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October 28, 1997
DOMINGUEZ SERVICES CORPORATION ANNOUNCES THIRD QUARTER RESULTS
LONG BEACH, Calif. (Oct. 28, 1997) – Dominguez Services Corporation (Nasdaq:DOMZ) today reported that revenues for the third quarter of 1997 rose ten percent to $8,170,627 from $7,404,372 in the corresponding period a year ago.
For the three months ended September 30, 1997, net income rose two percent to $808,535, or 80 cents per share. This compares with net income of $786,951, equal to 78 cents per share, in last year's third quarter. Operating income approximated $843,868 for the most recent three-month period, essentially unchanged from the same quarter last year.
Net income for the nine months ended September 30, 1997 totaled $1,618,813, equal to $1.61 per share, up slightly from $1,591,234, or $1.58 per share, in the prior year. Revenues advanced seven percent to $20,339,562 in the most recent nine-months from $18,985,561 in the same period last year.
For the trailing 12 months ended September 30, 1997, net income was $2,007,658, or $2.00 per share, on revenues of $26,058,787. This compares with net income of $1,956,804, equal to $1.95 per share, on revenues of $25,228,605 for the comparable period in the prior year.President and Chief Executive Officer Brian J. Brady was generally pleased with Dominguez' performance, but noted that ``although water sales were up 4% year to date from last year, results for the most recent quarter were constrained somewhat by the effects of higher water costs. The higher cost of water, principally incurred in our Kern River Valley, Calif. service area, is an isolated occurrence, but translated to sharply higher operating expense year over year.''
In noting accomplishments of the past quarter, Mr. Brady indicated that the successful transaction for Southlake Water Co. in the Kern River Valley, where the Company to date has acquired ten water systems, further strengthens Dominguez' market position and operating efficiencies in that region.
The Company continues to evaluate additional acquisition opportunities, Mr. Brady stated. He said that the initiative stands to gain momentum from legislation signed into law in California during the third quarter, whereby purchasers of water utilities can now use fair-market value of acquired assets for rate-making matters.
Mr. Brady concluded, ``The California Public Utilities Commission recently approved our Company's application to increase borrowings by up to $5,000,000, which we will use to retire other, higher-interest debt. By putting in place borrowing lines at more favorable interest rates, we further bolster Dominguez' already strong financial position.''
Dominguez Services Corporation is the holding company for several water utilities, the largest of which is Dominguez Water Company, serving more than 120,000 people in the Carson/Torrance area of Los Angeles County. Dominguez also owns and operates systems in the Kern River Valley in Kern County and the Antelope Valley in northern Los Angeles County.
Quarter Ended Year to Date 12 Months Ended 9/30/97
9/30/96
9/30/97
9/30/96
9/30/97
9/30/96
Net income $808,535
$786,951
$1,618,813
$1,591,234
$2,007,658
$1,956,804
Gross revenues $8,170,627
$7,404,372
$20,339,562
$18,985,561
$26,058,787
$25,228,605
Earnings per share $0.80
$0.78
$1.61
$1.58
$2.00
$1.95
Dividend per share $0.325
$0.310
$0.975
$0.930
$1.285
$1.220
Copies of the 10-Q may be obtained from the Corporate Secretary.
The 10-Q will also be available on EDGAR after Nov. 15, 1997.
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21718 S. Alameda Street
Long Beach, CA 90810
310/834-2625
310/834-8471 FAXThis web page was last updated on October 29, 1997. Please refer to PR Newswire or other Nasdaq informational services for subsequent news releases.
1997 Dominguez Services Corporation All Rights Reserved