American Water Works Company, Inc. Reports Third Quarter Earnings.Business Editors VOORHEES Voorhees may mean: Places
American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Water Works Company, Inc. (NYSE NYSE See: New York Stock Exchange :AWK (Aho Weinberger Kernighan) A Unix programming utility developed in 1977 by Alfred Aho, Peter Weinberger and Brian Kernighan. Due to its unique pattern-matching syntax, awk is often used in data retrieval and data transformation. ) reported today net income to common of $49.7 million and earnings of 51 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the third quarter 2000. This compares to third quarter 1999 results of $55.9 million in net income to common and earnings of 58 cents per share, prior to recording one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs associated with the acquisition of National Enterprises Inc. (NEI NEI National Eye Institute (NIH) NEI Nuclear Energy Institute NEI National Emission Inventory NEI Not Enough Information NEI Netherlands East Indies NEI Nuevos Estados Independientes ). With the NEI acquisition costs, net income to common was $51.9 million and earnings were 54 cents per share for the third quarter 1999. "Earnings for the third quarter 2000 were in line with our earlier expectations," said Ellen Wolf, the Company's chief financial officer. "As we predicted, abnormal weather conditions and a three cents per share one-time charge to income stemming from a regulatory decision in Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. had an adverse impact on our third
quarter earnings. However, in an industry such as ours, quarterly
results are not indicative of the long-term Long-termThree or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value of the Company," Ms. Wolf added. The Company reported that revenues for the quarter increased three percent to $364 million from $354 million for the same quarter in 1999, even though sales volumes for the quarter were more than five percent less than sales volumes for the same period last year. Rate increases implemented since September 30, 1999 and contract management revenues from American Water Services (AWS AWS Amazon Web Services AWS American Welding Society AWS Advanced Warning System AWS Advanced Wireless Services AWS Automatic Weather Station AWS Alien Workshop (skateboard company) AWS Austria Wirtschaftsservice GmbH ) helped to offset the decline in sales volumes. The Company also pointed to improvement in pre-tax operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and per customer operation and maintenance (O&M) expenses that exclude AWS's revenue and expenses, and last year's one-time charges stemming from the City of Chattanooga's condemnation Condemnation bell, book, and candle symbols of Catholic excommunication rite. [Christianity: Brewer Note-Book, 85] Bridge of Sighs passage from Doge’s court to execution chamber in Renaissance Venice. [Ital. Hist. effort, as evidence that its business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point remain strong despite this summer's unusual weather. Capital expenditures increased net plant by $310 million since September 30, 1999, and contributed to increases in depreciation, general taxes, and interest. In addition to the weather, third quarter earnings were impacted by an order issued by the Missouri Public Utilities Commission that provides $10 million in additional annual revenues but denies recognition of certain investments the Company deemed essential to providing reliable water service. The Company has appealed the Commission's decision. The Company also announced the Office of Ratepayer rate·pay·er n. One that pays rates: utility ratepayers. ratepayer Noun a person who pays local rates on a building Noun 1. Advocates of 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 ) recently issued reports opposing the Company's acquisitions of SJW SJW St John's Wort SJW Shijiazhuang, China - Shijiazhuang (Airport Code) SJW Synchronization Jump Width Corp. (SJW) and of the 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). water and wastewater assets of Citizens Communications Citizens Communications is the parent company of Frontier Telephone, providing telephone and internet access in 24 states. The company headquarters are located at 3 High Ridge Park in Stamford, Connecticut. Company (Citizens). The Company strongly disagrees with those reports and is preparing to file rebuttal rebuttal n. evidence introduced to counter, disprove or contradict the opposition's evidence or a presumption, or responsive legal argument. testimony with the CPUC contesting the reports' analyses and conclusions. The Company continues to work to complete those acquisitions as scheduled, but recognizes there is no assurance approval will be obtained on a timely basis, if at all. During the third quarter the Ohio Public Utility Commission approved the Company's acquisition of the Ohio water and wastewater assets of Citizens. However, consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the Citizens' transaction requires approval of public utility commissions in each of the six states in which Citizens' water and wastewater assets are located. As previously announced, a conference call to review third quarter financial results with analysts will be conducted at 3:00 PM (EST EST electroshock therapy. EST abbr. electroshock therapy ) today, and will be simultaneously broadcast from the Company's website. Interested individuals may listen to the call by visiting http://www.amwater.com. An archived copy of that web broadcast and the scripted portion of the call will remain on the Company's website until November 13, 2000. For the three, nine and twelve month periods ended September 30, American Water Works Company, Inc. reports unaudited consolidated operating results as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------------------------------
2000 1999 2000 1999
(In thousands, except
per share amounts)
----------------------------------------------------------------------
Operating revenues $364,125 $353,578 $1,018,293 $949,969
----------- ----------- ----------- ----------
Operating expenses
154,400 148,045 453,028 422,303
Operation and
maintenance
Depreciation and
Amortization 41,648 38,116 122,061 111,850
General taxes 31,942 31,074 96,610 93,247
----------- ----------- ----------- ----------
227,990 217,235 671,699 627,400
----------- ----------- ----------- ----------
Operating income 136,135 136,343 346,594 322,569
----------- ----------- ----------- ----------
Other income
(deductions), net (51,916) (42,417) (142,662) (124,086)
----------- ----------- ----------- ----------
Income before
income taxes 84,219 93,926 203,932 198,483
Income taxes 33,488 36,986 80,979 79,187
----------- ----------- ----------- ----------
Net income 50,731 56,940 122,953 119,296
Dividends on
preferred stock 996 996 2,988 2,988
----------- ----------- ----------- ----------
Net income to
common stock -
before one-time
merger costs 49,735 55,944 119,965 116,308
----------- ----------- ----------- ----------
Merger costs, net
of tax -- 4,093 -- 12,905
----------- ----------- ----------- ----------
Net income to
common stock -
post merger 49,735 51,851 119,965 103,403
----------- ----------- ----------- ----------
Other comprehensive
income, net (23,856) 7,412 (47,062) 45,074
----------- ----------- ----------- ----------
Comprehensive income $ 25,879 $ 59,263 $ 72,903 $148,477
=========== =========== =========== =========
Average shares of
basic common stock
outstanding 98,139 96,672 97,944 96,309
----------- ----------- ----------- ----------
Basic and diluted
earnings per
common share on
average shares
outstanding (a) $ .51 $ .54 $ 1.22 $ 1.07
----------- ----------- ----------- ----------
Basic and diluted
earnings per
common share on
average shares
outstanding
excluding one-time
merger costs (a) $ .51 $ .58 $ 1.22 $ 1.21
----------- ----------- ----------- ----------
Twelve Months Ended
September 30,
--------------------------
2000 1999
--------------------------
Operating revenues $ 1,329,181 $ 1,250,046
----------- -----------
Operating expenses
597,673 563,197
Operation and maintenance
Depreciation and Amortization 161,852 148,529
General taxes 126,037 121,760
----------- -----------
885,562 833,486
----------- -----------
Operating income 443,619 416,560
----------- -----------
Other income (deductions), net (187,286) (162,921)
----------- -----------
Income before income taxes 256,333 253,639
Income taxes
100,822 100,551
----------- -----------
Net income 155,511 153,088
Dividends on preferred stock 3,984 3,984
----------- -----------
Net income to common stock -
before one-time merger costs 151,527 149,104
----------- -----------
Merger costs, net of tax -- 13,154
----------- -----------
Net income to common stock -
post merger 151,527 135,950
----------- -----------
Other comprehensive income, net (32,813) 55,383
----------- -----------
Comprehensive income $ 118,714 $ 191,333
=========== ===========
Average shares of basic common stock
outstanding 97,612 96,152
----------- -----------
Basic and diluted earnings per common
share on average shares outstanding (a) $ 1.55 $ 1.41
----------- -----------
Basic and diluted earnings per common
share on average shares outstanding
excluding one-time merger costs (a) $ 1.55 $ 1.55
----------- -----------
(a) Excludes comprehensive income
This release may contain certain forward looking statements, including, without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, which are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the U.S. 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 forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These factors include, among others, the following: the success of pending applications for rate increases, inability to obtain, or to meet conditions imposed for, regulatory approval of pending acquisitions; general economic and business conditions; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; changes in business strategy or plans; quality of management; availability, terms and development of capital; business abilities and judgement of personnel; changes in, or the failure to comply with governmental regulations, particularly those affecting the environment and water quality; and other factors described in the filings of the Company with the SEC. The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. |
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