Loading...
•
Dec 31, 2020
Consolidated Water Q4 2020 Earnings Report
Consolidated Water's revenue increased, and net income was reported despite challenges from the global pandemic.
Key Takeaways
Consolidated Water Co. Ltd. reported a 6% increase in revenue to $72.6 million for the year 2020. The company's net income was $8.6 million, or $0.56 per diluted share. Cash and cash equivalents totaled $43.8 million as of December 31, 2020.
Revenue increased 6% to a record $72.6 million.
Services segment revenue increased to $12.9 million, with $12.5 million of the revenue due to acquiring a 51% controlling interest in PERC Water in October 2019.
Services segment gross profit was $3.2 million versus $0.5 million in 2019.
Net income from continuing operations attributable to stockholders was $8.6 million or $0.56 per diluted share.
Revenue by Segment
Forward Guidance
Consolidated Water plans to continue expanding its business through organic growth, acquisitions, and new projects, as they further develop and broaden their water solution offerings.
Positive Outlook
- PERC's strong performance, including the expansion of its recurring revenue stream from operating and maintenance contracts, to continue in 2021.
- Conditions in the design-build market are also improving and that project activity will increase significantly in 2021, which should prove quite positive for our PERC business.
- Aerex has been awarded two contracts to manufacture equipment for municipal water treatment projects in Florida.
- Aerex is presently also targeting three additional potential manufacturing projects in Florida.
- Seeing some new opportunities for bidding on seawater desalination projects in the Caribbean.
Challenges Ahead
- The pandemic has adversely effected the finances of many communities across our service areas and they are increasingly looking for innovative public-private partnership arrangements to address their water challenges.
- Aerex’s largest customer informed us last October that it expects to suspend its purchases until the first quarter of 2022 due to inventory management related factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...