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Consolidated Water Reports Full Year 2024 Results

GEORGE TOWN, Cayman Islands, March 17, 2025 (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 year ended December 31, 2024. All comparisons are to the 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).

2024 Financial Highlights

  • Total revenue declined 26% to $134 million, due to two large construction projects that were underway in 2023 but were completed in June 2024. The company’s $204 million design-build-operate desalination plant project in Hawaii continues to progress towards the higher-revenue construction phase.
  • Retail revenue increased 5% to $31.7 million on higher sales volumes.
  • Bulk revenue decreased 3% to $33.7 million.
  • Manufacturing revenue increased by 1% to $17.6 million.
  • Services revenue declined by 48% to $51 million, due to a $60 million decline in construction revenue that was partially offset by a $9.9 million increase in recurring operations and maintenance (O&M) revenue and a $2.7 million increase in design and consulting revenue.
  • O&M recurring revenue increased 51% to $29.3 million. The increase was comprised of $6.1 million from REC, which was acquired in October 2023, and $3.9 million from PERC.
  • Net income from continuing operations attributable to company stockholders totaled $17.9 million or $1.12 per diluted share, compared to $30.7 million or $1.93 per diluted share in 2023.
  • Net income, including discontinued operations attributable to company stockholders, totaled $28.2 million or $1.77 per diluted share, compared to $29.6 million or $1.86 per diluted share in 2023.
  • Cash and cash equivalents totaled $99.4 million and working capital was $132.8 million as of December 31, 2024.

2024 Operational Highlights

  • Retail water sold by the company’s Grand Cayman water utility increased 4.5% to a record volume of 1.01 billion gallons. The increase was due to a record number of customer connections which were up 4.3% for the year.
  • Advanced through the piloting, design and permitting stages of a project to design, construct, operate and maintain a seawater desalination plant in Hawaii for the Honolulu Board of Water Supply.
  • Recognized $7.9 million in operations and maintenance revenue from the company’s REC subsidiary, which was acquired in October 2023 to provide a new channel for expansion in water-stressed regions of Colorado.

Dividend Increase

In August 2024, the company increased its quarterly dividend by 15.8% to $0.11 per share beginning in the fourth quarter of 2024.

Management Commentary

“Our revenue and operating income in 2024 from continuing operations were consistent with our expectations, particularly with the completion of the two major design-build projects early in the year,” commented Consolidated Water CEO, Rick McTaggart.

“We saw an improvement in profitability across our retail and manufacturing segments. Our strong retail water sales in our exclusive utility service area on Grand Cayman reflect a record volume of water sold to a record number of customers. This was primarily due to the ongoing growth in population and business activity on the island.

“Our bulk water segment revenue and gross profit remained relatively consistent from the previous year. Our services revenue declined due to the completion in the second quarter of the Liberty Utilities and Red Gate II construction projects which had a major impact on our 2023 revenue. The decline was partially offset by a 51% or nearly $10 million increase in recurring revenue from our operations and maintenance or O&M contracts.

“Most of this additional O&M revenue was generated by REC, our new Colorado subsidiary, that has provided us a new channel to expand our design-build and O&M businesses into water-stressed regions of Colorado. Other U.S.-based O&M contracts managed by our PERC Water subsidiary also contributed meaningfully to the increase.

“Our $204 million project to design, construct, operate and maintain a 1.7 million gallons per day seawater desalination plant for the Honolulu Board of Water Supply has been steadily advancing through the pilot, design and permitting stage. Due to delays unrelated to us, we now expect to begin the construction of this project early next year. We expect the construction phase to generate the largest portion of revenue from the project.

“Also important to note, about 80% of the plant’s construction fee is subject to adjustments for inflation from the date the contract was executed to the date construction begins. This will help protect our gross margin and profitability against most increases in the cost of goods and services.

“As announced last month, our wholly owned subsidiary, Cayman Water Company, received a new concession from the Cayman Islands government, granting it continued exclusive rights to produce and supply potable water within its service area on Grand Cayman. Discussions with the Cayman Islands utility regulator for the required license are anticipated to begin soon. Our existing operating license will remain in effect until the new one is received.

“Looking ahead, we remain excited about the future of Consolidated Water for many reasons. This includes the continued growth in water sales in Grand Cayman; the long-term, stable recurring revenue from our Caribbean-based bulk water business; and the growth potential of our U.S.-based manufacturing, design-build and O&M businesses.

“Supported by an exceptionally strong balance sheet, we will continue to invest in new infrastructure like the expansion of our West Bay plant to serve the growing water needs of our utility customers in Grand Cayman. We also plan to add additional manufacturing space for Aerex. We expect these investments to ultimately drive future retail and manufacturing revenue growth. Our strong balance sheet also enables us to move quickly and strategically on any potential acquisitions.

“We expect our construction revenue to remain below the record level set in 2023 until we commence construction of the desalination project in Hawaii. However, we see this major construction phase substantially adding to our revenue and earnings growth in 2026 and 2027.”

2024 Financial Summary

Revenue totaled $134 million, declining 26% from $180.2 million in 2023. The decrease was due to decreases of $47 million in the services segment and $922,000 in the bulk segment. The decreases were partially offset by increases of $1.6 million in the retail segment and $104,000 in the manufacturing segment.

Retail revenue increased due to a 4.5% increase in the volume of water sold. The volume of water sold increased due to a 4.3% increase in the number of customer accounts in the company’s license area during the year.

The decrease in bulk segment revenue was due to a decrease in the price of energy for CW-Bahamas which decreased the energy pass-through component of CW-Bahamas’ rates. The decrease in bulk segment revenue was partially offset by the revenue generated by the commencement on May 1, 2024, of the operations and maintenance contract for the new Red Gate desalination plant on Grand Cayman. The decrease also was partially offset by the additional revenue generated by the amendment of the company’s North Sound contract which also became effective on May 1, 2024.

The decrease in services segment revenue was due to plant construction revenue decreasing from $77.3 million in 2023 to $17.6 million in 2024 as the result of two construction projects being completed in 2024. Revenue generated under operations and maintenance contracts totaled $29.3 million in 2024, an increase of 51% from 2023. Newly acquired REC contributed $6.1 million to the increase, with the remainder related to incremental PERC contracts.

Manufacturing segment revenue increased by $104,000 to $17.6 million as compared to $17.5 million in 2023.

Gross profit for 2024 was $45.6 million (34.1% of total revenue), as compared to $61.9 million (34.4% of total revenue) in 2023.

Net income from continuing operations attributable to Consolidated Water stockholders for 2024 was $17.9 million or $1.12 per diluted share, compared to net income of $30.7 million or $1.93 per diluted share in 2023.

Including discontinued operations, net income attributable to Consolidated Water stockholders for 2024 was $28.2 million or $1.77 per diluted share, compared to net income of $29.6 million or $1.86 per diluted share in 2023.

Cash and cash equivalents totaled $99.4 million as of December 31, 2024, with working capital of $132.8 million, debt of $0.2 million, and stockholders’ equity of $210 million.

Full Year Segment Results

                                     
    Year Ended December 31, 2024
    Retail   Bulk   Services   Manufacturing   Corporate   Total
Revenue   $ 31,741,343     $ 33,673,387   $ 50,956,489     $ 17,595,414   $     $ 133,966,633  
Cost of revenue     14,199,088       23,360,360     38,511,535       12,271,202           88,342,185  
Gross profit     17,542,255       10,313,027     12,444,954       5,324,212           45,624,448  
General and administrative expenses     3,263,593       1,564,975     6,055,409       2,456,807     14,196,652       27,537,436  
Gain on asset dispositions and impairments, net     2,286           2,714           192,786       197,786  
Income (loss) from operations     14,280,948       8,748,052     6,392,259       2,867,405     (14,003,866 )     18,284,798  
Interest income     198,180       865,584     458,732       4     571,690       2,094,190  
Interest expense     (93,368 )         (8,409 )         (70 )     (101,847 )
Income from affiliates                     16,701     252,754       269,455  
Other     78,647       39,625     (5,634 )     11,993     7,247       131,878  
Other income, net     183,459       905,209     444,689       28,698     831,621       2,393,676  
Income (loss) before income taxes     14,464,407       9,653,261     6,836,948       2,896,103     (13,172,245 )     20,678,474  
Provision for income taxes               1,528,398       672,040     18,076       2,218,514  
Net income (loss) from continuing operations     14,464,407       9,653,261     5,308,550       2,224,063     (13,190,321 )     18,459,960  
Income from continuing operations attributable to non-controlling interests           577,590                     577,590  
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders   $ 14,464,407     $ 9,075,671   $ 5,308,550     $ 2,224,063   $ (13,190,321 )     17,882,370  
Net income from discontinued operations                                   10,355,184  
Net income attributable to Consolidated Water Co. Ltd. stockholders                                 $ 28,237,554  
                                     
    Year Ended December 31, 2023
    Retail   Bulk   Services   Manufacturing   Corporate   Total
Revenue   $ 30,158,051     $ 34,595,058   $ 97,966,650     $ 17,491,474   $     $ 180,211,233  
Cost of revenue     13,891,229       24,128,132     66,797,762       13,467,005           118,284,128  
Gross profit     16,266,822       10,466,926     31,168,888       4,024,469           61,927,105  
General and administrative expenses     2,978,164       1,737,264     4,271,808       1,838,284     13,926,846       24,752,366  
Gain (loss) on asset dispositions and impairments, net     (21,716 )     12,720           2,233     (349 )     (7,112 )
Income (loss) from operations     13,266,942       8,742,382     26,897,080       2,188,418     (13,927,195 )     37,167,627  
Interest income     181,468       362,422     151,706       4     808       696,408  
Interest expense     (123,867 )         (21,417 )               (145,284 )
Income from affiliate                         169,728       169,728  
Other     93,795       10,793     1,024       2,020     (171 )     107,461  
Other income, net     151,396       373,215     131,313       2,024     170,365       828,313  
Income (loss) before income taxes     13,418,338       9,115,597     27,028,393       2,190,442     (13,756,830 )     37,995,940  
Provision (benefit) for income taxes               6,388,457       440,111     (78,554 )     6,750,014  
Net income (loss) from continuing operations     13,418,338       9,115,597     20,639,936       1,750,331     (13,678,276 )     31,245,926  
Income from continuing operations attributable to non-controlling interests           573,791                     573,791  
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders   $ 13,418,338     $ 8,541,806   $ 20,639,936     $ 1,750,331   $ (13,678,276 )     30,672,135  
Net loss from discontinued operations                                   (1,086,744 )
Net income attributable to Consolidated Water Co. Ltd. stockholders                                 $ 29,585,391  
 

Revenue earned by major geographic region was:

                   
    Year Ended December 31,
    2024   2023   2022
Cayman Islands   $ 37,137,424   $ 41,728,340   $ 30,375,985
The Bahamas     29,675,947     31,221,633     29,943,615
United States     66,662,406     106,768,621     33,338,466
Revenue earned from management services agreement with OC-BVI     490,856     492,639     446,906
    $ 133,966,633   $ 180,211,233   $ 94,104,972
 

The following table presents the company’s revenue disaggregated by revenue source.

                   
    Year Ended December 31,
    2024   2023   2022
Retail revenue   $ 31,741,343   $ 30,158,051   $ 25,954,013
Bulk revenue     33,673,387     34,595,058     32,991,066
Services revenue     50,956,489     97,966,650     28,835,428
Manufacturing revenue     17,595,414     17,491,474     6,324,465
Total revenue   $ 133,966,633   $ 180,211,233   $ 94,104,972
 

Services revenue consists of the following:

                   
    Year Ended December 31,
    2024   2023   2022
Construction revenue   $ 17,637,432   $ 77,306,704   $ 11,616,274
Operations and maintenance revenue     29,307,405     19,368,365     14,152,158
Design and consulting revenue     4,011,652     1,291,581     3,066,996
Total services revenue   $ 50,956,489   $ 97,966,650   $ 28,835,428
 

Annual General Meeting of Shareholders

The company has set May 27, 2025 as the date of its Annual General Meeting of Shareholders to be held at 3:00 p.m. Cayman Islands time (4:00 p.m. EDT) at the Westin Grand Cayman Seven Mile Beach Resort & Spa, Seven Mile Beach, Grand Cayman, Cayman Islands. Holders of record of the company’s stock as of March 28, 2025 will be entitled to vote at the meeting.

Conference Call
Consolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period.

Date: Tuesday, March 18, 2025
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: 1237348

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting with the 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 March 25, 2025, 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: 1237348

About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States. The company recently entered the U.S. desalination market with a contract to design, construct, operate and maintain a seawater desalination plant in Hawaii.

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 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 collection of its delinquent accounts receivable in the Bahamas; and (v) various other risks such as economic, operational, and industry-specific 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 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
Email Contact

Investor & Media Contact:
Ron Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
Email Contact

CONSOLIDATED WATER CO. LTD.
 
CONSOLIDATED BALANCE SHEETS
             
    December 31,
    2024   2023
ASSETS            
Current assets            
Cash and cash equivalents   $ 99,350,121   $ 42,621,898
Accounts receivable, net     39,580,982     38,226,891
Inventory     8,960,350     6,044,642
Prepaid expenses and other current assets     5,153,984     4,056,370
Contract assets     4,470,243     21,553,057
Current assets of discontinued operations     272,485     211,517
Total current assets     157,788,165     112,714,375
Property, plant and equipment, net     52,432,282     55,882,521
Construction in progress     5,143,717     495,471
Inventory, noncurrent     5,338,961     5,045,771
Investment in affiliates     1,504,363     1,412,158
Goodwill     12,861,404     12,861,404
Intangible assets, net     2,696,815     3,353,185
Operating lease right-of-use assets     3,190,985     2,135,446
Other assets     2,356,489     3,407,973
Long-term assets of discontinued operations         21,129,288
Total assets   $ 243,313,181   $ 218,437,592
             
LIABILITIES AND EQUITY            
Current liabilities            
Accounts payable, accrued expenses and other current liabilities   $ 9,057,179   $ 11,604,369
Accrued compensation     3,336,946     3,160,030
Dividends payable     1,780,841     1,572,655
Current maturities of operating leases     634,947     456,865
Current portion of long-term debt     126,318     192,034
Contract liabilities     9,126,654     6,237,011
Deferred revenue     365,879     317,017
Current liabilities of discontinued operations     509,745     364,665
Total current liabilities     24,938,509     23,904,646
Long-term debt, noncurrent     70,320     191,190
Deferred tax liabilities     210,893     530,780
Noncurrent operating leases     2,630,812     1,827,302
Other liabilities     153,000     153,000
Total liabilities     28,003,534     26,606,918
Commitments and contingencies            
Equity            
Consolidated Water Co. Ltd. stockholders’ equity            
Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 44,004 and 44,297 shares, respectively     26,402     26,578
Class A common stock, $0.60 par value. Authorized 24,655,000 shares; issued and outstanding 15,846,345 and 15,771,545 shares, respectively     9,507,807     9,462,927
Class B common stock, $0.60 par value. Authorized 145,000 shares; none issued        
Additional paid-in capital     93,550,905     92,188,887
Retained earnings     106,875,581     85,148,820
Total Consolidated Water Co. Ltd. stockholders’ equity     209,960,695     186,827,212
Non-controlling interests     5,348,952     5,003,462
Total equity     215,309,647     191,830,674
Total liabilities and equity   $ 243,313,181   $ 218,437,592
 
CONSOLIDATED WATER CO. LTD.
 
CONSOLIDATED STATEMENTS OF INCOME
                   
    Year Ended December 31,
    2024   2023   2022
Revenue   $ 133,966,633     $ 180,211,233     $ 94,104,972  
Cost of revenue     88,342,185       118,284,128       63,749,849  
Gross profit     45,624,448       61,927,105       30,355,123  
General and administrative expenses     27,537,436       24,752,366       21,070,234  
Gain (loss) on asset dispositions and impairments, net     197,786       (7,112 )     (12,704 )
Income from operations     18,284,798       37,167,627       9,272,185  
                   
Other income (expense):                  
Interest income     2,094,190       696,408       447,186  
Interest expense     (101,847 )     (145,284 )     (46,545 )
Equity in the earnings of affiliates     269,455       169,728       102,225  
Loss on put/call options                 (128,000 )
Other     131,878       107,461       89,944  
Other income, net     2,393,676       828,313       464,810  
Income before income taxes     20,678,474       37,995,940       9,736,995  
Provision for income taxes     2,218,514       6,750,014       396,739  
Net income from continuing operations     18,459,960       31,245,926       9,340,256  
Income from continuing operations attributable to non-controlling interests     577,590       573,791       1,112,913  
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders     17,882,370       30,672,135       8,227,343  
Net income (loss) from discontinued operations     10,355,184       (1,086,744 )     (2,371,049 )
Net income attributable to Consolidated Water Co. Ltd. stockholders   $ 28,237,554     $ 29,585,391     $ 5,856,294  
                   
Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders                  
Continuing operations   $ 1.13     $ 1.95     $ 0.54  
Discontinued operations     0.65       (0.07 )     (0.16 )
Basic earnings per share   $ 1.78     $ 1.88     $ 0.38  
                   
Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders                  
Continuing operations   $ 1.12     $ 1.93     $ 0.54  
Discontinued operations     0.65       (0.07 )     (0.16 )
Diluted earnings per share   $ 1.77     $ 1.86     $ 0.38  
                   
Dividends declared per common and redeemable preferred shares   $ 0.41     $ 0.36     $ 0.34  
                   
Weighted average number of common shares used in the determination of:                  
Basic earnings per share     15,832,328       15,739,056       15,290,509  
Diluted earnings per share     15,935,962       15,865,897       15,401,653