POINT RICHMOND, Calif., Feb. 14, 2003 -- Western Water Co. announced Friday its results for the third fiscal quarter ended December 31, 2002.
The company reported net income applicable to common stockholders for the quarter ended December 31, 2002 of $92,000, or $0.01 per common share. That result compared to a net loss applicable to common stockholders of $632,000, or $0.08 per common share, for the quarter ended December 31, 2001.
Revenues for the quarter, entirely from water sales, were $326,000, compared to $338,000 for the comparable quarter of the preceding fiscal year. Net income during the recent quarter included a gain of $964,000 resulting from the sale of the company's remaining Mojave Basin water rights in San Bernardino County, Calif. The sale of the Mojave Basin water rights will generate $2,632,000 of net cash proceeds during the current fiscal year.
Commenting on the results, Michael Patrick George, chairman, president and CEO of Western Water Company, said: "The company is pleased with the results of the sale of the Mojave Basin water rights, not only because of the substantial gain realized but also because the sale validates the company's belief that the underlying value of water rights in California can be fairly determined in a properly regulated and transparent water market.
"However, developing the regulatory environment that fostered these arm's length sales required years of litigation and negotiation. Unfortunately, the renewed outbreak of California's periodic but unproductive 'water wars' in the context of the failed Quantification Settlement Agreement among Colorado River water users bodes ill for a state entering another drought year. The company hopes to play a constructive role in promoting more efficient market-based solutions to water allocation."
George went on to say, "The regulatory picture in Colorado is much clearer and, as a result, the company has made substantial progress in developing the Cherry Creek Project as a reliable water resource for local public agencies. During the past quarter, the company continued to make modest sales of water from the Project and received key permits and completed construction of Project infrastructure on time and within budget. In partnership with our customers, the company is pursuing additional developments in the current quarter which fulfill conditions for the pending sales of the initial Water Delivery Contract Units. Once we complete the sale of WDCUs, the Cherry Creek Project will be integrated into the regional water supply network."
Western Water Company is engaged in the identification, development, transportation, sale and lease of water rights and water to municipalities and other end users in the western United States and owns water rights and real estate in California and Colorado.
