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.