AMERICAN STATES WATER COMPANY Financial Results Call Presentation
First Quarter 2024
May 8, 2024 | NYSE: AWR |
Today's Presenters
Robert J. Sprowls
President & CEO
Eva G. Tang
SVP - Finance & CFO
2
Forward-Looking Statement
Certain matters discussed during this conference call may be forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Please review a description of the company's risks and uncertainties in our most recent Form 10-K and Form 10-Q on file with the Securities and Exchange Commission (SEC).
3
Non-GAAP Financial Measures
This conference call includes a discussion of certain measures that are not prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States, and constitute "non-GAAP financial measures" under SEC rules. These non-GAAP financial measures are derived from consolidated financial information but are not presented in our financial statements that are prepared in accordance with GAAP.
The non-GAAP financial measures discussed in this conference call include a discussion of diluted earnings per share by business segment and adjusted diluted earnings per share. The impact of the water general rate case and the retroactive rates related to the full year 2022 recorded during the three months ended March 31, 2023 resulting from the proposed decision on the water general rate case and the impact from the estimates of revenues subject to refund recorded during the three months ended March 31, 2023 have been excluded when communicating AWR's consolidated and water segment results for the three months ended March 31, 2024 and 2023 to help facilitate comparisons of AWR's performance from period to period.
These non-GAAP financial measures supplement our GAAP disclosures and should not be considered as alternatives to the GAAP measures. Furthermore, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of other registrants. The company uses these non-GAAP measures in evaluating its operating results and believes these measures are useful internal benchmarks in evaluating the performance of its operating segments. The company reviews these measures regularly and compares them to historical periods and to the operating budget. The computations and reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in this presentation.
4
Presentation Overview
Q1 2024 Highlights | 6 |
Q1 Diluted EPS by Segment | 7 |
Q1 Operating Revenues by Segment | 8 |
Q1 Expenses (Excluding Income Taxes) | 9 |
EPS Bridge Q1 2023 to Q1 2024 | 10 |
Liquidity | 11 |
Regulatory Activity | 12 |
Adopted Average Water Rate Base | 14 |
Contracted Services (ASUS) | 15 |
Dividends | 16 |
Non-GAAP Measures | 18 |
5
Q1 2024 Highlights
- Recorded diluted earnings per share decreased $0.31, or a $0.02 per share increase as adjusted:
- Q1 2024: $0.62 per share recorded and adjusted
- Q1 2023: $0.93 per share recorded or $0.60 per share adjusted
- On pace to spend a combined $160-$200 million in infrastructure investments at our regulated utilities
- Successful transitions and start of operations of the water and wastewater systems at two new military bases
- 50-yearcontract at Naval Air Station Patuxent River (Pax River) with an initial firm- fixed-price value estimated at $349 million; subject to annual economic price adjustments
- 15-yearcontract at Joint Base Cape Cod for up to a maximum firm-fixed-price value of $75 million through the issuance of annual task orders
6
Q1 Diluted EPS by Segment
Q1 2024 | Q1 2023 | Variance | |
Water | $ 0.48 | $ 0.74 | $ (0.26) |
Electric | 0.05 | 0.06 | (0.01) |
Contracted Services | 0.13 | 0.15 | (0.02) |
AWR (Parent) | (0.03) | (0.02) | (0.01) |
Consolidated Diluted EPS as recorded (GAAP) | $ 0.62 | $ 0.93 | $ (0.31) |
Adjustments to GAAP measure: | |||
Impact of retroactive rates related to the full year of 2022 | - | (0.38) | 0.38 |
from the proposed decision in the water general rate case | |||
Impact of estimated revenues subject to refund | - | 0.05 | (0.05) |
Consolidated Diluted EPS as adjusted (Non-GAAP) | $ 0.62 | $ 0.60 | $ 0.02 |
Water Diluted EPS as adjusted (Non-GAAP) | $ 0.48 | $ 0.41 | $ 0.07 |
Note: Certain amounts in the table above may not foot or crossfoot due to rounding.
- The impact of the final cost of capital decision resulted in the reversal in June 2023 of revenues subject to refund recorded in 2022 through June 2023.
7
Q1 Operating Revenues by Segment
(amounts in millions) | Q1 2024 | Q1 2023 | Variance |
Water | $90.3 | $112.7 | $(22.4) |
Electric | 12.2 | 12.9 | (0.7) |
Contracted Services | 32.8 | 35.8 | (3.0) |
Total Operating Revenues* | $135.3 | $161.4 | ($26.1) |
- Water revenues recorded during Q1 2023 include the impact of retroactive rates for the full year of 2022 of $30.3 million.
8
Q1 Expenses (Excluding income taxes)
(amounts in millions) | Q1 2024 | Q1 2023 | Variance |
Water and Electric Supply Costs | $25.2 | $37.0 | $(11.8) |
Other Operation | 9.6 | 10.1 | (0.5) |
Administrative and General | 25.3 | 23.5 | 1.8 |
Depreciation and Amortization | 10.7 | 11.2 | (0.5) |
Maintenance | 3.2 | 3.2 | - |
Property and Other Taxes | 6.5 | 6.3 | 0.2 |
ASUS Construction | 15.7 | 18.9 | (3.2) |
Total Operating Expenses | $96.2 | $110.2 | $(14.0) |
Interest Expense, net of Interest Income | $10.8 | $7.6 | $3.2 |
Other Income, net of Other Expense | ($2.3) | ($1.6) | ($0.7) |
9
EPS Bridge Q1 2023 to Q1 2024
$0.75
$0.70
$0.65
$0.60
$0.55
$0.50
$0.10 | ($0.01) | ($0.01) | ||||||||
($0.03) | ||||||||||
$0.01 | $0.01 | ($0.01) | ||||||||
($0.02) | ||||||||||
($0.01) | ||||||||||
$0.62** | ||||||||||
$0.60 | ||||||||||
Regulated Utilities | Contracted | AWR | ||||||||
Services | (Parent) | |||||||||
Q1 2023* | Increase in | Higher supply | Higher | Higher | Higher other | Higher | Higher | Lower | Higher | Q1 2024 |
water | costs | operating | interest | income, net | income tax | electric | construction | interest | ||
Adjusted | Adjusted | |||||||||
revenues | expenses | expense, net | benefit | operating and | activity | expense | ||||
EPS | largely | (excluding | interest | EPS | ||||||
resulting | supply costs) | expenses | ||||||||
from 2024 | ||||||||||
third-year | ||||||||||
rate increases |
- Q1 2023 adjusted EPS excludes: (i) impact of the water general rate case and the retroactive rates related to the full year of 2022 resulting from the proposed decision in the water general rate case, a decrease of $0.38 per share to recorded EPS, and (ii) impact of estimates resulting from revenues subject to refund, an increase of $0.05 per share to recorded EPS. Both adjustments were recorded in Q1 2023 and relate to the water segment.
- Amount does not crossfoot due to rounding.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
American States Water Co. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 17:54:02 UTC.
