American Water Works Company, Inc. (NYSE: AWK), the largest publicly traded U.S. water and wastewater utility company, today reported results for the quarter ended June 30, 2013.
“American Water’s year-over-year quarterly results reflect a tale of two springs, with above-average rainfall and cooler temperatures in the second quarter of 2013 in sharp contrast to the same quarter in 2012, when much of the country was experiencing record-breaking drought and heat,” said Jeff Sterba, president and CEO of American Water. “However, our geographical diversity mitigated the full effect of this contrast and, when combined with our strong first quarter results, we are reaffirming our annual earnings guidance of $2.15 to $2.25 per share.”
Primarily due to weather, the company experienced decreases in revenues and earnings per share (EPS) for the second quarter of 2013 compared to second quarter of 2012. For the three months ended June 30, 2013, the company reported income from continuing operations of $101.3 million, or earnings per diluted share of $0.57, compared with $116.7 million, or $0.66 per diluted share, for the comparable period in 2012. This overall decrease is mainly attributable to decreased Regulated Business revenues due to lower customer usage in the second quarter of 2013 related to weather, which had an approximate $0.01-$0.02 negative impact on EPS, as compared to increased usage during the second quarter of 2012 related to weather, which had an approximate $0.06-$0.09 positive impact on EPS. The decrease is also attributable to approximately $9.0 million in higher depreciation expenses due to increased utility plant expenditures, including the company’s business transformation project to upgrade its technology systems. Also contributing to the decrease is a one-time regulatory adjustment due to the retroactive application of certain portions of the California rate case that was decided in June 2012.
The company’s capital expenditures for the first six months of 2013 were $429.8 million, compared to $476.3 million for the same period in the prior year. The company anticipates investing approximately $950 million in construction and other capital projects in 2013 to help ensure reliable water and wastewater services.