American States Water pany(AWR)2024-11-07 20:25Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q3 2024 were 0.85 in Q3 2023, primarily due to rate increases in the Water segment and gains on investments [8][16] - Consolidated revenue for Q3 increased by 7.8 million due to rate increases [20] - Year-to-date EPS as of September was 2.82 in the same period of 2023, affected by retroactive rates and revenue adjustments [24][25] Business Line Data and Key Metrics Changes - Golden State Water reported earnings of 0.72 in Q3 2023, driven by increased water rates [16] - Electric segment earnings decreased to 0.04 per share due to pending rate decisions and rising interest costs [18] - ASUS's earnings were consistent at 0.12 in 2023, with year-to-date earnings at 0.38 [44] Market Data and Key Metrics Changes - The company invested 210 million to 752.2 million in 2018 to 54 million in new capital upgrade construction projects, indicating a strong competitive position in securing government contracts [15][45] - The company maintains a dividend growth strategy, targeting a compound annual growth rate of over 7% in dividends over the long term [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of new rates and infrastructure investments on future earnings, with projections for ASUS to contribute 0.63 per share in 2025 [44][59] - The company anticipates continued growth in its rate base and is preparing for potential regulatory changes that could affect revenue [30][34] Other Important Information - The company maintains strong credit ratings, with American States Water rated A Stable and Golden State Water rated A+ Stable by S&P [29] - The settlements regarding rate cases for both water and electric utilities are expected to enhance revenue stability and growth [36][41] Q&A Session Summary Question: Year-to-date EPS for Bear Valley electric operations - Management noted that if the proposed decision had been approved, the year-to-date EPS would reflect a cumulative impact of 0.07 for 2023 and 2024 [47][48] Question: Timing for recording final orders - Management indicated that if a final decision is received before the 10-K filing, it could be booked in 2024 [49][50] Question: Increase in capital work for ASUS - The increase is attributed to government funding and the addition of new bases, but management cautioned that this level may not be sustainable [51][52] Question: Annual construction expense guidance for 2025 - Management suggested that while there may be some increase, it would not be a significant jump due to the need to manage renewal and replacement work [55][56] Question: Factors driving the increase in 2024 guidance range - The increase is due to better-than-expected construction conditions and contributions from new operations at military bases [60][61]