-----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, CwrMZZR+daLuuJZsJA+NGf8xf2i0mGNfimTLxrY9wRB4RpS28velZbiG6fA1cz/X uFrNzPmvE6CASICSQmxA9A== 0001157523-07-005082.txt : 20070514 0001157523-07-005082.hdr.sgml : 20070514 20070514080050 ACCESSION NUMBER: 0001157523-07-005082 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070514 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070514 DATE AS OF CHANGE: 20070514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHWEST WATER CO CENTRAL INDEX KEY: 0000092472 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [4941] IRS NUMBER: 951840947 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08176 FILM NUMBER: 07844127 BUSINESS ADDRESS: STREET 1: ONE WILSHIRE BUILDING STREET 2: 624 SOUTH GRAND AVENUE, SUITE 2900 CITY: LOS ANGELES STATE: CA ZIP: 90017-3782 BUSINESS PHONE: 213 929 1800 MAIL ADDRESS: STREET 1: ONE WILSHIRE BUILDING STREET 2: 624 SOUTH GRAND AVENUE, SUITE 2900 CITY: LOS ANGELES STATE: CA ZIP: 90017-3782 FORMER COMPANY: FORMER CONFORMED NAME: SUBURBAN WATER SYSTEMS DATE OF NAME CHANGE: 19751202 8-K 1 a5400749.txt SOUTHWEST WATER COMPANY 8K ================================================================================ 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): May 14, 2007 SOUTHWEST WATER COMPANY (Exact Name of Registrant as Specified in Its Charter) Delaware 0-8176 95-1840947 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) One Wilshire Building 624 South Grand Avenue, Suite 2900 Los Angeles, CA 90017-3782 (Address of principal executive offices) (Zip Code) (213) 929-1800 (Registrant's telephone number, including area code) ------------------ (Former name, former address and former fiscal year, if changed since last report date) ------------------ 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: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 425 under the Securities Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange 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 8.01 Other Events On May 14, 2007 a news release was issued announcing financial results for the quarter ended March 31, 2007. The information contained in the news release is incorporated herein by reference and furnished as Exhibit 99.1. Item 9.01 Financial Statements and Exhibits (c) Exhibits Exhibit No. Description - ------- ----------- 99.1 On May 14, 2007 a news release was issued announcing financial results for the quarter ended March 31, 2007. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. SOUTHWEST WATER COMPANY (Registrant) By: /s/ Cheryl L. Clary --------------------------------- 3 Name: Cheryl L. Clary Title: Chief Financial Officer Date: May 14, 2007 3 EX-99.1 2 a5400749ex991.txt EXHIBIT 99.1 Exhibit 99.1 Southwest Water Company Reports First Quarter 2007 Financial Results LOS ANGELES--(BUSINESS WIRE)--May 14, 2007--Southwest Water Company (NASDAQ:SWWC) today reported financial results for the first quarter ended March 31, 2007. For the quarter, revenues declined 3% to $48.1 million from $49.6 million in the first quarter of 2006. Operating income declined 2% to $2.9 million compared with $3.0 million in 2006. Net income was down 20% to $614,000, or $0.03 per diluted share, compared to $772,000, or $0.03 per diluted share, in 2006. Weighted average diluted shares outstanding for the year increased 4% to 24.2 million. "Our Utility Group recorded a solid financial performance, largely driven by our utility in California, which benefited from higher water consumption related to warm, dry weather and last year's rate increase," said Mark A. Swatek, Southwest Water chief executive officer and chairman. "However our Services Group was challenged by cold, wet weather in Texas, which limited our ability to carry out certain construction and repair work in the field, as well as increased expenses in our southeast division. "We have made significant strides in improving the operations of our Services Group," continued Swatek. "We have implemented turnaround plans for under-performing units and have recently brought in new management. We still have a handful of less profitable business units that we are working on, but we expect to see improved results from these areas over the next several quarters." Division Results Revenues in the Utility Group were $20.5 million for the quarter, up from $18.3 million in 2006, which include intersegment revenues of $452,000 and $366,000, respectively. This 12% increase was primarily due to increased consumption and a rate increase in California in mid-2006 and, to a lesser degree, increased connections in New Mexico and Texas and a rate increase in the fourth quarter of 2006 at one of the company's Texas utilities. Utility Group operating income in the first quarter increased 12% to $6.0 million compared with $5.3 million in 2006, primarily due to the revenue increases partially offset by increased depreciation expense and higher operating expenses for sewage treatment and contract operation fees in New Mexico and Texas. Depreciation expense rose as a result of increases in 2006 capital expenditures in Texas and New Mexico and a higher depreciation rate adopted at the company's California utility related to a 2006 rate case. Additionally, the quarter includes $200,000 of legal and appraisal costs associated with the condemnation litigation against the company's New Mexico utility. According to New Mexico statute, the company will be entitled to reimbursement of these costs if the company prevails in the legal actions. Services Group revenues were $33.7 million in the first quarter, down from $37.9 million in 2006, which includes intersegment revenues of $7.2 million and $7.5 million, respectively. This 11% decrease was due to reduced field work in Texas and a reduction in the company's contract base in the southeast division. Services Group operating income for the quarter decreased 68% to $343,000 from $1.1 million in 2006. The reduction in operating margin was primarily due to increased costs in the southeast division to correct past performance issues and close out contracts. SG&A and Capital Expenditures Consolidated SG&A expenses for the quarter were $8.5 million, representing 18% of revenues, versus $8.4 million, or 17% of revenues, in the first quarter of 2006. Total company funded capital expenditures were $7.0 million, representing on-going investment in the company's water and wastewater infrastructure. Conference Call The company will discuss its first quarter results in a conference call and webcast to be held today, May 14 2007, at 10:00 a.m. Eastern time (7:00 a.m. Pacific). The conference call can be accessed on the company's website at www.swwc.com. For those unable to participate in the live webcast, a replay will be available shortly after the call on the company's website. A telephonic replay will also be available beginning at 12:00 p.m. Eastern (9:00 a.m. Pacific) until midnight May 21, 2007 at 888-286-8010 (international callers 617-801-6888), passcode 18283269. Southwest Water Company provides a broad range of services including water production, treatment and distribution; wastewater collection and treatment; utility billing and collection; utility infrastructure construction management; and public works services. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than two million people across the US depend on Southwest Water for high-quality, reliable service. Additional information may be found on the company's website: www.swwc.com. This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including expectations relating to future revenues and income, the company's ability to gain new business and control costs, involve risks and uncertainties, as well as assumptions that, if they prove incorrect or never materialize, could cause the results of the company to differ materially from those expressed or implied by such forward-looking statements. Actual results may differ materially from these expectations due to changes in regulatory, political, weather, economic, business, competitive, market, environmental and other factors. More detailed information about these factors is contained in the company's filings with the Securities and Exchange Commission, including under the caption "Risk Factors" in the company's 2006 Annual Report on Form 10-K and Quarterly Report for the quarter ended March 31, 2007 on Form 10-Q, which the company anticipates filing shortly. The company assumes no obligation to update these forward-looking statements to reflect any change in future events. FINANCIAL HIGHLIGHTS - SOUTHWEST WATER COMPANY (unaudited and in thousands, except per share amounts) Three Months Ended March 31, 2007 2006 ------------------------- Operating revenues $48,074 $49,594 Operating income 2,943 3,017 Net income 614 772 Diluted earnings per common share $0.03 $0.03 Weighted average outstanding common shares: Diluted 24,214 23,307 CONSOLIDATED BALANCE SHEET INFORMATION March 31, December 31, 2007 2006 ------------------------- Current assets $ 45,023 $ 48,257 Property, plant and equipment, net 395,246 389,625 Total assets $494,384 $491,693 Current liabilities $ 28,195 $ 35,830 Long-term debt 135,709 128,624 Contributions in aid of construction 110,564 110,024 Stockholders' equity 168,099 166,527 Total liabilities and stockholders' equity $494,384 $491,693 CONTACT: Southwest Water Company DeLise Keim, VP Corp. Communications, 213-929-1846 www.swwc.com or PondelWilkinson Inc. Robert Jaffe, 310-279-5969 www.pondel.com -----END PRIVACY-ENHANCED MESSAGE-----