GEORGE TOWN, Cayman Islands,
Nov. 16, 2020 /PRNewswire/
-- Consolidated Water Co. Ltd. (NASDAQ Global
Select Market: CWCO), a leading developer and operator of advanced
water supply and treatment plants, reported results for the three
and nine months ended September 30,
2020. Quarterly and nine-month comparisons are to the
year-ago period unless otherwise noted.
Financial Highlights
- Revenue in the third quarter of 2020 increased 11.2% to
$17.7 million.
- Revenue for the first nine months of 2020 increased 12.3% to
$57.5 million.
- Net income from continuing operations attributable to
Consolidated Water stockholders for the third quarter of 2020 was
$1.8 million or $0.12 per basic and fully diluted share, as
compared to $2.3 million or
$0.15 per basic and fully diluted
share in the year-ago quarter.
- For the first nine months of 2020, net income from continuing
operations attributable to Consolidated Water stockholders was
$7.6 million or $0.50 per fully diluted share, down from
$8.6 million or $0.57 per fully diluted share in the same
year-ago period.
- Cash and cash equivalents totaled $38.2
million as of September 30,
2020, as compared to $35.0
million as of June 30,
2020.
- Paid $1.3 million in dividends in
Q3 2020.
Management Commentary
"During the third quarter of 2020, Consolidated Water generated
substantial revenue growth and returned to profitability from Q2,"
said company president and CEO, Rick
McTaggart. "Over the first nine months of the year, we were
also profitable, generating nearly $11
million in cash from operations.
"Fortunately, we have not been as impacted by the adverse
conditions created by the COVID-19 pandemic as much as others. Our
teams have worked diligently throughout the pandemic to ensure that
we are able to continue our operations and pursue additional
projects that can strengthen our business.
"Our Q3 topline growth is largely due to the $3.2 million in revenue contributed by our new
PERC Water subsidiary, which provides design, engineering,
construction and management services for water treatment
infrastructure in the U.S. PERC's performance has met our
expectations so far this year in spite of the pandemic, and we've
seen no material impact on its day-to-day operations.
"The management team at PERC has been focused on increasing its
recurring revenue through multi-year operating contracts and
consequently, PERC was awarded four operating contract renewals and
two new operating contracts during the first nine months of the
year. We are especially encouraged by the prospects in this
area of our business, as PERC continues to actively pursue various
potential new projects and contracts. Several of these could
have a substantial positive impact on its results of operations
should it ultimately be successful in securing these
opportunities.
"The addition of PERC has also been highly complementary to our
existing business and overall mission, supporting our pursuit of
water reuse projects and other emerging opportunities with a
comprehensive suite of solutions for improving water
infrastructure. PERC provides a solid platform upon which to expand
to North America our core business
of designing, constructing and operating desalination plants.
"During the third quarter, our retail segment experienced a
decline in revenue compared to last year, mainly due to the
continuing closure of the borders in the Cayman Islands to tourist travel in response
to the pandemic, as well as to the much wetter weather conditions
in the Cayman Islands during the
third quarter.
"The seaport and airport in the Cayman
Islands have been closed to tourists since March, which has
reduced visitors and tourism to virtually nil. However, as of the
first of October, residents and property owners have been allowed
to return to the Cayman Islands
subject to quarantining for 14 days after arrival. This has allowed
flights from the UK and the USA to
resume on a reduced schedule.
"To encourage more long-term visitors, the Cayman Islands government recently implemented
a 'Global Citizen Concierge' program, whereby tourist visas are
granted to individuals and families who wish to reside and work
remotely on the islands for up to two years. The Cayman Islands have actually been very
successful in keeping the country COVID-free and mitigating
pandemic-related damage to its economy, and this is one of their
strong selling points for this new program.
"These developments can help bring much needed economic activity
back to the islands. We are also encouraged by recent announcements
regarding COVID-19 vaccines and believe the Cayman Islands are well positioned to quickly
rebound from the economic downturn created by the pandemic once a
vaccine is available and regular tourism resumes. While these are
all positive developments, we expect our retail segment will
continue to be negatively affected until primarily the United States has recovered from the
pandemic.
"Our bulk water operations in the Cayman Islands and the Bahamas have continued to operate without
incident and have been much less affected by the pandemic than our
retail business. However, our bulk segment revenue that is
generated in the Bahamas and the
Cayman Islands declined slightly
period-over-period largely due to lower energy costs which reduced
the energy pass-through charges to our Bahamian customer. Bulk
water gross profit margin was lower due to higher scheduled
maintenance costs for our Bahamas
operations.
"While we grew services revenues, our net income from services
was largely affected by the amortization expense from the
acquisition. Without the amortization, services generated
approximately $750,000 in net income
in the third quarter.
"The pandemic has caused unprecedented complications across all
industries and companies, and does not appear to be getting any
closer to ending. However, we have gone through two full quarters
of lock downs with the various companies that we operate, and we
think our business has stabilized in the current environment.
"While the sales in our retail business remain lower than
normal, our other businesses are operating status quo or are
improving. Our a very strong balance sheet with $38 million in cash enables us to continue to
execute on our growth strategies and further the key business
development initiatives we've been working on.
"Looking ahead, we believe our solid financial condition and
ample liquidity provides us with the solid foundation necessary for
dealing with the challenges of the current economic environment.
Our core operations and mission of providing affordable
quality drinking water through our highly-efficient
desalination plants, as well as wastewater treatment services
through advanced water treatment and recycling facilities,
continues to be a public health and economic necessity for our
customers in the Caribbean and
U.S.
"We are well-positioned to take advantage of opportunities that
may arise to address these needs and expand or enhance our
operations, especially as conditions eventually improve. The strong
growth drivers inherent in our markets will continue to persist
over the long-term regardless of the pandemic, and this bodes well
for Consolidated Water as we work to enhance shareholder value over
the months and years to come."
Q3 2020 Financial Summary
Revenue increased 11.2% to $17.7 million from $15.9 million in the third quarter of 2019,
which was driven by increases of $3.3
million in the services segment and $0.2 million in the manufacturing segment. The
increases were partially offset by decreases of $1.3 million in the retail segment and
$0.4 million in the bulk segment.
The increase in services revenue was due to the addition of
$3.2 million in revenue from PERC
Water which was acquired by the company in late
October 2019.
The increase in manufacturing revenue was due to a shift in the
production mix to higher revenue projects.
The decrease in retail revenue was due to an 18% decrease in the
volume of water sold. This sales volume decrease is due to the
temporary cessation of tourism on Grand
Cayman resulting from the closing of all Cayman Islands airports and seaports in
March 2020 in response to the
COVID-19 pandemic.
The decrease in bulk segment revenue is attributable to a
decrease in CW-Bahamas' revenue of
approximately $431,000 for 2020 due
to lower energy costs, which correspondingly decreased the energy
pass-through component of CW-Bahamas' rates.
Gross profit for the third quarter of 2020 was $6.2 million or 35.2% of total revenue, down 7.4%
from $6.7 million or 42.2% of total
revenue in the same year-ago quarter.
Net income from continued operations attributable to
Consolidated Water stockholders for the third quarter of 2020 was
$1.8 million or $0.12 per basic and fully diluted share, as
compared to $2.3 million or
$0.15 per basic and fully diluted
share in the third quarter of 2019.
First nine months 2020 Financial Summary
Total revenue for the first nine months of 2020 was $57.5 million, up 12.3% compared to $51.2 million in the same year-ago period. The
increase was primarily driven by an increase of $9.7 million in the services segment and an
increase of $0.5 million in the
manufacturing segment. The increase in total revenue was partially
offset by decreases of $2.1 million
in the bulk segment and $1.7 million
in the retail segment.
The increase in services revenue was due to the addition of
$9.6 million in revenue from PERC
Water which was acquired by the company in late October 2019.
Retail revenue decreased due to an 8% decrease in the volume of
water sold. This sales volume decrease is due to the temporary
cessation of tourism on Grand
Cayman resulting from the closing of all Cayman Islands airports and seaports in
March 2020 in response to the
COVID-19 pandemic.
The decrease in bulk revenue was due to a decline in revenue in
OC-Cayman of approximately $1.3
million for the third quarter as a result of the two new
contracts under lower rates with the Water Authority-Cayman for
water supplied from the Red Gate and North Sound plants, which
commenced in February 2019, and the
North Side Water Works plant, which commenced in July 2019. CW-Bahamas' revenue dropped
approximately $879,000 for 2020 due
to lower energy costs, which correspondingly decreased the energy
pass-through component of its rates.
The increase in manufacturing revenue was due to a shift in the
production mix of higher revenue projects.
Gross profit for the first nine months of 2020 was $22.0 million or 38.2% of total revenue, up 3.5%
from $21.2 million or 41.5% of total
revenue in the same year-ago period.
Net income from continuing operations attributable to
Consolidated Water stockholders for the first nine months of 2020
was $7.6 million or $0.50 per fully diluted share, down from
$8.6 million or $0.57 per fully diluted share in the same
year-ago period.
Third Quarter
Segment Results
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
Retail
|
|
Bulk
|
|
Services
|
|
Manufacturing
|
|
Total
|
Revenue
|
|
$
|
4,993,069
|
|
$
|
6,061,475
|
|
$
|
3,351,935
|
|
$
|
3,259,778
|
|
$
|
17,666,257
|
Cost of
revenue
|
|
|
2,586,901
|
|
|
4,400,717
|
|
|
2,513,272
|
|
|
1,949,731
|
|
|
11,450,621
|
Gross
profit
|
|
|
2,406,168
|
|
|
1,660,758
|
|
|
838,663
|
|
|
1,310,047
|
|
|
6,215,636
|
General and
administrative expenses
|
|
|
3,367,802
|
|
|
382,662
|
|
|
728,829
|
|
|
330,723
|
|
|
4,810,016
|
Loss on asset
dispositions and impairments,
net
|
|
|
—
|
|
|
—
|
|
|
(984)
|
|
|
—
|
|
|
(984)
|
Income (loss) from
operations
|
|
$
|
(961,634)
|
|
$
|
1,278,096
|
|
$
|
108,850
|
|
$
|
979,324
|
|
|
1,404,636
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
245,492
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,650,128
|
Benefit from income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(263,165)
|
Net income from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,913,293
|
Income from
continuing operations attributable to non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,137
|
Net income from
continuing operations attributable to Consolidated Water Co. Ltd.
stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,812,156
|
Net loss from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(377,321)
|
Net income
attributable to Consolidated Water Co. Ltd. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,434,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2019
|
|
|
Retail
|
|
Bulk
|
|
Services
|
|
Manufacturing
|
|
Total
|
Revenue
|
|
$
|
6,271,220
|
|
$
|
6,449,757
|
|
$
|
95,980
|
|
$
|
3,072,282
|
|
$
|
15,889,239
|
Cost of
revenue
|
|
|
2,945,586
|
|
|
4,269,739
|
|
|
31,601
|
|
|
1,933,333
|
|
|
9,180,259
|
Gross
profit
|
|
|
3,325,634
|
|
|
2,180,018
|
|
|
64,379
|
|
|
1,138,949
|
|
|
6,708,980
|
General and
administrative expenses
|
|
|
3,497,320
|
|
|
294,189
|
|
|
549
|
|
|
487,914
|
|
|
4,279,972
|
Gain on asset
dispositions and impairments,
net
|
|
|
6,518
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
7,018
|
Income (loss) from
operations
|
|
$
|
(165,168)
|
|
$
|
1,886,329
|
|
$
|
63,830
|
|
$
|
651,035
|
|
|
2,436,026
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216,896
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,652,922
|
Benefit from income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(40,075)
|
Net income from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,692,997
|
Income attributable
to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
433,235
|
Net income from
continuing operations attributable to Consolidated Water Co. Ltd.
stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,259,762
|
Net loss from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(532,710)
|
Net income
attributable to Consolidated Water Co. Ltd. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,727,052
|
First Nine Months
Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
|
|
Retail
|
|
Bulk
|
|
Services
|
|
Manufacturing
|
|
Total
|
Revenue
|
|
$
|
18,216,797
|
|
$
|
18,368,156
|
|
$
|
9,942,748
|
|
$
|
10,951,524
|
|
$
|
57,479,225
|
Cost of
revenue
|
|
|
8,343,018
|
|
|
12,906,606
|
|
|
7,418,305
|
|
|
6,852,196
|
|
|
35,520,125
|
Gross
profit
|
|
|
9,873,779
|
|
|
5,461,550
|
|
|
2,524,443
|
|
|
4,099,328
|
|
|
21,959,100
|
General and
administrative expenses
|
|
|
10,008,423
|
|
|
935,808
|
|
|
2,112,869
|
|
|
1,005,838
|
|
|
14,062,938
|
Gain on asset
dispositions and impairments, net
|
|
|
—
|
|
|
200
|
|
|
3,801
|
|
|
—
|
|
|
4,001
|
Income (loss) from
operations
|
|
$
|
(134,644)
|
|
$
|
4,525,942
|
|
$
|
415,375
|
|
$
|
3,093,490
|
|
|
7,900,163
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
533,710
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,433,873
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147,186
|
Net income from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,286,687
|
Income from
continuing operations attributable to non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
642,289
|
Net income from
continuing operations attributable to Consolidated Water Co. Ltd.
stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,644,398
|
Net loss from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,448,798)
|
Net income
attributable to Consolidated Water Co. Ltd. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,195,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
Retail
|
|
Bulk
|
|
Services
|
|
Manufacturing
|
|
Total
|
Revenue
|
|
$
|
19,941,395
|
|
$
|
20,502,121
|
|
$
|
287,349
|
|
$
|
10,452,158
|
|
$
|
51,183,023
|
Cost of
revenue
|
|
|
8,753,948
|
|
|
13,992,452
|
|
|
198,614
|
|
|
7,013,977
|
|
|
29,958,991
|
Gross
profit
|
|
|
11,187,447
|
|
|
6,509,669
|
|
|
88,735
|
|
|
3,438,181
|
|
|
21,224,032
|
General and
administrative expenses
|
|
|
10,020,019
|
|
|
900,572
|
|
|
2,865
|
|
|
1,466,091
|
|
|
12,389,547
|
Gain on asset
dispositions and impairments,
net
|
|
|
401,088
|
|
|
47,000
|
|
|
—
|
|
|
—
|
|
|
448,088
|
Income from
operations
|
|
$
|
1,568,516
|
|
$
|
5,656,097
|
|
$
|
85,870
|
|
$
|
1,972,090
|
|
|
9,282,573
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
518,031
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,800,604
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73,117
|
Net income from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,727,487
|
Income from
continuing operations attributable to non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,172,039
|
Net income from
continuing operations attributable to Consolidated Water Co. Ltd.
stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,555,448
|
Net income from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,834,297
|
Net income
attributable to Consolidated Water Co. Ltd. stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,389,745
|
Conference Call
Consolidated Water management will host a conference call to
discuss these results, followed by a question and answer
period.
Date: Tuesday, November 17,
2020
Time: 11:00 a.m. Eastern time
(8:00 a.m. Pacific time)
Toll-free dial-in number: 1-844-875-6913
International dial-in number: 1-412-317-6709
Conference ID: 10149638
Please call the conference telephone number five minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after 1:00 p.m. Eastern time on the same day through
November 24, 2020, as well as
available for replay via the Investors section of the Consolidated
Water website at www.cwco.com.
Toll-free replay number: 1-877-344-7529
International replay number: 1-412-317-0088
Replay ID: 10149638
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water
supply and treatment plants and water distribution systems. The
company operates water production facilities in the Cayman Islands, The Bahamas and the British Virgin Islands and operates water
treatment facilities in the United
States. 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. For more information,
visit www.cwco.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe", "estimate", "project", "intend", "expect", "should",
"will" 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 (i) continued acceptance of the company's products and
services in the marketplace; (ii) changes in its relationships with
the governments of the jurisdictions in which it operates; (iii)
the outcome of its negotiations with the Cayman government
regarding a new retail license agreement; (iv) the future financial
performance of its subsidiary that manufactures water
treatment-related systems and products and provides design,
engineering, management, operating and other services applicable to
commercial, municipal and industrial water production; (v) the
collection of its delinquent accounts receivable in the
Bahamas; (vi) its ability to
integrate and profitably operate recently acquired subsidiary PERC
Water Corporation; (vii) the possible adverse impact of the
COVID-19 virus on the company's business; and (viii) various other
risks, as detailed in the company's periodic report filings with
the Securities and Exchange Commission ("SEC"). For more
information about risks and uncertainties associated with the
company's business, please refer to the "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and
"Risk Factors" sections of the company's SEC filings, including,
but not limited to, its annual report on Form 10-K and quarterly
reports on Form 10-Q, copies of which may be obtained by contacting
the company's Secretary at the company's executive offices or at
the "Investors – SEC Filings" page of the company's website at
http://ir.cwco.com/docs. Except as otherwise required by law, the
company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Company Contact:
David W.
Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
dsasnett@cwco.com
Investor Relations
Contact
Ron Both, CMA
Tel (949) 432-7566
CWCO@cma.team
CONSOLIDATED WATER
CO. LTD.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
38,179,414
|
|
$
|
42,071,083
|
|
Accounts receivable,
net
|
|
|
24,411,328
|
|
|
23,229,689
|
|
Inventory
|
|
|
3,770,351
|
|
|
3,287,555
|
|
Prepaid expenses and
other current assets
|
|
|
2,967,605
|
|
|
1,559,448
|
|
Costs and estimated
earnings in excess of billings
|
|
|
1,188,875
|
|
|
1,675,781
|
|
Current assets of
discontinued operations
|
|
|
1,052,091
|
|
|
1,619,056
|
|
Total current
assets
|
|
|
71,569,664
|
|
|
73,442,612
|
|
Property, plant and
equipment, net
|
|
|
59,056,778
|
|
|
61,238,752
|
|
Construction in
progress
|
|
|
473,507
|
|
|
1,335,597
|
|
Inventory,
noncurrent
|
|
|
4,657,418
|
|
|
4,404,378
|
|
Investment in
OC-BVI
|
|
|
1,698,214
|
|
|
1,903,602
|
|
Goodwill
|
|
|
13,325,013
|
|
|
13,325,013
|
|
Intangible assets,
net
|
|
|
4,360,833
|
|
|
5,040,000
|
|
Operating lease
right-of-use assets
|
|
|
1,414,736
|
|
|
1,811,516
|
|
Other
assets
|
|
|
1,916,123
|
|
|
2,120,708
|
|
Long-term assets of
discontinued operations
|
|
|
21,995,648
|
|
|
27,669,966
|
|
Total
assets
|
|
$
|
180,467,934
|
|
$
|
192,292,144
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
$
|
3,083,762
|
|
$
|
3,560,971
|
|
Accrued
compensation
|
|
|
1,835,594
|
|
|
1,821,395
|
|
Dividends
payable
|
|
|
1,298,311
|
|
|
1,292,187
|
|
Current maturities of
operating leases
|
|
|
545,364
|
|
|
688,540
|
|
Current portion of
long-term debt
|
|
|
42,211
|
|
|
17,753
|
|
Billings in excess of
costs and estimated earnings
|
|
|
818,765
|
|
|
614,386
|
|
Current liabilities of
discontinued operations
|
|
|
98,891
|
|
|
178,382
|
|
Total current
liabilities
|
|
|
7,722,898
|
|
|
8,173,614
|
|
Long-term debt,
noncurrent
|
|
|
136,106
|
|
|
61,146
|
|
Deferred tax
liabilities
|
|
|
1,364,393
|
|
|
1,529,035
|
|
Noncurrent operating
leases
|
|
|
1,071,831
|
|
|
1,156,543
|
|
Net liability arising
from put/call options
|
|
|
706,000
|
|
|
664,000
|
|
Other
liabilities
|
|
|
75,000
|
|
|
75,000
|
|
Long-term liabilities
of discontinued operations
|
|
|
8,842
|
|
|
2,679,932
|
|
Total
liabilities
|
|
|
11,085,070
|
|
|
14,339,270
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Consolidated Water
Co. Ltd. stockholders' equity
|
|
|
|
|
|
|
|
Redeemable preferred
stock, $0.60 par value. Authorized 200,000 shares; issued and
outstanding 33,059 and 33,751 shares, respectively
|
|
|
19,835
|
|
|
20,251
|
|
Class A common stock,
$0.60 par value. Authorized 24,655,000 shares; issued and
outstanding 15,122,049 and 15,049,608 shares,
respectively
|
|
|
9,073,230
|
|
|
9,029,765
|
|
Class B common stock,
$0.60 par value. Authorized 145,000 shares; none issued
|
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
86,590,057
|
|
|
88,356,509
|
|
Retained
earnings
|
|
|
65,683,955
|
|
|
66,352,733
|
|
Total Consolidated
Water Co. Ltd. stockholders' equity
|
|
|
161,367,077
|
|
|
163,759,258
|
|
Non-controlling
interests
|
|
|
8,015,787
|
|
|
14,193,616
|
|
Total
equity
|
|
|
169,382,864
|
|
|
177,952,874
|
|
Total liabilities
and equity
|
|
$
|
180,467,934
|
|
$
|
192,292,144
|
|
CONSOLIDATED WATER
CO. LTD.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Total
revenue
|
|
$
|
17,666,257
|
|
$
|
15,889,239
|
|
$
|
57,479,225
|
|
$
|
51,183,023
|
Total cost of
revenue
|
|
|
11,450,621
|
|
|
9,180,259
|
|
|
35,520,125
|
|
|
29,958,991
|
Gross
profit
|
|
|
6,215,636
|
|
|
6,708,980
|
|
|
21,959,100
|
|
|
21,224,032
|
General and
administrative expenses
|
|
|
4,810,016
|
|
|
4,279,972
|
|
|
14,062,938
|
|
|
12,389,547
|
Gain (loss) on asset
dispositions and impairments, net
|
|
|
(984)
|
|
|
7,018
|
|
|
4,001
|
|
|
448,088
|
Income from
operations
|
|
|
1,404,636
|
|
|
2,436,026
|
|
|
7,900,163
|
|
|
9,282,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
164,761
|
|
|
154,175
|
|
|
411,020
|
|
|
444,827
|
Interest
expense
|
|
|
(2,069)
|
|
|
(19)
|
|
|
(7,413)
|
|
|
(19)
|
Profit-sharing income
from OC-BVI
|
|
|
6,075
|
|
|
2,025
|
|
|
30,375
|
|
|
10,125
|
Equity in the
earnings of OC-BVI
|
|
|
22,411
|
|
|
38,174
|
|
|
82,387
|
|
|
26,686
|
Net unrealized gain
(loss) on put/call options
|
|
|
39,000
|
|
|
—
|
|
|
(42,000)
|
|
|
(24,000)
|
Other
|
|
|
15,314
|
|
|
22,541
|
|
|
59,341
|
|
|
60,412
|
Other
income, net
|
|
|
245,492
|
|
|
216,896
|
|
|
533,710
|
|
|
518,031
|
Income before
income taxes
|
|
|
1,650,128
|
|
|
2,652,922
|
|
|
8,433,873
|
|
|
9,800,604
|
Provision
(benefit) for income taxes
|
|
|
(263,165)
|
|
|
(40,075)
|
|
|
147,186
|
|
|
73,117
|
Net income from
continuing operations
|
|
|
1,913,293
|
|
|
2,692,997
|
|
|
8,286,687
|
|
|
9,727,487
|
Income from
continuing operations attributable to non-controlling
interests
|
|
|
101,137
|
|
|
433,235
|
|
|
642,289
|
|
|
1,172,039
|
Net income from
continuing operations attributable to Consolidated Water Co. Ltd.
stockholders
|
|
|
1,812,156
|
|
|
2,259,762
|
|
|
7,644,398
|
|
|
8,555,448
|
Gain on sale of
discontinued operations
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,621,170
|
Net loss from
discontinued operations
|
|
|
(377,321)
|
|
|
(532,710)
|
|
|
(4,448,798)
|
|
|
(1,786,873)
|
Total income
(loss) from discontinued operations
|
|
|
(377,321)
|
|
|
(532,710)
|
|
|
(4,448,798)
|
|
|
1,834,297
|
Net income
attributable to Consolidated Water Co. Ltd.
stockholders
|
|
$
|
1,434,835
|
|
$
|
1,727,052
|
|
$
|
3,195,600
|
|
$
|
10,389,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share attributable to Consolidated Water Co. Ltd.
common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
0.12
|
|
$
|
0.15
|
|
$
|
0.51
|
|
$
|
0.57
|
Discontinued
operations
|
|
|
(0.03)
|
|
|
(0.04)
|
|
|
(0.30)
|
|
|
0.12
|
Basic earnings per
share
|
|
$
|
0.09
|
|
$
|
0.11
|
|
$
|
0.21
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share attributable to Consolidated Water Co. Ltd.
common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
0.12
|
|
$
|
0.15
|
|
$
|
0.50
|
|
$
|
0.57
|
Discontinued
operations
|
|
|
(0.03)
|
|
|
(0.04)
|
|
|
(0.29)
|
|
|
0.12
|
Diluted earnings
per share
|
|
$
|
0.09
|
|
$
|
0.11
|
|
$
|
0.21
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common and redeemable preferred shares
|
|
$
|
0.085
|
|
$
|
0.085
|
|
$
|
0.26
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used in the determination
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
15,120,983
|
|
|
15,026,710
|
|
|
15,116,681
|
|
|
15,022,489
|
Diluted earnings per
share
|
|
|
15,273,529
|
|
|
15,138,094
|
|
|
15,270,494
|
|
|
15,132,843
|
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SOURCE Consolidated Water Co. Ltd.