Energy Recovery, Inc. (NASDAQ:ERII) Q1 2022 Results Conference Call May 4, 2022 5:00 PM ET

Company Participants

James Siccardi - VP, IR

Bob Mao - Chairman, President and CEO

Joshua Ballard - CFO

Conference Call Participants

Pavel Molchanov - Raymond James

Ray Deacon - Petro Lotus

Wally Walker - Hana Road

Operator

Greetings and welcome to Energy Recovery First Quarter 2022 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I’d now like to turn the conference over to your host, James Siccardi. Please go ahead.

James Siccardi

Hello everyone and welcome to Energy Recovery’s 2022 first quarter earnings conference call. My name is Jim Siccardi, Vice President of Investor Relations at Energy Recovery. I am here today our Chairman, President and Chief Executive Officer, Bob Mao; and our Chief Financial Officer, Joshua Ballard.

During today’s call, we may make projections and other forward-looking statements under the Safe Harbor provisions, contained in the Private Securities Litigation Reform Act of 1995 regarding future events or the future financial performance of the Company. These statements may discuss our business, economic and market outlook, growth expectations, new products and the performance cost structure and business strategy. Forward-looking statements are based on information currently available to us and on management’s beliefs, assumptions, estimates or projections. Forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. We refer you to documents the Company files from time-to-time with the SEC, specifically the Company’s Form 10-K and Form 10-Q. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.

All statements made during this call are made only as of today, May 4, 2022, and the Company expressly disclaims any intent or obligation to update any forward-looking statements made during this call, to reflect subsequent events or circumstances, unless otherwise required by law.

At this point, I’d like to turn the call over to our Chairman, President and Chief Executive Officer, Bob Mao.

Bob Mao

Thank you, Jim, and thank you everyone for joining us.

We delivered a strong first quarter with revenue of $32.5 million, a 12% increase over the first quarter of 2021. Importantly, we also delivered over $8 million in operating income, a 34% increase over Q1 last year. The fact that our operating income grew almost 3 times our revenue underlines our continued focus on profitability as we grow.