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Sep 30, 2021
Consolidated Water Q3 2021 Earnings Report
Consolidated Water's Q3 2021 results were reported, revealing a revenue decrease of 7% due to declines in services and manufacturing, partially offset by retail and bulk segment growth.
Key Takeaways
Consolidated Water Co. Ltd. reported a 7% decrease in revenue for the third quarter of 2021, totaling $16.4 million compared to $17.7 million in the same period last year. This decline was attributed to decreases in the services and manufacturing segments, which was partially offset by increases in the retail and bulk segments. Net income attributable to Consolidated Water stockholders was $286,000, or $0.02 per basic and fully diluted share, compared to $1.4 million, or $0.09 per basic and fully diluted share, for the third quarter of 2020.
Retail revenue increased 5% to $5.2 million, while bulk revenue increased 13% to $6.9 million.
Company paid $1.3 million in dividends in Q3 2021.
Cash and cash equivalents totaled $40.4 million as of September 30, 2021.
PERC Water expanded recurring revenues with a five-year wastewater plant maintenance services contract in Southern California.
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 expects manufacturing segment revenue for the second half of 2021 to be about equal to the first half and anticipates PERC's performance for 2022 will exceed this year due to increased bidding activity and project activity in their markets.
Positive Outlook
- Reopening of Cayman Islands borders expected to lead to a return to normalcy for the retail water segment.
- Increased marketing activity to tourists in The Bahamas.
- Strong balance sheet and liquidity enables the company to ride out adverse economic impacts of the pandemic and fund growth initiatives.
- Increase in PERC’s bidding activity and the increased project activity in our markets as potential major catalysts for our growth in 2022 and thereafter.
- Refocusing on the municipal water market, expected to benefit from the federal infrastructure funding bill.
Challenges Ahead
- Manufacturing segment has been adversely affected by supply chain challenges, including material shortages, price increases and logistical delays.
- Certain orders expected to complete in the last half of 2021 have been pushed out to next year.
- Continued cessation of tourism on Grand Cayman due to the global pandemic.
- Manufacturing segment revenue decreased as a result of reduced orders from a major customer.
- Sales volumes for both 2021 and 2020 are significantly below the historical volumes for the retail segment prior to 2020 due to the continuing cessation of tourism on Grand Cayman resulting from border restrictions initiated in March 2020 in response to the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income