American States Water Company Announces Earnings for the First Quarter of 2012
EPS from Continuing Operations Up 43% Over Prior Year
Q1 2012 | Q1 2011 |
$ Change |
||||||||||||||||
Income from continuing operations | $ | 0.53 | $ | 0.37 | $ | 0.16 | ||||||||||||
Income from discontinued operations | --- | 0.03 | (0.03 | ) | ||||||||||||||
Total diluted earnings per share | $ | 0.53 | $ | 0.40 | $ | 0.13 | ||||||||||||
First Quarter 2012 Results
Continuing Operations:
The table below sets forth a comparison by segment from continuing operations:
Q1 2012 | Q1 2011 |
$ Change |
||||||||||||
Water | $ | 0.28 | $ | 0.29 | ($0.01 | ) | ||||||||
Electric | 0.11 | 0.04 | 0.07 | |||||||||||
Contracted services | 0.15 | 0.04 | 0.11 | |||||||||||
AWR (parent) | (0.01 | ) | --- | (0.01 | ) | |||||||||
Diluted earnings from continuing operations | $ | 0.53 | $ | 0.37 | $ | 0.16 | ||||||||
Water
Diluted earnings from the water operations of AWR’s
-
An increase in the water gross margin of approximately
$1.8 million , or$0.06 per share, during the three months endedMarch 31, 2012 as compared to the same period in 2011 primarily due to third year rate increases approved by theCalifornia Public Utilities Commission (“CPUC”) for Regions II and III effectiveJanuary 1, 2012 , and an increase in consumption by customers not subject to GSWC’s conservation tiered rates. Billed water consumption for the first quarter of 2012 increased by approximately 7.0% as compared to the same period in 2011. -
An increase in operating expenses (other than supply costs) by
approximately
$1.8 million , or$0.06 per share, due primarily to increases in: (i) other operation expenses of$912,000 reflecting higher labor and other employee benefits, transportation expenses, conservation costs and bad debt expense, and (ii) depreciation expense of$641,000 resulting from additions to utility plant.
-
An overall increase in interest and other non-operating expenses (net
of interest income) of
$153,000 , or$0.01 per share, due primarily to the issuance of long-term notes inApril 2011 .
Electric
For the three months ended
Contracted Services
For the three months ended
AWR (parent)
Diluted earnings from AWR (parent) decreased by
Discontinued Operations:
On
Regulatory Matters
In
Non-GAAP Financial Measures
This press release includes a discussion on water and electric gross
margins, 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 an alternative to GAAP measures. Furthermore, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other registrants. Registrant uses water and electric gross margins and earnings per share by business segment as important measures in evaluating its operating results. Registrant believes these measures are useful internal benchmarks in evaluating the performance of its operating segments. Registrant reviews these measurements regularly and compares them to historical periods and to our operating budget.
Other – 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 Form 10-Q for the quarter ended
First Quarter 2012 Earnings Release Conference Call - The Company
will host a conference call today,
The call will also be archived on our website and can be replayed
beginning Monday, May 7, 2012 at
American States Water Company | ||||||||||
Consolidated | ||||||||||
Comparative Condensed Balance Sheets | ||||||||||
March 31, | December 31, | |||||||||
(in thousands) | 2012 | 2011 | ||||||||
(Unaudited) | ||||||||||
Assets | ||||||||||
Utility Plant-Net | $ | 897,835 | $ | 896,500 | ||||||
Goodwill | 1,116 | 1,116 | ||||||||
Other Property and Investments | 11,968 | 11,803 | ||||||||
Current Assets | 171,872 | 165,601 | ||||||||
Regulatory and Other Assets | 163,838 | 163,342 | ||||||||
$ | 1,246,629 | $ | 1,238,362 | |||||||
Capitalization and Liabilities | ||||||||||
Capitalization | $ | 755,393 | $ | 749,061 | ||||||
Current Liabilities | 107,372 | 104,370 | ||||||||
Other Credits | 383,864 | 384,931 | ||||||||
$ | 1,246,629 | $ | 1,238,362 | |||||||
Condensed Statements of Income | Three months ended | |||||||||
(in thousands, except per share amounts) | March 31, | |||||||||
2012 | 2011 | |||||||||
(Unaudited) | ||||||||||
Operating Revenues: | ||||||||||
Water | $ | 65,957 | $ | 64,326 | ||||||
Electric | 10,813 | 10,724 | ||||||||
Contracted services | 29,878 | 19,257 | ||||||||
Total operating revenues | $ | 106,648 | $ | 94,307 | ||||||
Operating Expenses: | ||||||||||
Supply costs | $ | 21,059 | $ | 21,777 | ||||||
Other operation expenses | 7,426 | 6,917 | ||||||||
Administrative and general expenses | 16,585 | 18,419 | ||||||||
Maintenance | 3,331 | 3,726 | ||||||||
Depreciation and amortization | 10,490 | 9,737 | ||||||||
Property and other taxes | 4,105 | 3,552 | ||||||||
ASUS construction expenses | 20,285 | 12,184 | ||||||||
Total operating expenses | $ | 83,281 | $ | 76,312 | ||||||
Operating income | $ | 23,367 | $ | 17,995 | ||||||
Interest expense | (6,070 | ) | (5,744 | ) | ||||||
Interest income | 215 | 137 | ||||||||
Other, net | 229 | 80 | ||||||||
Income From Continuing Operations Before Income Tax Expense | $ | 17,741 | $ | 12,468 | ||||||
Income tax expense | 7,626 | 5,513 | ||||||||
Income From Continuing Operations | 10,115 | 6,955 | ||||||||
Income from discontinued operations, net of taxes | - | 634 | ||||||||
Net Income | $ | 10,115 | $ | 7,589 | ||||||
Basic Earnings Per Share | ||||||||||
Income from continuing operations | $ | 0.53 | $ | 0.37 | ||||||
Income from discontinued operations | - | 0.03 | ||||||||
Net Income | $ | 0.53 | $ | 0.40 | ||||||
Fully Diluted Earnings Per Share | ||||||||||
Income from continuing operations | $ | 0.53 | $ | 0.37 | ||||||
Income from discontinued operations | - | 0.03 | ||||||||
Net Income | $ | 0.53 | $ | 0.40 | ||||||
Weighted Average Shares Outstanding | 18,831 | 18,648 | ||||||||
Weighted Average Diluted Shares | 18,973 | 18,778 | ||||||||
Dividends Declared Per Common Share | $ | 0.28 | $ | 0.26 | ||||||
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