California Water Service Group Files 2023 Annual Report on Form 10-K

TL;DR

<b>California Water Service Group has filed its 2023 10-K report detailing financial performance and operational data.</b>

AI Summary

CALIFORNIA WATER SERVICE GROUP (CWT) filed a Annual Report (10-K) with the SEC on February 29, 2024. California Water Service Group filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is Water Supply, with SIC code 4941. The report includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement components such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Noncontrolling Interest are detailed for these years.

Why It Matters

For investors and stakeholders tracking CALIFORNIA WATER SERVICE GROUP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of California Water Service Group's financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed financial statements and disclosures within the report are essential for understanding the company's revenue streams, debt levels, and equity structure, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — CALIFORNIA WATER SERVICE GROUP shows moderate risk based on this filing. The company operates in a regulated industry, which can lead to uncertainties in rate-setting and operational costs, potentially impacting financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's performance and potential challenges in the regulated water utility sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-29 — Filing Date (Filed as of date)
• 4941 — SIC Code (Water Supply industry classification)
• 2023 — Reporting Year (Fiscal year for the 10-K filing)

Key Players & Entities

• CALIFORNIA WATER SERVICE GROUP (company) — Filer name
• CWT (company) — Ticker symbol
• 2023-12-31 (date) — Conformed period of report
• 2024-02-29 (date) — Filed as of date
• 4941 (industry_code) — Standard Industrial Classification
• DE (state) — State of incorporation
• 1720 N FIRST ST (address) — Business address street 1
• SAN JOSE (city) — Business address city

FAQ

Industry Context

California Water Service Group operates within the regulated water utility industry, providing essential water services to various communities.

Regulatory Implications

As a regulated utility, the company's operations and financial performance are subject to oversight and approval by state public utility commissions.

What Investors Should Do

1. Review the detailed financial statements for revenue, expenses, and net income for fiscal year 2023.
2. Analyze the company's debt and equity structure, including long-term debt and capital expenditures.
3. Examine the risk factors section for potential operational, regulatory, and market challenges.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-29: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year ending December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — nge on Which Registered: Common Stock, $0.01 par value per share CWT New York Stock
• $8.1 million — al lease agreement required an up-front $8.1 million lease deposit to the city that is being
• $12.2 m — evenue from the water system, which was $12.2 million, $12.5 million, and $11.4 million
• $12.5 m — water system, which was $12.2 million, $12.5 million, and $11.4 million in 2023, 2022,
• $11.4 million — h was $12.2 million, $12.5 million, and $11.4 million in 2023, 2022, and 2021, respectively.
• $0.8 million — the operating lease requires us to pay $0.8 million per year in monthly installments. We ha
• $4.2 m — evenue from the water system, which was $4.2 million, $4.2 million, and $3.4 million i
• $3.4 million — ich was $4.2 million, $4.2 million, and $3.4 million in 2023, 2022, and 2021, respectively.
• $2.7 m — ue sharing with regulated customers was $2.7 million, $2.7 million, and $3.1 million i
• $3.1 million — ers was $2.7 million, $2.7 million, and $3.1 million in 2023, 2022, and 2021, respectively.

Filing Documents

• cwt-20231231.htm (10-K) — 2479KB
• cwt-20231231xex35.htm (EX-3.5) — 184KB
• cwt-20231231xex415.htm (EX-4.15) — 14KB
• cwt-20231231xex1027.htm (EX-10.27) — 11KB
• cwt-20231231xex21.htm (EX-21.0) — 8KB
• cwt-20231231xex221.htm (EX-22.1) — 2KB
• cwt-20231231xex231.htm (EX-23.1) — 2KB
• cwt-20231231xex311.htm (EX-31.1) — 11KB
• cwt-20231231xex312.htm (EX-31.2) — 10KB
• cwt-20231231xex32.htm (EX-32.0) — 7KB
• cwt-20231231xex97.htm (EX-97) — 18KB
• cwt-20231231_g1.jpg (GRAPHIC) — 89KB
• 0001035201-24-000004.txt (&nbsp;) — 13445KB
• cwt-20231231.xsd (EX-101.SCH) — 81KB
• cwt-20231231_cal.xml (EX-101.CAL) — 139KB
• cwt-20231231_def.xml (EX-101.DEF) — 377KB
• cwt-20231231_lab.xml (EX-101.LAB) — 1118KB
• cwt-20231231_pre.xml (EX-101.PRE) — 731KB
• cwt-20231231_htm.xml (XML) — 2255KB

Forward-Looking Statements

Forward-Looking Statements 4 Overview 6 Regulated Business 6 Non-Regulated Activities 7 Operating Segment 8 Growth 8 Geographical Service Areas and Number of Customer Connections at Year-end 9 Rates and Regulation 10 Water Supply 15 Seasonal Fluctuations 18 Utility Plant Construction 18 Energy Reliability 18 Security at Company Facilities 18 Competition and Condemnation 19 Government Regulations 19 Human Capital Resources 20 Executive Officers of the Registrant 21 Item 1A.

Risk Factors

Risk Factors 22 Item 1B. Unresolved Staff Comments 36 Item 1C. Cybersecurity 36 Item 2.

Properties

Properties 38 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II Item 5. Market for Registrant's Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6. R eserved 40 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Overview 41 Critical Accounting Policies and Estimates 42 Results of Operations 45 Rates and Regulation 47 Water Supply 48 Liquidity and Capital Resources 48 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 53 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 94 Item 9A.

Controls and Procedures

Controls and Procedures 94 Item 9B. Other Information 94 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 94 2 Table of Contents Page PART III Item 10. Directors and Executive Officers and Corporate Governance 94 Item 11.

Executive Compensation

Executive Compensation 95 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95 Item 13. Certain Relationships and Related Transactions and Director Independence 95 Item 14. Principal Accountant Fees and Services 95 PART IV Item 15. Exhibits, Financial Statement Schedules 95 Exhibit Index 97 Item 16. Form 10-K Summary 99

Signatures

Signatures 100 3 Table of Contents PART I

Forward-Looking Statements

Forward-Looking Statements This annual report, including all documents incorporated by reference, contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (the PSLRA). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this annual report are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like "will," "would," "expects," "intends," "plans," "believes," "may," "could," "estimates," "assumes," "anticipates," "projects," "progress," "predicts," "hopes," "targets," "forecasts," "should," "seeks," "indicates," or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this annual report include, but are not limited to, statements describing our intention, indication or expectation regarding our financial performance, dividends or targeted payout ratio, our expectations, anticipations or beliefs regarding governmental, legislative, judicial, administrative or regulatory timelines, decisions, approvals, authorizations, requirements or other actions, including our 2021 GRC, rate amounts or cost recovery, certain PFAS regulations, and associated impacts, such as our expected or estimated revenue benefit or loss, authorized return on equity, cost of debt and capital structure, expectations regarding regulatory asset and operating revenue recognition, sources of funding or capital requirements, estimates of, or expectations regarding, capital expenditures, funding

View Full Filing

View this 10-K filing on SEC EDGAR