8-KRegulation FDExhibits & Filings

American Water Works Company, Inc. 8-K Report, Regulation FD Disclosure (May 23, 2011)

Filed May 23, 2011For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) filed an 8-K on May 23, 2011, to disclose information presented in an upcoming investor slide presentation. The key takeaway for investors is the reaffirmation of the company's 2011 earnings per share (EPS) guidance, which is expected to be in the range of $1.65 to $1.75. This forecast does not include an estimated positive impact of approximately $0.08 on EPS from the cessation of depreciation for discontinued operations, which is a GAAP accounting treatment for assets classified as held for sale. This filing is important as it provides investors with an update on the company's financial outlook and reiterates previous guidance. The disclosure of the potential EPS benefit from discontinued operations offers further transparency. Investors should note that the provided guidance is based on current expectations and subject to various factors that could cause actual results to differ, as detailed in the company's forward-looking statements.

Key Highlights

  • 1AWK reaffirms its 2011 earnings per share (EPS) guidance of $1.65 to $1.75.
  • 2The company expects a potential positive impact of approximately $0.08 on 2011 EPS from the cessation of depreciation on discontinued operations.
  • 3This EPS benefit is due to accounting rules for assets classified as 'held for sale' under GAAP, which are no longer depreciated.
  • 4The earnings forecast does not currently include this estimated $0.08 EPS benefit.
  • 5The 8-K filing includes a slide presentation provided to investors during meetings on May 24, 2011.
  • 6The information is furnished under Regulation FD, indicating it's for broad public disclosure.
  • 7The filing contains a cautionary statement regarding forward-looking statements, warning of potential material differences in actual results.

Frequently Asked Questions

The primary financial update is the reaffirmation of American Water Works Company's 2011 earnings per share (EPS) guidance, which is expected to be between $1.65 and $1.75. The company also disclosed an estimated $0.08 EPS benefit from ceasing depreciation on discontinued operations.

Under U.S. Generally Accepted Accounting Principles (GAAP), long-lived assets that are classified as 'held for sale' are no longer depreciated. This accounting treatment is the reason for the cessation of depreciation on these specific discontinued operations.

No, the previously announced 2011 EPS guidance of $1.65 to $1.75 does not include the estimated $0.08 benefit from the cessation of depreciation for discontinued operations. This means the potential actual EPS could be higher than the current forecast if this benefit materializes.

The 8-K filing indicates that a slide presentation (Exhibit 99.1) was provided to investors. This presentation likely contains more detailed information. Additionally, the filing refers to a 'Cautionary Statement Concerning Forward-Looking Statements' for a comprehensive understanding of risks and uncertainties.