01—Abstract
Summary
Summary of the 10-K filed February 27, 2014. Cited figures are marked; the original filing is the authoritative source.
American Water Works Company, Inc.'s 2013 10-K filing, dated February 27, 2014, details a year of significant investment in infrastructure and strategic growth within the regulated utility sector.
The company emphasizes its commitment to capital expenditures aimed at maintaining and upgrading its extensive water and wastewater systems, which is crucial for long-term operational reliability and regulatory compliance. Investors should note AWK's focus on regulated operations, which provides a stable revenue base, while also acknowledging the ongoing need for substantial investment to meet evolving environmental standards and customer demands. The filing highlights AWK's consistent performance in a sector characterized by stable demand and predictable cash flows.
Management's discussion and analysis likely underscores the company's ability to manage operational costs, secure favorable regulatory outcomes, and execute its capital investment plans effectively. The report also implicitly points to the company's strategy of pursuing both organic growth within its existing service territories and opportunistic acquisitions to expand its footprint, all within a framework of prudent financial management and shareholder value creation.
02—Key points
Key Highlights
- Significant investment in infrastructure and system upgrades is a core strategy for AWK, aimed at ensuring reliability and meeting regulatory requirements.
- The company primarily operates in regulated utility markets, providing a stable and predictable revenue stream for investors.
- AWK is focused on maintaining and enhancing its extensive water and wastewater systems, which underpins its long-term operational viability.
- The filing likely details AWK's approach to capital allocation, balancing essential maintenance with growth initiatives.
- Strategic growth, including organic expansion and potential acquisitions, is a key component of AWK's long-term value proposition.
- Emphasis on operational efficiency and cost management is crucial for AWK's ability to deliver consistent financial performance.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 27, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $2.88B$2.85B | +0.9% |
| Operating Expenses | $1.93B$1.93B | +0.1% |
| Operating Income | $948.00M$924.10M | +2.6% |
| Interest Expense | $308.16M$310.79M | −0.8% |
| Net Income | $369.00M$358.07M | +3.1% |
| EPS (Basic) | $2.08$2.03 | +2.5% |
| EPS (Diluted) | $2.06$2.01 | +2.5% |
| Shares Outstanding (Basic) | 178.00M176.44M | +0.9% |
| Shares Outstanding (Diluted) | 179.00M177.67M | +0.7% |
05—Questions
Frequently Asked Questions
What is American Water Works Company's primary business and revenue model?
American Water Works Company (AWK) is primarily engaged in the operation of water and wastewater services. Its revenue model is predominantly based on regulated utility operations, meaning its rates and services are overseen by state and local regulatory bodies, providing a stable and predictable revenue stream.
What are the main risk factors for American Water Works Company?
Key risk factors for AWK typically include regulatory changes that could impact rates and profitability, environmental regulations requiring significant capital investment, weather-related disruptions to operations, the ability to secure necessary permits for infrastructure projects, and the costs associated with maintaining and upgrading its aging infrastructure.
How does American Water Works Company plan to grow its business?
AWK's growth strategy generally involves a combination of organic growth within its existing service territories, driven by population increases and infrastructure improvements, and strategic acquisitions of other water and wastewater systems. Significant capital investment in infrastructure is also a key component of both maintaining existing operations and supporting future growth.
What is the company's approach to capital expenditures?
AWK prioritizes capital expenditures to maintain, upgrade, and expand its water and wastewater infrastructure. This includes investments in system renewal, regulatory compliance projects, and growth opportunities. The company aims to fund these expenditures through a combination of operating cash flows, debt, and equity issuances.
06—Continue