Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q1 2024 Earnings Conference Call May 16, 2024 11:00 AM ET
Company Participants
Frederick McTaggart - CEO
David Sasnett - CFO
Conference Call Participants
David Thomas - BoA
Matthew Schwarz - Maze Investments
Brandon Rogers - ROTH Capital
John Bair - Ascend Wealth Advisors
Operator
Good morning, thank you for joining us today to discuss Consolidated Water Company's First Quarter 2024 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, Rocco, and good morning, everyone. Thank you for joining us today to discuss our results for our first quarter of 2024.
As you saw in our press release issued yesterday, we reported a 21% increase in revenue to $39.7 million for the quarter, with substantial growth across three of our four business segments. Our retail water segment benefited from a 10% increase in the volume of retail water sold within our utility service area on Grand Cayman. And we believe this was due to resident population growth and lower rainfall amounts on Grand Cayman during the first quarter of this year compared to the first quarter of 2023.
Our Retail revenues also benefited to a significant portion of our water authority Cayman and water truckers during the quarter. Our services segment revenue was $17.4 million this quarter, a 37% or $4.7 million increase compared to last year. This increase resulted from slightly higher design build revenues and a 93% increase in recurring operating and maintenance revenue generated by PERC and our newest subsidiary, Ramey Environmental Compliance, or REC.
During the first quarter, we recognized $1.8 million in operations and maintenance revenue from REC, which we acquired in October of last year. REC's stellar track record and industry reputation provides a very effective new channel for the company to provide design, build and operation services in water stress regions of Colorado. REC operates and maintains water and wastewater treatment plants and provides technical services to more than 100 clients in the mountain and eastern plains regions of Colorado. REC's O&M business is very similar to PERCs.