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Connecticut Water (CTWS) Incurs Loss in Q1, Revenues Up Y/Y

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Connecticut Water Service Inc. reported first-quarter 2018 loss of 10 cents per share against the year-ago earnings of 36 cents.

The $5.3 million year-over-year decline in net income in the reported quarter was due to a non-recurring tax benefit and costs in 2018 related to the merger of equals with SJW Group (SJW - Free Report) .

Total Revenues

In first-quarter 2018, Connecticut Water’s total revenues were $26.4 million, up 9.1% year over year.

The year-over-year increase in revenues was due to benefits derived from the acquisition of the Heritage Village Water Company in February 2017 and the Avon Water Company in July 2017. In addition, new water rates effective December 2017 in Maine Water’s Biddeford-Saco Division boosted the top line of the company.
 

Connecticut Water Service, Inc. Price, Consensus and EPS Surprise
 

Connecticut Water Service, Inc. Price, Consensus and EPS Surprise | Connecticut Water Service, Inc. Quote

Highlights of the Release

On May 4, 2018, an application was filed with PURA and the Maine Public Utilities Commission (MPUC) for the approval of the company’s merger of equals with SJW Group.

The company’s total operating expenses were $20.6 million, up nearly 20.5% from the prior-year quarter.

Connecticut Water’s utility operating income in the first quarter dropped 17.6% year over year to $45.5 million.

Financial Update

As of Mar 31, 2018, Connecticut Water’s current assets were $36.2 million compared with $31.1 million as of Mar 31, 2017.

Net utility plant was worth $699.6 million as of Mar 31, 2018 compared with $636.6 million as of Mar 31, 2017.

Long-term debt as of Mar 31, 2018 was $252.2 million compared with $205.6 million as of Mar 31, 2017.

Zacks Rank

Currently, Connecticut Water carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Water Utilities

Apart from American Water Works Co. (AWK - Free Report) , which beat the Zacks Consensus Estimate by 7.3%, other water utilities such as SJW Group and Aqua America Inc. reported in-line earnings.

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