##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
 (Mark One)þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended September 30, 2007ORo
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transaction period from __________________________ to __________________________
 Commission File Number: 0-25248
 CONSOLIDATED WATER CO. LTD.
  CAYMAN ISLANDS
    
    N/A(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 Regatta Office Park 
Windward Three, 4th Floor, West Bay Road 
P.O. Box 1114
Grand Cayman KY1-1102
Cayman Islands
    
    N/A(Address of principal executive offices)
    
    (Zip Code)
 (345) 945-4277
  þ o
  o þ o
  o þ
 ,




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TABLE OF CONTENTS
 Section
    
    Description
    
    PagePART I
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsConsolidated Balance Sheets as of September 30, 2007 (Unaudited) and December 31, 2006
    
    
    4Consolidated
Statements of Income (Unaudited) for the Three and Nine Months Ended
September 30, 2007 and 2006
    
    
    5Consolidated
Statements of Cash Flows (Unaudited) for the Nine Months Ended
September 30, 2007 and 2006
    
    
    6Notes to Consolidated Financial Statements (Unaudited)
    
    
    7Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    25Item 4.
    
    Controls and Procedures
    
    
    25PART II
    
    OTHER INFORMATIONItem 1A.
    
    Risk Factors
    
    
    26Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 6.
    
    Exhibits
    
    
    28SIGNATURE
    
    
    
    
    29EX-31.1 Section 302 Certification of CEOEX-31.2 Section 302 Certification of CFOEX-32.1 Section 906 Certification of CEOEX-32.2 Section 906 Certification of CFO
   
 2




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NOTE REGARDING CURRENCY AND EXCHANGE RATES
        3




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PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 
 CONSOLIDATED WATER CO. LTD.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 September 30,
    
    
    December 31,2007
    
    
    2006(unaudited)ASSETSCurrent assetsCash and cash equivalents
    
    $
    40,845,925
    
    
    $
    37,310,699Accounts receivable, net
    
    
    5,412,523
    
    
    
    6,231,718Inventory
    
    
    3,433,778
    
    
    
    2,794,892Prepaid expenses and other current assets
    
    
    1,368,471
    
    
    
    1,099,619Current portion of loans receivable
    
    
    950,116
    
    
    
    735,632Total current assets
    
    
    52,010,813
    
    
    
    48,172,560Property, plant and equipment and construction in progress, net
    
    
    64,132,074
    
    
    
    63,568,369Loans receivable
    
    
    2,564,303
    
    
    
    1,697,648Investment in and loan to affiliate
    
    
    16,939,080
    
    
    
    15,457,880Other assets
    
    
    10,288,628
    
    
    
    10,064,886Total assets
    
    $
    145,934,898
    
    
    $
    138,961,343LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilitiesAccounts payable and other current liabilities
    
    $
    4,292,131
    
    
    $
    6,468,290Current portion of long term debt
    
    
    1,121,526
    
    
    
    1,154,067Total current liabilities
    
    
    5,413,657
    
    
    
    7,622,357Long term debt
    
    
    22,651,794
    
    
    
    23,500,593Other liabilities
    
    
    462,435
    
    
    
    497,985Minority interest in subsidiary
    
    
    1,412,050
    
    
    
    1,495,753Total liabilities
    
    
    29,939,936
    
    
    
    33,116,688Stockholders equityControlling interests:Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares;
issued and outstanding 21,617 and 24,971 shares, respectively
    
    
    12,971
    
    
    
    14,983Class A common stock, $0.60 par value. Authorized 19,680,000 shares;
issued and outstanding 14,501,854 and 14,132,860 shares, respectively
    
    
    8,701,113
    
    
    
    8,479,716Class B common stock, $0.60 par value. Authorized 120,000 shares;
none issued or outstanding
    
    
    
    
    
    
    Additional paid-in capital
    
    
    79,708,435
    
    
    
    76,071,710Retained earnings
    
    
    27,179,985
    
    
    
    21,278,246115,602,504
    
    
    
    105,844,655Non-controlling interests
    
    
    392,458
    
    
    
    Total stockholders equity
    
    
    115,994,962
    
    
    
    105,844,655Total liabilities and stockholders equity
    
    $
    145,934,898
    
    
    $
    138,961,343
  4




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CONSOLIDATED WATER CO. LTD.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Retail water revenues
    
    $
    4,668,974
    
    
    $
    4,135,562
    
    
    $
    15,052,499
    
    
    $
    14,053,539Bulk water revenues
    
    
    5,416,329
    
    
    
    5,128,396
    
    
    
    16,016,757
    
    
    
    13,193,179Services revenues
    
    
    1,834,160
    
    
    
    746,407
    
    
    
    5,549,198
    
    
    
    1,634,187Total revenues
    
    
    11,919,463
    
    
    
    10,010,365
    
    
    
    36,618,454
    
    
    
    28,880,905Cost of retail revenues
    
    
    1,785,123
    
    
    
    1,448,270
    
    
    
    5,535,055
    
    
    
    5,024,372Cost of bulk revenues
    
    
    4,590,947
    
    
    
    4,346,148
    
    
    
    13,032,456
    
    
    
    10,196,103Cost of services revenues
    
    
    1,223,118
    
    
    
    407,125
    
    
    
    3,943,017
    
    
    
    668,773Total cost of revenues
    
    
    7,599,188
    
    
    
    6,201,543
    
    
    
    22,510,528
    
    
    
    15,889,248Gross profit
    
    
    4,320,275
    
    
    
    3,808,822
    
    
    
    14,107,926
    
    
    
    12,991,657General and administrative expenses
    
    
    2,467,534
    
    
    
    2,302,790
    
    
    
    7,218,788
    
    
    
    6,584,915Income from operations
    
    
    1,852,741
    
    
    
    1,506,032
    
    
    
    6,889,138
    
    
    
    6,406,742Other income (expense):Interest income
    
    
    481,652
    
    
    
    46,908
    
    
    
    1,409,861
    
    
    
    143,472Interest expense
    
    
    (456,605
    )
    
    
    (732,832
    )
    
    
    (1,404,600
    )
    
    
    (1,177,407
    )Other income
    
    
    351,945
    
    
    
    143,522
    
    
    
    771,461
    
    
    
    474,351Equity in earnings of affiliate
    
    
    474,407
    
    
    
    303,878
    
    
    
    1,361,077
    
    
    
    1,035,431Other income (expense), net
    
    
    851,399
    
    
    
    (238,524
    )
    
    
    2,137,799
    
    
    
    475,847Income before non-controlling and minority interests
    
    
    2,704,140
    
    
    
    1,267,508
    
    
    
    9,026,937
    
    
    
    6,882,589Income attributable to non-controlling and minority
interests
    
    
    194,976
    
    
    
    20,468
    
    
    
    308,755
    
    
    
    35,510Net income
    
    $
    2,509,164
    
    
    $
    1,247,040
    
    
    $
    8,718,182
    
    
    $
    6,847,079Basic earnings per common share
    
    $
    0.17
    
    
    $
    0.10
    
    
    $
    0.61
    
    
    $
    0.55Diluted earnings per common share
    
    $
    0.17
    
    
    $
    0.10
    
    
    $
    0.60
    
    
    $
    0.54Dividends declared per common share
    
    $
    0.065
    
    
    $
    0.06
    
    
    $
    0.195
    
    
    $
    0.18Weighted average number of common shares used in the determination of:Basic earnings per share
    
    
    14,495,546
    
    
    
    12,394,582
    
    
    
    14,370,522
    
    
    
    12,387,980Diluted earnings per share
    
    
    14,530,119
    
    
    
    12,656,717
    
    
    
    14,478,249
    
    
    
    12,702,452
  5




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CONSOLIDATED WATER CO. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 Nine Months Ended September 30,2007
    
    
    2006Net cash flows provided by operating activities
    
    $
    8,299,257
    
    
    $
    6,270,345Cash flows provided by (used in) investing activitiesPurchase of property, plant and equipment and construction in progress
    
    
    (5,513,530
    )
    
    
    (22,686,778
    )Distribution of income from affiliate
    
    
    189,375
    
    
    
    757,320Proceeds from sale of minority interest in subsidiary
    
    
    
    
    
    
    672,136Loan to affiliate
    
    
    
    
    
    
    (800,000
    )Collections of loans receivable
    
    
    781,861
    
    
    
    587,555Net cash used in investing activities
    
    
    (4,542,294
    )
    
    
    (21,469,767
    )Cash flows provided by (used in) financing activitiesDividends paid
    
    
    (2,774,330
    )
    
    
    (2,261,482
    )Net proceeds from issuance of 5.95% bonds
    
    
    
    
    
    
    14,790,180Proceeds from issuance of preferred stock
    
    
    10,519
    
    
    
    18,191Proceeds from exercises of stock options
    
    
    3,535,042
    
    
    
    1,195,707Borrowings under line of credit
    
    
    
    
    
    
    5,659,608Line of credit repayment
    
    
    
    
    
    
    (5,659,608
    )Principal repayments of long term debt
    
    
    (992,968
    )
    
    
    (3,185,203
    )Net cash (used in) provided by financing activities
    
    
    (221,737
    )
    
    
    10,557,393Net increase (decrease) in cash and cash equivalents
    
    
    3,535,226
    
    
    
    (4,642,029
    )Cash and cash equivalents at beginning of period
    
    
    37,310,699
    
    
    
    11,955,589Cash and cash equivalents at end of period
    
    $
    40,845,925
    
    
    $
    7,313,560Interest paid in cash
    
    $
    1,439,245
    
    
    $
    1,110,420Interest received in cash
    
    $
    1,427,375
    
    
    $
    80,051Non-cash investing and financing activitiesNote received for plant facility sold
    
    $
    1,738,000
    
    
    $
    897,000Issuance of 5,714 and 2,135, respectively, common shares for services
rendered
    
    
    144,927
    
    
    
    43,326Issuance of 2,600 and 3,587, respectively, preferred shares for
services rendered
    
    
    47,856
    
    
    
    108,397
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CONSOLIDATED WATER CO. LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 1. Basis of presentation
     2. Accounting policies
 Plant construction revenue and cost of plant construction revenue:
 Basis of consolidation: Consolidated Financial Statements Consolidation of Variable Interest Entities
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3. Stock based compensation
     Weighted AverageRemainingWeighted Average
    
    
    Contractual Life
    
    
    Aggregate IntrinsicOptions
    
    
    Exercise Price
    
    
    (Years)
    
    
    Value (1)Outstanding at beginning of year
    
    
    374,759
    
    
    $
    10.26Granted
    
    
    3,590
    
    
    
    24.41Exercised
    
    
    (357,749
    )
    
    
    9.91Forfeited
    
    
    (1,130
    )
    
    
    19.77Outstanding at September 30, 2007
    
    
    19,470
    
    
    $
    18.89
    
    
    1.94 years
    
    $
    216,618Exercisable at September 30, 2007
    
    
    0
    
    
    $
    
    
    
     years
    
    $
    
 
 (1)
    
    The intrinsic value of a stock option represents the amount by which the fair value of the
underlying stock, measured by reference to the closing price of the ordinary shares of $30.02
in the NASDAQ Global Select Market on September 28, 2007, exceeds the exercise price of the
option.   8




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4. Segment information
  For the Three Months Ended September 30, 2007Retail
    
    
    Bulk
    
    
    Services
    
    
    TotalRevenues
    
    $
    4,668,974
    
    
    $
    5,416,329
    
    
    $
    1,834,160
    
    
    $
    11,919,463Cost of revenues
    
    
    1,785,123
    
    
    
    4,590,947
    
    
    
    1,223,118
    
    
    
    7,599,188Gross profit
    
    
    2,883,851
    
    
    
    825,382
    
    
    
    611,042
    
    
    
    4,320,275General and administrative expenses
    
    
    2,049,009
    
    
    
    336,501
    
    
    
    82,024
    
    
    
    2,467,534Income from operations
    
    
    834,842
    
    
    
    488,881
    
    
    
    529,018
    
    
    
    1,852,741Other income (expense), net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    851,399Income before non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,704,140Income attributable to non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    194,976Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,509,164
 For the Nine Months Ended September 30, 2007Retail
    
    
    Bulk
    
    
    Services
    
    
    TotalRevenues
    
    $
    15,052,499
    
    
    $
    16,016,757
    
    
    $
    5,549,198
    
    
    $
    36,618,454Cost of revenues
    
    
    5,535,055
    
    
    
    13,032,456
    
    
    
    3,943,017
    
    
    
    22,510,528Gross profit
    
    
    9,517,444
    
    
    
    2,984,301
    
    
    
    1,606,181
    
    
    
    14,107,926General and administrative expenses
    
    
    6,145,586
    
    
    
    919,991
    
    
    
    153,211
    
    
    
    7,218,788Income from operations
    
    
    3,371,858
    
    
    
    2,064,310
    
    
    
    1,452,970
    
    
    
    6,889,138Other income (expense), net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,137,799Income before non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,026,937Income attributable to non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    308,755Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    8,718,182As of September 30, 2007:Property plant and equipment, net
    
    $
    21,858,627
    
    
    $
    35,515,586
    
    
    $
    2,333,499
    
    
    $
    59,707,712Construction in progress
    
    
    3,637,027
    
    
    
    787,335
    
    
    
    
    
    
    
    4,424,362Total assets
    
    
    86,831,873
    
    
    
    53,394,081
    
    
    
    5,708,944
    
    
    
    145,934,898
 For the Three Months Ended September 30, 2006Retail
    
    
    Bulk
    
    
    Services
    
    
    TotalRevenues
    
    $
    4,135,562
    
    
    $
    5,128,396
    
    
    $
    746,407
    
    
    $
    10,010,365Cost of revenues
    
    
    1,448,270
    
    
    
    4,346,148
    
    
    
    407,125
    
    
    
    6,201,543Gross profit
    
    
    2,687,292
    
    
    
    782,248
    
    
    
    339,282
    
    
    
    3,808,822General and administrative expenses
    
    
    2,029,674
    
    
    
    245,339
    
    
    
    27,777
    
    
    
    2,302,790Income from operations
    
    
    657,618
    
    
    
    536,909
    
    
    
    311,505
    
    
    
    1,506,032Other income (expense), net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (238,524
    )Income before non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,267,508Income attributable to non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,468Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,247,040
 For the Nine Months Ended September 30, 2006Retail
    
    
    Bulk
    
    
    Services
    
    
    TotalRevenues
    
    $
    14,053,539
    
    
    $
    13,193,179
    
    
    $
    1,634,187
    
    
    $
    28,880,905Cost of revenues
    
    
    5,024,372
    
    
    
    10,196,103
    
    
    
    668,773
    
    
    
    15,889,248Gross profit
    
    
    9,029,167
    
    
    
    2,997,076
    
    
    
    965,414
    
    
    
    12,991,657General and administrative expenses
    
    
    5,686,907
    
    
    
    826,018
    
    
    
    71,990
    
    
    
    6,584,915Income from operations
    
    
    3,342,260
    
    
    
    2,171,058
    
    
    
    893,424
    
    
    
    6,406,742Other income (expense), net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    475,847Income before non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,882,589Income attributable to non-controlling and minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,510Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    6,847,079As of September 30, 2006:Property plant and equipment, net
    
    $
    20,799,462
    
    
    $
    36,429,552
    
    
    $
    2,632,759
    
    
    $
    59,861,773Construction in progress
    
    
    880,318
    
    
    
    1,045,073
    
    
    
    197,864
    
    
    
    2,123,255Total assets
    
    
    53,396,323
    
    
    
    49,589,822
    
    
    
    6,247,361
    
    
    
    109,233,506
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5. Earnings per share
   Three Months Ended September 30,
    
    
    Nine Months Ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    2,509,164
    
    
    $
    1,247,040
    
    
    $
    8,718,182
    
    
    $
    6,847,079Less:Dividends declared and earnings attributable to preferred shares
    
    
    (3,479
    )
    
    
    (4,367
    )
    
    
    (5,178
    )
    
    
    (5,091
    )Net income available to holders of common shares in the
determination of basic and diluted earnings per share
    
    $
    2,505,685
    
    
    $
    1,242,673
    
    
    $
    8,713,004
    
    
    $
    6,841,988Weighted average number of common shares used in the
determination of basic earnings per common share
    
    
    14,495,546
    
    
    
    12,394,582
    
    
    
    14,370,522
    
    
    
    12,387,980Plus:Weighted average number of preferred shares outstanding during
the period
    
    
    21,418
    
    
    
    25,970
    
    
    
    23,083
    
    
    
    29,692Potential dilutive effect of unexercised options
    
    
    13,155
    
    
    
    236,165
    
    
    
    84,644
    
    
    
    284,780Weighted average number of common shares used in the
determination of diluted earnings per common share
    
    
    14,530,119
    
    
    
    12,656,717
    
    
    
    14,478,249
    
    
    
    12,702,452
 6. Consolidated Water (Bermuda) Limited
    10




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7. Impact of recent accounting pronouncements
 Fair Value Measurements
 The Fair Value Option for Financial Assets and
Financial Liabilities
 8. Investment in and loan to affiliate
  September 30,
    
    
    December 31,2007
    
    
    2006Equity investment
    
    $
    14,064,080
    
    
    $
    12,457,880Loan receivable  plant construction
    
    
    2,875,000
    
    
    
    3,000,000$
    16,939,080
    
    
    $
    15,457,880
 Baughers Bay plant:
    11




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OC-BVI
  Bar Bay plant:
  12




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9. Litigation
  10. Commitments
 Frank Sound Contract
  13




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ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Cautionary Note Regarding Forward-Looking Statements
     Recent Developments
 Frank Sound Contract
  Critical Accounting Policies
  Use of estimates:
 Trade accounts receivable:
 14




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##### Table of Contents



Property, plant and equipment:
 Buildings
    
    5 to 40 yearsPlant and equipment
    
    4 to 40 yearsDistribution system
    
    3 to 40 yearsOffice furniture, fixtures and equipment
    
    3 to 10 yearsVehicles
    
    3 to 10 yearsLeasehold improvements
    
    Lesser of 5 years or operating lease termLab equipment
    
    5 to 10 years
  Construction in progress:
 Goodwill and other intangible assets:
 Revenue and cost of sales:
   Plant construction revenue and cost of plant construction revenue:
 15




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Consolidation: Consolidated Financial Statements Consolidation of Variable Interest Entities
 RESULTS OF OPERATIONS
 
 Three Months Ended September 30, 2007 Compared to Three Months Ended September 30, 2006
 Consolidated Results
     Results by Segment
 Retail Segment:
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Bulk Segment:
     Services Segment:
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Nine Months Ended September 30, 2007 Compared to Nine Months Ended September 30, 2006
 Consolidated Results
     Results by Segment
 Retail Segment:
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Bulk Segment:
       Services Segment:
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LIQUIDITY AND CAPITAL RESOURCES
 Overview
     Cash Flows for the Nine Months Ended September 30, 2007
  Cash Flows from Operating Activities
  Cash Flows used in Investing Activities
  Cash Flows from Financing Activities
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Financial Position
    Borrowings Outstanding
  5.95% Secured Bonds
    Consolidated Water (Bahamas) Limited (CW-Bahamas) Series A Bonds
  CW-Bahamas Credit Facility
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Material Commitments, Expenditures and Contingencies
 OC-BVI Contract Dispute
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Bar Bay plant
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Tynes Bay, Bermuda Project
   Consolidated Water (Bahamas) Performance Bonds
  Frank Sound plant
  Dividends
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Dividend Reinvestment and Common Stock Purchase Plan
  Impact of Inflation
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Credit Risk
  Interest Rate Risk
  Foreign Exchange Risk
  
 ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Controls
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PART II  OTHER INFORMATION
 
 ITEM 1A. RISK FACTORS
 Our business faces significant risks. These risks include those disclosed in Item 1A of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2006 as supplemented by the additional
risk factors included below. If any of the events or circumstances described in the referenced
risks actually occur, our business, financial condition or results of operations could be
materially adversely affected and such events or circumstances could cause our actual results to
differ materially from the results contemplated by the forward-looking statements contained in this
report. These risks should be read in conjunction with the other information set forth in this
Quarterly Report as well as in our Annual Report on Form 10-K for the year ended December 31, 2006
and in our other periodic reports on Form 10-Q and Form 8-K.
 The water supply agreement between the British Virgin Islands Water and Sewerage Department and our
affiliate, OC-BVI, is on a month-to-month basis and could be cancelled or renegotiated on less
favorable terms.
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The British Virgin Islands government has asserted a purported right of ownership of OC-BVIs
Baughers Bay plant. If this right is found to be enforceable and is exercised by the government,
OC-BVI will lose ownership of the Baughers Bay plant.
  If OC-BVI does not obtain a customer to purchase water to be produced at its Bar Bay plant
currently under construction, it may not be able to recover the cost of its investment in the
plant, which could adversely affect its operations and in turn decrease the value of our investment
in OC-BVI.
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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ITEM 6. EXHIBITS
 ExhibitNumber
    
    Exhibit Description31.1
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer of the Company31.2
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer of the Company32.1
    
    Section 1350 Certification of Chief Executive Officer of the Company32.2
    
    Section 1350 Certification of Chief Financial Officer of the Company
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SIGNATURE
  CONSOLIDATED WATER CO. LTD.By:
    /s/ Frederick W. McTaggartFrederick W. McTaggartChief Executive Officer  29