Cal Water Announces Third Quarter 2004 Results; Board Declares 240th Consecutive Quarterly Dividend.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. -- 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 (NYSE NYSE See: New York Stock Exchange :CWT cwt 112 pounds avoirdupois weight. ) today announced net income of $10.8 million and earnings of $0.59 per share for the third quarter of 2004, compared to net income of $8.6 million and earnings of $0.53 per share in the third quarter of 2003. Revenue for the third quarter increased $8.9 million, or 10%, to $97.1 million. Rate increases added $9.9 million to revenue, while sales to new customers added $1.3 million. Partially offsetting these higher revenues was a 3%, or $2.3 million, decrease in sales to existing customers compared to the same period last year. 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. for the third quarter increased 9%, or $6.9 million. Water production costs increased 3% due to rate increases by wholesale water suppliers. Other operations expenses increased by 14%. For the quarter, the Company experienced unexpected cost increases from higher claims for health benefits and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. . Both of these programs are basically self insured with stop loss insurance coverage for extraordinary claims. In addition, cost increases were incurred to comply with the Sarbanes Oxley Oxley refers to several things: People
"Our third quarter results were good. Although we had some unexpected cost increases for health benefits and workers' compensation claims, net income increased 26% over last year," said President and Chief Executive Officer Peter C. Nelson. "Also, we are very pleased to announce that we have prevailed in our efforts to stop the City of Selma Selma, city (1990 pop. 23,755), seat of Dallas co., S central Ala., on the Alabama River, in a fertile farm area; inc. 1820. Machinery, paper products, construction materials, transportation equipment, furniture, textiles, apparel, dairy products, and lumber are from taking over our Selma water system," Nelson said. At a public hearing on October October: see month. 18, 2004, the Selma City Council voted unanimously to abandon efforts to acquire Cal Water's Selma system. Hundreds of customers made calls, signed petitions, wrote letters, and attended the public hearing to speak on the Company's behalf. The Company will also pay its 240th consecutive dividend. On October 27, 2004, Directors declared a dividend of $0.2825 on common stock. It is payable on November November: see month. 19, 2004, to stockholders of record on November 8, 2004. The regular dividend on Series C 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. was also declared. Investors are invited to listen to the Company's analyst teleconference, which is scheduled for 4:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT / 1:00 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT on October 28, 2004. The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number is 1-866-244-4742 and the ID No. is 558049. A replay is available through January January: see month. 26, 2005, by calling 1-888-266-2081 and entering pass code 558049. California Water Service Group is the parent company of California Water Service Company, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. Water Service Company, 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). Water Service Company, Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. Water Service Company, Inc., 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. Together these companies provide regulated 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. and non-regulated water service to more than 2 million people in 100 California, Washington, New Mexico, and Hawaii communities. 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." This news release contains 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 established by 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 ("Act"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "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. " treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management's judgment about the Company, the water utility industry and general economic conditions. Such words as expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include: governmental and 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. commissions' decisions; changes in regulatory commissions' policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental ; the timeliness of regulatory commissions' actions concerning rate relief; new legislation; the ability to satisfy requirements related to the Sarbanes Oxley Act section 404 and other regulation on internal controls; electric power interruptions; increases in suppliers' prices and the availability of supplies including water and power; fluctuations in interest rates; changes in environmental compliance and water quality requirements; acquisitions and our ability to successfully integrate acquired companies; the ability to successfully implement business plans; changes in customer water use patterns; the impact of weather on water sales and operating results; access to sufficient capital on satisfactory terms; civil disturbances Group acts of violence and disorder prejudicial to public law and order. See also domestic emergencies. or terrorist threats or acts, or apprehension The seizure and arrest of a person who is suspected of having committed a crime. A reasonable belief of the possibility of imminent injury or death at the hands of another that justifies a person acting in Self-Defense against the potential attack. about the possible future occurrences of acts of this type; the involvement of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in war or other hostilities hos·til·i·ty n. pl. hos·til·i·ties 1. The state of being hostile; antagonism or enmity. See Synonyms at enmity. 2. a. A hostile act. b. hostilities Acts of war; overt warfare. ; restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph. The Company assumes no obligation to provide public updates of forward-looking statements. Additional information is available at our Web site at www.calwatergroup.com.
CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited
September December
(In thousands, except per share data) 30, 31,
2004 2003
----------- -----------
ASSETS
Utility plant:
Utility plant $1,124,938 $1,078,975
Less accumulated depreciation and amortization 337,766 319,477
----------- -----------
Net utility plant 787,172 759,498
----------- -----------
Current assets:
Cash and cash equivalents 31,322 2,856
Customer receivables 23,950 18,434
Other receivables 4,881 5,125
Unbilled revenue 12,906 8,522
Materials and supplies 3,276 2,957
Taxes and other prepaid expenses 5,458 5,609
----------- -----------
Total current assets 81,793 43,503
----------- -----------
Regulatory assets 55,398 53,326
Other assets 18,571 16,708
----------- -----------
$942,934 $873,035
=========== ===========
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock, $.01 par value $183 $169
Additional paid-in capital 130,647 93,748
Retained earnings 158,333 150,908
Accumulated other comprehensive loss (301) (301)
----------- -----------
Total common stockholders' equity 288,862 244,524
Preferred stock 3,475 3,475
Long-term debt, less current maturities 271,895 272,226
----------- -----------
Total capitalization 564,232 520,225
----------- -----------
Current liabilities:
Current maturities of long-term debt 857 904
Short-term borrowings - 6,454
Accounts payable 26,779 23,776
Accrued expenses and other liabilities 37,373 32,430
----------- -----------
Total current liabilities 65,009 63,564
Unamortized investment tax credits 2,925 2,925
Deferred income taxes 50,182 38,005
Regulatory and other liabilities 37,967 35,835
Advances for construction 129,008 121,952
Contributions in aid of construction 93,611 90,529
Commitments and contingencies - -
----------- -----------
$942,934 $873,035
=========== ===========
CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Unaudited
(In thousands, except per share data)
September September
For the three months ended: 30, 30,
2004 2003
--------- ---------
Operating revenue $97,104 $88,197
--------- ---------
Operating expenses:
Operations 62,456 58,398
Maintenance 3,640 3,172
Depreciation and amortization 6,518 5,830
Income taxes 7,050 5,587
Property and other taxes 2,942 2,691
--------- ---------
Total operating expenses 82,606 75,678
--------- ---------
Net operating income 14,498 12,519
--------- ---------
Other income and expenses:
Non-regulated income, net 650 623
Gain on sale of non-utility property 6 24
--------- ---------
Total other income and expenses 656 647
--------- ---------
Interest expense:
Interest expense 4,615 4,879
Less capitalized interest 250 300
--------- ---------
Total interest expense 4,365 4,579
--------- ---------
Net income $10,789 $8,587
========= =========
Earnings per share
Basic $0.59 $0.53
========= =========
Diluted $0.59 $0.53
========= =========
Weighted average shares outstanding
Basic 18,345 16,209
========= =========
Diluted 18,360 16,222
========= =========
Dividends per share of common stock $0.28250 $0.28125
========= =========
CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Unaudited
(In thousands, except per share data)
September September
For the nine months ended: 30, 30,
2004 2003
--------- ---------
Operating revenue $246,189 $207,502
--------- ---------
Operating expenses:
Operations 159,404 141,851
Maintenance 9,853 9,488
Depreciation and amortization 19,557 17,428
Income taxes 14,852 8,348
Property and other taxes 8,551 7,694
--------- ---------
Total operating expenses 212,217 184,809
--------- ---------
Net operating income 33,972 22,693
--------- ---------
Other income and expenses:
Non-regulated income, net 1,773 1,792
Gain on sale of non-utility property 7 1,535
--------- ---------
Total other income and expenses 1,780 3,327
--------- ---------
Interest expense:
Interest expense 14,013 14,826
Less capitalized interest 550 1,210
--------- ---------
Total interest expense 13,463 13,616
--------- ---------
Net income $22,289 $12,404
========= =========
Earnings per share
Basic $1.27 $0.79
========= =========
Diluted $1.27 $0.79
========= =========
Weighted average shares outstanding
Basic 17,418 15,528
========= =========
Diluted 17,433 15,539
========= =========
Dividends per share of common stock $0.84750 $0.84375
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion