Summary
American Water Works Company, Inc. (AWK) reported a significant turnaround in its financial performance for the first quarter of 2010, with net income of $30.8 million, a substantial improvement from a net loss of $413.1 million in the same period of 2009. This improvement was primarily driven by the absence of a large goodwill impairment charge that negatively impacted the prior year's results. Operating revenues saw a healthy increase of 6.9% to $588.1 million, supported by both regulated and non-regulated business segments, largely due to rate increases in regulated operations and growth in the Contract Operations Group within the non-regulated segment. Despite increased operating expenses and interest costs, the company demonstrated solid operational execution. Capital expenditures remain substantial, with a focus on infrastructure renewal and growth through acquisitions. The company's liquidity position appears stable, supported by internally generated cash flows and access to revolving credit facilities. Management's outlook is cautiously optimistic, with ongoing rate case filings and strategic investments aimed at long-term growth and service improvement.
Financial Highlights
29 data points| Revenue | $554.21M |
| Operating Expenses | $442.11M |
| Operating Income | $123.83M |
| Interest Expense | $78.70M |
| Net Income | $30.81M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 174.72M |
| Shares Outstanding (Diluted) | 174.80M |
Key Highlights
- 1Net income of $30.8 million for Q1 2010, a significant recovery from a net loss of $413.1 million in Q1 2009, primarily due to the absence of a large goodwill impairment charge in the current year.
- 2Operating revenues increased by 6.9% to $588.1 million, driven by rate increases in regulated businesses and growth in the non-regulated Contract Operations Group.
- 3Capital expenditures totaled $142.7 million, reflecting ongoing investment in infrastructure renewal and strategic acquisitions.
- 4The company maintained a stable capital structure with a debt-to-capitalization ratio of 58% and reported compliance with its debt covenants.
- 5Cash flow from operations increased to $176.0 million from $142.5 million in the prior year, indicating strong operational cash generation.
- 6The company declared a quarterly dividend of $0.21 per share, consistent with the previous quarter and signaling continued commitment to shareholder returns.
- 7The company is actively pursuing rate increases through numerous filings across its regulated subsidiaries to offset operating costs and achieve a fair rate of return.