Cascal B.V. (HOO)

[surf1944]

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.

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