AquaVenture Holdings Ltd. (WAAS) Tops Q3 EPS by 3c

AquaVenture Holdings Ltd. (NYSE: WAAS) reported Q3 EPS of ($0.13), $0.03 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $52.9 million versus the consensus estimate of $49.13 million.

Financial Highlights and Recent Developments

• Total revenues of $52.9 million reflected a 43.8% increase over the prior year period, comprised of 10.5% organic growth and 33.3% inorganic growth. On a segment basis, Quench and Seven Seas Water revenues grew 44.7% and 42.5%, respectively, over the prior year period.
• Net loss of $3.9 million, or ($0.13) per share, compared to net loss of $2.7 million, or ($0.10) per share, in the prior year period.
• Adjusted EBITDA was $20.4 million, a 60.5% increase over the prior year period. Adjusted EBITDA Margin was 38.4%, an improvement of 400 basis points compared to the prior year period.
• Adjusted EBITDA plus principal collected on the Peru construction contract increased 55.9% to $21.7 million from $13.9 million in the prior year period.
• In July, the Company completed its first follow-on offering of 4,715,000 ordinary shares at a public offering price of $16.88, including 615,000 ordinary shares issued upon the underwriters’ full exercise of their option to purchase additional shares. The aggregate net proceeds received by the Company from the offering was approximately $75.4 million, after deducting underwriting discounts and commissions and other estimated offering expenses.
• Quench completed the acquisitions of Mirex AquaPure Solutions, L.P. and Flowline Canada, Inc. on October 1, 2019, acquiring substantially all the point-of-use water filtration assets of the Houston, Texas and Edmonton, Canada based companies, respectively.
• Seven Seas Water extended its agreement with its customer in The Bahamas by nine years, effective August 1, 2019. Under the agreement, the Company will continue delivering potable water and wastewater treatment services to the Emerald Bay development in Great Exuma, The Bahamas.

Tony Ibarguen, AquaVenture’s President and Chief Executive Officer announced: “AquaVenture delivered another robust quarter of revenue and Adjusted EBITDA growth, as we executed on our organic and inorganic growth strategies. In our Quench segment, we showed very strong organic growth of 18% year over year, and continued to execute on our acquisition strategy, acquiring Carolina Pure Water Systems during the third quarter and announcing the acquisitions of Mirex AquaPure Solutions and Flowline Canada in early October. In our Seven Seas Water segment, we had a solid quarter in the wastewater business, growing our active lease portfolio to 102 leases as of September 30, 2019, up from 97 leases at June 30, 2019; and in the desalination business we announced the extension of our agreement in The Bahamas by nine years, demonstrating the value of our long-term customer relationships. Given the strong year-to-date results and our confidence in the growth momentum in both businesses, we are raising our full year 2019 guidance ranges to meet our improved expectations. We are pleased with the trajectory and execution of both businesses as we continue to create clean water solutions for customers around the world.”

For earnings history and earnings-related data on AquaVenture Holdings Ltd. (WAAS) click here.

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