Consolidated Water Co. Ltd. Reports 2010 Operating Results
Total revenues for the year ended
Retail water revenues declined 6% to approximately
Net income attributable to stockholders improved to
Consolidated gross profit decreased 28% to approximately
General and administrative expenses increased 11% to
Interest income increased 50% to
"Our retail water sales declined last year, reflecting a rate reduction of
more than 7% in
"In our bulk water business segment, we are particularly pleased to have
been awarded in
"The profitability of our services segment was adversely affected by a lull
in new project activity during 2010, which we attribute to the economic
downturn," continued McTaggart. "Meanwhile, we increased our sales and
marketing resources during 2010 in order to better pursue new project
opportunities in our existing markets and expand our reach into new
markets, including
"While consolidated earnings increased last year due primarily to improved
results at our OC-BVI affiliate and the absence of impairment charges that
depressed 2009 earnings, our 2010 profitability was negatively impacted by
incremental and significant administrative costs incurred by our Mexican
affiliate, which is pursuing the development of a 100 million US gallon per
day project in northern
"While looking forward is always a challenging task, we believe
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About
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 outcome of the
Company's negotiations with the Cayman Government regarding a new retail
franchise agreement, the ability to successfully secure contracts for water
projects, including the project under development in northern
CONSOLIDATED WATER CO. LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States dollars)
December 31, December 31,
2010 2009
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ASSETS
Current assets
Cash and cash equivalents $ 46,130,237 $ 44,429,190
Accounts receivable, net 12,132,730 9,980,928
Inventory 1,434,811 1,832,564
Prepaid expenses and other current assets 2,294,747 1,689,874
Current portion of loans receivable 1,733,799 1,216,098
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Total current assets 63,726,324 59,148,654
Property, plant and equipment, net 55,923,731 60,876,276
Construction in progress 249,300 370,131
Costs and estimated earnings in excess of
billings - construction project - 1,872,552
Inventory non-current 3,538,912 3,352,054
Loans receivable 12,602,419 10,875,848
Investment in affiliate 7,812,523 9,157,995
Intangible assets, net 1,710,737 1,919,656
Goodwill 3,587,754 3,587,754
Other assets 3,049,866 3,314,861
------------- -------------
Total assets $ 152,201,566 $ 154,475,781
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LIABILITIES AND EQUITY
Current liabilities
Accounts payable and other current
liabilities $ 4,316,125 $ 6,187,606
Dividends payable 1,152,614 1,152,702
Current portion of long term debt 1,422,991 1,322,483
------------- -------------
Total current liabilities 6,891,730 8,662,791
Long term debt 16,883,794 19,806,784
Other liabilities 442,919 465,408
------------- -------------
Total liabilities 24,218,443 28,934,983
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Equity
Consolidated Water Co. Ltd. stockholders'
equity
Redeemable preferred stock, $0.60 par value.
Authorized 200,000 shares; issued and
outstanding 16,784 and 17,192 shares,
respectively 10,070 10,315
Class A common stock, $0.60 par value.
Authorized 24,655,000 shares; issued and
outstanding 14,555,393 and 14,541,878
shares, respectively 8,733,236 8,725,127
Class B common stock, $0.60 par value.
Authorized 145,000 shares; none issued or
outstanding - -
Additional paid-in capital 81,349,944 80,990,686
Retained earnings 36,289,706 34,365,640
------------- -------------
Total Consolidated Water Co. Ltd. stockholders'
equity 126,382,956 124,091,768
Non-controlling interests 1,600,167 1,449,030
------------- -------------
Total equity 127,983,123 125,540,798
------------- -------------
Total liabilities and equity $ 152,201,566 $ 154,475,781
============= =============
CONSOLIDATED WATER CO. LTD.
CONSOLIDATED STATEMENTS OF INCOME
(Expressed in United States dollars)
Year Ended December 31,
----------------------------------------
2010 2009 2008
------------ ------------ ------------
Retail water revenues $ 21,864,252 $ 23,239,756 $ 22,369,806
Bulk water revenues 25,302,093 25,905,077 30,121,536
Services revenues 3,542,209 8,874,684 13,187,617
------------ ------------ ------------
Total revenues 50,708,554 58,019,517 65,678,959
------------ ------------ ------------
Cost of retail revenues 10,361,302 9,812,434 10,566,747
Cost of bulk revenues 20,907,981 20,149,969 25,557,832
Cost of services revenues 2,828,776 5,058,037 10,920,537
------------ ------------ ------------
Total cost of revenues 34,098,059 35,020,440 47,045,116
------------ ------------ ------------
Gross profit 16,610,495 22,999,077 18,633,843
General and administrative
expenses 11,186,922 10,101,257 8,789,185
------------ ------------ ------------
Income from operations 5,423,573 12,897,820 9,844,658
------------ ------------ ------------
Other income (expense):
Interest income 1,375,827 917,330 1,393,691
Interest expense (1,584,771) (1,698,084) (1,755,969)
Other income 136,113 168,584 138,915
Equity in earnings (loss) of
affiliate 1,092,420 (1,025,968) (2,345,612)
Impairment of investment in
affiliate - (4,660,000) -
------------ ------------ ------------
Other income (expense), net 1,019,589 (6,298,138) (2,568,975)
------------ ------------ ------------
Net income 6,443,162 6,599,682 7,275,683
Income attributable to
non-controlling interests 151,137 501,111 65,967
------------ ------------ ------------
Net income attributable to
Consolidated Water Co. Ltd.
stockholders $ 6,292,025 $ 6,098,571 $ 7,209,716
============ ============ ============
Basic earnings per common share
attributable to Consolidated
Water Co. Ltd. common
stockholders $ 0.43 $ 0.42 $ 0.50
============ ============ ============
Diluted earnings per common share
attributable to Consolidated
Water Co. Ltd. common
stockholders $ 0.43 $ 0.42 $ 0.50
============ ============ ============
Dividends declared per common
share $ 0.300 $ 0.280 $ 0.325
============ ============ ============
Weighted average number of common
shares used in the determination
of:
Basic earnings per share 14,547,065 14,535,192 14,519,847
============ ============ ============
Diluted earnings per share 14,597,894 14,588,144 14,538,971
============ ============ ============
For further information, please contact:Frederick W. McTaggart President and CEO (345) 945-4277David W. Sasnett Executive Vice President and CFO (954) 427-6283 info@cwco.com http://www.cwco.com orRJ Falkner & Company, Inc. Investor Relations Counsel (800) 377-9893 info@rjfalkner.com
Source:
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