POINT RICHMOND, Calif., July 23, 2002 -- Western Water Co. reported a $4,249,000 net loss for the fiscal year ended March 31, 2002.
The company reported a net loss applicable to common stockholders for the year ended March 31, 2002 of $4,249,000, or $0.53 per diluted share, compared to a net income applicable to common stockholders for the year ended March 31, 2002 of $5,395,000, or $0.66 per diluted share, for the year ended March 31, 2001.
The results for the earlier year included more than $8.8 million of net income available to common stockholders generated from the re-purchase or retirement of preferred shares and debentures at discounts from face value. There were no such gains in the year ended March 31, 2002.
Water revenues for the 2002 fiscal year decreased 31% to $1,464,000, compared with $2,127,000 for the preceding fiscal year, primarily because high electricity prices and regulatory obstacles prevented completion of contracted water sales.
General and administrative costs were substantially lower, at $3,076,000 compared with $3,934,000 in the preceding year, due to lower payroll and corporate overhead expenses, and reduced consulting and engineering costs.
Commenting on the results, the Chairman, President & CEO of the company, Michael Patrick George, said: "Although revenues for the year were lower, the company made significant progress in protecting and developing our assets while minimizing our operating expenses. In California, where the difficult electricity market made water conveyance prohibitively expensive for most of the year, we protected conserved water from being lost and exercised important water storage and transfer rights.
"The company also helped to avert negative impacts on senior water rights threatened by an adverse water rights settlement proposed in December. In Colorado, we successfully resolved an attempted condemnation of a portion of our water rights, negotiated the sale of water from our Cherry Creek Project and acquired important project permits."
George went on to say, "The company has rationalized its asset mix, concentrating its resources on developing its Northern California water assets and the Cherry Creek Project in Colorado. In addition, we assisted clients in protecting, developing and managing their water rights.
"The company continues to make progress in clarifying the rules for profitable water transfers between willing sellers and willing buyers, despite entrenched opposition to the emergence of a properly regulated water market. Our future depends on creating value for both water rights holders with temporary surpluses and for consumers experiencing temporary or chronic shortages."
Western Water Company is engaged in the identification, development, transportation, sale and lease of water rights and water to municipalities and other end users in the western United States and owns water rights and real estatee in California and Colorado.
