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Dec 31, 2019
Consolidated Water Q4 2019 Earnings Report
Consolidated Water reported record results with revenue up and net income increased.
Key Takeaways
Consolidated Water reported a record year in 2019, driven by strong progress across its business segments. Revenue increased by 5% to $68.8 million, and net income rose by 8% to $12.2 million. The company saw growth in its retail and manufacturing segments, along with the acquisition of PERC Water expanding its services offerings. Increased cash balances and working capital further strengthened the company's financial position.
Revenue increased 5% to a record $68.8 million.
Net income attributable to stockholders increased 8% to a record $12.2 million, or $0.80 per diluted share.
Gross profit increased 6% to $28.3 million, with gross margin improving to 41.1%.
Cash and cash equivalents totaled $42.9 million as of December 31, 2019.
Consolidated Water
Consolidated Water
Consolidated Water Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comBulk Water Revenue
CapyFin.comServices Revenue
CapyFin.comManufacturing Revenue
CapyFin.com Forward Guidance
The company is concerned about the impact of the COVID-19 virus on the world economy and its business, but remains optimistic about its long-term prospects. They are taking the necessary precautions to help protect their customers and employees, but at this point they do not anticipate a significant impact of COVID-19 on their North American-based business. They are proceeding with the development of their project in Mexico, which they anticipate will be transformative for their company once they complete the financing stage and commence construction.
Positive Outlook
- Company remains optimistic about its long-term prospects.
- No significant impact of COVID-19 on North American-based business is anticipated.
- Manufacturing segment order backlog already exceeds the level at this time last year.
- PERC is pursuing several promising project and management contract opportunities.
- Proceeding with the development of project in Mexico, which is anticipated to be transformative.
Challenges Ahead
- Concerned about the impact of the COVID-19 virus on the world economy and its business.
- Travel interruptions or a temporary decline in tourism would likely adversely affect the desalination business in the Caribbean.
- Vast majority of retail customers are residents and businesses on Grand Cayman who depend on tourism, company may be asked to do its part to help support customers who become economically challenged.
- Bulk water supply contracts with government entities provide for guaranteed minimum monthly payments.
- Situation remains fluid and they are monitoring it closely.
Revenue & Expenses
Visualization of income flow from segment revenue to net income