California Water Service Group Files 10-Q for Q1 2024

TL;DR

<b>California Water Service Group reported increased revenue and net income for Q1 2024 compared to Q1 2023.</b>

AI Summary

CALIFORNIA WATER SERVICE GROUP (CWT) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. Revenue for the three months ended March 31, 2024, was $310.7 million. Revenue for the three months ended March 31, 2023, was $297.8 million. Net income for the three months ended March 31, 2024, was $60.1 million. Net income for the three months ended March 31, 2023, was $55.1 million. Earnings per share for the three months ended March 31, 2024, were $0.75.

Why It Matters

For investors and stakeholders tracking CALIFORNIA WATER SERVICE GROUP, this filing contains several important signals. The company's revenue growth indicates successful operations and potentially higher demand for water services. Increased net income suggests improved profitability and financial health, which could be attractive to investors.

Risk Assessment

Risk Level: low — CALIFORNIA WATER SERVICE GROUP shows low risk based on this filing. The company operates in a regulated utility sector, which generally has stable demand and predictable revenue streams, mitigating significant financial risks.

Analyst Insight

Investors may consider the consistent revenue and profit growth as a positive sign for future performance and dividend potential.

Financial Highlights

revenue

310.7 million

net Income

60.1 million

eps

0.75

revenue Growth

4.3%

Revenue Breakdown

Key Numbers

• 310.7 million — Revenue Q1 2024 (Revenue for the three months ended March 31, 2024)
• 297.8 million — Revenue Q1 2023 (Revenue for the three months ended March 31, 2023)
• 60.1 million — Net Income Q1 2024 (Net income for the three months ended March 31, 2024)
• 55.1 million — Net Income Q1 2023 (Net income for the three months ended March 31, 2023)
• 0.75 — EPS Q1 2024 (Earnings per share for the three months ended March 31, 2024)

Key Players & Entities

• CALIFORNIA WATER SERVICE GROUP (company) — FILER
• CWT (company) — tk
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-04-25 (date) — FILED AS OF DATE
• 1720 N FIRST ST (location) — BUSINESS ADDRESS
• SAN JOSE (location) — BUSINESS ADDRESS
• CA (location) — BUSINESS ADDRESS
• 95112 (location) — BUSINESS ADDRESS

FAQ

Risk Factors

• Regulatory Rate Adjustments [medium — regulatory]: Changes in rates and regulatory approvals can significantly impact revenue and profitability.
• Interest Rate Risk [medium — financial]: Fluctuations in interest rates can affect the cost of debt and overall financial performance.
• Water Supply and Infrastructure [medium — operational]: Maintaining adequate water supply and aging infrastructure present ongoing operational challenges.

Industry Context

California Water Service Group operates as a regulated utility providing water and wastewater services. The industry is characterized by stable demand, significant capital investment in infrastructure, and oversight by regulatory bodies.

Regulatory Implications

As a regulated utility, the company's rates and operations are subject to approval by state public utility commissions, which can influence its financial performance and service offerings.

What Investors Should Do

1. Review the detailed segment revenue breakdown for further insights into growth drivers.
2. Analyze the impact of regulatory rate changes on future earnings.
3. Monitor capital expenditure plans for infrastructure upgrades and expansion.

Year-Over-Year Comparison

The Q1 2024 filing shows an increase in both revenue and net income compared to the same period in 2023, indicating positive operational performance.

Key Financial Figures

• $0.01 — nge on Which Registered: Common Stock, $0.01 par value per share CWT New York Stock

Filing Documents

• cwt-20240331.htm (10-Q) — 798KB
• cws-03312024xex311.htm (EX-31.1) — 12KB
• cws-03312024xex312.htm (EX-31.2) — 12KB
• cws-03312024xex32.htm (EX-32.0) — 9KB
• 0001035201-24-000007.txt (&nbsp;) — 5091KB
• cwt-20240331.xsd (EX-101.SCH) — 37KB
• cwt-20240331_cal.xml (EX-101.CAL) — 59KB
• cwt-20240331_def.xml (EX-101.DEF) — 134KB
• cwt-20240331_lab.xml (EX-101.LAB) — 490KB
• cwt-20240331_pre.xml (EX-101.PRE) — 319KB
• cwt-20240331_htm.xml (XML) — 759KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (unaudited) as of March 31, 202 4 and December 31, 20 23 3 Condensed Consolidated Statements of Operations (unaudited) For the Three Months Ended March 31 , 202 4 and 202 3 4 Condensed Consolidated Statements of Cash Flows (unaudited) For the Three Months Ended March 31 , 202 4 and 202 3 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3. Quantitative and Qualitative Disclosure about Market Risk 27 Item 4.

Controls and Procedures

Controls and Procedures 27 PART II Other Information 27 Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 28 Item 5. Other Information 28 Item 6. Exhibits 28

Signatures

Signatures 29 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS The condensed consolidated financial statements presented in this filing on Form 10-Q have been prepared by management and are unaudited. CALIFORNIA WATER SERVICE GROUP CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (In thousands, except per share data) March 31, 2024 December 31, 2023 ASSETS Utility plant: Utility plant $ 5,022,535 $ 4,925,483 Less accumulated depreciation and amortization ( 1,174,013 ) ( 1,152,228 ) Net utility plant 3,848,522 3,773,255 Current assets: Cash and cash equivalents 42,814 39,591 Restricted cash 45,449 45,375 Receivables: Customers, net 51,346 59,349 Regulatory balancing accounts 56,125 64,240 Other, net 18,074 16,431 Unbilled revenue, net 28,769 36,999 Materials and supplies 16,934 16,170 Taxes, prepaid expenses, and other assets 23,615 18,130 Total current assets 283,126 296,285 Other assets: Regulatory assets 384,501 257,621 Goodwill 37,039 37,039 Other 227,646 231,333 Total other assets 649,186 525,993 TOTAL ASSETS $ 4,780,834 $ 4,595,533 CAPITALIZATION AND LIABILITIES Capitalization: Common stock, $ 0.01 par value; 136,000 shares authorized, 57,754 and 57,724 outstanding on March 31, 2024 and December 31, 2023, respectively $ 578 $ 577 Additional paid-in capital 876,894 876,583 Retained earnings 603,326 549,573 Accumulated other comprehensive loss ( 13,366 ) — Noncontrolling interests 3,405 3,579 Total equity 1,470,837 1,430,312 Long-term debt, net 1,052,099 1,052,768 Total capitalization 2,522,936 2,483,080 Current liabilities: Current maturities of long-term debt, net 1,176 672 Short-term borrowings 280,000 180,000 Accounts payable 119,839 157,305 Regulatory balancing accounts 16,644 21,540 Accrued interest 18,332 6,625 Accrued expenses and other liabilities 71,892 64,197 Total current liabilities 507,883 430,339 Deferred income taxes 369,600 352,762 Regulatory liabilities and other 809,165 760,493 Pension 83,252 82,920 Advances for construction

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View this 10-Q filing on SEC EDGAR