California Water Service Group Annual Report 2005

Consolidated Statements of Income
California Water Service Group

CUSTOMERS

In thousands, except per share data
For the years ended December 31,			2005	2004	2003
Operating revenue			$320,728	$315,567	$277,128
Operating expenses:
	Operations
		Purchased water	87,504	89,787	80,831
		Purchased power	20,541	21,801	21,921
		Pump taxes	7,620	7,555	6,272
		Administrative and general	48,655	47,078	40,969
		Other	40,032	39,929	37,476
	Maintenance		15,216	13,228	12,717
	Depreciation and amortization		28,731	26,114	23,256
	Income taxes		20,006	17,084	12,898
	Property and other taxes		12,613	11,508	10,554
		Total operating expenses	280,918	274,084	246,894
	Net operating expenses		39,810	41,483	30,234
Other income and expenses:
	Non-regulated income, net		2,863	2,375	2,097
	Gain on the sale of non-utility property		2,250	8	4,603
		Total other income and expenses	5,113	2,383	6,700
Interest expense:
	Interest expense		18,600	18,664	19,512
	Less capitalized interest		900	824	1,995
		Net interest expense	17,700	17,840	17,517
Net income			$27,223	$26,026	$19,417
Earnings per share:
	Basic		$1.47	$1.46	$1.21
	Diluted		$1.47	$1.46	$1.21
Weighted average number of common shares outstanding
	Basic		18,379	17,652	15,882
	Diluted		18,402	17,674	18,893

See accompanying Notes to Consolidated Financial Statements.