Editor's note: The accounts payable and long-term debt figures were incorrect in the original version of this story. We have updated the chart to reflect the correct data. We regret the error.

On Nov. 1, California Water Service (NYSE:CWT), which supplies H2O to 100 communities in the western U.S., released third-quarter earnings for the period ended Sept. 30.

  • Sales increased by 6.6% to $107.8 million, mostly because of a a rate increase that contributed $2.8 million, while sales to new customers added a further $0.9 million.
  • Net income decreased by 3.8% to $12.6 million, thanks to an increase in water production and operations costs.
  • Our Motley Fool CAPS community is firmly unexcited about this stock, assigning it a two-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$107.8

$101.1

6.6%

Net Profit

$12.6

$13.1

(3.8%)

EPS

$0.68

$0.71

(4.2%)

Diluted Shares

18.4

18.4

0%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

59.2%

61.2%

(2.1)

Operating Margin

15.1%

16.5%

(1.5)

Net Margin

11.7%

13%

(1.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$4.3

$23.8

(81.9%)

Accounts Rec.

$30.5

$26.6

14.7%



Q3 2006

Q3 2005

Change

Accounts Payable

$37.1

$29.5

25.8%

Long-Term Debt

$293.5

$274.4

7.0%



Learn the ways of the balance sheet.

Cash Flow Highlights
We were thirsty for a cash flow statement in the earnings release, but alas, we are still parched.

Find out why Fools always follow the money.

Related Companies:

  • SJW (NYSE:SJW)
  • Aqua America (NYSE:WTR)
  • American States Water (NYSE:AWR)

Related Foolishness:

California Water Service is a Motley Fool Income Investor recommendation. Find more dividend superstars with a free 30-day trial of James Early's low-risk, high-reward newsletter service.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.