CLINTON, Conn., May 9, 2011 (GLOBE NEWSWIRE) -- Connecticut Water Service, Inc. (Nasdaq:CTWS) announced income of $2.3 million, or $0.26 per basic common share, on total revenues of $17.5 million in the first quarter of 2011. This was an increase of $1.2 million, or $0.14 per basic common share, on total revenues of $15.2 million recorded in the first quarter of 2010. Total revenues include all revenues generated by the Company's three business segments: Water Activities, Services and Rentals, and Real Estate.
In the first quarter of 2011, income in the Company's core business, the Water Activities Segment, was $2.1 million, or $0.24 per basic common share, on revenues of $16.3 million. In the same period of 2010, income from the segment totaled $834,000, or $0.10 per basic common share, on revenues of $14.1 million. The increase in revenues for the Water Activities Segment was largely attributable to an approximate 13% rate increase approved in July 2010 and a Water Infrastructure and Conservation Adjustment (WICA) surcharge of approximately 1.6%.
The Company saw consistent performance from its Services and Rentals Segment in the first quarter of 2011 that contributed more than $0.02 per basic common share, which was approximately the same as the first quarter of 2010. There was no activity in the Real Estate Segment in the first quarter of 2011 or 2010.
Operation and maintenance (O&M) expenses in the first quarter decreased $80,000, or about 1%, over the same period in 2010 to $8 million. The largest O&M expense decreases came from a reduction in outside service costs associated with the implementation of an Enterprise Resource Planning information system that was largely completed in the first quarter of 2010. Cost containment measures related to property and liability insurance and energy management resulted in additional expense reductions. The O&M reductions were partially offset by increases in labor and benefit costs and regulatory expenses related to the 2010 rate case.
Eric W. Thornburg, Chairman, President and Chief Executive Officer, stated: "The increase in income from our core business, the Water Activities segment, is largely a result of new rates approved last July. Our people continue to focus on cost reduction and containment efforts without compromising our commitment to water quality and customer satisfaction. As a result we saw a 1% decline in O&M expenses. One example of cost containment is utility costs where quarter-over-quarter costs are down $65,000, or about 7%, due to new electric power suppliers solicited through a competitive bid process and more efficient operation as a result of energy audits."
Connecticut Water Service, Inc. is New England's largest locally based investor-owned water company. Through its wholly owned public water utility subsidiary, the Connecticut Water Company, the Company provides drinking water to approximately 90,000 customers, or 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 operation, 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: News media contact: Daniel J Meaney, APR, Director of Corporate Communications Connecticut Water Service, Inc. 93 West Main Street, Clinton, CT 06413-1600 (860) 669 8630 Ext. 3016