Connecticut Water Service – Able to provide safe and reliable water service to customers – CTWS

Connecticut Water Service, Inc. (NASDAQ : CTWS) announced net income of $11.3 million and earnings per basic average share (EPS) of $1.31 for 2011, compared to net income of $9.8 million and EPS of $1.14 for 2010. In 2011, total revenue grew to $75.6 million from $72.8 million in 2010, an increase of $2.8 million, or 3.8%. Total revenue includes all revenues generated by the Company’s three business segments: Water Activities, Services and Rentals, and Real Estate.

In 2011, income in the Water Activities segment, the Company’s principal business, grew by approximately $1.4 million to $10.1 million from $8.7 million in 2010, an increase of 16.1%. The gain was largely attributable to increased revenue through a rate increase of 13% that became effective in July 2010, and reduced Operations and Maintenance expenses. The Services and Rental segment contributed 12 cents per share, which is a slight increase over 2010 performance.

2011 Operating Results

Water production was down 4.9% in the year, in large part due to the difference in weather from 2010 and associated changes in customers’ usage. Weather records going back to 1895 show that in 2011 Connecticut had the wettest year on record with 136% of normal precipitation.

Eric W. Thornburg, Chairman, President and Chief Executive Officer, of Connecticut Water said “Our team is pleased that we were able to deliver solid results for the year considering the challenges we overcame including the wettest year since 1895.” Mr. Thornburg added, “I am extremely proud of my colleagues here at Connecticut Water who weathered the extended power outages caused by Tropical Storm Irene and the October Nor’easter Alfred, which impacted more than 100 of our facilities, and were able to provide safe and reliable water service to virtually 100% of our customers.

With the Company’s continued cost containment efforts, Operations and Maintenance expense decreased $443,000. Depreciation expense increased in 2011 reflecting the continued investment in infrastructure throughout the regulated operations and information technology improvements. Income tax expense increased due to higher taxable income.

Connecticut Water Service, Inc. is the largest publicly traded water company based in New England. Through its wholly-owned public water utility subsidiaries, The Connecticut Water Company and The Maine Water Company, the Company provides drinking water to 106,000 customers, or about 350,000 people, throughout the states of Connecticut and Maine

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.