2001 Revenues and Earnings Increase at Southwest Water Company.Business Editors WEST COVINA West Covina, city (1990 pop. 96,086), Los Angeles co., S Calif., in the San Gabriel valley; settled 1905, inc. 1923. Before World War II, West Covina was a small rural community where walnuts, wheat, and livestock were raised. , Calif.--(BUSINESS WIRE)--Jan. 31, 2002 Southwest Water Company (Nasdaq:SWWC SWWC Southwest Water Company SWWC So What Who Cares ) today reported its 2001 results, which reflected a 10 percent increase in revenues, a 16 percent increase in net income, and a 10 percent increase in earnings per share as compared to 2000. Revenues for the year ended December December: see month. 31, 2001 were $115,547,000, an increase of $10,806,000 over the prior year; net income rose by $862,000 to $6,243,000; and earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share rose by $.06 to $.65. For the year, the weighted average number of shares outstanding increased by six percent, reflecting the impact of the use of stock for acquisitions in 2001. Anton C. Garnier, Southwest Water president and chief executive officer, said, "Our financial performance in 2001 reflects continued improvements in both our rate-regulated utilities and our non-regulated contract operations and submetering business segments. The year included the successful acquisition of Operations Technologies, Inc. (OpTech) on August 31, which extended our contract operations client base to the East Coast and broadened our business to include public works public works pl.n. Construction projects, such as highways or dams, financed by public funds and constructed by a government for the benefit or use of the general public. Noun 1. services such as storm water drainage Wa´ter drain´age 1. The draining off of water. system maintenance and street repair. OpTech added approximately $3.7 million to Southwest Water's revenues in 2001 and was accretive to earnings. "Our financial performance also benefited from a full year of revenue and income generated by the three companies that we acquired in 2000: Master Tek International, Inc., our utility submetering Utility Submetering is the implementation of a system that allows a landlord, property management firm, condominium association, homeowners association, or other multi-tenant property to bill tenants for individual measured utility usage. , billing and collection company; and our two utility subsidiaries located in Texas, Windermere Utility Company and Hornsby Bend Utility Company. Our California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). rate-regulated utilities also had revenue and income gains in 2001." Garnier concluded, "We are pleased that, in today's difficult economic climate, we can report continuing financial improvements. We intend to continue building on our strong performance, recognizing that we may have a unique challenge in 2002 with the impact of the recent regulatory decision on cost recovery by the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, . This decision will likely result in greater fluctuations in revenues and earnings at our California rate-regulated utility, Suburban Water Systems. Our goal remains to provide excellent customer service and to support the growth of all parts of our business." Southwest Water Company provides a broad range of services, including water production and distribution, wastewater collection and treatment, public works services and utility submetering. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than 1.5 million people in 29 states from coast to coast depend on Southwest Water for high-quality, reliable service.
SOUTHWEST WATER COMPANY
2001 FINANCIAL RESULTS
(unaudited and in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Operating revenues $32,459 $26,485 $115,547 $104,741
Net income $1,746 $1,316 $6,243 $5,381
Net income available for
common shares $1,739 $1,310 $6,216 $5,353
Earnings per common share:
Basic $0.19 $0.15 $0.68 $0.62
Diluted $0.18 $0.14 $0.65 $0.59
Weighted average
outstanding common shares:
Basic 9,179 8,960 9,090 8,700
Diluted 9,749 9,329 9,573 9,054
NOTE: Per share amounts and weighted average outstanding common shares reflect a 5% stock dividend on October 19, 2001, to stockholders of record on October 1, 2001, and a 5-for-4 stock split, paid in the form of a stock dividend on January 19, 2001, to stockholders of record on December 31, 2000. Statements contained in this news release that are not based on historical fact are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are only predictions. Actual events or results may differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks and uncertainties facing the company. Although the company believes that its expectations are based on reasonable assumptions, there can be no assurance that actual results will not differ materially from its expectations. Factors that could cause actual results to differ from expectations include: (i) the ability to increase rates; (ii) the ability to renew existing contracts and enter into new contracts; (iii) contract terminations Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). ; (iv) the ability to recover water quality maintenance expenses; (v) the effect of weather conditions on water conservation and the company's ability to perform billable work; (vi) environmental regulations and contamination testing and removal requirements; (vii) capital expenditures and (viii) other factors referenced in Securities and Exchange Commission filings of the company. |
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