NEWS RELEASE
Published on April 29, 2004
Exhibit 99
[GRAPHIC OMITTED] [OBJECT OMITTED]
NEWS RELEASE
CALIFORNIA WATER SERVICE GROUP
1720 North First Street
San Jose, CA 95112-4598 April 28, 2004
For Immediate Release
Contact: Richard Nye (408) 367-8216 (analysts)
Shannon Dean (310) 257-1435 (media)
CAL WATER ANNOUNCES FIRST QUARTER 2004 RESULTS;
BOARD DECLARES 238TH CONSECUTIVE QUARTERLY DIVIDEND
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SAN JOSE, CA - California Water Service Group (NYSE : CWT) today announced net
income of $1.4 million or $0.08 per share for the first quarter of 2004,
compared to a loss of $0.8 million or $0.05 per share in the first quarter of
2003.
Revenue for the first quarter increased $8.9 million or 17% to $60.2
million. Rate increases added $7.0 million to revenue and sales to new customers
added $1.6 million. Sales to existing customers were slightly higher, increasing
$0.3 million over the same period last year.
According to President and Chief Executive Officer Peter C. Nelson,
first quarter 2004 results were favorably impacted by rate increases authorized
by the California Public Utilities Commission (CPUC) late in 2003 and the first
quarter of 2004 and the addition of customers.
"We are seeing the impact of rate decisions received last year and this
year. While the first quarter is traditionally a low earnings period for us due
to weather and its impact on sales, we are pleased with the earnings for the
quarter. We will continue to be
persistent and diligent in our efforts to secure fair regulatory treatment,
because that will be key to our continued success," Nelson said.
In February, the Company received approval from the CPUC to increase
rates in its Stockton District by approximately $0.7 million per year as a
result of rate increases by the district's wholesale water supplier; in April,
the CPUC approved the Company's General Rate Cases for 4 districts from 2002,
which will increase rates by approximately $3.5 million annually.
Total operating expenses for the first quarter increased 13%, or $6.2
million. Water production costs increased 12%, primarily due to rate increases
by wholesale water suppliers in several districts. Other cost increases were
payroll, health care, pension, insurance, settlements of property damage claims
and income taxes. Depreciation expense increased 13% due to increases in 2003
capital expenditures.
Maintenance expense declined by 2% for the quarter. Interest expense
also declined slightly as a result of refinancing part of the Company's long
term debt and lower short-term borrowings. There was no impact from property
sales for the first quarter compared to gains of $0.6 million in the first
quarter of 2003.
At their meeting today, Directors declared the 238th consecutive
quarterly dividend on common stock in the amount of $0.2825 per share. It is
payable on May 21, 2004, to stockholders of record on May 10, 2004. 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, Hawaii and New Mexico 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; changes in regulatory commissions'
policies and procedures; the timeliness of regulatory commissions' actions
concerning rate relief; new legislation; 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. 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).
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CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
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,
2004 2003
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Operating revenue $ 60,240 $ 51,310
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Operating expenses:
Operations 41,498 37,761
Maintenance 3,181 3,253
Depreciation and amortization 6,518 5,760
Income taxes 958 (553)
Property and other taxes 2,694 2,465
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Total operating expenses 54,849 48,686
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Net operating income 5,391 2,624
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Other income and expenses:
Non-regulated income, net 550 612
Gain on sale of non-utility property 1 552
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551 1,164
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Income before interest expense 5,942 3,788
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Interest expense:
Interest Expense 4,646 4,856
Less: Capitalized Interest 150 300
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Total interest expense 4,496 4,556
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Net income (loss) $ 1,446 $ (768)
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Earnings per share
Basic $ 0.08 $ (0.05)
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Diluted $ 0.08 $ (0.05)
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Weighted average shares outstanding
Basic 16,932 15,182
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Diluted 16,953 15,182
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Dividends per share of common stock $0.28250 $0.28125
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