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American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today reported results for the year and quarter ended Dec. 31, 2012. The company reported year-over-year increases in revenues, net income and cash flow.
"2012 was a year of very strong financial performance on all fronts, with a 20 percent increase in earnings per share from continuing operations," said Jeff Sterba, president and CEO of American Water. "While sales were increased by abnormally hot, dry weather in the summer, EPS from continuing operations still increased 12 to 14 percent after adjusting for this estimated weather impact."
For the year, the company reported net income from continuing operations of $374.3 million, or $2.11 per diluted common share, compared with $304.9 million, or $1.73 per diluted common share, in 2011. A portion of the increase in revenues is associated with higher demand due to the hot, dry weather in the summer of 2012. The company reported the estimated impact to be approximately $0.13 to $0.16 per share.
Net income from continuing operations in the fourth quarter 2012 was reported at $54.2 million, or $0.31 per diluted common share, compared with $60.9 million, or $0.34 per diluted common share, in the fourth quarter of 2011. The fourth quarter was impacted by a $7 million donation to the American Water Charitable Foundation, accelerated maintenance costs, and increases in costs related to Hurricane Sandy and the company’s SAP implementation.
Net cash provided by operating activities for the year ended Dec. 31, 2012, increased approximately $147.2 million or 18.2 percent to $955.6 million, compared to $808.4 million for the year ended Dec. 31, 2011.
For the year, the company’s Regulated Businesses’ revenues were $2.6 billion, an increase of $195.5 million, or 8.3 percent, over 2011. Increases for the year were mainly driven by increased consumption due to the hot, dry weather in the summer of 2012 and rate authorizations awarded in recognition of the company’s infrastructure investments. For the fourth quarter of 2012, the company’s Regulated Businesses’ revenues increased by $40.4 million, or 7.2 percent, over the prior year’s period.