Southwest Water announces financial guidance for 2003
Southwest Water Co. has announced guidance with regard to anticipated revenues and operations in 2003.
WEST COVINA, Calif., Feb. 14, 2003 -- Southwest Water Co. has announced guidance with regard to anticipated revenues and operations in 2003.
The company made its announcement during an earnings conference call on Thursday, February 13, 2003. The call was broadcast live, and a replay is available, on the company's Web site at www.southwestwater.com.
Anton C. Garnier, Southwest Water president and CEO, said, "Our objective in offering guidance is to provide what we consider to be important information to support independent analysis and forecasts of our operations. In our quarterly conference calls going forward, we will focus on providing visibility into our operations in order to support a solid understanding of the economics of our business, and of our progress in continuing to grow both our revenue and earnings. While we have been acquisitive in past years, and continually review external growth opportunities, this guidance does not reflect potential future acquisitions."
Garnier continued, "For 2003 we expect revenues to increase from 2002 levels by 20 to 25 percent. We are focused on improving operating income margins, and we expect operating income to increase 28 percent to 33 percent. We expect our Services Group to continue to outpace our Utility Group in revenue growth, and for 2003 we expect the Services Group to contribute between 65 percent and 70 percent of total revenues. Cash capital expenditures are expected to increase by five to 10 percent, from approximately $12 million in 2002. Lastly, we expect our tax rate of 33 percent in 2002 to return to 35 percent in 2003."
Southwest Water Company provides a broad range of services, including water production, treatment and distribution, wastewater collection and treatment, public works services, utility submetering and construction management. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than 2 million people in 31 states from coast to coast depend on Southwest Water for high-quality, reliable service.