• Full Year Earnings Per Share (EPS): $3.17 per share for 2024, compared to $3.36 per share for 2023.
• Fourth Quarter EPS: $0.75 per share, up from $0.55 per share in Q4 2023.
• Water Utility Earnings: $0.52 per share in Q4 2024, compared to $0.41 per share in Q4 2023.
• Electric Segment Earnings: $0.13 per share in Q4 2024, compared to $0.07 per share in Q4 2023.
• ASUS Earnings: $0.55 per share for the full year 2024, up from $0.50 per share in 2023.
• Consolidated Revenue Increase: $17.9 million increase in Q4 2024 compared to Q4 2023.
• Water Segment Revenue Increase: $5.1 million in Q4 2024.
• Electric Segment Revenue Increase: $10.6 million in Q4 2024.
• ASUS Revenue Increase: $2.3 million in Q4 2024.
• Infrastructure Investment: $235.5 million in 2024 for regulated utilities.
• ASUS Capital Upgrade Awards: $56.5 million in 2024.
• Return on Equity: 14.1% for 2024.
• Dividend Increase: 8.3% increase in 2024.
• Net Cash from Operating Activities: $198.7 million for 2024, up from $67.7 million in 2023.

• Warning! GuruFocus has detected 5 Warning Signs with AWR.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• American States Water Co (NYSE:AWR) received constructive regulatory outcomes from the California Public Utilities Commission, enabling continued investment in water and electric infrastructure.
• The company achieved a return on equity of 14.1% for the year and increased its dividend by 8.3%, marking seven consecutive years of annual dividend increases.
• AWR's Water Utilities segment recorded a tax benefit following the final decision in its general rate case.
• The company invested $235.5 million in infrastructure at its regulated utilities, reflecting strong execution of capital plans.
• ASUS, the contracted services business, secured $56.5 million in new capital upgrade awards, a record high, with projects scheduled for completion through 2027.

Negative Points

• Reported earnings per share for the full year of 2024 were $0.19 lower compared to the prior year.
• Higher operating expenses and interest costs partially offset the financial gains from rate increases.
• The issuance of equity under the at-the-market offering program decreased consolidated earnings by approximately $0.04 per share.
• Earnings from ASUS decreased $0.01 per share for the quarter due to increased operating expenses.
• The final decision rejected a full sales and revenue decoupling mechanism and a full supply cost balancing account, which could impact future financial flexibility.

Q & A Highlights

Q: Could you help reconcile how much of the $0.06 electric GRC retroactive EPS benefit recorded is solely related to 2023? A: Robert Sprowls, President and CEO, explained that more of the benefit is related to 2024 than 2023. The settlement with the public advocates aimed to spread out the first-year increase, leading to advice letter projects in both cases. Eva Tang, CFO, added that the first-year increase was mitigated by moving certain capital projects to 2024 and beyond.

Q: Is the nearly $200 million in consolidated operating cash flows for 2024 a good proxy for 2025 expectations? A: Eva Tang, CFO, confirmed that the 2024 cash flow is more aligned with what is expected going forward into 2025, considering the continued collection of retroactive revenues from the delayed water and electric GRC decisions.

Q: How much of the remaining $110 million of equity under the ATM program do you anticipate issuing in 2025? A: Eva Tang, CFO, indicated that they plan to issue approximately $60 million in 2025, aiming to spread it over two years, but they might adjust if more is needed.

Q: Would any of the $0.06 retroactive EPS benefit be related to 2023, or is it mostly for 2024? A: Robert Sprowls, President and CEO, stated that the majority of the benefit is for 2024, although he couldn't provide a precise split.

Q: Can you elaborate on the impact of the settlement agreement on the first-year rate increase? A: Eva Tang, CFO, explained that the settlement agreement involved moving certain capital projects to later years and filing them as advice letter projects to earn AFUDC, which helped mitigate the first-year rate increase for customers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.