American Water Works Reports Third Quarter 2002 Results; Earnings Hold Steady.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. ) today reported net income to common stock for the third quarter of 2002 was $55 million and resulting earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) were 55 cents. Both net income to common stock and EPS for the quarter were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. the same as the $56 million and 56 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. reported during the same quarter in 2001. Revenue Growth Continues Revenues of $483 million recorded during the third quarter of 2002 were 22% greater than the $395 million realized during the third quarter last year. The Company attributed a major portion of this revenue gain to the addition of customers acquired as a result of its January January: see month. 2002 purchase of the water and wastewater Wastewater is any water that has been adversely affected in quality by anthropogenic influence. It comprises liquid waste discharged by domestic residences, commercial properties, industry, and/or agriculture and can encompass a wide range of potential contaminants and 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 acquisition) and revenues associated with its November November: see month. 2001 acquisition of Azurix Azurix Corp. was a division of Enron Corporation headed by Rebecca Mark-Jusbasche which was formed by purchasing Wessex Water in 1998. Headquartered in Houston, Texas, United States, it was part-floated on the NYSE stock exchange in June 1999, with Enron retaining 35% ownership. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Corp and Azurix Industrials Corp. (Azurix acquisition). The strict state-mandated water use restrictions that were implemented in New Jersey and portions of Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York near the mid-point of the third quarter of 2002 have been moderated but remain in effect. Industrial Water Sales Continue Downward Trend Water sales to industrial customers during the third quarter of 2002 were 12.2 billion gallons compared to the 12.3 billion gallons sold to that group of customers during the same quarter last year. However, industrial water sales during both periods reflect the impact of continued weakness in the general economy. The 31.9 billion gallons of water the Company sold to its industrial customers during first nine months of 2002 was 2 billion gallons less than water sales for the same nine-month period in 2001 and the amount of water sold during both of those nine-month periods was lower than the amount of water sold to industrial customers during the first nine months of either 2000 or 1999. 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. Move Higher Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operating expenses for the third quarter of 2002 increased $89 million, or 36% over costs incurred during the same period in 2001. Expenses associated with the Citizens and Azurix acquisitions contributed significantly to this increase. Since both of these acquisitions were completed after the third quarter of 2001, costs for their operation were not included in operating costs operating costs npl → gastos mpl operacionales incurred during the third quarter last year. Excluding this impact the Company experienced an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 4% increase in total operating costs. Non-operating Business Activities Impact Both Quarters Activities not related to the Company's core businesses impacted financial results during the third quarters of both 2002 and 2001. Expenses associated with obtaining the necessary state regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals for the RWE RWE Rot-Weiss Essen (Germann football club) RWE Ralph Waldo Emerson RWE Rheinisch-Westfälische Elektrizitätswerke (German Power Supplier) RWE Read Write Execute RWE Right Wing Extremist transaction resulted in charges of two cents per share during the third quarter of 2002. Charges associated with negotiating the RWE agreement announced during the third quarter of 2001 were ten cents Ten Cents has several meanings:
adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gains realized from the sale of water assets serving the City of Salisbury The City of Salisbury is a local government area (LGA) located on the northern fringes of Adelaide, South Australia. It has a diverse population of over 110,000 people and encompasses an area of 158km². , Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , and the sale of a portion of the
telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. stock included in the non-water investments from the
National Enterprises, Inc. acquisition. Costs to obtain the necessary
regulatory approvals for the RWE transaction are expected to continue
until the transaction is completed during the first six months of 2003.Communication With Investors The Company previously announced that at 3 PM (Eastern) today it would host a conference call with members of the investment community to discuss its quarterly financial results. Interested parties may listen to the call by logging onto the American Water Works website at www.amwater.com. A telephone replay of that call will be available for one week after 5 PM today and can be accessed from that same website or by dialing 1-800-642-1687 and providing reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 6122028. About American Water Works American Water Works Company is the largest publicly traded US corporation devoted exclusively to the business of water. Its 6,600 associates provide water, wastewater and other related services to 15 million people in 27 states and three Canadian provinces Noun 1. Canadian province - Canada is divided into 12 provinces for administrative purposes province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" . More information can be found on the Company's website. Forward looking statements in this report, 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, 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 that 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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, weather conditions that tend to extremes of temperature or duration; availability, terms and development of capital; business abilities and judgment of personnel; changes in, or the failure to comply with governmental regulations, particularly those affecting the environment and water quality; 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; general economic and business conditions; the ability to satisfy the conditions to closing set forth in the definitive agreement; and other factors described in 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.
For the three and nine months periods ended September 30, American
Water Works Company, Inc., reports unaudited operating results as
follows:
(In thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2002 2001 2002 2001
---- ---- ---- ----
Operating revenues $483,457 $394,956 $1,292,211 $1,075,261
------------------ ----------------------
Operating expenses
Operation and maintenance 242,955 166,890 674,506 478,189
Depreciation and
amortization 57,032 46,819 170,292 136,248
General taxes 35,363 33,049 105,595 98,825
------------------ ----------------------
335,350 246,758 950,393 713,262
------------------ ----------------------
Operating income 148,107 148,198 341,818 361,999
Other income (deductions),
net (54,491) (50,449) (89,466) (143,775)
------------------ ----------------------
Income before income taxes 93,616 97,749 252,352 218,224
Income taxes 38,428 41,972 115,286 89,605
------------------ ----------------------
Income before cumulative
effect of change
in accounting principle 55,188 55,777 137,066 128,619
Cumulative effect of change
in accounting principle - - 2,679 -
------------------ ----------------------
Net income 55,188 55,777 139,745 128,619
Dividends on preferred stock - 146 146 438
------------------ ----------------------
Net income to common stock 55,188 55,631 139,599 128,181
Other comprehensive income,
net of tax (376) (13,285) (1,594) (19,794)
------------------ ----------------------
Comprehensive income $54,812 $42,346 $138,005 $108,387
================== ======================
Net income to common stock $55,188 $55,631 $139,599 $128,181
Merger expenses (1,647) (9,860) (3,380) (9,860)
Gain from sale of New
England operations - 2,930 18,552 2,930
Gain on other
investments - 1,104 13,979 3,158
Loss on write down of
other investments - - (6,697) -
Gain on sale of land - - 9,963 -
Cumulative effect of change
in accounting principle - - 2,679 -
------------------ ----------------------
Net income to common stock -
excluding merger expenses,
non- operating business
activities and cumulative
effect of change in
accounting principle $56,835 $61,457 $104,503 $131,953
================== ======================
Average shares of basic
common stock outstanding 100,062 99,723 100,041 99,287
================== ======================
Earnings per average common
share outstanding
Income before cumulative
effect of change
in accounting principle $0.55 $0.56 $1.37 $1.29
Cumulative effect of
change in accounting
principle - - 0.03 -
------------------ ----------------------
Basic $0.55 $0.56 $1.40 $1.29
================== ======================
Income before cumulative
effect of change
in accounting principle $0.55 $0.56 $1.36 $1.29
Cumulative effect of
change in accounting
principle - - 0.03 -
------------------ ----------------------
Diluted $0.55 $0.56 $1.39 $1.29
================== ======================
Diluted - excluding merger
expenses, non-operating
business activities and
cumulative effect of change
in accounting principle $0.57 $0.62 $1.04 $1.33
================== ======================
For the twelve months periods ended September 30, American Water Works
Company, Inc., reports unaudited operating results as follows:
(In thousands, except per share amounts)
Twelve months ended
September 30,
-------------
2002 2001
---- ----
Operating revenues $1,655,837 $1,407,558
-------------------------
Operating expenses
Operation and maintenance 860,866 628,466
Depreciation and amortization 219,255 180,075
General taxes 136,303 127,434
-------------------------
1,216,424 935,975
-------------------------
Operating income 439,413 471,583
Other income (deductions), net (133,478) (190,924)
-------------------------
Income before income taxes 305,935 280,659
Income taxes 136,005 113,932
-------------------------
Income before cumulative effect of change
in accounting principle 169,930 166,727
Cumulative effect of change in accounting
principle 2,679 -
-------------------------
Net income 172,609 166,727
Dividends on preferred stock 292 1,150
-------------------------
Net income to common stock 172,317 165,577
Other comprehensive income, net (1,145) (39,890)
-------------------------
Comprehensive income $171,172 $125,687
=========================
Net income to common stock $172,317 $165,577
Merger expenses (3,512) (9,860)
Gain from sale of New England operations 18,552 2,930
Gain on other investments 13,979 3,158
Loss on write down of other investments (6,697) -
Gain on sale of land 12,989 994
Cumulative effect of change in accounting
principle 2,679 -
-------------------------
Net income to common stock - excluding
merger expenses, non-operating business
activities and cumulative effect of
change in accounting principle $134,327 $168,355
=========================
Average shares of basic common stock
outstanding 100,029 99,091
=========================
Earnings per average common share outstanding
Income before cumulative effect of change
in accounting principle $1.69 $1.67
Cumulative effect of change in accounting
principle 0.03 -
-------------------------
Basic $1.72 $1.67
=========================
Income before cumulative effect of change
in accounting principle $1.69 $1.67
Cumulative effect of change in accounting
principle 0.03 -
-------------------------
Diluted $1.72 $1.67
=========================
Diluted - excluding merger expenses, non-
operating business activities and
cumulative effect of change
in accounting principle $1.34 $1.70
=========================
For the three, nine and twelve month periods ended September 30,
American Water Works Company, Inc., reports unaudited segment
operating results as follows:
(In thousands)
Regulated
Utility Unregulated Other
Services Services Items Consolidated
-------- -------- ----- ------------
Three months ended
September 30, 2002
Revenues from external
customers $421,065 $62,392 $- $483,457
Intersegment revenues - 1,956 (1,956) -
Income before cumulative
effect of change in
accounting principle 67,531 (3,106) (9,237) 55,188
Net income 67,531 (3,106) (9,237) 55,188
Net income excluding
unusual items 67,538 (3,106) (7,597) 56,835
Three months ended
September 30, 2001
Revenues from external
customers $385,256 $9,700 $- $394,956
Intersegment revenues - 1,635 (1,635) -
Income before cumulative
effect of change in
accounting principle 71,610 (992) (14,841) 55,777
Net income 71,610 (992) (14,841) 55,777
Net income excluding
unusual items 68,680 (992) (6,085) 61,603
Nine months ended
September 30, 2002
Revenues from external
customers $1,129,511 $162,700 $- $1,292,211
Intersegment revenues - 5,612 (5,612) -
Income before cumulative
effect of change in
accounting principle 141,411 (3,658) (687) 137,066
Net income 144,090 (3,658) (687) 139,745
Net income excluding
unusual items 135,747 (7,842) (23,256) 104,649
Nine months ended
September 30, 2001
Revenues from external
customers $1,045,312 $29,949 $- $1,075,261
Intersegment revenues - 4,949 (4,949) -
Income before cumulative
effect of change in
accounting principle 156,795 (2,357) (25,819) 128,619
Net income 156,795 (2,357) (25,819) 128,619
Net income excluding
unusual items 153,865 (2,357) (19,117) 132,391
Twelve months ended
September 30, 2002
Revenues from external
customers $1,460,836 $195,001 $- $1,655,837
Intersegment revenues - 7,643 (7,643) -
Income before cumulative
effect of change in
accounting principle 180,713 (3,663) (7,120) 169,930
Net income 183,392 (3,663) (7,120) 172,609
Net income excluding
unusual items 173,471 (9,295) (29,557) 134,619
Twelve months ended
September 30, 2001
Revenues from external
customers $1,367,686 $39,872 $- $1,407,558
Intersegment revenues - 6,694 (6,694) -
Income before cumulative
effect of change in
accounting principle 201,860 (2,982) (32,151) 166,727
Net income 201,860 (2,982) (32,151) 166,727
Net income excluding
unusual items 197,936 (2,982) (25,449) 169,505
The "other items" include operations of American Water Works Company
and intersegment eliminations.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion