Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from the line of James Lykins of Hilliard Lyons.
James Lykins – Hilliard Lyons
Good morning everyone.
Martin Kropelnicki
Hi Jim, how are you doing?
James Lykins – Hilliard Lyons
Good thanks and congrats on a great quarter. First of all I wonder if you could just with the credit crunch give us a feel for what any impact could be and also because if there have been any or there could be any changes in your dividend policy?
Martin Kropelnicki
The company has had a long history of dividends and increasing that dividend, at this point we don’t foresee any changes. We are very proud of our heritage. I think the most important thing I could share with you is that we started preparing to be in a defensive huddle with the credit crisis in August of last year, early August when the commercial paper market started to have some problems. So, we feel the company was ahead of the curve in terms of implementing some procedures and changes and processes to be ready for the downturn. So, at this point, I don’t see anything that frankly is going to affect us. Obviously the longer term issue is one’s ability to go out to the market and to raise capital, whether it is debt or equity. S&P reaffirmed our A+ rating in September which we think is good and appropriate, A+ stable. Obviously you see the financial results, California Water was very aggressive with the water action plan that was published by the CPUC. So, we think we are in good shape. It is hard to (inaudible) a crystal ball, who knows what is going to happen. They came out this morning that there was a contraction in GDP in the third quarter but I think from our standpoint for the things that we can’t control within the company, we think we are well positioned.
James Lykins – Hilliard Lyons
What about on the acquisition side, has the credit crunch maybe given you some additional opportunities to make some acquisitions it might have been possible before?
Martin Kropelnicki
On the acquisition side, we still have our same principles. We would like to buy acquisitions that are accretive. Certainly, in a down economy sellers’ expectations might come down a little bit that could potentially help us. But as you know Jim, in a regulated entity you can only pay so much and still make money on it and we are watching that. I will tell you we have not seen a flurry of new deals come through our offices but we are always out there looking.
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