Consolidated Water reports record earnings

Tuesday, April 20, 2004

Consolidated Water Co Ltd, which develops and operates seawater conversion plants and water distribution systems in areas where natural supplies of drinking water are scarce, reported record revenue and earnings for the quarter and year ended 31 December 2003.

Total revenue in 2003 increased 57 percent to a record $19 million, compared with $12.2 million in the previous year. Net income rose 64 percent to a record $4,177,081, or $0.83 per diluted share, versus $2,576,310, or $0.63 per diluted share, in the previous year.

The weighted average number of fully-diluted shares outstanding increased 23 percent to 5,037,530 in 2003, compared with 4,087,532 in 2002, reflecting the issuance of shares in a public stock offering in July 2003 and shares issued in conjunction with acquisitions completed during the past 12 months.

Revenue for the three months ended 31 December 2003 increased 91 percent to a record $5.3 million, compared with $2.8 million in the fourth quarter of the previous year.

Net income increased 338 percent to $1,024,744, or $0.18 per diluted share, versus $233,782, or $0.06 per diluted share, in the prior-year period.

The weighted average number of fully-diluted shares outstanding increased 42 percent to 5,817,007 in the fourth quarter of 2003, compared with 4,097,139 in the corresponding period of the previous year.

Chairman of Consolidated Water Co Ltd, Jeffrey Parker said: “We are pleased to report record operating results for 2003, a year in which we completed acquisitions that effectively doubled the size of our Company and significantly expanded the geographical scope of our operations.

“Consolidated Water now operates 12 reverse osmosis seawater conversion plants in five countries in the Caribbean region, the fastest growing desalination market in the world.”

Company President and Chief Executive Officer, Rick McTaggart, said “Despite the lingering negative impact of 9/11 upon international tourism, our retail water sales increased a modest two percent from prior-year levels during 2003.

“Gross profit margins in our retail water operations improved to 54.5 percent of sales, from 45.5 percent in 2002, largely due to actions taken when we assumed responsibility for operations at the Governor’s Harbour plant on Grand Cayman as a result of one of our acquisitions.

“We expect these improved operating efficiencies to continue and improve in the future as we more effectively utilise the additional capacity available to our Cayman retail operations.”

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