American States Water Company (NYSE:AWR) today reported net income of $18.7 million, or $0.97 per basic and fully diluted share for the quarter ended September 30, 2012, as compared to net income of $15.6 million, or $0.83 per basic and fully diluted share for the same period in 2011, a 17% increase in earnings per share.
Third Quarter 2012 Results
The table below sets forth a comparison of the third quarter diluted earnings per share by business segment:
|Q3 2012||Q3 2011||Change|
WaterFor the three months ended September 30, 2012, fully diluted earnings from the water operations of AWR’s Golden State Water Company (“GSWC”) subsidiary increased by $0.07 per share to $0.71 per share, as compared to $0.64 per share for the three months ended September 30, 2011. Items impacting the comparability of the two periods are detailed below:
- An increase in the water gross margin of approximately $1.3 million, or $0.04 per share, during the three months ended September 30, 2012 as compared to the same period in 2011 due primarily to rate increases in 2012 approved by the California Public Utilities Commission (“CPUC”) to recover infrastructure improvements and operating costs.
- A decrease in operating expenses (other than supply costs) of approximately $268,000, or $0.01 per share, due primarily to a decrease in administrative and general expenses resulting from lower outside service costs, labor and other employee related costs. These decreases were partially offset by an increase in depreciation expense resulting from additions to utility plant.
- An overall decrease in interest expense (net of interest income and other non-operating items) of approximately $800,000, or $0.02 per share, due primarily to: (i) a decrease in short-term bank borrowings; (ii) higher interest income earned on regulatory assets and a refund claim currently under review by the Internal Revenue Service; and (iii) gains recorded on one of GSWC’s investments.