Consolidated Water Co. Ltd. (CWCO) reported second-quarter 2014 earnings per share of 19 cents, flat with the prior-year figure. Quarterly earnings significantly surpassed the Zacks Consensus Estimate of 7 cents.
Increases in both total cost of revenues as well as general and administrative expenses negatively impacted quarterly earnings.
In the quarter under review, Consolidated Water’s total revenues were $16.9 million, missing the Zacks Consensus Estimate of $17 million. Revenues however increased 2.2% year over year primarily due to increased services (up 105.3% year over year) and retail water (up 5.2% year over year) revenues. This was partially offset by lower bulk water revenues (down 1.9% year over year).
In the second quarter, total cost of revenues increased 3.8% year over year to $10.6 million primarily due to higher cost of revenues at its retail and services segments.
The company’s quarterly gross profit was around $6.37 million, down 0.4% year over year primarily due to a minor decline in retail gross profit as the Bali retail operations ran in the red.
Consolidated Water incurred $3.8 million as general and administrative expenses, up 5.2% year over year primarily due to a rise in project development expenses by the company's Mexico subsidiary, N.S.C. Agua, S.A. de C.V.
Income from operations decreased 7.6% year over year to $2.6 million.
In the reported quarter, the company’s interest expenses decreased 61.9% year over year to around $0.05 million.
As of Jun 30, 2014, Consolidated Water’s cash and cash equivalents were $34.4 million versus $33.6 million as of Dec 31, 2013.
The company had no outstanding long-term debt (current portion) as of Jun 30, 2014 compared with $5.2 million at the end of 2013.
In the first half of 2014, Consolidated Water’s net cash flow from operating activities was around $22 million versus $6.5 million in the prior-year period.
At the Peers
Aqua America Inc. (WTR) announced second-quarter 2014 earnings of 31 cents per share, beating the Zacks Consensus Estimate by a penny.
American Water Works Company, Inc. (AWK) posted second-quarter 2014 earnings of 62 cents per share, missing the Zacks Consensus Estimate of 65 cents.
Connecticut Water Service Inc. (CTWS) reported second-quarter 2014 earnings of 67 cents per share, surpassing the Zacks Consensus Estimate by 28.8%.
Consolidated Water currently has a Zacks Rank #3 (Hold).