Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q1 2020 Earnings Conference Call - Final Transcript
May 18, 2020 • 11:00 am ET
Good morning. Thank you for joining us today to discuss Consolidated Water Company's First Quarter of 2020 Results ended March 31, 2020. Joining us 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.
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 last Friday's press release, which is available in the Investor Relations section of the Company's website. Now, I would like to turn the call over to Consolidated Water Company's CEO, Rick McTaggart. Sir, please go ahead.
Frederick W. McTaggart
Thanks a lot, Sean, and good morning everyone. Thanks for joining us on today's call. The first quarter of 2020 was a solid quarter for Consolidated Water. We made strong progress in growing our overall business and expanding our operational platform to support continued growth and market reach. Our 22% increase in revenue to a record $20.7 million was largely due to $3 million that was contributed by PERC Water, our new 51% owned subsidiary that we acquired in the fourth quarter of last year. Our retail segment and manufacturing segment also contributed to the increase in overall revenue, with these segments' gross profits also up from the first quarter of last year.
Water management challenges continue to create demand not only for potable water solutions like desalination, but also for wastewater treatment and reuse projects. PERC supports our pursuit of these water reuse projects and other emerging opportunities and has proven to be highly complementary and synergistic to our existing business and overall mission. PERC allows us to offer comprehensive solutions for improving water and wastewater treatment infrastructures and provides us a solid platform upon which we can expand our core business of designing, constructing and operating desalination plants in North America. PERC also exemplifies the high-quality opportunities we are pursuing to drive continued growth and enhance shareholder value over the coming years.
Also in the first quarter, we acquired the remaining 49% interest in Aerex Industries, our manufacturing subsidiary based in Ft. Pierce, Florida. Since we acquired our original 51% of Aerex back in February 2016, we have strengthened its capabilities and resources as well as expanded its product offerings. As a result, their performance has improved substantially and we expect Aerex to continue to enhance our shareholder value over the coming years.
Now, before I go further, I'd like to turn the call over to David, who will take us through the financial details of the quarter. I'll then return to provide more information on how COVID-19 has impacted our operational activities and the Company's outlook for the remainder of the year. David?
David W. Sasnett
Thanks, Rick. Good morning, everyone. Hopefully everyone's had a chance to look at our press release, which we issued on Friday. Our