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Mar 31, 2020

American Water Q1 2020 Earnings Report

American Water reported first quarter results, showing an increase in GAAP diluted earnings per share and adjusted diluted earnings per share.

Key Takeaways

American Water reported a strong first quarter in 2020, with GAAP diluted earnings per share increasing to $0.68 and adjusted diluted earnings per share increasing by 9.8% to $0.67. Growth was seen in both Regulated and Market-Based Businesses, with significant capital investments made to improve infrastructure and expand services. The company is confident in delivering its 2020 adjusted earnings guidance.

GAAP diluted earnings per share increased to $0.68 from $0.62 in the first quarter of 2019.

Adjusted diluted earnings per share increased by 9.8% to $0.67, compared to $0.61 in the previous year.

The company invested $457 million, primarily in Regulated Businesses, and added over 9,400 customers through acquisitions and organic growth.

The Board of Directors approved a 10% increase in the quarterly dividend, marking the eighth consecutive year of increases of 10% or more.

Total Revenue
$844M
Previous year: $813M
+3.8%
EPS
$0.67
Previous year: $0.61
+9.8%
Customer Connections Added
9.4K
Gross Profit
$461M
Previous year: $448M
+2.9%
Cash and Equivalents
$556M
Previous year: $63M
+782.5%
Free Cash Flow
-$228M
Previous year: -$158M
+44.3%
Total Assets
$23.5B
Previous year: $21.5B
+9.7%

American Water

American Water

Forward Guidance

The Company expects its 2020 earnings to be in the range of $3.85 - $3.95 per share on a GAAP basis and adjusted (non-GAAP) earnings guidance range is $3.79 - $3.89 per share.