WEST COVINA, Calif., April 25, 2002 -- Southwest Water Co. Thursday reported increases in first quarter revenues, income and earnings per share.
For the three months ended March 31, 2002, as compared to the same period in 2001, revenues rose 21 percent to $28,168,000. Net income increased to $1,294,000, including a one-time net gain of $637,000, or $.06 per common share, associated with a pension plan. Excluding the one-time gain, the increase was 17%, or $.07 per common share, compared to $.06 per common share in the prior year.
Anton C. Garnier, Southwest Water president and CEO said, "In our industry, the first quarter of each year tends to be a difficult one financially, so we are pleased that a combination of warmer, drier weather in California and a rate increase in one of our Texas utilities resulted in a 17 percent revenue increase in our utility group. Our services group revenues grew by 24 percent, primarily as a result of our August 2001 acquisition of Operations Technologies, Inc."
Garnier continued, "The one-time pension plan gain represents the accounting for the dissolution of our defined benefit pension plan, which was terminated in 1999. After fully funding benefits for all plan participants, and receiving approval from the Internal Revenue Service, the remaining cash was transferred into our employee 401(k) retirement savings plan."
Garnier concluded, "Our strategy remains consistent. We will continue to focus on developing opportunities in our existing business lines: contract operations, submetering and regulated utility operations. We also remain attentive to potential acquisitions that would meet our strategic goals. We are optimistic about the company's prospects and look forward to continued growth."
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.
