Published:
Consolidated Water Co. Ltd. Reports First Quarter Operating Results
Consolidated Water Co. Ltd. Reports First Quarter Operating Results
GEORGE TOWN, Grand Cayman,Cayman Islands, May 12 /PRNewswire-FirstCall/ -
- Consolidated Water Co. Ltd. (Nasdaq: CWCO) today reported its operating
results for the first quarter of 2008. The Company will host an investor
conference call to discuss its operating results tomorrow -- Tuesday, May 13,
2008 -- at 10:00 a.m. EDT (see details below).
Revenues for the three months ended March 31, 2008 approximated
$12.7 million and were relatively unchanged when compared with $12.7 million
in the first quarter of 2007. Retail water sales declined slightly to
approximately $5.0 million in the most recent quarter, versus $5.1 in the
corresponding period of the previous year. Bulk water revenues increased 18%
to approximately $6.2 million, compared with $5.2 million in the year-earlier
quarter. Services revenues declined 35% to approximately $1.6 million, versus
$2.4 million in the first quarter of 2007. The Company reported a net income
decline to $1,673,867, or $0.12 per diluted share, for the three months ended
March 31, 2008, when compared with net income of $3,587,478, or $0.25 per
diluted share, for the three months ended March 31, 2007.
Consolidated gross profit approximated $4.5 million in the most recent
quarter, versus approximately $5.3 million in the corresponding period of the
previous year. The gross profit on Retail revenues approximated $3.3 million
(65% of revenues) in the quarter ended March 31, 2008, compared with
approximately $3.3 million (65% of revenues) in the three months ended
March 31, 2007. The gross profit on Bulk revenues decreased to approximately
$1.0 million (17% of revenues), compared with approximately $1.3 million
(26% of revenues) a year earlier. The gross profit on Services revenues
approximated $0.2 million and $0.6 million in the quarters ended March 31,
2008 and 2007, respectively.
General and administrative expenses increased 5% to approximately
$2.5 million in the first quarter of 2008, compared with approximately
$2.3 million in the prior-year quarter, primarily due to modest increases in a
variety of expense categories.
Interest income increased modestly to $452,690 in the most recent quarter,
versus $448,804 in the 2007 period, while interest expense declined to
$446,558, from $480,928 a year earlier. Other income of $19,855 for the three
months ended March 31, 2008 was down from $203,331 in the first quarter of
2007.
"The largest single factor in our first quarter earnings decline involved
our equity in the operating results of our OC-BVI affiliate in theBritish
Virgin Islands," commented Rick McTaggart, Chief Executive Officer of
Consolidated Water Co. Ltd. "While we remain optimistic that a satisfactory
resolution of disputed issues between OC-BVI and the BVI Government will be
forthcoming, due to the lack of progress in OC-BVI's negotiations with the BVI
government we decided this quarter to adjust our equity pickup for OC-BVI by
reflecting their results as if they were on the cash, rather than accrual,
basis for revenue recognition. As the BVI government has not paid anything on
their outstanding receivables to OC-BVI since January 2008, the net effect of
this change resulted in our Company recording a loss from our equity
investment in OC-BVI of approximately $(493,000) for the 2008 quarter as
compared to income from this investment of approximately $459,000 for the
prior year's quarter."
"Revenue and earnings from our consolidated business segments declined in
the most recent quarter, primarily due to lower Services revenues and lower
gross profit margins on our Bulk water sales," continued Mr. McTaggart.
"Retail water sales were flat, reflecting a 5.4% reduction in the volume of
gallons sold that we believe was due in part to significantly higher amounts
of rainfall on Grand Cayman Island in 2008 as compared to the first quarter of
2007."
"While revenues rose 18% in our Bulk segment due to increased water
deliveries in theBahamas andGrand Cayman, gross profit margins declined as a
result of higher diesel and maintenance costs at ourBahamas operations."
"The 35% reduction in first quarter Services revenues, when compared with
the year-earlier quarter, was due to the timing of construction expenditures
at various projects. Services revenues should pick up significantly during
the balance of the year, as construction accelerates at the Frank Sound plant
on Grand Cayman Island."
"Overall, we do not believe our first quarter operating results reflect
the outlook for all of 2008. Higher Services revenues and the possibility of
a satisfactory resolution of the OC-BVI dispute have the potential to
positively impact our results during the balance of the year. The Company is
currently pursuing prospective seawater desalination projects in a number of
countries, and we remain confident in the role Consolidated Water will play as
potable water becomes an increasingly scarce resource in the future,"
concluded Mr. McTaggart.
The Company will host a conference call at 10:00 a.m. EDT tomorrow --
Tuesday, May 13, 2008. Shareholders and other interested parties may
participate in the conference call by dialing 800-860-2442
(international/local participants dial 412-858-4600) and requesting
participation in the "Consolidated Water Conference Call" a few minutes before
10:00 a.m. EDT on May 13, 2008. A replay of the conference call will be
available one hour after the call through May 20, 2008 at 5:00 p.m. EDT by
dialing 877-344-7529 (international/local participants dial 412-317-0088) and
entering the conference ID 419464.
CWCO-E
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates seawater desalination
plants and water distribution systems in areas of the world where naturally
occurring supplies of potable water are scarce or nonexistent. The Company
currently operates water production and/or distribution facilities in the
Cayman Islands,Belize, theBritish Virgin Islands andThe Commonwealth of The
Bahamas. The Company is currently constructing a seawater desalination plant
inBermuda.
The ordinary (common) shares of Consolidated Water Co. Ltd. are traded on
the NASDAQ Global Select Market under the symbol "CWCO". Additional
information on the Company is available on its website at http://www.cwco.com.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe",
"estimate", "project", "intend", "expect," "should" or similar expressions.
These statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not limited to,
continued acceptance of the Company's products and services in the
marketplace, changes in its relationship with the Governments of the
jurisdictions in which it operates, the manner in which the disputed issues
between OC-BVI and the BVI Government are resolved, the ability to
successfully secure contracts for water projects in other countries, the
ability to develop and operate such projects profitably and the Company's
ability to manage growth and other risks detailed in the Company's periodic
report filings with the Securities and Exchange Commission. By making these
forward-looking statements, the Company undertakes no obligation to update
these statements for revisions or changes after the date of this release.
For further information, please contact:
Frederick W. McTaggart, President and CEO, at (345) 945-4277 or David W.
Sasnett, Executive Vice President and CFO, at (954) 427-6283 or via e-mail at
info@cwco.com
http://www.cwco.com
or
RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or
via e-mail at info@rjfalkner.com
CONSOLIDATED WATER CO. LTD.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2008 2007
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 39,753,270 $ 38,529,383
Accounts receivable, net 9,654,491 9,828,529
Inventory 3,968,679 3,649,991
Prepaid expenses and other current
assets 999,029 1,411,231
Current portion of loans receivable 904,425 947,854
Total current assets 55,279,894 54,366,988
Property, plant and equipment, net 59,229,878 59,981,514
Construction in progress 5,181,557 4,989,779
Loans receivable 2,133,350 2,329,262
Investment in and loan to affiliate 16,698,741 17,501,848
Intangible assets, net 2,684,735 2,881,900
Goodwill 3,587,754 3,587,754
Other assets 3,722,145 3,691,839
Total assets $ 148,518,054 $ 149,330,884
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and other current
liabilities $ 3,258,398 $ 4,996,728
Dividends payable 1,005,793 60,719
Current portion of long term debt 1,163,368 1,142,255
Total current liabilities 5,427,559 6,199,702
Long term debt 22,059,459 22,358,338
Other liabilities 470,510 476,136
Minority interest in subsidiary 1,372,575 1,392,254
Total liabilities 29,330,103 30,426,430
Stockholders' equity
Controlling interests:
Redeemable preferred stock, $0.60 par
value. Authorized 200,000 shares;
issued and outstanding 20,270 and
21,082 shares, respectively 12,163 12,650
Class A common stock, $0.60 par value.
Authorized 19,655,000 shares;
issued and outstanding 14,518,860
and 14,507,486 shares, respectively 8,711,315 8,704,492
Class B common stock, $0.60 par value.
Authorized 145,000 shares;
none issued or outstanding - -
Additional paid-in capital 80,239,317 79,771,093
Retained earnings 29,714,462 29,853,720
118,677,257 118,341,955
Non-controlling interests 510,694 562,499
Total stockholders' equity 119,187,951 118,904,454
Total liabilities and stockholders'
equity $ 148,518,054 $ 149,330,884
CONSOLIDATED WATER CO. LTD.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended March 31,
2008 2007
Retail water revenues $ 5,010,511 $ 5,104,210
Bulk water revenues 6,167,324 5,227,521
Services revenues 1,557,894 2,402,879
Total revenues 12,735,729 12,734,610
Cost of retail revenues 1,744,170 1,763,316
Cost of bulk revenues 5,139,285 3,888,962
Cost of services revenues 1,316,216 1,778,977
Total cost of revenues 8,199,671 7,431,255
Gross profit 4,536,058 5,303,355
General and administrative expenses 2,466,592 2,339,181
Income from operations 2,069,466 2,964,174
Other income (expense):
Interest income 452,690 448,804
Interest expense (446,558) (480,928)
Other income 19,855 203,331
Equity in earnings (loss) of
affiliate (493,070) 459,123
Other income (expense), net (467,083) 630,330
Income before non-controlling and
minority interests 1,602,383 3,594,504
Income (loss) attributable to
non-controlling and minority interests (71,484) 7,026
Net income $ 1,673,867 $ 3,587,478
Basic earnings per common share $ 0.12 $ 0.25
Diluted earnings per common share $ 0.12 $ 0.25
Dividends declared per common share $ 0.13 $ 0.065
Weighted average number of common
shares used in the determination of:
Basic earnings per share 14,507,897 14,141,620
Diluted earnings per share 14,532,303 14,377,695
SOURCE Consolidated Water Co. Ltd.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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