CLINTON, Conn., Nov. 9, 2009 (GLOBE NEWSWIRE) -- Connecticut Water Service, Inc. (Nasdaq:CTWS) announced that its Water Activities Segment, the Company's largest business segment, generated $7.1 million of net income, or $0.83 per basic common share, on operating revenues of $45.2 million for the nine month period ending September 30, 2009. The result is similar to the first nine months of 2008 when the segment contributed $0.83 per basic common share, or $7.0 million, on operating revenues of $46.6 million.
In the nine month period ending September 30, 2009, the combined net income from the Company's three business segments - Water Activities, Real Estate, and Services and Rentals - was $9.2 million, or $1.07 per basic common share, on revenues of $51.9 million. In the same period of 2008, the Company reported net income of $7.5 million, or $0.89 per basic common share, on revenues of $50.9 million. The largest contributor to the year-over-year increase in net income was activity in the Real Estate Segment, including the sale of a conservation easement on 200 acres of pristine open space land to the Town of Windsor Locks, Connecticut, and a small residential property. In the first nine months of 2009, the Real Estate Segment had net income of $1.4 million, or $0.16 per basic common share. There were no earnings in the Real Estate Segment in the first nine months of 2008. The Company's Services and Rentals Segment contributed $0.08 per basic common share through September 30, 2009, which is $0.02 more than reported in the same period of 2008.
Operating expenses in the first nine months of 2009, which includes operations & maintenance costs, depreciation costs and income taxes, were $34.8 million, which is a decrease of $1.4 million compared to the same period of 2008. The operating expense reduction is due largely to a lower effective tax rate attributable in part to utilization of state tax credits associated with the Company's continued investment in its infrastructure.
Eric W. Thornburg, President and Chief Executive Officer, stated: "We are pleased to be able to deliver overall earnings growth through the first nine months of this year despite a 6% reduction in billed water consumption caused by a cool, wet summer and a challenging economy that is impacting our residential, commercial and industrial customers. Our Real Estate and Services and Rentals segments were really the difference, contributing $0.18 per basic common share more in the first nine months of 2009 than they did in 2008." Mr. Thornburg adds that the Company's regulated water utility subsidiary is planning to file for rate relief in early 2010.
In the third quarter of 2009, the Company's net income totaled $5.8 million, or $0.67 per basic common share, on total revenues of $20.5 million. In 2008, the Company reported net income of $2.8 million, or $0.34 per basic common share, on total revenues of $18.5 million for the same three month period.
Net income in the Water Activities Segment for the quarter ending September 30, 2009, was $4.1 million, or $0.48 per basic common share, on operating revenues of $16.7 million compared to net income of $2.7 million, or $0.32 per basic common share, on operating revenues of $17.0 million in the same period of 2008. The decrease in revenues was more than offset by a $1.8 million decrease in operating expenses for the quarter. Operating expenses for the third quarter of 2009 were $11.4 million compared to $13.2 million in the same period of 2008. The decrease in expenses was largely attributable to cost containment and employee focus on capital projects, including addressing infrastructure needs and the implementation of an Enterprise Resource Planning computer system. A lower effective tax rate, attributable in part to utilization of state tax credits associated with the Company's continued investment in its infrastructure, also contributed to the lower operating expenses for the period.
In the third quarter of 2009, the Services and Rentals Segment generated net income of $0.03 per basic common share compared to approximately a penny and a half in the same period of 2008. The Real Estate Segment generated net income of $0.16 per basic common share in the third quarter of 2009. There was no activity in Real Estate Segment in the third quarter of 2008.
Connecticut Water Service, Inc. is New England's largest locally-based, investor-owned water company. Through its wholly-owned public water utility subsidiary, The Connecticut Water Company, the Company provides drinking water to over 88,000 customers, or nearly 300,000 people, in 54 towns throughout Connecticut.
The Connecticut Water Service, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2893
This news release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's results of operation, financial position and long-term strategy. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties discussed in our filings with the Securities and Exchange Commission, which could cause the Company's actual results to differ materially from expected results. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
Connecticut Water Service, Inc. & Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
Three Months Ended Nine Months Ended
(In thousands except per September 30, September 30,
share amounts) 2009 2008 2009 2008
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Operating Revenues $16,659 $17,040 $45,187 $46,629
Other Utility Income, Net of
Taxes $197 $162 $545 $438
Utility Operating Income $5,451 $3,994 $10,889 $10,788
Gain on Property Transactions,
Net of Taxes $1,389 $-- $1,389 $--
Non-Water Sales Earnings
(Services and Rentals), Net
of Taxes $255 $136 $717 $530
Net Income $5,759 $2,835 $9,169 $7,491
Net Income Applicable to
Common Shareholders $5,749 $2,825 $9,140 $7,462
Basic Earnings Per Average
Common Share $0.67 $0.34 $1.07 $0.89
Diluted Earnings Per Average
Common Share $0.67 $0.34 $1.07 $0.89
Basic Weighted Average Common
Shares Outstanding 8,530 8,437 8,512 8,416
Diluted Weighted Average
Common Shares Outstanding 8,531 8,442 8,512 8,422
Book Value Per Share $12.71 $12.27 $12.71 $12.27
Condensed Consolidated Balance Sheets (unaudited)
(In thousands) September 30, September 30,
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ASSETS
Net Utility Plant $318,142 $292,911
Current Assets 25,938 23,259
Other Assets 56,469 58,898
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Total Assets $400,549 $375,068
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CAPITALIZATION AND LIABILITIES
Shareholders' Equity $108,539 $103,695
Preferred Stock 772 772
Long-Term Debt 92,020 92,229
Current Liabilities 41,163 23,532
Other Liabilities and Deferred Credits 158,055 154,840
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Total Capitalization and Liabilities $400,549 $375,068
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