Consolidated Water Co. Ltd. ( CWCO ) announced first
quarter 2013 adjusted earnings per share of 26 cents, up 60% from
the year-ago earnings. Earnings also beat the Zacks Consensus
Estimate by a substantial 73.3%.
The earnings upside reflects the company's effective
cost-control efforts and the proceeds from the British Virgin
Islands (:BVI) government contract for water supplied to the Island
of Tortola from the Baughers Bay facility.
In contrast to earnings, Consolidated Water's revenue in the
first quarter was slightly disappointing. The top line declined
marginally to $16.6 million from $16.7 million in the prior-year
period. This was due to a combined drop in Retail and Bulk water
revenues partially offset by increased Services revenues.
Reported quarter revenue nevertheless surpassed the Zacks
Consensus Estimate by 3.8%.
Revenue from the Retail water segment decreased 3% year over
year to $6.4 million due to a 5% drop in water volume sales. Bulk
water revenues also followed suit and shrank 2% year over year to
$9.9 million. This was mainly on account of a 6% fall in water
sales partly owing to the termination of the Lower Valley Plant
On the other hand, Services revenues (including gains from
management fees earned with respect to Ocean Conversion Ltd. (OCI)
and stock sales to OCI-BVI) performed well, increasing to $0.3
million from $0.1 million.
Consolidated Water's total cost of revenues witnessed a 4.1%
reduction to $10.3 million from the year-ago quarter. This was
mainly due to deceleration in costs from the Retail and Bulk water
Gross profit jumped 5% year over year to $6.2 million on account
of the substantial cost decrease overriding the slight decline in
Interest expenses in the first quarter were $0.13 million versus
$0.4 million in the comparable year-ago quarter.
Consolidated Water's cash & cash equivalents increased 5.8%
to $35.9 million as of Mar 31, 2013 from $33.9 million as of Dec
Long-term debt declined as of Mar 31, 2013 to $4.8 million from
$5.2 million as of Dec 31, 2012.
Consolidated Water's current ratio ranged from 7.4-to-1
indicating the company is well positioned to pay off its debt
Other Water Utility Releases
American States Water Company ( AWR ) reported first
quarter 2013 earnings of 69 cents, exceeding the Zacks Consensus
Estimate by 38%.
Aqua America, Inc. ( WTR ) posted first
quarter 2013 earnings of 29 cents per share, outpacing the Zacks
Consensus Estimate of 27 cents per share.
American Water Works Company Inc. ( AWK ) recorded earnings
of 32 cents in the first quarter 2013, which trailed the Zacks
Consensus Estimate by 5.9%.
Consolidated Water registered healthy earnings growth for the
second time in a row by beating our expectations in the first
The company's operational start-up of the reverse osmosis
desalination plant in Bali, Indonesia will certainly give its
earnings stream a boost. Another of Consolidated Water's
large-scale desalination plant in Mexico is progressing well and is
expected to augment returns in the future.
Currently, Consolidated Water carries a Zacks Rank #3 (Hold).
Based in Grand Cayman, Cayman Islands, the company through its
subsidiaries, develops and operates seawater desalination plants
and water distribution systems.AMER WATER WORK (AWK): Free Stock Analysis
ReportAMER STATES WTR (AWR): Free Stock Analysis
ReportCONSOLTD WATER (CWCO): Free Stock Analysis
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