Brings Payout Ratio More in Line with Industry Peers
Reflects Sustainability of Earnings from Contracted Services
SAN DIMAS, Calif.--(BUSINESS WIRE)--Aug. 1, 2012--
On July 31, 2012, the Board of Directors of American States Water
Company (NYSE:AWR) approved a $0.075 per share increase in its quarterly
cash dividend to $0.355 per share on the Common Shares of the Company.
This represents a 27% increase in the quarterly dividend and the 305th
consecutive dividend payment by the Company. For 58 consecutive years,
American States Water Company shareholders have received an increase in
their annual dividend payments.
“This substantial increase in our quarterly dividend reflects our
Board’s confidence in the sustainability of the company’s earnings and
the prospects for our future and its desire to have a payout ratio that
is more in line with our peers," said Robert J. Sprowls, President and
CEO of American States Water Company.
Sprowls continued, “Earnings from our contracted services business have
grown significantly over the past 3 ½ years and we have not historically
paid a dividend on those earnings. We believe the earnings from this
business will be a continued source of dividends for our shareholders
and we have adjusted our dividend accordingly.” Sprowls added, "We also
believe that prudently increasing dividends enhances our ability to
attract capital in the future to fund necessary infrastructure
investments in our utility operations."
Dividends on the Common Shares will be payable on September 1, 2012 to
shareholders of record at the close of business on August 13, 2012.
Certain matters discussed in this news release with regard to the
Company's expectations may be forward-looking statements that involve
risks and uncertainties. The assumptions and risk factors that could
cause actual results to differ materially include those described in the
Company's filings with the Securities and Exchange Commission.
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 1 out of every 36 Californians located within 75
communities throughout 10 counties in Northern, Coastal and Southern
California (approximately 256,000 customers). The Company also
distributes electricity to over 23,000 customers in the Big Bear
recreational area of 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
under 50 year privatization contracts.
American States Water Company has paid dividends to shareholders every
year since 1931, increasing the dividends received by shareholders each
calendar year since 1954.
Source: American States Water Company
American States Water Company
Eva G. Tang
President - Finance, Chief Financial Officer, Corporate Secretary and
909-394-3600, extension 707