Connecticut Water Service, Inc. (CTWS) has reported a 29.22 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $4.07 million, or $0.36 a share in the quarter, compared with $3.15 million, or $0.28 a share for the same period last year.
Revenue during the quarter grew 4.86 percent to $24.21 million from $23.09 million in the previous year period. Total expenses were 78.17 percent of quarterly revenues, down from 81.90 percent for the same period last year. This has led to an improvement of 373 basis points in operating margin to 21.83 percent.
Operating income for the quarter was $5.28 million, compared with $4.18 million in the previous year period.
Eric W. Thornburg, President and CEO of Connecticut Water, says infrastructure investment and prudent acquisitions continue to be key components of the Company’s long-term growth strategy. Mr. Thornburg stated, "Construction weather has returned to New England and our capital expenditures for 2017 are budgeted at $55.4 million with approximately 40%, or $22.2 million, being allocated for infrastructure replacement through the Water Infrastructure and Conservation Adjustment (WICA) in Connecticut and the Water Infrastructure Charge (WISC) in Maine."
Working capital remains negative
Working capital of Connecticut Water Service was negative $22.73 million on Mar. 31, 2017 compared with negative $16.97 million on Mar. 31, 2016. Current ratio was at 0.58 as on Mar. 31, 2017, down from 0.63 on Mar. 31, 2016.
Days sales outstanding went down to 20 days for the quarter compared with 41 days for the same period last year.
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