California Water Service Group · NYSE:CWT
California Water Service — Q1 2016 Earnings Presentation
14 slides from California Water Service's earnings presentation, Apr 28, 2016
Slide 1: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("Act"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" tr
Slide 2: Today's Participants
Today’s Participants Marty Kropelnicki President & CEO Tom Smegal Vice President, CFO & Treasurer 3
Slide 3: Presentation Overview
Presentation Overview Financial Results Financial Highlights Drought Update Regulatory Update Cap Ex 2007 Recorded to 2018 Projected Net WRAM Balances 2010-2016 Q1 2016-2015 EPS Bridge 4
Slide 4: Financial Results
Financial Results (amounts are in millions, except for EPS) Q1 2015 Q1 2016 Variance Operating Revenue $122.0 $121.7 -0.2% Operations Expense 114.5 115.5 0.8% Income from Operations 7.5 6.3 -16.4% Other Income 0.6 0.3 -55.5% Net Interest 6.5 7.3 12.5% Net Income $1.6 -$0.8 -150.6% EPS $0.03 -$0.02 -
Slide 5: Financial Highlights
Financial Highlights 2016 is the third year of the California GRC cycle Year-over-year earnings reduced by: Incremental drought expenses of $2.0 million. Cal Water has been granted a memorandum account to track drought costs, which are expected to be recovered through the California Public Utilities
Slide 6: Drought Update
Drought Update 7 California is entering 5th year since drought was declared Northern California received above-normal rainfall and recorded normal snowfall this winter. Southern California had lower-than-normal precipitation The State Water Project, one of the major backbone surface water systems in
Slide 7: Drought – Financial Effects Muted by Regulatory Mechanisms
Drought – Financial Effects Muted by Regulatory Mechanisms Cal Water has been “decoupled” (minimizes effect of sales and production costs on earnings) since 2008 with WRAM Sales decline will not reduce profits Revenue accrual, is not included in WRAM, a temporary impact Drought costs recorded for fu
Slide 8: General Rate Case 2015 Update
General Rate Case 2015 Update Requested Increases $94.8M in 2017 $23M in 2018 $22.6M in 2019 80% of rate increase is due to capital investments Proposed CapEx of $693M over three years 18 month process – ORA reported findings in February 9
Slide 9: General Rate Case 2015 Update Schedule
General Rate Case 2015 Update Schedule Update Cal Water files rebuttal testimony at end of April Settlement discussions anticipated in May Length and productiveness of settlement discussions will dictate need for hearing and timing for remainder of the case 10
Slide 10: Capital Investment History and Projection
Capital Investment History and Projection in millions *2016-2018 amounts are based upon Company projections including 2015 California Rate Case filing CAGR = 11% (2007-2018) 11
Slide 11: Net WRAM Balance
Net WRAM Balance in millions 12
Slide 12: EPS Bridge Q1 2015 to Q1 2016
EPS Bridge Q1 2015 to Q1 2016 13
Slide 13: EPS Bridge Q1 2015 to Q1 2016 chart
$0.01 $0.00 + -$0.01 $0.02 -$0.03 $0.03 212015 €FS Drought Expenses -$0.017 Increased Maintenance Expense Other tems $0.02 212016 €FS 13
Slide 14: Discussion
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