SAN DIMAS, Calif.--(BUSINESS WIRE)--Mar. 27, 2014--
American States Water Company (NYSE:AWR) announced today that its Board
of Directors has approved a stock repurchase program authorizing the
Company to repurchase up to 1.25 million shares or 3.2% of its
outstanding common shares from time to time through June 30, 2016. The
Company intends to initiate the repurchase of the common shares through
implementation of a Rule 10b5-1 trading plan in May 2014 at the earliest.
“This repurchase program is intended to enable the Company to achieve a
consolidated shareholders’ equity ratio that is more reflective of
appropriate equity ratios for our two first-tier subsidiaries, Golden
State Water Company and American States Utility Services, Inc.,” said
Robert J. Sprowls, President and Chief Executive Officer of AWR. He
further stated, “The higher equity ratio currently existing for the
consolidated company is partly the result of the sale in May 2011 of our
Arizona subsidiary, Chaparral City Water Company, where we received
approximately $30 million in cash at closing of the sale.” Since the
sale, AWR has used the cash from the sale to repay borrowings under its
revolving credit facility and invest in or lend to its two remaining
subsidiaries. Based upon current expectations, including the projected
infrastructure needs for Golden State Water Company and the expected
growth of American States Utility Services, Inc. which is not capital
intensive, management does not anticipate the Company will need to do a
secondary common stock offering in the near term.
The repurchase program does not obligate the Company to acquire any
specific number of shares and may be suspended, terminated or modified
at any time for any reason, including market conditions, the cost of
repurchasing shares, the availability of alternative investment
opportunities, liquidity, and other factors deemed appropriate. These
factors may also affect the timing and amount of share repurchases.
American States Water Company is the parent of Golden State Water
Company and American States Utility Services, Inc. Through its utility
subsidiary, Golden State Water Company, AWR provides water service to
approximately 257,000 customers throughout 10 counties in Northern,
Coastal and Southern California. The Company also distributes
electricity to approximately 24,000 customers in the Big Bear
recreational area of California. Through its contracted services
subsidiary, American States Utility Services, Inc., the Company provides
operations, maintenance and construction management services for water
and wastewater systems located on military bases throughout the country
under 50 year privatization contracts.
Source: American States Water Company
American States Water Company
Eva G. Tang
Senior Vice
President - Finance, Chief Financial Officer,
Treasurer and
Corporate Secretary
909-394-3600, extension 707