Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q4 2023 Earnings Conference Call March 28, 2024 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, everyone, and welcome. Thank you for joining us to discuss Consolidated Water Company's Full Year 2023 Results.
Hosting the call today is Chief Executive Officer of Consolidated Water Company, Rick McTaggart; the company's Chief Financial Officer, David Sasnett. Following their remarks, we'll open the call for 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 will be made available for telecom replay for 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 floor over to Consolidated Water Company's CEO, Rick McTaggart. Sir, please go ahead.
Frederick McTaggart
Thank you, Jamie. Good morning, everyone. Thank you for joining us today to discuss our results for 2023.
It's only fitting that 2023, which was our 50th year in business was also the most successful year in the history of the company. In our press release issued yesterday, we reported revenue of more than $180 million with gross profit of almost $62 million.
Revenue was up across all four of our business segments. Our retail water segment benefited from higher numbers of tourist visitors on Grand Cayman compared to 2022, which was lower than historical levels due to the pandemic. Our Services segment revenue increased by $69.1 million in 2023, with much of that increase generated by construction of the $81 million water recycling plant for Liberty Utilities in Goodyear, Arizona.
We successfully managed cost on this project and delivered it to the client much faster than expected resulting in improved gross margins in our Services segment. On January 12 of this year, we received a substantial completion certificate from the client, which was 18 days ahead of schedule.
On March 19, we received the approval of construction certificate from the county regulator, which was achieved 42 days ahead of schedule. We anticipate generating additional revenue from this project until it is fully completed in June of this year. FERC's strong operating performance and revenue growth continues 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 of this important segment of our business. In our U.S.