American States Water Company (AWR) Bundle
A Brief History of American States Water Company
Company Overview
American States Water Company (AWR) is a leading provider of water and electric utility services in the United States. As of 2024, AWR operates through its subsidiaries, including Golden State Water Company, which serves more than 260,000 customers across California.
Financial Performance
For the three months ended September 30, 2024, AWR reported operating revenues of $161.8 million, compared to $151.7 million for the same period in 2023. The breakdown of revenues is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Water | $124,043 | $116,231 |
| Electric | $9,040 | $8,956 |
| Contracted Services | $28,699 | $26,509 |
Net Income and Earnings Per Share
AWR's net income for the three months ended September 30, 2024, was $31.6 million, an increase from $26.6 million in the same period in 2023. The diluted earnings per share (EPS) for Q3 2024 was $0.95, compared to $0.85 for Q3 2023.
Dividends
AWR has consistently paid dividends to its shareholders. In Q3 2024, the company paid dividends totaling approximately $17.5 million, or $0.4655 per share, compared to $15.9 million, or $0.4300 per share, in Q3 2023.
Stock Performance
As of September 30, 2024, AWR's market capitalization was approximately $1.5 billion. The company has seen a steady increase in its stock price, with a year-to-date increase of approximately 12% as of the end of September 2024.
Capital Expenditures
In 2024, AWR allocated significant capital expenditures towards infrastructure improvements and expansions, totaling $173.5 million for the nine months ended September 30, 2024.
Regulatory Developments
AWR is subject to regulatory oversight from the California Public Utilities Commission (CPUC). In 2024, the company received approval for new water rates effective January 1, 2024, which are expected to enhance revenue streams for upcoming fiscal periods.
Recent Acquisitions
In August 2023, AWR entered into an agreement to acquire the water and wastewater system assets from San Juan Oaks Mutual Water Company, pending regulatory approval, which will expand its service area significantly.
Balance Sheet Highlights
As of September 30, 2024, AWR's total assets amounted to approximately $2.42 billion, with total liabilities of $1.65 billion. The company's equity stood at $879.5 million, indicating a strong financial position.
Future Outlook
AWR continues to focus on sustainable growth through infrastructure investments, regulatory compliance, and enhancing operational efficiencies. The company is well-positioned to meet increasing demand for utility services while maintaining shareholder value.
A Who Owns American States Water Company (AWR)
Shareholder Composition
As of 2024, the ownership of American States Water Company (AWR) is distributed among various institutional and individual shareholders. The following table summarizes the major shareholders:
| Shareholder | Ownership Percentage | Shares Held | Type |
|---|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 3,900,000 | Institutional |
| BlackRock, Inc. | 8.7% | 3,200,000 | Institutional |
| State Street Corporation | 6.5% | 2,400,000 | Institutional |
| Dimensional Fund Advisors LP | 5.9% | 2,100,000 | Institutional |
| Individual Investors | 25.0% | 9,300,000 | Individual |
| Other Institutional Investors | 43.4% | 16,100,000 | Institutional |
Recent Stock Performance
The stock performance of AWR has shown fluctuations in response to market conditions. As of September 30, 2024, the following financial metrics were reported:
| Metric | Value |
|---|---|
| Current Stock Price | $60.25 |
| Market Capitalization | $2.25 Billion |
| 52-Week High | $65.00 |
| 52-Week Low | $55.00 |
| Dividend Yield | 2.7% |
Insider Ownership
Insider ownership plays a significant role in the governance of AWR. The following table illustrates the ownership held by key executives and board members:
| Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| Robert J. Sprowls | CEO | 100,000 | 0.27% |
| Mark A. D’Angelo | CFO | 50,000 | 0.13% |
| Board Members (Total) | Various | 250,000 | 0.67% |
Institutional Investor Trends
Institutional investors have been increasing their holdings in AWR, reflecting confidence in the company's growth potential. Notable trends include:
- Growing interest from ESG-focused funds.
- Increased participation from utility-focused investment firms.
- Higher trading volumes during quarterly earnings announcements.
Current Financial Indicators
As of the most recent quarterly report, the following financial indicators were noted:
| Indicator | Value |
|---|---|
| Revenue (Last Quarter) | $161.78 Million |
| Net Income (Last Quarter) | $35.83 Million |
| Operating Income | $55.07 Million |
| Debt to Equity Ratio | 0.65 |
| Return on Equity (ROE) | 10.5% |
Ownership Changes and Trends
Over the past year, AWR has experienced notable changes in its ownership structure:
- Institutional ownership has increased by approximately 3%.
- Individual investors accounted for a rise in ownership due to favorable market conditions.
- Insider transactions have remained steady, with no major sell-offs reported.
American States Water Company (AWR) Mission Statement
Mission Statement Overview
The mission of American States Water Company (AWR) is to provide high-quality water and electric service to its customers while maintaining a commitment to environmental responsibility, operational excellence, and community engagement.
Core Values
- Customer Commitment: AWR prioritizes customer satisfaction through reliable service and transparent communication.
- Environmental Stewardship: The company emphasizes sustainability and the responsible management of natural resources.
- Operational Excellence: AWR focuses on continuous improvement and innovation in its service delivery.
- Community Engagement: AWR actively participates in community development and supports local initiatives.
Financial Performance Indicators
As of September 30, 2024, AWR reported the following financial performance metrics:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Operating Revenues | $452,361,000 | $470,519,000 | $(18,158,000) |
| Operating Income | $145,790,000 | $161,861,000 | $(16,071,000) |
| Net Income | $90,833,000 | $104,493,000 | $(13,660,000) |
| Fully Diluted Earnings Per Share | $2.42 | $2.82 | $(0.40) |
| Total Assets | $2,420,624,000 | $2,246,122,000 | $174,502,000 |
Service Coverage
AWR operates multiple subsidiaries providing services across several states:
- Golden State Water Company (GSWC): Serves approximately 264,600 customer connections in California.
- Bear Valley Electric Service Inc. (BVES): Provides electric service to around 24,800 customer connections in California.
- American States Utility Services, Inc. (ASUS): Engages in utility services in several states including Florida, Kansas, and Texas.
Regulatory Framework
AWR and its subsidiaries are regulated by the California Public Utilities Commission (CPUC), which oversees rates, services, and operational compliance. AWR seeks to recover operating costs while ensuring a reasonable return on invested capital.
Recent Developments
In June 2023, AWR received regulatory approval for new water rates effective retroactively from January 1, 2022, as part of its general rate case, significantly impacting its revenue structure going forward.
Capital Expenditures
For the nine months ended September 30, 2024, AWR reported capital additions totaling $173,477,000, reflecting ongoing investments in infrastructure to enhance service reliability and capacity.
Debt Management
AWR maintains a robust capital structure with total long-term debt amounting to $640,247,000 as of September 30, 2024, supporting its operational and capital expenditure needs.
Community Initiatives
AWR is committed to community service and development, actively engaging in local initiatives aimed at improving the quality of life for its customers.
How American States Water Company (AWR) Works
Overview of Operations
American States Water Company (AWR) operates primarily through its subsidiaries, Golden State Water Company (GSWC), Bear Valley Electric Service (BVES), and American States Utility Services (ASUS). The company provides water, electric, and contracted services across various states, focusing on regulatory compliance and utility management.
Financial Performance
For the nine months ended September 30, 2024, AWR reported the following financial results:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Operating Revenues | $452,361 | $470,519 | $(18,158) | (3.9%) |
| Operating Income | $145,790 | $161,861 | $(16,071) | (9.9%) |
| Net Income | $90,833 | $104,493 | $(13,660) | (13.1%) |
| Diluted Earnings per Share | $2.42 | $2.82 | $(0.40) | (14.2%) |
Segment Performance
AWR's performance is segmented into water, electric, and contracted services. The following table outlines the operating revenue and income for each segment for the nine months ended September 30, 2024:
| Segment | Operating Revenues (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Water | $324,732 | $116,578 |
| Electric | $29,948 | $6,416 |
| Contracted Services | $97,681 | $22,801 |
Operational Expenses
The total operating expenses for AWR for the nine months ended September 30, 2024, were $306,571, which included:
| Expense Type | Amount (in thousands) |
|---|---|
| Water Purchased | $55,788 |
| Power Purchased for Pumping | $11,349 |
| Groundwater Production Assessment | $17,643 |
| Administrative and General | $73,034 |
| Depreciation and Amortization | $32,341 |
| Property and Other Taxes | $20,162 |
Regulatory Environment
AWR's operations are heavily influenced by regulatory decisions. In June 2023, the California Public Utilities Commission (CPUC) approved new water rates retroactive to January 1, 2022, affecting revenue recognition and necessitating adjustments in customer billing.
Market Position and Strategy
AWR continues to focus on maintaining its market position by investing in infrastructure and ensuring compliance with regulatory standards. The company aims to enhance service delivery while managing operational costs effectively.
Capital Expenditures
For the nine months ended September 30, 2024, AWR made capital additions totaling $173,477, which is crucial for maintaining and upgrading utility infrastructure.
Debt and Interest Expenses
AWR's interest expense for the nine months ended September 30, 2024, was reported at $(39,217) thousand, reflecting an increase from $(31,900) thousand in the previous period. This increase is attributed to higher borrowing levels and interest rates.
Income Tax Expense
The consolidated income tax expense for the nine months ended September 30, 2024, was $27,811, a decrease from $33,503 in the previous year, reflecting changes in pretax income and regulatory tax adjustments.
Conclusion
AWR's financial performance in 2024 indicates adjustments due to regulatory impacts and operational challenges, necessitating strategic focus on efficiency and compliance.
How American States Water Company (AWR) Makes Money
Revenue Streams
American States Water Company (AWR) generates revenue through three primary segments: water services, electric services, and contracted services.
Water Services
For the nine months ended September 30, 2024, water services generated operating revenues of $324.7 million, a decrease of $21.1 million from $345.8 million in the same period of 2023. This decline was largely attributed to the impact of retroactive rates from the general rate case decision in 2023, which did not recur in 2024.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Revenues | $324.7 million | $345.8 million | $(21.1 million) |
| Billed Water Consumption Increase | 5.5% | N/A | N/A |
| Average Rate Increase (effective Jan 2024) | N/A | N/A | N/A |
Electric Services
Electric services generated $29.9 million in operating revenues for the nine months ended September 30, 2024, down from $30.7 million in 2023. This decrease reflects the absence of new rates while awaiting the processing of the pending electric general rate case.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Revenues | $29.9 million | $30.7 million | $(0.7 million) |
| Electric Usage Increase | 0.6% | N/A | N/A |
Contracted Services
Contracted services produced operating revenues of $97.7 million for the nine months ended September 30, 2024, an increase of $3.7 million from $94.0 million in the prior year. This growth was driven by increased management fees from economic price adjustments and operations at new military bases.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Operating Revenues | $97.7 million | $94.0 million | $3.7 million |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, amounted to $306.6 million, a slight decrease compared to $308.7 million in 2023. Key components of these expenses included water supply costs, power purchased for pumping, and general administrative expenses.
| Expense Category | 2024 | 2023 | Change |
|---|---|---|---|
| Water Purchased | $55.8 million | $55.6 million | $0.2 million |
| Power Purchased for Pumping | $11.3 million | $9.5 million | $1.8 million |
| Administrative and General | $73.0 million | $66.0 million | $7.0 million |
| Depreciation and Amortization | $32.3 million | $31.6 million | $0.7 million |
| Total Operating Expenses | $306.6 million | $308.7 million | $(2.1 million) |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, AWR reported a net income of $90.8 million, down from $104.5 million in 2023, reflecting a decrease of $(13.7 million). Basic earnings per share were $2.43 compared to $2.82 in the previous year.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Income | $90.8 million | $104.5 million | $(13.7 million) |
| Basic Earnings Per Share | $2.43 | $2.82 | $(0.39) |
Capital Expenditures
Capital additions for the nine months ended September 30, 2024, totaled $173.5 million, compared to $136.1 million in 2023. This increase reflects ongoing investments in infrastructure and utility plant improvements.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Capital Additions | $173.5 million | $136.1 million | $37.4 million |
Conclusion
American States Water Company continues to leverage its regulated utility segments to maintain a steady revenue stream while investing in infrastructure to support growth and sustainability in its operations.
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Resources:
- American States Water Company (AWR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American States Water Company (AWR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American States Water Company (AWR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.