Consolidated Water(US:CWCO)2025-05-12 20:27Financial Performance - Revenue for Q1 2025 was $33.72 million, a decrease of 15% compared to $39.69 million in Q1 2024[13] - Gross profit for Q1 2025 was $12.31 million, down from $13.88 million in Q1 2024, reflecting a gross margin of 36.5%[13] - Net income attributable to Consolidated Water Co. Ltd. stockholders for Q1 2025 was $4.79 million, a decline of 26% from $6.47 million in Q1 2024[13] - Basic earnings per share for Q1 2025 was $0.30, compared to $0.41 in Q1 2024, representing a decrease of 27%[13] - Total revenue for Q1 2025 was $33,715,385, down 15% from $39,689,390 in Q1 2024[35] - Net income from continuing operations attributable to stockholders decreased to $4,924,110 in Q1 2025 from $6,941,414 in Q1 2024, representing a decline of approximately 29%[64] - Net income attributable to Consolidated Water Co. Ltd. stockholders for 2025 was $4,791,029 ($0.30 per share), compared to $6,474,348 ($0.40 per share) for 2024, reflecting a decrease of approximately 26%[132] - Revenue for 2025 decreased to $33,715,385 from $39,689,390 in 2024, a decline of about 15% due to a significant decrease in services segment revenue[135] Assets and Liabilities - Total assets increased to $250.37 million as of March 31, 2025, up from $243.31 million at the end of 2024[11] - Total liabilities rose to $31.56 million as of March 31, 2025, compared to $28.00 million at the end of 2024[11] - Stockholders' equity increased to $218.81 million as of March 31, 2025, from $215.31 million at the end of 2024[11] - The company's total segment assets as of March 31, 2025, amounted to $250,199,258, an increase from $243,040,696 as of December 31, 2024[62] Revenue Segmentation - Retail revenue increased to $9,411,342 in Q1 2025, up 9% from $8,624,938 in Q1 2024[35] - Services revenue significantly decreased to $10,078,268 in Q1 2025, down 42% from $17,417,611 in Q1 2024[35] - The retail segment generated revenue of $9,411,342, while the bulk segment generated $8,411,716 for the three months ended March 31, 2025[57] - The manufacturing segment reported revenue of $5,814,059 for the three months ended March 31, 2025[57] - Retail water operations generated approximately 28% of consolidated revenue and 46% of consolidated gross profit for the three months ended March 31, 2025[171] Expenses - General and administrative expenses for Q1 2025 were $7.72 million, an increase of 17.6% from $6.56 million in Q1 2024[13] - General and administrative expenses increased to $7,723,959 for 2025 from $6,564,029 for 2024, primarily due to legal costs and added employee costs[136] - Corporate G&A expenses increased to $3,729,650 in 2025 from $3,337,634 in 2024, primarily due to employee costs and legal fees[150] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $107,852,232, an increase from $46,177,641 at the end of Q1 2024[17] - Net cash provided by operating activities for continuing operations was $12,163,994 in Q1 2025, compared to $6,351,760 in Q1 2024, representing a 92% increase[17] - Cash and cash equivalents increased to $107.9 million as of March 31, 2025, up from $99.4 million as of December 31, 2024[166] - Net cash provided by operating activities was $11,760,251 for the three months ended March 31, 2025, reflecting a net income of $4,956,456[167] Discontinued Operations - The company reported a net loss from discontinued operations of $133,081 in Q1 2025, compared to a loss of $467,066 in Q1 2024[13] - The company reported a loss from discontinued operations of $132,830 in Q1 2025, compared to a loss of $468,025 in Q1 2024[17] - Total assets of discontinued operations decreased to $169,707 as of March 31, 2025, down from $272,485 as of December 31, 2024, reflecting a decline of approximately 38%[75] - Total liabilities of discontinued operations decreased to $235,057 as of March 31, 2025, down from $509,745 as of December 31, 2024, a reduction of about 54%[75] Contracts and Future Revenue - The Company expects to earn approximately $18.6 million in revenue during the remainder of the year ending December 31, 2025, from contracts in progress[49] - As of March 31, 2025, the Company had unsatisfied or partially unsatisfied performance obligations representing approximately $149.3 million in aggregate transaction price for contracts with an original expected length of greater than one year[49] - The Company recognized revenue of approximately $1.4 million for the three months ended March 31, 2025, that was included in the contract liability balance as of December 31, 2024[49] Regulatory and Market Conditions - The company is currently negotiating a new retail license with OfReg, which may significantly reduce operating income and cash flows historically generated from retail operations[90] - Significant changes in legislation and regulation could adversely affect the company's business and financial condition[208] - Moody's downgraded The Bahamas' long-term issuer rating to B1 from Ba3, which could impact the company's financial condition[93] Impairments and Risks - The company recorded an impairment loss of $2.9 million for its manufacturing segment's goodwill due to updated projections of future cash flows[112] - The profitability of contracts is dependent on accurate cost estimation, with potential for significant adverse impacts on financial condition if costs exceed initial estimates[206] - The company cannot predict the impact of potential changes in tariffs or trade relations on its business operations and financial condition[97]