FORM 10-Q Page 1 of 16
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
---------------------------------------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------------------------- -----------------
Commission File Number 1-3437-2
-----------------------------------------------------
AMERICAN WATER WORKS COMPANY, INC.
- ---------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 51-0063696
- ------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1025 Laurel Oak Road, Voorhees, New Jersey 08043
- ---------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(609) 346-8200
- ---------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- ---------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
At May 7, 1996, the number of shares of common stock, $1.25 par value,
outstanding was 34,534,832 shares.
<PAGE> Page 2 FORM 10-Q
PART I FINANCIAL INFORMATION
----------------------------
Item 1. Financial Statements
-----------------------------
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Consolidated Statements of Income and Retained Earnings (Unaudited)
(In thousands, except per share amounts)
<TABLE>
Three Months Ended
March 31,
1996 1995
-------- --------
<S> <C> <C>
CONSOLIDATED INCOME
Operating revenues $198,189 $180,844
-------- --------
Operating expenses
Operation and maintenance 100,644 94,174
Depreciation and amortization 21,542 19,370
General taxes 20,578 19,290
-------- --------
142,764 132,834
-------- --------
Operating income 55,425 48,010
Allowance for other funds used during
construction 3,637 2,118
Other income 283 337
-------- --------
59,345 50,465
-------- --------
Income deductions
Interest 32,698 28,678
Allowance for borrowed funds used
during construction (2,628) (1,845)
Amortization of debt expense 341 320
Preferred dividends of subsidiaries 912 934
Other deductions 345 411
-------- --------
31,668 28,498
-------- --------
Income before income taxes 27,677 21,967
Provision for income taxes 10,646 8,420
-------- --------
Net income 17,031 13,547
Dividends on preferred stocks 996 996
-------- --------
Net income to common stock $ 16,035 $ 12,551
======== ========
Average shares of common stock outstanding 34,153 32,794
Earnings per common share on average shares
outstanding $ 0.47 $ 0.38
======== ========
<PAGE> Page 3 FORM 10-Q
Three Months Ended
March 31,
1996 1995
-------- --------
<S> <C> <C>
CONSOLIDATED RETAINED EARNINGS
Balance at beginning of period $664,452 $618,875
Add - net income 17,031 13,547
-------- --------
681,483 632,422
-------- --------
Deduct - dividends
Preferred stock 882 882
Preference stock 114 114
Common stock - $.35 per share in 1996;
$.32 per share in 1995 11,902 10,471
-------- --------
12,898 11,467
-------- --------
Balance at end of period $668,585 $620,955
======== ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> Page 4 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Consolidated Balance Sheet (Unaudited)
(In thousands)
March 31 December 31
1996 1995
---------- ----------
ASSETS
Property, plant and equipment
Utility plant - at original cost less
accumulated depreciation $3,256,645 $2,884,681
Utility plant acquisition adjustments 55,998 34,974
Other utility plant adjustments 134 147
Non-utility property, net of accumulated
depreciation 22,676 20,144
Excess of cost of investments in
subsidiaries over book equity at
acquisition 22,654 22,638
---------- ----------
3,358,107 2,962,584
---------- ----------
Current assets
Cash and cash equivalents 30,559 23,204
Temporary investments - at cost plus
accrued interest 248 513
Customer accounts receivable 62,966 61,786
Allowance for uncollectible accounts (1,398) (1,030)
Unbilled revenues 55,117 47,790
Miscellaneous receivables 5,221 4,571
Materials and supplies 11,484 9,599
Deferred vacation pay 12,062 9,374
Other 6,682 8,563
---------- ----------
182,941 164,370
---------- ----------
Regulatory and other long-term assets
Regulatory asset - income taxes
recoverable through rates 174,271 172,265
Funds restricted for construction 11,213 13,927
Debt and preferred stock expense 25,446 20,753
Deferred pension expense 16,004 16,468
Deferred postretirement benefit expense 11,656 11,418
Accrued revenue 10,652 1,717
Deferred treatment plant costs 8,821 0
Tank painting costs 8,675 8,901
Other 31,788 30,738
---------- ----------
298,526 276,187
---------- ----------
$3,839,574 $3,403,141
========== ==========
<PAGE> Page 5 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Consolidated Balance Sheet (Unaudited)
(In thousands)
<TABLE>
March 31 December 31
1996 1995
---------- ----------
<S> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Common stock $ 42,871 $ 42,392
Paid-in capital 127,816 114,161
Retained earnings 668,585 664,452
Unearned compensation (1,986) (2,066)
---------- ----------
Common stockholders' equity 837,286 818,939
Preferred stocks with mandatory redemption
requirements 40,000 40,000
Preferred stocks without mandatory
redemption requirements 11,673 11,673
Preferred stocks of subsidiaries with
mandatory redemption requirements 42,159 42,326
Preferred stocks of subsidiaries without
mandatory redemption requirements 6,288 6,288
Long-term debt
American Water Works Company, Inc. 116,000 116,000
Subsidiaries 1,378,172 1,268,649
---------- ----------
2,431,578 2,303,875
---------- ----------
Current liabilities
Bank debt 427,533 148,639
Current portion of long-term debt 65,083 44,321
Accounts payable 20,322 43,300
Taxes accrued, including federal income 22,955 13,098
Interest accrued 37,900 26,263
Accrued vacation pay 12,218 9,512
Other 34,387 35,940
---------- ----------
620,398 321,073
---------- ----------
<PAGE> Page 6 FORM 10-Q
March 31 December 31
1996 1995
---------- ----------
<S> <C> <C>
Regulatory and other long-term liabilities
Advances for construction $ 129,859 $ 131,141
Deferred income taxes 362,623 356,608
Deferred investment tax credits 38,224 38,515
Accrued pension expense 26,091 30 652
Accrued postretirement benefit expense 9,100 9,100
Other 8,889 3,840
---------- ----------
574,786 569,856
---------- ----------
Contributions in aid of construction 212,812 208,337
---------- ----------
Commitments and contingencies 0 0
---------- ----------
$3,839,574 $3,403,141
========== ==========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> Page 7 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Consolidated Statement of Cash Flows (Unaudited)
(In thousands)
<TABLE>
Three Months Ended
March 31,
1996 1995
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 17,031 $ 13,547
Adjustments
Depreciation and amortization 21,542 19,370
Provision for deferred income taxes 5,135 4,835
Provision for losses on accounts receivable 1,023 951
Allowance for other funds used during
construction (3,637) (2,118)
Employee benefit expenses less
than funding (560) (315)
Common stock contributions to employee
benefit plans 454 353
Deferred tank painting costs (143) (16)
Deferred rate case expense (516) (452)
Amortization of deferred charges 2,481 1,893
Other, net 1,029 1,412
Changes in assets and liabilities,
net of effects from acquisition
Accounts receivable 3,568 5,159
Unbilled revenues (2,700) (189)
Other current assets 1,431 604
Accounts payable (22,978) (14,233)
Taxes accrued, including federal income 9,857 7,095
Interest accrued 9,260 4,889
Other current liabilities (1,553) (962)
-------- --------
Net cash from operating activities 40,724 41,823
-------- --------CASH FLOWS FROM INVESTING ACTIVITIES
Construction expenditures (38,144) (57,131)
Allowance for other funds used during
construction 3,637 2,118
Water system acquisition (266,449) (15)
Proceeds from the disposition of property,
plant and equipment 500 151
Removal costs from property, plant and
equipment retirements (552) (965)
Funds restricted for construction activity 2,714 21,631
Temporary investments 265 497
-------- --------
Net cash used in investing activities (298,029) (33,714)
-------- --------
<PAGE> Page 8 FORM 10-Q
Three Months Ended
March 31,
1996 1995
-------- --------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from common stock $ 13,680 $ 5,182
Net borrowings
under line-of-credit agreements 278,894 16,057
Advances and contributions for construction,
net of refunds 894 531
Debt and stock issuance costs (5,051) (102)
Repayment of long-term debt (10,692) (5,162)
Redemption of preferred stocks (167) (265)
Dividends paid (12,898) (11,467)
-------- --------
Net cash from financing activities 264,660 4,774
-------- --------
Net increase in cash and cash
equivalents 7,355 12,883
Cash and cash equivalents at beginning
of period 23,204 30,091
-------- --------
Cash and cash equivalents at end of period $ 30,559 $ 42,974
======== ========
Cash paid during the period for:
Interest, net of capitalized amount $ 21,770 $ 24,487
======== ========
Income taxes $ 5,758 $ 2,273
======== ========
Common stock issued in lieu of cash in connection with the Savings Plan
for Employees totaled $454 in 1996 and $353 in 1995.
Debt and liabilities assumed in connection with the Acquisition amounted to
$140 million and $7 million, respectively.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE> Page 9 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Information Accompanying Financial Statements (Unaudited)
(In thousands, except share and per share amounts)
March 31 December 31
1996 1995
-------- --------
Capital Stock of American Water Works Company, Inc.
Preferred stocks with mandatory redemption requirements
Cumulative preferred stock - $25 par value
Authorized - 1,770,000 shares
8.50% series (non-voting) - 1,600,000 shares
outstanding $ 40,000 $ 40,000
-------- --------
$ 40,000 $ 40,000
======== ========
Preferred stocks without mandatory redemption requirements
Cumulative preferred stock - $25 par value
5% series (one-tenth of a vote per share)
- 101,777 shares outstanding $ 2,544 $ 2,544
Cumulative preference stock - $25 par value
Authorized - 750,000 shares
5% series (non-voting) - 365,158 shares
outstanding 9,129 9,129
Cumulative preferential stock - $35 par value 0 0
Authorized - 3,000,000 shares -------- --------
$ 11,673 $ 11,673
======== ========
The terms of the 8.50% preferred stock provide that all shares of the
series shall be redeemed on December 1, 2000.
Common stockholders' equity
Common stock - $1.25 par value
Authorized - 100,000,000 shares
Outstanding - 34,296,817 shares at
March 31, 1996;
33,913,335 at December 31, 1995 $ 42,871 $ 42,392
Paid-in capital 127,816 114,161
Retained earnings 668,585 664,452
Unearned compensation (1,986) (2,066)
-------- --------
$837,286 $818,939
======== ========
During the first three months of 1996, 364,073 shares of common stock were
issued in connection with the Dividend Reinvestment and Stock Purchase Plan
and 19,409 shares were issued in connection with the Savings Plan for
Employees. At March 31, 1996, common shares reserved for issuance in
connection with the Company's stock plans were 30,461,581 shares for the
Stockholder Rights Plan, 3,937,091 shares for the Dividend Reinvestment and
Stock Purchase Plan, 534,849 shares for the Employees' Stock Ownership
Plan, 267,824 shares for the Savings Plan for Employees and 350,000 shares
for the Long-Term Performance-Based Incentive Plan.
<PAGE> Page 10 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Notes to Consolidated Financial Statements (Unaudited)
March 31, 1996
NOTE 1 -- Financial Statement Presentation
The information presented in this Form 10-Q is unaudited. In the opinion
of management the information reported reflects all adjustments, consisting
of normal recurring adjustments, which were necessary to a fair statement
of the results for the periods reported. Certain reclassifications have
been made to conform previously reported data to the current presentation.
NOTE 2 -- Acquisition
On February 16, 1996, Pennsylvania-American Water Company, a subsidiary of
American Water Works Company, Inc. (the "Company"), purchased the water
utility operations of Pennsylvania Gas & Water Company ("PG&W," now known
as PG Energy Inc.) for approximately $414 million (subject to certain
adjustments) (the "Acquisition"). The operations acquired generated
revenues of $66.3 million in calendar year 1995. The Company is accounting
for the Acquisition as a purchase. The purchase price is subject to
adjustment based upon the actual value of the net assets of the acquired
operations as of the date of consummation of the Acquisition as compared to
the estimated value of the net assets as of December 31, 1995. The
purchase was funded through short-term borrowings and the assumption of
$140 million of long-term debt and $7 million of other liabilities.
Included in the Company's net income to common stock of $16 million ($.47
per share) for the first quarter of 1996 was approximately $.6 million
($.02 per share) attributable to the Acquisition.
The pro forma results listed below were prepared as if the Acquisition had
occurred on January 1, 1995 and include the historical results of the
Company and PG & W. This unaudited pro forma information is not
necessarily indicative of the results of operations that might have
occurred had the Acquisition actually taken place on the date indicated, or
of future results of operations of the combined entities (dollars in
thousands, except per share data):
Three months ended
March 31,
1996 1995
-------- --------
Revenues $205,733 $196,484
Net income 16,800 14,361
Earnings per common share $ 0.46 $ 0.41
<PAGE> Page 11 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Notes to Consolidated Financial Statements (Unaudited)(contd.)
March 31, 1996
NOTE 3 -- Equity/Private Offering
On April 5, 1996, the Company filed a registration statement with the
Securities and Exchange Commission for a proposed public offering of
3,643,100 shares of its common stock.
Concurrently with and conditioned upon the completion of this offering,
certain members of families that are existing large holders of common stock
(the "Ware Family Buyers") have agreed to purchase from the Company and the
Company has agreed to sell to the Ware Family Buyers 556,900 shares of
common stock at the price to public less underwriting discounts and
commissions in a private offering.
The Ware Family Buyers include a special purpose company of which Marilyn
Ware Lewis is Manager, which was established by three trusts for the
benefit of the children of John H. Ware, 3rd and his wife Marian S. Ware
and which has agreed to purchase 450,000 of the 556,900 shares to be sold
to the Ware Family Buyers. The Ware Family Buyers also include Rhoda C.
Ware (through a limited partnership controlled by her) and certain members
of her family who have agreed to purchase a total of 106,900 of the 556,900
shares to be sold to the Ware Family Buyers (including 10,000 to be
purchased by William R. Cobb).
Marilyn Ware Lewis, the Chairman of the Board of the Company, and Paul W.
Ware, a director of the Company, are the daughter and son of John H. Ware,
3rd and Marian S. Ware. Nancy W. Wainwright and William R. Cobb are
directors of the Company and the daughter and son-in-law, respectively, of
Rhoda C. Ware.
As of March 27, 1996, members of the Ware Family, and charitable
foundations set up by such members, beneficially owned approximately 9.2
million (or approximately 27%) of the outstanding shares of common stock.
The net proceeds from the sale of the 3,643,100 shares of common stock
offered publicly and the 556,900 shares of common stock to be sold to the
Ware Family Buyers are estimated to be $152.6 million ($172.5 million if
the Underwriters' over-allotment option is exercised in full), after
deducting the underwriting discounts and commissions and estimated offering
expenses payable by the Company.
NOTE 4 -- Proposed Stock Split
The Company's Board of Directors plans to authorize a two-for-one common
stock split, in conjunction with stockholder's approval of an increase in
the number of shares of common stock the Company is authorized to issue.
Stockholders of the Company approved the increase in the number of shares
of common stock the Company is authorized to issue from 100,000,000 shares
to 300,000,000 shares at the Company's Annual Meeting of Stockholders held
May 2, 1996. The stock split will be paid in the form of a 100% stock
dividend whereby each holder of shares of common stock will receive one
additional share of common stock for each share owned. It is anticipated
that the record date for the stock dividend will be July 15, 1996. Upon
effecting the stock dividend, the Company's dividend will be adjusted
accordingly.
<PAGE> Page 12 FORM 10-Q
AMERICAN WATER WORKS COMPANY, INC. AND SUBSIDIARY COMPANIES
-----------------------------------------------------------
Notes to Consolidated Financial Statements (Unaudited) (contd.)
March 31, 1996
NOTE 5 -- Regulatory Decision
On March 13, 1996, the New Jersey Board of Public Utilities approved a
$39.5 million per annum rate increase for New Jersey-American Water Company
("New Jersey-American"), including an estimated $13.5 million in annual
revenues from potential wholesale customers. The increase reflects the
completion of the Tri-County Water Supply Project that takes water from the
Delaware River to a new treatment plant and then delivers it throughout the
southern New Jersey area by way of a 29 mile pipeline. This regional
project was designed partly as a supply source for certain water resellers
who have been mandated by the state to reduce their intake from an aquifer
that is suffering from declining water levels. The actual revenues that
New Jersey-American receives will depend on many factors, including the
number of potential wholesale customers that ultimately enter into
contracts to use water from the project as their alternative source of
supply and the volume of water sold. The applicable New Jersey statute
provides for a 45 day appeal period from the date of the order. Rates,
however, may be placed in effect, subject to refund, prior to the end of
the appeal period. An appeal has been filed with the New Jersey Board of
Public Utilities. New Jersey-American is contesting this appeal, and in
the opinion of its management, such appeal is not likely to succeed.
However, should this appeal be upheld, the result would not have a material
adverse effect on the operating results or financial position of New
Jersey-American.
<PAGE> Page 13 FORM 10-Q
PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
- --------------------------------------------------------------------------
Results of Operations
- ---------------------
Operating revenues for the first quarter of 1996 were 10% higher than for
the first quarter of 1995 due to the acquisition of the regulated water
operations and certain related assets of PG Energy Inc.(the "Acquisition")
(formerly known as Pennsylvania Gas and Water Company) on February 16,
1996, and authorized rate increases and increased sales volume for several
subsidiaries. This year's first quarter revenues reflect $8.4 million
related to the Acquisition.
During the first four months of 1996, four regulated subsidiaries received
rate orders which are expected to provide approximately $46.7 million in
additional annual revenues. On March 13, 1996, the New Jersey Board of
Public Utilities approved a $39.5 million per annum rate increase for the
Company's subsidiary in New Jersey. See Note 5 to the "Notes to
Consolidated Financial Statements (Unaudited)" on page 12 for more
information on the regulatory decision. Eight subsidiaries have rate
increase applications on file before regulatory agencies which, if granted
in full, would provide approximately $26.5 million in additional annual
revenues.
The 55 billion gallons of water sold in the first quarter of 1996 were 6%
more than the 51.9 billion gallons sold in the first quarter of 1995.
Residential, commercial, industrial and other customers accounted for 44%,
19%, 21% and 16%, respectively, of the 6% increase. The Acquisition in the
first quarter of 1996 accounted for approximately 1.4 billion gallons of
the increase in water sold.
Total operating expenses for the first quarter of 1996 were 7% higher than
a year ago. Increases in operation and maintenance expenses were limited
by continuing efforts to achieve cost efficiencies. Depreciation expense
was higher due to growth in utility plant in service. Higher general tax
expense reflects higher property values and increased gross receipts.
Income taxes increased as a result of increased earnings in the first 3
months of 1996 when compared to the first 3 months in 1995.
Net income to common stock was $16 million for the first quarter of 1996
compared with $12.6 million for the same period in 1995. The net income
to common stock for the first quarter of 1996 included approximately
$.6 million attributable to the Acquisition.
<PAGE> Page 14 FORM 10-Q
Capital Resources and Liquidity
- --------------------------------
All shares of common stock issued during 1996 have been the result of stock
issued in conjunction with the Dividend Reinvestment and Stock Purchase
Plan and the Savings Plan for Employees.
During the balance of 1996, the Company plans to issue shares of common
stock through its Dividend Reinvestment and Stock Purchase Plan, the
Employees' Stock Ownership Plan, the Savings Plan for Employees and the
Long-Term Performance-Based Incentive Plan. Proceeds from the issuance of
common stock will fund additional equity investments in subsidiaries. In
addition, the Company intends to publicly and privately offer common stock
to finance the larger investment in subsidiaries relating to the
Acquisition. The Company also plans to have a two-for-one common stock
split in conjunction with the stockholders' approval of an increase in the
number of shares authorized to issue from 100 million to 300 million. See
"Notes 3 and 4 to the Notes to Consolidated Financial Statements
(Unaudited)" on page 11 for additional information relating to the
public/private offerings and the stock split.
A subsidiary, Pennsylvania-American Water Company, assumed $140 million of
long-term debt in conjunction with the Acquisition. The Acquisition,
completed February 16, 1996, for approximately $414 million (subject to
certain adjustments), was funded through short-term debt which will be
repaid through the issuance of long-term debt and the sale of common stock
to the Company. For additional information relating to the Acquisition,
see Note 2 to the "Notes to Consolidated Financial Statements (Unaudited)"
on page 10.
Two regulated subsidiaries issued $16 million of long-term debt during the
first four months of 1996. In addition, the Company invested $6 million in
the common stock of a subsidiary. The proceeds from these financing
arrangements have been used to fund construction programs and repay bank
borrowings. It is anticipated that some subsidiaries will sell long-term
debt to institutional investors, long-term debt to govermental entities
and common stock to the Company during the remainder of 1996, with the
proceeds used to repay bank loans and fund construction projects.
<PAGE> Page 15 FORM 10-Q
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
-----------------------------------------
A. Exhibits
--------
Exhibit number (27), Financial Data Schedule, is filed herewith.
B. Reports on Form 8-K
-------------------
A current report on Form 8-K was filed on March 1, 1996, by the
Company describing a subsidiary's acquisition (the "Acquisition") of
the regulated water operations and certain related assets of PG Energy
Inc. (formerly known as Pennsylvania Gas and Water Company)(the "Acquired
Business"), as required under Item 2 of Form 8-K.
Form 8-K/A was filed on April 3, 1996, amending Item 7. Financial
Statements, Pro Forma Financial Information and Exhibits to the Current
Form 8-K filed on March 1, 1996. The required financial statements
were not filed with the Current Report on March 1, 1996, due to the
impractibility of filing such information as allowed by Item 7(a)(4)
and Item 7(b)(2). Form 8-K/A filed on April 3, 1996, included the
unaudited pro forma balance sheet presenting the combined financial
position of the Company and the Acquired Business as of December 31,
1995, assuming that the Acquisition had occurred as of December 31,
1995. The unaudited pro forma condensed statement of income was filed
giving effect to the Acquisition by combining the results of operations
of the Company for the year ended December 31, 1995, with the results
of operations of the Acquired Business for the year ended December 31,
1995. In addition, the Report of Independent Public Accountants and
the audited financial statements of the Acquired Business were included
with the 8-K/A filed on April 3, 1996.
A current report on Form 8-K was filed by the Company on April 25,
1996, reporting the results of operations for the quarter ended March 31,
1996.
<PAGE> Page 16 FORM 10-Q
SIGNATURES
- ----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERICAN WATER WORKS COMPANY, INC.
Date May 10, 1996 /s/ George W. Johnstone
- ---------------- -------------------------------------
George W. Johnstone, President and CEO
(Authorized Officer)
Date May 10, 1996 /s/ Robert D. Sievers
- ---------------- ------------------------------------
Robert D. Sievers, Comptroller
(Chief Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000318819
<NAME> R. D. SIEVERS
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 3,256,645
<OTHER-PROPERTY-AND-INVEST> 101,462
<TOTAL-CURRENT-ASSETS> 182,941
<TOTAL-DEFERRED-CHARGES> 266,738
<OTHER-ASSETS> 31,788
<TOTAL-ASSETS> 3,839,574
<COMMON> 42,871
<CAPITAL-SURPLUS-PAID-IN> 125,830
<RETAINED-EARNINGS> 668,585
<TOTAL-COMMON-STOCKHOLDERS-EQ> 837,286
82,159
17,961
<LONG-TERM-DEBT-NET> 1,494,172
<SHORT-TERM-NOTES> 427,533
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 65,083
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 915,380
<TOT-CAPITALIZATION-AND-LIAB> 3,839,574
<GROSS-OPERATING-REVENUE> 198,189
<INCOME-TAX-EXPENSE> 10,646
<OTHER-OPERATING-EXPENSES> 142,764
<TOTAL-OPERATING-EXPENSES> 153,410
<OPERATING-INCOME-LOSS> 44,779
<OTHER-INCOME-NET> 4,950
<INCOME-BEFORE-INTEREST-EXPEN> 49,729
<TOTAL-INTEREST-EXPENSE> 32,698
<NET-INCOME> 17,031
996
<EARNINGS-AVAILABLE-FOR-COMM> 16,035
<COMMON-STOCK-DIVIDENDS> 11,902
<TOTAL-INTEREST-ON-BONDS> 28,927
<CASH-FLOW-OPERATIONS> 40,724
<EPS-PRIMARY> .47
<EPS-DILUTED> 0
</TABLE>
