2023 Financial Highlights
- Total revenue up 92% to
$180.2 million . - Retail revenue up 16% to
$30.2 million . - Bulk revenue increased 5% to
$34.6 million . - Services revenue increased 240% to
$98.0 million , with recurring services revenue generated from operations and maintenance contracts up 37% to$19.4 million . - Manufacturing revenue increased 177% to
$17.5 million . - Net income from continuing operations attributable to company stockholders was
$30.7 million or$1.93 per diluted share, as compared to$8.2 million or$0.54 per diluted share in 2022. - Cash and cash equivalents totaled
$42.6 million and working capital was$88.8 million as ofDecember 31, 2023 .
2023 Operational Highlights
- Recognized
$64.0 million in revenue on the construction of a$81 million water treatment plant inGoodyear, Arizona , being completed by our subsidiary,PERC Water Corporation (PERC). The project was certified substantially complete inJanuary 2024 and the remaining work on the plant will be completed byJune 2024 . - Volume of retail water sold increased 15%, primarily due to the greater return of tourist activity in
Grand Cayman . - Began construction of a new 2.6 million gallon per day Red Gate desalination plant in
Grand Cayman , and recognized total design and construction revenue of$8.2 million in 2023. - Began piloting, design and permitting for a
$204 million project to design, construct, operate and maintain a seawater desalination plant inHawaii announced inJune 2023 . - Acquired remaining 39% interest of PERC to become the 100% owner of the company’s subsidiary that designs, constructs, operates and manages water infrastructure facilities in the
Southwestern U.S. - Acquired
Ramey Environmental Compliance (REC) in the fourth quarter, creating a new channel for PERC to expand its presence in water-stressed regions inColorado .
Dividend Increase
In
Management Commentary
“In 2023, our strong revenue and earnings growth made it the best-performing year ever for Consolidated Water,” stated company CEO,
“In fact, revenue was up across all four of our business segments, with total gross profit doubling to
“Over the past year, we have seen tourism recover and water use increase for our
“Our operating results in 2023 benefited from an extraordinary level of design and construction revenue from the
“The sustained robust operational performance and revenue expansion of our PERC subsidiary has continued to bolster our top and bottom lines. Given its strong operational footprint in the
“In our
“We see opportunities to grow our US-based O&M business as well as our design-build business by building upon our successes this past year. Bidding activity for O&M contracts and design-build projects— particularly in
“Our strong 2023 results certainly set the bar higher in terms of our future growth outlook. However, we remain optimistic about our growth prospects. Our exceptional operational performance over the past several years has reaffirmed our belief that our highly efficient and aesthetically pleasing treatment plant designs, world-class operating and maintenance capabilities, and our innovative project delivery models are superior to our competitors.”
2023 Financial Summary
Revenue totaled
Retail revenue increased primarily due to a 15% increase in the volume of water sold. The volume of water sold in the Cayman Water license area increased by 14% and the remaining 1% increase in the volume of water sold was due to sales by
The increase in bulk segment revenue was due to an increase of 6% in the volume of water sold by CW-Bahamas and higher energy costs, which increased 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 566% 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 full year of 2023 was
Net income from continuing operations attributable to stockholders for the full year of 2023 was
Net income attributable to
Cash and cash equivalents totaled
Full Year Segment Results
Year Ended | |||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | |||||||||||||
Revenue | $ | 30,158,051 | $ | 34,595,058 | $ | 97,966,650 | $ | 17,491,474 | $ | 180,211,233 | |||||||
Cost of revenue | 13,891,229 | 24,128,132 | 66,797,762 | 13,467,005 | 118,284,128 | ||||||||||||
Gross profit | 16,266,822 | 10,466,926 | 31,168,888 | 4,024,469 | 61,927,105 | ||||||||||||
General and administrative expenses | 16,905,010 | 1,737,264 | 4,271,808 | 1,838,284 | 24,752,366 | ||||||||||||
Gain (loss) on asset dispositions and impairments, net | (22,065 | ) | 12,720 | — | 2,233 | (7,112 | ) | ||||||||||
Income (loss) from operations | $ | (660,253 | ) | $ | 8,742,382 | $ | 26,897,080 | $ | 2,188,418 | 37,167,627 | |||||||
Other income, net | 828,313 | ||||||||||||||||
Income before income taxes | 37,995,940 | ||||||||||||||||
Provision for income taxes | 6,750,014 | ||||||||||||||||
Net income from continuing operations | 31,245,926 | ||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 573,791 | ||||||||||||||||
Net income from continuing operations attributable to | 30,672,135 | ||||||||||||||||
Loss from discontinued operations | (1,086,744 | ) | |||||||||||||||
Net income attributable to | $ | 29,585,391 | |||||||||||||||
Year Ended | ||||||||||||||||||
Retail | Bulk | Services | Manufacturing | Total | ||||||||||||||
Revenue | $ | 25,954,013 | $ | 32,991,066 | $ | 28,835,428 | $ | 6,324,465 | $ | 94,104,972 | ||||||||
Cost of revenue | 12,548,763 | 23,032,212 | 22,973,634 | 5,195,240 | 63,749,849 | |||||||||||||
Gross profit | 13,405,250 | 9,958,854 | 5,861,794 | 1,129,225 | 30,355,123 | |||||||||||||
General and administrative expenses | 14,552,866 | 1,570,732 | 3,461,294 | 1,485,342 | 21,070,234 | |||||||||||||
Gain (loss) on asset dispositions and impairments, net | (39,397 | ) | 5,607 | 23,717 | (2,631 | ) | (12,704 | ) | ||||||||||
Income (loss) from operations | $ | (1,187,013 | ) | $ | 8,393,729 | $ | 2,424,217 | $ | (358,748 | ) | 9,272,185 | |||||||
Other income, net | 464,810 | |||||||||||||||||
Income before income taxes | 9,736,995 | |||||||||||||||||
Provision for income taxes | 396,739 | |||||||||||||||||
Net income from continuing operations | 9,340,256 | |||||||||||||||||
Income from continuing operations attributable to non-controlling interests | 1,112,913 | |||||||||||||||||
Net income from continuing operations attributable to | 8,227,343 | |||||||||||||||||
Loss from discontinued operations | (2,371,049 | ) | ||||||||||||||||
Net income attributable to | $ | 5,856,294 | ||||||||||||||||
Revenue earned by major geographic region was:
Year ended | ||||||
2023 | 2022 | |||||
$ | 41,728,340 | $ | 30,375,985 | |||
The | 31,221,633 | 29,943,615 | ||||
106,768,621 | 33,338,466 | |||||
Revenue earned from management services agreement with OC-BVI | 492,639 | 446,906 | ||||
$ | 180,211,233 | $ | 94,104,972 | |||
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: 6785971
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.
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International replay number: 1-412-317-0088
Replay ID: 6785971
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
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CMA Media Relations
Tel (949) 432-7572
Email Contact
CONSOLIDATED WATER CO. LTD.
CONSOLIDATED BALANCE SHEETS
2023 | 2022 | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 42,621,898 | $ | 50,711,751 | ||
Accounts receivable, net | 38,226,891 | 27,046,182 | ||||
Inventory | 6,044,642 | 5,727,842 | ||||
Prepaid expenses and other current assets | 4,056,370 | 5,643,279 | ||||
Contract assets | 21,553,057 | 2,913,722 | ||||
Current assets of discontinued operations | 211,517 | 531,480 | ||||
Total current assets | 112,714,375 | 92,574,256 | ||||
Property, plant and equipment, net | 55,882,521 | 52,529,545 | ||||
Construction in progress | 495,471 | 3,705,681 | ||||
Inventory, noncurrent | 5,045,771 | 4,550,987 | ||||
Investment in OC-BVI | 1,412,158 | 1,545,430 | ||||
12,861,404 | 10,425,013 | |||||
Intangible assets, net | 3,353,185 | 2,818,888 | ||||
Operating lease right-of-use assets | 2,135,446 | 2,058,384 | ||||
Other assets | 3,407,973 | 1,669,377 | ||||
Long-term assets of discontinued operations | 21,129,288 | 21,129,288 | ||||
Total assets | $ | 218,437,592 | $ | 193,006,849 | ||
LIABILITIES AND EQUITY | ||||||
Current liabilities | ||||||
Accounts payable, accrued expenses and other current liabilities | $ | 11,604,369 | $ | 8,438,315 | ||
Accounts payable - related parties | — | 403,839 | ||||
Accrued compensation | 3,160,030 | 2,267,583 | ||||
Dividends payable | 1,572,655 | 1,375,403 | ||||
Current maturities of operating leases | 456,865 | 546,851 | ||||
Current portion of long-term debt | 192,034 | 114,964 | ||||
Contract liabilities | 6,237,011 | 8,803,921 | ||||
Deferred revenue | 317,017 | 315,825 | ||||
Current liabilities of discontinued operations | 364,665 | 389,884 | ||||
Total current liabilities | 23,904,646 | 22,656,585 | ||||
Long-term debt, noncurrent | 191,190 | 216,117 | ||||
Deferred tax liabilities | 530,780 | 560,306 | ||||
Noncurrent operating leases | 1,827,302 | 1,590,542 | ||||
Other liabilities | 153,000 | 219,110 | ||||
Long-term liabilities of discontinued operations | — | — | ||||
Total liabilities | 26,606,918 | 25,242,660 | ||||
Commitments and contingencies | ||||||
Equity | ||||||
Redeemable preferred stock, | 26,578 | 20,630 | ||||
Class A common stock, | 9,462,927 | 9,193,725 | ||||
Class B common stock, | — | — | ||||
Additional paid-in capital | 92,188,887 | 89,205,159 | ||||
Retained earnings | 85,148,820 | 61,247,699 | ||||
186,827,212 | 159,667,213 | |||||
Non-controlling interests | 5,003,462 | 8,096,976 | ||||
Total equity | 191,830,674 | 167,764,189 | ||||
Total liabilities and equity | $ | 218,437,592 | $ | 193,006,849 | ||
CONSOLIDATED WATER CO. LTD.
CONSOLIDATED STATEMENTS OF INCOME
Year Ended | ||||||||
2023 | 2022 | |||||||
Revenue | $ | 180,211,233 | $ | 94,104,972 | ||||
Cost of revenue (including related party expense of | 118,284,128 | 63,749,849 | ||||||
Gross profit | 61,927,105 | 30,355,123 | ||||||
General and administrative expenses (including related party expense of | 24,752,366 | 21,070,234 | ||||||
Loss on asset dispositions and impairments, net | (7,112 | ) | (12,704 | ) | ||||
Income from operations | 37,167,627 | 9,272,185 | ||||||
Other income (expense): | ||||||||
Interest income | 696,408 | 447,186 | ||||||
Interest expense | (145,284 | ) | (46,545 | ) | ||||
Profit-sharing income from OC-BVI | 46,575 | 26,325 | ||||||
Equity in the earnings of OC-BVI | 123,153 | 75,900 | ||||||
Loss on put/call options | — | (128,000 | ) | |||||
Other | 107,461 | 89,944 | ||||||
Other income, net | 828,313 | 464,810 | ||||||
Income before income taxes | 37,995,940 | 9,736,995 | ||||||
Provision for income taxes | 6,750,014 | 396,739 | ||||||
Net income from continuing operations | 31,245,926 | 9,340,256 | ||||||
Income from continuing operations attributable to non-controlling interests | 573,791 | 1,112,913 | ||||||
Net income from continuing operations attributable to | 30,672,135 | 8,227,343 | ||||||
Loss from discontinued operations | (1,086,744 | ) | (2,371,049 | ) | ||||
Net income attributable to | $ | 29,585,391 | $ | 5,856,294 | ||||
Basic earnings (loss) per common share attributable to | ||||||||
Continuing operations | $ | 1.95 | $ | 0.54 | ||||
Discontinued operations | (0.07 | ) | (0.16 | ) | ||||
Basic earnings per share | $ | 1.88 | $ | 0.38 | ||||
Diluted earnings (loss) per common share attributable to | ||||||||
Continuing operations | $ | 1.93 | $ | 0.54 | ||||
Discontinued operations | (0.07 | ) | (0.16 | ) | ||||
Diluted earnings per share | $ | 1.86 | $ | 0.38 | ||||
Dividends declared per common and redeemable preferred shares | $ | 0.36 | $ | 0.34 | ||||
Weighted average number of common shares used in the determination of: | ||||||||
Basic earnings per share | 15,739,056 | 15,290,509 | ||||||
Diluted earnings per share | 15,865,897 | 15,401,653 |
Source:
2024 GlobeNewswire, Inc., source