NASDAQ:ERII
Energy Recovery
Southwest IDEAS Conference
James Siccardi, VP Investor Relations
November 15, 2023
Forward-Looking Statement
This presentation contains forward-looking statements within the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this report include, but are not limited to, statements about our expectations, objectives, anticipations, plans, hopes, beliefs, intentions, or strategies regarding the future. Forward- looking statements that represent our current expectations about future events are based on assumptions and involve risks and uncertainties. If the risks or uncertainties occur or the assumptions prove incorrect, then our results may differ materially from those set forth or implied by the forward-looking statements. Our forward-looking statements are not guarantees of future performance or events. Words such as "expects," "anticipates," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements.
These forward-looking statements are subject to risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this presentation. All forward-looking statements included in this presentation are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements, as disclosed from time to time in our reports on Forms 10-K,10-Q, and 8-K as well as in our Annual Reports to Stockholders and, if necessary, updated in our quarterly reports on Form 10 Q or in other filings. We assume no obligation to update any such forward-looking statements. It is important to note that our actual results could differ materially from the results set forth or implied by our forward-looking statements.
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Product Revenue1: 2015 - 2023E
Rapid Growth | 16% | Average Product Revenue Growth |
2015-2022 | ||
140
130
120
110
100
90
80
70
60
50
40
$135M
$126M
$104M
$92M
$73M
$58M $61M
$50M
$44M
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023E |
(1) Excludes reported License and Development Revenue 2015 through 2020.
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Operating Margin1: 2015 - 2022
Turnaround in Profitability
30% | |||||||
20% | |||||||
20% | |||||||
10% | 13% | ||||||
0% | 7% | ||||||
-9% | -3% | -6% | -5% | ||||
-10% | |||||||
-20% | |||||||
-29% | |||||||
-30% | |||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
- Calculation excludes reported License and Development Revenue in 2015 through 2020 and the one-time impairment of VorTeq related assets in 2021.
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Other Strong Fundamentals
High Margin
Flexible Balance Sheet
70% | Average Gross Margin |
2022 |
$106M | Cash & Securities and NO |
DEBT1 |
- As of 3Q 2023
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What Is Driving This Value?
The PX Technology Platform
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The PX Pressure Exchanger
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Unique Value Proposition: Reduce Emissions & Save Customers Money
$3.9B
98%+
annual customer energy savings1
product revenue from energy- efficiency related sources
14.5M
30TWh
metric tons emissions avoided annually - roughly equivalent to 3M vehicles1
saved in electricity consumption1
(1) Energy Recovery estimates. Assumes all deployed devices are in operation.
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Our PX Technology Revolutionized the Desalination Industry
1
2
Reduces energy costs by up to 60%
Transfers energy at up to 98% efficiency
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Designed for a 25-year life
Needs no maintenance
Significant Customer Value Proposition Translates into ERII Profitability
70% ERII Gross Margin1
25% Russell 2000 Industrials
(1) 2022 FY Reported Avg. Gross Margin
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PX In Action: Desalination
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Disclaimer
ERI - Energy Recovery Inc. published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 21:33:08 UTC.