• Earnings Per Share (EPS): $0.95 for Q3 2024, up from $0.85 in Q3 2023.

• Water Utility Earnings: $0.84 per share, up from $0.72 last year.

• Electric Segment Earnings: $0.02 per share, down from $0.04 last year.

• Consolidated Revenue Increase: $10 million compared to last year.

• Water Segment Revenue Increase: $7.8 million due to rate increases.

• US Segment Revenue Increase: $2.2 million from higher management fees.

• Operating Expenses Increase: $5.3 million compared to Q3 2023.

• Interest Expense Increase: $1.9 million due to higher rates and borrowing.

• Other Income Increase: $3.4 million from gains on retirement plan investments.

• Year-to-Date Earnings: $2.42 per share, compared to $2.82 last year.

• Cash Flow from Operations: $134.2 million for the nine months ended September 30, 2024.

• Capital Expenditures: $172.5 million year-to-date, projected $210-$230 million for 2024.

• ASUS Earnings Contribution: $0.44 per share year-to-date, projected $0.54 to $0.57 for 2024.

• New Capital Upgrade Awards for ASUS: $54 million in 2024, up from $25.2 million in 2023.

• Warning! GuruFocus has detected 7 Warning Signs with AWR.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Earnings per share for the third quarter increased by $0.10 compared to the same period last year, driven by rate increases and investment gains.

• American States Water Co (NYSE:AWR) has invested $172.5 million in infrastructure year-to-date, with plans to reach a record high of $210 million to $230 million in capital expenditures for the year.

• The company reached a settlement agreement with the California Public Utilities Commission, allowing significant investments in water and electric infrastructure over the next few years.

• ASUS, a subsidiary of AWR, has been awarded a record high $54 million in new capital upgrade construction projects, expected to be completed between 2024 and 2027.

• The company's credit ratings remain strong, with an A stable rating from Standard & Poor's and an A2 stable rating from Moody's, reflecting financial stability.

Negative Points

• Higher operating expenses and interest costs partially offset the earnings increase, impacting overall profitability.

• The electric segment's earnings decreased due to delays in receiving a decision on the electric general rate case, affecting new rate implementations.

• Consolidated expenses increased by $5.3 million compared to the third quarter of 2023, driven by higher administrative, general, and depreciation expenses.

• Interest expenses increased by $1.9 million due to higher average interest rates and borrowing levels.

• The company faces uncertainties related to regulatory decisions, which could impact future financial performance and rate adjustments.