8-K: Current report filing
Published on April 28, 2005
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).
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