GEORGE TOWN, Cayman Islands, May 15, 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 first quarter ended March 31, 2024. All comparisons are to the same prior year period unless otherwise noted. The company will hold a conference call at 11:00 a.m. Eastern time tomorrow to discuss the results (see dial-in information below). First Quarter 2024 Financial Highlights Total revenue up 21% to $39.7 million. Retail revenue up 11% to $8.6 million. Services revenue increased 37% to $17.4 million, with recurring services revenue generated from operations and maintenance contracts up 93% to $7.1 million. Manufacturing revenue increased 57% to $5.3 million.  Net income from continuing operations attributable to company stockholders was $6.9 million or $0.43 per diluted share, as compared to $4.1 million or $0.26 per diluted share in the first quarter of 2023. Cash and cash equivalents totaled $46.2 million and working capital was $95.0 million as of March 31, 2024. First Quarter 2024 Operational Highlights Recognized $4.9 million in revenue on the construction of a $81 million water treatment plant in Goodyear, Arizona, being completed by the company's subsidiary, PERC Water Corporation (PERC). The project was certified substantially complete in January 2024, with the remaining work planned for completion by the end of the second quarter of this year. Volume of retail water sold in the company's licensed service area increased 10% to a record 267.6 million gallons. Continued construction of a new 2.6 million gallon per day Red Gate desalination plant in Grand Cayman and received substantial completion from the customer on May 1st. Continued piloting, design and permitting for a $150 million project to design, construct, operate and maintain a seawater desalination plant in Hawaii announced in June of last year. Recognized $1.8 million in operations and maintenance revenue from Ramey Environmental Compliance, Inc. (REC). REC was acquired by the company in October 2023 to create a new channel for expansion of the company's presence in water-stressed regions in Colorado. Management Commentary "In Q1, we reported a 21% increase in revenue to $39.7 million, reflecting strong growth across three of our four business segments," stated company CEO, Rick McTaggart. "Our retail water segment benefited from a 10% increase in the volume of water sold to customers in our exclusive utility license area on Grand Cayman, with this increase largely due to resident population growth and less rainfall during the quarter. "Our 37% growth in services segment revenue resulted from slightly higher design-build revenue along with a 93% increase in recurring operating and maintenance revenue generated by PERC and our newly acquired subsidiary, REC. "In the first quarter, we recognized the addition of $1.8 million in operations and maintenance revenue from REC. REC's stellar track record and industry reputation gives us a very effective new channel to provide design-build and operations services in water-stressed regions of Colorado. REC operates and maintains water and wastewater treatment plants and provides technical services to more than 100 clients in the mountain and eastern plains regions of Colorado which is very similar to PERC's O&M business. "PERC's strong operating performance and revenue growth continues to significantly improve the results of our services segment and our top and bottom line. Its expanding presence in the Southwestern U.S. — a region that urgently needs new fresh water sources due to population growth and continued drought conditions — has positioned us for further growth and development in this important segment of our business. "During the quarter, we continued our site investigation, engineering, permitting and public outreach under our contract to design, construct, operate and maintain a $150 million seawater desalination plant in Oahu, Hawaii. We completed the installation and commissioning of the Hawaii pilot plant during the quarter and on schedule. "We anticipate recognizing significantly more revenue from the Hawaii project beginning in 2025, particularly in the second half when we expect to break ground on construction of the full plant. We believe our 50 years of experience in designing, building and operating many of the world's most energy-efficient seawater desalination plants will ensure that this project is successful and will exceed the expectations of our client, the Board of Water Supply of Honolulu. "We also believe our entrance into the U.S. desalination market in Hawaii positions us well for other opportunities we see emerging in the drought-stricken Western Continental U.S. "Looking ahead, we remain very optimistic about our future growth prospects and for many reasons. This includes water sales growth in Grand Cayman and our Hawaii design-build-operate project underway, as well as the robust project bidding activity we continue to see in the Western U.S. We are currently pursuing a number of design and build projects which could begin in 2025 and subsequent years. "We believe our highly efficient and aesthetically pleasing treatment plant designs, world-class operating and maintenance capabilities, and our innovative project delivery models are all superior to others and therefore provide us with strong competitive advantages. Combined with flourishing markets, we believe this all represents strong drivers for growth, increased profitability, and further strengthening of shareholder value." First Quarter 2024 Financial Summary Revenue totaled $39.7 million, up 21% compared to $32.9 million in the first quarter of 2023. The increase was primarily driven by increases of $0.9 million in the retail segment, $4.7 million in the services segment and $1.9 million in the manufacturing segment. The increase was partially offset due to a decrease of $0.7 million in the bulk segment. Retail revenue increased primarily due to a 6% increase in the volume of water sold. The volume of water sold in the Cayman Water license area to retail end-user customers increased by 10% due to resident population growth and less rainfall on Grand Cayman in the first quarter of 2024. The increase was partially offset by a decrease in the volume of water sold directly to the Water Authority - Cayman. The decrease in bulk segment revenue was due to a decrease of 2% in the volume of water sold by CW-Bahamas and lower energy costs, which decreased the energy pass-through component of the company's bulk water rates. The increase in services segment revenue was primarily due to plant construction revenue increasing 6% to $9.2 million. The company recognized approximately $4.9 million in revenue for the construction of the water treatment plant in Goodyear, Arizona. Revenue generated under operations and maintenance contracts totaled $7.1 million in the first quarter of 2024, up 93% from the first quarter of 2023. REC contributed $1.8 million of the increase, with the remainder of the increase related to new PERC contracts. The increase in manufacturing segment revenue was due to higher project activity. Gross profit for the first quarter of 2024 was $13.9 million or 35% of total revenue, up 31% from $10.6 million or 32% of total revenue in the first quarter of 2023. Net income from continuing operations attributable to stockholders for the first quarter of 2024 was $6.9 million or $0.43 per diluted share, compared to net income of $4.1 million or $0.26 per diluted share in the first quarter of 2023. Net income attributable to Consolidated Water stockholders for the first quarter of 2024, which includes the results of discontinued operations, was $6.5 million or $0.40 per diluted share, up from net income of $3.8 million or $0.24 per diluted share in the first quarter of 2023. Cash and cash equivalents totaled $46.2 million as of March 31, 2024, with working capital of $95.0 million, debt of $0.3 million, and stockholders' equity of $192.1 million. First Quarter Segment Results   Three Months Ended March 31, 2024   Retail   Bulk   Services   Manufacturing   Total Revenue $ 8,624,938     $ 8,342,094     $ 17,417,611     $ 5,304,747     $ 39,689,390   Cost of revenue   3,551,344       5,565,258       12,668,939       4,025,826       25,811,367   Gross profit   5,073,594       2,776,836       4,748,672       1,278,921       13,878,023   General and administrative expenses   4,104,332       344,141       1,597,854       517,702       6,564,029   Income from operations $ 969,262     $ 2,432,695     $ 3,150,818     $ 761,219       7,313,994   Other income, net                                   418,184   Income before income taxes                                   7,732,178   Provision for income taxes                                   621,696   Net income from continuing operations                                   7,110,482   Income from continuing operations attributable to non-controlling interests                                   169,068   Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders                                   6,941,414   Net loss from discontinued operations                                   (467,066 ) Net income attributable to Consolidated Water Co. Ltd. stockholders                                 $ 6,474,348                                             Three Months Ended March 31, 2023   Retail   Bulk   Services   Manufacturing   Total Revenue $ 7,771,095     $ 9,004,373     $ 12,721,701     $ 3,371,821     $ 32,868,990   Cost of revenue   3,550,794       6,243,146