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American States Water's 4Q Profit Falls 53 Percent

The Associated Press

SAN DIMAS, Calif. (AP) — American States Water Co. said Thursday that fourth-quarter profit plunged by more than half, weighed down by impairment charges and compared with the year-earlier period boosted by a regulatory ruling that yielded $3.3 million in pretax income.

Net income of $2.9 million, or 16 cents per share, was down 53 percent from $6.1 million, or 35 cents per share, a year earlier. Excluding items, it earned 40 cents per share for the most recent quarter.

Quarterly revenue for the period ended Dec. 31 jumped 14 percent to $84.2 million from $74 million.

Analysts expected earnings of 36 cents per share on revenue of $83.4 million, according to a survey by Thomson Reuters. Analysts typically exclude items from their estimates.

The company's most recent quarterly results included a goodwill impairment charge of $7.7 million, or 27 cents per share, at a subsidiary of the San Dimas, Calif., water company.

It said an unrealized gain on purchased power contracts increased pretax income by $788,000, or 3 cents per share, during the quarter, compared with $522,000, or 2 cents per share, a year ago.

A favorable decision issued by the California Public Utilities Commission in November 2007 added about $3.3 million to pretax income, or 11 cents per share, to the 2007 fourth quarter results.

For the full year, net income was $22 million, or $1.26 per share, down 22 percent from $28 million, or $1.61 per share, in 2007. Excluding items, the company said it earned $1.48 per share for 2008.

Analysts were expecting a profit of $1.41 per share.

The company said the earnings decline was due to less water consumption and higher operating expenses at subsidiary Golden State Water Co., the $7.7 million charge and lower earnings at subsidiary American States Utility Services Inc.

Revenue for 2008 rose 6.8 percent to $318.7 million, from $301.4 million in 2007.

Shares of American States Water fell 28 cents to $30.32 in morning trading.