American Water Works pany(US:AWK)2021-02-25 22:58Financial Data and Key Metrics Changes - In Q4 2020, earnings per share (EPS) increased to $0.80 from $0.54 in Q4 2019, a rise of $0.26 per share [64] - For the full year 2020, EPS was $3.91 compared to $3.43 in 2019, an increase of $0.48 per share [65] - The regulated business contributed an increase of $0.33 per share, while the market-based business improved by $0.24 per share compared to 2019 [66] Business Line Data and Key Metrics Changes - The regulated business accounted for over 89% of projected EPS by 2025, with significant assets including over 53,000 miles of pipes and 609 water treatment plants [15] - Market-based businesses, including homeowner services and military services, contributed positively to earnings, with homeowner services reaching approximately 1.5 million customers [31] Market Data and Key Metrics Changes - The company added approximately 38,000 customer connections through acquisitions in 10 states in 2020 [13] - The five-year growth expectation from regulated acquisitions has increased, reflecting a significant need for investment in water and wastewater infrastructure across the U.S. [17] Company Strategy and Development Direction - The company is focused on building reliable water and wastewater infrastructure, enhancing customer experience, and maintaining a values-led approach [10] - A capital plan of $10.4 billion over the next five years has been established, with a focus on infrastructure renewal and regulated acquisitions [20][22] - The company aims for a long-term EPS compound annual growth rate (CAGR) of 7% to 10% over the next five years [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of clean, safe, reliable water services, especially during the COVID-19 pandemic [12] - The company is well-positioned for long-term success, with a strong focus on safety and operational excellence [9][11] Other Important Information - The company has been recognized as one of the Top 10 World's Most Sustainable Corporations [13] - A new Chief Operating Officer has been appointed, emphasizing the company's commitment to leadership and safety [14] Q&A Session Summary Question: What is the company's outlook for EPS growth? - The company expects EPS guidance for 2021 to be between $4.18 and $4.28, reflecting a year-over-year growth rate of over 10% [69] Question: How does the company plan to finance its capital investments? - The company plans to rely on operating cash flows, raising $3.6 billion in long-term debt and about $700 million in equity over the next five years [72] Question: What are the key areas of focus for the company's growth strategy? - The growth strategy includes a focus on regulated acquisitions, infrastructure investment, and engagement with regulatory policies to benefit customers [48][40]