AquaVenture Holdings Limited (NYSE:WAAS) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 08:00 am ET
Good morning and welcome to the AquaVenture Holdings Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
At this time, I would like to turn the conference over to Courtney Denihan, Investor Relations at AquaVenture. Thank you. Please go ahead.
Thank you, operator. Good morning, everyone. We released our earnings press release this morning and posted a slide presentation to the Investor Relations section of our website at investors.aquaventure.com. We will be referencing the slides during this call. Present on today's call are Tony Ibarguen, Chief Executive Officer; Lee Muller, Chief Financial Officer; and Doug Brown, Chairman of the Board.
Before we begin, let me remind everyone that this call will contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are many risks, uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such forward-looking statements, please refer to our SEC filings for a discussion of such risks, uncertainties and other factors. We do not undertake any duty to update any such forward-looking statements.
In addition, during today's call we will discuss non-GAAP measures and other key metrics, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP measures to the most comparable GAAP measure can be found in our earnings release.
I would now like to turn the call over to our Chief Executive Officer, Tony Ibarguen.
Good morning and thank you for joining us on today's call. I'd like to start today's call by commenting on AquaVenture's overall performance in the third quarter of 2019, including both financial and operating highlights. Lee will then walk you through our financial results in more detail and I'll return to provide an update on our outlook for 2019 and some closing remarks. Finally, Doug, Lee and I would be happy to take your questions.
Starting on slide 3, AquaVenture had another excellent quarter with total revenues of $52.9 million, representing a 43.8% year-over-year increase. This increase was comprised of 10.5% organic growth and 33.3% inorganic growth reflecting our continued strong organic performance and the successful integration of our strategic acquisitions over the past year. We reported adjusted EBITDA of $20.4 million during the third quarter of 2019, a 60.5% increase over the prior year period and adjusted EBITDA margin of 38.4% a 400 basis point improvement. Adjusted EBITDA plus principal collected was $21.7 million for the third quarter, a 55.9% increase year-over-year.
Moving to slide 4, we recently announced two acquisitions on October 1st. Mirex AquaPure Solutions, based in Houston, Texas and Flowline Canada based in Edmonton, Canada. Mirex was an early adopter of cross selling ice dispensers into current bottleless water cooler accounts [Phonetic] and delivers high quality service at above average rental rates. It was in business for over 20 years and built up a