American Water Works pany(US:AWK)2021-05-04 19:19Financial Data and Key Metrics Changes - The first quarter 2021 earnings per share (EPS) was $0.73, up 7.4% compared to $0.68 in the first quarter of 2020 [24][12] - The company invested $342 million in capital during the first quarter, focusing on operational and capital efficiencies [12][13] - The O&M efficiency ratio improved to 34.1% from 34.5% year-over-year, with a target of 30.4% by 2025 [20][64] Business Line Data and Key Metrics Changes - Regulated business segment results were $0.74 per share, an increase of $0.06 per share driven by infrastructure investment and acquisitions [24][25] - Market-based business results decreased to $0.09 per share, down $0.03 due to increased claims from weather-related events [24][25] Market Data and Key Metrics Changes - The company added approximately 4,500 customer connections through closed acquisitions and organic growth in 2021, with over 86,000 customer connections under agreement [10] - The acquisitions represent approximately $440 million in additional rate base and an estimated $115 million in follow-on capital expenditures over the next five years [10] Company Strategy and Development Direction - The company is focused on growth through acquisitions in regulated markets, with significant recent acquisitions in Pennsylvania and New Jersey [7][10] - The strategy includes leveraging regulatory frameworks to facilitate acquisitions and improve service delivery [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the Biden administration's infrastructure plan, which includes significant investment in water and wastewater systems [36][38] - The company remains confident that the ongoing investigation related to the subpoena will not materially impact overall operations or financial results [21][22] Other Important Information - The Board of Directors increased the quarterly cash dividend from $0.55 to $0.6025 per share, reflecting a commitment to dividend growth [28] - The company issued its first annual Inclusion & Diversity Report, highlighting efforts in advancing diversity and inclusion [30] Q&A Session Summary Question: Clarification on the New York American sale process - Management confirmed they are still targeting a close within the year [32] Question: Details on the subpoena related to homeowner services - The subpoena is specific to New York City Metropolitan operations, and the company is cooperating with the investigation [34] Question: Thoughts on the Biden administration's infrastructure plan - Management is optimistic about the plan, believing it will provide low-interest financing opportunities for water and wastewater projects [36] Question: Impact of recent acquisitions on equity guidance - Management indicated that the recent acquisitions do not change the equity financing timing or plans [52] Question: O&M efficiency ratio progress - Management is confident in achieving the 2025 target of 30.4% efficiency, having improved from 34.5% to 34.1% [64]