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Mar 31, 2022

Consolidated Water Q1 2022 Earnings Report

Consolidated Water's Q1 2022 results showed improvements across retail, bulk, and services segments, with total revenue increasing by 14% and net income from continuing operations at $2.3 million, or $0.15 per share.

Key Takeaways

Consolidated Water Co. Ltd. reported a 14% increase in total revenue to $19.6 million for the first quarter ended March 31, 2022, driven by improvements in the retail, bulk, and services segments. Net income from continuing operations attributable to company stockholders was $2.3 million, or $0.15 per share.

Total revenue increased 14% to $19.6 million.

Retail revenue increased 11% to $6.3 million.

Bulk revenue increased 18% to $7.4 million.

Services revenue increased 34% to $4.7 million.

Total Revenue
$19.6M
Previous year: $17.1M
+14.4%
EPS
$0.15
Previous year: $0.08
+87.5%
Gross Profit
$7.15M
Previous year: $6.13M
+16.6%
Cash and Equivalents
$43.1M
Previous year: $42.8M
+0.8%
Free Cash Flow
$3.89M
Previous year: $793K
+390.9%
Total Assets
$178M
Previous year: $180M
-0.8%

Consolidated Water

Consolidated Water

Consolidated Water Revenue by Segment

Forward Guidance

Consolidated Water is optimistic about the future, planning to expand services revenue in the wastewater reuse market, supported by a strong balance sheet and growing pipeline of potential projects.

Positive Outlook

  • Strong advancements made in other areas of business resulted in an improved first quarter and set the stage for future earnings growth.
  • Return of tourism to the Cayman Islands is encouraging as the country’s COVID-19 reopening plan continues.
  • Experienced an 8% year-over-year increase in water sales in Grand Cayman retail service area during the first quarter of 2022.
  • Bulk segment results in the quarter improved on higher revenues and continued to operate efficiently and stably.
  • Plans to expand services revenue in the wastewater reuse market is supported by a strong balance sheet and growing pipeline of potential projects.

Challenges Ahead

  • Manufacturing segment came in below last year’s levels, largely due to adverse global economic conditions that caused raw material and equipment delivery delays and increased costs.
  • Adverse conditions also resulted in order delays from existing and prospective customers.
  • Global economic conditions caused raw material and equipment delivery delays and increased costs.
  • Order delays from existing and prospective customers.
  • Unspecified risks detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”).

Revenue & Expenses

Visualization of income flow from segment revenue to net income