Summary
American Water Works Company, Inc. (AWK) reported its second-quarter 2022 financial results, demonstrating resilience and continued investment in infrastructure. While total operating revenues saw a slight decrease compared to the prior year's quarter, primarily due to divestitures, the regulated business segment showed growth. Diluted earnings per share saw a modest increase, driven by rate increases and acquisitions, partially offset by inflationary pressures. The company continues its strategic focus on capital investment in its regulated utilities and pursuing strategic acquisitions to expand its customer base. Management highlighted significant capital expenditures in the first half of the year, primarily for infrastructure improvements and replacements. The company also reiterated its commitment to returning value to shareholders through consistent dividend payments. AWK maintains a strong liquidity position, supported by its revolving credit facility and cash flows from operations, positioning it to navigate potential market disruptions.
Financial Highlights
47 data points| Revenue | $930.00M |
| Operating Expenses | $610.00M |
| Operating Income | $327.00M |
| Net Income | $218.00M |
| EPS (Basic) | $1.20 |
| EPS (Diluted) | $1.20 |
| Shares Outstanding (Basic) | 182.00M |
| Shares Outstanding (Diluted) | 182.00M |
Key Highlights
- 1Diluted EPS increased to $1.20 for the three months ended June 30, 2022, up from $1.14 in the prior year period, and $2.07 for the six months ended June 30, 2022, up from $1.87 in the prior year period.
- 2The company invested $1.25 billion in the first six months of 2022, with $1.0 billion allocated to capital investments in regulated businesses and $240 million for regulated acquisitions, adding approximately 51,000 customers organically and through acquisitions.
- 3Operating revenues for the Regulated Businesses segment increased to $865 million for the three months ended June 30, 2022, and $1,643 million for the six months ended June 30, 2022.
- 4Interest income from the seller promissory note related to the Homeowner Services Group (HOS) sale provided a boost, contributing $0.06 and $0.12 per share for the three and six-month periods, respectively.
- 5The company ended the quarter with $1.826 billion in total available liquidity, comprising $71 million in cash and cash equivalents and $1.755 billion in availability on its revolving credit facility.
- 6Several states implemented new general rate cases and infrastructure surcharges, contributing to annualized incremental revenues and supporting infrastructure investments.
- 7The company has pending acquisition agreements expected to add approximately 29,200 additional customers to its regulated businesses.