Summary
American Water Works Company, Inc. (AWK) reported a net income of $152.2 million ($0.85 diluted EPS) for the third quarter of 2014, a slight increase from $150.7 million ($0.84 diluted EPS) in the prior year period. For the first nine months of 2014, net income rose to $329.6 million ($1.83 diluted EPS) from $309.6 million ($1.73 diluted EPS) in the comparable period of 2013. The company's financial performance was driven by growth in its Regulated Businesses segment, which benefited from higher revenues due to rate increases and infrastructure charges, as well as lower operation and maintenance (O&M) expenses. The Market-Based Operations segment also saw revenue growth, primarily from military contracts. AWK continued its strategy of expanding its regulated operations through acquisitions. Liquidity remains strong, with significant availability under its revolving credit facility. The company also made progress on operational efficiency, with an improved O&M efficiency ratio in its Regulated Businesses. However, AWK faces ongoing litigation and regulatory matters, including those related to the West Virginia chemical spill and a labor dispute settlement.
Financial Highlights
46 data points| Revenue | $846.17M |
| Operating Expenses | $508.88M |
| Operating Income | $337.00M |
| Interest Expense | $75.44M |
| Net Income | $152.00M |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 178.99M |
| Shares Outstanding (Diluted) | 179.95M |
Key Highlights
- 1Net income increased by 0.9% to $152.2 million for Q3 2014 and by 6.5% to $329.6 million for the first nine months of 2014, compared to the prior year periods.
- 2Diluted EPS grew to $0.85 for Q3 2014 and $1.83 for the first nine months of 2014, up from $0.84 and $1.73, respectively.
- 3Operating revenues increased by 2.9% in Q3 2014 and 4.9% for the nine-month period, driven by rate increases and acquisitions in the Regulated Businesses segment and growth in military contracts for Market-Based Operations.
- 4The O&M efficiency ratio for Regulated Businesses improved to 32.6% in Q3 2014 and 36.9% for the nine-month period, indicating enhanced operational efficiency.
- 5Capital expenditures for the first nine months of 2014 totaled $664.9 million, primarily for infrastructure upgrades, with an estimated full-year capital plan of $1.0 billion.
- 6The company made progress in resolving a labor dispute regarding national benefit agreements, reaching a settlement agreement in October 2014.
- 7AWK continues to actively pursue regulatory approvals for rate increases and infrastructure charges across various states to support revenue growth.