The company will hold a conference call at
First Quarter 2024 Financial Highlights
- Total revenue up 21% to
$39.7 million . - Retail revenue up 11% to
$8.6 million . - Services revenue increased 37% to
$17.4 million , with recurring services revenue generated from operations and maintenance contracts up 93% to$7.1 million . - Manufacturing revenue increased 57% to
$5.3 million . - Net income from continuing operations attributable to company stockholders was
$6.9 million or$0.43 per diluted share, as compared to$4.1 million or$0.26 per diluted share in the first quarter of 2023. - Cash and cash equivalents totaled
$46.2 million and working capital was$95.0 million as ofMarch 31, 2024 .
First Quarter 2024 Operational Highlights
- Recognized
$4.9 million in revenue on the construction of a$81 million water treatment plant inGoodyear, Arizona , being completed by the company’s subsidiary,PERC Water Corporation (PERC). The project was certified substantially complete inJanuary 2024 , with the remaining work planned for completion by the end of the second quarter of this year. - Volume of retail water sold in the company’s licensed service area increased 10% to a record 267.6 million gallons.
- Continued construction of a new 2.6 million gallon per day Red Gate desalination plant in
Grand Cayman and received substantial completion from the customer onMay 1st . - Continued piloting, design and permitting for a
$150 million project to design, construct, operate and maintain a seawater desalination plant inHawaii announced in June of last year. - Recognized
$1.8 million in operations and maintenance revenue fromRamey Environmental Compliance, Inc. (REC). REC was acquired by the company inOctober 2023 to create a new channel for expansion of the company’s presence in water-stressed regions inColorado .
Management Commentary
“In Q1, we reported a 21% increase in revenue to
“Our 37% growth in services segment revenue resulted from slightly higher design-build revenue along with a 93% increase in recurring operating and maintenance revenue generated by PERC and our newly acquired subsidiary, REC.
“In the first quarter, we recognized the addition of
“PERC’s strong operating performance and revenue growth continues to significantly improve the results of our services segment and our top and bottom line. Its expanding presence in the
“During the quarter, we continued our site investigation, engineering, permitting and public outreach under our contract to design, construct, operate and maintain a
“We anticipate recognizing significantly more revenue from the
“We also believe our entrance into the
“Looking ahead, we remain very optimistic about our future growth prospects and for many reasons. This includes water sales growth in
“We believe our highly efficient and aesthetically pleasing treatment plant designs, world-class operating and maintenance capabilities, and our innovative project delivery models are all superior to others and therefore provide us with strong competitive advantages. Combined with flourishing markets, we believe this all represents strong drivers for growth, increased profitability, and further strengthening of shareholder value.”
First Quarter 2024 Financial Summary
Revenue totaled
Retail revenue increased primarily due to a 6% increase in the volume of water sold. The volume of water sold in the Cayman Water license area to retail end-user customers increased by 10% due to resident population growth and less rainfall on
The decrease in bulk segment revenue was due to a decrease of 2% in the volume of water sold by CW-Bahamas and lower energy costs, which decreased the energy pass-through component of the company’s bulk water rates.
The increase in services segment revenue was primarily due to plant construction revenue increasing 6% to
Revenue generated under operations and maintenance contracts totaled
The increase in manufacturing segment revenue was due to higher project activity.
Gross profit for the first quarter of 2024 was
Net income from continuing operations attributable to stockholders for the first quarter of 2024 was
Net income attributable to
Cash and cash equivalents totaled
First Quarter Segment Results
Three Months Ended | |||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | |||||||||||||||
Revenue | $ | 8,624,938 | $ | 8,342,094 | $ | 17,417,611 | $ | 5,304,747 | $ | 39,689,390 | |||||||||
Cost of revenue | 3,551,344 | 5,565,258 | 12,668,939 | 4,025,826 | 25,811,367 | ||||||||||||||
Gross profit | 5,073,594 | 2,776,836 | 4,748,672 | 1,278,921 | 13,878,023 | ||||||||||||||
General and administrative expenses | 4,104,332 | 344,141 | 1,597,854 | 517,702 | 6,564,029 | ||||||||||||||
Income from operations | $ | 969,262 | $ | 2,432,695 | $ | 3,150,818 | $ | 761,219 | 7,313,994 | ||||||||||
Other income, net | 418,184 | ||||||||||||||||||
Income before income taxes | 7,732,178 | ||||||||||||||||||
Provision for income taxes | 621,696 | ||||||||||||||||||
Net income from continuing operations | 7,110,482 | ||||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 169,068 | ||||||||||||||||||
Net income from continuing operations attributable to | 6,941,414 | ||||||||||||||||||
Net loss from discontinued operations | (467,066 | ) | |||||||||||||||||
Net income attributable to | $ | 6,474,348 | |||||||||||||||||
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 | ||||||||||||||
Gain (loss) 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 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 | |||||||||||||||||
Annual General Meeting of Shareholders
The company has set
Conference Call
Date:
Time:
Toll-free dial-in number: 1-844-875-6913
International dial-in number: 1-412-317-6709
Conference ID: 6934674
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting with the 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: 6934674
About
The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment. For more information, visit cwco.com.
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 Contact:
CMA Media Relations
Tel (949) 432-7572
Email Contact
CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
2024 | 2023 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 46,177,641 | $ | 42,621,898 | |||
Accounts receivable, net | 41,764,256 | 38,226,891 | |||||
Inventory | 4,181,593 | 6,044,642 | |||||
Prepaid expenses and other current assets | 2,766,319 | 4,056,370 | |||||
Contract assets | 23,340,495 | 21,553,057 | |||||
Current assets of discontinued operations | 542,257 | 211,517 | |||||
Total current assets | 118,772,561 | 112,714,375 | |||||
Property, plant and equipment, net | 54,848,748 | 55,882,521 | |||||
Construction in progress | 819,420 | 495,471 | |||||
Inventory, noncurrent | 5,005,026 | 5,045,771 | |||||
Investment in OC-BVI | 1,262,474 | 1,412,158 | |||||
12,861,404 | 12,861,404 | ||||||
Intangible assets, net | 3,189,092 | 3,353,185 | |||||
Operating lease right-of-use assets | 2,052,610 | 2,135,446 | |||||
Other assets | 3,227,950 | 3,407,973 | |||||
Long-term assets of discontinued operations | 21,126,898 | 21,129,288 | |||||
Total assets | $ | 223,166,183 | $ | 218,437,592 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable, accrued expenses and other current liabilities | $ | 11,148,185 | $ | 11,604,369 | |||
Accrued compensation | 4,337,849 | 3,160,030 | |||||
Dividends payable | 1,578,080 | 1,572,655 | |||||
Current maturities of operating leases | 381,423 | 456,865 | |||||
Current portion of long-term debt | 183,382 | 192,034 | |||||
Contract liabilities | 5,459,342 | 6,237,011 | |||||
Deferred revenue | 261,242 | 317,017 | |||||
Current liabilities of discontinued operations | 453,081 | 364,665 | |||||
Total current liabilities | 23,802,584 | 23,904,646 | |||||
Long-term debt, noncurrent | 149,824 | 191,190 | |||||
Deferred tax liabilities | 83,931 | 530,780 | |||||
Noncurrent operating leases | 1,735,851 | 1,827,302 | |||||
Other liabilities | 153,000 | 153,000 | |||||
Total liabilities | 25,925,190 | 26,606,918 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Redeemable preferred stock, | 26,415 | 26,578 | |||||
Class A common stock, | 9,497,357 | 9,462,927 | |||||
Class B common stock, | — | — | |||||
Additional paid-in capital | 92,431,605 | 92,188,887 | |||||
Retained earnings | 90,113,086 | 85,148,820 | |||||
192,068,463 | 186,827,212 | ||||||
Non-controlling interests | 5,172,530 | 5,003,462 | |||||
Total equity | 197,240,993 | 191,830,674 | |||||
Total liabilities and equity | $ | 223,166,183 | $ | 218,437,592 | |||
CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenue | $ | 39,689,390 | $ | 32,868,990 | |||
Cost of revenue | 25,811,367 | 22,309,908 | |||||
Gross profit | 13,878,023 | 10,559,082 | |||||
General and administrative expenses | 6,564,029 | 6,036,662 | |||||
Gain on asset dispositions and impairments, net | — | 5,916 | |||||
Income from operations | 7,313,994 | 4,528,336 | |||||
Other income (expense): | |||||||
Interest income | 334,142 | 113,644 | |||||
Interest expense | (33,501 | ) | (37,844 | ) | |||
Profit-sharing income from OC-BVI | 20,250 | 14,175 | |||||
Equity in the earnings of OC-BVI | 57,316 | 35,558 | |||||
Other | 39,977 | 31,526 | |||||
Other income, net | 418,184 | 157,059 | |||||
Income before income taxes | 7,732,178 | 4,685,395 | |||||
Provision for income taxes | 621,696 | 449,485 | |||||
Net income from continuing operations | 7,110,482 | 4,235,910 | |||||
Income from continuing operations attributable to non-controlling interests | 169,068 | 163,121 | |||||
Net income from continuing operations attributable to | 6,941,414 | 4,072,789 | |||||
Loss from discontinued operations | (467,066 | ) | (259,163 | ) | |||
Net income attributable to | $ | 6,474,348 | $ | 3,813,626 | |||
Basic earnings (loss) per common share attributable to | |||||||
Continuing operations | $ | 0.44 | $ | 0.26 | |||
Discontinued operations | (0.03 | ) | (0.02 | ) | |||
Basic earnings per share | $ | 0.41 | $ | 0.24 | |||
Diluted earnings (loss) per common share attributable to | |||||||
Continuing operations | $ | 0.43 | $ | 0.26 | |||
Discontinued operations | (0.03 | ) | (0.02 | ) | |||
Diluted earnings per share | $ | 0.40 | $ | 0.24 | |||
Dividends declared per common and redeemable preferred shares | $ | 0.095 | $ | 0.085 | |||
Weighted average number of common shares used in the determination of: | |||||||
Basic earnings per share | 15,828,929 | 15,723,595 | |||||
Diluted earnings per share | 15,984,548 | 15,888,028 | |||||
Source:
2024 GlobeNewswire, Inc., source