NYSE$AWR

American States Water Company · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a 20% increase in consolidated diluted EPS over Q4 2019, with contributions from all operating business segments.

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.

Headline financials

Total Revenue

$124M

Previous: $113M+9.9%
EPS (adj)

$0.54

Previous: $0.45+20.0%
Capital Expenditures

$35.6M

Previous: $40.9M-12.9%
Free Cash Flow

-$1.27M

Previous: -$8.29M+84.7%
Net Income

$20.2M

Previous: $16.7M+21.0%
Operating Income

$29.3M

Previous: $24.7M+18.4%
Gross Profit

$96.6M

Previous: $84.1M+14.9%
Cash & Equivalents

$36.7M

Previous: $1.33M+2653.9%
Total Assets

$1.79B

Previous: $1.64B+9.2%
Stock-Based Comp

-$11K

Previous: $49K-122.4%

Revenue & EPS history

American States Water · Revenue · Quarterly

$124M

Q4 2020+9.9%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

American States Water · $124M total across 3 segments · Q4 2020

  • Water
    $73.4M+2.4%
  • Contracted Services
    $40.7M+28.1%
  • Electric
    $10.1M+6.0%

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.

Tailwinds

  • 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

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.0%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+0.3%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+5.0%

Q2 2012

Best reaction

-5.3%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+2.4%+3.3%
Q4 2025+0.4%+0.7%-1.4%
Q3 2025+1.2%+2.4%-1.2%
Q1 2025+0.8%-4.3%-3.7%
Q4 2024+1.0%+4.1%+1.2%
Q3 2024-0.2%+1.9%-3.1%
Q2 2024+1.2%-1.1%-0.6%
Q1 2024+3.3%+5.3%-1.6%
Q4 2023-3.2%-5.5%-6.7%
Q3 2023-2.9%-6.5%-0.6%
Q2 2023+2.5%+3.6%-4.9%
Q1 2023-0.9%+0.3%+0.4%
Q4 2022-5.1%-3.9%-0.5%
Q3 2022+1.0%+4.0%+8.4%
Q2 2022+1.3%+0.8%-4.8%
Q1 2022-2.9%-3.5%+0.9%
Q4 2021-2.7%-3.3%+0.8%
Q3 2021-0.1%+3.8%+3.6%
Q2 2021+0.9%+2.7%+6.3%
Q1 2021+1.0%+0.4%-0.4%
Q4 2020-2.2%-6.3%-4.8%
Q3 2020+0.8%-2.3%-0.2%
Q2 2020-1.1%+3.9%+0.5%
Q1 2020+0.2%-2.6%+4.8%
Q4 2019-2.8%-15.1%-14.6%
Q3 2019-3.9%-9.6%-9.3%
Q2 2019-0.1%+7.7%+20.7%
Q1 2019-0.0%+0.8%+4.7%
Q4 2018-1.8%-1.2%+0.4%
Q3 2018+4.9%+5.5%+7.8%
Q2 2018+0.7%-0.7%+2.2%
Q1 2018-3.5%-0.9%-2.6%
Q4 2017-0.4%-6.0%-3.7%
Q3 2017-0.7%-1.6%+4.5%
Q2 2017-0.4%+1.6%-2.1%
Q1 2017+1.3%+0.7%+5.1%
Q4 2016+1.1%+0.7%-2.0%
Q3 2016+1.1%+1.1%+11.0%
Q2 2016-2.0%-0.6%-7.7%
Q1 2016-5.3%
Q4 2015-0.2%
Q3 2015+1.0%
Q2 2015-2.1%
Q1 2015-1.2%
Q4 2014-0.6%
Q3 2014-2.5%
Q2 2014+0.2%
Q1 2014-3.0%
Q4 2013+3.3%
Q3 2013+1.4%
Q2 2013-3.4%
Q1 2013-2.3%
Q4 2012+3.2%
Q3 2012+3.2%
Q2 2012+5.0%
Q1 2011+3.5%
Q1 2012-1.4%
Q4 2011+1.4%
Q4 2009+1.4%
Q3 2011+0.2%
Q3 2010+0.2%
Q2 2011+3.7%
Q2 2010+3.7%
Q4 2010+3.7%
Q1 2010+0.5%

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