Q1 2024 Consolidated Water Co Ltd Earnings Call
Operator: Good morning. Thank you for joining us today to discuss Consolidated Water Company's first quarter of 2024 results. Hosting the call today is Rick McTaggart, Chief Executive Officer of Consolidated Water Company, and the company's Chief Financial Officer, David Sasnett. Following their remarks, we'll open the call to your questions. At any time during the call, you may join the Q&A queue by pressing star, then 1 on your keypad. Before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made by the company during the call.
Good morning.
Thank you for joining us today to discuss consolidated water company's first quarter of 2024 results.
Speaker Change: Hosting the call today is chief Executive Officer of consolidated water company, It Rick Mctaggart, and the company's Chief Financial Officer, David Sasnett.
Speaker Change: Following their remarks, we'll open the call to your questions.
Speaker Change: At times during the call you'll be joining the Q&A queue by pressing Star then one on your Q pad.
Speaker Change: Before we conclude today's call I'll provide some important cautions regarding forward looking statements made by the company during the call.
Operator: I'd like to remind everyone that today's call is being recorded and will be made available for telecom replay per the instructions in yesterday's press release, which is available in the investor relations section of the company's website. Now, I'd like to turn the call over to Consolidated Water Company's CEO, Rick McTaggart. Sir, please go ahead.
Speaker Change: I'd like to remind everyone that today's call is being recorded and will be made available for telecom replay instructions in yesterday's press release, which is available in the Investor Relations section of the company's website.
Speaker Change: Now I'd like to turn the call over to consolidated water company's CEO, Rick Mctaggart, Sir. Please go ahead.
Frederick W. McTaggart: Thank you Rocco and good morning, everyone. Thank you for joining us today to discuss our results for our first quarter of 2024.
Frederick W. McTaggart: Thank you, Rocco, and good morning, everyone. Thank you for joining us today to discuss our results for the first quarter of 2024. As you saw in our press release issued yesterday, we reported a 21% increase in revenue to $39.7 million for the quarter, with substantial growth across three of our four business segments. The retail water segment benefited from a 10% increase in the volume of retail water sold within our utility service area on Grand Cayman, and we believe this was due to resident population growth and lower rainfall amounts on Grand Cayman during the first quarter of this year compared to the first quarter Retail revenues also benefited to a lesser extent from non-recurring water sales to the Water Authority Cayman and water truckers during the quarter.
Frederick W. McTaggart: Our services segment revenue was $17.4 million this quarter, a 37% or $4.7 million increase compared to last year. This increase resulted from slightly higher design-build revenues and a 93% increase in recurring operating and maintenance revenue generated by PERC and our newest subsidiary, Ramey Environmental Compliance, or REC. During the first quarter, we recognized $1.8 million in operations and maintenance revenue from REC, which we acquired in October of last year. REC's stellar track record and industry reputation provide a very effective new channel for the company to provide design, build, and operation services in water-stress regions of Colorado. RAC 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. REC's O&M business is very similar to Perth.
Frederick W. McTaggart: As you saw in our press release issued yesterday, we reported a 21% increase in revenue to 39 7 million for the quarter with substantial growth across three of our four business segments.
Frederick W. McTaggart: Our retail water segment benefited from a 10% increase in the volume of retail water sold within our utility service area on Grand Cayman and we believe this was due to resident population growth and lower rainfall amounts on Grand Cayman during the first quarter of this year compared to the first quarter.
2023.
Frederick W. McTaggart: Retail revenues also benefited to a lesser extent from nonrecurring water sales to the water authority Cayman and water truckers during the quarter.
Frederick W. McTaggart: Our services segment revenue was $17 4 million this quarter.
Speaker Change: The 37% or $4 $7 million increased compared to last year.
Speaker Change: This increase resulted from slightly higher design build revenues, maybe 93% increase in recurring operating and maintenance revenue generated by PERC and our newest subsidiary Raimi environmental compliance or already see.
Speaker Change: During the first quarter, we recognized $1 8 million in operations and maintenance revenue from our E C, which we acquired in October of last year.
Speaker Change: Are you seeing stellar track record and industry reputation.
Speaker Change: <unk> is a very effective new channels for the company to provide design build and operation services in water stressed regions of Colorado.
Speaker Change: Our U C operates and maintains water and wastewater treatment plants and provides technical services to more than 100 clients and the mountain in eastern Plains regions in Colorado.
Speaker Change: He sees the O&M business is very similar to perks.
Frederick W. McTaggart: Strong operating performance and revenue growth continue to significantly improve the results of our services segment on both the top and bottom lines. Its expanding presence in the southwest U.S., a region that urgently needs new fresh water resources due to population growth and continued drought conditions, has positioned us for further growth and development in this important segment of our business. In Hawaii, during the quarter, we continued our site investigations, engineering, permitting, and public outreach under our contract to design, construct, operate, and maintain a $150 million seawater desalination plant in Oahu, Hawaii.
Speaker Change: Very strong operating performance and revenue growth continues to significantly improve the results of our services segment and our top and bottom line.
Speaker Change: It's expanding presence in the southwest U S. A region that urgently needs new freshwater.
Speaker Change: Resources.
Speaker Change: You do population growth and continued drought conditions.
Speaker Change: This positioned us for further growth and development in this important segment of our business.
Speaker Change: In Hawaii during the quarter, we continued our site investigations engineering permitting and public outreach under our contract to design construct operate and maintain.
Speaker Change: $850 million seawater desalination plant in Oahu, Hawaii.
Frederick W. McTaggart: We're pleased to report that we completed the installation and commissioning of the Hawaii Pilot Plant during the quarter and on schedule. This pilot plant is collecting the detailed operating data necessary for the final design and permitting of the full-scale project and is scheduled to continue operating well into 2025. Hawaii project is comprised of a two-year development phase and two-year construction phase, followed by a 20-year operating phase, after which there are two potential five-year operating phase extensions that can be implemented at the client's option.
Speaker Change: We're pleased to report that we completed the installation and commissioning of the Hawaii pilot plant during the quarter.
Speaker Change: Schedule.
Speaker Change: This pilot plant is collecting the detailed operating data necessary.
Speaker Change: Final design and permitting the full scale project and is scheduled to continue operating well into 2025.
Speaker Change: Hawaii project is comprised of a two year development phase in two year construction phase followed by a 20 year operating phase.
Speaker Change: After which there are two potential five year operating phase extensions that can be implemented at the client's option.
Frederick W. McTaggart: Now, before discussing more about recent developments and our outlook for the rest of the year, I would like to turn the call over to our CFO, David Sasnett, who will take us through the financial details for the quarter.
Speaker Change: Now before discussing more about recent developments and our outlook for the rest of the year.
Speaker Change: I'd like to turn the call over to our CFO, David Sasnett, who will take us through.
David W. Sasnett: Financial details for the quarter.
David W. Sasnett: Yeah. Thanks, Rick.
David W. Sasnett: Thanks Rick. Good morning everyone. As Rick mentioned, our revenue for the first quarter of 2024 totaled $39.7 million, which represents a 21% increase over the revenue we generated for the first quarter of last year. This increase was driven by revenue increases of $854,000 in our retail segment. $4.7 million in our services segment and $1.9 million in our manufacturing segment. These increases were partially offset by a decrease of $662,000 in our bulk segment revenue.
David W. Sasnett: Good morning, everyone.
Greg: As Greg mentioned, our retail revenue for the first quarter 2024 totaled $39 7 million, which.
David W. Sasnett: Which represents a 21% increase.
David W. Sasnett: Revenue, we generated for the first quarter last year.
David W. Sasnett: This increase was driven by revenue increases of 854000 in our retail segment.
David W. Sasnett: $4 7 million in our services segment and $1 9 million in our manufacturing segment.
David W. Sasnett: These increases were partially offset by a decrease of 662000 and our bulk segment revenue.
David W. Sasnett: Our retail revenue increased due to an overall 6% increase in the volume of water we sold during the quarter. However, the volume of water sold to consumers within our retail service area actually increased by 10%, to a record 267.6 million gallons for the quarter. This increase was partially offset by lower sales to the Water Authority Cayman, which purchased water for our retail operations in the first quarter of 2023 and also purchased water in the first quarter of 2024, but to a lesser extent.
David W. Sasnett: Our retail revenue increased due to an overall, 6% increase in the volume of water we sold during the quarter.
However, the volume of water sold to consumers for down our retail service area actually increased by 10% to a record 267 6 million gallons for the quarter.
David W. Sasnett: This increase was partially offset by lower sales to the water authority, Cayman, which purchased water for our retail operations in the first quarter of 2023.
David W. Sasnett: And also purchased water in the first quarter of 2024, but to a lesser extent than last year.
David W. Sasnett: We believe the increase in volume of water sold within our retail service area was impacted by resident population growth. Less rainfall occurred on Grand Cayman in the first quarter of 2024 as compared to the first quarter of 2023.
David W. Sasnett: We believe the increase in volume of water sold within our retail service area was impacted by resident population growth.
David W. Sasnett: Less rainfall on Grand Cayman in the first quarter of 2024 as compared to the first quarter of 2023.
David W. Sasnett: In September of last year, the government of the Cayman Islands reported the results of a labor survey which estimated that the population of the Cayman Islands had increased to more than 83,000 by mid-2023, reflecting a 2.6% increase over the previous 12 month period. Most of this growth was driven by an increase of more than 10,000 expatriate workers on the islands between December 2021 and June 2023. This government data is consistent with a 2.8% increase in the number of customers within our retail service area between March 2023 and March 2024.
David W. Sasnett: In September of last year, the government of the Cayman Islands reported results of the Labor survey, which estimated that the population of the Cayman Islands had increased to more than 83000 by mid 2023.
David W. Sasnett: Reflecting a two 6% increase over the previous 12 month period.
David W. Sasnett: Most of this growth has been driven by an increase of more than 10000 expatriate workers on the Atlas between December 2021, and June 2023 disc.
Speaker Change: This government data is consistent with a two 8% increase in the number of customers within our retail service area between March 2023, and March 2024.
David W. Sasnett: We desalinated and sold more water in the first quarter of 2024 than in any other quarter in the history of our company. However, our bulk segment revenue decreased by 7% or $662,000 due to a decrease of 2% in the volume of water sold by or through our Bahamas subsidiary, as well as lower energy costs that decreased the energy pass-through component of our bulk water rates in the Bahamas. The increase in services segment revenue was due to an increase in both construction revenue and revenue from operations and maintenance contracts.
Speaker Change: Desalinated and sold more water in the first quarter of 2024 than in any other quarter in the history of our company.
Speaker Change: Our bulk segment revenue decreased by 7% or 662000 due to a decrease of 2% in the volume of water sold by.
Speaker Change: Our Bahamas subsidiary.
Speaker Change: As well as lower energy costs that increased the energy pass through component of our bulk water rates in the Bahamas.
Speaker Change: The increase in services segment revenue was due to an increase in bus construction revenue and revenue from operations and maintenance contracts, most notably revenue generated under operations and maintenance contracts increased 93% to $7 1 million in the first quarter as compared to the first quarter of last year.
David W. Sasnett: Most notably, revenue generated under operations and maintenance contracts increased 93 percent to $7.1 million in the first quarter as compared to the first quarter of last year. Included in this $7.1 million increase is approximately $1.8 million generated from our new subsidiary, REC.
Speaker Change: Included in the $7 $1 billion increase is approximately 1.8 million generated from our new subsidiary.
David W. Sasnett: The remainder of this increase in O&M revenue is attributable to new contracts for PERC. The increase in our manufacturing segment revenue was due to increased production activity. Gross profit in the first quarter was $13.9 million, or 35% of total revenue, which was up 31% from $10.6 million, or 32% of total revenue, in the first quarter of last year. Net income attributable to Consolidated Water stockholders for the first quarter of 2024, which included the results of discontinued operations, was $6.5 million or $0.40 per diluted share.
Speaker Change: Or you see the remainder of this increase in O&M revenue is attributable to new contracts for PERC.
Speaker Change: The increase in our manufacturing segment revenue was due to increased production activity.
Speaker Change: Gross profit in the first quarter was $13 9 million or 35% of total revenue.
Speaker Change: Which was up 31% from $10 6 million or 32% of total revenue in the first quarter of last year.
Speaker Change: Net income attributable to consolidated water stockholders for the first quarter of 2024, which included the results of discontinued operations.
Speaker Change: The $6 5 million or 40 cents per diluted share.
David W. Sasnett: This was up from our net income of $3.8 million, or 24% per diluted share, for the first quarter of 2023. Now turning to the balance sheet and our financial condition, our cash and cash equivalents totaled $46.2 million as of March 31, 2024. Working capital was $95 million, and our debt was just $333,000. Total Stockholders' Equity. $192.1 million. As evidenced by these strong numbers, we continue to maintain ample levels of liquidity and credit capacity and are in an extremely solid financial condition.
Speaker Change: This was up from a net income of $3 8 million or 24% per diluted share for the first quarter of 2023.
David W. Sasnett: Included in our working capital as of March 31st, 2024, are $25.6 million of accounts receivable due to our C.W. Bahamas subsidiary from the Water and Sewage Corporation of the Bahamas. During meetings with the Water and Sewage Corporation in March 2024 and with representatives of the Bahamas government in April 2024, we were informed that the Bahamas government intends to reduce CW Bahamas' accounts receivable to below $20 million by June 30th and then to below $10 million by the end of this year.
Now turning to the balance sheet and our financial condition, our cash and cash equivalents totaled $46 2 million as of March 31, 2024, working capital was 85 was $95 million and our debt was just 333000.
Speaker Change: Total stockholders equity was $192 1 million.
Speaker Change: As evidenced by these strong numbers, we continue to maintain ample levels of liquidity and credit capacity and an extremely solid financial condition.
Speaker Change: Yeah.
Speaker Change: Included in our working capital as of March 31, 2024, or $25 $6 million of accounts receivable due to our CW Bahamas subsidiary.
Speaker Change: On the water and sewage corporation of the Bahamas.
Speaker Change: During meetings with the water and sewage Corporation in March 22024, and with Representatives of the Bahamas government in April 2024, we Werent formed at the Bahamas government intends to reduce CW Bahamas accounts receivable to below 20 million by June 30th.
Speaker Change: And then to below 10 million by the end of this year.
David W. Sasnett: Our projected liquidity requirements for the balance of 2024 include capital expenditures for our existing operations of approximately $9 million, which includes approximately $2.8 million to be incurred for our new West Bay plant. Our liquidity requirements may also include future quarterly dividends if such dividends are declared by the board. We paid $1.6 million in dividends in April 2024, and this completes our financial summary. With that, I'd like to turn the call back over to Rick.
Speaker Change: Our projected liquidity requirements for the balance of 2024 include capital expenditures for existing operations of approximately $9 million, which includes approximately $2 8 million to be incurred for our new West Bay plant.
Speaker Change: Our liquidity requirements May also include future quarterly dividends, if such dividends are declared by the board.
Speaker Change: Paid approximately $1 6 million in dividends in April 2024.
Speaker Change: And this completes our financial summary, with that I'd like to turn the call back over to Rick.
Frederick W. McTaggart: Thanks, David.
Frederick W. McTaggart: We believe our strong first quarter results once again reaffirm our growth strategy, which is to focus on the most water-stressed regions of the U.S. and Caribbean as areas that will benefit the most from our state-of-the-art desalination solution, our highly efficient and aesthetically pleasing water treatment plant designs, our world-class operating and maintenance capabilities, and our innovative project delivery models, which we believe are all superior to our competitors. In our U.S.-based manufacturing business, we successfully diversified our manufacturing customer base in terms of concentration and types of products over the past several years, and we anticipate that such diversification will support improved results and provide more consistent financial performance in future periods.
We believe our strong first quarter results once again reaffirms our growth strategy, which is to focus on the most water stressed regions of the U S and Caribbean, there's areas that will benefit the most from our state of the art desalination solutions are highly efficient and aesthetically pleasing water.
Frederick W. McTaggart: Treatment plant designs.
Frederick W. McTaggart: Our world class operating and maintenance capabilities in.
Frederick W. McTaggart: And our innovative project delivery models that we believe are all superior to our competitors.
Speaker Change: In our U S based manufacturing business, we successfully diversified our manufacturing customer base in terms of concentration and types of products over the past several years.
Speaker Change: And we anticipate that such diversification will support improved results.
Speaker Change: Provide more consistent financial performance and future periods.
Frederick W. McTaggart: Last year, business returned from our historically largest manufacturing customer and remained strong in the first quarter, and it is expected to continue to remain strong through the first half of this year. We also believe that orders from this customer will be more regular and consistent in terms of value.
Speaker Change: Last year business returned from our historically largest manufacturing customer.
Speaker Change: And remained strong in the first quarter.
Speaker Change: It is expected to continue to remain strong through the first half of this year.
Speaker Change: We also believe that orders from this customer will be more regular and consistent in terms of value.
Frederick W. McTaggart: As part of our continued efforts to diversify our business offering, we formed last year a joint venture with two membrane technology giants to pursue specialized high-value liquid separation projects using patent-pending technology developed by these partners. Over the past three quarters, we have developed product offerings proposed for several new projects and so far have had a great deal of interest in these products from various industries, in particular the mining industry. If we are successful in developing this business, we expect that it could significantly and positively impact our financial performance in the future. Now looking to the Hawaii project, our 1.7 MgD seawater desalination plant project in Oahu, Hawaii, is well underway and on track. We continue to perform development activities, including pilot testing, design preparation, and permitting.
Speaker Change: As part of our continued efforts to diversify our business offerings.
Speaker Change: Formed last year, a joint venture with two membrane technology Giants to pursue specialized high value liquids separation projects using using patent pending technology developed by these partners.
Speaker Change: Over the past three quarters, we have developed product offerings proposed on several new projects and so far I've had a great deal of interest in these projects or products from various industries in particular the mining industry.
Speaker Change: If we are successful in developing this business, we expect that it could significantly and positively impact our financial performance in the future.
Frederick W. McTaggart: We anticipate recognizing significantly more revenue for this project in the second half of 2025, and we expect to break ground on construction, well when we expect to break ground on construction of the full plant. The Hawaii plant will represent our 24th desalination plant we have constructed worldwide and our first plant in the United States. For PERC, especially, we believe demand remains strong for its world-class design, construction, and asset management services. This potential is clearly demonstrated by the several design, build, and O&M contract opportunities we are currently pursuing in the Western U.S. FERC's advanced water treatment experience enables us to pursue a number of emerging opportunities.
Speaker Change: Now looking to the the Hawaii project.
Speaker Change: Our 1.7 M G D seawater desalination plant.
Speaker Change: The project in a wahoo, Hawaii is well underway and on track.
Speaker Change: We continue to perform development activities, including pilot testing design preparation and permitting.
Speaker Change: We anticipate recognizing significantly more revenue for this project in the second half of 2025 and.
And we expect to break ground on construction well when we expect to break ground on construction of the full plant.
Speaker Change: Hawaii plant will represent our 24th desalination plant, we've constructed worldwide and our first plant in the United States.
Speaker Change: For PERC, especially we believe demand remains strong for its world class design construction and asset management services.
Speaker Change: This potential is clearly demonstrated by the several design build an O&M contract opportunities. We are currently pursuing in the Western U S.
Speaker Change: Perks advanced water treatment experience enables us to pursue a number of emerging opportunities.
Frederick W. McTaggart: For example, last December, the State of California approved Direct Potable Reuse, or DPR, regulations that will allow water systems to develop treatment protocols for converting wastewater directly into drinking water. This new regulation is expected to bolster statewide drinking water supplies and thereby make regional water systems more drought resilient. FERC currently operates three of the most advanced water treatment plants in California, one of which could be on track to be the first DPR plant in the state. As I mentioned earlier, REC, which we acquired last October, generated $1.8 million in O&M revenue in the first quarter this year.
Speaker Change: For example, last December the state of California approved.
Speaker Change: Potable reuse or D. P R regulations.
Speaker Change: We'll allow water systems to develop treatment protocols.
Speaker Change: We're converting wastewater directly into drinking water.
Speaker Change: This new regulation is expected to bolster statewide drinking water supplies and thereby make regional water systems more drought resilient.
Speaker Change: <unk> currently operates three of the most advanced water treatment plants in California, one of which could be on track to be the first D. P. R. A plant in the state.
Speaker Change: As I mentioned earlier, our EC, which we acquired last October generated $1 8 million in O&M revenue in the first quarter. This year. These results bode well as we continue to grow our water treatment plant operating and maintenance business in the Western U S.
Frederick W. McTaggart: These results bode well as we continue to grow our water treatment plant operating and maintenance business in the western U.S. It also supports our belief that our historical success with PERC can be replicated with this strategic acquisition as well as other similar future opportunities. Looking ahead for the remainder of the year and beyond, we remain very optimistic about our future growth opportunities for many reasons. This includes strong water sales growth in Grand Cayman and our Hawaii design, build, operate project underway in the U.S., 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-build projects which could begin in 2025 and subsequent years.
Speaker Change: It also supports our belief that our historical success with her.
Speaker Change: Can be replicated with this strategic acquisition as well as other similar future opportunities.
Speaker Change: Looking ahead for the remainder of the year and beyond.
Speaker Change: We remain very optimistic about our future growth opportunities for many reasons.
Speaker Change: This includes strong water sales growth in Grand Cayman in our Hawaii design build operate project underway in the U S as well as the robust project bidding activity, we continue to see in the Western U S.
Speaker Change: You are currently pursuing a number of design build projects, which could begin in 2025 and subsequent years. Some of these projects are being pursued through competitive public bidding and others using our proprietary customized design report where C D. Our sales tool.
Frederick W. McTaggart: Some of these projects are being pursued through competitive public bidding, and others using our proprietary customized design report or CDR sales tool. 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 that this all represents strong drivers for growth, increased profitability, and further strengthening of shareholder value. Now I'd like to open the call to questions.
Speaker Change: We believe our highly efficient and aesthetically pleasing treatment plant designs world class operating and maintenance capabilities.
Speaker Change: Our innovative project delivery models are all superior to others, and therefore provide us with strong competitive advantages.
Speaker Change: Combined with flourishing markets. We believe that this all represents strong drivers for growth increased profitability and further strengthening of shareholder value.
Speaker Change: Rocco now I'd like to open the call up for questions.
Operator: Absolutely. To ask a question, please press star then 1 on your telephone keypad. If your question has already been answered and you would like to remove yourself from the queue, please press star then 2. Once again, ladies and gentlemen, that's Stars in a Bottle. If you have a question... And today's first question comes from Dave Thomas of DOA. Please go ahead.
Speaker Change: Absolutely.
Speaker Change: Ask a question. Please press Star then one on your telephone keypad.
Speaker Change: If a question that's already been addressed.
Speaker Change: We've yourself from queue. Please press Star then two.
Speaker Change: Once again, ladies and gentlemen that started on wondering if you have a question.
Speaker Change: And today's first question comes from Dave Thomas a BLA. Please go ahead.
Dave Thomas: Hey, guys. Congrats on the quarter you guys seem to be heading in the right direction scheme. That's a shares are significantly undervalued would you be willing to do a share buyback.
Frederick W. McTaggart: Yeah. So, under our articles, we actually have to have shareholder approval for that for a buyback, so it would be a bit of a process. And in any event, we see other more productive uses for the capital that we have right now. So we're going to continue to invest in growing the business organically and looking for other potential acquisition opportunities. But thanks for the question. Well, Rick, I'd like to add that in the past, we actually proposed to share about buyback a
Speaker Change: Yeah. So.
Speaker Change: Debt under our articles, we actually have to have shareholder approval for that or a buyback. So it would be a bit of a process and in any event we see.
Speaker Change: Are there more productive uses for the capital that we have right now so we're going to continue to.
Speaker Change: Invest in growing the business organically and I'm.
Speaker Change: And looking for other potential acquisition opportunities, but thanks for the question.
David W. Sasnett: Well, Rick, I'd like to add that in the past, we actually proposed a share buyback amendment to our articles to our shareholders, but this was more than a decade ago, and unfortunately, our shareholders voted it down. So we have tried to establish the platform for doing a share buyback, but as Rick said earlier, you need shareholder approval, and the one time we tried to get it, shareholders voted against it.
Frederick W. McTaggart: Well, Rick I'd like to add that in the past, we actually proposed to share buyback amendment.
Speaker Change: Our articles to our shareholders. This is a more than a decade ago.
Speaker Change: And unfortunately, our shareholders voted it down.
Speaker Change: So we have tried to establish.
Speaker Change: Fourth of doing a share buyback, but as Rick said earlier this.
Speaker Change: Shareholder approval and the onetime and tried to get it shareholders voted against it.
Speaker Change: Yeah.
Operator: All right, thank you. And our next question today comes from Matt Schwartz at Mays Investments. Please go ahead.
Speaker Change: Alright, Thank you and our next question comes from Matt Schwarz at Amazing investments. Please go ahead.
Matt Schwartz: Hey guys, good morning. I've got a couple questions.
Speaker Change: Hey, guys good morning.
Speaker Change:
Matt Schwartz: My first one is around the Fixed Development Fee for Hawaii. I know in the 10-key you talk about booking for the remainder of the year something like $15 million in the services segment. So I'm wondering, is most of that development fee gonna be booked this year for Hawaii? And was that amount increased?
Matt Schwarz: I've got a couple of questions. My first one is around the.
The fixed development fee for Hawaii.
Matt Schwarz: I know in the 10-K you talk about.
Matt Schwarz: Booking.
Matt Schwarz: For the remainder of the year something like $15 million in the services segment.
So I'm wondering if that is most of that development is going to be booked this year for Hawaii and with that I'll now.
Speaker Change: <unk> increased.
David W. Sasnett: You want to talk to that one there, David?
Speaker Change: You wanted to talk to that when they're doing it.
David W. Sasnett: Yeah, the fixed development fee is a bit of a misnomer in the contract. It implies the amount that will get paid for the development period. What that fee actually represents is the amount of cost; the amount of the total project cost or price to the customer is fixed and can't be increased as a result of inflation.
Speaker Change: Yeah, the fixed development phase there is a bit of a misnomer.
Speaker Change: In the contract it implies the amount that we'll get paid for the development period.
Speaker Change: What does he actually represents is the amount of cost.
Speaker Change: It's a to be incur debt the amount of the total project cost or price to the customer it's fixed and can't be increased as a result of inflation and I believe that number has been amended to 27 million.
David W. Sasnett: And I believe that number has been amended to $27 million. So, over the course of the development period, we were entitled to drawdowns of $27 million. But that's not necessarily the amount of revenue that we're entitled to record because we recognize revenue on the input. The $27 million is backed out of the $150 million when construction actually commences. The remaining $123 million of contract value will be adjusted based upon inflation, both in the consumer price indexes and in the changes in labor rates for the period that occurred from when we signed the contract until the date of construction.
Speaker Change: So over the course of the development period, we're entitled to draw Downs of 27 million.
Speaker Change: But that's not necessarily the amount of revenue that we're going to able to record because we recognize revenue on the input method.
But the 27 million is backed out of the $150 million and then Glenn construction actually commences.
Speaker Change: The remaining <unk>.
123 million of contract value will be adjusted based upon inflation.
Speaker Change: Both in the consumer price indexes and the changes in labor rates.
Speaker Change: Period that Curt since we sign the contract until the day construction.
David W. Sasnett: So, you shouldn't infer that any of the fixed development fee is not going to be correlated to revenue. The amount of revenue that we will recognize will be under the input method, and it'll be based upon the actual cost being incurred under the development.
Speaker Change: And that's as say you shouldn't infer any of the fixed development, the it's not going to be.
Speaker Change: Correlated to revenue.
Speaker Change: On a revenue that we will recognize will be under the input method and it'll be based upon the actual costs, we incur on the development period.
Matt Schwartz: I see. So when you do, when those revenues start to flow in, will those show up in the, will they show up under services under the? How will they be captured? Will it be under the project construction column or will it be under design and consulting?
Speaker Change: I I I see so when you do.
Speaker Change: When does revenue start to flow and what will that show up and.
Speaker Change: Bell.
Speaker Change: They'll show up in.
Speaker Change: Sarah.
Speaker Change: Under the.
Speaker Change:
Speaker Change: How will they be captured well it will be under the French project construction com or would be under that design and consulting side it'll be under the construction because this is not a separate design contract.
David W. Sasnett: It will be under the construction contract because this is not a separate design contract. Every major construction project, or I almost say most of them, have a design element to them, and it's part of the construction contract. We have design revenue, that's when we sign a contract to design a project for a customer, but they have not committed to letting us build the project yet; we don't have a construction contract; that's pure design work. Any design work associated with the construction of a plant, part of the main contract goes into the construction revenue side. Okay, I got it.
Speaker Change: Every major construction every major construction project or let's say every most of them have a design element to them as part of the construction contract. We have design revenue, that's what I'm going to start to sign a contract to design revenue for a customer, but they have not committed to letting us building. The project yet you don't have a construction contract.
Speaker Change: It's pure design work and design work associated with construction of a plant part of the main contract goes into the construction revenue side.
Matt Schwartz: My second question is, Maybe I'm reading into the tea leaves a bit too much, but I know how conservative you both are. I think in the last call, Rick, you made some comments around, "You know, the things you're pursuing wouldn't come to fruition this year, but when I read this most recent press release and hear the comments you made earlier on the call, you know it. It sounds like you're talking about some potential new projects starting in 2025. So I'm interested in how things have changed over the last few months in terms of your confidence in projects that you're bidding on.
Speaker Change: Okay got it my second question is.
Speaker Change: Maybe I'm reading into it a tea leaves a bit too much but I know how conservative you both.
Speaker Change: I think in the last call Rick you made some comments around.
You know the things you're pursuing it wouldn't come to fruition this year, but when I read. This most recent press release and hear the comments you made earlier on the call.
Speaker Change: You know it is.
Speaker Change: Sounds like you're talking about some potential new projects starting.
Speaker Change: In 2025.
Speaker Change: So I'm interested in.
Speaker Change: How things have changed over the last few months in terms of your confidence and projects that you're bidding on it it sounds like there's been progress there for you to.
Frederick W. McTaggart: You should put a little bit more, I guess, bullish commentary in the release and some of your earlier comments.
Speaker Change: But a little bit more I guess bullish commentary in the release and some of your earlier comments.
Frederick W. McTaggart: Yeah, I think in March we were just trying to make investors aware that some of these bigger projects that we've been working on are winding down in 2024. I've been trying to give sort of a consistent message on future opportunities that we don't really see anything impacting 2024. But, you know, we are seeing some more opportunities that could potentially impact 2025 if we were successful in pursuing those. So, I think that's really all that we're trying to get across, the message there.
Speaker Change: Yeah I think in March we were just trying to.
Speaker Change: Make investors aware that some of these bigger projects that we've been working on are winding down in 2024.
Speaker Change: I've been trying to give sort of a consistent message on future opportunities that we don't really see anything impacting 2024.
But we are seeing some more.
Speaker Change: Opportunities that would potentially impact 2025, if we were successful pursuing them. So.
Speaker Change: I think that's that's really all that we're trying to.
Speaker Change: It's a message there.
Frederick W. McTaggart: Okay, in terms of your capacity, I know you've got, you know, a big project starting in the middle of 25, um, what's the company's ability to layer in, you know, sizable contracts? Maybe you could talk a little bit about that a little bit in addition to Hawaii to run them simultaneously.
Speaker Change: Okay in terms of your capacity I know you've got you know a.
Speaker Change: Big projects starting.
Middle of 'twenty five.
Speaker Change:
Speaker Change: What the company has the ability to layer in.
Speaker Change: You know.
Sizable contracts, maybe you could talk to that a little bit on in addition to Hawaii and run them simultaneously.
Speaker Change: Yes, we.
Frederick W. McTaggart: We definitely have the bandwidth for that, Matt. We're not concerned about that at this point. [inaudible] You know, our biggest focus is getting that next job in place. We think that anything that would run concurrently with Hawaii would be completely manageable by our team.
Speaker Change: Definitely have the bandwidth for that but we're not concerned about that at this point.
Speaker Change: Sure.
Speaker Change: You know our biggest focus is getting that next job in place.
We think that.
Speaker Change: Anything that would run concurrent with Hawaii would be completely manageable by our team.
Matt Schwartz: Okay, then lastly, I'd like to look at the balance sheet for a second, and maybe it's for David, but I forget the exact cash number for the quarter, $46 million and change. But if I understand correctly, there's a number of cash inflows that you guys should see in addition to potentially recovering some of the Bahamas receivable, talk about how you would expect the balance sheet to progress as you move through this year, outside of
Speaker Change: Okay, and then lastly, as my.
Speaker Change: I like to look at the balance sheet for a second.
Speaker Change: Maybe for David but.
Speaker Change:
Speaker Change: Yeah, Yeah, I forget the back half of them for the quarter 46 million had changed maybe and.
Speaker Change: But if I understand correctly theres a number of.
Speaker Change: Of cash inflows that you guys should see it into potentially recovering some of the Bahamas receivable could.
Speaker Change: Could you talk about how you would expect the balance sheet the progress as you move through this year.
Speaker Change: Outside of just free.
Speaker Change: Free cash flow generation.
David W. Sasnett: Well, we have receivables due from the Bahamas. We also have money due from the Water Authority for the construction of the Red Gate Plant, which we expect to be paid shortly. Those are the two.
Speaker Change: Well, we have receivables due from the Bahamas, We also have money do from the.
Speaker Change: The water authority Cayman for the construction of the Red Gate plant, which we expect to be paid shortly.
Speaker Change: Those are the two.
David W. Sasnett: Collections of receivables that are pending that are substantial in size that will affect our cash flow. Other than that, it's just cash generated from normal operations. We'll collect some more money for the Cerebral contract. There is an $8 million retainer on that contract. That won't be paid until a significant time period, I think it's something around six months, after we've completely finished the project.
Speaker Change: Collections of receivables that you know pending.
Speaker Change: Pending that are substantial in size that will affect our cash flow.
Speaker Change: Other than that it's just cash generate from normal operations, but we'll collect some more money for the Shareable contract. There is an $8 million retainer on that contract.
Speaker Change: And that won't be paid until a significant time period I think its something around six months after.
Speaker Change: After we've completely finished the project.
Matt Schwartz: Okay, and then how much for So that was on Liberty, but how much for Red Gate?
Okay, and then how much for that.
Speaker Change: That was on Liberty, but how much for Red gate.
David W. Sasnett: I think Red Gate is around 9 million dollars.
Speaker Change: I think it resonates around $9 million.
Speaker Change: Pending here.
Matt Schwartz: Alright, so $17 million between those two. Incoming cash and, Where do you think the Bahamas are receivable? I know it's hard to say what that's going to come down to, but is there a normalized level we should think about for that?
Speaker Change: Okay, so the $17 million between the two.
Speaker Change: Incoming cash.
Speaker Change: And.
Where do you think the Bahama receivable.
Speaker Change: Oh I know, it's hard to say, what that's going to come down too, but is there a normalized level, we should think about for that.
David W. Sasnett: Well, I mentioned in the call they're going to try to get it down to $20 million by June 30th, and we'll see you again in a year or so.
Speaker Change: Well I mentioned in the call Theyre going to try to they've informed us they are going to try to get it down to 20 million by June 30th.
Speaker Change: Yeah. So.
Speaker Change: Yeah.
Matt Schwartz: All right, great. All right. Thank you very much.
Speaker Change: Alright, great alright, thank you very much.
Frederick W. McTaggart: Welcome Matt.
Speaker Change: Welcome back.
Operator: And as a reminder to ask a question, please press star then 1. Our next question comes from Jerry Sweeney with Roth Capital. Please go ahead.
Speaker Change: And as a reminder to ask a question. Please press Star then one.
Speaker Change: Our next question comes from Gerry Sweeney with Roth Capital. Please go ahead.
Speaker Change: Yeah.
Brandon Rogers: Hello, this is Brandon Rogers on for Jerry Sweeney. Thanks for taking my question.
Speaker Change: Hello. This is Brendan Rodgers on for Jason Thanks for taking my question.
Brandon Rogers: Hey, Brandon. Good morning. How are you doing? I was just wondering, I know you provided some info around the Hawaii project timeline, so you're anticipating to start or expecting to start construction of the plant in the second half of 2025 with the two-year development phase, two-year construction phase, and 20-year operating phase. Does that imply that you're thinking of the operating phase beginning in the second half of 2027?
Brian: Hey, Brian Good morning.
Brendan Rodgers: How are you doing I was just wondering I know you provided some info around the Hawaii project timeline, so you're anticipating to start or expecting to start <unk>.
Speaker Change: Structure into the plant in the second half of 2025 with the two year development phase to your construction phase and 20 year operating base would that imply that you're thinking of the operating phase beginning in the second half of 2027.
Frederick W. McTaggart: If we stick to the schedule, that's what it would look like, yeah.
Speaker Change: If we stick to schedule, that's that's what it would look like.
Speaker Change: Alright.
Brandon Rogers: And then you mentioned, and then switched over to PERC, you mentioned a few new PERC contracts that are either in the pipeline or that you have your eyes on. I was just wondering if you could just give us a kind of an update on the pipeline of opportunities with PERC.
Speaker Change: And then you mentioned and then switching over to Perk you mentioned a few new per contracts that are either in the pipeline or that you have your eyes on.
Speaker Change: Just wondering.
Speaker Change: If you can just give us a kind of an update around the pipeline of opportunities with her.
Frederick W. McTaggart: I mean, without getting into specifics of the projects, I mean, we, there's at least three that are on the design-build side that we're looking at. As I mentioned in the scripts, some of them are public bids. The other ones are... CDR customized design report opportunities that were, [inaudible] at least one of the potential opportunities is in a sector that we're very familiar with. So, you know, we. It's early on, but we made the point that there are, and these are all fairly large-sized projects. You know, not as big as Seroval, but we're getting there.
Speaker Change: I mean with that.
Getting into the specifics of the projects I mean, we do.
Speaker Change: There's at least three that.
Speaker Change: And then on the design build side that we're looking at as I mentioned in the scripts and some of them are public bids the other ones are.
Speaker Change: C D. Our customized design report opportunities that were.
Speaker Change: Pursuing.
Speaker Change: At least one of the.
Speaker Change: The potential opportunities in a sector that we're very familiar with.
Speaker Change: So are we.
Speaker Change: You know we.
Speaker Change: It's early on but.
Speaker Change: You know we made the point that there are.
Speaker Change: And these are all fairly large size projects.
Speaker Change:
Speaker Change: Not as big as terrible, but getting there.
Speaker Change:
Speaker Change: So.
Speaker Change: You know, we think theres opportunities there to land at least one of these.
Frederick W. McTaggart: So, we think there's opportunities there to land at least one of these. From the standpoint of O&M work, again, there's a pretty regular flow of O&M contracts that come up for bid, and as you can see from our results this year compared to the beginning of last year, we've been successful in landing some of these projects. We see that continuing certainly for the rest of this year and into 2025. Maybe not to the extent in revenue terms that we benefited from over the last year, but there is a steady flow.
Speaker Change:
Speaker Change: From the standpoint of the O&M work again.
Speaker Change: There's a pretty regular flow O&M contracts that come up for bid and as you can see from our results.
Speaker Change: This year compared to last beginning of last year, we've been.
Speaker Change: Successful landing.
Speaker Change: Some of these projects, we see that continuing.
Speaker Change: You know certainly for the rest of this year and into 2025.
Speaker Change: Maybe not to the extent that.
Speaker Change: In revenue terms that we benefited from over the last year, but there are just a steady flow.
Frederick W. McTaggart: The bids that come up, and we're certainly chasing those, we think we're well placed. From the standpoint of the more technical bids that require advanced water treatment and recycling, we're certainly well placed, and we have the experience and the credentials to make a superior presentation over some of our competitors in the region.
Speaker Change: The bids that come up and we're certainly are chasing those we think we're well placed.
Speaker Change: From the standpoint of the more technical bids that Oh.
Speaker Change: Require advanced water treatment and recycling we're certainly.
Speaker Change: Well placed and we have the experience and their credentials to.
Speaker Change: To make a superior presentation over some of our competitors in the region.
Speaker Change: I hope that helps you.
Brandon: Much Brandon.
Brandon: Yeah.
Brandon Rogers: And then just one more for me, just like the general market environment. I know you're still seeing lots of opportunity in the Western U.S. But are there any other areas of interest that have been drawing significant amounts of demand that you're seeing?
Speaker Change: Thank you yeah that helps thanks for the color on that and then just one more for me just like general market environment. I know you are still seeing lots of opportunity and Western U. S is there any other areas of interest that had been drawing a significant amounts of demand that you're seeing.
Frederick W. McTaggart: We're really focusing on the western U.S. and Caribbean opportunities, as we mentioned earlier. There's really nothing else that we could discuss at this point other than
Speaker Change: Where we're really focusing on the on the Western U S and the Caribbean opportunities as we've mentioned earlier.
Speaker Change: Really nothing else that we could discuss at this point whether then.
Frederick W. McTaggart: From the standpoint of just basic, well, what we're doing now, I mean, those are the focus markets from the standpoint of some of these newer pursuits, you know, the equipment business that I mentioned, the joint venture business, I mean those are projects that are potentially worldwide, that would be. That would be equipment sales using this patented technology, so we wouldn't actually be operating in other regions.
Speaker Change: From the standpoint of just basic well, what we're doing now I mean, that's those are the focus markets.
Speaker Change: From the standpoint of some of these.
Speaker Change: The newer.
Speaker Change: Pursuits, you know the.
Speaker Change: Equipment.
Speaker Change: It was a business that I mentioned, the joint venture business I mean those are.
Speaker Change: Projects that are.
Speaker Change: Actually worldwide.
Speaker Change: But that would be.
Speaker Change: That would be equipment sales using the patented technology.
Speaker Change: So we wouldn't actually be operating in the other regions.
Brandon Rogers: Okay, thank you very much. I can take the rest of my questions offline. I appreciate it.
Speaker Change: Okay. Thank you very much I can take the rest of my questions offline I appreciate it.
Brandon: Thanks Brandon.
Operator: Thank you. And once more, if you do have a question, please press star then 1. Our next question comes from John Bair with Ascend Wealth Advisors. Please go ahead.
Speaker Change: Thank you once more and if you do have a question. Please press Star then one our next question comes from John Bair with ascend wealth advisors. Please go ahead.
John H. Bair: Thank you. Good morning, gentlemen.
John H. Bair: Thank you good morning, gentlemen.
John H. Bair: One of my questions was... somewhat answered there about expanding to other areas within the U.S., so I guess uh... The response was pretty much focusing on the Southwest. What about from an acquisition standpoint, are there potential... maybe privately owned outfits that would give you uh... an entry into different areas of the United States?
Speaker Change #101: Good morning, one of my questions was less somewhat answered.
John H. Bair: Answered there about expanding to other areas within the U S. So.
John H. Bair: I guess.
Speaker Change #102: Sponsors are.
Speaker Change #103: Pretty much focusing on the south southwest what about from an acquisition standpoint. If you are there are there potential.
Maybe privately owned outfits that would give you and entry.
Speaker Change #103: Into different area of the United States.
Frederick W. McTaggart: Yeah, I mean, they sure are, John. I mean, we... I purposely didn't mention anything about acquisitions in this call. I mean, we're not pursuing anything specific at this point. The focus is really growing that REC business. We think there's a lot of opportunity in Colorado, and we've just gotten on the ground there, and with our sales team, and integrated that business into consolidated water. Group, and we are going to focus on that.
Speaker Change #104: Oh, Yeah, I mean, there sure are John but I mean, we.
Speaker Change #105: Purposely didn't mention anything about acquisitions.
Speaker Change #106: And this this call I mean, we're not pursuing anything specific at this point.
Speaker Change #106: The focus is really growing.
Speaker Change #107: Growing that our UC business, we think there's a lot of opportunity in Colorado.
Speaker Change #107: We've just gotten on the ground there.
Speaker Change #108: With our sales team.
Speaker Change #109: And integrating that business into the consolidated water.
Frederick W. McTaggart: That is an untapped market right now. As I was mentioning to Brandon from Roth, there are a number of opportunities that we are pursuing, which would be Organic Growth Opportunities within the PERC area right now, so we think those are meaningful enough that we can focus on those instead of, you know, potentially looking at another acquisition right away.
Speaker Change #108: Group.
Speaker Change #110: So we're really going to focus on that I mean, that's that's an untapped market right now.
Speaker Change #111: And then you know as I was mentioning to Brandon Ross I mean, there too.
Speaker Change #111: A number of opportunities that we're pursuing.
Speaker Change #111: Which would be organic growth opportunities within.
Gary: Within the PERC, Gary right now so.
Speaker Change #113: And we think those are meaningful enough that we.
Speaker Change #113: We can.
Speaker Change #114: We can focus on those instead of <unk>.
Speaker Change #114: Potentially looking at another acquisition right away.
Speaker Change #114: Okay, and then you know in the.
John H. Bair: Okay. And then, you know, in the past, Eric's business was kind of lumpy. It had a period where things kind of dried up. But here's that that's more on a stable footing now. Is that is that right? I think in a comment to the previous question here mentioned the OEM type of order flow was reasonably good. Did I hear that correctly?
Speaker Change #115: Past the Eric's.
Speaker Change #116: Business was kind of lumpy it had a period, where things kind of dried up appears that that's more on a stable footing now is that is that right.
Speaker Change #117: I think in our comments in the previous question here.
Speaker Change #118: Mentioned OEM type order flows was reasonably.
Speaker Change #119: Good did I hear that correctly.
Frederick W. McTaggart: Yeah, that's, that's correct, John. We had a big backlog, I guess, maybe a year and a half ago, and that was due to, you know, backlog post-COVID. That was a bit of a challenging time for us, but right now, the shop is operating on a very much smoother basis, and we have a good flow of orders that we're working through. And we think that that business will be much more consistent and significant to the earnings of the company.
Yeah. That's that's correct John we had a big we were talking about backlog I guess, maybe a year and a half ago and that.
Speaker Change #119: Due to.
Speaker Change #119: Backlog post COVID-19.
Speaker Change #120: That was a bit of a challenging time for us.
Speaker Change #120: Now that the shop is operating on a very much smoother basis, we have a good.
Speaker Change #121: <unk> orders that we're working through.
Speaker Change #121: We think that that business would be much more consistent and.
Speaker Change #122: Insignificant to the.
The earnings of the company.
Speaker Change #123: In future.
Speaker Change #123: Okay.
John H. Bair: And going back to David's comment about the shareholder proposal to allow share buybacks. Given that that was 10 years or so ago, would you consider... Putting that out again? It seems like share buyback efforts by companies seem to be fairly robust these days, so maybe the share base would be more favorably inclined to allow you to do that. Would you consider bringing that up?
Speaker Change #123: Going back to David's comment about the shareholder.
David W. Sasnett: Proposal two allows share buybacks given that that was you know 10 years or so ago.
David Sasnett:
Speaker Change #125: Do you consider.
Speaker Change #126: Putting that out again, it seems like share buyback.
Speaker Change #125:
Speaker Change #125: Efforts by companies seem to be fairly robust. These days, so maybe the share base.
Speaker Change #127: It would be more favorably inclined to allow you to do that what would you consider bringing that up.
Frederick W. McTaggart: Well, I think we have probably the most productive uses for the capital that we have. I mean, a lot of it is, once we collect some of these receivables in the Bahamas and get paid for some of these projects that were on deferred payment schedules, I mean..., is something we could consider. We don't, as you know, we take... It would take shareholder approval to give us the flexibility as a management team to be able to respond to market conditions that actually make it worthwhile to do something like that, but we can certainly consider it.
Well I think.
Speaker Change #127: We have.
Probably the more productive uses for the capital that we have I mean, a lot of it is.
Speaker Change #128: You know once we collect some of these receivables in the Bahamas and get paid for.
Speaker Change #128: Some of these projects that were on deferred maintenance schedules.
Speaker Change #129: It's something we could consider and.
Speaker Change #130: We don't as you know it would take a.
Speaker Change #131: It would take shareholder approval to give us the flexibility.
Speaker Change #132: The management team to be able to respond to market conditions that actually.
Speaker Change #132: Uh huh.
Speaker Change #132: Make it worthwhile to do something like that but.
Speaker Change #133: We can certainly consider it.
Speaker Change #133: Yep.
Speaker Change #134: Oh I think.
John H. Bair: I think This is my own personal observation or belief is that, you know, right or wrong, if... a company has a share buyback program in place and does take advantage of it under certain conditions, that is viewed favorably in many cases. So that might help alleviate what a lot of folks feel that the share price is undervalued. Disperception on my part, I'm sorry.
Speaker Change #135: This is my own personal observation or belief is that.
Speaker Change #135: Right or wrong if.
Speaker Change #136: Company has a share buyback program in place and does take advantage of it under certain conditions that that's.
Speaker Change #137: Viewed favorably.
Speaker Change #137: In many cases, so that might help alleviate what a lot of folks feel that the share price is undervalued.
No.
Speaker Change #137: Just.
Speaker Change #138: Perception on my part I'm sorry.
Frederick W. McTaggart: Well, thank you for that, John. Yes,
Speaker Change #138: Well, thank you for that John.
John H. Bair: Yep, very good. Thanks a lot.
Speaker Change #139: Very good thanks a lot.
Operator: Thank you. At this time, this concludes our question and answer session. I'd now like to turn the call back over to Mr. McTaggart. Sir, please go ahead.
Speaker Change #140: Thank you.
Speaker Change #140: This concludes our question and answer session and now I'd like to turn the call back over to Mr. Mctaggart. Sir. Please go ahead.
Frederick W. McTaggart: Thank you, Rocco, and I appreciate everybody joining us today for the call, and I look forward to speaking with you all again in August when we report our second quarter earnings. Take care. Thank you.
Frederick W. McTaggart: Thank you Rocco and I appreciate everybody joining us today for the call and I look forward to speaking with you all again in August when we're.
Frederick W. McTaggart: We report our second quarter earnings take care.
Operator: Thank you. Before we conclude today's call, I would like to provide the company's Safe Harbor Statement that includes cautions regarding forward-looking statements made during today's call. The information that we have provided in this conference call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's future revenue, future plans, objectives, expectations, and events, assumptions, and estimates. Forward-looking statements can be identified by the use of words or phrases usually containing the words believe, estimate, project, intend, expect, should, will, or similar expressions.
Operator: Statements that are not historical facts are based on the company's current expectations, beliefs, assumptions, estimates, forecasts, and projections for its business and the industry and markets related to its business. Any forward-looking statement made during this conference call is not a guarantee of future performance and involves certain risks, uncertainties, and assumptions which are difficult to predict. Actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, tourism and weather conditions in the areas we serve, the economic, political, and social conditions of each country in which we conduct or plan to conduct business, and our relationships with the government entities and other customers we serve.
Speaker Change #141: Thank you before we conclude today's call I would like to provide the Companys Safe Harbor statement that includes cautions regarding forward looking statements made during today's call.
Operator: Regulatory matters, including the resolution of the negotiations for the renewal of our retail license on Grand Cayman, our ability to successfully enter new markets, and various other risks as detailed in the company's periodic report filings with the Securities and Exchange Commission. For more information about risks and uncertainties associated with the company's business, please refer to Management's Discussion and Analysis of Financial Conditions or 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.
Speaker Change #142: The information that we provided in this conference call includes forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095.
Speaker Change #142: In but not limited to statements regarding the company's future revenues future plans objectives expectations and events assumptions and estimates.
Speaker Change #142: We're looking statements can be identified by the use of words or phrases usually containing the words believe estimate project intend expect should well or similar expressions.
Speaker Change #142: Statements that are not historical facts are based on the company's current expectations beliefs assumptions estimates forecasts and projections as far as business in the industry and markets related to its business.
Speaker Change #142: Any forward looking statement made during this conference call are not guarantees of future performance and involve certain risks uncertainties and assumptions when sort of difficult to predict.
Speaker Change #142: Actual outcomes and results may differ materially from what is expressed in such forward looking statements.
Speaker Change #142: Factors that would cause or contribute to such differences include but are not limited to tourism and weather conditions in the areas we serve.
Speaker Change #142: The economic political and social conditions of each country in which we conduct or plan to conduct business.
Speaker Change #142: Our relationships with the government entities and other customers we serve.
Speaker Change #143: Regulatory matters, including resolution of the negotiations for the renewal of our retail license on Grand Cayman.
Speaker Change #143: Our ability to successfully enter new markets.
Speaker Change #143: Various other risks as detailed in the company's periodic report filings with the Securities and Exchange Commission.
Speaker Change #143: For more information about risks and uncertainties associated with the company's business.
Speaker Change #143: Refer to managements discussion and analysis of financial conditions or results of operations and risk factors sections of the company's SEC filings.
Speaker Change #143: In but not limited to its annual report on Form 10-K.
Speaker Change #143: Quarterly reports from Form 10-Q.
Operator: Any forward-looking statements made during the conference call speak as of today's date, and the company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements made during the conference call to reflect any changes in its expectations with regard thereto or any changes in its events, conditions, or circumstances on which any forward-looking statement is based, except as required by law. I would like to remind everyone that this call will be available for replay starting later this evening. Please refer to yesterday's earnings release for dial-in and replay instructions available via the company's website at www.cwco.com. Thank you for attending today's presentation. This concludes the conference call. You may now disconnect.
Speaker Change #143: Any forward looking statements made during the conference calls because of today's date.
Speaker Change #144: The company expressly disclaims any obligations or undertaking to update or revise any forward looking statements made during the conference call to reflect any changes in its expectations with regard there to or any changes in its events conditions or circumstances I wonder any forward looking statement is based except as required by law.
Speaker Change #145: I would like to remind everyone that this call will be available for replay starting later this evening.
Speaker Change #146: Please refer to yesterday's earnings release for dial in replay instructions.
Speaker Change #146: Via the company's website at Www Dot CWC O dot com.
Speaker Change #147: Thank you for attending today's presentation. This concludes the conference call you may now disconnect.
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Speaker Change #147: [music].