Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q1 2023 Earnings Conference Call May 16, 2023 11:00 AM ET
Company Participants
Frederick McTaggart - President, Chief Executive Officer and Director
David Sasnett - Executive Vice President and Chief Financial Officer
Operator
Good morning. Thank you for joining us today to discuss Consolidated Water Company's First 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 will 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
Thank you, Sarah. Good morning, everybody, and thank you for joining us today to discuss our results for the first quarter of 2023. As you saw in our earnings release yesterday evening, we reported a 68% increase in revenue to $32.9 million, with revenue up across all four of our business segments.
Our top line results reflect both a return to normalcy after the pandemic and increased activity and output from all four business segments. Our retail water revenues benefited from a 20% increase in the volume of water sold in Grand Cayman last quarter. Approximately one-quarter of this volume increase was attributable to direct water sales to the government-owned Water Authority of the Cayman Islands. The remainder of the sales volume increase was due to increased tourist activity on Grand Cayman as tourism on the island last year was lower than historical levels due to the lingering impacts of the pandemic.
Our Services segment revenue increased by $8 million with most of this increase due to the progress our PERC Water subsidiary has made on its construction of an $82 million advanced water treatment plant in Goodyear, Arizona, and we announced this project in May of last year. We recognized about $6.4 million in revenues from this project in the first quarter of this year.
Construction is progressing as planned, and we anticipate recognizing significant additional revenue from this project until construction, commissioning and start-up is completed in mid-2024. As many of you know, PERC develops, designs, builds, operates and manages water infrastructure facilities in the Southwestern U.S. In January, we acquired the remaining 39% interest in PERC that we did not previously own.