makesumgravy
15 years ago
Cascal N.V. Subsidiary, Bournemouth & West Hampshire Water, Receives Important Recognitions from UK Government and Industry Regu
Date : 04/16/2009 @ 8:30AM
Source : PR Newswire
Stock : Cascal Nv (HOO)
Quote : 3.57 0.06 (1.71%) @ 8:00PM
Cascal N.V. Subsidiary, Bournemouth & West Hampshire Water, Receives Important Recognitions from UK Government and Industry Regu
LONDON, April 16 /PRNewswire-FirstCall/ -- Cascal N.V. (NYSE:HOO) (the "Company"), a leading provider of water and wastewater services in seven countries, today announced that its subsidiary, Bournemouth & West Hampshire Water (BWHW), was awarded the Charter Mark for excellence in public services for the tenth successive year, and received a certificate of recognition for successfully keeping the Investor in People standard for more than a decade. In addition, BWHW was named the sixth most efficient water company out of 21 by OFWAT, the economic regulator for the water industry in England and Wales.
Stephane Richer, Cascal's Chief Executive Officer noted, "These important recognitions are a testament to Cascal's dedication to providing superior water service to its customers around the world. As our largest operation, BWHW is looked upon as a leader within the Cascal organization and sets the tone for our other water concessions. Ultimately, these awards acknowledge Cascal and the individuals within the organization that strive to ensure the delivery of high-quality services to our customers."
BWHW provides water to approximately 420,000 people through a system of eight major treatment works and a network of 1,700 miles of pipe.
About Cascal N.V.
Cascal provides water and wastewater services to its customers in seven countries: the United Kingdom, China, South Africa, Chile, Indonesia, Panama and The Philippines. Cascal's customers are predominantly homes and businesses representing a total population of approximately 4.3 million.
makesumgravy
15 years ago
Cascal N.V. Announces Publication of Bournemouth & West Hampshire Water OFWAT Business Plan
Date : 04/07/2009 @ 8:30AM
Source : PR Newswire
Stock : Cascal Nv (HOO)
Quote : 3.57 0.06 (1.71%) @ 8:00PM
Cascal N.V. Announces Publication of Bournemouth & West Hampshire Water OFWAT Business Plan
LONDON, April 7 /PRNewswire-FirstCall/ -- Cascal N.V. (NYSE:HOO) (the "Company"), a leading provider of water and wastewater services in seven countries, today announced the publication of the Final Business Plan for its largest subsidiary, Bournemouth & West Hampshire Water (BWHW), as required under the UK water industry five-year rate review that becomes effective in April 2010. The business plan was submitted to OFWAT, the economic regulator for the water industry in England and Wales, and a summary is available for review at http://www.bwhwater.co.uk/.
BWHW's Final Business Plan includes a total capital investment program of 53 million pounds Sterling over the five years and rate adjustments above inflation of 9.9% in 2010, 5.9% in 2011, 2.3% in 2012, 2.2% in 2013 and 2.1% in 2014.
The Final Business Plan is a further milestone in OFWAT's process used to determine future water rates and builds upon the 25-year Strategic Direction Statement, published in December 2007, and the Draft Business Plan published in August 2008. OFWAT will review the Final Business Plan and publish its interim rate determination in July 2009 and, following consultation with stakeholders, will set out its final rate determination in November 2009.
BWHW provides water to approximately 180,000 households and 15,000 businesses through a system of eight major treatment works and a network of 1,700 miles of pipe.
About Cascal N.V.
Cascal provides water and wastewater services to its customers in seven countries: the United Kingdom, China, South Africa, Chile, Indonesia, Panama and The Philippines. Cascal's customers are predominantly homes and businesses representing a total population of approximately 4.3 million.
surf1944
16 years ago
Cascal N.V. Announces First Quarter 2009 Results
Monday August 11, 5:13 pm ET
- Revenue from continuing operations up 12% to $43.0 million
- EBITDA from continuing operations up 4.6% to $16.7 million
- Net profit from continuing operations up 223% to $5.5 million
LONDON, August 11 /PRNewswire/ -- Cascal N.V. (NYSE: HOO - News; the "Company"), a leading provider of water and wastewater services in seven countries, today announced unaudited financial results for first quarter ended June 30, 2008. Cascal N.V. results are presented in U.S. dollars.
Results for First Quarter to June 30, 2008
For the three months ended June 30, 2008, revenue from continuing operations increased by 12% to $43.0 million, compared to $38.3 million for the same period last year. Approximately $1.4 million was contributed by new projects with the remaining $3.3 million achieved by the Company's historical portfolio through a combination of rate increases, addition of new customers and higher volumes supplied.
-- Revenue in the UK increased by $0.8 million or 3.2%, compared to the same period last year, primarily as a result of the Company's scheduled rate increase of 3.68%.
-- Revenue in South Africa increased by $0.7 million or 16%, compared to the same period last year, as a result of the inclusion of revenue from Siza Water for the full three months compared to two months in the same period last year, together with a 7.5% rate increase implemented by the Nelspruit business in July 2007 and continued growth in the customer base. These results were offset in part by $0.4 million due to exchange rate movements.
-- Revenue in Indonesia increased by $0.7 million or 27%, compared to the same period last year, primarily as a result of the 20% rate increase implemented in December 2007, together with increased water demand caused by continued population growth.
-- Revenue in China increased by $1.1 million or 45%, compared to the same period last year, principally as a result of the inclusion of two months of revenue from the Company's acquisition of the Yancheng joint venture, together with continuing growth in demand, as well as $0.2 million due to exchange rate movements.
-- Revenue in Panama increased by $0.8 million or 38%, compared to the same period last year, as a result of the recognition of $0.5 million of revenue following the client's recent approval of a rate increase effective from May 2007, along with the impact of a further rate increase effective from April 2008.
EBITDA from continuing operations for the quarter ended June 30, 2008 increased by 4.6% to $16.7 million, compared to $16.0 million for the same period last year. Of the $0.7 million increase, approximately $0.5 million was contributed by new projects and $0.4 million coming from organic growth of the historical portfolio, offset by $0.1 million of additional corporate overhead. The increase in EBITDA was mainly the result of positive advancements in South Africa, China, Indonesia and Panama, partially offset by a reduction in the U.K. due notably to higher electricity prices. Please read "Use of non-GAAP Financial Measures" for a description of EBITDA.
Overall, net financial income and expense from continuing operations decreased by $3.9 million for the quarter ended June 30, 2008, compared to the same period last year. This result was comprised of a $1.6 million decrease in interest expense due mainly to a repayment of borrowings in February 2008 out of the proceeds of the initial public offering, together with a $2.3 million decrease in foreign exchange losses, largely related to those borrowings.
For the quarter ended June 30, 2008, net profit from continuing operations was $5.5 million, or $0.18 per share, compared to net profit of $1.7 million, or $0.08 per share for the same period last year.
The effective tax rate incurred by continuing operations was 34.7% compared to 50.4% in the same period last year. The parent company incurred taxable losses of approximately $0.7 million in the three months ended June 30, 2008 that it was not able to utilize due to insufficient taxable income in The Netherlands. The corresponding amount was higher at $4.5 million for the same period last year due to higher interest costs and foreign exchange losses. The effective tax rate for the same period last year was reduced by the recognition of a deferred tax credit of $0.6 million arising from a change to the standard rate of income tax in the United Kingdom from 30% to 28%.
As referenced above, the revenue and EBITDA for the quarter ended June 30, 2008 included approximately $0.5 million relating to earlier periods as a result of the recognition of a rate increase with effect from May 2007 that was recently approved by the client in Panama. All the invoices corresponding to the rate increases have been approved and accepted by the client but have not been paid. The client is currently sourcing the additional funds in accordance with the relevant policies and procedures of the state of Panama.
Commenting on the Company's first quarter results, Stephane Richer, Cascal Chief Executive Officer, stated, "I am very pleased with our results for the quarter. Our strategy has been to develop a blended portfolio, whereby we balance our revenue between more stable, developed economies and rapidly growing markets that provide Cascal with tremendous growth opportunities. During the quarter, we achieved solid revenue growth of 12%, a majority of which was the result of organic growth, and maintained strong EBITDA margins within our target range around 40 percent."
As of June 30, 2008, the Company had cash and cash equivalents of $71.3 million.
Recent Business Highlights
-- Today, Cascal's UK subsidiary submitted its Draft Business Plan to the industry regulator OFWAT for the period 2010-2015. The plan includes capital expenditures of approximately $120 million and average annual rate increases of 3% above inflation.
-- On August 7, 2008, Cascal announced that a cash dividend of $0.18 per share, recommended by Cascal's board of directors, was approved at its Annual General Meeting of shareholders held in Amsterdam, The Netherlands. The dividend is payable to shareholders of record on September 24, 2008, and will be payable on September 30, 2008. The shares become ex-dividend on September 22, 2008. Dutch withholding tax will be deducted from the dividend at a rate of 15%, which may be reduced in certain circumstances.
-- On July 23, 2008, Cascal announced that its China Water subsidiary completed the acquisition of a 51 percent stake in a new water company in Zhumadian City, China. Over the initial three years, Cascal expects this new subsidiary to achieve revenues rising from approximately $6 million to approximately $13 million and EBITDA margins improving from slightly below 50 percent to approximately 60 percent.
-- On June 27, 2008, Cascal announced that it had acquired 100 percent of the Servicomunal and Servilampa companies located immediately to the north of Santiago, Chile. These two new businesses operate perpetually held, regulated water and wastewater concessions and will be progressively combined with Cascal's existing operations to provide greater efficiencies. Over the initial three years, Cascal expects these acquisitions to achieve revenues rising from approximately $6 million to approximately $8 million and EBITDA margins improving from approximately 40 percent to approximately 50 percent.
Taxation
-- On July 21, 2008 the U.K. Government's 2008 Finance Bill received royal assent. This legislation includes changes that progressively phase out the availability of tax deductions for the cost of assets that qualify under the definition of industrial buildings. As a consequence of this new legislation, the Group will recognize a one-time deferred tax liability of approximately $5 million for the year ending March 31, 2009. Recording the deferred tax liability is a non-cash transaction and the cash impact of the new legislation will be spread over the remaining useful economic lives of the assets in question, typically between 40 and 60 years.
-- In the next few months, Cascal expects to introduce changes to the tax attributes of certain group companies to address the underlying inefficiencies within the current tax structure. These changes would enable the effective rate of tax for the group to realign with the statutory rates of 25.5% and 28% in The Netherlands and United Kingdom, respectively.
surf1944
16 years ago
Cascal N.V. Announces Fiscal 2008 Year End Results
Tuesday June 17, 4:42 pm ET
LONDON, June 17 /PRNewswire/ --
- Revenue increased to US$160.6 million, EBITDA increased to US$62.3
million, net profit increased to US$11.6 million
- Year-over-year revenue from continuing operations up 33% to US$157.8
million
- Year-over-year EBITDA from continuing operations up 17% to US$61.8
million
- Year-over-year net profit from continuing operations up 29% to US$9.9
million
Cascal N.V. (NYSE: HOO - News; the "Company"), a leading provider of water and wastewater services in seven countries, today announced unaudited financial results for fiscal year ended March 31, 2008 and the fourth quarter ended March 31, 2008. Cascal N.V. results are presented in U.S. dollars.
Results for Fiscal Year Ended March 31, 2008
For the year ended March 31, 2008, revenue increased 32% to US$160.6 million, EBITDA increased 17% to US$62.3 million and net profit increased 45% to US$11.6 million.
Revenue from continuing operations for the year increased 33% to US$157.8 million, compared to US$118.6 million for the same period last year. Of the US$39.2 million increase, approximately US$21.0 million was attributable to new projects. The remaining US$18.2 million improvement was achieved mainly as a result of rate increases, the addition of new customers, higher volumes supplied and the effect of exchange rate movements within the Company's historical portfolio.
-- Revenue in the UK increased by US$19.1 million or 25%, compared to the
same period last year, as a result of an US$8.5 million contribution
from the February 2007 acquisition of Pre-Heat, together with US$4.2
million additional revenue from the regulated business, US$1.7 million
additional revenue from the existing non-regulated business and
US$4.7 million due to exchange rate movements.
-- Revenue in South Africa increased by US$7.9 million or 57%, compared
to the same period last year, as a result of a US$5.9 million
contribution from the May 2007 acquisition of Siza Water, together
with US$2.3 million additional revenue from the Nelspruit operation
due to rate increases and continued growth in the customer base,
offset by US$0.3 million of exchange rate movements.
-- Revenue in China increased by US$7.1 million due to the inclusion of
only four and a half months of activity during the year ended March
2007, together with continuing growth in demand.
For the year ended March 31, 2008, EBITDA from continuing operations increased 17% to US$61.8 million, compared to US$52.7 million for the year ended March 31, 2007. Of the US$9.1 million increase, approximately US$5.0 million was attributable to new projects with the remaining US$4.1 million coming from a US$6.0 million higher contribution from the historical portfolio and exchange rate movements, offset by US$1.9 million of additional corporate overhead. Please read "Use of Non-GAAP Financial Measures" for a description of EBITDA and a reconciliation of net income to EBITDA.
Commenting on the Company's fiscal year-end results, Stephane Richer, Cascal Chief Executive Officer, stated, "According to plan, we have delivered strong organic growth and implemented a very successful acquisition strategy. Our approach is to position Cascal to continue to benefit from positive population growth trends, which in turn allows us to provide the necessary services to facilitate access to an increasingly scarce resource. Our business model is resilient to potential global economic slowdowns, and we remain optimistic about our ability to continue to drive additional organic and acquisition-based growth."
Overall, net financial income and expense from continuing operations decreased by US$0.9 million for the year ended March 31, 2008, compared to the same period last year. This result was comprised of US$3.6 million of higher interest expense due mainly to increased British Pound LIBOR rates and U.K. retail price inflation (which affects the Company's regulated business in the U.K.), offset by a US$4.5 million improvement in exchange rate results due mainly to the strengthening of the U.S. Dollar relative to the British Pound toward the end of fiscal year 2008.
The consolidated effective rate of tax incurred by continuing operations for the year ended March 31, 2008 was 46.4%, compared with 44.7% for the year ended March 31, 2007. The effective tax rates are significantly higher than the enacted tax rate in The Netherlands of 25.5% and are principally a consequence of tax losses incurred in The Netherlands that could not be utilized during the period due to insufficient taxable income arising in that country.
For the year ended March 31, 2008, net profit was US$11.6 million, or US$0.49 per share, compared to net profit of US$8.0 million, or US$0.37 per share for the same period in 2007. For the year, net profit from continuing operations was US$9.9 million, or US$0.42 per share, compared to US$7.7 million, or US$0.36 per share, during the same period last year.
As of March 31, 2008, the Company had cash and cash equivalents of US$54.4 million.
Results for Fourth Quarter to March 31, 2008
For the three months ended March 31, 2008, revenue from continuing operations increased 19% to US$39.8 million, compared to US$33.5 million for the same period last year. Of the US$6.3 million increase, approximately US$2.5 million was attributable to new projects. In common with the full year-over-year movement, the remaining US$3.8 million improvement was achieved through a combination of rate increases, the addition of new customers, higher volumes supplied and the effect of exchange rate movements within the Company's historical portfolio.
EBITDA from continuing operations for the quarter ended March 31, 2008 decreased 6% to US$14.2 million, compared to US$15.1 million for the quarter ended March 31, 2007. The comparability of quarterly results has been significantly affected by one-time events such as US$0.7 million of IPO completion bonuses, US$0.3 million provided against receivables in Indonesia and US$0.1 million adjustment to operating costs in Panama during the fourth quarter of fiscal year 2008, together with the effect of US$0.3 million release of provision for the cost of raw water in Nelspruit and US$0.2 million release of staff costs accruals during the fourth quarter of fiscal year 2007. Excluding the impact of these one-time events, the EBITDA for the quarter ended March 31, 2008 shows an increase of US$0.7 million compared to the corresponding quarter of the previous year.
Guidance for Fiscal Year ending March 31, 2009
For the fiscal year ending March 31, 2009, the Company maintains its previously stated annual guidance of revenue between US$179 million and US$184 million and of EBITDA between US$68 million and US$71 million.
Recent Business Highlights
http://biz.yahoo.com/prnews/080617/3683290en_public.html?.v=1
surf1944
16 years ago
Cascal N.V. Completes Acquisition of 49 Percent Stake in Yancheng China Water Company
Tuesday April 29, 8:30 am ET
- Acquisition expands Company's presence in China to More Than 1 Million
Residents and to 3.6 Million Residents Worldwide
LONDON, April 29 /PRNewswire/ -- Cascal N.V. (NYSE: HOO - News), a leading provider of water and wastewater services in seven countries, today announced that its China Water subsidiary had acquired a 49 percent stake in an equity joint venture in Yancheng City, China. The new joint venture company, Yancheng China Water Company, which partners Cascal with the Municipality of Yancheng, will formally commence operations on May 1, 2008, for a period of 30 years.
To complete the transaction, Cascal delivered the balance of the purchase consideration (total Rmb 200 million*) and Yancheng China Water Company received the required business license from the Yancheng Industrial and Commercial Administrative Bureau. Over the initial 3 years, Cascal expects the new joint venture company to achieve revenues rising from approximately Rmb 66 million to Rmb81 million and EBITDA margins improving from approximately 35% to greater than 40%.
Cascal currently operates long-term projects in Fuzhou, Yanjiao, Xinmin, Qitaihe, and now Yancheng, and expects to complete another Chinese acquisition in the next few months.
Cascal Chief Executive Officer, Stephane Richer, commented, "We are delighted to have brought the Yancheng transaction to a successful conclusion. Cascal is firmly established and growing in China, and we are confident that the country will present us with additional growth opportunities. The completion of the Yancheng acquisition now brings the number of Chinese provinces within which we operate to five, providing potable water to more than one million residents."
In addition to a number of industrial and commercial enterprises, the Yancheng China Water Company provides potable water services to a residential population of approximately 600,000. Yancheng City is situated on the eastern seaboard of the economically vibrant Jiangsu province, and is approximately 400 km north east of Shanghai. The city has recently enjoyed double-digit annual economic growth, and its core industries are automotive and chemical production.
*As of April 28, 2008, the exchange rate was US$1 to Rmb 7.00
surf1944
16 years ago
AP Sector Snap: Shares of water utilities mixed
Monday April 21, 12:13 pm ET
Analyst says Veolia, Consolidated Water good value among water utilities; sector mostly falls
NEW YORK (AP) -- Veolia Environnement SA and Consolidated Water Co. are excellent values for those looking to invest in the water utility industry, an analyst said Monday as the sector's shares mostly fell.
Year to date water utilities have slightly outperformed the Standard & Poor's 500 stock index, and they rose about 4 percent during last week's Wall Street rally after a string of positive earnings news, Brean, Murray, Carret & Co. analyst Michael Gaugler said in a note to clients.
Gaugler rates Veolia, a French company that recently inked a deal to run New London, Conn.'s water and wastewater system, as "Buy" with a $89 price target. The target implies be expects shares to rise about 27 percent over Friday's $69.96 close.
The New London deal reflects a growing trend for cash-strapped municipalities to sell off utilities. Wall Street generally sees water utilities as good long-term investments.
Water is the generally cheapest of all utilities, including power and natural gas.
During intraday trading, shares of Veolia trading in New York fell $1.32 to $68.64.
The drop comes after disappointing news from Bank of America that sent Wall Street down.
Gaugler rates Consolidated Water as "Buy" with a $35 price target, implying he expects the stock to jump more than 40 percent over Friday's $24.85 close.
The Cayman Islands-based company supplies water throughout the Caribbean region. Shares of Consolidated Water fell 22 cents to $24.63.
Elsewhere in the sector, shares of California Water Service Group fell 19 cents to $40.62, shares of American States Water Co. gained 4 cents to $38.50, shares of SJW Corp. lost 33 cents to $29.87 and shares of York Water Co. decreased 22 cents to $15.65.
surf1944
16 years ago
Cascal N.V. Provides Preliminary Guidance for Fiscal 2009
Wednesday April 23, 9:27 am ET
- Provides Update on Select Current and Prospective Projects
LONDON, April 23 /PRNewswire/ -- Cascal N.V. (NYSE: HOO - News), a leading provider of water and wastewater services to three million people in seven countries, today provided preliminary guidance for its fiscal year ending March 31, 2009, as well as an update on select current and prospective projects.
Fiscal Year 2009 Guidance
Cascal expects revenue of US$179 to US$184 million for fiscal year 2009, representing an increase of approximately 13 percent compared to anticipated revenue for fiscal year 2008. At constant exchange rates, revenue from continuing operations is expected to increase by 17 to 20 percent, of which approximately half is expected to be organic growth, with the other half arising from the part-year contributions from new projects (see below). The Company expects EBITDA of US$68 to US$71 million for fiscal year 2009, representing an increase of approximately 13 percent compared to anticipated EBITDA for fiscal year 2008.
Cascal Chief Executive Officer, Stephane Richer, noted, "The nature and length of our contracts provides us with great visibility into our future results. In addition to strong organic growth, we expect to increase the size of our customer base by signing new contracts that are currently in different stages of due diligence and negotiations."
Panama
During the Company's third quarter conference call, Cascal indicated that its wholly-owned local subsidiary had received a letter from its client in Panama, initiating a process to invoke the contractual provision for an early termination with compensation. The parties have not yet met to discuss the matter, pending the completion of the local audited accounts. The client has continued to not pay the incremental revenue arising from the rate indexation and therefore, the Company's local subsidiary has initiated a process of dispute resolution. Under the contract, this process includes direct negotiations, followed by expert resolution or arbitration.
Richer added, "Our experience in developing nations is extensive, and, while sometimes challenging, our track-record proves that we have been able to successfully navigate issues that may arise. For the entirety of the relationship, we have operated in good faith and in strict compliance with the terms of the contract. We remain confident that we will reach a satisfactory conclusion."
New projects
As previously announced, Cascal's China Water subsidiary was awarded the right to acquire a 49 percent stake in an equity joint venture to deliver water services to a population of approximately 600,000 in Yancheng City, China. This project is currently completing the regulatory approval process. To date, Cascal has delivered 50 percent of the equity required and expects to deliver the final payment and complete the transaction in the near term. The Company is also engaged in negotiations to complete another project in China, which it expects to close in the second half of calendar 2008. Finally, Cascal has made significant progress in its exclusive negotiations to complete a new Chilean project. This project, which will complement the Company's existing operations in Chile, is expected to close in the second half of calendar 2008.
surf1944
16 years ago
JPMorgan: Water Supply a Key Issue
Monday March 31, 3:07 pm ET
By Ernest Scheyder, AP Business Writer
JPMorgan Says Investors Should Closely Examine Water Supply When Mulling Investments
NEW YORK (AP) -- Wall Street has given scant attention to companies that rely directly on water for their survival, even as the world's supply of the liquid is threatened by mismanagement and pollution, a JPMorgan report said Monday.
"In many regions demand for water now outstrips renewable supplies. It is likely this gap will widen," analyst Marc Levinson said in a note to clients. "Water pollution is getting worse in many developing economies, which exacerbates the challenge of delivering sufficient water of the required quality."
Yet many companies provide only "general" information on water that neither qualifies nor quantifies the potential financial risks from a sudden supply disruption, said Levinson in the report, which was cowritten by six analysts.
"An investor in a mining company has a sense of the company's proven reserves, which play an important part in the valuation of the company," Levinson said. "No corresponding data are available on the water reserves available to companies that draw water from the ground."
The problem is especially potent in the gambling, semiconductor and beverage industries, which heavily rely on the liquid for their operations, Levinson said.
Casinos and other resort operators use water in Las Vegas operations to wow consumers with everything from water fountains to simulated Venetian canals. Yet despite several initiatives to conserve resources, Vegas has an "image problem," he said.
"Visitors increasingly are questioning the desirability of such water-based extravagance amid the area's drought-like conditions," he said.
MGM Mirage, with 81 percent of adjusted earnings coming from Las Vegas alone, is most exposed to water problems in that city, he said.
Chip makers rely heavily on water to clean silicon wafers and cool tools. Intel Corp. alone uses as much water in a year as Rochester, N.Y., which had a 2006 population of 208,123, Levinson said.
Beverage companies, which have the most direct need for water, have worked to improve water efficiency, he said. Yet Coca-Cola and other food and beverage companies treat water risk as a global issue, rather than a local and regional one, which it is "first and foremost," Levinson said.
Coca-Cola said that it is transparent about usage and conservation, which includes now using air -- instead of water -- to clean bottles before they are filled. Also, the company said its global distribution network allows it to produce products near where they are consumed.
"We do recognize that our access to safe water around the world is linked to our business," Coca-Cola spokeswoman Lisa Manley said in a phone interview. In 2002, Coca-Cola used 3.12 liters of water to make one liter of its product, but as of 2006, when the most recent numbers are available, it used 2.5 liters, she said.
Quantity and quality trends can have "clear implications" for businesses and investors, even as the "increasing competition" for water among various groups has the potential to damage growth and reputation, JPMorgan's Levinson said.
surf1944
16 years ago
Cascal N.V. Announces Third Quarter 2008 Financial Results
3 March 2008
London, UK - Cascal N.V. (NYSE: HOO) today reported financial results for the three months and nine months ended December 31, 2007
Third quarter Fiscal 2008 financial highlights
* Revenue from continuing operations up 30.6% to $40.1 million for the three months ended December 31, 2007 compared to the same period in 2006
* EBITDA from continuing operations up 24.8% to $15.8 million for the three months ended December 31, 2007 compared with the same period in 2006
Revenue from continuing operations for the three months ended December 31, 2007 increased by 30.6% to $40.1 million compared to $30.7 million for the same period last year. Approximately 54% of the revenue growth was driven by the acquisitions of China Water in November 2006, Pre-Heat in the UK in February 2007 and Siza Water in South Africa in May 2007, while 46% was driven by growth from the historical portfolio and the impact of exchange rate movements.
*
Revenue in the UK increased by $5.2 million (28.1% growth for the three months ended December 31, 2007 compared to same period in 2006) mainly as a result of the $2.4 million contribution from the business we acquired in February 2007, the impact of our scheduled regulated rate increase, and exchange rate movements of $1.0 million.
*
The South African operations increased their revenues by $2.3 million (66% growth for the three months ended December 31, 2007 compared to the same period in 2006) mainly as a result of the contribution of $1.5 million from the subsidiary acquired in May 2007, as well as the rate increase implemented by the Nelspruit business in August 2007 and continued growth in the customer base.
* The $1.7 million (156% growth for the three months ended December 31, 2007 compared to the same period in 2006) increase in revenue in China is due to the inclusion of only six weeks' activity in the quarter ended December 31, 2006 together with underlying growth in demand.
Consistent with the revenue movements described above, EBITDA from continuing operations increased by $3.1 million (24.8% growth for the three months ended December 31, 2007 compared to the same period in 2006), including $1.8 million from the historical portfolio and corporate overheads, $0.8 million from the new acquisitions, and $0.5 million due to exchange rate movements. Our operating expenses were mainly impacted by savings in corporate overheads, including professional fees and by higher prices paid for electricity in the UK, South Africa and Chile.
We recognized a gain on disposal following a receipt of deferred consideration in October 2007 that was secured in the form of promissory notes issued by the Government of Belize.
The results for the quarters have also been impacted by exchange rate gains and (losses) of $2.1 million and $(5.4) million in the quarters ended December 31, 2007 and 2006, respectively. The majority of these losses stem from the retranslation of a GBP 38 million debt into US Dollars for reporting purposes. This debt was incurred in June 2006 in connection with Biwater's acquisition of 50% of Cascal's shares and has been repaid in full out of the proceeds of the initial public offering on February 5, 2008.
Net profit from continuing operations totaled $4.5 million, compared to a net loss of $(3.0) million in the same quarter last year. Diluted earnings per share from continuing operations were $0.20 for the quarter ended December 31, 2007, compared to a per share loss of $(0.14) for the same period in 2006, based on an average weighted number of shares pre-IPO.
Including discontinued operations, net profit for the quarter was $5.5 million, or $0.25 diluted earnings per share compared to a per share loss of $(0.13) for the same period in 2006.
Year-to-date Fiscal 2008 financial highlights
*
Revenue from continuing operations up 38.6% to $118.0 million for the nine months ended December 31, 2007 compared to the same period in 2006
* EBITDA from continuing operations up 26.6% to $47.6 million for the nine months ended December 31, 2007 compared to the same period in 2006
Revenue from continuing operations for the nine months ended December 31, 2007 increased by 38.6% to $118.0 million compared to $85.1 million for the same period last year. Of this overall $32.9 million increase, approximately $19 million, or 58% came from acquisitions. The remainder was achieved by the historical portfolio, mainly as a result of rate increases, additional customers, higher volumes supplied and the impact of exchange rate movements.
*
Revenue in the UK increased by $16.1 million (29.2% growth for the nine months ended December 31, 2007 compared to the same period in 2006) mainly as a result of the $7.2 million contribution from the business acquired in February 2007, the impact of our scheduled regulated rate increase, and exchange rate movements of $4.2 million.
*
The South African operations increased their revenues by $6.0 million (59% growth for the nine months ended December 31, 2007 compared to the same period in 2006) mainly as a result of the contribution of $4.2 million from the subsidiary acquired in May 2007, as well as an increase of $1.8 million (17.6% growth) in our Nelspruit business due to the rate increase implemented in August 2007 and continued growth in the customer base
* The $6.6 million increase in revenue in China is due to the inclusion of only six weeks' activity in the nine months ended December 31, 2006, together with underlying growth in demand.
EBITDA from continuing operations increased by $10.0 million (26.6% growth for the nine months ended December 31, 2007 compared to the same period in 2006), including $4.2 million from the historical portfolio offset by $0.7 million additional corporate overheads, $4.3 million from the new acquisitions, and $2.2 million due to exchange rate movements.
We recognized a gain on disposal following a receipt of deferred consideration in October 2007 that was secured in the form of promissory notes issued by the Government of Belize. This receipt enabled us to release $1.3 million originally provided against the face value of these promissory notes during the year ended March 31, 2006.
Interest expense increased by $4.2 million from the nine months ended December 31, 2006 to the nine months ended December 31, 2007. The increase was mainly related to higher variable borrowing costs incurred by the Company and our UK subsidiary.
The increased interest costs experienced by the Company were primarily a result of:
*
Its GBP38 million facility being outstanding for the full nine months during fiscal year 2008 as opposed to just six of the nine months reported here for fiscal 2007; and
* Higher sterling LIBOR rates.
The increased interest costs experienced by our UK subsidiary came about mainly due to increased UK inflation which is a factor in the calculation of the finance expense of that company's long-term debt facility.
The results have also been impacted by exchange rate losses of $(1.9) million and $(7.4) million in the nine months ended December 31, 2007 and 2006, respectively. The majority of these losses stem from the retranslation of the above mentioned GBP 38 million debt into US Dollars for reporting purposes. This debt was repaid in full out of the proceeds of the initial public offering on February 5, 2008.
Overall the effective tax rate decreased from 57.5% to 40.3%. The rate in the nine months ended December 31, 2006 was significantly impacted by tax losses generated in that period that could not be recognized as deferred tax assets. A substantial component of the aforementioned tax losses was due to that period's foreign exchange rate results.
Net profit from continuing operations totaled $7.6 million, compared to $3.6 million over the same nine months last year. We reported diluted earnings per share from continuing operations of $0.35 for the nine months ended December 31, 2007, compared to $0.16 for the same period in 2006, based on an average weighted number of shares pre-IPO.
Including discontinued operations, net profit was $9.0 million, or $0.41 diluted earnings per share compared to a per share profit of $0.17 for the same period in 2006.
A total of $35.3 million of operating cash flow was generated during the first nine months of fiscal 2008, of which $26.5 million has been invested in tangible fixed assets. The most significant investments in tangible fixed assets during the period ended December 31, 2007 were made in the UK and South African projects based upon capital investment plans presented to the UK regulator and the client in Nelspruit as part of the most recent rate review processes.
Stephane Richer, CEO, says "This is a strong set of results that confirm the continued year-on-year growth in revenue and EBITDA, which reflects both the strength of the existing business' organic growth as well as the success achieved in delivering external growth through a targeted project acquisition strategy.
Recent Business Highlights
On December 17, 2007, our joint-venture company ATB in Indonesia received approval for a rate increase with effect from January 2008. The implementation of the new rate will increase our Indonesian revenue by approximately 20% (or $2.3 million per annum). ATB uses December 31 for its annual reporting date, which date is used for consolidation into Cascal N.V.'s March 31 results, and ATB's results are incorporated in the Group's consolidated results with a three-month lag.
On January 28, 2008, we signed a contract with the Government of Yancheng in Jiangsu province, China through our subsidiary, The China Water Company Limited (China Water). Following the conclusion of a competitive bidding process, China Water secured the right to acquire a 49% interest in a new Equity Joint Venture that will be granted a 30 year concession to deliver water services to a population of more than 600,000 in Yancheng City. China Water is working with the Yancheng Government to secure approvals from the Provincial Government, and the completion of the transaction is subject to theses approvals. China Water expects to make its first 50% equity subscription in March with the second 50% subscription being made within a few weeks thereafter. On January 29, 2008, the Company priced its initial public offering on the New York Stock Exchange which resulted in the issuance of a further 8,710,000 shares to bring the total shares outstanding to 30,559,343 immediately following the initial public offering. The weighted average number of shares used for earnings per share calculations in this release is 21,849,343 being the number of shares outstanding immediately before the initial public offering.
The initial public offering generated proceeds from primary shares issued of $97.2 million after underwriters' discount. An amount of $75.7 million has been applied on February 5, 2008 to repay in full the balance of GBP 38 million on the facility that was drawn in June 2006 at the time that Cascal N.V.'s ownership reverted 100% to Biwater.
On February 1, 2008, we received a conditional acceptance of our indicative offer and an extension to the period of exclusivity for the acquisition of two small water companies in Chile. We are now conducting final due diligence and the parties have confirmed their intention to reach agreement in the next few months.
On February 25, 2008 Aguas de Panama S.A. (APSA), the Company's subsidiary in Panama, received a letter from its client, the Instituto de Acueductos y Alcantarillados Nacionales (IDAAN). In this letter, IDAAN is initiating a process to invoke the contractual provision for early termination with compensation and is seeking APSA's cooperation to achieve a fair outcome. Under the terms of the contract, the compensation payable represents the non-amortized value of the investment together with the present value of the future earnings over the whole duration of the contract.
surf1944
16 years ago
AP
Cascal IPO Prices at $12 Per Share
Tuesday January 29, 11:03 am ET
Cascal's IPO of 12M Shares Prices at $12 Per Share, the Bottom of Already-Reduced Expectations
NEW YORK (AP) -- Cascal NV shares declined in their debut on Tuesday, after the water and wastewater services provider's initial public offering of 12 million shares priced at $12 per share, the bottom of already-reduced expectations.
In morning trading, the stock fell 4 cents to $11.96. The shares have traded between $11.70 and $12.25 during the session.
On Friday, Cascal reduced the size and expected price range of its IPO after its parent company reduced the number of shares it planned to sell in the offering.
According to Securities and Exchange Commission filings, Cascal expected the IPO to price between $12 and $13 per share. The company initially expected the offering to price from $17 to $19 apiece.
The IPO was expected to total 16.7 million shares before Cascal's parent company, Biwater Investments Ltd., reduced its portion of the offering.
Based on the revised terms, Cascal has a market capitalization of $354.7 million.
Cascal plans to use the proceeds from its portion of the IPO to repay debt, for acquisitions, to develop projects and for working capital.
The U.K.-based company provides water and wastewater services to a total population of about 3 million in the United Kingdom, South Africa, Indonesia, China, Chile, Panama, Mexico and the Philippines.
Biwater Group will hold a 59 percent stake in the company following the offering.
For the six months ended Sept. 30, Cascal's rose to $79.4 million from $55.8 million in the first six months of 2006. Revenue was calculated using Dutch generally accepted accounting principles, which vary in certain respects from U.S. GAAP, such as in how the cost of pensions and goodwill amortization are calculated. Cascal is incorporated in the Netherlands.
JPMorgan is serving as the IPO's lead underwriter. Credit Suisse, Janney Montgomery Scott LLC and HSBC are also underwriting the offering.
Cascal's shares trade on the New York Stock Exchange under the symbol "HOO."
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