Consolidated Water Company Ltd (CWCO) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.87 million, or $ 0.13 a share in the quarter, against a net profit of $1.78 million, or $0.12 a share in the last year period.
Revenue during the quarter went down marginally by 1.51 percent to $14.39 million from $14.61 million in the previous year period. Gross margin for the quarter expanded 252 basis points over the previous year period to 41.15 percent. Operating margin for the quarter stood at negative 16.40 percent as compared to a positive 14.75 percent for the previous year period.
Operating loss for the quarter was $2.36 million, compared with an operating income of $2.15 million in the previous year period.
“Our third quarter 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 chief executive officer Rick McTaggart.
Working capital increases marginally
Consolidated Water Company Ltd has recorded an increase in the working capital over the last year. It stood at $52.15 million as at Sep. 30, 2016, up 3.96 percent or $1.98 million from $50.16 million on Sep. 30, 2015. Current ratio was at 8.48 as on Sep. 30, 2016, up from 4.68 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 48 days for the quarter from 42 days for the last year period. Days sales outstanding went up to 89 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 11 days for the quarter compared with 18 days for the previous year period. At the same time, days payable outstanding went up to 52 days for the quarter from 47 for the same period last year.
Debt comes down significantly
Consolidated Water Company Ltd has recorded a decline in total debt over the last one year. It stood at $0.49 million as on Sep. 30, 2016, down 93.47 percent or $7.01 million from $7.50 million on Sep. 30, 2015. Consolidated Water CompanyLtd has recorded a decline in short-term debt over the last one year. It stood at $0.49 million as on Sep. 30, 2016, down 93.47 percent or $7.01 million from $7.50 million on Sep. 30, 2015. Total debt was 0.30 percent of total assets as on Sep. 30, 2016, compared with 4.65 percent on Sep. 30, 2015.
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