California Water Service(CWT)

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California Water Service(CWT) - 2025 Q1 - Quarterly Report
2025-05-01 21:11
Financial Performance - Net income attributable to California Water Service Group for Q1 2025 was $13.3 million, or $0.22 per diluted share, down from $69.9 million, or $1.21 per diluted share in Q1 2024, representing a decrease of $56.6 million [95]. - Operating revenue for Q1 2025 decreased by $66.7 million, or 24.7%, to $204.0 million compared to $270.7 million in Q1 2024, primarily due to the cumulative adjustment from the delayed approval of the 2021 GRC [96]. - Total operating expenses decreased by $11.3 million, or 5.8%, to $181.6 million in Q1 2025, mainly due to a reduction in income tax expense [97]. - Cash flow from operations for Q1 2025 was $38.4 million, up from $26.5 million in Q1 2024, indicating improved operational efficiency [116]. - Net income for Q1 2025 decreased due to the prior year's $111.8 million operating revenue from the MWRAM and IRMA, which was not repeated in 2025 [117]. Revenue and Rate Changes - The net change in operating revenue for Q1 2025 included a $21.4 million increase from rate changes and a $3.8 million recognition of Palos Verdes Pipeline revenue, offset by an $80.7 million decrease from the Interim Rates Memorandum Account [96]. - Proposed rate changes aim to increase total revenue by $140.6 million (17.1%) in 2026, $74.2 million (7.7%) in 2027, and $83.6 million (8.1%) in 2028 [107]. - Cal Water's proposed Low-Use Water Equity Program aims to decouple revenue from water sales, enhancing affordability for low-use and low-income customers [106]. Expenses and Costs - Water production costs decreased by $1.2 million, or 1.9%, in Q1 2025, primarily due to a decrease in Incremental Cost Balancing Accounts (ICBA) expense [99]. - The company recorded a decrease of $14.5 million in income tax expense for Q1 2025, attributed to lower pre-tax operating income compared to Q1 2024 [103]. - Other operations expenses increased by $1.9 million, or 7.1%, in Q1 2025, primarily due to inflation-related increases in various operational costs [101]. - Depreciation and amortization expenses increased by $3.1 million in Q1 2025 due to utility plant placed in service in 2024 [102]. Capital Investments - Cal Water plans to invest over $1.6 billion in its districts from 2025 to 2027, with approximately $1.3 billion allocated for new capital investments, focusing on replacing aging water pipelines [106]. - Total capital expenditures for 2025 are estimated between $450.0 million and $550.0 million, reflecting ongoing investment in infrastructure [120]. - Utility plant expenditures for the three months ended March 31, 2025, totaled $110.1 million, with an estimated range for 2025 capital expenditures between $450.0 million and $550.0 million [139]. - The company estimates a capital investment of approximately $226.0 million will be required to comply with new PFAS regulations by 2029 [145]. Financing and Cash Flow - Net cash provided by financing activities in Q1 2025 was $65.9 million, compared to $86.6 million in Q1 2024, indicating a decrease in financing activity [121]. - As of March 31, 2025, short-term borrowings amounted to $285.0 million, an increase from $205.0 million at the end of 2024 [126]. - The net receivable balances for IRMA, MWRAM, and related mechanisms were $121.7 million as of March 31, 2025, up from $57.9 million in the previous year [123]. - The company has a syndicated unsecured revolving line of credit of $200.0 million, with $150.0 million available as of March 31, 2025 [137]. Assets and Liabilities - As of March 31, 2025, total assets increased to $4,782,552,000 from $4,712,571,000 as of December 31, 2024, representing a growth of 1.48% [133]. - Current liabilities increased to $527,239,000 as of March 31, 2025, compared to $471,432,000 as of December 31, 2024, reflecting an increase of 11.83% [133]. - Construction work in progress was reported at $378.4 million as of March 31, 2025, indicating ongoing investment in utility infrastructure [140]. Dividends and Shareholder Returns - The quarterly common stock dividend payment was $0.34 per share, up from $0.28 per share for the same period in 2024, reflecting a 21.43% increase [134]. - The second quarter dividend of $0.30 per share was declared, marking the 321st consecutive quarterly dividend [135]. Other Operational Metrics - Average annual groundwater extraction from adjudicated groundwater basins approximates 7.8 billion gallons, accounting for 14.9% of total average annual water supply pumped from wells [142]. - Book value per common share decreased to $27.35 at March 31, 2025, from $27.49 at December 31, 2024, indicating a decline of 0.51% [138]. - Cash contributions to the employee pension plan in Q1 2025 were $2.3 million, with an estimated total contribution of $5.2 million expected for the year [118].
California Water Service(CWT) - 2025 Q1 - Earnings Call Transcript
2025-05-01 16:02
California Water Service Group (CWT) Q1 2025 Earnings Call May 01, 2025 11:00 AM ET Company Participants James P. Lynch - Senior VP, CFO & TreasurerMartin Kropelnicki - Chairman, President & CEODavis Sunderland - Equity Research Associate Conference Call Participants Angie Storozynski - Senior Equity Research AnalystJonathan Reeder - Analyst Operator Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyo ...
California Water Service Group (CWT) Beats Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-01 15:10
Core Viewpoint - California Water Service Group (CWT) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, but down from $1.21 per share a year ago, indicating a 37.50% earnings surprise [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - The quarterly revenue was $203.97 million, surpassing the Zacks Consensus Estimate by 13.24%, compared to $270.75 million in the same quarter last year [2] - The earnings surprise for the previous quarter was 120%, with actual earnings of $0.33 per share against an expected $0.15 [1] Group 2: Stock Performance - California Water Service Group shares have increased by approximately 11.7% since the beginning of the year, contrasting with a -5.3% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $225.05 million, and for the current fiscal year, it is $2.32 on revenues of $951.69 million [7] - The outlook for the Utility - Water Supply industry is favorable, ranking in the top 32% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]
California Water Service(CWT) - 2025 Q1 - Earnings Call Transcript
2025-05-01 15:00
Financial Data and Key Metrics Changes - For Q1 2025, operating revenue was $204 million, compared to $270.7 million in Q1 2024, reflecting a decrease due to interim rate relief recorded in the previous year [8] - Net income attributed to the group was $13.3 million or $0.22 per diluted share, down from $69.9 million or $1.21 per diluted share in Q1 2024 [9] - Adjusted for interim rate relief, Q1 revenue increased by 13% over non-GAAP 2024 revenue of $180.5 million, and net income increased by 225% over non-GAAP income of $4.1 million [10] Business Line Data and Key Metrics Changes - Capital investments during the quarter totaled $110.1 million, consistent with the record quarter reported in Q1 2024 [11] - The company expects annual capital expenditures to increase over the next five years due to ongoing infrastructure needs [12] Market Data and Key Metrics Changes - As of March 31, 2025, the company had $44.5 million in unrestricted cash, $45.7 million in restricted cash, and $315 million available on credit lines, indicating a strong liquidity profile [12] Company Strategy and Development Direction - The company is focused on rate base growth, targeting a compounded annual growth rate of approximately 11.7% [12] - The ongoing greenfield development in Texas is progressing well, with a focus on the South Austin corridor [23] - The company is also evaluating domestic M&A opportunities as a supplemental growth strategy [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the 2021 general rate case, noting that discussions with the California Public Advocates are ongoing [14][15] - The company is managing controllable expenses tightly due to market volatility and inflation, while maintaining a focus on capital execution [22][23] - Management is optimistic about the water supply situation in California, with strong snowpack and reservoir levels above historical averages [20][21] Other Important Information - The Board of Directors approved a quarterly dividend of $0.30 per share, representing a 10.7% increase from the previous year [13] - The company received regulatory approvals for various projects, including the Palos Verdes Peninsula Water Reliability Project, which is the largest in the company's history [17][18] Q&A Session Summary Question: Key points of contention in the California GRC - Management indicated that they cannot disclose specific details due to ongoing settlement discussions but are identifying non-contested areas for submission to the judge [28][30] Question: Comparison of the current GRC to the previous one - Management noted that the current GRC is progressing better than the previous one, with more positive engagement from the commissioner and advocates [36][39] Question: Managing costs amid market volatility - Management stated that it is too early to predict the impact of tariffs and supply chain issues but remains optimistic based on past experiences managing supply constraints [41][42] Question: Drivers behind better-than-expected Q1 results - Management attributed the positive results to effective budget management, a more accurate water mix in the rate case, and higher customer usage [51][55] Question: Potential for a global settlement in the GRC - Management expressed uncertainty about achieving a global settlement but remains hopeful as they proceed with the hearings [60][62]
California Water Service(CWT) - 2025 Q1 - Quarterly Results
2025-05-01 13:15
Financial Performance - Q1 2025 net income attributable to the Group was $13.3 million, or $0.22 per diluted share, a decrease of $56.6 million and $0.99 per share compared to the same period in the prior year[6]. - Operating revenue for Q1 2025 was $204.0 million, a decrease of $66.7 million compared to Q1 2024, but an increase of $23.5 million compared to the non-GAAP operating revenue of $180.5 million for Q1 2024[11]. - Q1 2025 operating expenses were $181.6 million, a decrease of $11.3 million compared to Q1 2024[11]. - Net income attributable to California Water Service Group for Q1 2025 was $13,331,000, down 80.1% from $69,917,000 in Q1 2024[25]. - Adjusted revenue (non-GAAP) for Q1 2025 was $203,973,000, compared to $180,483,000 in Q1 2024, reflecting a 13.0% increase when excluding the 2023 interim rate relief[27]. - Adjusted net income (non-GAAP) for Q1 2025 was $13,331,000, significantly higher than $4,104,000 in Q1 2024[27]. - Basic earnings per share for Q1 2025 was $0.22, a decrease of 81.8% from $1.21 in Q1 2024[25]. - The company reported a net operating income of $22,345,000 for Q1 2025, a decline of 71.4% from $77,894,000 in Q1 2024[25]. Dividends - The Company declared its 321st consecutive quarterly dividend of $0.30 per share, contributing to an expected annual dividend yield of $1.24 per common share[19]. - Dividends per share increased to $0.34 in Q1 2025, up from $0.28 in Q1 2024, representing a 21.4% increase[25]. Capital Investments - Capital investments during Q1 2025 were $110.1 million, slightly ahead of the same period last year[10]. Regulatory Matters - The 2024 California General Rate Case proposes to increase total revenue by $140.6 million, or 17.1%, in 2026, and $74.2 million, or 7.7%, in 2027[12]. - The Company is focused on achieving a timely resolution to the 2024 California GRC, which is critical for infrastructure investment and long-term service reliability[7]. - The 2024 California GRC is progressing on schedule, with evidentiary hearings expected to occur in May 2025[14]. Financial Position - As of March 31, 2025, the Group's cash and cash equivalents were $90.1 million, with $45.7 million restricted[9]. - Total assets increased to $5,257,751,000 as of March 31, 2025, compared to $5,180,283,000 at the end of 2024[24]. - Total current liabilities rose to $604,084,000 in Q1 2025, up from $538,364,000 in Q4 2024, indicating a 12.2% increase[24]. - Long-term debt remained stable at approximately $1,104,373,000 as of March 31, 2025, compared to $1,104,571,000 at the end of 2024[24]. Cost Management - Incremental Cost Balancing Account (ICBA) expense decreased by $9.3 million in Q1 2025[11].
California Water Service Group Reports First Quarter 2025 Results
Globenewswire· 2025-05-01 13:00
Core Viewpoint - California Water Service Group reported its financial results for Q1 2025, highlighting a strong start to the year despite challenges from prior rate relief decisions and ongoing regulatory processes [1][4]. Financial Highlights - Q1 2025 net income attributable to the Group was $13.3 million, or $0.22 per diluted share, a decrease of $56.6 million and $0.99 per share compared to Q1 2024 [6][25]. - Operating revenue for Q1 2025 was $204.0 million, down $66.7 million from $270.7 million in Q1 2024, but up $23.5 million compared to non-GAAP revenue of $180.5 million for Q1 2024 [6][8]. - Operating expenses decreased to $181.6 million in Q1 2025 from $192.9 million in Q1 2024, with water production costs down by $1.2 million [8][25]. Regulatory Activity - The 2024 California General Rate Case (GRC) is progressing on schedule, with ongoing discussions and evidentiary hearings expected in May 2025 [11][13]. - Cal Water proposed to invest over $1.6 billion in infrastructure improvements from 2025-2027, with planned rate increases of 17.1% in 2026, 7.7% in 2027, and 8.1% in 2028 [11][12]. Dividend Information - The Group declared its 321st consecutive quarterly dividend of $0.30 per share, contributing to an expected annual dividend yield of $1.24 per share [18]. - The company has increased its dividend for 58 consecutive years, with a five-year compound annual growth rate of 7.7% [18]. Liquidity and Capital Investment - As of March 31, 2025, the Group had cash and cash equivalents of $90.1 million, with $45.7 million restricted, and a short-term borrowing capacity of $315 million [10]. - Capital investments during Q1 2025 were $110.1 million, slightly ahead of the same period last year [10].
California Water Service Group Board of Directors Declares 321st Consecutive Quarterly Dividend
Globenewswire· 2025-04-30 20:15
Core Points - California Water Service Group declared its 321st consecutive quarterly dividend of $0.30 per common share, payable on May 23, 2025, to stockholders of record as of May 12, 2025 [1] Company Overview - California Water Service Group is the parent company of regulated utilities including California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service, providing water and wastewater services to over 2.1 million people across these states [2]
California Water Service Group Earns Spot on USA Today's 2025 List of America's Climate Leaders
Newsfilter· 2025-04-22 20:15
SAN JOSE, Calif., April 22, 2025 (GLOBE NEWSWIRE) -- As California Water Service Group (Group) (NYSE:CWT) joins others around the world in celebrating Earth Day, it is pleased to announce that is has been named one of "America's Climate Leaders" by USA Today and Statista Inc. The ranking honors organizations that drive real, positive environmental impact, according to Statista, a world-leading statistics portal and industry ranking provider. This ranking recognizes companies in the United States with more t ...
California Water Service Group Earns Spot on USA Today's 2025 List of America's Climate Leaders
GlobeNewswire News Room· 2025-04-22 20:15
SAN JOSE, Calif., April 22, 2025 (GLOBE NEWSWIRE) -- As California Water Service Group (Group) (NYSE: CWT) joins others around the world in celebrating Earth Day, it is pleased to announce that is has been named one of “America’s Climate Leaders” by USA Today and Statista Inc. The ranking honors organizations that drive real, positive environmental impact, according to Statista, a world-leading statistics portal and industry ranking provider. This ranking recognizes companies in the United States with more ...
California Water Service Group Schedules 2025 First-Quarter Earnings Results Announcement and Conference Call
Globenewswire· 2025-04-10 20:05
SAN JOSE, Calif., April 10, 2025 (GLOBE NEWSWIRE) -- California Water Service Group (NYSE: CWT) today announced that its 2025 first-quarter earnings results will be released at 9:00 a.m. ET with its earnings conference call to follow at 11:00 a.m. ET on Thursday, May 1, 2025. All stockholders and interested investors are invited to attend the conference call. To attend, please dial 1-800-715-9871 or 1-646-307-1963 and key in ID# 7963586, or you may access the live audio webcast at https://edge.media-server. ...