Expenses | |||||||||
Interest expense | (5,923 | ) | (5,905 | ) | |||||
Interest income | 536 | 259 | |||||||
Other, net | 42 | 626 | |||||||
Total other income and expenses | (5,345 | ) | (5,020 | ) | |||||
Income Before Income Tax Expense | 13,346 | 19,556 | |||||||
Income tax expense | 2,564 | 6,855 | |||||||
Net Income | $ | 10,782 | $ | 12,701 | |||||
Weighted average shares outstanding | 36,712 | 36,590 | |||||||
Basic earnings per Common Share | $ | 0.29 | $ | 0.35 | |||||
Weighted average diluted shares | 36,874 | 36,782 | |||||||
Fully diluted earnings per Common Share | $ | 0.29 | $ | 0.34 | |||||
Dividends Declared Per Common Share | $ | 0.255 | $ | 0.242 | |||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180507005898/en/
Source:
American States Water Company
Eva G. Tang, 909-394-3600, ext. 707
Senior
Vice President-Finance, Chief Financial Officer,
Corporate
Secretary and Treasurer