GEORGE TOWN, Cayman Islands,
May 10, 2018 /PRNewswire/ --
Consolidated Water Co. Ltd. (NASDAQ: CWCO), a leading developer and
operator of seawater desalination plants, reported financial and
operating results for its first quarter ended March 31, 2018.
Management Commentary
President and CEO Rick McTaggart
commented: "Our core desalination business in the first quarter of
2018 remained consistent and in line with our expectations. A
highlight was the strong performance of our Bulk segment, which
experienced a 7% sales increase year-over-year due to higher
volumes and energy pass-through charges in the Bahamas. Revenues in our Retail segment
remained stable year-on-year as slightly higher sales volumes were
offset by a shift in the sales mix to larger customers in
Grand Cayman with a lower
effective water rate.
"The timing of order bookings and the allocation of a portion of
our manufacturing capacity to internal component production
resulted in lower first quarter comparisons in our manufacturing
segment. Our manufacturing operations produced approximately
$700,000 worth of components for the
refurbishment of our Bahamas Windsor plant. This project and the
expansion of our Governor's Harbour plant in Grand Cayman resulted in higher capital
expenditures in the first quarter but will lead to improved
efficiencies for these plants," Mr. McTaggart noted.
First Quarter 2018 Financial Results
Total revenues for the first quarter of 2018 were $15.3 million, compared to $15.7 million in the first quarter of 2017. Gross
profit amounted to $6.6 million,
compared to $6.8 million in the year
ago quarter. Inclusive of $0.7
million Rosarito-related
expenses, net income attributable to Consolidated Water
stockholders was $2.1 million, or
$0.14 per fully diluted share,
compared to $2.6 million, or
$0.18 per fully diluted share,
reported in last year's first quarter.
Net cash provided by operating activities was $0.7 million, a significant improvement when
compared to last year's $0.7 million
of negative operating cash flow. Capital expenditures amounted to
$2.9 million. Cash and cash
equivalents were $43.7 million as of
March 31, 2018.
Segment Results
|
|
Three Months Ended
March 31, 2018 (Unaudited)
|
|
|
|
Retail
|
|
|
Bulk
|
|
|
Services
|
|
|
Manufacturing
|
|
|
Total
|
|
Revenues
|
|
$
|
6,431,348
|
|
|
$
|
8,228,515
|
|
|
$
|
123,764
|
|
|
$
|
552,768
|
|
|
$
|
15,336,395
|
|
Cost of
revenues
|
|
|
2,761,554
|
|
|
|
5,396,591
|
|
|
|
134,871
|
|
|
|
438,861
|
|
|
|
8,731,877
|
|
Gross profit
(loss)
|
|
$
|
3,669,794
|
|
|
$
|
2,831,924
|
|
|
$
|
(11,107)
|
|
|
$
|
113,907
|
|
|
$
|
6,604,518
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017 (Unaudited)
|
|
|
|
Retail
|
|
|
Bulk
|
|
|
Services
|
|
|
Manufacturing
|
|
|
Total
|
|
Revenues
|
|
$
|
6,476,604
|
|
|
$
|
7,690,402
|
|
|
$
|
130,252
|
|
|
$
|
1,379,848
|
|
|
$
|
15,677,106
|
|
Cost of
revenues
|
|
|
2,684,286
|
|
|
|
5,015,789
|
|
|
|
102,166
|
|
|
|
1,041,297
|
|
|
|
8,843,538
|
|
Gross
profit
|
|
$
|
3,792,318
|
|
|
$
|
2,674,613
|
|
|
$
|
28,086
|
|
|
$
|
338,551
|
|
|
$
|
6,833,568
|
|
Summary and Outlook
"Our first quarter laid the groundwork for successes to come in
the remainder of 2018.
- The financial results from our core retail and bulk operations
will continue to provide a solid foundation for other initiatives,
and our capital expenditures in 2018 for these businesses will
ensure their ongoing efficiency and reliability.
- Our manufacturing segment is anticipated to experience
year-over-year revenue growth for the remainder of the year due to
a significant pickup in orders during the first quarter from both
existing and new customers.
- We will continue our progress with respect to the Rosarito project. In the first quarter, we
executed a subscription agreement for the equity funding of
Rosarito with SUEZ, a global
leader in water treatment, and Greenfield, an affiliate of a
leading U.S. asset management firm. The aggregate funding to be
provided in the form of equity and subordinated shareholder loans
is presently estimated at approximately 20% of the total cost of
Phase 1 of the Project. NSC expects to generate a portion of its
funding for AdR through the sale to AdR of the land it has
purchased for the Project. Going forward, we expect to complete the
negotiation and execution of the debt financing agreements and be
able to obtain all outstanding permits from the federal, state and
municipal authorities.
"Given our strong balance sheet and cash position supporting our
growth opportunities and dividend payments, our capital allocation
priorities remain the same," Mr. McTaggart concluded.
Investor Conference Call
The Company will host a conference call at 11:00 a.m. Eastern Time (EDT) on Friday, May 11, 2018 to review the Company's
operating results for the first quarter of 2018, 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. EDT on
Friday, May 11, 2018.
A replay of the conference call will be available one hour
after the call through Friday, May 18,
2018 at 9:00 a.m. EDT by
dialing 877-344-7529 (international participants dial 412-317-0088)
and entering the conference ID #10120185.
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, AdvisIRy Partners:
Lynn Morgen: (212) 223-4147
lynn.morgen@advisiry.com
Eric Prouty: (212) 750-5800
eric.prouty@advisiry.com
Viktoriia Nakhla: (646) 625-4800
vicky.nakhla@advisiry.com
(Financial Highlights Follow)
CONSOLIDATED WATER
CO. LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
43,680,866
|
|
|
$
|
47,182,966
|
|
Accounts receivable,
net
|
|
|
17,840,028
|
|
|
|
15,047,846
|
|
Inventory
|
|
|
1,745,594
|
|
|
|
1,744,445
|
|
Prepaid expenses and
other current assets
|
|
|
950,232
|
|
|
|
1,077,257
|
|
Current portion of
loans receivable
|
|
|
1,423,308
|
|
|
|
1,400,448
|
|
Costs and estimated
earnings in excess of billings
|
|
|
199,018
|
|
|
|
238,435
|
|
Total current
assets
|
|
|
65,839,046
|
|
|
|
66,691,397
|
|
Property, plant and
equipment, net
|
|
|
49,519,137
|
|
|
|
50,525,064
|
|
Construction in
progress
|
|
|
5,230,707
|
|
|
|
1,823,284
|
|
Inventory,
non-current
|
|
|
4,800,005
|
|
|
|
4,758,973
|
|
Loans
receivable
|
|
|
370,465
|
|
|
|
734,980
|
|
Investment in
OC-BVI
|
|
|
2,892,825
|
|
|
|
2,783,882
|
|
Goodwill
|
|
|
8,384,248
|
|
|
|
8,384,248
|
|
Land held for
development
|
|
|
20,558,424
|
|
|
|
20,558,424
|
|
Intangible assets,
net
|
|
|
3,413,886
|
|
|
|
3,765,434
|
|
Other
assets
|
|
|
4,905,152
|
|
|
|
5,455,209
|
|
Total
assets
|
|
$
|
165,913,895
|
|
|
$
|
165,480,895
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
other current liabilities
|
|
$
|
5,637,338
|
|
|
$
|
5,662,448
|
|
Dividends
payable
|
|
|
1,285,031
|
|
|
|
1,281,612
|
|
Note payable to
related party
|
|
|
294,000
|
|
|
|
686,000
|
|
Billings in excess of
costs and estimated earnings
|
|
|
-
|
|
|
|
1,258
|
|
Total current
liabilities
|
|
|
7,216,369
|
|
|
|
7,631,318
|
|
Deferred tax
liability
|
|
|
928,876
|
|
|
|
1,024,893
|
|
Other
liabilities
|
|
|
803,307
|
|
|
|
803,307
|
|
Total
liabilities
|
|
|
8,948,552
|
|
|
|
9,459,518
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Consolidated Water
Co. Ltd. stockholders' equity
|
|
|
|
|
|
|
|
|
Redeemable preferred
stock, $0.60 par value. Authorized 200,000 shares; issued and
outstanding 33,034 and 33,488 shares, respectively
|
|
|
19,820
|
|
|
|
20,093
|
|
Class A common stock,
$0.60 par value. Authorized 24,655,000 shares; issued and
outstanding 14,959,309 and 14,918,869 shares,
respectively
|
|
|
8,975,585
|
|
|
|
8,951,321
|
|
Class B common stock,
$0.60 par value. Authorized 145,000 shares; none issued
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
86,543,291
|
|
|
|
86,405,387
|
|
Retained
earnings
|
|
|
53,921,760
|
|
|
|
53,105,196
|
|
Cumulative
translation adjustment
|
|
|
(549,555)
|
|
|
|
(549,555)
|
|
Total Consolidated
Water Co. Ltd. stockholders' equity
|
|
|
148,910,901
|
|
|
|
147,932,442
|
|
Non-controlling
interests
|
|
|
8,054,442
|
|
|
|
8,088,935
|
|
Total
equity
|
|
|
156,965,343
|
|
|
|
156,021,377
|
|
Total liabilities
and equity
|
|
$
|
165,913,895
|
|
|
$
|
165,480,895
|
|
CONSOLIDATED WATER
CO. LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
|
|
2017
|
|
Retail
revenues
|
|
$
|
6,431,348
|
|
|
$
|
6,476,604
|
|
Bulk
revenues
|
|
|
8,228,515
|
|
|
|
7,690,402
|
|
Services
revenues
|
|
|
123,764
|
|
|
|
130,252
|
|
Manufacturing
revenues
|
|
|
552,768
|
|
|
|
1,379,848
|
|
Total
revenues
|
|
|
15,336,395
|
|
|
|
15,677,106
|
|
|
|
|
|
|
|
|
|
|
Cost of retail
revenues
|
|
|
2,761,554
|
|
|
|
2,684,286
|
|
Cost of bulk
revenues
|
|
|
5,396,591
|
|
|
|
5,015,789
|
|
Cost of services
revenues
|
|
|
134,871
|
|
|
|
102,166
|
|
Cost of manufacturing
revenues
|
|
|
438,861
|
|
|
|
1,041,297
|
|
Total cost of
revenues
|
|
|
8,731,877
|
|
|
|
8,843,538
|
|
Gross
profit
|
|
|
6,604,518
|
|
|
|
6,833,568
|
|
General and
administrative expenses
|
|
|
4,767,444
|
|
|
|
4,797,192
|
|
Loss (gain) on asset
dispositions and impairments, net
|
|
|
1,340
|
|
|
|
(9,627)
|
|
Income from
operations
|
|
|
1,835,734
|
|
|
|
2,046,003
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
161,121
|
|
|
|
122,191
|
|
Interest
expense
|
|
|
(1,754)
|
|
|
|
(2,223)
|
|
Profit sharing income
from OC-BVI
|
|
|
28,350
|
|
|
|
10,125
|
|
Equity in the
earnings of OC-BVI
|
|
|
80,593
|
|
|
|
26,866
|
|
Net unrealized gain
(loss) on put/call options
|
|
|
(206,000)
|
|
|
|
165,000
|
|
Other
|
|
|
82,600
|
|
|
|
71,793
|
|
Other income,
net
|
|
|
144,910
|
|
|
|
393,752
|
|
Income before
income taxes
|
|
|
1,980,644
|
|
|
|
2,439,755
|
|
Provision for
(benefit from) income taxes
|
|
|
(77,388)
|
|
|
|
(139,697)
|
|
Net
income
|
|
|
2,058,032
|
|
|
|
2,579,452
|
|
Income (loss)
attributable to non-controlling interests
|
|
|
(34,493)
|
|
|
|
(51,776)
|
|
Net
income attributable to Consolidated Water Co. Ltd.
stockholders
|
|
$
|
2,092,525
|
|
|
$
|
2,631,228
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share attributable to Consolidated Water Co. Ltd. common
stockholders
|
|
$
|
0.14
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share attributable to Consolidated Water Co. Ltd.
common stockholders
|
|
$
|
0.14
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.085
|
|
|
$
|
0.075
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in the determination
of:
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
14,959,259
|
|
|
|
14,871,862
|
|
Diluted earnings per
share
|
|
|
15,114,477
|
|
|
|
15,035,219
|
|
View original
content:http://www.prnewswire.com/news-releases/consolidated-water-co-ltd-reports-first-quarter-2018-results-300646747.html
SOURCE Consolidated Water Co. Ltd.