Connecticut Water Service, Inc. Reports Nine Month Earnings

CLINTON, CONNECTICUT, Nov. 08, 2016 (GLOBE NEWSWIRE) -- Connecticut Water Service, Inc. (NASDAQ GS: CTWS) announced Net Income of $22.6 million, or earnings per basic average share (EPS) of $2.05, on total revenues of $81.9 million in the first nine months of 2016. Total revenues include revenues generated by the Company's three business segments: Water Operations, Service and Rentals, and Real Estate. In the same period of 2015, the Company had Net Income of $20.5 million, or $1.87 EPS, on total revenues of $80.6 million. 

Net Income in the Company's core business, the Water Operations segment, was $21.6 million, on revenues of $78.0 million. In the same period of 2015, net income from the segment totaled $19.1 million, on revenues of $76.2 million. The increase in revenues was related to recovery of costs for completed infrastructure replacement projects through the Water Infrastructure and Conservation Adjustment (WICA) in Connecticut and the Water Infrastructure Charge (WISC) in Maine, as well as a general rate increase in Maine's Biddeford Saco division.

Total Operating Expenses decreased $477,000 in the first nine months of 2016 when compared to 2015. The primary drivers were decreased Operations & Maintenance (O&M) expenses related to pension and other compensation benefits, post-retirement medical and use of outside services.

Third Quarter Operating ResultsIn the third quarter of 2016, Net Income was $9.5 million, or EPS of $0.86, which was an increase of 8.9% from the $8.8 million, or EPS of $0.80, reported in the same period of 2015. The increase in earnings was largely attributable to the same factors that drove the nine month results.

Total operating expenses decreased $292,000, or 1.5%, to $18.7 million in the third quarter of 2016 due largely to the same O&M expense reductions cited for the nine month results.

Eric W. Thornburg, President and CEO of CTWS, noted that much of the Company's service area is currently classified as being in 'Severe Drought' by the U.S. Drought Monitor. Mr. Thornburg stated, "We are fortunate to have innovative regulatory tools available to us in both states. In Connecticut, where we are already utilizing the Water Revenue Adjustment (WRA), we are able to aggressively promote water conservation during times of drought without materially impacting our revenues. This allows us to focus on preserving water resources and serving our customers rather than on water sales."  A WRA also became available in Maine in 2015, but has not yet been implemented.        

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