Summary
This 10-Q filing for American Water Works Company, Inc. (AWK) for the period ending June 30, 2013, indicates a decrease in operating revenues and net income for the quarter compared to the prior year, primarily driven by lower demand in its Regulated Businesses segment due to weather patterns. The company continues to invest in capital expenditures, with approximately $429.8 million spent in the first six months of 2013, including progress on its business transformation project. Despite a slight decrease in revenue, the company highlights progress in addressing regulatory lag and improving operational efficiency. Financially, AWK maintained a strong capital structure with a debt-to-capitalization ratio of 56%, and received upgrades to its credit ratings from both Moody's and Standard & Poor's during the period, reflecting improved financial health. The company also continues its dividend payment history, declaring a quarterly cash dividend of $0.28 per share. Acquisitions remain a focus for growth, with several water and wastewater systems purchased during the period and an agreement to acquire a wastewater utility in Virginia. Key challenges include managing regulatory lag and the impact of declining customer usage, as well as the ongoing costs associated with its business transformation project. However, the company's diversified operations, commitment to infrastructure investment, and strategic acquisitions position it for continued stability and growth within the utility sector.
Financial Highlights
49 data points| Revenue | $718.57M |
| Operating Expenses | $482.38M |
| Operating Income | $242.03M |
| Interest Expense | $77.76M |
| Net Income | $101.26M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 177.72M |
| Shares Outstanding (Diluted) | 178.91M |
Key Highlights
- 1Total assets grew to $14.98 billion as of June 30, 2013, up from $14.72 billion at year-end 2012.
- 2Net income for the six months ended June 30, 2013, was $158.9 million, a slight increase from $148.8 million in the prior year's period.
- 3Capital expenditures for the six months ended June 30, 2013, totaled $429.8 million, reflecting continued investment in infrastructure.
- 4The company repurchased treasury stock, with $5.04 million recorded at June 30, 2013, indicating a return of capital to shareholders.
- 5Long-term debt remained substantial at $5.31 billion, though slightly decreased from $5.33 billion at the end of 2012.
- 6The company's debt-to-capitalization ratio was 56% at June 30, 2013, indicating a manageable leverage position.
- 7Credit ratings were upgraded by both Moody's and Standard & Poor's during the period, reflecting improved financial standing.