Cal Water Announces Third Quarter Earnings.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. 27, 1999-- 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 reported third quarter 1999 operating results of $0.62 per share compared to the $0.72 earned in last year's record quarter. Net income was $7,867,000 compared to $9,141,000 in 1998 on revenue of $62,957,000 this year versus $62,263,000 last year. For the twelve months ending September September: see month. 30, earnings per share were $1.58 compared to $1.41 last year. "While operating results achieved during this year's third quarter did not exceed those recorded in last year's record setting quarter, we were encouraged by the higher earnings posted for the twelve-month period" said 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. Last year's third quarter saw all time record results for any quarter in Group's history. Foy explained that slightly cooler temperatures this year contributed to a decline in revenue from existing customers of $1,034,000. However, offsetting the decline was additional revenue from rate increases totaling $1,198,000 and sales to 3,900 new customers of $530,000. 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 four percent. More than half of the increase resulted from higher water production costs that include purchased water, purchased power and pump taxes. Increased wholesale water suppliers' rates were primarily responsible for the water production cost increases. The largest rate increases were experienced in the three San Francisco Peninsula The San Francisco Peninsula in California separates the San Francisco Bay from the Pacific Ocean. On its northern tip is the city of San Francisco. On its southern end is part of Santa Clara County, including the cities of Palo Alto, Los Altos, and Mountain View. districts where rates rose 37 percent. Other operations expense increased mainly due to wage and benefit increases that were effective at the start of the year. Income taxes declined due to lower 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. . Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. interest expense increased due to the issuance of $20 million of senior notes in February February: see month. . During the quarter all 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. bank borrowings were repaid resulting in a decline in other interest expense. 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 $0.27125 per common share - the 220th consecutive quarterly dividend on common stock - payable November November: see month. 15, 1999, to shareholders of record on November 1, 1999. 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. In September, Group announced the acquisition of two private water utilities serving approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 14,000 customers in the state of 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. . A new subsidiary, Washington Water Service Company which is the largest investor owned water utility in the state, was formed to operate the two systems. California Water Service Group is the parent company of California Water Service Company, 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 and Washington Water Service Company serving approximately 1.5 million people in 60 California and Washington communities. Group is the largest investor owned water utility in the western states. CWS Utility Services provides nonregulated water related services including water system operation and billing. 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. More information may be found at www.calwater.com. -0-
CALIFORNIA WATER SERVICE GROUP
Comparative Consolidated Balance Sheet - Unaudited
September 30, 1999 and 1998
(in Thousands)
1999 1998
---- ----
ASSETS
Utility Plant $707,241 $670,021
Less depreciation and amortization 213,952 198,838
-------- --------
Net utility plant 493,289 471,183
Current assets:
Cash & cash equilavents 3,300 1,616
Receivables 18,203 18,341
Unbilled revenue 8,029 8,286
Materials and supplies 2,097 2,193
Taxes and other prepaid expenses 6,224 5,986
-------- --------
Total current assets 37,853 36,422
Regulatory assets 40,168 38,748
Other deferred assets 4,063 4,136
-------- --------
$575,373 $550,489
======== ========
CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders' equity:
Common stock $ 44,941 $ 44,941
Retained earnings 129,439 123,174
-------- --------
Total common shareholders' equity 174,380 168,115
Preferred stock 3,475 3,475
Long-term debt 156,345 138,585
-------- --------
Total capitalization 334,200 310,175
Current liabilities:
Short-term borrowings 0 13,000
Accounts payable 24,422 20,923
Accrued expenses and other liabilities 28,160 24,510
-------- --------
Total current liabilities 52,582 58,433
Unamortized investment tax credit 2,924 3,006
Deferred income taxes 28,464 26,694
Advances for construction 98,246 95,474
Contributions in aid of construction 46,065 44,215
Regulatory liabilities 12,892 12,492
-------- --------
$575,373 $550,489
======== ========
CALIFORNIA WATER SERVICE GROUP
Consolidated Statement of Income -Unaudited Error
In thousands, except per share data
Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
1999-09-30
1999 1998 1999 1998
9 Nine
---- ---- ---- ----
Operating revenue $62,957 $62,263 $153,317 $141,943
------- ------- ------- -------
Operating expenses:
Operations 39,029 36,610 95,845 86,964
Maintenance 2,263 2,253 6,611 6,655
Depreciation and amortization 3,808 3,641 11,646 10,922
Federal income taxes 3,965 4,525 7,890 6,884
State income taxes 960 1,137 1,750 1,565
Property and other taxes 2,114 2,094 5,983 5,890
------ ------ ------ ------
Total operating expenses 52,139 50,260 129,725 118,880
------ ------ ------- -------
Net operating income 10,818 12,003 23,592 23,063
Other income and expenses, net 281 279 2,172 632
------ ------ ------- -------
11,099 12,282 25,764 23,695
------ ------ ------- -------
Interest charges:
Long-term debt interest 3,163 2,836 9,182 8,508
Other interest 69 305 623 896
------ ------ ------ ------
3,232 3,141 9,805 9,404
------ ------ ------ ------
Net income $7,867 $9,141 $15,959 $14,291
====== ====== ====== ======
Basic earnings per
share of common stock $0.62 $0.72 $1.26 $1.12
$ 0.62 $ 0.72
$ 1.26 $ 1.13 $ 1.59
$ 1.42
====== ====== ====== ======
============ ============
============ ============ ===========
============
Weighted average
shares outstanding 12,619 12,619 12,619 12,619
====== ====== ====== ======
CALIFORNIA WATER SERVICE GROUP
Consolidated Statement of Income -Unaudited Error
In thousands, except per share data
Twelve Months
Ended Sep 30
1999 1998
Operating revenue $197,647 $185,075
------------- --------------
Operating expenses:
Operations 123,135 114,404
Maintenance 8,986 9,193
Depreciation and amortization 15,287 14,381
Federal income taxes 9,633 8,212
State income taxes 2,107 1,828
Property and other taxes 7,896 7,684
------------- --------------
Total operating expenses 167,044 155,702
Net operating income 30,603 29,373
Other income and expenses, net 2,307 877
------------- --------------
32,910 30,250
------------- --------------
Interest charges:
Long-term debt interest 11,934 11,244
Other interest 913 1,069
------------- --------------
12,847 12,313
------------- --------------
Net income $20,063 $17,937
============= ==============
Basic earnings per
share of common stock $1.58 $1.41
============= ==============
Weighted average
shares outstanding 12,619 12,619
============= ==============
CALIFORNIA WATER SERVICE GROUP
Third Quarter 1999 Statistical Data
1999 1998 Change Percent
---- ---- ------ -------
Customers at end of quarter 386,110 382,246 3,864 1%
Consumption per
metered customer (ccf) 10,493 10,451 42 0%
Revenue per customer $ 163.24 $ 162.99 $ 0.25 0%
Source of change in revenue from last year
Usage by existing customers $(1,034,000)
Rate changes 1,199,000
New customers 530,000
-------
Total increase $ 695,000
Water production
(millions of gallons) 37,565 37,714 (149) 0%
Water production costs
Purchased water $ 18,858,000 17,764,000 1,094,000 6%
Purchased power 5,192,000 4,794,000 398,000 8%
Pump taxes 1,863,000 1,746,000 117,000 7%
---------- ---------- --------
Total water production costs 25,913,000 24,304,000 1,609,000 7%
Source of supply
Purchased water 45% 46%
Pumped from wells 55% 54%
Surface supply 0% 0%
-- --
100% 100%
Book value at end of quarter $ 13.82 $ 13.32 $ 0.50 4%
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