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In 2017, Connecticut Water’s total revenues were $113.8 million, up 8.1% year over year, primarily on higher contribution from its Water Operation segment.
The year-over-year increase in revenues was due to benefits derived from the acquisition of the Heritage Village Water Company in February 2017 and the Avon Water Company in July 2017. In addition, the recovery of costs for completed infrastructure replacement projects also boosted revenues.
Highlights of the Release
In 2017, the company’s total operating expenses were $73.7 million, up nearly 4.5% from the prior-year quarter.
Connecticut Water’s utility operating income in 2017 improved 18.2% year over year to $34.3 million.
The company continued with inorganic growth strategy in 2017. At the end of 2017, it was serving 10% more customers than the beginning of the year.
During the fourth quarter, the company received approval for new rates from the Maine Public Utilities Commission (MPUC), which will increase the annual revenues of the company by $1.56 million.
Financial Update
As of Dec 31, 2017, Connecticut Water’s current assets were $35.7 million compared with $29.4 million as of Dec 31, 2016.
Net utility plant was worth $697.7 million as of Dec 31, 2017, compared with $601.4 million as of Dec 31, 2016.
Long-term debt as of Dec 31, 2017 was $253.4 million, compared with $197.1 million as of Dec 31, 2016.
Merger Talks
The company entered in a definite agreement with SJW Group (SJW - Free Report) to merge with the latter.
Per the agreement, each shareholder of Connecticut Water Service will receive 1.1375 shares of SJW Group. The total consideration will come to nearly $750 million, taking into account the closing price of SJW Group shares on Mar 14, 2018. SJW Group will own 60% of the combined company and Connecticut Water Service will own the rest of it.
Earnings from its peers in the fourth quarter were on the positive side. American States Water Company (AWR - Free Report) and American Water Works Company (AWK - Free Report) both surpassed the Zacks Consensus Estimate. The long-term earnings growth of these companies is presently pegged at 5% and 7.47%, respectively.
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Connecticut Water (CTWS) '17 Earnings Up, to Merge With SJW
Connecticut Water Service Inc. reported 2017 earnings of $2.13 per share, surpassing the year-ago earnings of $2.08 by 2.4%.
Connecticut Water Service, Inc. Price, Consensus and EPS Surprise
Connecticut Water Service, Inc. Price, Consensus and EPS Surprise | Connecticut Water Service, Inc. Quote
Total Revenues
In 2017, Connecticut Water’s total revenues were $113.8 million, up 8.1% year over year, primarily on higher contribution from its Water Operation segment.
The year-over-year increase in revenues was due to benefits derived from the acquisition of the Heritage Village Water Company in February 2017 and the Avon Water Company in July 2017. In addition, the recovery of costs for completed infrastructure replacement projects also boosted revenues.
Highlights of the Release
In 2017, the company’s total operating expenses were $73.7 million, up nearly 4.5% from the prior-year quarter.
Connecticut Water’s utility operating income in 2017 improved 18.2% year over year to $34.3 million.
The company continued with inorganic growth strategy in 2017. At the end of 2017, it was serving 10% more customers than the beginning of the year.
During the fourth quarter, the company received approval for new rates from the Maine Public Utilities Commission (MPUC), which will increase the annual revenues of the company by $1.56 million.
Financial Update
As of Dec 31, 2017, Connecticut Water’s current assets were $35.7 million compared with $29.4 million as of Dec 31, 2016.
Net utility plant was worth $697.7 million as of Dec 31, 2017, compared with $601.4 million as of Dec 31, 2016.
Long-term debt as of Dec 31, 2017 was $253.4 million, compared with $197.1 million as of Dec 31, 2016.
Merger Talks
The company entered in a definite agreement with SJW Group (SJW - Free Report) to merge with the latter.
Per the agreement, each shareholder of Connecticut Water Service will receive 1.1375 shares of SJW Group. The total consideration will come to nearly $750 million, taking into account the closing price of SJW Group shares on Mar 14, 2018. SJW Group will own 60% of the combined company and Connecticut Water Service will own the rest of it.
Zacks Rank
Connecticut Water carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of the Peers
Earnings from its peers in the fourth quarter were on the positive side. American States Water Company (AWR - Free Report) and American Water Works Company (AWK - Free Report) both surpassed the Zacks Consensus Estimate. The long-term earnings growth of these companies is presently pegged at 5% and 7.47%, respectively.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>