California Water Service Group (NYSE:CWT) Q2 2023 Results Conference Call July 27, 2023 11:00 AM ET Company Participants Marty Kropelnicki - Chairman, President and Chief Executive Officer Dave Healey - Interim Vice President and Chief Financial Officer Greg Milleman - Vice President, Rates and Regulatory Affairs Conference Call Participants Angie Storozynski - Seaport Jonathan Reeder - Wells Fargo Davis Sunderland - Baird Operator Thank you for your patience, and welcome, everyone, to the California Water ...

2018 GRC HCBA and PCBA Filing In April and July of 2023, Cal Water submitted advice letters to true up the revenue under-collections for the 2022 annual WRAMs/MCBAs of its regulated districts. A net under-collection of $76.6 million is being recovered from customers in the form of 12, 18, and greater-than-18-month surcharges. The new surcharges incorporate net WRAM/MCBA balances that were previously approved for recovery and were implemented on May 5, 2023, except for Kern River Valley's surcharge, which is ...

California Water Service Group (NYSE:CWT) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET Company Participants Tom Scanlon - Corporate Controller Marty Kropelnicki - President and CEO Tom Smegal - VP, CFO and Treasurer Conference Call Participants Jonathan Reeder - Wells Fargo Gregg Orrill - UBS Davis Sunderland - Baird Operator Good day, and welcome to the California Water Service Group Q1 2023 Earnings Call. [Operator Instructions] I'd now like to welcome Mr. Tom Scanlon, Corporate Controller, ...

Financial Performance - Operating revenue for the three months ended March 31, 2023, was $131.1 million, a decrease of 24.3% compared to $172.993 million for the same period in 2022[14]. - Net loss for the three months ended March 31, 2023, was $22.334 million, compared to a net income of $0.894 million in the same period last year[14]. - Basic and diluted loss per share for the first quarter of 2023 was $(0.40), compared to earnings of $0.02 per share in Q1 2022[14]. - Total operating expenses for the same period were $148.624 million, down 9.3% from $163.855 million year-over-year[14]. - Total operating revenue for Q1 2023 was $131,100, a decrease of 24.3% from $172,993 in Q1 2022[28]. - Revenue from contracts with customers was $145,225 in Q1 2023, down 8.7% from $158,933 in Q1 2022[34]. - The decrease in net income of $23.3 million was primarily due to a decrease in operating revenue of $41.9 million, partially offset by a decrease in total operating expenses of $15.3 million[116]. - Total operating expenses decreased mainly due to a reduction in water production costs by $6.5 million and other operations expenses by $9.2 million, along with an increase in income tax benefit of $4.2 million[116]. Cash Flow and Financing - Cash provided by operating activities was $20.970 million for the three months ended March 31, 2023, down from $54.193 million in the same period of 2022[18]. - Net cash provided by financing activities was $62.526 million for the three months ended March 31, 2023, compared to $5.682 million in the same period last year[18]. - Cash flow from operations for Q1 2023 was $21.0 million, a decrease from $54.2 million in Q1 2022, primarily due to a one-time payment of $20.8 million received in 2022[151]. - The Company raised $18.2 million from the sale of 326,042 shares of common stock through its at-the-market equity program during the three months ended March 31, 2023[57]. - As of March 31, 2023, the company had short-term borrowings of $130.0 million, up from $70.0 million at the end of 2022[160]. Assets and Liabilities - Total assets as of March 31, 2023, were $3.886 billion, a slight increase from $3.851 billion at the end of 2022[11]. - Total equity decreased to $1.303 billion as of March 31, 2023, from $1.322 billion at the end of 2022[11]. - Current liabilities increased to $350.304 million as of March 31, 2023, compared to $294.650 million at the end of 2022[11]. - The book value per common share decreased to $23.19 as of March 31, 2023, from $23.70 at the end of 2022[177]. Regulatory and Compliance - The company filed its 2021 GRC requesting $1.0 billion for water infrastructure improvements, with a final decision on the case delayed[110]. - The California Public Advocates Office recommended a return on equity of 7.81% for Cal Water, which is lower than the Company's requested return of 10.35%[83]. - The Drought Response Memorandum Account (DREMA) is in effect for the first quarter of 2023, tracking lost revenues due to reduced sales from customer demand affected by usage reductions[113]. - The Interim Rates Memorandum Account (IRMA) tracks the difference between current interim rates and the rates that will eventually be approved, which is pending the CPUC's decision[112]. Capital Expenditures - Utility plant expenditures for the first quarter of 2023 totaled $81.980 million, an increase from $68.496 million in Q1 2022[18]. - Total capital expenditures for Q1 2023 were $82.0 million, compared to $68.5 million in Q1 2022, with a proposed $1.0 billion investment in water infrastructure from 2022 to 2024[154][178]. Employee Compensation - The Company granted 42,301 Restricted Stock Awards (RSAs) during the first three months of 2023, increasing the total outstanding RSAs to 65,941 shares as of March 31, 2023, with a weighted-average fair value of $55.47[54]. - Approximately $3.5 million of total unrecognized compensation cost related to RSAs is expected to be recognized over a weighted average period of 2.0 years[53]. - The Company granted 42,464 performance-based Restricted Stock Units (RSUs) in Q1 2023, resulting in a total of 100,072 outstanding RSUs as of March 31, 2023, with a weighted-average fair value of $55.38[55]. - The total unrecognized compensation cost related to RSUs is approximately $3.9 million, expected to be recognized over a weighted average period of 2.1 years[55]. Market Conditions and Future Outlook - The company expects future net income and net other income to be significantly affected by market conditions impacting unrealized gains or losses on non-qualified benefit plan investments[117]. - The company expects to require approximately $200 million in capital investments to comply with proposed PFAS regulations if adopted[185]. - Management believes that supplies pumped from underground aquifers and purchased from wholesale suppliers will meet customer demand during 2023 and beyond[182]. Water Supply and Usage - Annual groundwater extraction from adjudicated groundwater basins is approximately 5.7 billion gallons, representing 10.8% of total annual water supply pumped from wells[181]. - Annual groundwater extraction from managed groundwater basins is approximately 31.5 billion gallons, accounting for 59.9% of total annual water supply pumped from wells[181]. - Annual groundwater extraction from unmanaged groundwater basins is approximately 15.4 billion gallons, which is 29.3% of total annual water supply pumped from wells[181]. - As of March 30, 2023, California's snowpack water content was 190% of long-term averages, with the northern Sierra region being crucial for urban water supplies[182]. Internal Controls and Management - The company plans to implement a remediation plan for internal control weaknesses in the second quarter of 2023[195]. - Management is committed to continuous improvement of financial reporting controls and will review internal controls diligently[194].

| --- | --- | --- | --- | --- | --- | |---------------|--------------------------------------------------------|----------------------------------------|-------|-------|-----------------| | | C A L I F O R N I A | WATER SERVICE GROUP INVESTING FOR LIFE | | | CWT LISTED NYSE | | March 2, 2023 | Fourth Quarter and Year End 2022 Results Presentation | | | | | | | | | | | | INVESTOR RELATIONS INVESTOR RELATIONS Tom Smegal Vice President, CFO & Treasurer Presentation Overview o Financial Highlights and Earnings ...

California Water Service Group (CWT) Q4 2022 Earnings Conference Call March 2, 2023 11:00 AM ET Corporate Participants Tom Scanlon - Corporate Controller Marty Kropelnicki - President and Chief Executive Officer Tom Smegal - Vice President, Chief Financial Officer and Treasurer Greg Milleman - Vice President, Rates and Regulatory Affairs Conference Call Participants Angie Storozynski - Seaport Research Partners Jonathan Reeder - Wells Fargo Securities Davis Sunderland - Baird Operator Ladies and gentlemen, ...

Although the COVID-19 pandemic did not have a significant impact on our business in 2022, we are unable to accurately predict the full impact that the ongoing COVID-19 pandemic will have on our business, results of operations, financial condition or liquidity due to numerous uncertainties, including the duration and severity of the outbreak, potential resurgence and /or mutations of the virus, and the development, distribution and public acceptance of treatments and vaccines. As an "essential business" duri ...

California Water Service Group (NYSE:CWT) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET Company Participants David Healey - VP, Corporate Controller, Assistant Treasurer & CAO Thomas Smegal - VP, CFO & Treasurer Greg Milleman - VP, Rates and Regulatory Affairs Martin Kropelnicki - President, CEO & Director Paul Townsley - VP, Corporate Development Conference Call Participants Angie Storozynski - Seaport Research Partners Jonathan Reeder - Wells Fargo Securities Operator Hello, and thank you ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) FORM 10-Q ☒ 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 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13883 CALIFORNIA WATER SERVICE GROUP (Exact name of registrant as specified in its charter) Delaware 77-0448 ...

California Water Service Group (NYSE:CWT) Q2 2022 Earnings Conference Call July 28, 2022 11:00 AM ET Company Participants David Healey - Vice President and Corporate Controller Thomas Smegal - Vice President, Chief Financial Officer Martin Kropelnicki - President and CEO Conference Call Participants Ben Kallo - Baird Operator Good morning and welcome to the California Water Service Group Quarter Two, 2022 Earnings Release Call. All lines have been placed on mute to prevent any background noise. After the sp ...