Core Viewpoint - Consolidated Water Co. Ltd. (CWCO) reported Q2 2024 results that missed earnings and revenue expectations, with GAAP EPS at $0.26, falling short by $0.02, and revenue at $32.48 million, missing by $4.82 million. Despite strong performance in the Retail segment and a significant increase in operations and maintenance contracts, overall revenue was impacted by the completion of major projects [2][11]. Company Overview - CWCO is a water utility company that specializes in designing, building, and operating water facilities, particularly desalination plants. Founded in 1973 in Grand Cayman, it has expanded its operations across the Caribbean and into the U.S. The company utilizes reverse osmosis technology to provide potable water and manages various water treatment projects [3]. Financial Performance - The Retail segment experienced an 8% revenue increase, reaching $8.2 million in Q2 2024, while water sales rose by 10% due to population growth and reduced rainfall in Grand Cayman. The population of the Cayman Islands is estimated to have increased by 10.5% recently [4]. - Revenue from operations and maintenance contracts surged by 75% to $7.1 million, aided by the REC acquisition in Colorado, which contributed $1.9 million. Although construction revenue declined, it was offset by gains from maintenance contracts [5]. - CWCO completed significant projects, including an $81 million water treatment plant in Arizona and a 2.6 million gallon per day desalination plant in Grand Cayman, which are expected to secure long-term revenue streams [5][6]. - The company reported a net income of $15.9 million, or $0.99 per diluted share, up from $7.3 million, or $0.46 per share, in the same quarter of 2023 [6]. Market Position and Valuation - CWCO's P/E ratio stands at 18.07x, lower than the typical 26.82x, indicating that the stock may be overvalued relative to earnings. The fair value ratio is at 15.00x, suggesting that unless earnings improve, significant price growth may not be expected [7]. - The company has shown respectable growth in operating earnings at 11.13%, which is notable for a utility company. The low dividend yield may deter income-focused investors, but CWCO's solid financial position could make it an attractive option for those valuing stability [8]. Risks and Challenges - CWCO's revenue faced a 27% decline to $32.5 million in Q2 2023, primarily due to a $16.5 million drop in construction revenue as major projects were completed. The Services segment saw a 50% revenue decrease, while the Bulk segment experienced a slight dip due to lower energy costs [9][12]. - The company's reliance on a few large projects poses a risk, as future revenue growth is contingent on timely project completions. This dependency has led to a decrease in gross profit, which fell to $11.6 million, or 36% of total revenue, from $15.5 million, or 35% in Q2 2023 [13]. Strategic Outlook - CWCO is expanding its operations with a $2.5 million investment to enhance the West Bay desalination plant in Grand Cayman, driven by increasing water demand. The company is also entering a new market with a 15-year contract to develop two desalination plants in the Bahamas [6]. - The company has secured master design-build service agreements with major national clients, indicating potential for future revenue growth [6].

Core Insights - Consolidated Water Co. Ltd. (CWCO) reported second-quarter 2024 earnings per share of 26 cents, missing the Zacks Consensus Estimate of 34 cents by 23.5% and down 44.7% from 47 cents in the previous year [1] - Total revenues for the quarter were $32 million, falling short of the Zacks Consensus Estimate of $37 million by 12.5% and declining 27.3% from $44 million in the same quarter last year [2] Revenue Breakdown - Retail revenues increased to $8.18 million, up 8.1% from $7.57 million in the year-ago quarter, driven by an 8% increase in the volume of water sold [3] - Bulk revenues slightly decreased to $8.44 million, down 0.5% from $8.48 million in the prior year, attributed to lower energy costs affecting CW-Bahamas' rates [3] - Manufacturing revenues totaled $3.9 million, a decrease of 3.9% from $4.08 million in the previous year [4] - Services revenues significantly dropped to $11.9 million, down 50.6% from $24.1 million last year, primarily due to a $16.5 million decline in plant construction revenues [4] Financial Highlights - General and administrative expenses rose nearly 10.4% to $6.6 million [5] - Net income from continuing operations was $11.5 million, compared to $11.9 million in the year-ago quarter [5] - Cash and cash equivalents increased to $96.7 million as of June 30, 2024, from $42.6 million as of December 31, 2023 [7] - Working capital stood at $131.2 million as of the same date [7] - Total long-term debt was $0.15 million as of June 30, 2024, down from $0.19 million at the end of 2023 [7] - Cash flow from operating activities in the first half of 2024 was $26.9 million, compared to $4.5 million in the year-ago period [7] Operational Developments - The volume of retail water sold in Grand Cayman increased by 10% year over year [6] - The company completed the construction and commissioning of a new 2.6 million gallons per day desalination plant for the Water Authority of the Cayman Islands, operating under a 10-year operations and maintenance agreement [6]

Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q2 2024 Earnings Conference Call August 15, 2024 11:00 AM ET Company Participants Frederick McTaggart - CEO David Sasnett - CFO Conference Call Participants Gerard Sweeney - ROTH Capital Operator Good morning, everyone. Thank you for joining us today to discuss the results for Consolidated Water's Second Quarter of 2024. Hosting the call today is the Chief Executive Officer of Consolidated Water Company, Rick McTaggart; and the company's Chief Financial Officer, Dav ...

Exhibit 99.1 Exhibit 99.1 Consolidated Water Reports Second Quarter 2024 Operating Results GEORGE TOWN, Grand Cayman, Cayman Islands, August 14, 2024 -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water supply and treatment plants, reported results for the second quarter ended June 30, 2024. All comparisons are to the same prior year period unless otherwise noted. Consolidated Water will hold a conference call at 11:00 a.m. Eastern ti ...

Core Insights - Consolidated Water (CWCO) reported a revenue of $32.48 million for the quarter ended June 2024, reflecting a 26.6% decrease year-over-year [1] - The earnings per share (EPS) for the quarter was $0.26, down from $0.47 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $37.12 million, resulting in a surprise of -12.50% [1] - The company experienced an EPS surprise of -23.53%, with the consensus EPS estimate being $0.34 [1] Revenue Breakdown - Manufacturing revenue was $3.93 million, compared to the average estimate of $4.89 million from two analysts [3] - Services revenue amounted to $11.92 million, below the two-analyst average estimate of $14.91 million [4] - Retail revenue reached $8.18 million, slightly above the average estimate of $7.89 million from two analysts [5] - Bulk revenue was reported at $8.45 million, closely aligning with the average estimate of $8.49 million from two analysts [6] Stock Performance - Shares of Consolidated Water have declined by 7.2% over the past month, while the Zacks S&P 500 composite has decreased by 3.2% [6] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [6]

GEORGE TOWN, Cayman Islands, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water supply and treatment plants, reported results for the second quarter ended June 30, 2024. All comparisons are to the same prior year period unless otherwise noted. Consolidated Water will hold a conference call at 11:00 a.m. Eastern time tomorrow to discuss the results (see dial-in information below). Second Quarter 2024 Fi ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements detail the company's financial position and performance for the quarter ended June 30, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a significant increase in cash and cash equivalents to $96.7 million, strengthening the company's financial position Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $96,670,206 | $42,621,898 | | Total current assets | $150,758,855 | $112,714,375 | | Total assets | $235,161,960 | $218,437,592 | | **Liabilities & Equity** | | | | Total current liabilities | $19,530,591 | $23,904,646 | | Total liabilities | $23,160,461 | $26,606,918 | | Total equity | $212,001,499 | $191,830,674 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2024 revenue decreased, but a substantial gain from discontinued operations boosted total net income attributable to stockholders to $15.9 million Income Statement Summary (Unaudited) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | $32,479,158 | $44,237,263 | | Gross Profit | $11,620,214 | $15,463,549 | | Income from Operations | $5,010,790 | $9,479,634 | | Net income from continuing operations (to CWCO) | $4,242,411 | $7,531,472 | | Net income (loss) from discontinued operations | $11,607,846 | ($207,701) | | Net income (to CWCO) | $15,850,257 | $7,323,771 | | Diluted EPS | $0.99 | $0.46 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to $212.0 million by June 30, 2024, driven primarily by net income - Total stockholders' equity grew to **$212.0 million** by June 30, 2024, an increase from $191.8 million at the end of 2023, mainly due to retained earnings from net income[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $55.3 million in the first six months of 2024, led by operating activities and the Mexico settlement Six Months Ended June 30, 2024 Cash Flow Summary (Unaudited) | Cash Flow Category | Amount | | :--- | :--- | | Net cash provided by operating activities | $26,905,891 | | Net cash provided by investing activities | $31,539,511 | | Net cash used in financing activities | ($3,133,273) | | **Net increase in cash and cash equivalents** | **$55,312,129** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail a $12.1 million gain from the Mexico project settlement and highlight contingencies like the expired Cayman Water license Revenue by Source (Six Months Ended June 30) | Revenue Source | 2024 | 2023 | | :--- | :--- | :--- | | Retail | $16,806,822 | $15,344,424 | | Bulk | $16,790,052 | $17,486,868 | | Services | $29,340,080 | $36,815,664 | | Manufacturing | $9,231,594 | $7,459,297 | | **Total Revenue** | **$72,168,548** | **$77,106,253** | - The company settled its dispute over the terminated Mexico project in May 2024, selling the project land for approximately **US$32.0 million** and resulting in a **gain of $12.1 million** reported under discontinued operations[59](index=59&type=chunk)[62](index=62&type=chunk) - The exclusive retail license for Cayman Water has not been expressly extended since January 2018, and ongoing negotiations could **materially reduce the retail segment's historical operating income** and cash flows[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - As of June 30, 2024, CW-Bahamas had accounts receivable from the Water and Sewerage Corporation of The Bahamas (WSC) totaling **$25.4 million**, of which approximately **79% was delinquent**[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased Q2 2024 revenue from lower services activity, offset by a significant gain from the Mexico project settlement [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q2 2024 consolidated revenue fell to $32.5 million due to a sharp decline in services revenue as a major project neared completion - Services segment revenue **decreased to $11.9 million** in Q2 2024 from $24.1 million in Q2 2023, as construction revenue for the nearly complete Liberty Utilities contract fell to $1.4 million from $17.6 million[113](index=113&type=chunk) - Retail revenue **increased to $8.2 million** in Q2 2024 from $7.6 million in Q2 2023, driven by a **10% increase in the volume of water sold**[111](index=111&type=chunk) - Manufacturing gross profit margin **increased to 33%** in Q2 2024 from 23% in Q2 2023, attributed to a higher margin product mix[114](index=114&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=34&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company's cash position strengthened to $96.7 million, though significant delinquent receivables in the Bahamas remain a liquidity risk - Cash and cash equivalents **increased to $96.7 million** as of June 30, 2024, a significant rise from $42.6 million at December 31, 2023, mainly due to the Mexico settlement[129](index=129&type=chunk)[134](index=134&type=chunk) - The company projects capital expenditures of approximately **$11.0 million** for the remainder of 2024[129](index=129&type=chunk) - A significant liquidity risk persists in the Bahamas, where receivables from the WSC were **$25.4 million**, with **79% delinquent** as of June 30, 2024[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes in its market risk exposure since year-end 2023 - There have been **no material changes** in the company's exposure to market risk since December 31, 2023[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Management concluded that **disclosure controls and procedures were effective** as of the end of the period covered by this report[151](index=151&type=chunk) - **No changes in internal control over financial reporting** that have materially affected, or are reasonably likely to materially affect, such controls were identified during the last fiscal quarter[152](index=152&type=chunk) [PART II - OTHER INFORMATION](index=38&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Key business risks include uncertainty over the Cayman Islands retail license, delinquent receivables in the Bahamas, and fixed-price contract costs - A primary risk is the ongoing negotiation for the Cayman Islands retail license, where an unfavorable outcome could **significantly reduce operating income and cash flows** from this segment[155](index=155&type=chunk)[159](index=159&type=chunk) - The Bahamas subsidiary faces liquidity risks due to substantial delays in collecting receivables from the WSC, with **$25.4 million outstanding and 79% delinquent** as of June 30, 2024[160](index=160&type=chunk)[161](index=161&type=chunk) - The profitability of construction, manufacturing, and operations contracts is **highly dependent on the company's ability to accurately estimate costs**, as most are fixed-price contracts[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued 5,904 shares of preferred stock to employees in June 2024 under exemptions from SEC registration - In June 2024, the company issued **5,904 shares of preferred stock** to 124 employees for services rendered, utilizing exemptions from SEC registration[163](index=163&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) CEO Frederick W. McTaggart adopted a Rule 10b5-1 trading plan for the potential sale of up to 70,000 shares of common stock - On June 7, 2024, CEO Frederick W. McTaggart adopted a Rule 10b5-1 trading plan for the potential sale of up to **70,000 shares of common stock**[164](index=164&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications and XBRL interactive data files - The exhibits filed with this report include officer certifications under Rule 13a-14(a)/15d-14(a) and Section 1350, along with **XBRL data files**[165](index=165&type=chunk) [Signatures](index=41&type=section&id=SIGNATURES)

Consolidated Water Co. Ltd.'s (CWCO) use of Reverse Osmosis, one of the most advanced water purification technologies to convert seawater to potable water at all water treatment plants, boosts its performance. Given its growth opportunities, CWCO makes for a solid investment option in the utility sector. Let's focus on the factors that make this Zacks #2 Rank (Buy) company a strong investment pick at the moment. Growth Projections & Surprise History The Zacks Consensus Estimate for 2024 earnings per share ( ...

Consolidated Water Co. Ltd. (CWCO) is scheduled to release second-quarter 2024 results on Aug 15. The utility company delivered an earnings surprise of 10.26% in the last reported quarter. Let's discuss the factors that are likely to impact the upcoming quarterly results. Factors to Consider Earnings are likely to have benefited from increased production capacity and rising demand from the expanding residential population. The completion of a wastewater treatment facility in Arizona is expected to have prov ...

Consolidated Water (CWCO) closed the most recent trading day at $26.83, moving -0.37% from the previous trading session. This change lagged the S&P 500's daily gain of 1.04%. On the other hand, the Dow registered a gain of 0.76%, and the technology-centric Nasdaq increased by 1.03%. The the stock of developer and operator of desalination plants has risen by 8.9% in the past month, leading the Utilities sector's gain of 5.69% and the S&P 500's loss of 6.74%. The investment community will be paying close atte ...