American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today reported increases in revenues, net income and earnings per share for the second quarter ended June 30, 2012, as compared to the second quarter of 2011.
“Our results reflect the continued execution of our strategic initiatives to drive operational excellence and continuous improvement, expand in attractive markets and maintain strong financial discipline,” said Jeff Sterba, president and CEO of American Water. “In addition, hot and dry weather in a number of our states led to record pumpage, which had a significant impact on earnings. While not exact, we believe this added in the range of $0.06 to $0.09 to earnings per share for the second quarter.”
For the three months ended June 30, 2012, the company reported income from continuing operations of $116.7 million or diluted earnings per share of $0.66, compared with $74.8 million, or $0.42 per share, for the comparable period in 2011.
For the second quarter of 2012, the company’s revenues increased 11.5 percent, or $76.7 million, over the comparable quarter in 2011 to $745.6 million. Operating expenses for the three months ended June 30, 2012, totaled $475.0 million, an increase of $7.5 million, or 1.6 percent, compared to the same period in 2011.Net cash provided by operating activities for the six months ended June 30, 2012, was $316.9 million, compared to $262.4 million for the second quarter in 2011, which was primarily driven by the increase in operating revenues and changes in working capital. The company’s capital expenditures for the six months ended June 30, 2012, were $476.3 million, compared to $391.8 million for the same period in the prior year. The increase is mainly attributable to increased spending on infrastructure replacement projects due to the milder winter weather, as well as expenditures associated with the company’s business transformation project and the replacement of an aged water treatment facility in New Jersey. The company anticipates investing more than $900 million in construction and other capital projects in 2012 to help ensure reliable water and wastewater services.