Water utility Connecticut Water Service, Inc. (CTWS - Free Report) reported second quarter earnings per share of 36 cents, in line with the Zacks Consensus Estimate.
Earnings were 9.1% higher than the year-ago figure of 33 cents. The improvement in earnings was attributable to consistent performance from its Services and Rentals segments.
Second quarter total revenue of $24.3 million was down 0.5% year over year from $24.5 million in the year-ago quarter, but surpassed the Zacks Consensus Estimate of $23 million by 5.6%.
Highlights of the Release
Total operating expenses in the reported quarter increased 5.8% to $17.28 million, primarily due to the inclusion of operating expenses of Biddeford & Saco Water Company (BSWC).
Operating income in the reported quarter increased 4.6% to $5.4 million.
Interest expenses decreased 31% in the second quarter to $1.5 million from $2.1 million in the year-ago quarter primarily due to refinancing of existing debts on favorable terms and lower interest expense.
In addition, the positive regulatory outcome in its service territories in the reported quarter is expected to benefit both the company and its customers. The customers will have the benefit of a two-year rate reduction and the company would benefit from the timely implementation of the revenue adjustment mechanism (RAM).
The RAM will enable Connecticut Water Service to recover the difference between the actual revenues billed in a calendar year and the revenues that the Public Utilities Regulatory Authority (PURA) approved at the time of the last general rate proceeding through an adjustment of customer bills. Any excess will be returned to customers through a credit on bills.
Other Company Releases
Aqua America, Inc. (WTR - Free Report) announced second-quarter 2013 operating earnings of 38 cents per share, 5.5% above the Zacks Consensus Estimate of 36 cents.
California Water Service Group (CWT - Free Report) announced second-quarter 2013 operating earnings of 28 cents per share, in line with the Zacks Consensus Estimate.
Middlesex Water Company (MSEX - Free Report) reported second-quarter 2013 earnings per share of 28 cents, beating the Zacks Consensus Estimate by a penny.
Connecticut Water Service Inc. currently has a Zacks Rank #3 (Hold).