10-KPeriod: FY2013

American Water Works Company, Inc. Annual Report, Year Ended Dec 31, 2013

Filed February 27, 2014For Securities:AWK

Summary

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.

Financial Highlights

49 data points
Beta

Revenue

$2.88B

Net Income

$369.00M

12.8% Net Margin

EPS (Diluted)

$2.06

Total Assets

$15.06B

Cash & Equivalents

$27.00M

Free Cash Flow

-$84.25M

Financial Statements
Beta
Revenue$2.88B
Operating Expenses$1.93B
Operating Income$948.00M
Interest Expense$308.16M
Net Income$369.00M
EPS (Basic)$2.08
EPS (Diluted)$2.06
Shares Outstanding (Basic)178.00M
Shares Outstanding (Diluted)179.00M

Key Highlights

  • 1Significant investment in infrastructure and system upgrades is a core strategy for AWK, aimed at ensuring reliability and meeting regulatory requirements.
  • 2The company primarily operates in regulated utility markets, providing a stable and predictable revenue stream for investors.
  • 3AWK is focused on maintaining and enhancing its extensive water and wastewater systems, which underpins its long-term operational viability.
  • 4The filing likely details AWK's approach to capital allocation, balancing essential maintenance with growth initiatives.
  • 5Strategic growth, including organic expansion and potential acquisitions, is a key component of AWK's long-term value proposition.
  • 6Emphasis on operational efficiency and cost management is crucial for AWK's ability to deliver consistent financial performance.

Frequently Asked Questions

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.

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.

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.

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.