California Water Service(CWT) - 2020 Q1 - Quarterly Report

Financial Performance - Operating revenue for the three months ended March 31, 2020, was $125,563,000, a decrease of 0.4% from $126,111,000 in the same period of 2019[14]. - Net loss for the three months ended March 31, 2020, was $20,307,000, compared to a net loss of $7,640,000 in the same period of 2019, representing a significant increase in losses[14]. - The company reported a basic loss per share of $0.42 for the three months ended March 31, 2020, compared to a loss of $0.16 per share in the same period of 2019[14]. - The net loss for Q1 2020 was $20.3 million, compared to a net loss of $7.6 million in Q1 2019, indicating a significant increase in losses[63]. - The company reported a net loss of $20,307,000 in Q1 2020, compared to a net loss of $7,640,000 in Q1 2019, indicating a worsening financial position[104]. Revenue and Expenses - Total operating expenses for Q1 2020 were $132,486,000, compared to $125,635,000 in Q1 2019, indicating an increase of about 5.5%[104]. - Revenue from contracts with customers increased to $134,833 for the three months ended March 31, 2020, compared to $117,410 in the same period of 2019, reflecting a growth of 14.8%[32]. - Residential customer revenue rose to $92,544 for the three months ended March 31, 2020, up from $84,259 in 2019, marking an increase of 9.5%[32]. - Non-regulated revenue decreased to $3,827 for the three months ended March 31, 2020, down from $4,901 in the same period of 2019, a decline of 21.9%[40]. - Water production costs increased to $53,976,000 in Q1 2020 from $45,592,000 in Q1 2019, representing an increase of approximately 18.4%[104]. Assets and Liabilities - Total assets as of March 31, 2020, were $3,240,845,000, an increase from $3,111,308,000 as of December 31, 2019[13]. - Total current liabilities rose to $513,127,000 as of March 31, 2020, compared to $358,721,000 as of December 31, 2019, indicating increased short-term financial obligations[12]. - Long-term debt, including current maturities, was valued at $989.7 million as of March 31, 2020, compared to $873.5 million as of December 31, 2019, reflecting an increase of approximately 13.3%[94]. - The outstanding borrowings on the company line of credit were $105.1 million as of March 31, 2020, up from $55.1 million at the end of 2019[72]. - Total liabilities and capitalization as of March 31, 2020, were $3,240,845,000, consistent with total assets, reflecting a balanced financial position[100][102]. Cash Flow - Net cash provided by operating activities was $4,067,000 for the three months ended March 31, 2020, a decrease from $20,141,000 in the same period of 2019[16]. - Cash contributions to pension plans were $7.9 million in Q1 2020, compared to $0 in Q1 2019[66]. - Net cash provided by financing activities in Q1 2020 was $158,901,000, compared to $52,915,000 in Q1 2019, showing an increase of about 199%[110]. - Cash, cash equivalents, and restricted cash at the end of Q1 2020 amounted to $140,996,000, up from $60,890,000 at the end of Q1 2019, representing an increase of approximately 131%[110]. - Net cash used in investing activities for Q1 2020 was $65,270,000, a significant increase from $59,881,000 in Q1 2019, indicating a rise of approximately 9%[110]. Regulatory and Legal Matters - The Company did not record amounts for the Water Revenue Adjustment Mechanism (WRAM) and other regulatory balancing accounts for the first three months of 2020 due to ongoing litigation[37]. - The company recognized a liability of $2.0 million for known legal matters as of March 31, 2020, down from $2.5 million as of December 31, 2019, a decrease of 20%[89]. - The company is involved in litigation related to groundwater contamination, with costs expensed as incurred, and proceeds from litigation to be used for customer reimbursements and treatment costs[88]. - The company recorded a regulatory liability for the Conservation Expense Balancing Account (CEBA) for the first three months of 2020, as it met the regulatory liability recognition criteria[37]. - The company expects segments of its customer base to experience difficulties in paying utility bills due to the COVID-19 pandemic, leading to adjustments in the allowance for credit losses[44]. Capital Expenditures - Utility plant expenditures in Q1 2020 totaled $65,270,000, compared to $59,881,000 in Q1 2019, reflecting an increase of approximately 9%[110]. - The company anticipates capital investments of approximately $809.0 million to $828.0 million in the 2019-2021 period if the settlement agreement is approved[80]. - As of March 31, 2020, construction work in progress amounted to $271.3 million[171]. - Advances for construction were valued at $82.1 million as of March 31, 2020, up from $79.6 million as of December 31, 2019, indicating a growth of about 3.1%[94]. - The company has significant commitments to purchase water from wholesalers, with no significant changes reported as of March 31, 2020, compared to December 31, 2019[86].