FIrst Quarter Earnings Up 23%
Consolidated Water Announces 23% Increase in First
Quarter Earnings; Revenue Increases 24% as Growth
in Tourism Boosts Demand for Water
GEORGE TOWN, Cayman Islands, B.W.I., May 25 /PRNewswire/ -- Consolidated Water Co. Ltd. (Nasdaq: CWCO -
news), which develops and operates seawater conversion plants and water distribution systems in the Cayman Islands where
natural supplies of drinking (i.e., potable) water are scarce, today announced higher revenue and earnings for the first quarter of
FY2000.
Revenue for the quarter ended March 31, 2000, increased approximately 24% to $2,678,381, compared with $2,163,096 in
the first quarter of 1999. Net income increased 23% to $749,271, or $0.24 per diluted share, in the first quarter of 2000,
versus $609,190, or $0.19 per diluted share, in the corresponding period of the prior year.
``We were very pleased with our Company's operating performance during the first quarter of the year 2000,'' commented
Jeffrey M. Parker, Chairman and Chief Executive Officer of Consolidated Water Co. Ltd. ``An increase in the number of
available hotel and condominium rooms allowed tourist arrivals on Grand Cayman to resume growing at a healthy rate during
the first three months of the year, propelling our revenue 24% above prior-year levels. Most of this growth occurred in
February and March, as January continued to be impacted by the year-end slowdown in world tourism related to Y2K
concerns.''
``The 23% gain in net income was particularly encouraging, in light of the fact that we expensed $115,888 (equivalent to $0.04
per diluted share) related to project development costs incurred in prior years. This was required by a recently implemented
International Accounting Standard (IAS) and represents a one-time charge that will not impact future quarters. Direct expenses,
as a percentage of revenue, declined to 51.1% in the most recent quarter, compared with 55.2% in the first quarter of 1999,
reflecting improvements in productivity following our purchase of the West Bay Plant and continuing income from the settlement
of the Hyatt lawsuit.''
``It now appears that growth in tourism on Grand Cayman will be in line with long-term historical trends during the year 2000
following last year's slump, which was related to a temporary reduction in hotel rooms and Y2K-related issues,'' continued
Parker. ``If this turns out to be the case, Consolidated Water should enjoy an excellent year in its domestic operations, and we
continue to pursue water conversion project opportunities abroad.''
Consolidated Water Co. Ltd. intends to develop and operate seawater conversion plants and water distribution systems in
areas of the world where naturally-occurring supplies of potable water are scarce or nonexistent. It currently operates a public
water utility in certain areas of the Cayman Islands under a 20-year exclusive license from the Government of the Cayman
Islands. The Company has signed contracts for its first overseas operations in the Commonwealth of the Bahamas.
The common stock of Consolidated Water Co. Ltd. is traded on the Nasdaq National Market under the symbol ``CWCO''.
This press release includes statements that may constitute ``forward-looking'' statements, usually containing the words
``believe'', ``estimate'', ``project'', ``expect'' 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 Government of the Cayman Islands, the ability to successfully secure
contracts for water projects in other countries, the ability to develop and operate such projects profitably, and other risks
detailed in the Company's 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.
Consolidated Water Co. Ltd.
SELECTED FINANCIAL HIGHLIGHTS
Three Months Ended
March 31 March 31
2000 1999
Revenue 2,678,381 2,163,096
Expenses
Direct expenses 1,368,365 1,193,035
Indirect expenses 444,857 360,871
Exceptional item 115,888 0
Net Income $749,271 $609,190
Retained earnings brought forward 7,104,523 5,672,585
Available for distribution 7,853,794 6,281,775
Quarterly dividend payable 264,282 0
Retained earnings carried forward $ 7,589,512 $ 6,281,775
Earnings per ordinary share
Basic $0.24 $0.20
Diluted $0.24 $0.19
Weighted number of common
shares used in the
determination of earnings
per ordinary share.
Basic 3,076,961 3,056,012
Diluted 3,183,450 3,191,583
SOURCE: Consolidated Water Co. Ltd. |
