Consolidated Water Co. Ltd. (CWCO) has reported a 28.06 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $2.63 million, or $0.18 a share in the quarter, compared with $2.05 million, or $0.14 a share for the same period last year. Revenue during the quarter grew 11.70 percent to $15.68 million from $14.03 million in the previous year period. Gross margin for the quarter contracted 42 basis points over the previous year period to 43.59 percent. Total expenses were 87.01 percent of quarterly revenues, down from 87.77 percent for the same period last year. This has led to an improvement of 76 basis points in operating margin to 12.99 percent.
Operating income for the quarter was $2.04 million, compared with $1.72 million in the previous year period.
"Gross profits generated by all four of our reporting segments increased this past quarter compared with the first quarter of 2016 on higher revenues, and in the case of our services segment, lower costs. We are particularly pleased to report that the trend of increased volume sales in our retail segment that started last year is continuing into 2017 and that our retail sales benefited from an 8% volume sales increase this last quarter compared with the first quarter of 2016, which is consistent with the 12% increase in sales volumes we experienced for the full year of 2016," commented Rick McTaggart, the Company's chief executive officer.
Working capital increases
Consolidated Water Co. Ltd. has recorded an increase in the working capital over the last year. It stood at $56.83 million as at Mar. 31, 2017, up 19.07 percent or $9.10 million from $47.73 million on Mar. 31, 2016. Current ratio was at 7.35 as on Mar. 31, 2017, up from 4.91 on Mar. 31, 2016. Cash conversion cycle (CCC) has increased to 67 days for the quarter from 59 days for the last year period. Days sales outstanding went up to 102 days for the quarter compared with 88 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went up to 52 days for the quarter from 51 for the same period last year.
Debt comes down significantly
Consolidated Water Co. Ltd. has recorded a decline in total debt over the last one year. It stood at $0.88 million as on Mar. 31, 2017, down 86.41 percent or $5.61 million from $6.49 million on Mar. 31, 2016. Consolidated Water CompanyLtd has recorded a decline in short-term debt over the last one year. It stood at $0.88 million as on Mar. 31, 2017, down 86.41 percent or $5.61 million from $6.49 million on Mar. 31, 2016. Total debt was 0.53 percent of total assets as on Mar. 31, 2017, compared with 3.79 percent on Mar. 31, 2016. Debt to equity ratio was at 0.01 as on Mar. 31, 2017, down from 0.04 as on Mar. 31, 2016. Interest coverage ratio improved to 916.05 for the quarter from 26.79 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
