UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) April 27, 2005
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CALIFORNIA WATER SERVICE GROUP
(Exact name of registrant as specified in its charter)
Delaware 1-13883 77-0448994
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1720 North First Street, San Jose, CA. 95112
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 1-408-367-8200
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Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c ) under the
Exchange Act (17 CFR 240.13e-4(c)
Item 2.02 Results of Operations and Financial Condition.
On April 27, 2005, the registrant issued the press release attached to
this report as Exhibit 99, which announces the results of operations for the
first quarter of 2005.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
The list of exhibits called for by this Item is incorporated by
reference to the exhibit index to this report.
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CALIFORNIA WATER SERVICE GROUP
(Registrant)
Date: April 28, 2005 By: /s/ Richard D. Nye
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Richard D. Nye
Vice President,
Chief Financial Officer
and Treasurer
Exhibit Index
Exhibit No. Description
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99 Press release of the registrant dated April 27, 2005 which
announces the results of operations for the first quarter of
2005.
CALIFORNIA
WATER
SERVICE
GROUP
LOGO
NEWS RELEASE
CALIFORNIA WATER SERVICE GROUP
1720 North First Street
San Jose, CA 95112-4598 April 27, 2005
For Immediate Release
Contact: Richard Nye (408) 367-8216 (analysts)
Shannon Dean (310) 257-1435 (media)
CAL WATER ANNOUNCES FIRST QUARTER 2005 RESULTS;
BOARD DECLARES 242nd CONSECUTIVE QUARTERLY DIVIDEND
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SAN JOSE, CA - California Water Service Group (NYSE : CWT) today announced net
income of $0.7 million and earnings of $0.03 per share for the first quarter of
2005, compared to net income of $1.4 million or $0.08 per share in the first
quarter of 2004.
Revenue was basically flat for the quarter at $60.3 million. Rate
increases added $2.0 million to revenue and sales to new customers added $0.8
million, but higher than average precipitation resulted in a $2.8 million
decline in sales to existing customers.
According to President and Chief Executive Officer Peter C. Nelson,
first quarter 2005 results were lower principally due to reduced usage from
higher rainfall. In addition, significant credits were received from certain
wholesale suppliers in the first quarter of 2004 which were not received in the
first quarter of 2005.
"The first quarter is typically a low earnings period for us because of
the weather, and we experienced heavy rainfall in the Southern California
districts," Nelson said. "Our continued efforts to secure fair and timely rate
relief, add customers, and operate efficiently will be critical to our
performance for the year," he said.
Total operating expenses for the first quarter of 2005 increased 2%, or
$1.0 million. Water production costs decreased by $1.3 million or 6%, because
less water was produced as a result of higher rainfall. Included in the first
quarter of 2004 was a credit received from certain wholesale water suppliers in
Southern California for $1.4 million and a charge for $0.8 million to resolve a
meter reading malfunction matter in the Stockton district. First quarter 2005
water production costs did not contain similar items.
Excluding water production costs, other operations expenses increased
$1.6 million or 8%. The increased expenses were primarily due to costs
associated with payroll, medical claims, pension, and outside services.
Maintenance expense increased $0.5 million, or 15%, for the quarter due
to higher repair costs for mains and pumping equipment. Depreciation expense
increased $0.5 million, or 7%, due to 2004 capital expenditures. Income taxes
were lower by $0.5 million, or 53%, due to lower taxable income. Property and
other taxes increased $0.3 million or 10%.
At their meeting today, Directors declared the 242nd consecutive
quarterly dividend on common stock. The quarterly dividend of $0.285 is payable
on May 20, 2005, to stockholders of record on May 9, 2005. The regular dividend
on Series C preferred stock was also declared.
California Water Service Group is the parent company of California
Water Service Company, Washington Water Service Company, New Mexico Water
Service Company, Hawaii Water Service Company, Inc., and CWS Utility Services.
Together these companies provide regulated and non-regulated water service to
more than 2 million people in 100 California, Washington, New Mexico, and Hawaii
communities. Group's common stock trades on the New York Stock Exchange under
the symbol "CWT".
This news release contains forward-looking statements within the
meaning established by the Private Securities Litigation Reform Act of 1995
("Act"). The forward-looking statements are intended to qualify under provisions
of the federal securities laws for "safe harbor" treatment established by the
Act. Forward-looking statements are based on currently available information,
expectations, estimates, assumptions and projections, and management's judgment
about the Company, the water utility industry and general economic conditions.
Such words as expects, intends, plans, believes, estimates, assumes,
anticipates, projects, predicts, forecasts or variations of such words or
similar expressions are intended to identify forward-looking statements. The
forward-looking statements are not guarantees of future performance. They are
subject to uncertainty and changes in circumstances. Actual results may vary
materially from what is contained in a forward-looking statement. Factors that
may cause a result different than expected or anticipated include: governmental
and regulatory commissions' decisions, including decisions on proper disposition
of property; changes in regulatory commissions' policies and procedures; the
timeliness of regulatory commissions' actions concerning rate relief; new
legislation; the ability to satisfy requirements related to the Sarbanes-Oxley
Act and other regulations on internal controls; electric power interruptions;
increases in suppliers' prices and the availability of supplies including water
and power; fluctuations in interest rates; changes in environmental compliance
and water quality requirements; acquisitions and our ability to successfully
integrate acquired companies; the ability to successfully implement business
plans; changes in customer water use patterns; the impact of weather on water
sales and operating results; access to sufficient capital on satisfactory terms;
civil disturbances or terrorist threats or acts, or apprehension about the
possible future occurrences of acts of this type; the involvement of the United
States in war or other hostilities; restrictive covenants in or changes to the
credit ratings on our current or future debt that could increase our financing
costs or affect our ability to borrow, make payments on debt or pay dividends;
and, other risks and unforeseen events. When considering forward-looking
statements, you should keep in mind the cautionary statements included in this
paragraph. For additional information relating to the risks of the Company's
business see "Risk Factors" in the Company's Annual Report on Form 10-K. The
Company assumes no obligation to provide public updates of forward-looking
statements.
Additional information is available at our Web site at
www.calwatergroup.com.
Attachments (2).
###
CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands, except per share data) March 31, December 31,
2005 2004
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ASSETS
Utility plant:
Utility plant $ 1,160,399 $ 1,144,074
Less accumulated depreciation and amortization 350,884 343,769
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Net utility plant 809,515 800,305
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Current assets:
Cash and cash equivalents 28,298 18,820
Receivables:
Customers 13,626 15,867
Income taxes -- 7,298
Other 3,422 3,147
Unbilled revenue 8,391 9,307
Materials and supplies at average cost 3,396 3,161
Prepaid pension expense 1,976 3,671
Taxes and other prepaid expenses 7,866 9,122
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Total current assets 66,975 70,393
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Regulatory assets 54,325 53,477
Other assets 19,575 18,678
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$ 950,390 $ 942,853
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CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock, $.01 par value $ 184 $ 184
Additional paid-in capital 131,418 131,271
Retained earnings 152,257 156,851
Accumulated other comprehensive loss (701) (701)
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Total common stockholders' equity 283,158 287,605
Preferred stock 3,475 3,475
Long-term debt, less current maturities 274,414 274,821
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Total capitalization 561,047 565,901
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Current liabilities:
Current maturities of long-term debt 1,100 1,100
Short-term borrowings -- --
Accounts payable 23,134 19,745
Accrued expenses and other liabilities 42,545 36,367
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Total current liabilities 66,779 57,212
Unamortized investment tax credits 2,721 2,721
Deferred income taxes 54,555 54,826
Regulatory and other liabilities 36,072 35,986
Advances for construction 133,906 131,292
Contributions in aid of construction 95,310 94,915
Commitments and contingencies -- --
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$ 950,390 $ 942,853
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CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Unaudited
(In thousands, except per share data)
For the three months ended: March 31, March 31,
2005 2004
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Operating revenue $ 60,303 $ 60,240
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Operating expenses:
Water production costs 19,821 21,161
Other operations 21,943 20,337
Maintenance 3,658 3,181
Depreciation and amortization 6,996 6,518
Income taxes 455 958
Property and other taxes 2,965 2,694
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Total operating expenses 55,838 54,849
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Net operating income 4,465 5,391
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Other income and expenses:
Non-regulated income, net 638 550
Gain (loss) on sale of non-utility property (2) 1
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Total other income and expenses 636 551
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Interest expense:
Interest expense 4,646 4,646
Less: capitalized interest 225 150
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Total interest expense 4,421 4,496
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Net income $ 680 $ 1,446
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Earnings per share
Basic $ 0.03 $ 0.08
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Diluted $ 0.03 $ 0.08
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Weighted average shares outstanding
Basic 18,371 16,932
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Diluted 18,403 16,953
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Dividends per share of common stock $ 0.2850 $ 0.2825
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