Summary
American Water Works Company, Inc. (AWK) reported solid financial results for the first quarter ended March 31, 2018. Net income attributable to common stockholders increased by 14.0% to $106 million, or $0.59 per diluted share, compared to the same period in the prior year. This growth was driven by infrastructure investments, acquisitions, and organic growth within its Regulated Businesses, complemented by contributions from its Market-Based Businesses. The company continues to execute on its strategic growth initiatives, investing significantly in infrastructure improvements and completing small acquisitions. Looking ahead, AWK has announced significant pending acquisitions, including Pivotal Home Solutions and the City of Alton, Illinois' wastewater system, which are expected to further enhance its market position. The company also remains focused on operational efficiency and technological advancements to drive long-term shareholder value.
Financial Highlights
48 data points| Revenue | $756.00M |
| Operating Expenses | $544.00M |
| Operating Income | $217.00M |
| Net Income | $106.00M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 178.00M |
| Shares Outstanding (Diluted) | 179.00M |
Key Highlights
- 1Net income attributable to common stockholders rose 14.0% to $106 million ($0.59 per diluted share) for the first quarter of 2018, up from $93 million ($0.52 per diluted share) in the prior year.
- 2Operating revenues increased slightly by 0.7% to $761 million, driven by growth in Regulated Businesses, partially offset by a reserve for TCJA tax savings and a decrease in Market-Based Businesses.
- 3Capital expenditures for the first three months of 2018 were $343 million, with $1.9 billion to $2.1 billion planned for the full year, including significant pending acquisitions.
- 4The company enhanced its liquidity by upsizing its revolving credit facility to $2.25 billion and increasing its commercial paper program authorization to $2.10 billion.
- 5The adoption of the Tax Cuts and Jobs Act (TCJA) significantly reduced the effective income tax rate to 24.3% from 35.9%, though a $32 million reserve was recorded for customer benefits from these savings.
- 6The company is advancing its strategic growth through announced acquisitions of Pivotal Home Solutions for approximately $365 million and the City of Alton, Illinois' wastewater system for approximately $54 million.
- 7The West Virginia Elk River chemical spill settlement process is progressing, with preliminary approval received, and the company's share of the settlement is approximately $126 million, with insurance recoveries being pursued.