GEORGE TOWN, Cayman Islands,
Nov. 9, 2017 /PRNewswire/ --
Consolidated Water Co. Ltd. (NASDAQ: CWCO), a leading developer and
operator of seawater desalination plants, reported financial and
operating results for the third quarter ended September 30, 2017.
Management Commentary
President and CEO Rick McTaggart
commented, "Third quarter results reflected positive year-over-year
comparisons across all key financial metrics. Such results
were led by an increase in manufacturing revenues due to an
increase in the average value of manufacturing orders and were
supported by the continued steady performance of our core
desalination operations."
"Although our affiliate company OC-BVI sustained some
hurricane-related damage to its facilities in the British Virgin Islands, the impact of OC-BVI
on our financial results for the quarter was not material. We are
proud of the tremendous response from our BVI employees, who have
worked tirelessly to minimize disruptions in the water supply and
assist in the recovery efforts."
"Our third quarter results continued to reflect our investment
in the large Rosarito project.
This project represents a major milestone for the company, on which
construction is now expected to commence in 2018 instead of this
year as previously predicted. It is important to recognize that
this is a complex project that is inherently subject to some
unanticipated delays, as it encompasses various governmental,
regulatory and financial initiatives that involve not only us but
other stakeholders in the project. We remain confident about the
completion of these initiatives as well as the merits of the
project and its future positive impacts on our shareholder
value."
Third Quarter 2017 Financial Results
Total revenues for the 2017 third quarter were $16.6 million, $2.2
million higher than the $14.4
million reported in last year's third quarter due to
increases in retail, bulk, and manufacturing segment revenues,
which more than offset a slight decline in services revenues. Gross
profit increased 6.6% to $6.3 million
from $5.9 million. Net income
attributable to Consolidated Water stockholders was $1.2 million, or $0.08 per fully diluted share, inclusive of
$864,000 in operating expenses
related to the Rosarito
desalination plant. This represents a substantial improvement from
the $1.9 million net loss that was
reported in the comparable 2016 quarter, inclusive of $606,000 of Rosarito project-related expenses. During the
quarter the Company incurred a net loss of $569,000 or $0.04
per share related to Bali, a
market which the Company has announced it will exit.
Nine Months 2017 Financial Results
Total revenues for the first nine months of 2017 were
$47.5 million, an increase of
$3.7 million from the $43.8 million reported in last year's comparable
period. Gross profit was up 4.9% to $19.6
million from $18.7 million.
Net income attributable to Consolidated Water stockholders was
$4.4 million, or $0.29 per fully diluted share, an increase of
84.5% from the $2.4 million, or
$0.16 per fully diluted share, earned
in the similar year-ago period.
Net cash provided by operating activities for the nine months
ended September 30, 2017 was
$11.7 million, well ahead of last
year's $4.5 million. Year-to-date
capital expenditures were $3.0
million. Cash and cash equivalents increased to $46.8 million as of September 30, 2017.
Segment Results
Three Months Ended
September 30, 2017 (Unaudited)
|
|
Retail
|
Bulk
|
Services
|
Manufacturing
|
Revenues
|
$5,570,654
|
$7,881,464
|
$111,302
|
$3,008,783
|
Cost of
revenues
|
2,488,441
|
5,582,401
|
114,667
|
2,078,888
|
Gross
profit
|
3,082,213
|
2,299,063
|
(3,365)
|
929,895
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016 (Unaudited)
|
|
Retail
|
Bulk
|
Services
|
Manufacturing
|
Revenues
|
$5,447,200
|
$7,429,732
|
125,929
|
$1,382,492
|
Cost of
revenues
|
2,464,841
|
4,922,162
|
168,577
|
910,450
|
Gross
profit
|
2,982,359
|
2,507,570
|
(42,648)
|
472,042
|
Summary and Outlook
"Our core desalination business continues to provide stable,
positive results, and we see incremental growth opportunities in
this business as commercial development continues in the
Cayman Islands and the
Bahamas. This quarter's
improvement in our manufacturing business was significant, and we
anticipate an increasing backlog for this business," noted Mr.
McTaggart.
"We continue to work diligently to achieve financing for the
Rosarito project in anticipation
of receiving final governmental and financing approvals. To date we
have invested over $22.8 million in
assets for the project and a cumulative $22.6 million in development expenses. Our
balance sheet remains very strong with a healthy cash position at
the end of the third quarter, and we have returned $3.3 million to shareholders year-to-date in the
form of cash dividends," concluded Mr. McTaggart.
Investor Conference Call
The Company will host a conference call at 11:00 a.m. Eastern Time (EST) on Friday, November 10, 2017 to review the Company's
operating results for the third quarter of 2017, along with other
relevant topics of interest. Shareholders and other interested
parties may participate in the conference call by dialing
844-875-6913 (international participants dial 412-317-6709) and
requesting participation in the "Consolidated Water Company Call" a
few minutes before 11:00 a.m. EST on
Friday, November 10, 2017.
A replay of the conference call will be available one hour
after the call through Friday, November 17,
2017 at 9:00 a.m. EST by
dialing 877-344-7529 (international participants dial 412-317-0088)
and entering the conference ID # 10114039.
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates seawater
desalination plants and water distribution systems in areas of the
world where naturally occurring supplies of potable water are
scarce. The Company operates water production and/or distribution
facilities in the Cayman Islands,
Belize, the British Virgin Islands, The Commonwealth of The Bahamas, and
Bali, Indonesia. The Company also
manufactures and services a wide range of products and provides
design, engineering, management, operating and other services
applicable to commercial and municipal water production, supply and
treatment, and industrial water and wastewater treatment in
the United States.
Consolidated Water Co. Ltd. is headquartered in George Town, Grand Cayman, in the Cayman Islands. The Company's ordinary
(common) stock is traded on the NASDAQ Global Select Market under
the symbol "CWCO". Additional information on the Company is
available on its website at http://www.cwco.com.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe", "estimate", "project", "intend", "expect", "should" or
similar expressions. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
continued acceptance of the Company's products and services in the
marketplace, changes in its relationships with the governments of
the jurisdictions in which it operates, the outcome of its
negotiations with the Cayman government regarding a new retail
license agreement, its ability to successfully secure contracts for
water projects, including the project under development in
Baja California, Mexico, its
ability to develop and operate such projects profitably, and its
ability to manage growth and other risks detailed in the Company's
periodic report filings with the Securities and Exchange Commission
("SEC").
By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release.
For further information, please contact our investor
relations firm, MBS Value Partners:
Lynn Morgen: (212) 223 4147
lynn.morgen@mbsvalue.com
Eric Prouty: (646) 456 9539
eric.prouty@mbsvalue.com
Viktoriia Nakhla: (646) 625-4800
viktoriia.nakhla@mbsvalue.com
(Financial Highlights Follow)
CONSOLIDATED WATER
CO. LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
46,976,764
|
|
|
$
|
39,254,116
|
|
Accounts receivable,
net
|
|
|
13,007,883
|
|
|
|
16,500,798
|
|
Inventory
|
|
|
2,291,082
|
|
|
|
2,305,879
|
|
Prepaid expenses and
other current assets
|
|
|
2,430,570
|
|
|
|
1,096,200
|
|
Current portion of
loans receivable
|
|
|
1,377,956
|
|
|
|
1,633,588
|
|
Costs and estimated
earnings in excess of billings
|
|
|
1,673,460
|
|
|
|
85,211
|
|
Total current
assets
|
|
|
67,757,715
|
|
|
|
60,875,792
|
|
Property, plant and
equipment, net
|
|
|
50,759,258
|
|
|
|
53,084,105
|
|
Construction in
progress
|
|
|
1,433,341
|
|
|
|
885,494
|
|
Inventory,
non-current
|
|
|
4,408,321
|
|
|
|
4,606,088
|
|
Loans
receivable
|
|
|
1,093,641
|
|
|
|
2,135,428
|
|
Investment in
OC-BVI
|
|
|
3,124,910
|
|
|
|
4,086,630
|
|
Intangible assets,
net
|
|
|
4,116,982
|
|
|
|
5,195,476
|
|
Goodwill
|
|
|
9,784,248
|
|
|
|
9,784,248
|
|
Land held for
development
|
|
|
20,558,424
|
|
|
|
20,558,424
|
|
Other
assets
|
|
|
2,803,617
|
|
|
|
2,392,843
|
|
Total
assets
|
|
$
|
165,840,457
|
|
|
$
|
163,604,528
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
other current liabilities
|
|
$
|
5,332,446
|
|
|
$
|
4,898,908
|
|
Dividends
payable
|
|
|
1,189,924
|
|
|
|
1,187,214
|
|
Note payable to
related party
|
|
|
392,000
|
|
|
|
490,000
|
|
Billings in excess of
costs and estimated earnings
|
|
|
294,156
|
|
|
|
102,966
|
|
Total current
liabilities
|
|
|
7,208,526
|
|
|
|
6,679,088
|
|
Deferred tax
liability
|
|
|
1,502,649
|
|
|
|
1,915,241
|
|
Other
liabilities
|
|
|
1,160,307
|
|
|
|
904,827
|
|
Total
liabilities
|
|
|
9,871,482
|
|
|
|
9,499,156
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Consolidated Water
Co. Ltd. stockholders' equity
|
|
|
|
|
|
|
|
|
Redeemable preferred
stock, $0.60 par value. Authorized 200,000 shares; issued and
outstanding
33,974 and 35,225 shares, respectively
|
|
|
20,384
|
|
|
|
21,135
|
|
Class A common stock,
$0.60 par value. Authorized 24,655,000 shares; issued and
outstanding
14,901,711 and 14,871,664 shares, respectively
|
|
|
8,941,027
|
|
|
|
8,922,998
|
|
Class B common stock,
$0.60 par value. Authorized 145,000 shares; none issued
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
86,106,647
|
|
|
|
85,621,033
|
|
Retained
earnings
|
|
|
52,648,399
|
|
|
|
51,589,337
|
|
Cumulative
translation adjustment
|
|
|
(549,555)
|
|
|
|
(549,555)
|
|
Total Consolidated
Water Co. Ltd. stockholders' equity
|
|
|
147,166,902
|
|
|
|
145,604,948
|
|
Non-controlling
interests
|
|
|
8,802,073
|
|
|
|
8,500,424
|
|
Total
equity
|
|
|
155,968,975
|
|
|
|
154,105,372
|
|
Total liabilities
and equity
|
|
$
|
165,840,457
|
|
|
$
|
163,604,528
|
|
CONSOLIDATED WATER
CO. LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Retail
revenues
|
|
$
|
5,570,654
|
|
|
$
|
5,447,200
|
|
|
$
|
18,111,274
|
|
|
$
|
17,710,271
|
|
Bulk
revenues
|
|
|
7,881,464
|
|
|
|
7,429,732
|
|
|
|
23,615,787
|
|
|
|
22,136,086
|
|
Services
revenues
|
|
|
111,302
|
|
|
|
125,929
|
|
|
|
360,758
|
|
|
|
710,576
|
|
Manufacturing
revenues
|
|
|
3,008,783
|
|
|
|
1,382,492
|
|
|
|
5,444,678
|
|
|
|
3,261,827
|
|
Total
revenues
|
|
|
16,572,203
|
|
|
|
14,385,353
|
|
|
|
47,532,497
|
|
|
|
43,818,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of retail
revenues
|
|
|
2,488,441
|
|
|
|
2,464,841
|
|
|
|
7,895,617
|
|
|
|
7,779,831
|
|
Cost of bulk
revenues
|
|
|
5,582,401
|
|
|
|
4,922,162
|
|
|
|
15,750,402
|
|
|
|
14,345,747
|
|
Cost of services
revenues
|
|
|
114,667
|
|
|
|
168,577
|
|
|
|
320,586
|
|
|
|
638,389
|
|
Cost of manufacturing
revenues
|
|
|
2,078,888
|
|
|
|
910,450
|
|
|
|
3,967,945
|
|
|
|
2,366,060
|
|
Total cost of
revenues
|
|
|
10,264,397
|
|
|
|
8,466,030
|
|
|
|
27,934,550
|
|
|
|
25,130,027
|
|
Gross
profit
|
|
|
6,307,806
|
|
|
|
5,919,323
|
|
|
|
19,597,947
|
|
|
|
18,688,733
|
|
General and
administrative expenses
|
|
|
4,896,323
|
|
|
|
4,528,679
|
|
|
|
14,695,184
|
|
|
|
13,925,439
|
|
Impairment loss on
long-lived assets
|
|
|
578,480
|
|
|
|
2,000,000
|
|
|
|
1,578,480
|
|
|
|
2,000,000
|
|
Impairment of
goodwill
|
|
|
-
|
|
|
|
1,750,000
|
|
|
|
-
|
|
|
|
1,750,000
|
|
Income (loss) from
operations
|
|
|
833,003
|
|
|
|
(2,359,356)
|
|
|
|
3,324,283
|
|
|
|
1,013,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
70,741
|
|
|
|
137,806
|
|
|
|
301,813
|
|
|
|
514,532
|
|
Interest
expense
|
|
|
(1,016)
|
|
|
|
(1,246)
|
|
|
|
(11,178)
|
|
|
|
(95,615)
|
|
Profit sharing income
from OC-BVI
|
|
|
36,450
|
|
|
|
38,475
|
|
|
|
46,575
|
|
|
|
87,075
|
|
Equity in the
earnings of OC-BVI
|
|
|
138,913
|
|
|
|
101,301
|
|
|
|
127,955
|
|
|
|
232,523
|
|
Impairment loss on
investment in OC-BVI
|
|
|
-
|
|
|
|
(875,000)
|
|
|
|
-
|
|
|
|
(925,000)
|
|
Net unrealized gain
(loss) on put/call options
|
|
|
171,000
|
|
|
|
(275,000)
|
|
|
|
323,000
|
|
|
|
(275,000)
|
|
Other
|
|
|
31,206
|
|
|
|
110,968
|
|
|
|
83,791
|
|
|
|
507,183
|
|
Other income
(expense), net
|
|
|
447,294
|
|
|
|
(762,696)
|
|
|
|
871,956
|
|
|
|
45,698
|
|
Income (loss)
before income taxes
|
|
|
1,280,297
|
|
|
|
(3,122,052)
|
|
|
|
4,196,239
|
|
|
|
1,058,992
|
|
Provision for
(benefit from) income taxes
|
|
|
(136,447)
|
|
|
|
(146,198)
|
|
|
|
(412,592)
|
|
|
|
(389,860)
|
|
Net income
(loss)
|
|
|
1,416,744
|
|
|
|
(2,975,854)
|
|
|
|
4,608,831
|
|
|
|
1,448,852
|
|
Income (loss)
attributable to non-controlling
interests
|
|
|
255,605
|
|
|
|
(1,110,522)
|
|
|
|
191,916
|
|
|
|
(944,790)
|
|
Net income (loss)
attributable to Consolidated
Water Co. Ltd. stockholders
|
|
$
|
1,161,139
|
|
|
$
|
(1,865,332)
|
|
|
$
|
4,416,915
|
|
|
$
|
2,393,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share attributable to
Consolidated Water Co. Ltd. common stockholders
|
|
$
|
0.08
|
|
|
$
|
(0.13)
|
|
|
$
|
0.30
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share attributable to
Consolidated Water Co. Ltd. common stockholders
|
|
$
|
0.08
|
|
|
$
|
(0.13)
|
|
|
$
|
0.29
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
0.225
|
|
|
$
|
0.225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used
in the determination of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
14,898,246
|
|
|
|
14,815,248
|
|
|
|
14,886,738
|
|
|
|
14,803,216
|
|
Diluted earnings per
share
|
|
|
15,072,142
|
|
|
|
14,852,967
|
|
|
|
15,054,343
|
|
|
|
14,940,635
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View original
content:http://www.prnewswire.com/news-releases/consolidated-water-reports-third-quarter-results-300553394.html
SOURCE Consolidated Water Co. Ltd.