Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q2 2019 Earnings Conference Call Transcript
Aug 12, 2019 • 11:00 am ET
Good morning. Thank you for joining us today to discuss Consolidated Water Company's Second Quarter Ended June 30, 2019. Joining us today is the Chief Executive Officer of Consolidated Water Company, Rick McTaggart. He is joined by the company's Chief Financial Officer, David Sasnett. Following their remarks, we'll open the call to questions.
But 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 via instructions in today's press release, which is available in the Investor Relations 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 W. McTaggart
Thank you, Elisa, and good morning, everyone. Thanks for joining us today on the call. As you saw in the earnings release we issued on Friday, we realized another quarter of double-digit growth in revenue, gross profit and net income. This was driven mostly by a continued increased production activity in our manufacturing business, which I have to say has really come back strong this year after devoting a portion of its capacity last year to projects for our other subsidiaries.
Total revenues for the quarter reached $18.3 million, up 22% over last year. Manufacturing represented $3.3 million of this growth, with retail adding another $715,000. The growth in our manufacturing was due to a renewed focus on industrial sales, with strong execution by our sales team, combined with increased customer demand for our specialized products.
Given these results and a healthy backlog, we expect to continue the progress made by our manufacturing business in the second half of this year. The growth in our retail was partly due to the fact that the weather in Grand Cayman has been drier this year. Rainfall in the second quarter was down 76% compared to last year, requiring the local population to use more of our water. And looking at the first half of 2019, rainfall in our Cayman Island service area was down 55%, with rainfall in the first half compared to rainfall in the first half of 2018. And it was also 55% lower than the 30-year average. We don't know if this trend will continue, but we're prepared with adequate production capacity in any event.
Now before I go further, I'd like to turn the call over to our CFO, David Sasnett, who will take us through the financial details for the quarter. And I'll come back to discuss a little more about our recent operational activities and the outlook for the remainder of the year.
David W. Sasnett
Good morning, everyone.
As Rick mentioned, our total revenues grew 22% to $18.3 million, reflecting revenue growth for both our manufacturing and our retail segment. Our manufacturing segment revenues were up due to an increase in the number of orders, which led to expanded project production activity.
Our increases in manufacturing and retail revenues