Connecticut Water Lags Q4 Earnings Ests

Zacks

Connecticut Water Service Inc. (CTWS) reported fourth-quarter 2013 earnings of 17 cents per share, lagging the Zacks Consensus Estimate of 28 cents by 39.3%. Earnings however increased 6.3% from the year-ago comparable period.

In 2013, earnings were $1.66 per share, missing the Zacks Consensus Estimate of $1.73 by 4.0%. Yearly earnings were 8.5% higher than 2012. Earnings improved year over year due to good results from the Services and Rentals segment.

Total Revenue

In the quarter under review, Connecticut Water’s total revenues were $21.6 million, surpassing the Zacks Consensus Estimate of $21.0 million by 2.7%. Total revenues were also up 10.7% year over year.

Total revenues of $99.0 million in 2013 were 6.9% higher on a year-over-year basis. The upswing can be attributed to the acquisition of Biddeford & Saco Water Company (:BSWC) and implementation of Water Revenue Adjustment (:WRA) in the reported year.

Operational Update

In 2013, the company’s total operating expenses were $69.5 million, up 8.2% year over year primarily due to higher operating & maintenance expense and other tax related expenses.

Connecticut Water’s yearly operating income increased 11.9% year over year to $22.8 million.

Interest expenses totaled $5.8 million in 2013, down 30.1% from 2012. The decline was due to a refinancing effect and falling debt levels.

Financial Update

As of Dec 31, 2013, Connecticut Water’s current assets were $46.9 million compared with $36.4 million as of Dec 31, 2012.

Net Utility Plant was worth $471.9 million as of Dec 31, 2013 versus $447.9 million as of Dec 31, 2012.

Long-term debt as of Dec 31, 2013, was $175.0 million compared with $178.5 million as of Dec 31, 2012.

Peer Releases

California Water Service Group (CWT) reported fourth-quarter 2013 earnings of 12 cents per share, beating the Zacks Consensus Estimate of 5 cents by an impressive 140.0%.

American States Water Company (AWR) posted fourth-quarter 2013 earnings of 30 cents per share, beating the Zacks Consensus Estimate of 19 cents by 57.9%.

Aqua America Inc. (WTR) reported fourth-quarter 2013 earnings per share of 26 cents, beating the Zacks Consensus Estimate of 25 cents by a cent.

Connecticut Water Service currently has a Zacks Rank #2 (Buy).

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