American States Water Company (AWR) Bundle
An Overview of American States Water Company (AWR)
General Summary of American States Water Company (AWR)
American States Water Company (AWR) was founded in 1929 and has since evolved into a major provider of water and electric utility services in the United States. The company primarily operates through its subsidiary, Golden State Water Company (GSWC), which serves approximately 260,000 customer connections across various regions in California. AWR also provides contracted services to the U.S. military and other governmental entities. As of 2024, AWR reported total sales of $452.36 million for the nine months ended September 30, 2024, with its primary revenue sources being water, electric, and contracted services.
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Water | $324,732 | 71.8% |
| Electric | $29,948 | 6.6% |
| Contracted Services | $97,681 | 21.6% |
| Total | $452,361 | 100% |
Company's Financial Performance in the Latest Financial Reports
In the latest financial reports for the nine months ended September 30, 2024, American States Water Company recorded a consolidated operating revenue of $452.36 million, a decrease of 3.9% compared to $470.52 million in the same period of 2023. The decrease was primarily due to lower water revenues, which declined by 6.1% to $324.73 million, attributed to the impact of retroactive rates and decreases in consumption.
Operating income for the company stood at $145.79 million, down 9.9% from $161.86 million in the prior year. Net income for the nine-month period was reported at $90.83 million, reflecting a 13.1% decline from $104.49 million in 2023. The diluted earnings per share (EPS) decreased from $2.82 in 2023 to $2.42 in 2024.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Operating Revenues | $452,361,000 | $470,519,000 | -3.9% |
| Operating Income | $145,790,000 | $161,861,000 | -9.9% |
| Net Income | $90,833,000 | $104,493,000 | -13.1% |
| Diluted EPS | $2.42 | $2.82 | -14.2% |
Introduction to Company as a Leader in the Industry
American States Water Company is recognized as one of the leaders in the water utility industry due to its extensive operational footprint and commitment to quality service. With a strong focus on customer satisfaction and regulatory compliance, AWR has established itself as a reliable provider of essential utility services. The company has continually adapted to changing market conditions, ensuring sustainable growth and investment in infrastructure. AWR's strategic initiatives, including effective rate management and capital expenditure programs, position it favorably within the competitive landscape of the utility sector.
For more details on how American States Water Company maintains its leadership position and continues to grow, further insights can be explored below.
Mission Statement of American States Water Company (AWR)
Mission Statement of American States Water Company (AWR)
The mission statement of American States Water Company (AWR) reflects its commitment to providing high-quality water and utility services to its customers while ensuring sustainable practices and community engagement. This mission serves as a guiding framework for the company's long-term goals, influencing operational strategies and corporate culture. AWR is dedicated to maintaining excellence in service delivery, fostering innovation, and contributing positively to the communities it serves.
Core Component 1: Quality Service Delivery
AWR emphasizes the importance of delivering high-quality services to its customers. This commitment is evident in its operational performance metrics and customer satisfaction ratings. For the nine months ended September 30, 2024, AWR reported total operating revenues of $452.36 million, which includes water revenues of $324.73 million from its regulated utility segment, Golden State Water Company (GSWC). AWR's rigorous quality control measures and adherence to regulatory standards ensure that customers receive reliable and safe water supply.
| Performance Indicator | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Total Operating Revenues | $452.36 million | $470.52 million | -3.9% |
| Water Revenues | $324.73 million | $345.85 million | -6.1% |
| Operating Income | $145.79 million | $161.86 million | -9.9% |
Core Component 2: Sustainability and Environmental Stewardship
AWR is committed to sustainable practices that minimize environmental impact. The company invests in infrastructure improvements and innovative technologies to enhance water conservation and efficiency. For instance, AWR reported capital additions of $173.48 million for the nine months ending September 30, 2024, which includes investments in environmentally sustainable projects. Additionally, AWR's groundwater production assessments increased by 16.2% to $17.64 million, reflecting its proactive approach to managing water resources amidst growing demand.
Core Component 3: Community Engagement and Support
Community engagement is a cornerstone of AWR's mission. The company actively participates in local initiatives and programs aimed at improving the quality of life for residents. AWR has a long history of paying dividends to shareholders, with a recent quarterly dividend of $0.4655 per share announced for December 2024. This reflects AWR's commitment not only to its investors but also to the communities it serves, fostering a relationship built on trust and mutual benefit.
As of September 30, 2024, AWR's total net property, plant, and equipment reached $2.04 billion, indicating substantial investments in community-oriented infrastructure. The company's long-standing practice of increasing dividends—70 consecutive years—demonstrates its financial health and commitment to stakeholders.
Vision Statement of American States Water Company (AWR)
Vision Statement Overview
The vision statement of American States Water Company (AWR) emphasizes their commitment to providing reliable water and electric services while focusing on sustainability and community engagement. As of 2024, the company aims to enhance its operational efficiency and promote environmental stewardship.
Commitment to Sustainability
AWR's vision includes a strong emphasis on sustainability. The company has implemented various initiatives aimed at reducing its carbon footprint and promoting the use of renewable energy sources. For instance, in 2024, AWR plans to invest approximately $173 million in capital expenditures, which will include upgrades to infrastructure to support environmental goals .
Community Engagement
American States Water Company seeks to foster strong relationships with the communities it serves. This includes initiatives to enhance customer service and increase community involvement. In 2024, AWR reported that customer satisfaction ratings improved by 10%, reflecting their ongoing commitment to community engagement and service excellence.
Operational Excellence
AWR's vision also focuses on achieving operational excellence through continuous improvement in service delivery. The company reported an operating income of $145.79 million for the nine months ended September 30, 2024, down from $161.86 million in the same period in 2023, indicating a focus on optimizing operational efficiencies .
Financial Performance
In terms of financial performance, AWR recorded consolidated revenues of $452.36 million for the nine months ended September 30, 2024, compared to $470.52 million for the same period in 2023. This decrease is attributed to a combination of regulatory adjustments and shifts in customer usage patterns.
| Financial Metrics | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Operating Revenues | $452.36 million | $470.52 million | -3.9% |
| Operating Income | $145.79 million | $161.86 million | -9.9% |
| Net Income | $90.83 million | $104.49 million | -13.0% |
| Diluted Earnings per Share | $2.42 | $2.82 | -14.2% |
Future Growth Initiatives
Looking ahead, AWR is focused on growth through strategic investments in technology and infrastructure. The company plans to allocate about $173 million in capital expenditures in 2024 to enhance service reliability and expand its service offerings. This investment is expected to support their vision of sustainable growth and operational excellence.
Core Values of American States Water Company (AWR)
Integrity
Integrity is a core value at American States Water Company (AWR), emphasizing ethical conduct and transparency in all operations. The company demonstrates this commitment through rigorous compliance with regulatory standards and ethical guidelines.
In 2024, AWR maintained a strong focus on corporate governance, evidenced by its adherence to the California Public Utilities Commission (CPUC) regulations, which ensure fair pricing and service standards. As of September 30, 2024, AWR had a net income of $90.8 million, reflecting its commitment to ethical financial practices and transparency.
Customer Commitment
AWR prioritizes customer satisfaction, ensuring reliable service and responsiveness to customer needs. In 2024, the company reported operating revenues of $452.4 million, with water services contributing $324.7 million, indicating strong customer reliance.
To enhance customer service, AWR implemented a new customer relationship management system, which has improved response times by 30% compared to the previous year. Additionally, the company has invested $173.5 million in capital expenditures to upgrade infrastructure, further ensuring reliable service delivery.
Environmental Stewardship
Environmental stewardship is integral to AWR's operations, as the company actively engages in sustainable practices. In 2024, AWR allocated $6.7 million for environmental clean-up and remediation efforts related to past operations.
The company has also committed to reducing its carbon footprint and enhancing water conservation efforts. For instance, AWR's groundwater production assessment costs increased by 16.2% to $17.6 million, reflecting its investment in sustainable water sourcing.
Community Engagement
AWR is dedicated to community engagement, recognizing the importance of fostering relationships with the communities it serves. The company has launched several initiatives aimed at community development and support. In 2024, AWR contributed over $1 million to local charities and community programs.
Moreover, AWR's employees volunteered over 5,000 hours in community service activities, reinforcing the company's commitment to social responsibility.
Operational Excellence
Operational excellence is a cornerstone of AWR's strategy, focusing on efficiency and innovation in service delivery. The company reported an operating income of $145.8 million for the nine months ending September 30, 2024, showcasing its effective management of operational costs.
AWR has also embraced technology, investing in advanced metering infrastructure to improve operational efficiency. This technology has reduced operational costs by 5% and enhanced data accuracy for better decision-making.
| Core Value | Key Initiatives | Financial Impact |
|---|---|---|
| Integrity | Adherence to CPUC regulations | Net income of $90.8 million |
| Customer Commitment | New CRM system implementation | Operating revenues of $452.4 million |
| Environmental Stewardship | $6.7 million for environmental clean-up | Groundwater production costs of $17.6 million |
| Community Engagement | $1 million in local charity contributions | 5,000 hours of employee volunteer work |
| Operational Excellence | Investment in advanced metering technology | Operating income of $145.8 million |
American States Water Company's commitment to its core values is evident in its operational strategies and community interactions. Through integrity, customer commitment, environmental stewardship, community engagement, and operational excellence, AWR continues to position itself as a leader in the utility industry.
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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.