Consolidated Water Co. Ltd.
) reported fourth-quarter 2013 earnings per share of 7 cents,
beating the Zacks Consensus Estimate of 5 cents by 40.0%.
However, on a year-over-year basis, earnings plunged a
substantial 72.0% due to a decline in the company's interest
income from Ocean Conversion (BVI) Ltd.
For the year 2013, earnings per share stood at 58 cents, missing
the Zacks Consensus Estimate by a cent. Earnings dropped 9.4%
year over year.
Share prices of Consolidated Water showed a northward movement
following the earnings beat. Favorable financial results in the
reported quarter together with promising prospects led to a 5.3%
increase in the share price to $13.00 per share on Mar 18.
For the quarter under review, Consolidated Water's total revenues
were $15.3 million, lagging the Zacks Consensus Estimate of $16
million by 4.6%. Quarterly revenues also declined 8.4% year over
In 2013, revenues were reported at $63.8 million, down 2.5% from
$65.5 million in 2012. The shortfall can be attributed to a 5.0%
decline in Retail Water sales due to lower gallons of sale from
the company's Cayman retail operation.
In 2013, Consolidated Water's total cost of revenues was $40.3
million, down 7.2% year over year due to a decline in costs of
Retail and Bulk segment revenues.
During the year, general and administrative expenses increased
8.9% year over year to $15.8 million due to higher expenses
incurred on project development.
A decrease in yearly revenue was compounded by higher general and
administrative expenses. This was partially offset by a drop in
total cost of revenues and absence of impairment loss in the
reported year. This led to an operating margin of 12.0% compared
with 10.6% in 2012.
Consolidated Water's interest expenses totaled $0.48 million,
down 44.8% year over year primarily due to the redemption of debt
and a decline in the principal balances of the company's
As of Dec 31, 2013, the company's cash and cash equivalents were
$33.6 million versus $33.9 million as of Dec 31, 2012.
The company had no outstanding long-term debt as of Dec 31, 2013
compared with $5.2 million at the end of 2012.
At the Peers
Connecticut Water Service Inc.
) reported fourth-quarter 2013 earnings of 17 cents per share,
lagging the Zacks Consensus Estimate of 28 cents by 39.3%.
California Water Service Group
) reported fourth-quarter 2013 earnings of 12 cents per share,
beating the Zacks Consensus Estimate of 5 cents by an impressive
American States Water Company
) posted fourth-quarter 2013 earnings of 30 cents per share,
beating the Zacks Consensus Estimate of 19 cents by 57.9%.
Consolidated Water currently has a Zacks Rank #3 (Hold).
AMER STATES WTR (AWR): Free Stock Analysis
CONN WATER SVC (CTWS): Free Stock Analysis
CONSOLTD WATER (CWCO): Free Stock Analysis
CALIF WATER SVC (CWT): Free Stock Analysis
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