|
|
|
Note 4.
Acquisitions |
|
In 2005, after receiving
regulatory approval, the Company’s subsidiaries acquired three water
systems for a combined purchase price of $807, including liabilities
assumed of $336, which was the approximate value of the rate base in
aggregate of
the assets acquired.
In 2004, after receiving regulatory approval, the Company’s wholly owned
subsidiary, New Mexico Water, acquired the stock of National Utilities
Corporation. The purchase was for $900, which was the approximate amount
of rate base of the assets acquired and for certain real estate used by
the water system.
In 2003, after receiving regulatory approval, the Company acquired the
Kaanapali Water Corporation and renamed the corporation Hawaii Water
Service Company, Inc. The purchase was for $6,094, which was the
approximate amount of the rate
base of assets acquired.
Condensed balance sheets and pro forma results of operations for these
acquisitions have not been presented since the impact of the purchases
was not material. Minimal or no goodwill was recorded in connection with
the acquisitions. |
| |
|
Note 5.
Intangible Assets |
|
As of December 31, 2005 and
2004, intangible assets that will continue to be amortized and those not
amortized were: |
| |
|
2005 |
|
2004 |
| |
Weighted
Average
Amortized
Period |
Gross
Carrying
Value |
Accumulated
Amortization |
Net
Carrying
Value |
|
Gross
Carrying
Value |
Accumulated
Amortization |
Net
Carrying
Value |
|
Amortized intangible
assets: |
|
|
|
|
|
|
|
Hawthorne lease |
15 |
$6,515 |
$4,271 |
$2,244 |
|
$6,515 |
$3,897 |
$2,678 |
|
Water pumping rights |
usage |
1,084 |
11 |
1,073 |
|
1,046 |
8 |
1,038 |
|
Water planning studies |
14 |
2,873 |
605 |
2,268 |
|
3,164 |
763 |
2,401 |
|
Leasehold
improvements & other |
24 |
876 |
515 |
361 |
|
1,130 |
624 |
506 |
|
Total |
16 |
$11,348 |
$5,402 |
$5,946 |
|
$11,855 |
$5,232 |
$6,623 |
|
Unamortized
intangible assets: |
|
|
|
|
|
|
|
Perpetual water rights and other |
|
$2,878 |
-- |
$2,878 |
|
$2,969 |
-- |
$2,969 |
|
|
For the years ending
December 31, 2005, 2004, and 2003, amortization of intangible assets was
$876, $799, and $713, respectively. Estimated future amortization
expense related to intangible assets for the succeeding five years is
$749, $706, $677, $652, and $624, and $2,537 thereafter. |
|
|
|
Note 6.
Preferred Stock |
|
As of December 31, 2005 and
2004, 380,000 shares of preferred stock were authorized. Dividends on
outstanding shares are payable quarterly at a fixed rate before any
dividends can be paid on common stock.
The outstanding 139,000 shares of $25 par value cumulative, 4.4% Series
C preferred shares are not convertible to common stock. A premium of
$243 would be due to preferred stock shareholders upon voluntary
liquidation of Series C. There is no premium in the event of an
involuntary liquidation. Each Series C preferred share is entitled to 16
votes, with the right to cumulative votes at any election of directors. |
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