American States Water Company Announces Earnings for the Three and Six Months Ended June 30, 2005.SAN DIMAS Dimas can refer to:
See: New York Stock Exchange :AWR AWR Automatic Workload Repository (Oracle database) AWR Applied Wave Research (El Segundo, CA) AWR Adventist World Radio AWR Advanced Warranty Replacement AWR American Warmblood Registry ) today reported basic and fully 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. earnings of $0.34 per share for the quarter ended June 30, 2005 as compared to $0.44 per share for the quarter ended June 30, 2004. Basic and fully diluted earnings are $0.57 and $0.56 per share, respectively, for the six months ended June 30, 2005 as compared to basic and fully diluted earnings of $0.52 and $0.51 per share, respectively, for the six months ended June 30, 2004. Second Quarter 2005 Results Total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of $60.5 million for the second quarter of 2005 increased by $1.2 million compared to revenues of $59.3 million recorded in the second quarter of 2004. Water revenues reflect rate increases effective in 2004 and 2005 covering almost all water customers at AWR's subsidiary, Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, Water Company ("SCW SCW Spanish Civil War SCW Syktyvkar (Russia) SCW Supercritical Water SCW Supercritical Water Oxidation SCW SEABEE Combat Warfare SCW Shibuya Custom Works (Western Arms Airsoft) SCW Sucking Chest Wound "). The effect of the rate increases, which contributed $2.7 million in increased revenues, was offset by a decrease of 12.2% in billed water consumption resulting from extremely wet weather conditions in southern California during the winter and spring of 2005. The lower water consumption, as compared to the same period last year, negatively impacted earnings for the quarter by approximately $0.07 per share. Electric revenues increased 11.8% to $6.1 million due to rate increases related to the 8.4 MW generation facility and a 3.2% increase in consumption. Other operating revenues increased by 167.7% to $854,000 compared to $319,000 for the quarter ended June 30, 2004 due primarily to additional revenues associated with the operation of the water and wastewater systems at Fort Bliss Fort Bliss, U.S. army post, 1,122,500 acres (454,300 hectares), W Tex., E of El Paso; est. 1849 and named for Col. William Bliss, Gen. Zachary Taylor's adjutant in the Mexican War. Originally strategically located near the only ice-free pass through the Rocky Mts. , located near El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. , Texas that commenced on October 1, 2004. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by 2.7% to $50.0 million for the quarter ended June 30, 2005 as compared to the $48.7 million recorded for the same period in 2004. The increase in operating expenses reflects: (i) a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. decision 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, ("CPUC CPUC California Public Utilities Commission CPUC Current Procurement Unit Cost ") that resulted in a $5.7 million pre-tax gain on sale of water rights during the second quarter of 2004 with no corresponding gain in 2005, (ii) increased groundwater assessments due to increased assessment rates, (iii) increased administrative and general expenses due to increased pension and benefits, labor costs and various miscellaneous expenses, all of which are offset by a decrease in outside services costs related to new business development, and (iv) increased depreciation and amortization expense. These increases were partially offset primarily by decreases in: (i) purchased water due to a decline in customer demand, (ii) the provision for supply-cost balancing account as a result of the initial recording of the supply cost memorandum accounts in May 2004 and the recording of recently authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: under-collection in June 2005, and (iii) an unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on purchased power contracts. Other income was a loss of $52,000 as compared to income of $538,000 for the three months ended June 30, 2004. The higher income for this period in 2004 was largely due to a reduction in SCW's estimate of customer refunds associated with lease revenues from the City of Folsom in June 2004. Interest charges increased 6.8% to $4.7 million compared to $4.4 million for the quarter ended June 30, 2004 due primarily to increases in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings and higher interest rates. Year to Date 2005 Results The increase in earnings for the first six months of 2005 in comparison to the prior year reflects the recognition of a pre-tax unrealized gain on purchased power contracts of $3.5 million due to increasing energy prices. This unrealized gain added approximately $0.12 per share to earnings for the six months ended June 30, 2005 compared to $0.02 per share for the prior year. Additionally, rate increases in most of SCW's service areas contributed to higher water revenues, offset by decreases in water consumption due to changes in weather. Lower water consumption due to more precipitation precipitation, in chemistry precipitation, in chemistry, a process in which a solid is separated from a suspension, sol, or solution. In a suspension such as sand in water the solid spontaneously precipitates (settles out) on standing. than last year negatively impacted earnings by approximately $0.12 per share for the first six months of 2005. Total operating revenues of $110.3 million for the six months ended June 30, 2005 increased by $4.3 million compared to operating revenues of $106.0 million recorded for the six months ended June 30, 2004. Of the total increase in revenues, water revenues increased by 3% to $95.0 million compared to $92.3 million as of June 30, 2004 due to rate increases in most of SCW's customer service areas, offset by a 10% decrease in billed water consumption during the first half of 2005, as compared to the same period of 2004, due to near record rainfall in southern California. Electric revenues increased by 3.7% due to a slight increase in consumption and a rate increase related to the 8.4 MW natural gas-fueled generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. facility. Other operating revenues increased by $1.1 million due primarily to the additional revenues associated with the operation of the water and wastewater systems at Fort Bliss, located near El Paso, Texas that commenced on October 1, 2004. Total operating expenses increased to $91.3 million for the six months ended June 30, 2005 as compared to the $89.8 million recorded for the same period in 2004, reflecting: (i) a $5.7 million pre-tax gain on sale of water rights during the second quarter of 2004 with no corresponding gain in 2005, as discussed previously, (ii) an increase in administrative and general expenses resulting from increased outside services primarily related to Sarbanes-Oxley compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). and increased labor, pension and benefit costs, (iii) higher depreciation costs, (iv) higher taxes on income, and (v) an increase in the groundwater production assessments. These increases were partially offset by: (i) a decrease in purchased water supply costs and the cost of power for pumping, both reflecting a reduction in consumption, (ii) a $3.3 million decrease in the provision for supply-cost balancing accounts as discussed in the quarterly result, (iii) an increase of approximately $3.0 million in the unrealized gain on purchased power contracts discussed earlier, and (iv) a net gain of $760,000 recorded in the first quarter of 2005 on a settlement reached for the removal of wells at the Chaparral chaparral (chăpərăl`), type of plant community in which shrubs are dominant. It occurs usually in regions having from 10 to 20 in. (25–50 cm) of rainfall annually and with a Mediterranean-type climate. City Water Company ("CCWC CCWC Club Crew World Championships CCWC Certain Conventional Weapons Convention CCWC Castle Crown Wilderness Coalition (Alberta, Canada) CCWC Can't Cook Won't Cook CCWC Coffee Creek Watershed Conservancy ") subsidiary. Other income was a loss of $101,000 as compared to income of $455,000 for the six months ended June 30, 2004. This was primarily due to a reduction in SCW's estimate of customer refunds associated with lease revenues from the City of Folsom in June 2004. Interest charges increased to $9.4 million for the six months ended June 30, 2005 as compared to $8.7 million for the six months ended June 30, 2004. The increase is due primarily to increases in short-term borrowings and interest rate increases. In addition, during the first quarter of 2004, SCW recorded the recovery of carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. of approximately $168,000 on the costs incurred in the water quality Order Instituting Investigation matter authorized by the CPUC in March 2004. There was no corresponding recovery in 2005. Other Certain matters discussed in this news release with regard to the Company's expectations may be 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. 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 Form 10-Q See 10-Q. and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. Q2 2005 Earnings Release Conference Call The Company will host a conference call today, Thursday, August 4, 2005 at 10:00 a.m. Pacific Time ("PT"), during which management will be making a brief presentation focusing on the Company's second quarter results, strategies, and operating trends. Interested parties can listen to the conference call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by logging on to www.aswater.com. The call will also be recorded and replayed beginning Thursday, August 4, 2005 at 1:00 p.m. PT and will run through Thursday, August 11, 2005. The dial-in number for the audio replay is (888) 203-1112, Passcode 4662163. American States Water Company is the parent company of Southern California Water Company, American States Utility Services, Inc. and Chaparral City Water Company. Through its subsidiaries, AWR provides water service to 1 out of 30 Californians located within 75 communities throughout 10 counties in Northern, Coastal and Southern California and to approximately 12,780 customers in the city of Fountain Hills, Arizona Fountain Hills is a town in Maricopa County, Arizona, USA. It incorporated as an independent municipality in 1989, after spending most of its history as a master planned development on the far northern end of (now neighboring) Scottsdale. and portions of Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " . The Company, through its Bear Valley Electric Division of SCW, distributes electricity to approximately 22,787 customers in the Big Bear recreational area of 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). . In addition, the Company contracts, either directly or through its wholly-owned subsidiary, American States Utility Services, Inc., with various municipalities, the U.S. Government and private entities to provide various water and wastewater services, including billing and meter reading, water marketing and operation and maintenance of water and wastewater systems.
American States Water Company
Consolidated
Comparative Condensed Balance Sheets
June 30, December 31,
(in thousands) 2005 2004
--------------------------------------------------------- ------------
(Unaudited)
Assets
Utility Plant-Net $687,424 $664,165
Other Property and Investments 21,697 21,717
Current Assets 49,743 53,024
Regulatory and Other Assets 70,936 71,371
----------------------------------------------------------------------
$829,800 $810,277
----------------------------------------------------------------------
Capitalization and Liabilities
Capitalization $482,963 $480,367
Current Liabilities 92,377 86,336
Other Credits 254,460 243,574
----------------------------------------------------------------------
$829,800 $810,277
----------------------------------------------------------------------
Condensed Statements of Income
Three Months Ended Six Months Ended
(in thousands, except per share June 30, June 30,
amounts)
-------------------------------------------------- -------------------
2005 2004 2005 2004
-------------------------------------------------- -------------------
(Unaudited) (Unaudited)
Operating Revenues $60,496 $59,344 $110,290 $105,995
------------------ -------------------
Operating Expenses:
Operations $23,682 $27,974 $45,060 $49,881
Unrealized (gain) loss on
purchased power contracts (459) 76 (3,474) (481)
Gain on sale of water rights - (5,675) - (5,675)
Gain on settlement for
removal of wells - - (760) -
Administrative and general
expenses 11,495 11,497 21,624 20,576
Maintenance 2,522 2,609 4,988 4,936
Depreciation and amortization 5,696 5,073 11,331 10,250
Taxes on income 4,808 5,086 8,024 6,028
Property and other taxes 2,221 2,105 4,493 4,331
------------------ -------------------
Total operating expenses $49,965 $48,745 $91,286 $89,846
Net operating income $10,531 $10,599 $19,004 $16,149
Other Income (Loss), net (52) 538 (101) 455
Interest Charges 4,744 4,427 9,404 8,748
-------------------------------------------------- -------------------
Net Income $5,735 $6,710 $9,499 $7,856
-------------------------------------------------- -------------------
Earnings Available for Common
Shareholders $5,735 $6,710 $9,499 $7,856
-------------------------------------------------- -------------------
Weighted Average Shares
Outstanding 16,773 15,248 16,769 15,236
-------------------------------------------------- -------------------
Earnings Per Common Share $0.34 $0.44 $0.57 $0.52
-------------------------------------------------- -------------------
Weighted Average Diluted Shares 16,834 15,269 16,821 15,265
-------------------------------------------------- -------------------
Earnings Per Diluted Share $0.34 $0.44 $0.56 $0.51
-------------------------------------------------- -------------------
Dividends Paid Per Common Share $0.225 $0.221 $0.450 $0.442
-------------------------------------------------- -------------------
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion