FINANCIALS: Ionics, Zenon, Arch Chemicals, etc., report earnings
In addition see quarterly results from Connecticut Water, Southwest Water, York Water, AMTROL, Synagro, Strategic Diagnostics, Clean Harbors, Portola Packaging, Glacier Water, Aqua America, Artesian Resources, Pure BioScience...
Ionics cuts 3Q, year-to-date losses
WATERTOWN, MA, Nov. 9, 2004 (PRNewswire-FirstCall) -- Ionics Inc. reported quarterly and nine-month results for the periods ended Sept. 30, with third quarter revenues of $118.1 million, compared to $87.7 million for the same period a year ago and year-to-date revenues of $349.6 million compared to $251.5 million in 2003.
Quarterly net income was $900,000 compared to a $22 million loss a year earlier. There was a net loss of $5.4 million for the nine-month period compared to a loss of $26.4 million a year earlier.
During the quarter, manufacturing at one of Ionic's facilities in Pennsylvania was temporarily halted as a result of flooding associated with Hurricane Ivan, resulting in a $500,000 pretax loss.
Also included in the company's financial results are consolidated results of the Ecolochem Group (acquired Feb. 13), and Desalcott (Desalination Company of Trinidad and Tobago Ltd.), the company's 40%-owned joint venture in Trinidad.
Ionics (www.ionics.com) is a global leader in water purification and wastewater treatment, with over 50 years experience in design, installation, operation and maintenance of such systems -- and more membrane-based desalination systems designed and built by Ionics than any other supplier worldwide. It's a leading provider of emergency and long-term water treatment services, as well as a leader in supplying zero-liquid-discharge systems, providing ultrapure water systems for the power and microelectronics industries, and measurement and analysis of water impurities. It also supplies point-of-use and point-of-entry water treatment systems for commercial and residential applications.
Zenon posts 47% jump in 3Q revenue with record nine-month profit
OAKVILLE, ON, Canada, Nov. 9, 2004 (PRNewswire-FirstCall) -- Zenon, an innovator of membrane based water filtration technologies, reported third quarter revenue growth of $18.7 million over the same period a year ago, with revenues of $58.8 million vs. $40.1 million in 2003. This figure remains above the 2004 year-to-date revenue growth of 43% ($168.4 million vs. $117.7 million), resulting in net income improvement of 57% over the first nine months of 2003 to a record $10.4 million. Net income for the quarter increased 5% over the same period last year. And Zenon's backlog of orders continues to remain strong at $262 million, with $55 million in new bookings for the quarter largely for municipal wastewater applications.
Equally as important as safeguarding the drinking water supply, is ensuring the quality of treated wastewater is high enough to protect our environment from any further damage done through pollution. This also allows for water conservation as treated effluent can be of sufficiently high quality to be reused in non-potable applications, such as irrigation. To this end, two additional U.S. municipalities in California and Georgia chose the Zenon MBR (membrane bioreactor) to treat wastewater in their communities.
Coupled with the company's ZeeWeed membrane technology with biological treatment, the system replaces conventional treatment, combining clarification, aeration and filtration into a single and simple process step. The result is consistently high quality effluent that occupies only a third of the land area required by alternative processes because of its small footprint.
The city of Hollister, Calif., will be treating about 4 mgd (15,142 m3/day) of wastewater once the new MBR plant is complete in a year. Achieving Title 22 certification, requires that the chosen technology meet specific filtration parameters for water reuse applications, was an important factor for the municipality. And Zenon's ZeeWeed membranes are Title 22 certified.
The growing community of Gainesville, Ga., will soon have the fifth Zenon MBR plant in the state. The municipality needed a technology that could meet the more stringent effluent limits required for discharge to nearby Lake Lanier. The new plant, treating about 5 mgd (18,927 m3/day), will be constructed on the existing Linwood Water Reclamation Facility site and is set for completion by mid 2005.
Zenon also received an MBR order from a municipality in Hungary. Karcag is in the eastern part of the country with a community of about 22,000. The existing conventional wastewater treatment plant is nearly 20 years old and inefficient at producing a high enough quality effluent for discharge purposes. After looking at different systems, the municipality chose the Zenon because the plant can be easily expanded from 792,000 gpd (3000 m3/day) capacity to a 1 mgd capacity by using the existing concrete structures, with only a slight refurbishment. More importantly, by increasing the quality of the treated wastewater, they are assured that the plant will be in compliance with surface water discharge criteria.
To date, Zenon has over 60 municipal MBR plants either in operation or under design globally and this total approaches 200 installations with the inclusion of industrial applications. By continuing to bring the cost per gallon of wastewater treated down to the point where it is comparable to or less than that of conventional wastewater treatment, Zenon will increase its global share of the wastewater treatment market.
Last week, a preliminary ruling was issued in Zenon's patent infringement lawsuit against USFilter. The trial judge issued an adverse ruling on the meaning of the terms in one of the three patents in suit. Zenon believes the court's decision to be unfounded and will appeal the preliminary ruling. A formal appeal can only be filed after the trial, which is scheduled for the end of March 2005. The ruling doesn't affect the other patents in suit.
Connecticut Water shows lower quarterly results, year-to-date still up
CLINTON, CT, Nov. 9, 2004 (BUSINESS WIRE) -- Connecticut Water Service Inc., the largest investor-owned water company based in New England serving over 300,000 people in 42 towns in Connecticut and Massachusetts, announced net income of $7,841,000 for the first nine months of 2004 compared to $7,205,000 for the same period a year ago.
Marshall T. Chiaraluce, company chairman, president and CEO, said, "The increased revenue, combined with lower interest charges stemming from debt refinancing in recent years, more than offset increases in operating expenses to grow year-to-date earnings by 9% or $0.07 per share."
The $133,000 decline in quarterly net income for the period ended Sept. 30 was due to higher operating expenses, a major portion directly related to compliance with Section 404 of the Sarbanes-Oxley Act. These increased operating expenses were partially offset by higher revenues, lower interest charges and increased non-water sales earnings in 2004.
"Although the quarterly earnings were lower," Chiaraluce added, "the earnings outlook for the year remains strong. The lower interest expense due to debt refinancing and the continuing increase earnings in the company's non-water sales business segment should continue during the fourth quarter."
Southwest Water revenues up, income down
LOS ANGELES, Nov. 9, 2004 (BUSINESS WIRE) -- In reporting financial results for the periods ending Sept. 30, Southwest Water Co. showed quarterly revenues of $55 million vs. $51.4 million, operating income of $5 million vs. $6.6 million, and net income of $2.4 million vs. $3.4 million a year earlier.
Two instances where California supply interruptions forced the purchase of more expensive water, as well as unexpected delays in obtaining permits for construction projects in Texas, affected results in the quarter. Absorbing expenses due to integrating its acquisition of a billing and collection subsidiary and a positive impact from a rate increase for a utility acquisition also had an effect.
Southwest Water Co. (www.swwc.com) provides a broad range of services, including water production, treatment and distribution; wastewater collection and treatment; utility billing and collection; utility infrastructure construction management; and public works services. The company owns regulated public utilities and also serves cities, utility districts and private companies under contract. More than two million people in 35 states from coast to coast depend on Southwest Water for high-quality, reliable service.
York Water's quarterly net drops 17.1%
YORK, PA, Nov. 8, 2004 (BUSINESS WIRE) -- While quarterly income and revenue were down, York Water Co.'s president Jeffrey S. Osman reported nine month operating revenues of $16,430,000, an increase of 5.4%, and net income of $3,866,000, a jump of 17.1% compared to the same period a year ago, respectively.
Still, Osman also reported third quarter operating revenues of $5,569,000 declined 3.7% and net income of $1,239,000 declined by 17.1% compared to the same period in 2003. A rate increase effective in early November will strengthen revenues in the fourth quarter.
During the first nine months of 2004, York Water incurred $21,596,000 in expenses on construction projects, primarily on the Susquehanna River Pipeline Project, and additionally to expand its service territory. The pipeline project will increase capacity by 50%, or 12 mgd, and allow the company to meet the water needs of its current and future customers, as well avoid water rationing, plant closings and discontinued operations associated with drought emergencies and water restrictions. The pipeline is expected to be operational in early November.
AMTROL net sales up 6.6%, year-to-date net loss widens
WEST WARWICK, RI, Nov. 5, 2004 (BUSINESS WIRE) -- AMTROL Inc. announced 2004 third quarter net sales of $45.7 million, an increase of $2.8 million compared to the same period a year ago. It also reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $5.9 million, an increase of $900,000 relative to the third quarter of 2003.
For the first nine months of 2004, AMTROL reported net sales of $151 million, an increase of $11.7 million or 8.4% from the same period in 2003. EBITDA for the first nine months of 2004 was $19.6 million, an increase of $1.9 million from the same period in 2003.
The net loss for the first nine months of 2004 of $11.2 million compares to a net loss for the year earlier period of $3.8 million, reflecting the loss of $8.1 million incurred on the sale of a discontinued subsidiary in February 2004.
AMTROL is a leading international producer and marketer of flow and expansion control products, water heaters and cylinders for a variety of gases. Its major products include pressure tanks used in water well, hydronic heating and potable hot water applications, indirect-fired water heaters, and both LPG and disposable refrigerant gas cylinders. AMTROL is a wholly owned subsidiary of AMTROL Holdings Inc. which is controlled by Cypress Merchant Banking Partners L.P. and Cypress Offshore Partners.
Synagro quarterly revenue up 8.4%
HOUSTON, Nov. 4, 2004 (BUSINESS WIRE) -- Synagro Technologies Inc., a national company focused on U.S. water and wastewater residuals management services, reported revenue during the quarter increased to $86.3 million vs. $79.6 million a year earlier.
CEO Robert C. Boucher Jr. said that reflects an increase in contract revenues of 10.3% and an increase in event revenues of 17.1%.
Boucher added, "We have made substantial progress on a couple of key facility development projects during the quarter. First, on the Kern compost facility in Southern California, we have signed long-term contracts with three customers for a substantial portion of the facility's operating capacity and purchased the land where the facility will be located. We expect this facility will generate in excess of $12 million of annual revenue when it opens in 2006.
"We have also recently received notice to proceed with the construction of the Honolulu dryer facility. We expect to generate approximately $30 million of design/build revenue over the next five quarters while construction occurs, and approximately $3.0 million of annual revenue upon commencement of operations of this facility, which is expected to occur in 2006."
Operating income for the quarter totaled $13.2 million compared to $12.6 million in the comparable quarter last year. Net income applicable to common stock for the quarter increased $100,000 to $2.3 million compared to the same period a year earlier.
Revenue for the nine months rose 10.4% to $241.3 million from $218.5 million in. the same period a year earlier. Operating income for the period increased to $33 million vs. $32.4 million. Net income applicable to common stock increased 61% to $4.1 million vs. $2.5 million.
Synagro is one of the largest national companies focused on U.S. water and wastewater residuals management services, serving over 1,000 municipal and industrial water and wastewater generators in 37 states and the District of Columbia
Strategic Diagnostics reports quarterly, year-to-date drops
NEWARK, DE, Nov. 4, 2004 (BUSINESS WIRE) -- Strategic Diagnostics Inc., a provider of antibody products and analytical test kits for food safety and water quality, reported quarterly revenues fell 14% to $5.5 million, compared to $6.4 million for the third quarter of 2003. Net income for the period was $271,000, compared to $264,000 a year earlier. For the nine months period, revenues dropped 10% to $17.3 million vs. $19.3 million a year earlier. Net income for the period was $837,000, compared to net income of $810,000 in the prior year.
Food safety revenues decreased 18% to $1.7 million in the third quarter of 2004 compared to $2 million for the same quarter in the prior year, and increased by 5% to $5.2 million for the nine months ended September 30, compared to $5 million for the same period in the prior year.
Water quality revenues decreased 16% to $1.4 million for the third quarter of 2004 compared to $1.6 million for the same quarter in the prior year. They also decreased by 17% to $4.5 million for the nine months ended September 30, compared to $5.5 million for the same period in the prior year. The decline relates primarily to U.S. sales, reflecting an overall slowing in environmental testing and remediation due to federal spending cuts in the environmental arena. In Europe, conversely, water quality revenues grew 32% in the third quarter.
SDI is a leading provider of biotechnology-based diagnostic tests for a broad range of agricultural, industrial, and water treatment applications. Through its antibody business, Strategic BioSolutions, Strategic Diagnostics also provides antibody and immunoreagent research and development services. SDI's test kits are produced in a variety of formats suitable for field and laboratory use, offering advantages of accuracy, cost-effectiveness, portability, and rapid response.
Clean Harbors reports ongoing initiatives drive 75% jump in operating income
BRAINTREE, MA, Nov. 4, 2004 (BUSINESS WIRE) -- Clean Harbors Inc., a provider of environmental and hazardous waste management services throughout North America, reported third quarter 2004 revenues of $162.7 million, compared with $151.1 million in the year ago period ending Sept. 30.
Operating income was up to $11.2 million compared to $6.5 million for the quarter a year ago. The company generated net income of $4.4 million for the period compared $7.4 million a year earlier.
Revenues for the nine months period were $467.0 million, compared with $465.4 million for the comparable period a year ago. Operating income for the first nine months of 2004 grew more than 300% to $24.5 million vs. $6.1 million for the period a year earlier.
Clean Harbors Inc. (www.cleanharbors.com) is North America's leading provider of environmental and hazardous waste management services. With 48 waste management facilities, including nine landfills, five incineration locations and seven wastewater treatment centers, the company provides essential services to more than 30,000 customers, including more than 175 Fortune 500 companies, thousands of smaller private entities and numerous federal, state and local governmental agencies. It operates in more than 100 locations in 36 U.S. states, six Canadian provinces, Mexico and Puerto Rico.
Portola Packaging finishes year with quarterly net loss
SAN JOSE, CA, Nov. 3, 2004 (BUSINESS WIRE) -- Portola Packaging Inc. reported results for its fiscal year ended Aug. 31, with sales for the fourth quarter of $66.2 million vs. $58.5 million a year earlier, an increase of 13.2%. For fiscal year 2004, sales were $242.5 million vs. $215.3 million a year earlier, an increase of 12.6%.
Portola reported a net loss of $4.4 million for the fourth quarter of fiscal year 2004 compared to net income of $700,000 for the same period of fiscal year 2003, and a net loss of $20.6 million for the full fiscal year 2004 compared to a net loss of $1.7 million.
The increase in net loss was attributable to intense competitive pricing pressures in the U.S. and UK markets, delays in passing through resin price increases to customers under applicable sales contracts provisions and other one-time costs referenced in the detailed financial results schedule below.
During the fourth quarter of fiscal 2004, Portola closed on the sale of its manufacturing facility in San Jose, Calif., at a net sales price of $3.2 million and recognized a gain of $600,000. Results also do not include results of Tech Industries Inc., which was acquired in the first quarter of fiscal 2004.
Portola Packaging (www.portpack.com) is a leading designer, manufacturer and marketer of tamper evident plastic closures used in dairy, fruit juice, bottled water, sports drinks, institutional food products and other non-carbonated beverage products. The Company also produces a wide variety of plastic bottles for use in the dairy, water and juice industries, including various high density bottles, as well as five-gallon polycarbonate water bottles. In addition, the Company designs, manufactures and markets capping equipment for use in high speed bottling, filling and packaging production lines. The Company is also engaged in the manufacture and sale of tooling and molds used in the blow molding industry.
Glacier Water quarterly revenue up 4.3%
VISTA, CA, Nov. 3, 2004 (BUSINESS WIRE) -- Revenues for the quarter ended Sept. 26 at Glacier Water Services Inc. increased 4.3% to $21,332,000 compared to $20,447,000 for the same quarter a year ago. For the nine-month period revenues increased 6.1% to $58,123,000 compared to $54,770,000 for the same period a year ago.
The increase in revenues for both periods was driven primarily by revenues associated with the Water Island acquisition in October 2003, offset partially by the impact of the cooler than normal summer in California and negative impact of hurricanes Charley, Frances, Ivan, and Jeanne, which temporarily shut down several hundred of the company's machines. All machines have since been put back into service.
Glacier Water's income from operations for the quarter was $2,895,000 compared to $3,029,000 in the same period last year. For the nine-month period, income from operations was $5,348,000 compared to $4,756,000 for the same period last year, representing a $592,000 or 12.4% improvement.
Net income applicable to common shares for the quarter was $986,000, compared to income of $1,160,000 for the same period last year. For the nine-month period, the net loss applicable to common shares was $396,000, compared to a loss of $467,000 for the same period last year.
With about 15,200 machines located in 39 U.S. states, Glacier is the leading provider of high quality, low-priced drinking water dispensed to consumers through self-service vending machines located at supermarkets and other retail locations.
Aqua America net income up despite heavy rainfall
BRYN MAWR, PA, Nov. 2, 2004 (BUSINESS WIRE) -- Aqua America Inc. cited customer growth and rate awards in key states as the primary factors resulting in increased operating revenues, operating income and net income in the third quarter compared to the same period in 2003, despite having experienced rainy and stormy weather during the third quarter.
Third quarter operating revenues for the period ended Sept. 30 grew 17.8% to $120.3 million from $102.2 million for the same quarter in 2003. Operating income was up 10.1% to $51.0 million from $46.3 million. Net income increased 2.0% to $24.1 million from $23.6 million.
"Considering the severe weather we experienced in our mid-Atlantic and Southern states, we are very pleased with our results," said Aqua America Chairman Nicholas DeBenedictis. "Traditionally, it is the third quarter during which weather can have an incremental impact of as much as 10% (up or down) on earnings. In southeastern Pennsylvania where more than 335,000 water customers are concentrated, rainfall during the summer averaged 50% above normal. The one piece of good news from the excessive rain, however, is all of our company reservoirs in the area are full for next year."
Operating revenues for the nine months period increased 22.8% to $326.6 million from $266.0 million for the same period in 2003. Net income increased 10.2% to $57.5 million from $52.2 million.
Increased revenue was due to addition of newly-acquired Heater Utilities system in North Carolina purchased in June 2004, our AquaSource properties acquired in August 2003, and former Florida Water Services customers acquired in June 2004. Also supplementing customer growth were seven "tuck-in" acquisitions completed by Aqua America subsidiaries during the third quarter, 22 in total since January. In addition, approved rate increases in Pennsylvania, Illinois, Ohio, New Jersey and other states totaled about $20 million in annual revenue. And rate filings in process in North Carolina, Illinois and Texas represent $16.7 million annually.
Aqua America Inc. (www.aquaamerica.com) is the largest U.S.-based publicly-traded water utility, serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina, Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New York, and South Carolina.
Arch Chemicals 3Q sales up 24%, agreement signed to sell microelectronics unit
NORWALK, CT, Nov. 2, 2004 (BUSINESS WIRE) -- Arch Chemicals Inc. announced third quarter 2004 sales of $316.7 million compared to $256.2 million in 2003. Operating income was $14.3 million compared to operating income of $7.5 million a year earlier, while net income was $5.8 million compared to $2.1 million in 2003.
Chairman, President and CEO Michael E. Campbell said double-digit increases in sales and earnings in personal care and industrial biocides, and wood protection operations helped offset a decline in pool chemical sales due to cool weather and high raw material costs that impacted several businesses.
Campbell added, "I'm very pleased to have reached agreement last week to sell the majority of our Microelectronic Materials operations to Fuji Photo Film Co., Ltd. for about $160 million. This divestiture marks a significant milestone in the transformation of our portfolio... to concentrate resources on Treatment Products" that showed a 30% improvement in sales to $234.7 million. HTH Products for pools and spas showed an operating loss of $6.7 million on $83 million in sales compared to $800,000 on $75.4 million in sales for the period in 2003. Personal care and industrial biocides reported sales of $65.5 million compared to $37.1 million in 2003.
Based in Norwalk, Conn., Arch Chemicals Inc. (www.archchemicals.com) is a global specialty chemicals company with more than $1 billion in annual sales. Arch and its subsidiaries have leadership positions in three business segments -- Treatment Products, Microelectronic Materials and Performance Products -- and they serve leading customers in these markets with forward-looking solutions to meet their chemical needs. Together with its subsidiaries, Arch has about 3,300 employees and manufacturing and customer-support facilities in North and South America, Europe, Asia and Africa.
Artesian Resources results up for quarter, year-to-date
NEWARK, DE, Nov. 1, 2004 (PRNewswire-FirstCall) -- Artesian announced revenues for the nine months ended Sept. 30 were $29.4 million, up 7.9% from $27.2 million in the same period in 2003. Net income was $3.2 million, up 6% from $3 million for the same period last year.
Quarterly revenues were $10.6 million, up from $9.2 million compared to the same period last year. Net income increased to $1.5 million from $1.1 million for the third quarter last year.
Contributing to revenue growth was a 42.7% increase, $361,000, in non-utility and other utility operating revenue, primarily from contract water and wastewater operations, in the nine month period. These sources of revenue increased by 127.2%, or $262,000, for the third quarter compared to the same period a year ago.
Artesian Resources Corp., through its wholly-owned subsidiary Artesian Water Co., is the largest investor owned regulated public water utility in Delaware and has been providing water within the state since 1905.
Pure Bioscience cuts losses
SAN DIEGO, Oct. 29, 2004 (BUSINESS WIRE) -- Pure Bioscience reported revenues from continuing bioscience segment operations of about $263,500 for the fiscal year ended July 31, compared to revenues of $115,700 in the prior year. The company announced a narrowing loss from continuing operations of $2,823,600, compared to a loss of $3,663,900 in the prior year.
Although the company continues to operate its water treatment division pending its sale, financial results related to the water treatment division are presented as discontinued operations. Revenues from the discontinued water treatment operation for the fiscal year ended July 31 were about $1.8 million vs. $2,473,800 in 2003. At July 31, the company had a backlog of $458,000 of water treatment products.
Based in El Cajon, Calif., Pure Bioscience develops and markets technology-based products in the bioscience and water treatment sectors to provide non-toxic solutions to global health challenges. These include proprietary high efficacy/low toxicity bioscience technologies, including its silver dihydrogen citrate antimicrobials and TriglycylborideTM pesticides, as well as its Fillmaster® pharmaceutical water purification equipment, and Nutripure® residential water filtration systems.