Executive Financial Report
For the Five Months Ended November 30, 2012
Executive Financial Report
Table of Contents
For the Five Months Ended November 30, 2012
Schedule
Page No.
Financial Statements Year-to-date Current vs. Prior Year – Accrual Basis
Statements of Operations
1
Balance Sheets
2
Statistics and Ratios – Cash and Accrual Basis
3
Cash and Investments
4
Construction Activities Year-to-date Actual vs. Budget – Accrual Basis
5
Eligibility of Securities
6
The Metropolitan Water District of Southern California
Statements of Operations - Accrual Basis
(Dollars in millions)
For the Five Months Ended
2012
Operating Revenues
Water Sales (2)
Wheeling / Exchange (2)
Readiness-to-Serve
Capacity Charge
Power Sales
$ 577.7
21.5
60.8
13.2
15.2
November 30,
$
Favorable/(Unfavorable)
Variance
$
%
2011
487.1
52.0
52.1
14.3
19.1
$
90.6
(30.5)
8.7
(1.0)
(3.9)
19%
(59%)
17%
(7%)
(20%)
688.4
624.5
64.0
10%
Operating Expenses
Cost of Water
Operations & Maintenance
Demand Management Programs
Depreciation & Amortization
180.0
159.4
18.1
113.7
166.5
148.1
18.9
115.7
(13.5)
(11.3)
0.9
2.0
(8%)
(8%)
5%
2%
Total Operating Expenses
471.1
449.2
(21.9)
(5%)
Net Operating Income
217.4
175.2
42.1
24%
Other Income (Expense)
Net Taxes/Annexations
Investment Income
Bond Interest Expense
Other
Total Other Income/(Expense) - Net
35.5
9.0
(41.6)
1.9
4.8
36.6
15.1
(55.3)
2.8
(0.9)
(1.0)
(6.1)
13.7
(0.9)
5.7
Total Operating Revenues
Net Income
$ 222.2
$
174.4
$
47.8
(3%)
(40%)
25%
(32%)
(649%)
27%
Notes:
(1)
Totals may not foot / cross foot due to rounding.
(2)
2012 includes adjustment for San Diego County Water Authority that reduced wheeling sales by $6,221,000 and 16,722 acre feet
and increased water sales by $8,812,000 and 16,722 acre feet.
-1-
The Metropolitan Water District of Southern California
Balance Sheets - Accrual Basis
(Dollars in millions)
November 30,
2012
2011
Assets
Cash and investments at book value (1)
Fair Value Adjustment
Accounts Receivable
Property, Plant and Equipment, net
Prepaid State Water Project Costs, net
Participation Rights, net
Deferred Charges and Water Rights
Deferred Outflow of Effective Swaps
Other
Total Assets
Liabilities and Equity
g
Long-Term
Debt
Fair Value of Interest Rate Swaps
Off-Aqueduct Power Facilities
Accounts Payable and Accrued Bond Interest
Deferred Income
State Water Project Obligations
Trust Funds and Other
$
Increase/(Decrease)
$
%
3%
154%
22%
1%
(1%)
(4%)
13%
22%
(6%)
1,122.1
23.3
410.2
8,262.5
1,451.6
328.9
284.4
111.4
212.2
$
1,090.3
9.2
336.9
8,206.6
1,460.4
342.6
250.7
91.6
225.5
$
31.8
14.1
73.2
55.9
(8.8)
(13.7)
33.7
19.8
(13.3)
$ 12,206.6
$
12,013.7
$
192.9
,
4,716.4
167.5
36.4
295.5
137.3
83.6
106.3
$
,
4,794.4
194.3
44.5
254.7
139.3
44.9
95.3
$
((77.9))
(26.7)
(8.1)
40.8
(2.0)
38.7
11.0
( )
(2%)
(14%)
(18%)
16%
(1%)
86%
12%
(0%)
$
2%
Total Liabilities
5,543.0
5,567.3
(24.3)
Equity
6,663.6
6,446.3
217.2
3%
192.9
2%
Total Liabilities and Equity
$ 12,206.6
$
12,013.7
$
Notes:
(1)
Fair value of cash and investments was $1,145.4 million and $1,099.5 million at November 30, 2012 and 2011, respectively.
(2)
Totals may not foot / cross foot due to rounding.
-2-
The Metropolitan Water District of Southern California
Statistics and Ratios
For the Five Months Ended
November 30,
2012
Sales Statistics - Accrual Basis
Water Sales (TAF) (2)
Wheeling/Exchange (TAF) (2)
Replenishment Sales (TAF)
CVWD Exchange (TAF)
Power Sales (MWh)
Average Sales Price (1)
Water Sales
Wheeling/Exchange
Replenishment Sales
CVWD Exchange
Power Sales
815.7
70.0
178.8
589.9
65.7
183.0
105.0
233.1
225.8
4.3
(183.0)
(105.0)
(54.3)
38%
7%
n/a
n/a
(23%)
$ 697.41
$ 396.15
$
$
$ 0.08
$ 683.15
$ 372.00
$ 459.58
$ 262.32
$ 0.08
$
14.26
$
24.15
$ (459.58)
$ (262.32)
$
-
2%
6%
n/a
n/a
0%
Notes:
(1)
(2)
(3)
2011
Increase/(Decrease)
TAF/$
%
Average prices calculated using exact rather than rounded dollar amounts.
2012 excludes adjustment for San Diego County Water Authority that reduced wheeling sales by
$6,221,000 and 16,722 acre feet and increased water sales by $8,812,000 and 16,722 acre feet.
The fixed charge coverage ratio, bond debt service coverage ratio and revenue bond debt as a percent
of equity are presented at quarter-end.
-3-
The Metropolitan Water District of Southern California
Cash and Investments at Fair Value
As of November 30, 2012
(Dollars in millions)
Restricted
Contractual
Funds Required for Operations
Debt Service Funds
Construction Funds
Stabilization Funds
Trust & Other Funds
Total
(1)
$
$
174.6
253.2
95.9
26.5
63.8
Unrestricted
Total
Board
$
59.6
20.0
$
1.0
29.5
421.3
-
$
235.2
253.2
125.4
447.8
83.8
$
79.6
$
451.8
$
1,145.4
(1)
614.0
Restricted investments of $22.2 million and $4.3 million were posted as collateral with Morgan Stanley
and JP Morgan Chase, respectively, pursuant to Metropolitan's interest rate swap agreements.
Trust & Other
Funds
7%
Stabilization Funds
39%
Construction
Funds
11%
-4-
Funds Required
for Operations
21%
Debt Service Funds
22%
The Metropolitan Water District of Southern California
Actual vs. Budget: Construction Activity - Accrual Basis
(Dollars in millions)
For the Five Months Ended November 30, 2012
Budget
Variance from Budget
Actual
(1)
$
%
Sources of Funds
Bond Construction Funds
R & R/General Funds
$
66.9
18.2
$
52.1
(0.4)
$
14.8
18.6
22%
102%
Total
$
85.1
$
51.7
$
33.4
39%
$
18.4
20.4
13.3
12.3
6.0
3.3
1.7
9.7
$
16.1
11.5
5.9
4.5
3.6
0.7
2.8
6.7
$
2.3
8.9
7.4
7.8
2.4
2.6
(1.1)
3.0
$
85.1
$
51.7
$
33.4
Program Expenses
Oxidation Retrofit Programs
Treatment Plant Improvement
CRA - Reliability/Containment Programs
Distribution System - Rehabilitation Program
La Verne Shop Facilities Upgrades
Information Technology System
Chlorine Containment and Handling Facilities
Other
Total
Notes:
(1)
(2)
Estimated year end results are under review.
Totals may not foot / cross foot due to rounding.
-5-
13%
44%
56%
64%
40%
80%
(62%)
31%
39%
-6-