California Water Service Group (NYSE:CWT) Q4 2022 Earnings Call Transcript

We have a very full pipeline. We’ll also continue to stay focused on risk management and paying attention to our supply chain issues, drought and climate change issues that affect the company long-term. We’ll be publishing our third ESG report here. Over the next few weeks, we look forward to sharing that with everyone in the progress we’ve made on our battles with climate change and what we’re doing to ensure sustainability for our customers. Lastly, I want to deviate a little bit and some of you might be thinking, who in the heck is this Tom Scanlon guy and what the heck happened to Dave Healy. Dave Healy, retired as our Corporate Controller. Some of you probably saw the 8-K last year, it was a planned retirement. So we’re lucky to have Tom Scanlon.

Tom has an undergraduate degree from Finance from Marquette University in Wisconsin, an MBA from the University of Illinois. He is a CPA and has a strong background in financial reporting and construction management. So Tom has been our Director of Financial Reporting since 2010. So he has been part of our succession planning process here at Cal water, certainly very, very well qualified. And frankly, with a strong background in construction accounting, he was a big add for us when we added him in 2010. Since construction and getting is a big part of what we do. So Tom, welcome. I also want to note that Justin Skarb, was promoted to Vice President of Community and Governmental Affairs just joined Cal Water in 2009. He was promoted to Director in 2017 and became an officer of the company effective January 1, with Tom Scanlon.

Justin has his BS in Political Science from Arizona State University, a Master’s in Communication from Cal State Hayward, and he’s currently finished up his Juris Doctor, which he expects to have in 2024. Likewise, you may have saw a press release from a couple weeks ago announcing Shawn Bunting has joined the company as our Vice President, General Counsel. Sean will be replacing Lynn McGhee who will officially retire at the end of this month after 19 years of service with the company. Shawn has been with American Waterworks for 15 years, serving in several various senior leadership roles. Shawn has a Bachelor of Arts in political and criminal justice from Gettysburg College and a Juris Doctor from the University of Pittsburgh Law School. He’s also a U.S. Marine Corps vet.

So officially welcome to Tom, Justin and Shawn. And then, lastly, I want to close out by just thanking Lynn and Dave, we’ve been very blessed at Cal Water to have a smart, thoughtful and creative leadership team. And although leadership changes are never easy, because we all get used to working together, and this has just been a marvelous team to have together for the last number of years without having any changes. We also understand and we encourage people to go retire and enjoy life. One of the great things about working at a company like Cal Water is we do have excellent benefits and excellent retirement program. So as much as change is painful to see our good friends and colleagues go, it’s a good thing because it gives people room to move up and succession planning is a core competency of management and the board here at Cal Water that we take very, very seriously.

So with Dave and Lynn, we just want to say thank you for all you’ve done for us over the years, you’ve been a major part of our team, you will be dearly, dearly missed, and we wish you all the best in your retirement. So with that funding, we want to open it up to questions please.

Operator: The floor is now open for your questions. . We have a question from the line of Angie Storozynski from Seaport. Please proceed.