Consolidated Water Q3 2022 Earnings Report
Key Takeaways
Consolidated Water Co. Ltd. reported a strong third quarter with a 53% increase in total revenue, driven by growth in retail, bulk, and services segments. However, net income was impacted by higher general and administrative expenses.
Total revenue increased by 53% to $25.1 million.
Retail revenue increased by 20% to $6.3 million due to increased tourism in the Cayman Islands.
Services revenue increased by 172% to $8.7 million, primarily from the PERC Water project in Goodyear, Arizona.
Net income from continuing operations attributable to company stockholders was $824,000, or $0.05 per share.
Consolidated Water
Consolidated Water
Consolidated Water Revenue by Segment
Forward Guidance
Consolidated Water anticipates continued growth driven by tourism recovery in Grand Cayman, ongoing construction projects, a strong manufacturing backlog, and increased bidding activity in the U.S. and Caribbean.
Positive Outlook
- Continued recovery of tourism in Grand Cayman is expected to boost retail water operations.
- Ongoing construction projects in the U.S. and Grand Cayman will continue to generate revenue.
- The manufacturing backlog of $20 million is expected to be booked as revenue next year.
- Increased project bidding activity in the U.S. and the Caribbean presents new opportunities.
- Major multi-year projects secured this year are expected to positively impact future earnings.
Challenges Ahead
- Visitor numbers to the Cayman Islands remain below pre-COVID-19 levels.
- Supply chain constraints may continue to impact the manufacturing segment.
- Challenging economic conditions could increase costs.
- Unspecified risks detailed in the company's SEC filings could affect future results.
- The outcome of negotiations with the Cayman government regarding a new retail license agreement remains uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income