SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
(Mark One)
x
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2004 or | |
o
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to |
Commission file number 333-47647
American States Water Company
| California | 95-4676679 | |
| (State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
| 630 East Foothill Boulevard, San Dimas | 91773 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(909) 394-3600
Not Applicable
Commission file number 000-01121
Southern California Water Company
| California | 95-1243678 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(IRS Employer Identification No.) | |
| 630 East Foothill Boulevard, San Dimas | 91773 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(909) 394-3600
Not Applicable
Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
American States Water Company
|
Yes x No o | |
Southern California Water Company
|
Yes x No o |
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act.).
American States Water Company
|
Yes x No o | |
Southern California Water Company
|
Yes o No x |
As of May 10, 2004, the number of Common Shares outstanding, of American States Water Company was 15,244,928 shares.
As of May 10, 2004, all of the 110 outstanding Common Shares of Southern California Water Company were owned by American States Water Company.
AMERICAN STATES WATER COMPANY
and
SOUTHERN CALIFORNIA WATER COMPANY
FORM 10-Q
INDEX
1
PART I
Item 1. Financial Statements
General
The basic financial statements included herein have been prepared by Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations, although Registrant believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments necessary for a fair statement of results for the interim period have been made.
It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto in the latest Annual Report on Form 10-K of American States Water Company and its wholly owned subsidiary, Southern California Water Company.
Filing Format
This quarterly report on Form 10-Q is a combined report being filed by two separate Registrants: American States Water Company (hereinafter “AWR”) and Southern California Water Company (hereinafter “SCW”). For more information, please see Note 1 to the Notes to Financial Statements and the heading entitled General in Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operation. References in this report to “Registrant” are to AWR and SCW collectively, unless otherwise specified. SCW makes no representations as to the information contained in this report relating to AWR and its subsidiaries, other than SCW.
2
AMERICAN STATES WATER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
| March 31, | December 31, | |||||||
| (in thousands) |
2004 |
2003 |
||||||
Utility Plant, at cost |
||||||||
Water |
$ | 730,973 | $ | 726,811 | ||||
Electric |
43,445 | 42,711 | ||||||
| 774,418 | 769,522 | |||||||
Less — Accumulated depreciation |
(228,114 | ) | (222,567 | ) | ||||
| 546,304 | 546,955 | |||||||
Construction work in progress |
63,902 | 55,343 | ||||||
Net utility plant |
610,206 | 602,298 | ||||||
Other Property and Investments |
22,071 | 22,120 | ||||||
Current Assets |
||||||||
Cash and cash equivalents |
9,011 | 12,775 | ||||||
Accounts receivable-customers (less allowance for doubtful
accounts of $750 in 2004 and $831 in 2003) |
8,665 | 11,758 | ||||||
Unbilled revenue |
11,088 | 12,714 | ||||||
Other accounts receivable |
1,404 | 10,649 | ||||||
Materials and supplies, at average cost |
1,438 | 1,346 | ||||||
Regulatory assets — current |
5,262 | 5,331 | ||||||
Prepayments |
2,677 | 3,786 | ||||||
| 39,545 | 58,359 | |||||||
Regulatory and Other Assets |
||||||||
Regulatory assets |
58,239 | 57,704 | ||||||
Other accounts receivable |
8,000 | 8,000 | ||||||
Other |
8,904 | 8,994 | ||||||
Total regulatory and other assets |
75,143 | 74,698 | ||||||
Total Assets |
$ | 746,965 | $ | 757,475 | ||||
The accompanying notes are an integral part of these consolidated financial statements
3
AMERICAN STATES WATER COMPANY
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
(Unaudited)
| March 31, | December 31, | |||||||
| (in thousands) |
2004 |
2003 |
||||||
Capitalization |
||||||||
Common shares, no par value, no stated value |
$ | 128,308 | $ | 127,699 | ||||
Earnings reinvested in the business |
82,572 | 84,788 | ||||||
Total common shareholders’ equity |
210,880 | 212,487 | ||||||
Long-term debt |
229,590 | 229,799 | ||||||
Total capitalization |
440,470 | 442,286 | ||||||
Current Liabilities |
||||||||
Notes payable to banks |
47,000 | 56,000 | ||||||
Long-term debt — current |
820 | 820 | ||||||
Accounts payable |
13,382 | 18,774 | ||||||
Taxes payable |
1,950 | 2,784 | ||||||
Accrued employee expenses |
4,791 | 3,925 | ||||||
Accrued interest |
5,006 | 1,681 | ||||||
Deferred income taxes — current |
1,486 | 1,217 | ||||||
Other |
7,979 | 10,697 | ||||||
Total current liabilities |
82,414 | 95,898 | ||||||
Other Credits |
||||||||
Advances for construction |
79,313 | 77,154 | ||||||
Contributions in aid of construction — net |
64,555 | 64,297 | ||||||
Deferred income taxes |
54,007 | 53,243 | ||||||
Unamortized investment tax credits |
2,678 | 2,700 | ||||||
Accrued pension and other postretirement benefits |
5,849 | 4,584 | ||||||
Regulatory liabilities |
9,911 | 9,642 | ||||||
Other |
7,768 | 7,671 | ||||||
Total other credits |
224,081 | 219,291 | ||||||
Commitments and Contingencies (Note 8) |
— | — | ||||||
Total Capitalization and Liabilities |
$ | 746,965 | $ | 757,475 | ||||
The accompanying notes are an integral part of these consolidated financial statements
4
AMERICAN STATES WATER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS
ENDED MARCH 31, 2004 AND 2003
(Unaudited)
| Three Months Ended | ||||||||
| March 31, |
||||||||
| (in thousands, except per share amounts) |
2004 |
2003 |
||||||
Operating Revenues
|
||||||||
Water |
$ | 38,742 | $ | 39,425 | ||||
Electric |
7,627 | 7,004 | ||||||
Other |
282 | 247 | ||||||
| 46,651 | 46,676 | |||||||
Operating Expenses |
||||||||
Water purchased |
8,881 | 7,888 | ||||||
Power purchased for pumping |
1,717 | 1,956 | ||||||
Power purchased for resale |
4,829 | 3,856 | ||||||
Unrealized (gain) loss on purchased power contracts |
(557 | ) | 283 | |||||
Groundwater production assessment |
1,822 | 1,667 | ||||||
Supply cost balancing accounts |
221 | 958 | ||||||
Other operating expenses |
4,437 | 4,040 | ||||||
Administrative and general expenses |
9,079 | 7,524 | ||||||
Depreciation and amortization |
5,177 | 4,947 | ||||||
Maintenance |
2,327 | 1,950 | ||||||
Taxes on income |
942 | 1,995 | ||||||
Other taxes |
2,226 | 2,057 | ||||||
Total operating expenses |
41,101 | 39,121 | ||||||
Operating Income |
5,550 | 7,555 | ||||||
Other Income (Loss) |
||||||||
Other income (loss) — net of taxes |
(83 | ) | — | |||||
Total other income (loss) |
(83 | ) | — | |||||
Interest Charges |
||||||||
Interest on long-term debt |
4,050 | 4,255 | ||||||
Other interest and amortization of debt expense |
271 | 310 | ||||||
Total interest charges |
4,321 | 4,565 | ||||||
Net Income |
$ | 1,146 | $ | 2,990 | ||||
Weighted Average Number of Shares Outstanding |
15,224 | 15,188 | ||||||
Basic Earnings Per Common Share |
$ | 0.08 | $ | 0.20 | ||||
Weighted Average Number of Diluted Shares |
15,255 | 15,194 | ||||||
Fully Diluted Earnings Per Share |
$ | 0.08 | $ | 0.20 | ||||
Dividends Declared Per Common Share |
$ | 0.221 | $ | 0.221 | ||||
The accompanying notes are an integral part of these consolidated financial statements
5
AMERICAN STATES WATER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
| Three Months Ended | ||||||||
| March 31, |
||||||||
| (in thousands) |
2004 |
2003 |
||||||
Cash Flows From Operating Activities: |
||||||||
Net income |
$ | 1,146 | $ | 2,990 | ||||
Adjustments for non-cash items: |
||||||||
Depreciation and amortization |
5,177 | 4,947 | ||||||
Deferred income taxes and investment tax credits |
1,018 | 2,330 | ||||||
Unrealized (gain) loss on purchased power contracts |
(557 | ) | 283 | |||||
Other — net |
184 | (15 | ) | |||||
Changes in assets and liabilities: |
||||||||
Accounts receivable — customers |
3,093 | 446 | ||||||
Unbilled revenue |
1,626 | 1,211 | ||||||
Other accounts receivable |
9,245 | 405 | ||||||
Materials and supplies |
(92 | ) | (71 | ) | ||||
Prepayments |
1,109 | 543 | ||||||
Regulatory assets — supply cost balancing accounts |
221 | 958 | ||||||
Other assets |
(487 | ) | (1,327 | ) | ||||
Accounts payable |
(5,392 | ) | (3,215 | ) | ||||
Taxes payable |
(834 | ) | 1,519 | |||||
Other liabilities |
3,661 | 2,232 | ||||||
Net cash provided |
19,118 | 13,236 | ||||||
Cash Flows From Investing Activities: |
||||||||
Construction expenditures |
(13,399 | ) | (8,409 | ) | ||||
Net cash used |
(13,399 | ) | (8,409 | ) | ||||
Cash Flows From Financing Activities: |
||||||||
Proceeds from issuance of common shares |
609 | 402 | ||||||
Receipt of advances for and contributions in aid of construction |
2,904 | 1,780 | ||||||
Refunds on advances for construction |
(425 | ) | (433 | ) | ||||
Repayment of long-term debt |
(209 | ) | (202 | ) | ||||
Net change in notes payable to banks |
(9,000 | ) | (5,000 | ) | ||||
Dividends paid |
(3,362 | ) | (3,356 | ) | ||||
Net cash used |
(9,483 | ) | (6,809 | ) | ||||
Net decrease in cash and cash equivalents |
(3,764 | ) | (1,982 | ) | ||||
Cash and cash equivalents, beginning of period |
12,775 | 18,397 | ||||||
Cash and cash equivalents, end of period |
$ | 9,011 | $ | 16,415 | ||||
Non-cash activities — supplemental disclosures: |
||||||||
Adoption of new accounting standard for asset retirement obligations: |
||||||||
Cumulative effect of adoption — Regulatory asset |
— | $ | 2,495 | |||||
Net utility plant |
— | 223 | ||||||
Asset retirement obligations |
— | (2,718 | ) | |||||
The accompanying notes are an integral part of these consolidated financial statements
6
SOUTHERN CALIFORNIA WATER COMPANY
BALANCE SHEETS
ASSETS
(Unaudited)
| March 31, | December 31, | |||||||
| (in thousands) |
2004 |
2003 |
||||||
Utility Plant, at cost |
||||||||
Water |
$ | 690,474 | $ | 688,079 | ||||
Electric |
43,445 | 42,711 | ||||||
| 733,919 | 730,790 | |||||||
Less — Accumulated depreciation |
(216,742 | ) | (211,424 | ) | ||||
| 517,177 | 519,366 | |||||||
Construction work in progress |
61,146 | 51,354 | ||||||
Net utility plant |
578,323 | 570,720 | ||||||
Other Property and Investments |
7,421 | 7,471 | ||||||
Current Assets |
||||||||
Cash and cash equivalents |
3,199 | 8,306 | ||||||
Accounts receivable-customers (less allowance for doubtful
accounts of $714 in 2004 and $797 in 2003) |
8,587 | 11,487 | ||||||
Unbilled revenue |
10,895 | 12,484 | ||||||
Intercompany receivable |
1,072 | 445 | ||||||
Other accounts receivable |
1,231 | 10,516 | ||||||
Materials and supplies, at average cost |
1,414 | 1,322 | ||||||
Regulatory assets — current |
5,262 | 5,331 | ||||||
Prepayments |
2,549 | 3,638 | ||||||
Total current assets |
34,209 | 53,529 | ||||||
Regulatory and Other Assets |
||||||||
Regulatory assets |
58,156 | 57,624 | ||||||
Other accounts receivable |
8,000 | 8,000 | ||||||
Other |
8,150 | 8,219 | ||||||
Total regulatory and other assets |
74,306 | 73,843 | ||||||
Total Assets |
$ | 694,259 | $ | 705,563 | ||||
The accompanying notes are an integral part of these financial statements
7
SOUTHERN CALIFORNIA WATER COMPANY
BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
(Unaudited)
| March 31, | December 31, | |||||||
| (in thousands) |
2004 |
2003 |
||||||
Capitalization |
||||||||
Common shares, no par value |
$ | 123,391 | $ | 123,391 | ||||
Earnings reinvested in the business |
80,523 | 82,656 | ||||||
Total common shareholder’s equity |
203,914 | 206,047 | ||||||
Long-term debt |
221,944 | 221,996 | ||||||
Total capitalization |
425,858 | 428,043 | ||||||
Current Liabilities |
||||||||
Long-term debt — current |
260 | 260 | ||||||
Accounts payable |
12,664 | 17,312 | ||||||
Intercompany payable |
23,721 | 34,111 | ||||||
Taxes payable |
3,967 | 4,382 | ||||||
Accrued employee expenses |
4,687 | 3,828 | ||||||
Accrued interest |
4,841 | 1,581 | ||||||
Deferred income taxes — current |
1,330 | 1,057 | ||||||
Other |
7,667 | 10,376 | ||||||
Total current liabilities |
59,137 | 72,907 | ||||||
Other Credits |
||||||||
Advances for construction |
69,000 | 66,827 | ||||||
Contributions in aid of construction-net |
64,272 | 64,023 | ||||||
Deferred income taxes-net |
50,934 | 50,277 | ||||||
Unamortized investment tax credits |
2,678 | 2,700 | ||||||
Accrued pension and other postretirement benefits |
5,849 | 4,584 | ||||||
Regulatory liabilities |
9,911 | 9,642 | ||||||
Other |
6,620 | 6,560 | ||||||
| 209,264 | 204,613 | |||||||
Commitments and Contingencies (Note 8) |
— | — | ||||||
Total Capitalization and Liabilities |
$ | 694,259 | $ | 705,563 | ||||
The accompanying notes are an integral part of these financial statements
8
SOUTHERN CALIFORNIA WATER COMPANY
STATEMENTS OF INCOME
FOR THE THREE MONTHS
ENDED MARCH 31, 2004 AND 2003
(Unaudited)
| Three Months Ended | ||||||||
| March 31, |
||||||||
| (in thousands) |
2004 |
2003 |
||||||
Operating Revenues |
||||||||
Water |
$ | 37,461 | $ | 38,169 | ||||
Electric |
7,627 | 7,004 | ||||||
| 45,088 | 45,173 | |||||||
Operating Expenses |
||||||||
Water purchased |
8,720 | 7,710 | ||||||
Power purchased for pumping |
1,641 | 1,890 | ||||||
Power purchased for resale |
4,829 | 3,856 | ||||||
Unrealized (gain) loss on power purchased contracts |
(557 | ) | 283 | |||||
Groundwater production assessment |
1,822 | 1,667 | ||||||
Supply cost balancing accounts |
221 | 958 | ||||||
Other operating expenses |
4,093 | 3,753 | ||||||
Administrative and general expenses |
7,736 | 7,010 | ||||||
Depreciation and amortization |
4,937 | 4,718 | ||||||
Maintenance |
2,253 | 1,872 | ||||||
Taxes on income |
1,336 | 2,090 | ||||||
Other taxes |
2,125 | 1,949 | ||||||
Total operating expenses |
39,156 | 37,756 | ||||||
Operating Income |
5,932 | 7,417 | ||||||
Other Income (Loss) |
||||||||
Other income (loss) — net of taxes |
(86 | ) | (3 | ) | ||||
Total other income (loss) |
(86 | ) | (3 | ) | ||||
Interest Charges |
||||||||
Interest on long-term debt |
3,935 | 4,140 | ||||||
Other interest and amortization of debt expense |
192 | 150 | ||||||
Total interest charges |
4,127 | 4,290 | &nbs | |||||