WEST COVINA, Calif., Jan. 31, 2002 — Southwest Water Company today reported its 2001 results, which reflected a 10 percent increase in revenues, a 16 percent increase in net income, and a 10 percent increase in earnings per share as compared to 2000.
Revenues for the year ended December 31, 2001 were $115,547,000, an increase of $10,806,000 over the prior year; net income rose by $862,000 to $6,243,000; and earnings per diluted common share rose by $.06 to $.65. For the year, the weighted average number of shares outstanding increased by six percent, reflecting the impact of the use of stock for acquisitions in 2001.
Anton C. Garnier, Southwest Water president and chief executive officer, said, "Our financial performance in 2001 reflects continued improvements in both our rate-regulated utilities and our non-regulated contract operations and submetering business segments. The year included the successful acquisition of Operations Technologies, Inc. (OpTech) on August 31, which extended our contract operations client base to the East Coast and broadened our business to include public works services such as storm water drainage system maintenance and street repair. OpTech added approximately $3.7 million to Southwest Water's revenues in 2001 and was accretive to earnings.
"Our financial performance also benefited from a full year of revenue and income generated by the three companies that we acquired in 2000: Master Tek International, Inc., our utility submetering, billing and collection company; and our two utility subsidiaries located in Texas, Windermere Utility Company and Hornsby Bend Utility Company. Our California and New Mexico rate-regulated utilities also had revenue and income gains in 2001."
Garnier concluded, "We are pleased that, in today's difficult economic climate, we can report continuing financial improvements. We intend to continue building on our strong performance, recognizing that we may have a unique challenge in 2002 with the impact of the recent regulatory decision on cost recovery by the California Public Utilities Commission. This decision will likely result in greater fluctuations in revenues and earnings at our California rate-regulated utility, Suburban Water Systems. Our goal remains to provide excellent customer service and to support the growth of all parts of our business."
Southwest Water Company provides a broad range of services, including water production and distribution, wastewater collection and treatment, public works services and utility submetering. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than 1.5 million people in 29 states from coast to coast depend on Southwest Water for high-quality, reliable service.
