The company will hold a conference call at
First Quarter 2023 Financial Highlights
- Total revenue increased 68% to
$32.9 million . - Retail revenue increased 23% to
$7.8 million . - Bulk revenue increased 22% to
$9.0 million . - Services revenue increased 168% to
$12.7 million . - Manufacturing revenue increased to
$3.4 million . - Net income from continuing operations attributable to company stockholders was
$4.1 million or$0.26 per basic and fully diluted share, up 75% from$2.3 million or$0.15 per basic and diluted share in the same year-ago period. - Paid quarterly cash dividend of
$0.085 per share ($0.34 on an annualized basis). - Cash and cash equivalents totaled
$51.1 million as ofMarch 31, 2023 , up from$50.7 million as ofDecember 31, 2022 .
First Quarter 2023 Operational Highlights
- Volume of water sold in
Grand Cayman retail segment increased 20% primarily due to increased tourist activity onGrand Cayman as tourism in 2022 was lower than historical levels due to the lingering impact of the COVID-19 pandemic. - Acquired remaining 39% interest to become 100% owner of PERC Water, the company’s subsidiary that develops, designs, builds, operates and manages water infrastructure facilities in the
Southwestern U.S. - Recognized
$6.4 million in revenue from PERC Water’s progress on the construction of an$82 million advanced water treatment plant inGoodyear, Arizona . - PERC Water advanced commissioning and startup for
The City of Santa Monica Sustainable Water Infrastructure Project , which is to provide a drought resilient water supply to the city from one of the world’s most advanced water treatment facilities.
Management Commentary
“In Q1, our 68% increase in revenue to
“Now that the pandemic effects have abated, we expect retail water sales to return to normal seasonal patterns, with sales typically lower during periods of higher rainfall and decreased tourism. Historically, these lower sales periods are from May through early November, while peak sales have historically been from December through April.
“$6.4 million of the increase in our services segment revenue in the quarter was due to the progress our PERC Water subsidiary has made on its construction of an
“In January, we acquired the remaining 39% interest in our PERC Water subsidiary which focuses on the development, design, building, operations and management of water infrastructure facilities in the
“PERC’s strong operating performance, revenue growth and synergies with other areas of our business have significantly improved our top and bottom-line results and enhanced shareholder value. Its strong operational presence in the
“During the quarter, PERC continued the commissioning and startup of the
“The revenue we recognized from the design and ongoing construction of the Red Gate desalination plant for the
“We were pleased to see continued year-over-year growth in our manufacturing segment revenue. During the quarter, we saw some relief from supply chain constraints and challenging economic conditions, allowing us to advance more of our order backlog through the manufacturing and billing process.
“Over the last couple of years, we have diversified our manufacturing base in terms of customer concentration and type of products, and we believe this will continue to provide greater consistency in future results. We have also seen some business return from our historically largest manufacturing customer, which had been suspended last year. In all, we expect improved results for our manufacturing business and see continued growth opportunities.
“Looking ahead, we remain very optimistic about our further growth for numerous reasons, including the continued recovery of tourism in
“We also anticipate that the more than
First Quarter 2023 Financial Summary
Revenue for the first quarter of 2023 totaled
Retail revenue increased primarily due to a 20% increase in the volume of water sold, as well as the result of higher energy costs that increased the energy pass-through component of the company’s water rates and a more favorable rate mix.
The increase in bulk segment revenue was due to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates, as well as a 9% increase in the volume of water sold.
The increase in services segment revenue was due to an increase in plant design and construction revenue, with most of the revenue increase resulting from PERC Water’s progress on its contract with
The increase in manufacturing segment revenue was due to increased production activity.
Gross profit for the first quarter of 2023 was
Net income from continuing operations attributable to stockholders for the first quarter of 2023 was
Net income attributable to
Cash and cash equivalents totaled
First Quarter Segment Results
Three Months Ended | |||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | |||||||||||||
Revenue | $ | 7,771,095 | $ | 9,004,373 | $ | 12,721,701 | $ | 3,371,821 | $ | 32,868,990 | |||||||
Cost of revenue | 3,550,794 | 6,243,146 | 10,044,078 | 2,471,890 | 22,309,908 | ||||||||||||
Gross profit | 4,220,301 | 2,761,227 | 2,677,623 | 899,931 | 10,559,082 | ||||||||||||
General and administrative expenses | 4,177,107 | 352,975 | 1,088,672 | 417,908 | 6,036,662 | ||||||||||||
(Loss) gain on asset dispositions and impairments, net | (7,287 | ) | 11,270 | — | 1,933 | 5,916 | |||||||||||
Income from operations | $ | 35,907 | $ | 2,419,522 | $ | 1,588,951 | $ | 483,956 | 4,528,336 | ||||||||
Other income, net | 157,059 | ||||||||||||||||
Income before income taxes | 4,685,395 | ||||||||||||||||
Provision for income taxes | 449,485 | ||||||||||||||||
Net income from continuing operations | 4,235,910 | ||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 163,121 | ||||||||||||||||
Net income from continuing operations attributable to | 4,072,789 | ||||||||||||||||
Net loss from discontinued operations | (259,163 | ) | |||||||||||||||
Net income attributable to | $ | 3,813,626 |
Three Months Ended | ||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | ||||||||||||||
Revenue | $ | 6,313,200 | $ | 7,350,644 | $ | 4,743,820 | $ | 1,150,241 | $ | 19,557,905 | ||||||||
Cost of revenue | 3,053,740 | 4,687,119 | 3,649,180 | 1,022,102 | 12,412,141 | |||||||||||||
Gross profit | 3,259,460 | 2,663,525 | 1,094,640 | 128,139 | 7,145,764 | |||||||||||||
General and administrative expenses | 3,450,406 | 310,303 | 779,974 | 325,434 | 4,866,117 | |||||||||||||
Gain on asset dispositions and impairments, net | — | — | 12,458 | — | 12,458 | |||||||||||||
Income (loss) from operations | $ | (190,946 | ) | $ | 2,353,222 | $ | 327,124 | $ | (197,295 | ) | 2,292,105 | |||||||
Other income, net | 319,727 | |||||||||||||||||
Income before income taxes | 2,611,832 | |||||||||||||||||
Provision for income taxes | 46,273 | |||||||||||||||||
Net income from continuing operations | 2,565,559 | |||||||||||||||||
Income attributable to non-controlling interests | 241,430 | |||||||||||||||||
Net income from continuing operations attributable to | 2,324,129 | |||||||||||||||||
Net loss from discontinued operations | (607,314 | ) | ||||||||||||||||
Net income attributable to | $ | 1,716,815 |
Conference Call
Date:
Time:
Toll-free dial-in number: 1-844-875-6913
International dial-in number: 1-412-317-6709
Conference ID: 2665450
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after
Toll-free replay number: 1-877-344-7529
International replay number: 1-412-317-0088
Replay ID: 2665450
About
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the
Company Contact:
Executive Vice President and CFO
Tel (954) 509-8200
Email Contact
Investor Relations Contact
CMA Investor Relations
Tel (949) 432-7566
Email Contact
Media & ESG Contact:
CMA Media Relations
Tel (949) 432-7572
Email Contact
CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
2023 | 2022 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 51,104,268 | $ | 50,711,751 | |||
Accounts receivable, net | 29,550,063 | 27,046,182 | |||||
Inventory | 9,087,365 | 5,727,842 | |||||
Prepaid expenses and other current assets | 5,245,208 | 5,643,279 | |||||
Contract assets | 6,127,587 | 2,913,722 | |||||
Current assets of discontinued operations | 369,361 | 531,480 | |||||
Total current assets | 101,483,852 | 92,574,256 | |||||
Property, plant and equipment, net | 51,484,484 | 52,529,545 | |||||
Construction in progress | 4,861,263 | 3,705,681 | |||||
Inventory, noncurrent | 4,750,701 | 4,550,987 | |||||
Investment in OC-BVI | 1,292,163 | 1,545,430 | |||||
10,425,013 | 10,425,013 | ||||||
Intangible assets, net | 2,682,222 | 2,818,888 | |||||
Operating lease right-of-use assets | 1,935,737 | 2,058,384 | |||||
Other assets | 1,567,625 | 1,669,377 | |||||
Long-term assets of discontinued operations | 21,129,288 | 21,129,288 | |||||
Total assets | $ | 201,612,348 | $ | 193,006,849 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable, accrued expenses and other current liabilities | $ | 9,798,095 | $ | 8,438,315 | |||
Accounts payable - related parties | — | 403,839 | |||||
Accrued compensation | 2,858,268 | 2,267,583 | |||||
Dividends payable | 1,410,522 | 1,375,403 | |||||
Current maturities of operating leases | 538,281 | 546,851 | |||||
Current portion of long-term debt | 114,964 | 114,964 | |||||
Contract liabilities | 15,499,160 | 8,803,921 | |||||
Deferred revenue | 306,256 | 315,825 | |||||
Current liabilities of discontinued operations | 347,928 | 389,884 | |||||
Total current liabilities | 30,873,474 | 22,656,585 | |||||
Long-term debt, noncurrent | 188,899 | 216,117 | |||||
Deferred tax liabilities | 522,655 | 560,306 | |||||
Noncurrent operating leases | 1,457,466 | 1,590,542 | |||||
Other liabilities | 147,067 | 219,110 | |||||
Total liabilities | 33,189,561 | 25,242,660 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Redeemable preferred stock, | 20,630 | 20,630 | |||||
Class A common stock, | 9,441,625 | 9,193,725 | |||||
Class B common stock, | — | — | |||||
Additional paid-in capital | 90,648,430 | 89,205,159 | |||||
Retained earnings | 63,719,310 | 61,247,699 | |||||
163,829,995 | 159,667,213 | ||||||
Non-controlling interests | 4,592,792 | 8,096,976 | |||||
Total equity | 168,422,787 | 167,764,189 | |||||
Total liabilities and equity | $ | 201,612,348 | $ | 193,006,849 |
CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Revenue | $ | 32,868,990 | $ | 19,557,905 | ||||
Cost of revenue (including purchases from related parties of $- in 2023 and | 22,309,908 | 12,412,141 | ||||||
Gross profit | 10,559,082 | 7,145,764 | ||||||
General and administrative expenses (including purchases from related parties of $- in 2023 and | 6,036,662 | 4,866,117 | ||||||
Gain on asset dispositions and impairments, net | 5,916 | 12,458 | ||||||
Income from operations | 4,528,336 | 2,292,105 | ||||||
Other income (expense): | ||||||||
Interest income | 113,644 | 180,687 | ||||||
Interest expense | (37,844 | ) | (4,081 | ) | ||||
Profit-sharing income from OC-BVI | 14,175 | 10,125 | ||||||
Equity in the earnings of OC-BVI | 35,558 | 31,766 | ||||||
Net gain on put/call options | — | 75,000 | ||||||
Other | 31,526 | 26,230 | ||||||
Other income, net | 157,059 | 319,727 | ||||||
Income before income taxes | 4,685,395 | 2,611,832 | ||||||
Provision for income taxes | 449,485 | 46,273 | ||||||
Net income from continuing operations | 4,235,910 | 2,565,559 | ||||||
Income from continuing operations attributable to non-controlling interests | 163,121 | 241,430 | ||||||
Net income from continuing operations attributable to | 4,072,789 | 2,324,129 | ||||||
Total loss from discontinued operations | (259,163 | ) | (607,314 | ) | ||||
Net income attributable to | $ | 3,813,626 | $ | 1,716,815 | ||||
Basic earnings (loss) per common share attributable to | ||||||||
Continuing operations | $ | 0.26 | $ | 0.15 | ||||
Discontinued operations | (0.02 | ) | (0.04 | ) | ||||
Basic earnings per share | $ | 0.24 | $ | 0.11 | ||||
Diluted earnings (loss) per common share attributable to | ||||||||
Continuing operations | $ | 0.26 | $ | 0.15 | ||||
Discontinued operations | (0.02 | ) | (0.04 | ) | ||||
Diluted earnings per share | $ | 0.24 | $ | 0.11 | ||||
Dividends declared per common and redeemable preferred shares | $ | 0.085 | $ | 0.085 | ||||
Weighted average number of common shares used in the determination of: | ||||||||
Basic earnings per share | 15,723,595 | 15,285,523 | ||||||
Diluted earnings per share | 15,888,028 | 15,435,691 |
Source:
2023 GlobeNewswire, Inc., source