Exhibit 99.1
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NEWS
RELEASE
CALIFORNIA WATER SERVICE GROUP
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![(CWT LOGO)](f55600f5560002.gif) |
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1720 North First Street
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April 28, 2010 |
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San Jose, CA 95112-4598
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For Immediate Release |
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Contact:
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Marty Kropelnicki (408) 367-8200 (analysts) |
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Shannon Dean (310) 257-1435 (media) |
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CALIFORNIA WATER SERVICE GROUP ANNOUNCES
FIRST QUARTER 2010 RESULTS
SAN JOSE,
CA California Water Service Group (NYSE: CWT) today announced net income of
$2.0 million and earnings per share of $0.10 for the first quarter of 2010, compared to net income
of $2.4 million and earnings per share of $0.12 for the first quarter of 2009.
Revenue for the first quarter increased $3.7 million, or 4%, to $90.3 million. Rate increases
added $4.3 million and sales to new customers added $0.6 million, while decreased usage by existing
customers and other charges reduced revenue by $1.2 million.
Total operating expenses for the first quarter of 2010 increased $2.2 million, or 3%, to $82.5
million. Water production costs increased $1.6 million, or 6%, due primarily to increases in
wholesaler water prices and higher power costs. Administrative costs decreased $1.4 million, or 8%,
to $17.4 million due to lower legal expense
and other administrative costs compared with the prior year. Other operations expenses increased
$1.1 million, or 9%, to $13.6 million, as a result of increases in expenses for water treatment,
water quality, and costs associated with water distribution systems.
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Maintenance
expense increased 7%, or $0.3 million, to $4.9 million, compared to $4.6 million
in the same period last year. Depreciation expense increased $0.6 million, or 6%, to $10.8
million, due to increases in utility plant. Taxes other than income decreased $0.2 million, or
5%, to $3.9 million.
Other income, net of income taxes, decreased $0.6 million to a net loss of $0.1 million. The
largest single component of the change was due to business development expenses in the regulated
utility business. Interest expense increased $1.3 million, or 30%, to $5.7 million, due to the
debt issuance in April 2009.
According to President and Chief Executive Officer Peter C. Nelson, 1st quarter
2010 results were in line with managements expectations.
We are in the third year of a three-year rate case cycle in California, which as planned,
resulted in lower rate relief for the first quarter of 2010. We will continue to work diligently to control costs
while providing excellent
service, both of which will benefit stockholders and rate payers in 2010 and beyond, Nelson said.
All stockholders and interested investors are invited to listen to the 2010 first
quarter conference call on April 29, 2010, at 11:00 a.m. (EDT), by dialing 1-866-961-7942 and
keying in ID# 1442193. A replay of the call will be
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available from 2:00 p.m. (EDT) Thursday, April
29, 2010, through June 28, 2010 at 888-266-2081, ID# 1442193. The call, which will be hosted by
President and CEO, Peter Nelson and Vice President and Chief Financial Officer, Martin A.
Kropelnicki, will also be webcast under the investor relations tab at www.calwatergroup.com.
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., CWS Utility Services, and HWS Utility Services, LLC. Together these companies provide
regulated and non-regulated water service to nearly 2 million people in 100 California, Washington,
New Mexico, and Hawaii communities. Groups 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
managements 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, but are not limited to: 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
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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, as well
as the annual 10-K, Quarterly 10-Q, and other reports filed from time-to-time with the Securities
and Exchange Commission (SEC). 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).
###
Source: California Water Service Group
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CALIFORNIA WATER SERVICE GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands, except per share data)
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March 31, |
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December 31, |
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2010 |
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2009 |
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ASSETS |
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Utility plant: |
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Utility plant |
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$ |
1,749,688 |
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$ |
1,709,062 |
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Less accumulated depreciation and amortization |
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(522,508 |
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(510,985 |
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Net utility plant |
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1,227,180 |
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1,198,077 |
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Current assets: |
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Cash and cash equivalents |
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11,352 |
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9,866 |
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Receivables |
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Customers |
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19,506 |
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25,567 |
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Regulatory balancing accounts |
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11,772 |
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10,513 |
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Other |
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6,829 |
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9,043 |
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Unbilled revenue |
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12,321 |
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13,417 |
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Materials and supplies at average cost |
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5,807 |
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5,530 |
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Taxes, prepaid expense, and other assets |
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22,696 |
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18,305 |
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Total current assets |
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90,283 |
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92,241 |
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Other assets: |
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Regulatory assets |
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211,802 |
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204,104 |
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Goodwill |
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2,615 |
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2,615 |
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Other assets |
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30,569 |
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28,544 |
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Total other assets |
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244,986 |
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235,263 |
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$ |
1,562,449 |
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$ |
1,525,581 |
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CAPITALIZATION AND LIABILITIES |
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Capitalization: |
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Common stock, $.01 par value |
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$ |
208 |
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208 |
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Additional paid-in capital |
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215,800 |
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215,528 |
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Retained earnings |
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200,738 |
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204,898 |
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Total common stockholders equity |
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416,746 |
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420,634 |
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Long-term debt, less current maturities |
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381,048 |
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374,269 |
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Total capitalization |
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797,794 |
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794,903 |
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Current liabilities: |
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Current maturities of long-term debt |
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12,987 |
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12,953 |
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Short-term borrowings |
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19,100 |
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12,000 |
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Accounts payable |
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Trade and other |
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43,058 |
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43,689 |
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Regulatory balancing accounts |
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2,104 |
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2,430 |
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Accrued interest |
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9,101 |
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4,258 |
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Accrued expenses and other liabilities |
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33,056 |
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35,028 |
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Total current liabilities |
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119,406 |
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110,358 |
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Unamortized investment tax credits |
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2,318 |
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2,318 |
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Deferred income taxes, net |
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90,806 |
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91,851 |
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Pension and postretirement benefits other than pensions |
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143,723 |
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137,127 |
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Regulatory liability and Other |
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90,946 |
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85,780 |
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Advances for construction |
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186,045 |
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185,027 |
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Contributions in aid of construction |
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131,411 |
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118,217 |
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$ |
1,562,449 |
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$ |
1,525,581 |
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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:
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March 31 |
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March 31 |
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2010 |
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2009 |
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Operating revenue |
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$ |
90,272 |
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$ |
86,613 |
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Operating expenses: |
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Operations: |
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Water production costs |
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30,454 |
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28,868 |
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Admistrative and General |
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17,444 |
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18,861 |
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Other operations |
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13,567 |
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12,456 |
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Maintenance |
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4,951 |
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4,635 |
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Depreciation and amortization |
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10,792 |
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10,198 |
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Income taxes |
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1,403 |
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1,232 |
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Property and other taxes |
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3,903 |
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4,088 |
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Total operating expenses |
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82,514 |
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80,338 |
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Net operating income |
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7,758 |
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6,275 |
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Other income and expenses: |
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Non-regulated revenue |
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3,422 |
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2,881 |
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Non-regulated expenses |
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(3,546 |
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(2,641 |
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Gain on sale of non-utility property |
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603 |
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Income taxes (expense) benefit on other income and expenses |
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55 |
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(338 |
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Net other
income (expense) |
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(69 |
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505 |
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Interest expense: |
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Interest Expense |
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6,490 |
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5,038 |
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Less: capitalized interest |
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(819 |
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(679 |
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Net interest expense |
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5,671 |
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4,359 |
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Net income |
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$ |
2,018 |
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$ |
2,421 |
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Earnings per share |
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Basic |
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$ |
0.10 |
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$ |
0.12 |
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Diluted |
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$ |
0.10 |
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$ |
0.12 |
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Weighted average shares outstanding |
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Basic |
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20,778 |
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20,730 |
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Diluted |
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20,793 |
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20,759 |
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Dividends per share of common stock |
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$ |
0.2975 |
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$ |
0.2950 |
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