Consolidated Water Q2 2020 Earnings Report
Key Takeaways
Consolidated Water Co. Ltd. reported a 4% increase in revenue to $19.1 million for Q2 2020. However, the company experienced a net loss attributable to Consolidated Water stockholders of $1.1 million, or $(0.07) per basic and fully diluted share, compared to a net income of $2.5 million, or $0.16 per share, in the year-ago quarter. The decrease was due to a $3.0 million loss on asset dispositions and impairments.
Revenue in the second quarter increased 4% to $19.1 million.
Net loss attributable to Consolidated Water stockholders for the second quarter of 2020 was $1.1 million or $(0.07) per basic and fully diluted share.
Cash and cash equivalents totaled $35.0 million as of June 30, 2020.
Services segment revenue was up by more than $3.3 million due to the contribution from PERC Water.
Consolidated Water
Consolidated Water
Consolidated Water Revenue by Segment
Forward Guidance
Consolidated Water is focused on maintaining stable and profitable operations, as well as pursuing growth opportunities, particularly through its PERC Water subsidiary.
Positive Outlook
- Core water production and distribution and manufacturing operations remained stable and profitable.
- Financial condition and liquidity remain strong.
- PERC Water performing better than anticipated.
- PERC was awarded two new contracts and secured four contract renewals.
- Consolidated Water continues to be well positioned to successfully navigate these uncertain and turbulent times.
Challenges Ahead
- Reduced production levels due to the impact of the COVID-19 pandemic.
- Temporary cessation of tourism on Grand Cayman resulting from the closing of all Cayman Islands airports and seaports in March 2020.
- Lower energy costs in the Bahamas decreased the energy pass-through component of the company’s rates.
- Decrease in the number of active projects in manufacturing.
- Loss on asset dispositions and impairments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income