American States Water Company · NYSE:AWR
American States Water — FY2024 Earnings Presentation
21 slides from American States Water's earnings presentation, Feb 20, 2025
Slide 1: Financial Results Call Presentation
Financial Results Call Presentation Fourth Quarter and Full Year 2024 February 20, 2025 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 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “may,” “should” and similar ph
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
Slide 5: Presentation Overview
Presentation Overview 2024 Highlights 6 Q4 Diluted EPS by Segment 8 Q4 Operating Revenues by Segment 9 Q4 Expenses (Excluding Income Taxes) 10 EPS Bridge Q4 2023 to Q4 2024 11 YTD Diluted EPS by Segment for the Year 12 Liquidity 13 Regulatory Activity 14 Adopted Average Water Rate Base 17 Contracted
Slide 6: 2024 Highlights
2024 Highlights Two final decisions were adopted by the CPUC GSWC’s general rate case application that authorizes new water rates for 2025-2027 and the investment in capital infrastructure of $573.1 million over a three-year capital cycle BVES’s general rate case application that authorize
Slide 7: 2024 Highlights (Continued)
2024 Highlights (Continued) Our regulated utilities invested a record high $235.5 million in company-funded infrastructure for 2024 ASUS has been awarded a record high $56.5 million in new capital upgrade construction projects in 2024 for completion through 2027 Start of operations of the wate
Slide 8: Q4 Diluted EPS by Segment
Q4 Diluted EPS by Segment Q4 2024 Q4 2023 Variance Water (1) $ 0.52 $ 0.41 $ 0.11 Electric 0.13 0.07 0.06 Contracted Services 0.11 0.12 (0.01) AWR (Parent) (0.02) (0.04) 0.02 Consolidated Diluted EPS as recorded (GAAP) $ 0.75 $ 0.55 $ 0.20 Adjustment to GAAP measure: Impact of retroactive rates rela
Slide 9: Q4 Operating Revenues by Segment
Q4 Operating Revenues by Segment (amounts in millions) Q4 2024 Q4 2023 Variance Water $92.7 $87.6 $5.1 Electric (1) 21.7 11.1 10.6 Contracted Services 28.7 26.4 2.3 Total Operating Revenues $143.1 $125.2 $17.9 Note: Certain amounts in the table above may not foot or crossfoot due to rounding. (1) El
Slide 10: Q4 Expenses (Excluding income taxes)
Q4 Expenses (Excluding income taxes) (amounts in millions) Q4 2024 Q4 2023 Variance Water and Electric Supply Costs $27.7 $26.7 $1.0 Other Operation 9.9 10.0 (0.1) Administrative and General* 27.9 22.2 5.7 Depreciation and Amortization 11.3 10.8 0.5 Maintenance* 9.8 3.2 6.6 Property and Other Taxes
Slide 11: EPS Bridge Q4 2023 to Q4 2024
EPS Bridge Q4 2023 to Q4 2024 $0.80 $0.75 $0.75 $0.06 ($0.01) $0.02 $0.70 $0.16 ($0.01) $0.10 ($0.02) $0.65 ($0.04) $0.60 ($0.03) ($0.05) $0.55 $0.55 Electric Contracted AWR $0.50 Water Utility Utility Services (Parent) $0.45 $0.40 Increase in Higher Higher Higher Lower other Income tax Dilutive Hig
Slide 12: Diluted EPS by Segment for the Year
Diluted EPS by Segment for the Year 2024 2023 Variance Water $ 2.51 $ 2.77 $ (0.26) Electric 0.21 0.20 0.01 Contracted Services 0.55 0.50 0.05 AWR (Parent) (0.10) (0.10) - Consolidated Diluted EPS as recorded (GAAP) $ 3.17 $ 3.36 $ (0.19) Adjustments to GAAP measure: Impact of retroactive rates rela
Slide 13: Liquidity
Liquidity Operating cash flows were $198.7 million for 2024, as compared to $67.7 million for 2023 largely from: GSWC’s implementation of: • 2024 third-year rate increases; • Surcharges to recover all retroactive revenues accumulated from 2022 through July 30, 2023 (implemented in October 2023)
Slide 14: Regulatory Activity
Regulatory Activity On July 12, 2024, GSWC and the Public Advocates Office (“Cal Advocates”) at the CPUC filed a joint motion to adopt a settlement agreement between the two parties in connection with the water utility general rate case. On January 30, 2025, the CPUC issued a final decision that a
Slide 15: Regulatory Activity (Continued)
Regulatory Activity (Continued) The final decision also adopted: GSWC’s recommended sales forecast; Supply mix; and A sales reconciliation mechanism The decision, however, rejected: a full sales and revenue decoupling mechanism and a full supply cost balancing account, and instead orders
Slide 16: Regulatory Activity (Continued)
Regulatory Activity (Continued) On November 1, 2024, BVES, Cal Advocates and the other intervenor in the proceeding filed a joint motion to adopt a settlement agreement between all parties resolving all issues in BVES’s general rate case. On January 16, 2025, the CPUC adopted a final decision in t
Slide 17: GSWC Adopted Average Water Rate Base
GSWC Adopted Average Water Rate Base (in millions) CAGR 10.3% * $1,357.5 * $1,259.5 * $1,161.5 * $980.4 $916.1 $851.8 $752.2 2018 2019 2020 2021 2022 2023 2024 Note: The recent CPUC approved rate case decision authorizes GSWC to invest $573.1 million in capital infrastructure over a three-year capit
Slide 18: Contracted Services (ASUS)
Contracted Services (ASUS) Earnings for full year of 2024 were $0.55 per share as compared to $0.50 per share for 2023. The increase was mainly due to an increase in management fee revenues resulting from the commencement of operations at the new bases and the resolution of various economic price
Slide 19: Dividends
Dividends The Board of Directors have approved a first quarter cash dividend of $0.4655 per share; quarterly dividend rate has grown at a compound annual growth rate of 8.8% over the last 5 years Achieved a 10-year CAGR of 8% in its calendar year dividend payments through 2024 Dividend policy:
Slide 20: Questions and Answers
e% American States ee eee Water Company Questions and Answers
Slide 21: Computations and Reconciliations of Non-GAAP Financial Measures
Computations and Reconciliations of Non-GAAP Financial Measures Below are the computations and reconciliations of diluted earnings per share from the measure of net income (loss) by business segment to AWR’s consolidated diluted earnings per share for the quarter and year ended December 31, 2024 and
American States Water Company — FY2024 Earnings Presentation on 6ix