Cal Water Announces Best Ever Quarterly Results.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 21, 1998--California Water Service Group (NYSE NYSE See: New York Stock Exchange :CWT cwt 112 pounds avoirdupois weight. ) today reported third quarter 1998 operating results of $0.72 per share compared to $0.62 last year, a $0.10 or 16 percent increase for the quarter. Net income was $9,141,000 compared to $7,860,000 in 1997 on revenue of $62,263,000 this year versus $59,551,000 last year. "Revenue and earnings recorded during the third quarter represent record highs achieved for any quarter in Group's history," Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. W. Foy, Chairman of the Board, said. Foy explained that "the El Nino weather which had constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. water sales and earnings during the first half of the year appears to have run its course. A favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather pattern during the quarter resulted in increased water sales throughout our service territories." Usage by existing customers increased revenue by $1,753,000. Sales to 3,100 new customers added $494,000 and rate increases added $465,000. 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 two percent. Water production costs, which include purchased water, purchased power and pump taxes increased less than one percent. The primary reason for the modest increase was a net decrease in purchased water costs due to wholesale suppliers' rate changes. Other operation expenses increased mainly due to wage and benefit increases that were effective at the start of the year. Income taxes increased due to greater taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. . Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. the regular quarterly dividend of 26-3/4 cents per common share - the 216th consecutive quarterly dividend on common stock - payable November November: see month. 15, 1998, to shareholders of record on November 1, 1998. The regular preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend was also declared. Group also announced an ongoing real estate program designed to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. the value of certain surplus properties. Over the next four years, Group estimates that property transactions totaling $6 million could be completed. In its 1998 annual report, Group indicated that it would evaluate potential business risks and opportunities in Central and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . The assessment has been completed and Group determined that pursuing business opportunities in Central and South America are not warranted based on risk and potential returns. 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 Service Group is the parent company of California Water Service Company and CWS CWS Chicago White Sox CWS College World Series CWS Church World Service CWS Child Welfare Services CWS Canadian Wildlife Service CWS Community Water System (EPA) CWS Canada-Wide Standard CWS Compressed Work Schedule Utility Services. The Company is the largest investor-owned water utility in California and one of the largest in the country. Since 1926, the Company has provided Californians high-quality domestic water service. Its 21 operating districts serve approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.5 million people in 58 California communities. CWS Utility Services is a new company formed to provide nonregulated water related services. The Group's common stock trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CWT. Additional information is available at our Web site at www.calwater.com. -0-
California Water Service Group
Consolidated Statement of Income
In Thousands
Three Months Nine Months Twelve Months
Ended Sept. 30 Ended Sept. 30 Ended Sept. 30
1998 1997 1998 1997 1998 1997
Operating
revenue $ 62,263 $ 59,551 $141,943 $152,192 $185,075 $194,380
Operating expenses:
Operation 36,610 35,971 86,964 89,005 114,404 116,401
Maintenance 2,253 2,560 6,655 6,782 9,193 9,100
Depreciation 3,641 3,435 10,922 10,211 14,381 13,470
Federal
income taxes 4,525 4,017 6,884 9,936 8,212 11,386
State
income taxes 1,137 1,008 1,565 2,436 1,828 2,338
Property and
other taxes 2,094 2,020 5,890 5,783 7,684 7,492
Total
operating
expenses 50,260 49,011 118,880 124,153 155,702 160,187
Net operating
income 12,003 10,540 23,063 28,039 29,373 34,193
Other income and
expenses, net 279 257 632 613 877 739
------ ------ ------ ------ ------ ------
12,282 10,797 23,695 28,652 30,250 34,932
Interest charges:
Interest and
amort. on
long term debt 2,836 2,889 8,508 8,668 11,244 11,474
Other interest 305 48 896 324 1,069 417
----- ----- ----- ----- ------ ------
3,141 2,937 9,404 8,992 12,313 11,891
Net income $ 9,141 $ 7,860 $14,291 $19,660 $17,937 $23,041
Earnings per
share of
common stock $ 0.72 $ 0.62 $ 1.12 $ 1.55 $ 1.41 $ 1.81
Weighted
average shares
outstanding 12,619 12,619 12,619 12,619 12,619 12,617
California Water Service Group
Comparative Consolidated Balance Sheet
Sept. 30, 1998 and 1997
(In Thousands)
1998 1997
ASSETS
Utility plant $670,021 $638,238
Less depreciation 198,838 185,001
Net utility plant 471,183 453,237
Current assets:
Cash and cash equivalents 1,616 934
Accounts receivable 18,341 16,436
Unbilled revenue 8,286 7,982
Materials and supplies 2,193 2,091
Taxes and other prepaid expenses 5,986 6,435
Total current assets 36,422 33,878
Regulatory assets 38,748 37,574
Other deferred assets 4,136 4,332
-------- ------
$550,489 $529,021
CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders' equity:
Common stock $ 44,941 $ 44,941
Retained earnings 123,174 118,845
Total common shareholders' equity 168,115 163,786
Preferred stock 3,475 3,475
Long term debt 139,205 142,153
Total capitalization 310,795 309,414
-------- -------
Current liabilities:
Short-term borrowings 13,000 2,000
Accounts payable 20,923 19,001
Accrued expenses and other
liabilities 23,890 19,517
Total current liabilities 57,813 40,518
Unamortized investment tax credit 3,006 3,086
Deferred income taxes 26,694 24,444
Advances for construction 95,474 95,658
Contributions in aid of construction 44,215 43,409
Regulatory liabilities 12,492 12,492
-------- --------
$550,489 $529,021
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