American States Water Company (NYSE:AWR) announced today that its Board
of Directors has approved a new stock repurchase program authorizing the
Company to repurchase up to 1.2 million shares or approximately 3.2% of
its outstanding common shares from time to time through June 30, 2017.
The Company had previously approved a 1.25 million share buyback program
in 2014 which was completed earlier this month.
"AWR’s plan to repurchase additional shares reflects our continued
commitment to achieve a consolidated shareholders’ equity ratio that is
more reflective of appropriate equity ratios for our two first-tier
subsidiaries Golden State Water Company and American States Utility
Services, Inc.,” said Robert J. Sprowls, President and Chief Executive
Officer of AWR. He further stated, “The Board’s decision to initiate
another repurchase program also stems from AWR’s solid financial
position including a strong cash balance generated from operations.”
The Company had a consolidated cash balance of $74.7 million as of March
31, 2015 and net cash from operating activities of $38.5 million in the
first three months of 2015. In addition to its solid cash balance, the
Company also has access to a $100 million revolving credit facility to
fund its capital requirements at its regulated subsidiary and working
capital at its contracted services subsidiary. The Company has no plans
to issue additional equity over the next several years other than
through its employee and director stock incentive plans.
The Company intends to initiate the repurchase of the common shares
through implementation of a Rule 10b5-1 trading plan in June 2015 at the
earliest. The repurchase program does not obligate the Company to
acquire any specific number of shares and may be suspended, terminated
or modified at any time for any reason, including market conditions, the
cost of repurchasing shares, the availability of alternative investment
opportunities, liquidity, and other factors deemed appropriate. These
factors may also affect the timing and amount of share repurchases.
About American States Water Company
AWR has a long history of returning value to shareholders and since 1931
has paid dividends to shareholders every year, increasing the dividends
received by shareholders each calendar year for sixty consecutive years.
American States Water Company is the parent of Golden State Water
Company and American States Utility Services, Inc. Through its utility
subsidiary, Golden State Water Company, AWR provides water service to
approximately 258,000 customers located within 75 communities throughout
10 counties in Northern, Coastal and Southern California. The Company
also distributes electricity to approximately 24,000 electric customers
in the City of Big Bear and surrounding areas in San Bernardino County,
California. Through its contracted services subsidiary, American States
Utility Services, Inc., the Company provides operations, maintenance and
construction management services for water and wastewater systems
located on military bases throughout the country through 50-year
privatization contracts with the U.S. government.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150521005309/en/
Copyright Business Wire 2015