American States Water Company · NYSE:AWR
American States Water — Q1 2023 Earnings Presentation
19 slides from American States Water's earnings presentation, May 11, 2023
Slide 1: Financial Results Call Presentation First Quarter 2023
Financial Results Call Presentation First Quarter 2023 May 11, 2023 NYSE: AWR
Slide 2: Today's Presenters
Today’s Presenters Robert J. Sprowls President & CEO Eva G. Tang SVP – Finance & CFO 2
Slide 3: Forward-Looking Statement
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 uncer
Slide 4: Non-GAAP Financial Measures
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 ar
Slide 5: Presentation Overview
Presentation Overview Q1 2023 Highlights 6 Q1 Diluted EPS by Segment 7 Q1 Operating Revenues by Segment 8 Q1 Expenses (Excluding Income Taxes) 9 EPS Bridge Q1 2022 to Q1 2023 10 Liquidity 11 Regulatory Activity 12 Adopted Average Water Rate Base 15 Contracted Services (ASUS) 16 Dividends 17 Non-GAAP
Slide 6: Q1 2023 Highlights
Q1 2023 Highlights Recorded diluted earnings per share increased $0.55, or a $0.13 per share increase as adjusted: Received proposed decision on the water general rate case that sets new water rates for the years 2022-2024 retroactive to January 1, 2022 • Quarter results reflect the impact of retr
Slide 7: Q1 Diluted EPS by Segment
Q1 Diluted EPS by Segment Q1 2023 Q1 2022 Variance Water $ 0.74 $ 0.23 $ 0.51 Electric 0.06 0.07 (0.01) Contracted Services 0.15 0.08 0.07 AWR (Parent) (0.02) - (0.02) Consolidated Diluted EPS as reported $ 0.93 $ 0.38 $ 0.55 Adjustments: (Gains) losses on investments held for a (0.03) 0.03 (0.06) r
Slide 8: Q1 Operating Revenues by Segment
Q1 Operating Revenues by Segment (amounts in millions) Q1 2023 Q1 2022 Variance Water* $112.7 $73.9 $38.8 Electric 12.9 11.9 1.0 Contracted Services 35.8 22.8 13.0 Total Operating Revenues $161.4 $108.6 $52.8 * Water revenues recorded during Q1 2023 include the impact of retroactive rates for the fu
Slide 9: Q1 Expenses (Excluding Income Taxes)
Q1 Expenses (Excluding income taxes) (amounts in millions) Q1 2023 Q1 2022 Variance Water and Electric Supply Costs $37.1 $23.2 $13.9 Other Operation 10.1 8.7 1.4 Administrative and General 23.5 23.0 0.5 Depreciation and Amortization 11.2 10.1 1.1 Maintenance 3.2 3.1 0.1 Property and Other Taxes 6.3
Slide 10: Adjusted EPS Bridge Q1 2022 to Q1 2023
Adjusted EPS Bridge Q1 2022 to Q1 2023 $0.60 $0.15 ($0.04) $0.07 ($0.02) $0.55 $0.54 ($0.02) ($0.01) $0.01 ($0.01) $0.50 $0.45 $0.41 $0.40 Contracted AWR Regulated Utilities Services (Parent) $0.35 $0.30 Q1 2022 EPS Net increase in Higher Higher interest Higher Lower income Higher electric Increase
Slide 11: Liquidity
Liquidity Operating cash flows were $7.0 million for Q1 2023, as compared to $38.0 million for Q1 2022 During Q1 2022, GSWC and BVES received COVID relief funds from state of CA totaling $9.5 million and $321,000, respectively GSWC will request recovery through a surcharge of all retroactive r
Slide 12: Regulatory Activity
Regulatory Activity On April 13, 2023, GSWC received a proposed decision on the water general rate case with rates retroactive to January 1, 2022 and resolves all matters from the settlement agreement Authorizes $404.8 million in capital infrastructure over the 3-year period Increases 2022 ado
Slide 13: Regulatory Activity (Continued)
Regulatory Activity (Continued) On May 9, 2023, GSWC received a proposed decision from the assigned administrative law judge at the CPUC on the cost of capital proceeding. The proposed decision: adopts GSWC’s requested capital structure and cost of debt of 5.1% filed in the application; adopts
Slide 14: Regulatory Activity (Continued)
Regulatory Activity (Continued) On August 30, 2022, BVES filed a general rate case to set new rates for the years 2023-2026. In addition, BVES requested: capital budget of $68.2 million a capital structure of 61.8% equity and 38.2% debt a return on equity of 11.25% an embedded cost of debt
Slide 15: Adopted Average Water Rate Base
Adopted Average Water Rate Base (in millions) $1,152.3 * CAGR 11.3% * $980.4 $916.1 $851.8 $752.2 2018 2019 2020 2021 2022 * Based on settlement agreement approved and adopted by the proposed decision received in April 2023, the rate base amount does not include $9.4 million in advice letter project
Slide 16: Contracted Services (ASUS)
Contracted Services (ASUS) Earnings for Q1 2023 were $0.15 per share as compared to $0.08 per share in Q1 2022. The increase was largely due to an increase in construction activity during the current quarter as compared to the same period in 2022 due to timing differences of when construction work
Slide 17: Dividends
Dividends The Board of Directors approved a second quarter 2023 cash dividend of $0.3975 per Common Share Annual dividend has grown at a CAGR of 9.2% over the last ten years Dividend policy: CAGR of more than 7% over the long term Dividends paid every year since 1931 $1.525 Increased divid
Slide 18: Questions and Answers
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Slide 19: Computations and Reconciliations of Non-GAAP Financial Measure
Computations and Reconciliations of Non-GAAP Financial Measure Below are the computations and reconciliations of diluted earnings per share from the measure of operating income by business segment to AWR’s consolidated diluted earnings per share for the three months ended March 31, 2023 and 2022: Wa
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