California Water Service Group (NYSE:CWT) Q1 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 11:00 am ET


California Water Service Group (NYSE:CWT) Q1 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the California Water Service Group Conference Call to discuss the proposed acquisition of SJW Group and its First Quarter results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Mr. David Healy, Cal Water Vice President and Corporate Controller. Sir, you may begin.

David B. Healey

Thank you, Brian. Welcome everyone to California Water Service Group's conference call to discuss its proposed acquisition of SJW Group and its first quarter results.

With me today is Martin Kropelnicki, our President and CEO; and Thomas Smegal, our Vice President, Chief Financial Officer. Replay dial-in information for this call can be found in our quarterly earnings release, which was issued earlier today. The replay will be available until June 25th, 2018.

As a reminder, before we begin, the company has two slide decks to accompany the earnings call this quarter. The slide decks were furnished with an 8-K this morning and were also available at the company's website at

Before looking at this quarter's results and the discussion of the proposed acquisition, we'd like to take a few moments to cover forward-looking statements. During the course of this call, the company may make certain forward-looking statements because these statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the company's current expectations.

Because of this, the company strongly advises all current shareholders as well as interested parties to carefully read and understand the company's disclosures on risks and uncertainties found in our Form 10-K, Form 10-Q, press releases and other reports filed from time-to-time with the Securities and Exchange Commission.

I'm going to pass it over to Tom to begin.

Thomas F. Smegal, III

Thanks, Dave. Good morning, everyone and thanks for joining us to discuss our proposal to acquire SJW Group for $68.25 per share in cash as well as our first quarter results.

I'm joined by Martin Kropelnicki, President and CEO of California Water Service Group. Marty will begin with the discussion of our compelling proposal and why we believe it's clearly superior to SJW's proposed merger with Connecticut Water and to SJW's standalone prospects. Following that we will review our first quarter results. After our prepared remarks, we will open the call to your questions.

So, let me hand it over to Marty.

Martin A. Kropelnicki

Thank you, Tom. Good morning, everyone. It's been a busy morning. I appreciate you taking time to join us here this morning. I want to begin by saying that our proposal to acquire San Jose Water for $68.25 a share in cash is a good deal for SJW stockholders. Our offer provides SJW stockholders substantial and immediate value and is clearly superior to the SJW pending merger with Connecticut Water.

If you turn to page three, I'd like to take