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Sep 30, 2020
Consolidated Water Q3 2020 Earnings Report
Generated substantial revenue growth and returned to profitability from Q2.
Key Takeaways
Consolidated Water Co. Ltd. reported an 11.2% increase in revenue to $17.7 million for Q3 2020, driven by growth in the services and manufacturing segments, which was partially offset by a decrease in the retail and bulk segments. Net income from continuing operations was $1.8 million, or $0.12 per share.
Revenue in the third quarter of 2020 increased 11.2% to $17.7 million.
Net income from continuing operations attributable to Consolidated Water stockholders for the third quarter of 2020 was $1.8 million or $0.12 per basic and fully diluted share.
Cash and cash equivalents totaled $38.2 million as of September 30, 2020.
Q3 topline growth is largely due to the $3.2 million in revenue contributed by PERC Water subsidiary.
Consolidated Water
Consolidated Water
Consolidated Water Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comServices Revenue
CapyFin.comManufacturing Revenue
CapyFin.com Forward Guidance
Company believes that solid financial condition and ample liquidity provides the solid foundation necessary for dealing with the challenges of the current economic environment and is well-positioned to take advantage of opportunities that may arise to address these needs and expand or enhance operations.
Positive Outlook
- Strong balance sheet with $38 million in cash enables us to continue to execute on our growth strategies.
- PERC provides a solid platform upon which to expand to North America our core business of designing, constructing and operating desalination plants.
- Cayman Islands are well positioned to quickly rebound from the economic downturn created by the pandemic once a vaccine is available and regular tourism resumes.
- Addition of PERC has also been highly complementary to our existing business and overall mission, supporting our pursuit of water reuse projects and other emerging opportunities with a comprehensive suite of solutions for improving water infrastructure.
- Bulk water operations in the Cayman Islands and the Bahamas have continued to operate without incident and have been much less affected by the pandemic than our retail business.
Challenges Ahead
- Retail segment experienced a decline in revenue compared to last year, mainly due to the continuing closure of the borders in the Cayman Islands to tourist travel in response to the pandemic, as well as to the much wetter weather conditions in the Cayman Islands during the third quarter.
- Bulk segment revenue that is generated in the Bahamas and the Cayman Islands declined slightly period-over-period largely due to lower energy costs which reduced the energy pass-through charges to our Bahamian customer.
- Net income from services was largely affected by the amortization expense from the acquisition.
- The pandemic has caused unprecedented complications across all industries and companies, and does not appear to be getting any closer to ending.
- Sales in retail business remain lower than normal.
Revenue & Expenses
Visualization of income flow from segment revenue to net income