Consolidated Water Announces Record Second
Quarter Earnings; Net Income Rises 44% in First Six
Months of 2000
GEORGE TOWN, Cayman Islands, B.W.I., Aug. 14 /PRNewswire/ -- Consolidated Water Co. Ltd. (Nasdaq: CWCO -
news), which develops and operates seawater conversion plants and water distribution systems in areas where natural supplies
of drinking (i.e., potable) water are scarce, today announced higher revenue and earnings for the second quarter and first half of
the year 2000.
Revenue for the quarter ended June 30, 2000, increased approximately 10% to $2,495,848, compared with $2,264,098 in the
second quarter of 1999. Net income increased 16% to $667,002, or $0.19 per diluted share, in the second quarter of 2000,
versus $575,793, or $0.18 per diluted share, in the quarter ended June 30, 1999. The weighted number of common shares
used in the determination of diluted earnings per share increased 8% to 3,470,423, compared with 3,225,395 in the second
quarter of 1999, due to the issuance of additional shares in a public stock offering in May 2000.
The first half of FY2000 witnessed a revenue gain of approximately 17% to $5,174,230, compared with $4,427,194 in the
corresponding period of 1999. Net income for the first six months of 2000 increased approximately 44% to $1,521,885, or
$0.46 per diluted share, versus $1,054,652, or $0.33 per diluted share, in the prior-year period. The weighted number of
common shares used in the determination of diluted earnings per share increased 3% to 3,289,857, compared with 3,200,693
in the first six months of 1999, due to the issuance of additional shares in a public stock offering in May 2000.
``We are very pleased to report another record quarter in revenue and earnings for the three months ended June 30, 2000,''
stated Jeffrey Parker, Chairman/CEO of Consolidated Water Co. Ltd. ``Growth in tourism on Grand Cayman was consistent
with historical trends during the most recent quarter, and expansion in our customer base reflected additional hotel and
condominium capacity on the island. Several tourist-related construction projects are currently underway in our license area,
and we are optimistic that 2000 will be another record year for our Company.''
``Shortly after the close of our second quarter, we announced plans to acquire SeaTec Belize Ltd., which operates a reverse
osmosis seawater conversion plant on the island of Ambergris Caye off the coast of Belize in Central America,'' continued
Parker. ``The acquisition was completed on July 27, 2000. This represents our initial expansion outside of the Cayman Islands,
and we expect the operation on Ambergris Caye to contribute three to six cents to Consolidated's earnings per share during the
first twelve months under our ownership. Ambergris Caye has become a popular tourist and scuba diving destination, and we
expect demand for fresh water to grow as the island's tourist-based economy continues to expand.''
``We are cautiously optimistic that water production will begin in the Bimini Islands of the Bahamas by early next year. During
the next few months, we believe the level of resort development on Bimini will support initial production from the modular
seawater conversion plant that we have already purchased for the island. Thus, if there are no further delays in contract
documentation and government approvals, Consolidated could be operating in three countries by the year 2001. Our long-term
strategy envisions expansion to other areas where naturally-occurring supplies of fresh drinking water are scarce or
nonexistent,'' concluded Parker.
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 acquired SeaTec Belize Ltd., which operates a reverse osmosis seawater conversion facility on
Ambergris Caye off the mainland of Belize, and has signed contracts for an operation 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'', ``intend'', ``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 Governments of the jurisdictions in which it operates, 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 periodic report 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.
For further information, please contact:
Alexander S. Bodden, Vice President, Finance at (345) 945-4277 or via e-mail at cwco@candw.ky, or RJ Falkner &
Company, Inc., Investor Relations Counsel at (800) 377-9893 or via e-mail at info@rjfalkner.com.
Consolidated Water Co. Ltd.
SELECTED FINANCIAL HIGHLIGHTS
(All figures in U.S. Dollars and determined in accordance with
U.S. Generally Accepted Accounting Principles)
Three Months Ended
June 30, 2000 June 30, 1999
Income
Water sales $2,379,353 $2,151,487
Other income 116,495 112,611
2,495,848 2,264,098
Expenses
Cost of water sales 1,295,271 1,215,276
Administrative costs and interest expense 533,575 473,029
Net Income $667,002 $575,793
Earnings per ordinary share
Basic $0.20 $0.19
Diluted $0.19 $0.18
Weighted number of common shares used in the
determination of earnings per ordinary share.
Basic 3,373,747 3,035,238
Diluted 3,470,423 3,225,395
Consolidated Water Co. Ltd.
SELECTED FINANCIAL HIGHLIGHTS
(All figures in U.S. Dollars and determined in accordance with
U.S. Generally Accepted Accounting Principles)
Six Months Ended
June 30, 2000 June 30, 1999
Income
Water sales $4,942,405 $4,257,780
Other income 231,825 169,414
5,174,230 4,427,194
Expenses
Cost of water sales 2,663,636 2,408,311
Administrative costs and interest expense 988,709 964,231
Net Income $1,521,885 $1,054,652
Earnings per ordinary share
Basic $0.48 $0.35
Diluted $0.46 $0.33
Weighted number of common shares used in the
determination of earnings per ordinary share.
Basic 3,198,591 3,032,289
Diluted 3,289,857 3,200,693
Note: Figures for the six months ended June 30, 1999 have been restated to reflect a change in accounting principle that
reduced net income by $115,888, or $0.04 per diluted share. This change in accounting principle was necessitated when the
Company began reporting its financial results in accordance with Generally Accepted Accounting Principles (GAAP). Prior to
June 30, 2000, the Company had reported its financial results in accordance with International Accounting Standards (IAS).
SOURCE: Consolidated Water Co. Ltd. |
