The company will hold a conference call at
Third Quarter 2023 Financial Highlights
- Total revenue increased 99% to
$49.9 million . - Retail revenue increased 15% to
$7.2 million . - Services revenue increased 237% to
$29.4 million , with recurring services revenue generated from operations and maintenance contracts up 48% to$5.0 million . - Manufacturing revenue increased to
$4.7 million . - Net income from continuing operations attributable to company stockholders was
$8.8 million or$0.55 per diluted share, as compared to$0.8 million or$0.05 per 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
$48.8 million and working capital was$83.1 million as ofSeptember 30, 2023 .
Third Quarter 2023 Operational Highlights
- Received notice to proceed on the first phase of a
$204 million project to design, build, operate and maintain a seawater desalination plant inHawaii which was announced in June. - Volume of water sold in the company’s
Grand Cayman retail segment increased 16%, primarily due to the greater return of tourist activity. - Recognized
$20.0 million in revenue from PERC Water’s progress on the construction of a$82 million water treatment plant inGoodyear, Arizona . This contract is expected to be substantially completed by the end of the second quarter of 2024. - PERC commenced operations under a new contract to operate a wastewater treatment plant at the
Edwards Air Force Base inKern County, California . The annual contract began in July and has four one-year extensions exercisable by the customer. Revenue for the first year of the contract is expected to total approximately$1.3 million . - PERC also began operations under a new contract to operate a wastewater treatment system for the City of Avalon on
Catalina Island ,California . The engagement began in July and will continue for 18 months, with extensions exercisable by the city. Revenue for the first 18 months of the contract is estimated at approximately$2.1 million . - Rang the Nasdaq Opening Bell on
August 14 in commemoration of the company’s founding inAugust 1973 by a group of visionary Caymanian and international investors and to celebrate 50 years of delivering world-class water services.
Dividend Increase
In
Management Commentary
“In Q3, we reported another solid quarter of results for both revenue and earnings,” stated
“Retail benefited from a 16% increase in the volume of water sold in
“The
“Progress in the design and construction of the new Red Gate desalination plant on
“We believe this entrance into the
“PERC’s continued strong operating performance and revenue growth has continued to significantly improve our top and bottom line. Its strong operational presence in the
“We expanded our footprint in the
“In addition to strong synergies in culture and mission, REC expands our operational presence to a new growth area in the
“Looking ahead, we continue to remain optimistic about our future growth prospects. We are encouraged by the continued recovery of tourism to
Third Quarter 2023 Financial Summary
Revenue for the third quarter of 2023 totaled
Retail revenue increased primarily due to a 16% 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 was partially offset by a decrease of
The increase in services segment revenue was due to an increase in plant construction revenue. The company recognized approximately
The increase in manufacturing segment revenue was due to increased production activity.
Gross profit for the third quarter of 2023 was
Net income from continuing operations attributable to stockholders for the third quarter of 2023 was
Net income attributable to
Cash and cash equivalents totaled
First Nine Months 2023 Financial Summary
Revenue for the first nine months of 2023 was
Retail revenue increased primarily due to a 17% increase in the volume of water sold. The volume of water sold in the Cayman Water license area increased by 15% and the remaining 2% increase in the volume of water sold was due to water sales made by
The retail revenue increased also as a result of higher energy costs that increased the energy pass-through component of the company’s retail water rates, as well as a more favorable rate mix.
The increase in bulk segment revenue was due to an increase of 8% in the volume of water sold by CW-Bahamas.
The increase in services segment revenue was due to an increase in plant construction revenue. The company recognized approximately
The increase in manufacturing segment revenue was due to higher project activity.
Gross profit for the first nine months of 2023 was
Net income from continuing operations attributable to stockholders for the first nine months of 2023 was
Net income attributable to
Third Quarter Segment Results
Three Months Ended | ||||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | ||||||||||||||||
Revenue | $ | 7,216,574 | $ | 8,488,615 | $ | 29,427,664 | $ | 4,721,222 | $ | 49,854,075 | ||||||||||
Cost of revenue | 3,371,891 | 5,835,837 | 20,174,645 | 3,857,274 | 33,239,647 | |||||||||||||||
Gross profit | 3,844,683 | 2,652,778 | 9,253,019 | 863,948 | 16,614,428 | |||||||||||||||
General and administrative expenses | 4,225,825 | 347,668 | 861,835 | 437,162 | 5,872,490 | |||||||||||||||
Income (loss) from operations | $ | (381,142 | ) | $ | 2,305,110 | $ | 8,391,184 | $ | 426,786 | 10,741,938 | ||||||||||
Other income, net | 236,066 | |||||||||||||||||||
Income before income taxes | 10,978,004 | |||||||||||||||||||
Provision for income taxes | 1,976,453 | |||||||||||||||||||
Net income from continuing operations | 9,001,551 | |||||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 163,428 | |||||||||||||||||||
Net income from continuing operations attributable to | 8,838,123 | |||||||||||||||||||
Net loss from discontinued operations | (232,994 | ) | ||||||||||||||||||
Net income attributable to | $ | 8,605,129 |
Three Months Ended | ||||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | ||||||||||||||||
Revenue | $ | 6,274,650 | $ | 8,667,931 | $ | 8,731,124 | $ | 1,378,000 | $ | 25,051,705 | ||||||||||
Cost of revenue | 3,231,973 | 6,446,549 | 7,333,982 | 1,195,428 | 18,207,932 | |||||||||||||||
Gross profit | 3,042,677 | 2,221,382 | 1,397,142 | 182,572 | 6,843,773 | |||||||||||||||
General and administrative expenses | 3,818,459 | 473,534 | 936,708 | 381,949 | 5,610,650 | |||||||||||||||
Gain on asset dispositions and impairments, net | 1,499 | 2,000 | — | — | 3,499 | |||||||||||||||
Income (loss) from operations | $ | (774,283 | ) | $ | 1,749,848 | $ | 460,434 | $ | (199,377 | ) | 1,236,622 | |||||||||
Other expense, net | (168,980 | ) | ||||||||||||||||||
Income before income taxes | 1,067,642 | |||||||||||||||||||
Provision for income taxes | 26,616 | |||||||||||||||||||
Net income from continuing operations | 1,041,026 | |||||||||||||||||||
Income attributable to non-controlling interests | 217,415 | |||||||||||||||||||
Net income from continuing operations attributable to | 823,611 | |||||||||||||||||||
Net loss from discontinued operations | (505,917 | ) | ||||||||||||||||||
Net income attributable to | $ | 317,694 | ||||||||||||||||||
First Nine Months Segment Results
Nine Months Ended | ||||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | ||||||||||||||||
Revenue | $ | 22,560,998 | $ | 25,975,483 | $ | 66,243,328 | $ | 12,180,519 | $ | 126,960,328 | ||||||||||
Cost of revenue | 10,355,817 | 18,010,718 | 46,466,864 | 9,489,870 | 84,323,269 | |||||||||||||||
Gross profit | 12,205,181 | 7,964,765 | 19,776,464 | 2,690,649 | 42,637,059 | |||||||||||||||
General and administrative expenses | 12,668,467 | 1,080,543 | 2,855,067 | 1,289,990 | 17,894,067 | |||||||||||||||
Gain (loss) on asset dispositions and impairments, net | (7,287 | ) | 12,270 | — | 1,933 | 6,916 | ||||||||||||||
Income (loss) from operations | $ | (470,573 | ) | $ | 6,896,492 | $ | 16,921,397 | $ | 1,402,592 | 24,749,908 | ||||||||||
Other income, net | 522,256 | |||||||||||||||||||
Income before income taxes | 25,272,164 | |||||||||||||||||||
Provision for income taxes | 4,366,005 | |||||||||||||||||||
Net income from continuing operations | 20,906,159 | |||||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 463,775 | |||||||||||||||||||
Net income from continuing operations attributable to | 20,442,384 | |||||||||||||||||||
Net loss from discontinued operations | (699,858 | ) | ||||||||||||||||||
Net income attributable to | $ | 19,742,526 |
Nine Months Ended | ||||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | ||||||||||||||||
Revenue | $ | 19,114,653 | $ | 24,442,324 | $ | 18,530,427 | $ | 3,589,333 | $ | 65,676,737 | ||||||||||
Cost of revenue | 9,404,124 | 16,781,251 | 14,849,029 | 3,177,299 | 44,211,703 | |||||||||||||||
Gross profit | 9,710,529 | 7,661,073 | 3,681,398 | 412,034 | 21,465,034 | |||||||||||||||
General and administrative expenses | 10,613,975 | 1,187,909 | 2,554,721 | 1,046,853 | 15,403,458 | |||||||||||||||
Gain on asset dispositions and impairments, net | 2,699 | 2,000 | 16,538 | — | 21,237 | |||||||||||||||
Income (loss) from operations | $ | (900,747 | ) | $ | 6,475,164 | $ | 1,143,215 | $ | (634,819 | ) | 6,082,813 | |||||||||
Other income, net | 548,729 | |||||||||||||||||||
Income before income taxes | 6,631,542 | |||||||||||||||||||
Provision for income taxes | 83,041 | |||||||||||||||||||
Net income from continuing operations | 6,548,501 | |||||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 691,042 | |||||||||||||||||||
Net income from continuing operations attributable to | 5,857,459 | |||||||||||||||||||
Net loss from discontinued operations | (1,533,064 | ) | ||||||||||||||||||
Net income attributable to | $ | 4,324,395 |
Conference Call
Date:
Time:
Toll-free dial-in number: 1-844-875-6913
International dial-in number: 1-412-317-6709
Conference ID: 6524542
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: 6524542
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 www.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 | ||||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 48,845,606 | $ | 50,711,751 | ||||
Accounts receivable, net | 38,114,847 | 27,046,182 | ||||||
Inventory | 7,915,456 | 5,727,842 | ||||||
Prepaid expenses and other current assets | 5,430,079 | 5,643,279 | ||||||
Contract assets | 8,972,740 | 2,913,722 | ||||||
Current assets of discontinued operations | 298,591 | 531,480 | ||||||
Total current assets | 109,577,319 | 92,574,256 | ||||||
Property, plant and equipment, net | 50,063,524 | 52,529,545 | ||||||
Construction in progress | 6,446,049 | 3,705,681 | ||||||
Inventory, noncurrent | 5,048,222 | 4,550,987 | ||||||
Investment in OC-BVI | 1,388,917 | 1,545,430 | ||||||
10,425,013 | 10,425,013 | |||||||
Intangible assets, net | 2,408,888 | 2,818,888 | ||||||
Operating lease right-of-use assets | 1,720,637 | 2,058,384 | ||||||
Other assets | 3,389,634 | 1,669,377 | ||||||
Long-term assets of discontinued operations | 21,129,288 | 21,129,288 | ||||||
Total assets | $ | 211,597,491 | $ | 193,006,849 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 11,436,484 | $ | 8,438,315 | ||||
Accounts payable - related parties | — | 403,839 | ||||||
Accrued compensation | 2,697,033 | 2,267,583 | ||||||
Dividends payable | 1,570,319 | 1,375,403 | ||||||
Current maturities of operating leases | 471,506 | 546,851 | ||||||
Current portion of long-term debt | 114,964 | 114,964 | ||||||
Contract liabilities | 9,528,749 | 8,803,921 | ||||||
Deferred revenue | 391,558 | 315,825 | ||||||
Current liabilities of discontinued operations | 259,853 | 389,884 | ||||||
Total current liabilities | 26,470,466 | 22,656,585 | ||||||
Long-term debt, noncurrent | 133,770 | 216,117 | ||||||
Deferred tax liabilities | 466,285 | 560,306 | ||||||
Noncurrent operating leases | 1,481,005 | 1,590,542 | ||||||
Other liabilities | 153,000 | 219,110 | ||||||
Total liabilities | 28,704,526 | 25,242,660 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Redeemable preferred stock, | 27,125 | 20,630 | ||||||
Class A common stock, | 9,447,931 | 9,193,725 | ||||||
Class B common stock, | — | — | ||||||
Additional paid-in capital | 91,716,763 | 89,205,159 | ||||||
Retained earnings | 76,807,700 | 61,247,699 | ||||||
177,999,519 | 159,667,213 | |||||||
Non-controlling interests | 4,893,446 | 8,096,976 | ||||||
Total equity | 182,892,965 | 167,764,189 | ||||||
Total liabilities and equity | $ | 211,597,491 | $ | 193,006,849 |
CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 49,854,075 | $ | 25,051,705 | $ | 126,960,328 | $ | 65,676,737 | ||||||||
Cost of revenue (including related party expense of | 33,239,647 | 18,207,932 | 84,323,269 | 44,211,703 | ||||||||||||
Gross profit | 16,614,428 | 6,843,773 | 42,637,059 | 21,465,034 | ||||||||||||
General and administrative expenses (including related party expense of | 5,872,490 | 5,610,650 | 17,894,067 | 15,403,458 | ||||||||||||
Gain on asset dispositions and impairments, net | — | 3,499 | 6,916 | 21,237 | ||||||||||||
Income from operations | 10,741,938 | 1,236,622 | 24,749,908 | 6,082,813 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 196,567 | 56,701 | 396,348 | 348,304 | ||||||||||||
Interest expense | (34,020 | ) | (2,042 | ) | (108,111 | ) | (8,847 | ) | ||||||||
Profit-sharing income from OC-BVI | 12,150 | 6,075 | 38,475 | 24,300 | ||||||||||||
Equity in the earnings of OC-BVI | 37,182 | 19,921 | 108,012 | 71,238 | ||||||||||||
Net gain (loss) on put/call options | — | (247,000 | ) | — | 29,000 | |||||||||||
Other | 24,187 | (2,635 | ) | 87,532 | 84,734 | |||||||||||
Other income (expense), net | 236,066 | (168,980 | ) | 522,256 | 548,729 | |||||||||||
Income before income taxes | 10,978,004 | 1,067,642 | 25,272,164 | 6,631,542 | ||||||||||||
Provision for income taxes | 1,976,453 | 26,616 | 4,366,005 | 83,041 | ||||||||||||
Net income from continuing operations | 9,001,551 | 1,041,026 | 20,906,159 | 6,548,501 | ||||||||||||
Income from continuing operations attributable to non-controlling interests | 163,428 | 217,415 | 463,775 | 691,042 | ||||||||||||
Net income from continuing operations attributable to | 8,838,123 | 823,611 | 20,442,384 | 5,857,459 | ||||||||||||
Total loss from discontinued operations | (232,994 | ) | (505,917 | ) | (699,858 | ) | (1,533,064 | ) | ||||||||
Net income attributable to | $ | 8,605,129 | $ | 317,694 | $ | 19,742,526 | $ | 4,324,395 | ||||||||
Basic earnings (loss) per common share attributable to | ||||||||||||||||
Continuing operations | $ | 0.56 | $ | 0.05 | $ | 1.30 | $ | 0.38 | ||||||||
Discontinued operations | (0.01 | ) | (0.03 | ) | (0.05 | ) | (0.10 | ) | ||||||||
Basic earnings per share | $ | 0.55 | $ | 0.02 | $ | 1.25 | $ | 0.28 | ||||||||
Diluted earnings (loss) per common share attributable to | ||||||||||||||||
Continuing operations | $ | 0.55 | $ | 0.05 | $ | 1.28 | $ | 0.38 | ||||||||
Discontinued operations | (0.01 | ) | (0.03 | ) | (0.04 | ) | (0.10 | ) | ||||||||
Diluted earnings per share | $ | 0.54 | $ | 0.02 | $ | 1.24 | $ | 0.28 | ||||||||
Dividends declared per common and redeemable preferred shares | $ | 0.095 | $ | 0.085 | $ | 0.265 | $ | 0.255 | ||||||||
Weighted average number of common shares used in the determination of: | ||||||||||||||||
Basic earnings per share | 15,742,854 | 15,290,597 | 15,734,234 | 15,287,233 | ||||||||||||
Diluted earnings per share | 15,928,604 | 15,450,276 | 15,909,725 | 15,440,261 |
Source:
2023 GlobeNewswire, Inc., source