California Water Service(US:CWT)2023-07-26 16:00Financial Performance - Operating revenue for the three months ended June 30, 2023, was $194,044,000, a decrease of 5.5% from $206,194,000 in the same period of 2022[27]. - Net operating income for the six months ended June 30, 2023, was a loss of $1,575,000 compared to a profit of $36,427,000 for the same period in 2022[27]. - Net income attributable to California Water Service Group for the three months ended June 30, 2023, was $9,556,000, down from $19,484,000 in the same period of 2022[27]. - For the six months ended June 30, 2023, the company reported a net loss of $12,887,000 compared to a net income of $20,109,000 for the same period in 2022, representing a significant decline[41]. - The company reported a net loss of $12.7 million for the six months ended June 30, 2023, compared to a net income of $20.1 million for the same period in 2022[109]. - Earnings per share (EPS) for the six months ended June 30, 2023, was $(0.23), a decrease from $(0.38) in the same period of 2022[109]. Revenue and Expenses - Total operating expenses for the three months ended June 30, 2023, were $178,095,000, slightly down from $178,905,000 in the prior year[27]. - Total revenue from contracts with customers for the six months ended June 30, 2023, was $339,431,000, down from $357,592,000 in the same period of 2022, reflecting a decrease of approximately 5%[53]. - Total operating revenue for the three months ended June 30, 2023, was $194,044, a decrease of 5.6% from $206,194 in the same period of 2022[68]. - Revenue from contracts with customers for the three months ended June 30, 2023, was $194,206, down from $198,660 in the prior year, reflecting a decline of 2.3%[72]. - Operating revenue decreased by $54.1 million, or 14.3%, to $325.1 million for the first six months of 2023 compared to the same period in 2022, primarily due to a 9.7% decrease in customer usage[185]. - Total operating expenses decreased by $16.1 million, or 4.7%, to $326.7 million for the first six months of 2023 compared to $342.8 million for the same period in 2022[207]. Cash and Assets - Total assets as of June 30, 2023, were $3,990,201,000, an increase from $3,850,752,000 as of December 31, 2022[38]. - Cash and cash equivalents decreased to $55,595,000 as of June 30, 2023, from $62,100,000 at the end of 2022[38]. - The company reported cash, cash equivalents, and restricted cash of $89,664,000 at the end of the period, an increase from $64,230,000 at the end of the previous year[41]. - As of June 30, 2023, total cash, cash equivalents, and restricted cash amounted to $89,664, an increase from $85,025 as of December 31, 2022[101]. Debt and Liabilities - Long-term debt, net, remained stable at $1,052,070,000 as of June 30, 2023, compared to $1,052,487,000 at the end of 2022[38]. - Current liabilities increased to $362,657,000 as of June 30, 2023, from $294,650,000 at the end of 2022[38]. - Short-term borrowings net of issuance costs increased to $148,448,000 in 2023 from $55,000,000 in 2022, indicating a significant rise in financing activities[41]. - The average borrowing rate for the Company and Cal Water facilities increased significantly to 5.78% in 2023 from 1.35% in the previous year[128]. Regulatory and Tax Matters - The company did not benefit from any regulatory revenue mechanisms in the first six months of 2023 due to a delay in the resolution of the most recent General Rate Case filing[53]. - The effective tax rate increased to 14.9% as of June 30, 2023, compared to 11.5% as of June 30, 2022, primarily due to a decrease in refunds of excess deferred federal income taxes[98]. - The company had unrecognized tax benefits of approximately $14.4 million as of June 30, 2023, down from $16.5 million in 2022[114]. - The income tax benefit increased to $2.1 million for the first six months of 2023, compared to a $0.9 million expense in the same period of 2022[113]. Operational Highlights - Utility plant expenditures for the six months ended June 30, 2023, were $177,189,000, compared to $144,588,000 in the same period of 2022, representing an increase of approximately 22%[41]. - The company implemented increased interim inflation rates on May 5, 2023, following a request for inflationary rate increases[215]. - In July 2023, Cal Water requested offsets for increases in purchased water costs, pump taxes, and purchased power costs totaling $24.6 million across 11 regulated districts[221]. - New rates related to the cost offsets are expected to be implemented on July 31, 2023[221].