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Consolidated Water Co. Ltd., which develops and operates seawater conversion plants and water distribution systems in areas where natural supplies of drinking (i.e., potable) water are scarce, has announced higher revenue, net income and earnings per share for the second quarter of 2001.
For the three months ended June 30, 2001, the Company's revenue increased 24% to approximately $3.1 million, compared with approximately $2.5 million in the prior-year quarter. Net income rose 31% to $875,332, or $0.22 per diluted share, in the most recent quarter, versus $667,002, or $0.19 per diluted share, in the quarter ended June 30, 2000. Earnings per share were calculated on 3,993,668 diluted shares outstanding in the quarter ended June 30, 2001, which represented a 15% increase when compared with 3,470,423 diluted shares outstanding in the second quarter of 2000. The increase in shares outstanding primarily resulted from new shares issued in conjunction with the Company's public stock offering in May 2000.
For the six-month period ended June 30, 2001, revenue approximated $6.1 million and the Company reported net income of $1,706,222, or $0.43 per diluted share. These figures compared with revenue of approximately $5.2 million and net income of $1,521,885, or $0.46 per diluted share, in the corresponding period of the previous year. The weighted average number of fully-diluted shares outstanding increased 21% to 3,978,420 in the first half of 2001, compared with 3,289,857 in the prior-year period, primarily reflecting new shares issued in conjunction with the Company's public stock offering in May 2000. The Company generated cash flow from operations (EBITDA) of $2.4 million in the first half of 2001, compared with EBITDA of $2.1 million in the six months ended June 30, 2000.
"We are extremely pleased to report record revenues and a 31% increase in earnings during the second quarter of 2001," commented Jeffrey Parker. "Net profit margins improved to 28.2% of revenue in the most recent quarter, when compared with 26.7% in the prior-year period, reflecting the excellent profitability of our Belize operations and a 2.7% rate increase for our Cayman water customers earlier in the year. These results are even more impressive because they were achieved during a period when Caribbean tourism has been negatively impacted by an economic slowdown in the United States. Our second quarter results, which were assisted by sales to government, represented an improvement over the Company's first quarter performance, when demand for water from customers on Grand Cayman declined due to heavy rainfall in late December and early January. Plant capacity at the government-owned Water Authority - Cayman is currently fully utilized during periods of peak demand and we expect this position to continue into next year."
"We began delivering water to the Bimini Sands marina/condominium development in the Bimini Islands (Bahamas) in early July, shortly after the end of our second quarter," continued Parker. "While initial water deliveries in this new market will be modest, demand should increase as the development proceeds in phases. We are also continuing our discussions with government officials regarding the potential for Consolidated to deliver fresh water to the residents of North and South Bimini."
"Consolidated Water is currently producing desalinated seawater in three countries, whereas during the first half of 2000 all of our sales were derived from customers in the Cayman Islands. We continue to believe that fresh water will become an increasingly valuable commodity throughout the world in coming years and that our Company is well-positioned to capitalize upon the growing demand for operational expertise in reverse osmosis technology. We have identified a number of business opportunities in new markets and are optimistic that our geographical reach will expand further during the next 12-18 months," concluded Parker.