Consolidated Water Co. Ltd. (CWCO) has reported 47.32 percent plunge in profit for the year ended Dec. 31, 2016. The company has earned $3.96 million, or $0.27 a share in the year, compared with $7.52 million, or $0.51 a share for the last year.
Revenue during the year went up marginally by 1.33 percent to $57.88 million from $57.12 million in the previous year. Gross margin for the year expanded 109 basis points over the previous year to 41.90 percent. Total expenses were 96.85 percent of annual revenues, up from 85.17 percent for the last year. That has resulted in a contraction of 1168 basis points in operating margin to 3.15 percent.
Operating income for the year was $1.82 million, compared with $8.47 million in the previous year.
"Our consolidated gross profit increased last year by approximately $1.0 million, boosted by improvements in our retail and services segments while the gross profit of our bulk segment was flat. Gross profit as a percentage of revenues for our retail and bulk segments improved year over year indicating the Company's continued focus on cost control. Our full year operating results were adversely impacted by non-cash impairment losses for our desalination plant in Bali, Indonesia, our long-standing investment in OC-BVI and the goodwill we recorded in connection with our recent acquisition of Aerex," stated Rick McTaggart, chief executive officer.
Debt comes down significantly
Consolidated Water Co. Ltd. has recorded a decline in total debt over the last one year. It stood at $0.49 million as on Dec. 31, 2016, down 92.96 percent or $6.47 million from $6.96 million on Dec. 31, 2015. Total debt was 0.30 percent of total assets as on Dec. 31, 2016, compared with 4.31 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 17.52 for the year from 31.47 for the same period last year.
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