GEORGE TOWN, Cayman Islands,
Aug. 9, 2018 /PRNewswire/
-- Consolidated Water Co. Ltd. (NASDAQ: CWCO), a leading
developer and operator of seawater desalination plants, reported
financial and operating results for its second quarter ended
June 30, 2018.
Management Commentary
President and CEO Rick McTaggart
commented: "Our core desalination business continued to perform
well in the second quarter, and revenues in our manufacturing
segment nearly doubled on an unconsolidated basis. However, similar
to the first quarter, a portion of our manufacturing segment's
production, equivalent to $1.1
million in the second quarter and $1.8 million year-to-date, was allocated for our
internal use in the refurbishment of our Windsor plant in the
Bahamas and our Governor's Harbor
plant in the Cayman Islands, and
was not recognized as revenue. These internal projects have
obscured the year-over-year improvement in our manufacturing
segment. Looking forward, we expect manufacturing sales to continue
to improve based on orders in hand for the remainder of this
year."
"We made significant progress on our Rosarito project during the second quarter by
achieving several important milestones. Specifically, (i) we signed
an amended public private partnership agreement, which addressed
foreign currency exchange and interest rate adjustment concerns
related to the project; (ii) we obtained additional rights of way
for the project's aqueduct and now have the majority of such rights
of way required for the project; and (iii) we signed the turn-key
engineering, procurement and construction contract with Suez for
the desalination plant and aqueduct. These accomplishments have
moved us forward in line with our expectations for completion of
the conditions of the project," Mr. McTaggart noted.
Second Quarter 2018 Financial Results
Total revenues for the second quarter 2018 were $15.9 million, representing a 3.9% increase from
$15.3 million in the second quarter
of 2017. Gross profit amounted to $6.6
million, compared to $6.5
million in the year ago quarter. Inclusive of $0.7 million in Rosarito-related expenses, net income
attributable to Consolidated Water stockholders was $2.2 million, or $0.14 per fully diluted share, compared to
$0.6 million, or $0.04 per fully diluted share, reported in last
year's comparable quarter. In the second quarter of 2017, the
Company recorded an impairment loss of $1.0
million relating to its Bali operations, however this subsidiary did
not have a material adverse impact on the Company's results of
operations for the second quarter of 2018.
First Half 2018 Financial Results
Total revenues for the first six months of 2018 were
$31.2 million, compared to the
$31.0 million reported in last year's
comparable period. Gross profit was $13.2
million, compared to $13.3
million for the first half of 2017. Net income attributable
to Consolidated Water stockholders was $4.3
million ($0.28 per fully
diluted share), an increase of 31.5% from the $3.3 million ($0.22
per fully diluted share), earned in the first six months of 2017.
Net income and diluted EPS for the first half of 2018 and 2017
included operating expenses of $1.3
million and $1.6 million,
respectively, related to development costs for the Rosarito desalination plant.
Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018 (Unaudited)
|
|
|
Retail
|
|
Bulk
|
|
Services
|
|
Manufacturing
|
|
Total
|
Revenues
|
|
$
|
6,268,023
|
|
$
|
8,488,850
|
|
$
|
122,912
|
|
$
|
992,430
|
|
$
|
15,872,215
|
Cost of
revenues
|
|
|
2,722,650
|
|
|
5,793,704
|
|
|
104,069
|
|
|
655,679
|
|
|
9,276,102
|
Gross
profit
|
|
$
|
3,545,373
|
|
$
|
2,695,146
|
|
$
|
18,843
|
|
$
|
336,751
|
|
$
|
6,596,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2017 (Unaudited)
|
|
|
Retail
|
|
Bulk
|
|
Services
|
|
Manufacturing
|
|
Total
|
Revenues
|
|
$
|
6,064,016
|
|
$
|
8,043,921
|
|
$
|
119,204
|
|
$
|
1,056,047
|
|
$
|
15,283,188
|
Cost of
revenues
|
|
|
2,722,890
|
|
|
5,152,212
|
|
|
103,753
|
|
|
847,760
|
|
|
8,826,615
|
Gross
profit
|
|
$
|
3,341,126
|
|
$
|
2,891,709
|
|
$
|
15,451
|
|
$
|
208,287
|
|
$
|
6,456,573
|
Summary and Outlook
"Our core desalination business continued its steady performance
year-to-date, and the outlook for this business is favorable for
volume increases in the Caribbean,
particularly in the Cayman
Islands, which is experiencing positive tourism industry
trends. Additionally, we continue to expect improved year-over-year
results from our manufacturing operations for the full 2018 fiscal
year."
"We continue to maintain solid forward momentum with respect to
our transformational Rosarito
project, which is envisioned as the largest desalination plant in
the Western Hemisphere. We remain focused on the negotiation and
execution of the debt financing agreements necessary to provide the
funding for the first phase of the project. As a reminder, the
first phase of the project will supply 50 million gallons of water
a day to Mexico, with an
opportunity to expand the plant capacity in the project's second
phase by an additional 50 million gallons per day."
"Our company continues to be very well capitalized, providing us
with the ability to execute on our growth strategy while
simultaneously returning capital to our shareholders in the form of
dividends," Mr. McTaggart concluded.
Investor Conference Call
The Company will host a conference call at 8:30 a.m. Eastern Time (EDT) on Monday, August 13, 2018 to review the Company's
operating results for the second 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 8:30 a.m. EDT on Monday,
August 13, 2018.
A replay of the conference call will be available one hour
after the call through Monday, August 20,
2018 at 8:30 a.m. EDT by
dialing 877-344-7529 (international participants dial 412-317-0088)
and entering the conference ID # 10122958.
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
new water projects including the project under development in
Baja California, Mexico, its
ability to develop and operate such projects profitably, its
ability to renew existing bulk water supply contracts, its ability
to collect its delinquent accounts receivable in the Bahamas, and its ability to manage growth and
other risks detailed in the Company's periodic report filings with
the Securities and Exchange Commission.
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
CONSOLIDATED WATER
CO. LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
34,092,347
|
|
|
$
|
47,182,966
|
|
Accounts
receivable, net
|
|
|
22,161,267
|
|
|
|
15,047,846
|
|
Inventory
|
|
|
2,703,806
|
|
|
|
1,744,445
|
|
Prepaid
expenses and other current assets
|
|
|
1,880,849
|
|
|
|
1,077,257
|
|
Current
portion of loans receivable
|
|
|
1,446,540
|
|
|
|
1,400,448
|
|
Costs and
estimated earnings in excess of billings
|
|
|
844,693
|
|
|
|
238,435
|
|
Total current
assets
|
|
|
63,129,502
|
|
|
|
66,691,397
|
|
Property, plant and
equipment, net
|
|
|
48,476,540
|
|
|
|
50,525,064
|
|
Construction in
progress
|
|
|
11,397,699
|
|
|
|
1,823,284
|
|
Inventory,
non-current
|
|
|
4,706,727
|
|
|
|
4,758,973
|
|
Loans
receivable
|
|
|
-
|
|
|
|
734,980
|
|
Investment in
OC-BVI
|
|
|
2,501,008
|
|
|
|
2,783,882
|
|
Goodwill
|
|
|
8,384,248
|
|
|
|
8,384,248
|
|
Land held for
development
|
|
|
20,642,660
|
|
|
|
20,558,424
|
|
Intangible assets,
net
|
|
|
3,062,337
|
|
|
|
3,765,434
|
|
Other
assets
|
|
|
5,000,103
|
|
|
|
5,455,209
|
|
Total
assets
|
|
$
|
167,300,824
|
|
|
$
|
165,480,895
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable and other current liabilities
|
|
$
|
5,841,427
|
|
|
$
|
5,662,448
|
|
Dividends
payable
|
|
|
1,285,270
|
|
|
|
1,281,612
|
|
Note payable
to related party
|
|
|
294,000
|
|
|
|
686,000
|
|
Billings in
excess of costs and estimated earnings
|
|
|
1,971
|
|
|
|
1,258
|
|
Total current
liabilities
|
|
|
7,422,668
|
|
|
|
7,631,318
|
|
Deferred tax
liability
|
|
|
832,917
|
|
|
|
1,024,893
|
|
Other
liabilities
|
|
|
778,307
|
|
|
|
803,307
|
|
Total
liabilities
|
|
|
9,033,892
|
|
|
|
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 41,033 and 33,488 shares,
respectively
|
|
|
24,620
|
|
|
|
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
|
|
|
86,717,545
|
|
|
|
86,405,387
|
|
Retained
earnings
|
|
|
54,835,603
|
|
|
|
53,105,196
|
|
Cumulative
translation adjustment
|
|
|
(549,555)
|
|
|
|
(549,555)
|
|
Total Consolidated
Water Co. Ltd. stockholders' equity
|
|
|
150,003,798
|
|
|
|
147,932,442
|
|
Non-controlling
interests
|
|
|
8,263,134
|
|
|
|
8,088,935
|
|
Total
equity
|
|
|
158,266,932
|
|
|
|
156,021,377
|
|
Total liabilities
and equity
|
|
$
|
167,300,824
|
|
|
$
|
165,480,895
|
|
CONSOLIDATED WATER
CO. LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Retail
revenues
|
|
$
|
6,268,023
|
|
|
$
|
6,064,016
|
|
|
$
|
12,699,371
|
|
|
$
|
12,540,620
|
|
Bulk
revenues
|
|
|
8,488,850
|
|
|
|
8,043,921
|
|
|
|
16,717,365
|
|
|
|
15,734,323
|
|
Services
revenues
|
|
|
122,912
|
|
|
|
119,204
|
|
|
|
246,676
|
|
|
|
249,456
|
|
Manufacturing
revenues
|
|
|
992,430
|
|
|
|
1,056,047
|
|
|
|
1,545,198
|
|
|
|
2,435,895
|
|
Total
revenues
|
|
|
15,872,215
|
|
|
|
15,283,188
|
|
|
|
31,208,610
|
|
|
|
30,960,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of retail
revenues
|
|
|
2,722,650
|
|
|
|
2,722,890
|
|
|
|
5,484,204
|
|
|
|
5,407,176
|
|
Cost of bulk
revenues
|
|
|
5,793,704
|
|
|
|
5,152,212
|
|
|
|
11,190,295
|
|
|
|
10,168,001
|
|
Cost of services
revenues
|
|
|
104,069
|
|
|
|
103,753
|
|
|
|
238,940
|
|
|
|
205,919
|
|
Cost of manufacturing
revenues
|
|
|
655,679
|
|
|
|
847,760
|
|
|
|
1,094,540
|
|
|
|
1,889,057
|
|
Total cost
of revenues
|
|
|
9,276,102
|
|
|
|
8,826,615
|
|
|
|
18,007,979
|
|
|
|
17,670,153
|
|
Gross
profit
|
|
|
6,596,113
|
|
|
|
6,456,573
|
|
|
|
13,200,631
|
|
|
|
13,290,141
|
|
General and
administrative expenses
|
|
|
4,554,754
|
|
|
|
5,001,669
|
|
|
|
9,322,198
|
|
|
|
9,798,861
|
|
Loss on asset
dispositions and impairments, net
|
|
|
650
|
|
|
|
997,006
|
|
|
|
1,990
|
|
|
|
987,406
|
|
Income from
operations
|
|
|
2,040,709
|
|
|
|
457,898
|
|
|
|
3,876,443
|
|
|
|
2,503,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
170,102
|
|
|
|
108,881
|
|
|
|
331,223
|
|
|
|
231,072
|
|
Interest
expense
|
|
|
(2,876)
|
|
|
|
(7,939)
|
|
|
|
(4,630)
|
|
|
|
(10,162)
|
|
Profit sharing income
from OC-BVI
|
|
|
56,700
|
|
|
|
-
|
|
|
|
85,050
|
|
|
|
10,125
|
|
Equity in the earnings
(losses) of OC-BVI
|
|
|
157,483
|
|
|
|
(37,824)
|
|
|
|
238,076
|
|
|
|
(10,958)
|
|
Net unrealized gain
(loss) on put/call options
|
|
|
84,000
|
|
|
|
(13,000)
|
|
|
|
(122,000)
|
|
|
|
152,000
|
|
Other
|
|
|
(158,111)
|
|
|
|
(31,829)
|
|
|
|
(75,511)
|
|
|
|
39,991
|
|
Other income,
net
|
|
|
307,298
|
|
|
|
18,289
|
|
|
|
452,208
|
|
|
|
412,068
|
|
Income before
income taxes
|
|
|
2,348,007
|
|
|
|
476,187
|
|
|
|
4,328,651
|
|
|
|
2,915,942
|
|
Benefit from
income taxes
|
|
|
(48,878)
|
|
|
|
(136,448)
|
|
|
|
(126,266)
|
|
|
|
(276,145)
|
|
Net
income
|
|
|
2,396,885
|
|
|
|
612,635
|
|
|
|
4,454,917
|
|
|
|
3,192,087
|
|
Income (loss)
attributable to non-controlling
interests
|
|
|
208,692
|
|
|
|
(11,913)
|
|
|
|
174,199
|
|
|
|
(63,689)
|
|
Net income
attributable to Consolidated Water
Co. Ltd. stockholders
|
|
$
|
2,188,193
|
|
|
$
|
624,548
|
|
|
$
|
4,280,718
|
|
|
$
|
3,255,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share attributable to
Consolidated Water Co. Ltd. common
stockholders
|
|
$
|
0.15
|
|
|
$
|
0.04
|
|
|
$
|
0.29
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share attributable to
Consolidated Water Co. Ltd. common
stockholders
|
|
$
|
0.14
|
|
|
$
|
0.04
|
|
|
$
|
0.28
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
|
$
|
0.085
|
|
|
$
|
0.075
|
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used
in the determination of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
14,959,309
|
|
|
|
14,889,816
|
|
|
|
14,959,284
|
|
|
|
14,880,889
|
|
Diluted earnings per
share
|
|
|
15,117,726
|
|
|
|
15,055,554
|
|
|
|
15,116,712
|
|
|
|
15,045,204
|
|
View original
content:http://www.prnewswire.com/news-releases/consolidated-water-co-ltd-reports-second-quarter-2018-results-300695221.html
SOURCE Consolidated Water Co. Ltd.