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Mar 31, 2020
Consolidated Water Q1 2020 Earnings Report
Reported record quarterly revenue due to PERC Water acquisition and increased revenue in retail and manufacturing segments.
Key Takeaways
Consolidated Water Co. Ltd. reported a 22% increase in revenue to $20.7 million for Q1 2020, driven by the acquisition of PERC Water and growth in the retail and manufacturing segments. Net income attributable to Consolidated Water stockholders decreased by 53% to $2.9 million, or $0.19 per share, due to the gain on the sale of discontinued Belize operations in Q1 2019.
Revenue increased 22% to $20.7 million, driven by growth in services, manufacturing, and retail segments, offset by a decrease in the bulk segment.
Net income attributable to Consolidated Water stockholders decreased 53% to $2.9 million or $0.19 per fully diluted share.
Gross profit increased 21% to $8.4 million.
Cash and cash equivalents totaled $32.3 million as of March 31, 2020.
Revenue by Segment
Forward Guidance
Consolidated Water is concerned about the impact of the COVID-19 pandemic on the world economy and its business but remains optimistic about the future. They will remain vigilant and responsive to any challenges that may arise as this global pandemic plays out and will continue their mission of addressing water resource challenges. This includes continuing to actively evaluate acquisition targets in North America that would expand their geographic footprint and diversify their revenue streams.
Challenges Ahead
- Travel interruptions and resulting decline in tourism will likely adversely affect our retail water business on Grand Cayman.
- Our revenue from bulk water supply contracts with government entities is not as directly affected by a short-term decline in tourism but could be adversely impacted over the longer term by continued weakness in the economies of the Cayman Islands and The Bahamas.
- The COVID-19 pandemic has already drastically slowed the economies of these countries.
- While our U.S.-based businesses are not affected by tourism, these businesses could be adversely affected by a decline in the U.S. and world economies or supply chain interruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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