Consolidated Water Co. Ltd. (CWCO, Financial) filed Quarterly Report for the period ended 2010-06-30.
Consolidated Water Co. Ltd. has a market cap of $162.8 million; its shares were traded at around $11.19 with a P/E ratio of 16.7 and P/S ratio of 2.8. The dividend yield of Consolidated Water Co. Ltd. stocks is 2.7%. Consolidated Water Co. Ltd. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated Consolidated Water Co. Ltd. the business predictability rank of 3.5-star.CWCO is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
General and administrative (“G&A”) expenses on a consolidated basis were $5,615,699 and $5,171,266 for the six months ended June 30, 2010 and 2009, respectively. This increase in G&A expenses reflects a growth in professional fees from approximately $416,000 in 2009 to approximately $903,000 in 2010 that is primarily attributable to the project development activities of our newly formed consolidated Mexico joint venture, NSC.
Bulk segment G&A expenses were $579,500 and $960,569 for the six months ended June 30, 2010 and 2009, respectively. The decrease is primarily due to approximately $183,000 in penalties and interest assessed to our Belize operations during the first quarter of 2009 relating to delinquent business taxes and a decrease in bank charges of approximately $122,000 for our Bahamas operations. The Belize penalties and interest arose because we were erroneously informed in the past that our Belize subsidiary was not subject to these taxes. The bank charges incurred in 2009 resulted from the conversion of Bahamas dollars into U.S. dollars and the transfer of such dollars from the Bahamas to Grand Cayman.
Gross profit for our services segment was $273,253 and $2,875,857 for the six months ended June 30, 2010 and 2009, respectively. The lower gross profit for 2010 stems from the decreased plant construction revenues and from liquidated damages of $260,000 assessed by the Water Authority Cayman during the three months ended June 30, 2010 as a result of our inability (due to various factors including the failure of a key plant component purchased from a third party) to complete the refurbishment and commissioning of the Red Gate plant by its contract deadline, and construction cost overruns on this plant. We were required to reduce the cumulative gross profit on the Red Gate plant by approximately $403,000 during the three months ended June 30, 2010, as these liquidated damages and cost overruns represented a significant variance from the construction cost estimates we utilized under the percentage-of-completion method to record our revenues and gross profit on the Red Gate plant construction for previous quarters.
Accounts receivable increased from approximately $10.0 million as of December 31, 2009 to approximately $11.4 million as of June 30, 2010, primarily due to an increase of approximately $1.5 million in accounts receivable due from the Water and Sewerage Corporation of The Bahamas (the “WSC”). The WSC made payments of approximately $2.7 million on these receivables in July 2010.
After conducting hearings on October 12 and 16, 2009, on October 28, 2009, the Court ordered the BVI government to pay OC-BVI at the rate of $13.91 per thousand imperial gallons for water produced by OC-BVI from December 20, 2007 to present, which amounted to a total recovery for OC-BVI of $10.24 million as of September 17, 2009. The BVI government made a payment of $2.0 million to OC-BVI under the Court order during the fourth quarter of 2009 and made a second payment of $2 million under the Court order during July 2010.
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Consolidated Water Co. Ltd. has a market cap of $162.8 million; its shares were traded at around $11.19 with a P/E ratio of 16.7 and P/S ratio of 2.8. The dividend yield of Consolidated Water Co. Ltd. stocks is 2.7%. Consolidated Water Co. Ltd. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated Consolidated Water Co. Ltd. the business predictability rank of 3.5-star.CWCO is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
General and administrative (“G&A”) expenses increased to $3,150,633 on a consolidated basis for the three months ended June 30, 2010, as compared to $2,670,059 for the three months ended June 30, 2009. This increase in G&A expenses reflects a growth in professional fees from approximately $220,000 in 2009 to approximately $699,000 in 2010 that is primarily attributable to the project development activities of our newly formed consolidated Mexico joint venture, N.S.C. Agua, S.A. de C.V. (“NSC”).General and administrative (“G&A”) expenses on a consolidated basis were $5,615,699 and $5,171,266 for the six months ended June 30, 2010 and 2009, respectively. This increase in G&A expenses reflects a growth in professional fees from approximately $416,000 in 2009 to approximately $903,000 in 2010 that is primarily attributable to the project development activities of our newly formed consolidated Mexico joint venture, NSC.
Bulk segment G&A expenses were $579,500 and $960,569 for the six months ended June 30, 2010 and 2009, respectively. The decrease is primarily due to approximately $183,000 in penalties and interest assessed to our Belize operations during the first quarter of 2009 relating to delinquent business taxes and a decrease in bank charges of approximately $122,000 for our Bahamas operations. The Belize penalties and interest arose because we were erroneously informed in the past that our Belize subsidiary was not subject to these taxes. The bank charges incurred in 2009 resulted from the conversion of Bahamas dollars into U.S. dollars and the transfer of such dollars from the Bahamas to Grand Cayman.
Gross profit for our services segment was $273,253 and $2,875,857 for the six months ended June 30, 2010 and 2009, respectively. The lower gross profit for 2010 stems from the decreased plant construction revenues and from liquidated damages of $260,000 assessed by the Water Authority Cayman during the three months ended June 30, 2010 as a result of our inability (due to various factors including the failure of a key plant component purchased from a third party) to complete the refurbishment and commissioning of the Red Gate plant by its contract deadline, and construction cost overruns on this plant. We were required to reduce the cumulative gross profit on the Red Gate plant by approximately $403,000 during the three months ended June 30, 2010, as these liquidated damages and cost overruns represented a significant variance from the construction cost estimates we utilized under the percentage-of-completion method to record our revenues and gross profit on the Red Gate plant construction for previous quarters.
Accounts receivable increased from approximately $10.0 million as of December 31, 2009 to approximately $11.4 million as of June 30, 2010, primarily due to an increase of approximately $1.5 million in accounts receivable due from the Water and Sewerage Corporation of The Bahamas (the “WSC”). The WSC made payments of approximately $2.7 million on these receivables in July 2010.
After conducting hearings on October 12 and 16, 2009, on October 28, 2009, the Court ordered the BVI government to pay OC-BVI at the rate of $13.91 per thousand imperial gallons for water produced by OC-BVI from December 20, 2007 to present, which amounted to a total recovery for OC-BVI of $10.24 million as of September 17, 2009. The BVI government made a payment of $2.0 million to OC-BVI under the Court order during the fourth quarter of 2009 and made a second payment of $2 million under the Court order during July 2010.
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