Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q3 2023 Earnings Conference Call November 10, 2023 11:00 AM ET
Company Participants
Frederick McTaggart - CEO
David Sasnett - CFO
Conference Call Participants
Gerry Sweeney - ROTH Capital
John Bair - Ascend Wealth Advisors
Operator
Good morning. Thank you for joining us today to discuss Consolidated Water Company's Third Quarter of 2023 Results. Hosting the call today is the Chief Executive Officer of Consolidated Water Company, Rick McTaggart; and the company's Chief Financial Officer, David Sasnett. Following their remarks, we will open the call to your questions. [Operator Instructions]
Before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made by management during the call. I'd like to remind everyone that today's call is being recorded, and it 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.
Frederick McTaggart
Thanks, Joe. Good morning, everybody. Thank you for joining us today to discuss our results for the third quarter of 2023.
Like last quarter, we're reporting record quarterly revenue and earnings as you saw in our press release yesterday, we reported a nearly 100% increase in revenue to $49.9 million, compared to the third quarter last year. Revenue was up in three of our four business segments.
Our Retail Water segment benefited from a 16% increase in the volume of water sold in Grand Cayman and we attribute this increase to improved tourist activity since third quarter last year, the island was still recovering from the lingering impacts of the pandemic.
Our Services segment revenue increased by $20.7 million in the third quarter with much of that increase generated by the progress, our PERC water subsidiary, is made on construction of an $82 million advanced water treatment plant in Goodyear, Arizona. We've managed to control our costs on this project much better than anticipated, resulting in improved gross margins for our Services segment.
Construction on this project is progressing as planned, and we anticipate generating additional revenue from the project until construction, commissioning and start-up is completed at the end of the second quarter of next year. PERC continued strong operating performance and revenue growth, continue to significantly improve our top and bottom line.
Its strong operational presence in the Southwestern U.S., a region that urgently needs new freshwater sources, due to unprecedented drought conditions, has positioned us for further growth and development in this important segment of our business.