-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Irz+PNud9x3k6m2pQEIJ5+6a493FXqfJc4v7LDGbrVXzloqVvFJhM8o6tY9TcVpM 84m1Tj51KQ2+ooKmPGx4hw== 0000950005-05-000696.txt : 20051027 0000950005-05-000696.hdr.sgml : 20051027 20051027141348 ACCESSION NUMBER: 0000950005-05-000696 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20051026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051027 DATE AS OF CHANGE: 20051027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALIFORNIA WATER SERVICE GROUP CENTRAL INDEX KEY: 0001035201 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] IRS NUMBER: 770448994 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13883 FILM NUMBER: 051159642 BUSINESS ADDRESS: STREET 1: 1720 N FIRST ST STREET 2: C/O CALIFORNIA WATER SERVICE CO CITY: SAN JOSE STATE: CA ZIP: 95112 BUSINESS PHONE: 4083678200 MAIL ADDRESS: STREET 1: 1720 FIRST ST STREET 2: C/O CALIFORNIA WATER SERVICE CO CITY: SAN JOSE STATE: CA ZIP: 95112 8-K 1 p19547_8-k.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): October 26, 2005 ------------------- CALIFORNIA WATER SERVICE GROUP ------------------------------ (Exact name of registrant as specified in its charter) Delaware 1-13883 77-0448994 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 1720 North First Street, San Jose, CA. 95112 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 1-408-367-8200 ----------------------------- Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR Exchange 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c ) under the Exchange Act (17 CFR 240.13e-4(c )) - -------------------------------------------------------------------------------- Item 2.02 Results of Operations and Financial Condition. On October 26, 2005, the registrant issued the press release attached to this report as Exhibit 99, which announces the results of operations for the third quarter of 2005. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. The list of exhibits called for by this Item is incorporated by reference to the exhibit index to this report. SIGNATURES Pursuant to the requirement of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CALIFORNIA WATER SERVICE GROUP (Registrant) Date: October 26, 2005 By: /s/ John S. Tootle -------------- John S. Tootle Acting Vice President, Chief Financial Officer and Treasurer Exhibit Index Exhibit No. Description - ----------- ----------- 99 Press release of the registrant dated October 26, 2005 which announces the results of operations for the third quarter of 2005. [GRAPHIC OMITTED] NEWS RELEASE CALIFORNIA WATER SERVICE GROUP [OBJECT OMITTED] 1720 North First Street San Jose, CA 95112-4598 October 26, 2005 For Immediate Release Contact: John S. Tootle (408) 367-8216 (analysts) Shannon Dean (310) 257-1435 (media) CAL WATER ANNOUNCES THIRD QUARTER 2005 RESULTS; BOARD DECLARES 244TH CONSECUTIVE QUARTERLY DIVIDEND - -------------------------------------------------------------------------------- SAN JOSE, CA - California Water Service Group (NYSE : CWT) today announced net income of $13.1 million and diluted earnings of $0.71 per share for the third quarter of 2005, compared to net income of $10.8 million and diluted earnings of $0.59 per share in the third quarter of 2004. Revenue for the third quarter increased 4%, or $4.0 million, to $101.1 million. Rate increases added $4.4 million to revenue, while sales to new customers added $1.2 million. Partially offsetting these higher revenues was a $1.6 million decrease due to reduced usage by existing customers compared to the same period last year. Total operating expenses for the third quarter increased 3%, or $2.4 million. Water production costs decreased by 2%, or $0.8 million, due to lower customer water usage and power costs. Other operations expenses were unchanged from the same period last year, and income taxes increased $1.9 million or 27% due to higher pre-tax earnings. Maintenance expense increased by 7%, or $0.2 million, as the Company made necessary repairs and upgrades to pumping equipment and water mains. Depreciation expense increased 12%, or $0.8 million, due to higher 2004 capital expenditures. Third quarter 2005 earnings were enhanced by a $0.8 million increase in other income, primarily due to an increase of $0.7 million for sales of property no longer used and useful in serving customers. "We are pleased with our results for the quarter, although our sales continue to be impacted by reduced customer usage in some of our operating areas. By pursuing reasonable rate relief, holding the line on expenses, and continuing to execute our strategic real estate sales program, we were able to deliver good results," said President and Chief Executive Officer Peter C. Nelson. At its meeting today, the Company's Board of Directors declared the 244th consecutive dividend in the amount of $0.2850 per share of common stock, to be paid on November 18, 2005, to stockholders of record on November 7, 2005. The regular dividend on Series C preferred stock was also declared. Investors are invited to listen to the Company's analyst teleconference, which is scheduled for 4:00 p.m. EDT / 1:00 p.m. PDT on October 27, 2005. The call-in number is 1-866-243-8959 and the ID No. is 789267. A replay is available through December 26, 2005, by calling 1-888-266-2081 and entering pass code 789267. California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., and CWS Utility Services. Together these companies provide regulated and non-regulated water service to more than 2 million people in 100 California, Washington, New Mexico, and Hawaii communities. Group's common stock trades on the New York Stock Exchange under the symbol "CWT." This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("Act"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the Act. Forward-looking statements are based on currently available information, expectations, estimates, assumptions and projections, and management's judgment about the Company, the water utility industry and general economic conditions. Such words as expects, intends, plans, believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not guarantees of future performance. They are subject to uncertainty and changes in circumstances. Actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause a result different than expected or anticipated include: governmental and regulatory commissions' decisions, including decisions on proper disposition of property; changes in regulatory commissions' policies and procedures; the timeliness of regulatory commissions' actions concerning rate relief; new legislation; the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulations on internal controls; electric power interruptions; increases in suppliers' prices and the availability of supplies including water and power; fluctuations in interest rates; changes in environmental compliance and water quality requirements; acquisitions and our ability to successfully integrate acquired companies; the ability to successfully implement business plans; changes in customer water use patterns; the impact of weather on water sales and operating results; access to sufficient capital on satisfactory terms; civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; the involvement of the United States in war or other hostilities; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; and, other risks and unforeseen events. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph. The Company assumes no obligation to provide public updates of forward-looking statements. Additional information is available online at www.calwatergroup.com. --------------------- Attachments (2). ### CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)
Unaudited September 30, December 31, 2005 2004 ---- ---- ASSETS Utility plant: Utility plant $ 1,199,681 $ 1,144,074 Less accumulated depreciation and amortization 366,019 343,769 ----------- ----------- 833,662 800,305 ----------- ----------- Current assets: Cash and cash equivalents 23,791 18,820 Rece Receivables, net of allowances for uncollectible accounts of $416 at September 30, 2005 and $ 287 at December 31, 2004 Customers 22,779 15,867 Income taxes -- 7,298 Other 3,865 3,147 Unbilled revenue 14,271 9,307 Materials and supplies, at average cost 4,017 3,161 Prepaid pension expense 2,599 3,671 Taxes and other prepaid expenses 4,055 9,122 ----------- ----------- Total current assets 75,377 70,393 ----------- ----------- Regulatory assets 55,449 53,477 Other assets 20,329 18,678 ----------- ----------- $ 984,817 $ 942,853 =========== =========== CAPITALIZATION AND LIABILITIES Capitalization: Common stock, $.01 par value $ 184 $ 184 Additional paid-in capital 131,991 131,271 Retained earnings 162,410 156,851 Accumulated other comprehensive loss (701) (701) ----------- ----------- Total common stockholders' equity 293,884 287,605 Preferred stock 3,475 3,475 Long-term debt, less current maturities 274,361 274,821 ----------- ----------- Total capitalization 571,720 565,901 ----------- ----------- Current liabilities: Current maturities of long-term debt 1,144 1,100 Accounts payable 29,541 19,745 Accrued expenses and other liabilities 51,440 36,367 ----------- ----------- Total current liabilities 82,125 57,212 Unamortized investment tax credits 2,721 2,721 Deferred income taxes 56,741 54,826 Regulatory and other liabilities 36,328 35,986 Advances for construction 139,298 131,292 Contributions in aid of construction 95,884 94,915 Commitments and contingencies -- -- ----------- ----------- $ 984,817 $ 942,853 =========== ===========
CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Unaudited
For the three months ended: For the nine months ended: September 30, September 30, September 30, September 30, 2005 2004 2005 2004 ---- ---- ---- ---- Operating revenue $101,128 $ 97,104 $242,888 $246,189 -------- -------- -------- -------- Operating expenses: Water production costs 39,205 40,052 88,420 94,776 Other operations 22,307 22,404 66,054 64,628 Maintenance 3,877 3,640 11,295 9,853 Depreciation and amortization 7,287 6,518 21,289 19,557 Income taxes 8,968 7,050 14,571 14,852 Property and other taxes 3,381 2,942 9,438 8,551 -------- -------- -------- -------- Total operating expenses 85,025 82,606 211,067 212,217 -------- -------- -------- -------- Net operating income 16,103 14,498 31,821 33,972 -------- -------- -------- -------- Other income and expenses: Non-regulated income, net 778 650 2,121 1,773 Gain on sale of non-utility property 669 6 728 7 -------- -------- -------- -------- Total other income and expenses 1,447 656 2,849 1,780 -------- -------- -------- -------- Interest expense: Interest expense 4,660 4,615 13,959 14,013 Less capitalized interest 225 250 675 550 -------- -------- -------- -------- Total interest expense 4,435 4,365 13,284 13,463 -------- -------- -------- -------- Net income $ 13,115 $ 10,789 $ 21,386 $ 22,289 ======== ======== ======== ======== Earnings per share Basic $ 0.71 $ 0.59 $ 1.16 $ 1.27 ======== ======== ======== ======== Diluted $ 0.71 $ 0.59 $ 1.16 $ 1.27 ======== ======== ======== ======== Weighted average shares outstanding Basic 18,384 18,345 18,376 17,418 ======== ======== ======== ======== Diluted 18,422 18,362 18,412 17,433 ======== ======== ======== ======== Dividends per share of common stock $ 0.2850 $ 0.2825 $ 0.8550 $ 0.8475 ======== ======== ======== ========
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