CLINTON, Conn., Aug. 15, 2001 — Connecticut Water Service, Inc., announced that the company's board voted at its regular meeting today to effect a three-for-two split on its common shares.
Each Connecticut Water Service common shareholder of record as of August 27, 2001 will receive as a stock dividend one share of Connecticut Water Service for two shares owned. The Company expects that the additional share will be distributed on or about September 7, 2001.
Shareholders voted at an August 6 special meeting to amend the company's charter, increasing the total amount of authorized shares to 15,000,000 from 7,500,000. Issuance of the increased shares and the post-split price will be reflected on the NASDAQ market on September 10, 2001.
The company also reported second quarter earnings. Through June 30, 2001 net income applicable to common shareholders was $1,914,000, or $.38 a basic share, compared to the net income of $1,876,000, or $.37 a basic share, earned in the same period last year. The increase was partially due to increased profits from the company's Linebacker (SM) service line maintenance program due to increased customer enrollment.
Additionally, the Board also approved a quarterly dividend of $.30333, an increase of $0.00333 on the company's common shares, payable on September 17, 2001 to holders of record on September 4, 2001. This increase marks the 32nd consecutive year of dividend increases. The Board also approved a $.20 dividend on Preferred A shares, payable on October 17, 2001 to holders of record on October 2, 2001, and a $.225 dividend on Preferred 90 shares, payable on October 31, 2001 to holders of record on October 17, 2001.
"We are proud of our consistent record of earnings and dividend growth," said Marshall T. Chiaraluce, Connecticut Water's CEO and Chairman. "Today's announcement of a dividend increase and stock split is an indication of the company's strength and our confidence in its future."
