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Sep 30, 2022
Consolidated Water Q3 2022 Earnings Report
Revenue increased significantly due to growth across multiple segments, but net income was affected by higher G&A expenses.
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
Revenue by Segment
Retail Revenue
CapyFin.comServices Revenue
CapyFin.comManufacturing Revenue
CapyFin.com 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