Consolidated Water(US:CWCO)2023-05-16 19:02Financial Data and Key Metrics Changes - The company reported a 68% increase in revenue to $32.9 million for Q1 2023, with revenue growth across all four business segments [2][17] - Net income attributable to shareholders for Q1 2023 was $3.8 million or $0.24 per share, up from $1.7 million or $0.11 per share in Q1 2022 [19] - Gross profit for Q1 2023 was $10.6 million, representing 32.1% of total revenue, an increase of 48% from $7.1 million in Q1 2022 [34] Business Segment Data and Key Metrics Changes - Retail segment revenue increased by $1.5 million, driven by a 20% increase in water volume sold, partly due to increased tourist activity [17][21] - Services segment revenue rose by $8 million, primarily due to PERC Water's progress on a water treatment plant project in Goodyear, Arizona [3][18] - Manufacturing segment revenue increased by $2.2 million, attributed to improved production activity and supply chain conditions [8][22] Market Data and Key Metrics Changes - The Bahamas operations saw a 9% increase in water volume sold, reflecting a rebound in the local economy post-COVID [33] - Tourist arrivals in the Cayman Islands were higher than in Q4 2022 but still below pre-pandemic levels, impacting retail water sales [11][13] Company Strategy and Development Direction - The company is optimistic about growth due to the recovery of tourism in Grand Cayman and ongoing construction projects in the U.S. and Caribbean [24][39] - The acquisition of PERC Water has significantly enhanced the company's operational capabilities and financial performance, with plans for further strategic transactions [4][38] Management's Comments on Operating Environment and Future Outlook - Management noted that retail sales are expected to return to normal seasonal patterns, with lower sales during rainier periods and off-peak tourism months [36] - The company anticipates positive impacts from over $150 million in major multi-year projects secured last year [24][39] Other Important Information - Cash and cash equivalents totaled $51.1 million, with working capital at $70.6 million and minimal debt of $300,000 [9] - The company is evaluating two potential acquisitions to complement PERC Water and enhance its technology offerings [23] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management expressed optimism about continued growth due to recovering tourism and ongoing projects, expecting significant revenue contributions from secured contracts [24][39] Question: How is the company addressing supply chain issues? - The company reported relief from supply chain constraints, allowing for improved order backlog management and production activity [22] Question: What is the outlook for the manufacturing segment? - Management expects improved and consistent results in the manufacturing segment due to a diversified customer base and returning business from major clients [37]