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Dec 31, 2020
American States Water Q4 2020 Earnings Report
Reported a 20% increase in consolidated diluted EPS over Q4 2019, with contributions from all operating business segments.
Key Takeaways
American States Water Company reported an increase in basic and fully diluted earnings per share for the fourth quarter ended December 31, 2020, compared to the same period in 2019. The diluted earnings per share increased from $0.45 to $0.54.
Consolidated diluted earnings per share increased to $0.54 from $0.45 year-over-year.
Water segment diluted earnings increased to $0.32 per share, up from $0.28 in the prior year.
Electric segment diluted earnings increased to $0.07 per share, compared to $0.05 in the same period of 2019.
Contracted services segment diluted earnings increased to $0.17 per share, up from $0.12 year-over-year, driven by an increase in construction activity.
American States Water
American States Water
American States Water Revenue by Segment
Revenue by Segment
Water Revenue
CapyFin.comElectric Revenue
CapyFin.comContracted Services Revenue
CapyFin.com Forward Guidance
GSWC's pending water rate case application was filed in July 2020 prior to this effective date. GSWC’s next general rate case application will be filed in 2023 to establish new rates for the years 2025 – 2027 and, based on the August 27, 2020 decision, may not include the WRAM or MCBA for those years.
Positive Outlook
- GSWC is entitled to keep the use of the Water Revenue Adjustment Mechanism (WRAM)
- GSWC is entitled to keep the Modified Cost Balancing Account (MCBA) through the year 2024.
- Utilities in California required to file transition plans to address the eventual discontinuance of the emergency customer protections.
- AWR's Board of Directors approved a first quarter dividend of $0.335 per share on AWR's Common Shares.
- AWR has paid dividends on its Common Shares for over 81 consecutive years, and has increased the dividends received by shareholders each calendar year for 66 consecutive years
Challenges Ahead
- GSWC’s next general rate case application will be filed in 2023 to establish new rates for the years 2025 – 2027 and, based on the August 27, 2020 decision, may not include the WRAM or MCBA for those years.
- COVID-19 pandemic continues to cause significant volatility in the financial markets.
- The resolution also extended the COVID-19-related memorandum accounts established to track incremental costs associated with complying with the resolution
- Procedural hearing held in GSWC’s pending water general rate case that will set new rates for the years 2022 – 2024.
- The CPUC adopted a resolution that extended the existing emergency customer protections previously established by the CPUC through June 30, 2021, including the suspension of service disconnections for non-payment, in response to the on-going COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income