American States Water pany(US:AWR)2022-05-01 16:00Financial Performance - Total operating revenues for the three months ended March 31, 2022, were $108,570,000, a decrease of 7.3% from $117,060,000 in the same period of 2021[27]. - Net income for the three months ended March 31, 2022, was $14,162,000, down 26.5% from $19,268,000 in the prior year[27]. - Basic earnings per common share decreased to $0.38 for the three months ended March 31, 2022, compared to $0.52 for the same period in 2021[27]. - Total operating expenses decreased to $84,205,000, a reduction of 2.0% from $86,731,000 in the previous year[27]. - Operating income for Q1 2022 was $24,365,000, down 19.7% from $30,329,000 in Q1 2021[27]. - Total operating revenues for Q1 2022 were $73,906,000, a decrease of 1.5% from $75,029,000 in Q1 2021[41]. - Net income for Q1 2022 was $8,567,000, down 29.0% from $12,231,000 in Q1 2021[41]. - Total operating expenses increased to $56,907,000 in Q1 2022, up 5.4% from $53,970,000 in Q1 2021[41]. Assets and Liabilities - Total assets increased to $1,913,932 thousand as of March 31, 2022, compared to $1,900,983 thousand at December 31, 2021, reflecting a growth of approximately 0.68%[19]. - Total common shareholders' equity reached $687,425 thousand, a slight increase from $685,947 thousand, showing a growth of about 0.21%[23]. - Current liabilities totaled $160,154 thousand, up from $155,574 thousand, marking an increase of approximately 2.5%[23]. - Long-term debt remained stable at $412,150 thousand compared to $412,176 thousand, indicating minimal change[23]. - Total current assets decreased to $65,790,000 in Q1 2022 from $75,215,000 in Q4 2021, a decline of 12.5%[38]. - Total common shareholder's equity decreased to $611,495,000 in Q1 2022 from $615,686,000 in Q4 2021, a decline of 0.3%[39]. Cash Flow - Cash flows from operating activities increased to $38,026,000 for the three months ended March 31, 2022, compared to $24,676,000 in the same period of 2021[34]. - Net cash provided by operating activities was $31,265,000 for Q1 2022, up from $22,799,000 in Q1 2021, influenced by $9.5 million in COVID-19 relief funds[50]. - Net cash used in investing activities was $31.3 million for Q1 2022, a decrease from $43.7 million in Q1 2021, with capital expenditures totaling $31.5 million[154]. - Net cash provided by financing activities was $4.2 million for Q1 2022, compared to a net cash outflow of $12.2 million in Q1 2021, due to an increase in intercompany borrowings of $18.0 million from AWR[155]. Capital Expenditures - Capital expenditures for the three months ended March 31, 2022, were $35,170,000, slightly lower than $37,093,000 in the prior year[34]. - Capital expenditures for the three months ended March 31, 2022, were $(31,465,000), slightly lower than $(31,824,000) in the same period of 2021[50]. - GSWC plans to invest approximately $404.8 million in capital infrastructure over the 2022-2024 period, with an expected increase in 2022 adopted revenues by approximately $30.3 million compared to 2021[93]. Regulatory and Compliance - GSWC received $9.5 million in COVID relief funds to assist customers with water debt accrued during the pandemic[53]. - GSWC's pending general rate case will determine new water rates for 2022-2024, with a proposed decision expected in mid-2022[160]. - The company filed a cost of capital application requesting a return on equity of 10.5% and an embedded cost of debt of 5.1%[96]. - GSWC is tracking incremental drought-related costs in a memorandum account for future recovery as authorized by the CPUC in 2021[169]. Drought and Environmental Impact - As of April 26, 2022, 41% of California was in "Extreme Drought," down from 53% the previous year, while 95% was in "Severe Drought," compared to 88% a year ago[169]. - GSWC's service areas that rely on groundwater experienced lower levels due to drought, prompting mandatory water restrictions in certain areas[169]. - The California governor's executive order calls for urban water suppliers to reduce water use by 20-30%, with GSWC assessing supply conditions and potential restrictions[169]. - GSWC expects to incur additional capital and operating costs to maintain water quality standards due to environmental regulations and anticipated stress on water resources[164].