CLINTON, Conn., Nov. 9, 2010 (GLOBE NEWSWIRE) -- Connecticut Water Service, Inc. (Nasdaq:CTWS) announced net income of $4.7 million and earnings per basic average share (EPS) of $0.54 for the third quarter of 2010, compared to net income of $5.8 million and EPS of $0.68 for the third quarter of 2009. In the third quarter of 2009, the Company completed real estate transactions that generated revenues of $2.2 million and EPS of $0.16. No similar transactions were completed in 2010.
In 2010, total revenue in the quarter grew to $22.7 million from $20.5 million in 2009, an increase of $2.2 million, or 11%. Total revenue includes all revenues generated by the Company's three business segments: Water Activities, Services and Rentals, and Real Estate.
The increased revenues were partially offset by a one-time pre-tax charge of approximately $820,000 associated with an organizational review principally at the Company's corporate headquarters. Additionally, O&M costs were up due in part to a $154,000 increase in uncollectible accounts from customers and a $148,000 increase in water treatment costs. Revenue growth was further offset by a $268,000, or 22%, increase in interest and debt expenses for the quarter and a $1.7 million increase in income taxes, resulting from the better financial performance in 2010.
Third-quarter net income in the Water Activities segment, the Company's principal business, grew to $4.5 million from $4.1 million in 2009, an increase of 8.6%. The gain was largely attributable to increased revenue through a rate increase of 13% that became effective part way through the third quarter on July 14, 2010, and a 19% increase in water production due to hotter and drier weather compared to 2009.
The Services and Rentals segment generated an EPS of $0.02 in the third quarter of 2010 compared to $0.03 in same period of last year. There were no transactions in the Real Estate segment in the third quarter of 2010. In 2009, the segment produced an EPS of $0.16 in the third quarter due to the sale of a conservation easement on 200 acres of open space land to the Town of Windsor Locks, Connecticut, and the sale of a small residential property.
Eric W. Thornburg, Chairman, President, and Chief Executive Officer, stated, "I am pleased with the solid performance in the Company's core business segment, the Water Activities Segment. For the quarter, the segment produced pre-tax net income of $0.83 per share compared to $0.60 per share in the same period of 2009." Mr. Thornburg added, "We expect 2010 earnings from this segment to be higher than in 2009."
For the first nine months of 2010, the Company reported net income of $8.0 million and basic EPS of $0.94. During the same period in 2009, the company reported net income of $9.2 million and basic EPS of $1.08. Total revenue increased $3.5 million to $55.4 million from $51.9 million in 2009. The revenue increase was largely offset by higher O&M, income tax, depreciation, and interest and debt expenses for the period.
Connecticut Water Service, Inc. is the largest publicly traded water company based in New England. Through its wholly-owned public water utility subsidiary, The Connecticut Water Company, the Company provides drinking water to nearly 90,000 customers, or about 300,000 people, in 55 towns throughout Connecticut.
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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 operations, 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.
CONTACT: Connecticut Water Service, Inc. Daniel J. Meaney, APR, Director of Corporate Communications (860) 669 8630 Ext. 3016 93 West Main Street, Clinton, CT 06413-1600