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 ...

GEORGE TOWN, Cayman Islands, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading developer and operator of advanced water supply and treatment plants, will hold a conference call on Thursday, August 15, 2024 at 11:00 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2024. The financial results will be issued in a press release prior to the call. Consolidated Water management will host the call, followed by a question and a ...

You can see the current list of Zacks #1 Rank Stocks here >>> A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. Earnings Outlook While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding w ...

Company Overview - Consolidated Water (CWCO) is projected to have earnings of $1.34 per share and revenue of $144.05 million for the full year, reflecting year-over-year changes of -30.57% and -20.07% respectively [1] - The company's upcoming earnings per share (EPS) is estimated at $0.34, indicating a 27.66% decrease from the same quarter last year, with revenue forecasted at $36.94 million, a 16.49% decline compared to the prior year [8] Analyst Estimates and Market Performance - Recent adjustments to analyst estimates for Consolidated Water reflect shifting short-term business dynamics, with positive changes indicating a favorable outlook on the company's health and profitability [2] - The Zacks Consensus EPS estimate has increased by 0.25% over the last 30 days, and Consolidated Water currently holds a Zacks Rank of 2 (Buy) [10] Valuation Metrics - Consolidated Water has a PEG ratio of 2.64, compared to the Utility - Water Supply industry's average PEG ratio of 2.97, indicating a relatively favorable valuation in terms of expected earnings growth [3] - The company is currently traded at a Forward P/E ratio of 21.14, which is a discount compared to the industry average Forward P/E of 21.59 [11] Industry Context - The Utility - Water Supply industry holds a Zacks Industry Rank of 35, placing it in the top 14% of over 250 industries, suggesting strong performance potential [3][4] - Over the past month, CWCO shares have gained 11.79%, outperforming the Utilities sector's gain of 0.93% and the S&P 500's gain of 1.96% [7][6]

Shares of the developer and operator of desalination plants witnessed a loss of 2.91% over the previous month, beating the performance of the Utilities sector with its loss of 4.45% and underperforming the S&P 500's gain of 4.44%. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $143.89 million. These totals would mark changes of -31.09% and -20.15%, respectively, from last year. Research indicates that these estimate revisions ...

The investment community will be paying close attention to the earnings performance of Consolidated Water in its upcoming release. On that day, Consolidated Water is projected to report earnings of $0.34 per share, which would represent a year-over-year decline of 27.66%. At the same time, our most recent consensus estimate is projecting a revenue of $36.94 million, reflecting a 16.49% fall from the equivalent quarter last year. Our research suggests that these changes in estimates have a direct relationshi ...