American States Water pany(US:AWR)2023-11-05 16:00Financial Performance - Total operating revenues for Q3 2023 reached $151.696 million, a 12.1% increase from $134.984 million in Q3 2022[34]. - Net income for Q3 2023 was $31.565 million, up 23.5% from $25.654 million in Q3 2022[34]. - Basic earnings per share for Q3 2023 increased to $0.85, compared to $0.69 in Q3 2022, reflecting a 23.2% growth[34]. - Operating income for the nine months ended September 30, 2023, was $161.861 million, a 63.2% increase from $99.022 million in the same period of 2022[34]. - Net income for the nine months ended September 30, 2023, was $104,493, compared to $59,767 for the same period in 2022, representing a 75% increase[46]. - Consolidated net income for the nine months ended September 30, 2023, was $104.5 million, reflecting an increase of $44.7 million, or 74.8%, compared to $59.8 million in 2022[178]. - Basic earnings per share for the nine months ended September 30, 2023, increased to $2.82, up from $1.61, representing a growth of 75.2%[178]. Assets and Liabilities - As of September 30, 2023, total assets increased to $2,205,229 thousand from $2,034,374 thousand as of December 31, 2022, reflecting a growth of approximately 8.4%[26][30]. - The net property, plant, and equipment rose to $1,850,471 thousand, up from $1,753,766 thousand, indicating an increase of about 5.5%[26]. - Common shareholders' equity increased to $771,337 thousand, compared to $709,549 thousand in the previous year, representing a growth of approximately 8.7%[30]. - Long-term debt increased to $575,459 thousand from $446,547 thousand, marking an increase of about 29%[30]. - Current liabilities decreased significantly to $195,007 thousand from $396,522 thousand, a reduction of approximately 50.8%[30]. - Total capitalization increased to $1,346,796 thousand from $1,156,096 thousand, reflecting a growth of about 16.5%[30]. - Total current assets increased to $95,426 as of September 30, 2023, up from $68,129 at the end of 2022, marking a 40% growth[47]. Revenue and Expenses - Total operating expenses for Q3 2023 were $99.945 million, a 5.4% increase from $94.644 million in Q3 2022[34]. - Total operating expenses for the nine months ended September 30, 2023, amounted to $211,845,000, up from $188,400,000 in the same period of 2022, which is an increase of 12.4%[53]. - Interest expense for Q3 2023 rose to $11.691 million, compared to $7.331 million in Q3 2022, indicating a 59.5% increase[34]. - Interest expense for the nine months ended September 30, 2023, was $23,140,000, compared to $16,650,000 for the same period in 2022, which is an increase of 38.5%[53]. - Total interest expense increased by 65.7% to $31,900,000 from $19,246,000, primarily due to higher borrowing levels and increased interest rates[203]. Cash Flow - The company reported a net cash provided by operating activities of $56,518 for the nine months ended September 30, 2023, down from $89,933 in 2022, a decrease of 37%[46]. - AWR's net cash provided by operating activities was $56.5 million for the nine months ended September 30, 2023, down from $89.9 million in the same period in 2022, reflecting a 37.1% decrease[211]. - Net cash used in investing activities increased to $135.2 million for the nine months ended September 30, 2023, compared to $121.7 million in 2022, primarily due to capital expenditures at regulated utilities[214]. - Net cash provided by financing activities was $81.3 million for the nine months ended September 30, 2023, compared to cash used of $29.1 million during the same period in 2022, indicating a significant increase in borrowing levels[215]. Contracts and Regulatory Matters - The company was awarded a new 50-year contract valued at $349 million for operations at Naval Air Station Patuxent River[63]. - A new 15-year contract with a maximum initial value of $45 million was awarded for services at Joint Base Cape Cod, with the first task order valued at $2.3 million[63]. - GSWC filed a general rate case application requesting a capital budget of approximately $611.4 million for the 2025-2027 rate cycle[117]. - The CPUC adopted a final decision allowing GSWC to invest approximately $404.8 million in capital infrastructure over the 2022-2024 cycle[118]. - GSWC plans to continue seeking additional rate increases from the CPUC to recover operating and supply costs[116]. Shareholder Returns - Dividends paid per common share increased to $0.4300 in Q3 2023 from $0.3975 in Q3 2022, representing an 8.1% increase[34]. - AWR paid quarterly dividends of approximately $15.9 million, or $0.4300 per share, for the three months ended September 30, 2023, compared to $14.7 million, or $0.3975 per share, in 2022, marking an 8.2% increase[88]. Regulatory Assets and Liabilities - Regulatory assets—current increased to $32,355 thousand from $14,028 thousand, indicating a significant rise of about 130%[26]. - GSWC's regulatory liabilities, net of regulatory assets, amounted to approximately $67.1 million as of September 30, 2023[71]. - GSWC had an aggregated regulatory asset of $46.6 million as of September 30, 2023, which includes a $51.2 million under-collection in the WRAM accounts[75]. Operational Metrics - Water operating revenues for Q3 2023 were $116.231 million, up 15.3% from $100.799 million in Q3 2022[34]. - Water revenues for the nine months ended September 30, 2023, increased by $80.3 million, or 30.2%, to $345.9 million, primarily due to the adoption of new rates and a retroactive adjustment of $30.3 million[181]. - Electric revenues for the nine months ended September 30, 2023, increased by $1.7 million, or 5.7%, to $30.7 million, attributed to updated cost allocations from the general corporate office[182]. Cost Management - Water supply costs for Q3 2023 increased to $34.3 million, up 11.6% from $30.7 million in Q3 2022[162]. - Other operation expenses increased by 7.6% to $10.4 million in Q3 2023 from $9.7 million in Q3 2022, mainly due to higher operation-related labor and water treatment costs[164]. - Administrative and general expenses decreased by 2.8% to $20.98 million in Q3 2023 from $21.59 million in Q3 2022, reflecting a decrease in outside services costs[166].