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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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☒ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
for the quarterly period ended September 30, 2022
or
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☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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for the transition period from to |
Commission file number 001-14431
American States Water Company
(Exact Name of Registrant as Specified in Its Charter)
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California | | 95-4676679 |
(State or Other Jurisdiction of Incorporation or Organization) | | (IRS Employer Identification No.) |
630 E. Foothill Blvd | San Dimas | CA | | 91773-1212 |
(Address of Principal Executive Offices) | | (Zip Code) |
(909) 394-3600
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Commission file number 001-12008
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
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Title of each class | | Trading symbol | | Name of each exchange on which registered |
Common shares | | AWR | | New York Stock Exchange |
Golden State Water Company
(Exact Name of Registrant as Specified in Its Charter)
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California | | 95-1243678 |
(State or Other Jurisdiction of Incorporation or Organization) | | (IRS Employer Identification No.) |
630 E. Foothill Blvd | San Dimas | CA | | 91773-1212 |
(Address of Principal Executive Offices) | | (Zip Code) |
(909) 394-3600
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
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.
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American States Water Company | Yes | x | | No | ¨ |
Golden State Water Company | Yes | x | | No | ¨ |
Indicate by check mark whether Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or such shorter period that the Registrant was required to submit and post such files).
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American States Water Company | Yes | x | | No | ¨ |
Golden State Water Company | Yes | x | | No | ¨ |
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
American States Water Company
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Large accelerated filer | x | | Accelerated filer | ¨ | | Non-accelerated filer | ¨ | | Smaller reporting company | ☐ | | Emerging growth company | ☐ |
Golden State Water Company
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Large accelerated filer | ¨ | | Accelerated filer | ¨ | | Non-accelerated filer | x | | Smaller reporting company | ☐ | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
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American States Water Company | | Yes | ☐ | | No | x |
Golden State Water Company | | Yes | ☐ | | No | x |
As of November 4, 2022, the number of Common Shares outstanding of American States Water Company was 36,960,897 shares. As of November 4, 2022, all of the 170 outstanding Common Shares of Golden State Water Company were owned by American States Water Company.
Golden State Water Company meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q and is therefore filing this Form, in part, with the reduced disclosure format for Golden State Water Company.
AMERICAN STATES WATER COMPANY
and
GOLDEN STATE WATER COMPANY
FORM 10-Q
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| Consolidated Statements of Changes in Common Shareholders' Equity for the Nine Months Ended September 30, 2021 | | |
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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. In the opinion of management, all adjustments consisting of normal recurring items and estimates 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, Golden State Water Company.
Filing Format
American States Water Company (“AWR”) is the parent company of Golden State Water Company (“GSWC”), Bear Valley Electric Service, Inc. (“BVESI”), and American States Utility Services, Inc. and its subsidiaries (“ASUS”).
This quarterly report on Form 10-Q is a combined report being filed by two separate Registrants: AWR and GSWC. For more information, please see Note 1 of the Notes to Consolidated Financial Statements and the heading entitled “General” in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” References in this report to “Registrant” are to AWR and GSWC collectively, unless otherwise specified. GSWC makes no representations as to the information contained in this report other than with respect to itself.
Forward-Looking Information
This Form 10-Q and the documents incorporated herein contain forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current estimates, expectations and projections about future events and assumptions regarding these events and include statements regarding management’s goals, beliefs, plans or current expectations, taking into account the information currently available to management. Forward-looking statements are not statements of historical facts. For example, when we use words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may” and other words that convey uncertainty of future events or outcomes, we are making forward-looking statements. We are not able to predict all the factors that may affect future results. We caution you that any forward-looking statements made by us are not guarantees of future performance and the actual results may differ materially from those in our forward-looking statements.
Factors affecting our financial performance are summarized under Forward-Looking Information and under “Risk Factors” in our Form 10-K for the period ended December 31, 2021 filed with the SEC. Please consider our forward-looking statements in light of these risks as you read this Form 10-Q. We qualify all of our forward-looking statements by these cautionary statements.
AMERICAN STATES WATER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
| | | | | | | | | | | | | | |
(in thousands) | | September 30, 2022 | | December 31, 2021 |
Property, Plant and Equipment | | | | |
Regulated utility plant, at cost | | $ | 2,284,066 | | | $ | 2,183,183 | |
Non-utility property, at cost | | 37,838 | | | 37,085 | |
Total | | 2,321,904 | | | 2,220,268 | |
Less - Accumulated depreciation | | (603,752) | | | (594,264) | |
Net property, plant and equipment | | 1,718,152 | | | 1,626,004 | |
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Other Property and Investments | | | | |
Goodwill | | 1,116 | | | 1,116 | |
Other property and investments | | 34,113 | | | 40,806 | |
Total other property and investments | | 35,229 | | | 41,922 | |
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Current Assets | | | | |
Cash and cash equivalents | | 2,258 | | | 4,963 | |
Accounts receivable — customers (less allowance for doubtful accounts of $6,598 in 2022 and $3,516 in 2021) | | 31,829 | | | 34,416 | |
Unbilled receivable | | 25,165 | | | 27,147 | |
Receivable from the U.S. government (Note 2) | | 25,493 | | | 27,827 | |
Other accounts receivable (less allowance for doubtful accounts of $53 in 2022 and $53 in 2021) | | 3,369 | | | 6,510 | |
Income taxes receivable | | 91 | | | 236 | |
Materials and supplies, at weighted average cost | | 13,444 | | | 12,163 | |
Regulatory assets — current | | 13,048 | | | 8,897 | |
Prepayments and other current assets | | 7,292 | | | 5,317 | |
Unrealized gains on purchased power contracts | | 7,569 | | | 4,441 | |
Contract assets (Note 2) | | 9,232 | | | 6,135 | |
Total current assets | | 138,790 | | | 138,052 | |
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Other Assets | | | | |
Unbilled revenue — receivable from the U.S. government | | 7,260 | | | 9,671 | |
Receivable from the U.S. government (Note 2) | | 48,992 | | | 51,991 | |
Contract assets (Note 2) | | 4,348 | | | 3,452 | |
Operating lease right-of-use assets | | 9,172 | | | 10,479 | |
Regulatory assets | | 5,291 | | | 3,182 | |
Other | | 15,341 | | | 16,230 | |
Total other assets | | 90,404 | | | 95,005 | |
| | | | |
Total Assets | | $ | 1,982,575 | | | $ | 1,900,983 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMERICAN STATES WATER COMPANY
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
(Unaudited)
| | | | | | | | | | | | | | |
(in thousands, except number of shares) | | September 30, 2022 | | December 31, 2021 |
Capitalization | | | | |
Common shares, no par value | | | | |
Authorized: 60,000,000 shares | | | | |
Outstanding: 36,960,897 shares in 2022 and 36,936,285 shares in 2021 | | $ | 260,011 | | | $ | 258,442 | |
Earnings reinvested in the business | | 445,493 | | | 427,505 | |
Total common shareholders’ equity | | 705,504 | | | 685,947 | |
Long-term debt | | 446,817 | | | 412,176 | |
Total capitalization | | 1,152,321 | | | 1,098,123 | |
| | | | |
Current Liabilities | | | | |
Notes payable to bank | | 238,500 | | | 31,000 | |
Long-term debt — current | | 399 | | | 377 | |
Accounts payable | | 69,982 | | | 65,902 | |
Income taxes payable | | 5,464 | | | 4,662 | |
Accrued other taxes | | 15,760 | | | 17,137 | |
Accrued employee expenses | | 15,529 | | | 16,256 | |
Accrued interest | | 7,234 | | | 4,545 | |
Regulatory liabilities | | 4,821 | | | 1,896 | |
Contract liabilities (Note 2) | | 1,253 | | | 257 | |
Operating lease liabilities | | 1,892 | | | 2,044 | |
Other | | 12,345 | | | 11,498 | |
Total current liabilities | | 373,179 | | | 155,574 | |
| | | | |
Other Credits | | | | |
Notes payable to bank | | 3,000 | | | 174,500 | |
Advances for construction | | 65,210 | | | 66,727 | |
Contributions in aid of construction - net | | 146,711 | | | 147,482 | |
Deferred income taxes | | 142,726 | | | 140,290 | |
Regulatory liabilities | | 17,609 | | | 32,979 | |
Unamortized investment tax credits | | 1,099 | | | 1,153 | |
Accrued pension and other postretirement benefits | | 58,835 | | | 61,365 | |
Operating lease liabilities | | 7,721 | | | 8,920 | |
Other | | 14,164 | | | 13,870 | |
Total other credits | | 457,075 | | | 647,286 | |
| | | | |
Commitments and Contingencies (Note 9) | | | | |
| | | | |
Total Capitalization and Liabilities | | $ | 1,982,575 | | | $ | 1,900,983 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMERICAN STATES WATER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2022 AND 2021
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
(in thousands, except per share amounts) | | 2022 | | 2021 | | 2022 | | 2021 |
Operating Revenues | | | | | | | | |
Water | | $ | 100,799 | | | $ | 102,768 | | | $ | 265,561 | | | $ | 269,430 | |
Electric | | 8,919 | | | 8,564 | | | 29,028 | | | 28,211 | |
Contracted services | | 25,266 | | | 25,423 | | | 71,572 | | | 84,588 | |
Total operating revenues | | 134,984 | | | 136,755 | | | 366,161 | | | 382,229 | |
| | | | | | | | |
Operating Expenses | | | | | | | | |
Water purchased | | 20,304 | | | 24,093 | | | 58,115 | | | 60,248 | |
Power purchased for pumping | | 3,878 | | | 3,584 | | | 9,182 | | | 8,590 | |
Groundwater production assessment | | 5,650 | | | 5,185 | | | 14,726 | | | 14,845 | |
Power purchased for resale | | 2,673 | | | 2,875 | | | 9,186 | | | 8,203 | |
Supply cost balancing accounts | | 640 | | | (2,446) | | | (6,160) | | | (7,959) | |
Other operation | | 9,696 | | | 9,414 | | | 28,028 | | | 26,165 | |
Administrative and general | | 21,594 | | | 20,255 | | | 65,030 | | | 62,938 | |
Depreciation and amortization | | 10,117 | | | 9,826 | | | 30,402 | | | 29,156 | |
Maintenance | | 3,408 | | | 2,979 | | | 10,120 | | | 8,908 | |
Property and other taxes | | 5,942 | | | 6,052 | | | 17,247 | | | 17,265 | |
ASUS construction | | 10,742 | | | 12,154 | | | 31,263 | | | 42,910 | |
Total operating expenses | | 94,644 | | | 93,971 | | | 267,139 | | | 271,269 | |
| | | | | | | | |
Operating Income | | 40,340 | | | 42,784 | | | 99,022 | | | 110,960 | |
| | | | | | | | |
Other Income and Expenses | | | | | | | | |
Interest expense | | (7,331) | | | (5,553) | | | (19,246) | | | (17,843) | |
Interest income | | 667 | | | 333 | | | 1,387 | | | 1,136 | |
Other, net | | 338 | | | 467 | | | (2,370) | | | 2,998 | |
Total other income and expenses, net | | (6,326) | | | (4,753) | | | (20,229) | | | (13,709) | |
| | | | | | | | |
Income before income tax expense | | 34,014 | | | 38,031 | | | 78,793 | | | 97,251 | |
| | | | | | | | |
Income tax expense | | 8,360 | | | 9,878 | | | 19,026 | | | 23,254 | |
| | | | | | | | |
Net Income | | $ | 25,654 | | | $ | 28,153 | | | $ | 59,767 | | | $ | 73,997 | |
| | | | | | | | |
Weighted Average Number of Common Shares Outstanding | | 36,958 | | | 36,933 | | | 36,953 | | | 36,916 | |
Basic Earnings Per Common Share | | $ | 0.69 | | | $ | 0.76 | | | $ | 1.61 | | | $ | 2.00 | |
| | | | | | | | |
Weighted Average Number of Diluted Shares | | 37,042 | | | 37,025 | | | 37,034 | | | 37,004 | |
Fully Diluted Earnings Per Common Share | | $ | 0.69 | | | $ | 0.76 | | | $ | 1.61 | | | $ | 2.00 | |
| | | | | | | | |
Dividends Paid Per Common Share | | $ | 0.3975 | | | $ | 0.365 | | | $ | 1.1275 | | | $ | 1.035 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMERICAN STATES WATER COMPANY
CONSOLIDATED STATEMENTS OF CHANGES
IN COMMON SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2022 |
| | Common Shares | | Reinvested | | |
| | Number | | | | Earnings | | |
| | of | | | | in the | | |
(in thousands) | | Shares | | Amount | | Business | | Total |
Balances at December 31, 2021 | | 36,936 | | | $ | 258,442 | | | $ | 427,505 | | | $ | 685,947 | |
Add: | | | | | | | | |
Net income | | | | | | 14,162 | | | 14,162 | |
Exercise of stock options and other issuances of Common Shares | | 20 | | — | | | | | — | |
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | | | | 801 | | | | | 801 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | 41 | | | | | 41 | |
Deduct: | | | | | | | | |
Dividends on Common Shares | | | | | | 13,485 | | | 13,485 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | | | 41 | | | 41 | |
Balances at March 31, 2022 | | 36,956 | | $ | 259,284 | | | $ | 428,141 | | | $ | 687,425 | |
| | | | | | | | |
Add: | | | | | | | | |
Net income | | | | | | 19,951 | | | 19,951 | |
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | | | | 338 | | | | | 338 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | 34 | | | | | 34 | |
Deduct: | | | | | | | | |
Dividends on Common Shares | | | | | | 13,489 | | | 13,489 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | | | 34 | | | 34 | |
Balances at June 30, 2022 | | 36,956 | | $ | 259,656 | | | $ | 434,569 | | | $ | 694,225 | |
| | | | | | | | |
Add: | | | | | | | | |
Net income | | | | | | 25,654 | | | 25,654 | |
Exercise of stock options and other issuances of Common Shares | | 5 | | — | | | | | — | |
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | | | | 315 | | | | | 315 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | 40 | | | | | 40 | |
Deduct: | | | | | | | | |
Dividends on Common Shares | | | | | | 14,690 | | | 14,690 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | | | 40 | | | 40 | |
Balances at September 30, 2022 | | 36,961 | | $ | 260,011 | | | $ | 445,493 | | | $ | 705,504 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMERICAN STATES WATER COMPANY
CONSOLIDATED STATEMENTS OF CHANGES
IN COMMON SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2021 |
| | Common Shares | | Reinvested | | |
| | Number | | | | Earnings | | |
| | of | | | | in the | | |
(in thousands) | | Shares | | Amount | | Business | | Total |
Balances at December 31, 2020 | | 36,889 | | $ | 256,666 | | | $ | 385,007 | | | $ | 641,673 | |
Add: | | | | | | | | |
Net income | | | | | | 19,268 | | | 19,268 | |
Exercise of stock options and other issuances of Common Shares | | 24 | | — | | | | | — | |
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | | | | 813 | | | | | 813 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | 49 | | | | | 49 | |
Deduct: | | | | | | | | |
Dividends on Common Shares | | | | | | 12,361 | | | 12,361 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | | | 49 | | | 49 | |
Balances at March 31, 2021 | | 36,913 | | | $ | 257,528 | | | $ | 391,865 | | | $ | 649,393 | |
| | | | | | | | |
Add: | | | | | | | | |
Net income | | | | | | 26,576 | | | 26,576 | |
Exercise of stock options and other issuances of Common Shares | | 19 | | — | | | | | — | |
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | | | | 531 | | | | | 531 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | 42 | | | | | 42 | |
Deduct: | | | | | | | | |
Dividends on Common Shares | | | | | | 12,366 | | | 12,366 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | | | 42 | | | 42 | |
Balances at June 30, 2021 | | 36,932 | | | $ | 258,101 | | | $ | 406,033 | | | $ | 664,134 | |
| | | | | | | | |
Add: | | | | | | | | |
Net income | | | | | | 28,153 | | | 28,153 | |
Exercise of stock options and other issuances of Common Shares | | 4 | | — | | | | | — | |
Stock-based compensation, net of taxes paid from shares withheld from employees related to net share settlements (Note 4) | | | | 128 | | | | | 128 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | 35 | | | | | 35 | |
Deduct: | | | | | | | | |
Dividends on Common Shares | | | | | | 13,480 | | | 13,480 | |
Dividend equivalent rights on stock-based awards not paid in cash | | | | | | 35 | | | 35 | |
Balances at September 30, 2021 | | 36,936 | | | $ | 258,264 | | | $ | 420,671 | | | $ | 678,935 | |
The accompanying notes are an integral part of these consolidated financial statements.
AMERICAN STATES WATER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021
(Unaudited)
| | | | | | | | | | | | | | |
| | Nine Months Ended September 30, |
(in thousands) | | 2022 | | 2021 |
Cash Flows From Operating Activities: | | | | |
Net income | | $ | 59,767 | | | $ | 73,997 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
Depreciation and amortization | | 30,688 | | | 29,440 | |
Provision for doubtful accounts | | 833 | | | 873 | |
Deferred income taxes and investment tax credits | | (1,098) | | | 1,205 | |
Stock-based compensation expense | | 2,439 | | | 2,456 | |
Loss (gain) on investments held in a trust | | 6,445 | | | (2,313) | |
Other — net | | 263 | | | 273 | |
Changes in assets and liabilities: | | | | |
Accounts receivable — customers | | (1,760) | | | (8,748) | |
Unbilled receivable | | 4,393 | | | 2,564 | |
Other accounts receivable | | 3,179 | | | (935) | |
Receivables from the U.S. government | | 5,333 | | | (7,847) | |
Materials and supplies | | (1,281) | | | (1,621) | |
Prepayments and other assets | | 520 | | | (1,139) | |
Contract assets | | (3,993) | | | 172 | |
Regulatory assets | | (14,065) | | | (8,319) | |
Accounts payable | | (575) | | | 2,924 | |
Income taxes receivable/payable | | 947 | | | (3,235) | |
Contract liabilities | | 996 | | | (1,245) | |
Accrued pension and other postretirement benefits | | (3,070) | | | 1,416 | |
Other liabilities | | (28) | | | 2,005 | |
Net cash provided | | 89,933 | | | 81,923 | |
| | | | |
Cash Flows From Investing Activities: | | | | |
Capital expenditures | | (122,056) | | | (106,721) | |
Other investing activities | | 321 | | | 229 | |
Net cash used | | (121,735) | | | (106,492) | |
| | | | |
Cash Flows From Financing Activities: | | | | |
| | | | |
Receipt of advances for and contributions in aid of construction | | 5,489 | | | 10,636 | |
Refunds on advances for construction | | (3,941) | | | (3,613) | |
Repayments of long-term debt | | (377) | | | (28,356) | |
Proceeds from the issuance of long-term debt, net of issuance costs | | 34,826 | | | — | |
Net change in notes payable to banks | | 36,000 | | | 55,800 | |
Dividends paid | | (41,664) | | | (38,207) | |
Other financing activities | | (1,236) | | | (1,287) | |
Net cash provided (used) | | 29,097 | | | (5,027) | |
Net change in cash and cash equivalents | | (2,705) | | | (29,596) | |
Cash and cash equivalents, beginning of period | | 4,963 | | | 36,737 | |
Cash and cash equivalents, end of period | | $ | 2,258 | | | $ | 7,141 | |
| | | | |
Non-cash transactions: | | | | |
Accrued payables for investment in utility plant | | $ | 37,510 | | | $ | 29,101 | |
Property installed by developers and conveyed | | $ | 511 | | | $ | 6,093 | |
The accompanying notes are an integral part of these consolidated financial statements.
GOLDEN STATE WATER COMPANY
BALANCE SHEETS
ASSETS
(Unaudited)
| | | | | | | | | | | | | | |
(in thousands) | | September 30, 2022 | | December 31, 2021 |
Utility Plant | | | | |
Utility plant, at cost | | $ | 2,112,923 | | | $ | 2,022,417 | |
Less - Accumulated depreciation | | (528,035) | | | (522,672) | |
Net utility plant | | 1,584,888 | | | 1,499,745 | |
| | | | |
Other Property and Investments | | 31,975 | | | 38,659 | |
| | | | |
Current Assets | | | | |
Cash and cash equivalents | | 386 | | | 525 | |
Accounts receivable — customers (less allowance for doubtful accounts of $6,315 in 2022 and $3,168 in 2021) | | 29,431 | | | 31,870 | |
Unbilled receivable | | 18,181 | | | 20,525 | |
Other accounts receivable (less allowance for doubtful accounts of $53 in 2022 and $53 in 2021) | | 2,068 | | | 3,791 | |
| | | | |
| | | | |
Materials and supplies, at average cost | | 5,323 | | | 5,384 | |
Regulatory assets — current | | 13,048 | | | 8,897 | |
Prepayments and other current assets | | 5,642 | | | 4,223 | |
Total current assets | | 74,079 | | | 75,215 | |
| | | | |
Other Assets | | | | |
Operating lease right-of-use assets | | 8,804 | | | 10,439 | |
| | | | |
Other | | 14,427 | | | 14,424 | |
Total other assets | | 23,231 | | | 24,863 | |
| | | | |
Total Assets | | $ | 1,714,173 | | | $ | 1,638,482 | |
The accompanying notes are an integral part of these financial statements.
GOLDEN STATE WATER COMPANY
BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
(Unaudited)
| | | | | | | | | | | | | | |
(in thousands, except number of shares) | | September 30, 2022 | | December 31, 2021 |
Capitalization | | | | |
Common Shares, no par value: | | | | |
Authorized: 1,000 shares | | | | |
Outstanding: 170 shares in 2022 and 2021 | | $ | 357,970 | | | $ | 356,530 | |
Earnings reinvested in the business | | 275,429 | | | 259,156 | |
Total common shareholder’s equity | | 633,399 | | | 615,686 | |
Long-term debt | | 411,985 | | | 412,176 | |
Total capitalization | | 1,045,384 | | | 1,027,862 | |
| | | | |
Current Liabilities | | | | |
Intercompany payable to Parent | | 112,235 | | | — | |
Long-term debt — current | | 399 | | | 377 | |
Accounts payable | | 60,033 | | | 50,627 | |
Accrued other taxes | | 13,879 | | | 14,960 | |
Accrued employee expenses | | 12,430 | | | 12,867 | |
Accrued interest | | 6,052 | | | 4,210 | |
Income taxes payable to Parent | | 6,169 | | | 2,972 | |
Operating lease liabilities | | 1,780 | | | 2,029 | |
Other | | 11,410 | | | 10,505 | |
Total current liabilities | | 224,387 | | | 98,547 | |
| | | | |
Other Credits | | | | |
Intercompany payable to Parent | | — | | | 49,280 | |
Advances for construction | | 65,190 | | | 66,707 | |
Contributions in aid of construction — net | | 146,711 | | | 145,848 | |
Deferred income taxes | | 133,762 | | | 132,314 | |
Regulatory liabilities | | 17,609 | | | 32,979 | |
Unamortized investment tax credits | | 1,099 | | | 1,153 | |
Accrued pension and other postretirement benefits | | 58,535 | | | 61,170 | |
Operating lease liabilities | | 7,477 | | | 8,891 | |
Other | | 14,019 | | | 13,731 | |
Total other credits | | 444,402 | | | 512,073 | |
| | | | |
Commitments and Contingencies (Note 9) | | | | |
| | | | |
Total Capitalization and Liabilities | | $ | 1,714,173 | | | $ | 1,638,482 | |
The accompanying notes are an integral part of these financial statements.
GOLDEN STATE WATER COMPANY
STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2022 AND 2021
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, | |
(in thousands) | | 2022 | | 2021 | | 2022 | | 2021 | |
Operating Revenues | | | | | | | | | |
Water | | $ | 100,799 | | | $ | 102,768 | | | $ | 265,561 | | | $ | 269,430 | | |
Total operating revenues | | 100,799 | | | 102,768 | | | 265,561 | | | 269,430 | | |
| | | | | | | | | |
Operating Expenses | | | | | | | | | |
Water purchased | | 20,304 | | | 24,093 | | | 58,115 | | | 60,248 | | |
Power purchased for pumping | | 3,878 | | | 3,584 | | | 9,182 | | | 8,590 | | |
Groundwater production assessment | | 5,650 | | | 5,185 | | | 14,726 | | | 14,845 | | |
Supply cost balancing accounts | | 885 | | | (2,114) | | | (5,682) | | | (8,445) | | |
Other operation | | 7,273 | | | 7,287 | | | 20,908 | | | 19,476 | | |
Administrative and general | | 14,362 | | | 13,677 | | | 43,945 | | | 41,973 | | |
Depreciation and amortization | | 8,475 | | | 8,272 | | | 25,573 | | | 24,547 | | |
Maintenance | | 2,526 | | | 2,140 | | | 7,193 | | | 6,236 | | |
Property and other taxes | | 4,995 | | | 5,185 | | | 14,440 | | | 14,665 | | |
| | | | | | | | | |
Total operating expenses | | 68,348 | | | 67,309 | | | 188,400 | | | 182,135 | | |
| | | | | | | | | |
Operating Income | | 32,451 | | | 35,459 | | | 77,161 | | | 87,295 | | |
| | | | | | | | | |
Other Income and Expenses | | | | | | | | | |
Interest expense | | (5,950) | | | (5,184) | | | (16,650) | | | (16,625) | | |
Interest income | | 325 | | | 86 | | | 562 | | | 352 | | |
Other, net | | (70) | | | 429 | | | (3,070) | | | 2,684 | | |
Total other income and expenses, net | | (5,695) | | | (4,669) | | | (19,158) | | | (13,589) | | |
| | | | | | | | | |
Income before income tax expense | | 26,756 | | | 30,790 | | | 58,003 | | | 73,706 | | |
| | | | | | | | | |
In |