Connecticut Water Declares 2Q Income of $4.7M

Connecticut Water Service, Inc. on Thursday announced net income of $4.7 million, which translates into earnings per basic common share of 39 cents, for the second quarter of 2018.

Total revenues were $31.5 million, according to the earnings report.

Total revenues include income generated by the company’s three business segments — Water Operations, Service and Rentals, and Real Estate.

In the second quarter of 2017, the Company had net income of $8.4 million or 75 cents per basic common share, on total revenues of $29.5 million.

The $3.7 million decrease in net income relative to 2017 was driven primarily by costs related to the merger with SJW Group in 2018 and a tax benefit in the second quarter of 2017 that was related to the release of previously reserved tax liabilities for the Connecticut Water Company, according to the earnings report.

Operating revenues increased by $2 million from the same quarter of the previous year, driven primarily by the 2017 acquisition of Avon Water Company in Connecticut, increased Water Infrastructure and Conservation Adjustment and Water Infrastructure Charge surcharges, and a general rate increase in Maine Water’s Biddeford-Saco Division that became effective in December 2017.

“Our second quarter results reflect our continued focus on operational excellence as a pure-play water company and our employees’ record of superior customer service,” stated David C. Benoit, president and CEO of CTWS. Mr. Benoit added “We are pleased that our recently announced amended agreement with SJW Group enables us to join another leading water company who shares our commitment to a strong, local team of employees and world-class service to customers and communities, while also providing CTWS shareholders with significant, certain premium value for their shares.”

The company reported net income of $3.5 million, or EPS of 29 cents, on total revenues of $58 million in the first six months of 2018. In the same period of 2017, the Company had net income of $12.5 million, or $1.11 EPS, on total revenues of $53.7 million.

The $9 million decrease in net income was driven primarily by costs in 2018 related to the merger with SJW Group as well as tax benefits in the first and second quarters of 2017 that were related to the release of previously reserved tax liabilities for the Maine Water Company and Connecticut Water.

Photo Credit: Chris Dehnel