On this page of StockholderLetter.com we present the latest annual shareholder letter from AMERICAN STATES WATER CO — ticker symbol AWR. Reading current and past AWR letters to shareholders can bring important insights into the investment thesis.
2023 Annual Report
American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the company provides water service to approximately 264,100 customer connections located within more than 80 communities in Northern, Coastal and Southern California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the company distributes electricity to approximately 24,800 customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California. Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for water distribution, wastewater collection, and treatment facilities located on 12 military bases throughout the country under 50-year privatization contracts with the U.S. government.
Our financial results for 2023 Financial Highlights (in thousands, except per share amounts) 2023 2022 Variance % Change 491,528 $ 104,171 21.2% Income Statement Information Total Operating Revenues1 595,699 Total Operating Expenses 398,959 364,892 34,067 9.3% Operating Income 196,740 126,636 70,104 55.4% 35,346 24,701 10,645 43.1% 124,921 78,396 46,525 59.3% 3.37 2.12 1.25 59.0% 3.36 2.11 1.25 59.2% 1.655 1.525 0.130 8.5% Average Number of Shares Outstanding 36,976 36,955 21 0.1% Average Number of Diluted Shares Outstanding 37,077 37,039 38 0.1% $ 2,246,122 $ 2,034,374 $ 211,748 10.4% 1,892,280 1,753,766 138,514 7.9% Common Shareholders Equity 776,109 709,549 66,560 9.4% Long-Term Debt 575,555 446,547 129,008 28.9% 1,351,664 1,156,096 195,568 16.9% 1.79 9.3% 1 Interest Charges (Net) Net Income 2 Basic Earnings Per Common Share2 Fully Diluted Earnings per Common Share 2 Dividends Paid per Common Share Balance Sheet Information Total Assets Net Utility Plant Total Capitalization Book Value per Common Share 1 20.99 19.20 The increase in Operating Revenues and Operating Income was largely as a result of receiving a final decision in GSWC s general rate case by the California Public Utilities Commission (CPUC), which include the increase in 2022 s annual revenue requirement, because 2022 reflected 2021 s water rates due to the delay in the general rate case at the time, and the second-year rate increase for 2023. 2 $1.25 per share recorded (GAAP) increase in 2023 consolidated diluted EPS compared to 2022, or $0.41 per share increase as adjusted (Non-GAAP): 2023 recorded results reflect: The impact of retroactive rates of $0.38 per share related to 2022 due to receiving a final decision in GSWC s general rate case. A net favorable variance of $0.26 per share resulting from the reversal of revenues subject to refund previously recorded in 2022 of $0.13 per share following the receipt of a final decision in the cost of capital proceeding in June 2023. A net favorable variance of $0.20 per share from gains on investments held to fund a retirement plan compared to losses in 2022. 2023 ANNUAL REPORT 1
American States Water Company and its subsidiaries remained a steady and reliable presence, providing safe and reliable water, wastewater and electric service to our customers, and solid, long-term returns for our investors. 2 AMERICAN STATES WATER COMPANY
Looking back at 2023, it was a very productive and FINANCIAL RESULTS positive year for the company. Our water utility In brief, 2023 produced strong financial results. Recorded subsidiary, Golden State Water Company (GSWC), received the final decision from the California Public Utilities Commission, or CPUC, on its water general rate case (GRC), which set rates for 2022-2024. They also made a decision on GSWC s cost of capital proceeding. Both decisions represent positive, constructive earnings per share were $3.36, an increase of $1.25 compared to $2.11 per share recorded for 2022. Adjusted earnings1 for the year were $2.75 per share, an increase of $0.41 compared to adjusted earnings of $2.34 per share in 2022. The $0.41 per share higher adjusted earnings were largely from the new 2023 water rates approved in regulatory outcomes and enable us to continue investing in our water infrastructure for safe and reliable GSWC s final GRC decision. water services for generations to come. In addition, we We also achieved a consolidated return on equity received two new military base contract awards at our (ROE) of 14.1% excluding the additional income from the contracted services subsidiary, American States Utility adjusted items associated with the GRC and cost of capital Services, Inc. and its subsidiaries (ASUS), allowing us decisions. This continues our enviable position as the to expand our footprint and the work we do on U.S. highest earned ROE of the publicly traded water utilities. military bases. We increased our dividend for the 69th consecutive year with an increase of 8.2%. Our dividend growth is consistent American States Water Company and its subsidiaries (AWR) remained a steady and reliable presence, providing vital services to our customers, and solid, long-term returns for our investors. We credit our dependability to the commitment of our teams, and to the consistent execution of business strategies that have proven to make with our policy of achieving a compound annual dividend growth rate of more than 7% over the long term. KEY DEVELOPMENTS IN 2023 As outlined above, we are very happy with the two us a company that communities and shareholders can decisions adopted by the California Public Utilities count on as we ve always been since 1929. Commission. They approved both our general rate case Bear Valley Electric Service, Inc. (BVES) Golden State Water Company (GSWC)2 82.4% $2.77 5.9% Earnings Per Share Total: $3.36 2,3 American States Utility Services, Inc. (ASUS) 14.9% 1 $0.20 $0.50 Adjusted earnings for 2023 exclude the impact of retroactive rates related to the full year of 2022 resulting from the final CPUC decision in the water general rate case, and for 2023 and 2022 they exclude the impact of changes in estimates resulting from revenues subject to refund related to GSWC s cost of capital proceeding, and gains and losses on investments held to fund one of the company's retirement plans. 2 Adjusted EPS for AWR consolidated and GSWC were $2.75 and $2.16 (or 78.5% for the water segment), respectively, excluding from both $0.61 recognized in 2023 related to 2022 due to the delayed GSWC general rate case and cost of capital decisions and gains on investments held to fund one of the company s retirement plans. 3 Also includes the parent company 2023 results of -$0.10 per share and rounding. 2023 ANNUAL REPORT 3
 • shareholder letter icon 4/5/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 AWR Stockholder Letter
 • stockholder letter icon More "Water Utilities" Category Stockholder Letters
 • Benford's Law Stocks icon AWR Benford's Law Stock Score = 75


AWR Shareholder/Stockholder Letter Transcript:

2023 Annual Report

American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States
Utility Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the
company provides water service to approximately 264,100 customer connections located within more than 80 communities in Northern,
Coastal and Southern California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the company distributes electricity
to approximately 24,800 customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California.
Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and
construction management services for water distribution, wastewater collection, and treatment facilities located on 12 military bases
throughout the country under 50-year privatization contracts with the U.S. government.

Our financial
results for 2023
Financial Highlights
(in thousands, except per share amounts)
2023
2022
Variance
% Change
491,528
$ 104,171
21.2%
Income Statement Information
Total Operating Revenues1

595,699

Total Operating Expenses
398,959
364,892
34,067
9.3%
Operating Income
196,740
126,636
70,104
55.4%
35,346
24,701
10,645
43.1%
124,921
78,396
46,525
59.3%
3.37
2.12
1.25
59.0%
3.36
2.11
1.25
59.2%
1.655
1.525
0.130
8.5%
Average Number of Shares Outstanding
36,976
36,955
21
0.1%
Average Number of Diluted Shares Outstanding
37,077
37,039
38
0.1%
$ 2,246,122
$ 2,034,374
$ 211,748
10.4%
1,892,280
1,753,766
138,514
7.9%
Common Shareholders    Equity
776,109
709,549
66,560
9.4%
Long-Term Debt
575,555
446,547
129,008
28.9%
1,351,664
1,156,096
195,568
16.9%
1.79
9.3%
1
Interest Charges (Net)
Net Income
2
Basic Earnings Per Common Share2
Fully Diluted Earnings per Common Share
2
Dividends Paid per Common Share
Balance Sheet Information
Total Assets
Net Utility Plant
Total Capitalization
Book Value per Common Share
1

20.99

19.20

The increase in Operating Revenues and Operating Income was largely as a result of receiving a final decision in GSWC   s general rate case by the
California Public Utilities Commission (CPUC), which include the increase in 2022   s annual revenue requirement, because 2022 reflected 2021   s
water rates due to the delay in the general rate case at the time, and the second-year rate increase for 2023.
2
$1.25 per share recorded (GAAP) increase in 2023 consolidated diluted EPS compared to 2022, or $0.41 per share increase as adjusted (Non-GAAP):
2023 recorded results reflect:
    The impact of retroactive rates of $0.38 per share related to 2022 due to receiving a final decision in GSWC   s general rate case.
    A net favorable variance of $0.26 per share resulting from the reversal of revenues subject to refund previously recorded in 2022 of $0.13 per
share following the receipt of a final decision in the cost of capital proceeding in June 2023.
    A net favorable variance of $0.20 per share from gains on investments held to fund a retirement plan compared to losses in 2022.
2023 ANNUAL REPORT
1

American States Water Company and its
subsidiaries remained a steady and reliable
presence, providing safe and reliable water,
wastewater and electric service to our customers,
and solid, long-term returns for our investors.
2
AMERICAN STATES WATER COMPANY

Looking back at 2023, it was a very productive and
FINANCIAL RESULTS
positive year for the company. Our water utility
In brief, 2023 produced strong financial results. Recorded
subsidiary, Golden State Water Company (GSWC),
received the final decision from the California Public
Utilities Commission, or CPUC, on its water general rate
case (GRC), which set rates for 2022-2024. They also
made a decision on GSWC   s cost of capital proceeding.
Both decisions represent positive, constructive
earnings per share were $3.36, an increase of $1.25
compared to $2.11 per share recorded for 2022. Adjusted
earnings1 for the year were $2.75 per share, an increase of
$0.41 compared to adjusted earnings of $2.34 per share
in 2022. The $0.41 per share higher adjusted earnings
were largely from the new 2023 water rates approved in
regulatory outcomes and enable us to continue
investing in our water infrastructure for safe and reliable
GSWC   s final GRC decision.
water services for generations to come. In addition, we
We also achieved a consolidated return on equity
received two new military base contract awards at our
(ROE) of 14.1% excluding the additional income from the
contracted services subsidiary, American States Utility
adjusted items associated with the GRC and cost of capital
Services, Inc. and its subsidiaries (ASUS), allowing us
decisions. This continues our enviable position as the
to expand our footprint and the work we do on U.S.
highest earned ROE of the publicly traded water utilities.
military bases.
We increased our dividend for the 69th consecutive year
with an increase of 8.2%. Our dividend growth is consistent
American States Water Company and its subsidiaries
(AWR) remained a steady and reliable presence, providing
vital services to our customers, and solid, long-term
returns for our investors. We credit our dependability
to the commitment of our teams, and to the consistent
execution of business strategies that have proven to make
with our policy of achieving a compound annual dividend
growth rate of more than 7% over the long term.
KEY DEVELOPMENTS IN 2023
    As outlined above, we are very happy with the two
us a company that communities and shareholders can
decisions adopted by the California Public Utilities
count on   as we   ve always been since 1929.
Commission. They approved both our general rate case
Bear Valley Electric
Service, Inc. (BVES)
Golden State Water
Company (GSWC)2
82.4%
$2.77
5.9%
Earnings
Per Share
Total: $3.36
2,3
American States Utility
Services, Inc. (ASUS)
14.9%
1
$0.20
$0.50
Adjusted earnings for 2023 exclude the impact of retroactive rates related to the full year of 2022 resulting from the final CPUC decision in the water
general rate case, and for 2023 and 2022 they exclude the impact of changes in estimates resulting from revenues subject to refund related to GSWC   s
cost of capital proceeding, and gains and losses on investments held to fund one of the company's retirement plans.
2
Adjusted EPS for AWR consolidated and GSWC were $2.75 and $2.16 (or 78.5% for the water segment), respectively, excluding from both $0.61 recognized in
2023 related to 2022 due to the delayed GSWC general rate case and cost of capital decisions and gains on investments held to fund one of the company   s
retirement plans.
3
Also includes the parent company 2023 results of -$0.10 per share and rounding.
2023 ANNUAL REPORT
3



shareholder letter icon 4/5/2024 Letter Continued (Full PDF)
 

AWR Stockholder/Shareholder Letter (AMERICAN STATES WATER CO) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.