Energy Recovery Reports Its Second Quarter 2024 Financial Results
Energy Recovery, Inc. (Nasdaq:ERII) reported its Q2 2024 financial results, exceeding revenue guidance with $27.2 million. Despite a 31% year-over-year revenue increase, the company faced challenges with a decreased gross margin of 64.6% and increased operating expenses of $19.6 million. The company reported a net loss of $0.6 million but maintained a strong cash position of $138 million. Energy Recovery reaffirmed its full-year revenue guidance of $140-$150 million, with expectations of higher revenue in Q3 and Q4. The company also highlighted progress in its CO2 business, commissioning nine second-generation PX G1300 deployments.
Energy Recovery, Inc. (Nasdaq:ERII) ha riportato i risultati finanziari del secondo trimestre 2024, superando le previsioni di fatturato con un ammontare di 27,2 milioni di dollari. Nonostante un aumento del 31% delle entrate rispetto all'anno precedente, l'azienda ha affrontato difficoltà a causa di un margine di profitto lordo diminuito del 64,6% e di spese operative aumentate a 19,6 milioni di dollari. L'azienda ha registrato una perdita netta di 0,6 milioni di dollari, ma ha mantenuto una solida posizione di liquidità di 138 milioni di dollari. Energy Recovery ha riportato le previsioni di fatturato per l'intero anno a 140-150 milioni di dollari, con aspettative di entrate superiori nel terzo e quarto trimestre. L'azienda ha anche messo in evidenza i progressi nel suo business del CO2, avviando nove installazioni di seconda generazione del PX G1300.
Energy Recovery, Inc. (Nasdaq:ERII) reportó sus resultados financieros del segundo trimestre de 2024, superando las previsiones de ingresos con 27,2 millones de dólares. A pesar de un incremento del 31% en los ingresos interanuales, la empresa enfrentó desafíos con un margen bruto reducido del 64,6% y un aumento en los gastos operativos de 19,6 millones de dólares. La compañía reportó una pérdida neta de 0,6 millones de dólares, pero mantuvo una sólida posición de liquidez de 138 millones de dólares. Energy Recovery confirmó sus pronósticos de ingresos para todo el año de 140-150 millones de dólares, con expectativas de mayores ingresos en el tercer y cuarto trimestre. La empresa también destacó avances en su negocio de CO2, poniendo en marcha nueve despliegues de segunda generación del PX G1300.
Energy Recovery, Inc. (Nasdaq:ERII)는 2024년 2분기 재무 결과를 보고하며 매출 가이던스를 초과한 2720만 달러를 기록했습니다. 전년 대비 31%의 매출 증가에도 불구하고, 회사는 64.6%의 하락한 총 수익률과 1960만 달러의 증가된 운영비용이라는 어려움에 직면했습니다. 회사는 60만 달러의 순손실을 보고했지만, 1억 3800만 달러의 탄탄한 현금 보유금을 유지했습니다. Energy Recovery는 연간 매출 가이던스를 재확인하며, 1억 4000만 달러에서 1억 5000만 달러를 예상하고 있으며, 3분기와 4분기에 더 높은 매출을 기대하고 있습니다. 회사는 또한 CO2 사업의 진전을 강조하며, PX G1300의 2세대 설치 9개를 가동했습니다.
Energy Recovery, Inc. (Nasdaq:ERII) a annoncé ses résultats financiers pour le deuxième trimestre 2024, dépassant les prévisions de revenus avec 27,2 millions de dollars. Malgré une augmentation de 31 % des revenus par rapport à l’année précédente, la société a fait face à des défis avec une marge brute diminuée de 64,6 % et des charges d'exploitation augmentées à 19,6 millions de dollars. L'entreprise a déclaré une perte nette de 0,6 million de dollars mais a maintenu une solide position de liquidités de 138 millions de dollars. Energy Recovery a réaffirmé ses prévisions de revenus annuels de 140 à 150 millions de dollars, avec des attentes de revenus plus élevés au troisième et quatrième trimestre. La société a également souligné les progrès dans son activité CO2, commissionnant neuf déploiements de deuxième génération du PX G1300.
Energy Recovery, Inc. (Nasdaq:ERII) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei die Umsatzprognose übertroffen mit 27,2 Millionen Dollar. Trotz eines Umsatzanstiegs von 31% im Jahresvergleich sah sich das Unternehmen Herausforderungen gegenüber, darunter eine gesunkene Bruttomarge von 64,6% und gestiegene Betriebskosten von 19,6 Millionen Dollar. Das Unternehmen berichtete von einem Nettoverlust von 0,6 Millionen Dollar, hielt jedoch eine starke Liquiditätsposition von 138 Millionen Dollar aufrecht. Energy Recovery bekräftigte die Umsatzprognose für das gesamte Jahr von 140-150 Millionen Dollar, mit Erwartungen höherer Einnahmen im dritten und vierten Quartal. Das Unternehmen hob auch die Fortschritte in seinem CO2-Geschäft hervor und nahm neun zweite Generation PX G1300-Installationen in Betrieb.
- Revenue of $27.2 million, exceeding the upper end of guidance ($20-$25 million)
- 31% year-over-year revenue increase in Q2
- Reaffirmed full-year revenue guidance of $140-$150 million
- Strong cash position of $138 million
- Commissioned nine second-generation PX G1300 deployments in CO2 business
- Net loss of $0.6 million in Q2 2024
- Gross margin decreased by 80 basis points to 64.6% compared to Q2 2023
- Operating expenses increased by 21.4% to $19.6 million compared to Q2 2023
- Loss from operations of $2.0 million
- Year-to-date net loss increased by 12% to $8.9 million compared to 2023
Energy Recovery's Q2 2024 results present a mixed picture. While revenue of
The 31% year-over-year revenue growth is impressive, but it's important to note the 80 basis point decline in gross margin to
The company's cash position of
The PX G1300 deployments in the CO2 business could be a game-changer, but commercial adoption remains uncertain. Investors should watch for concrete evidence of market traction in coming quarters.
In summary, while Energy Recovery shows promise, the current financial performance doesn't yet reflect the potential. The upcoming strategy presentation will be important for understanding the company's path to profitability and sustained growth.
Energy Recovery's Q2 results offer intriguing insights into the clean energy technology sector. The company's focus on pressure exchanger technology positions it uniquely in the desalination and industrial CO2 markets, both of which are poised for growth amid global water scarcity and decarbonization efforts.
The 31% year-over-year revenue increase suggests strong market demand, potentially driven by increased adoption of energy recovery devices in desalination plants. However, the pressure on gross margins indicates possible supply chain challenges or pricing pressures, common in the current macroeconomic environment.
The company's strategic pivot towards the CO2 market with the PX G1300 is particularly noteworthy. With nine deployments completed and more in the pipeline, Energy Recovery is laying the groundwork for potential market leadership in industrial carbon capture applications. The emphasis on summer runtime data collection demonstrates a data-driven approach to product development and market penetration.
The heavily back-loaded revenue forecast for 2024 aligns with typical project-based business models in the industrial equipment sector. However, it also introduces heightened risk and potential volatility in financial performance.
Investors should closely monitor the upcoming strategy presentation, as it could provide important insights into Energy Recovery's long-term growth trajectory and its ability to capitalize on the expanding clean technology market.
Second Quarter Highlights
-
Revenue of
$27.2 million $20 $25 million -
Gross margin of
64.6% , a decrease of 80 bps, as compared to Q2’2023, due primarily to higher manufacturing costs. -
Operating expenses of
$19.6 million 21.4% , as compared to Q2’2023, due primarily to the enhancement of our corporate growth strategy, increased investments within sales and marketing, and executive transition costs. -
Loss from operations of
$2.0 million -
Net loss of
$0.6 million $5.2 million -
Cash and investments of
$138.0 million
David Moon, President and CEO, commented on the financial results: “Operationally, the second quarter played out as we expected and second quarter revenue of
Mr. Moon added, “In our CO2 business, we commissioned nine second-generation PX G1300 deployments at both existing and new customer sites with a tenth site to be commissioned by the end of August. We believe the summer runtime data we are collecting now, and will be collecting over the next few months, is crucial to the commercial adoption of the PX G1300.”
Mr. Moon continued, “On the corporate side, my team and I have made excellent progress on the strategic work undertaken earlier this year and have completed the Where to Play phase and we are now in the How to Play phase. I look forward to presenting the strategy and roadmap for using our PX technology to drive growth and to create real value for our shareholders.”
Financial Highlights |
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Quarter-to-Date |
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Year to Date |
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Q2’2024 |
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Q2’2023 |
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vs. Q2’2023 |
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|
2024 |
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2023 |
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2024 vs. 2023 |
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(In millions, except net loss per share, percentages and basis points) |
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Revenue |
|
|
|
|
up |
|
|
|
|
|
|
up |
Gross margin |
|
|
|
|
down 80 bps |
|
|
|
|
|
|
down 70 bps |
Operating margin |
( |
|
( |
|
up 510 bps |
|
|
( |
|
( |
|
down 170 bps |
Net loss |
( |
|
( |
|
up |
|
|
( |
|
( |
|
down |
Net loss per share |
( |
|
( |
|
up |
|
|
( |
|
( |
|
down |
Effective tax rate |
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by (used for) operations |
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|
( |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Highlights (1) |
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Quarter-to-Date |
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|
Year to Date |
||||||||
|
Q2’2024 |
|
Q2’2023 |
|
vs. Q2’2023 |
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|
2024 |
|
2023 |
|
2024 vs. 2023 |
|
(In millions, except adjusted net income (loss) per share, percentages and basis points) |
|||||||||||
Adjusted operating margin |
|
|
( |
|
NM |
|
|
( |
|
( |
|
NM |
Adjusted net income (loss) |
|
|
( |
|
NM |
|
|
|
|
( |
|
up |
Adjusted net income (loss) per share |
|
|
|
|
NM |
|
|
|
|
( |
|
up |
Adjusted EBITDA |
|
|
|
|
|
|
|
( |
|
( |
|
|
Free cash flow |
|
|
( |
|
|
|
|
|
|
|
|
|
| _____________ | |
| (1) | Refer to the sections “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively. |
| NM | Not Material |
Forward-Looking Statements
Certain matters discussed in this press release and on the conference call are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including expectations regarding revenue guidance for the year, the timing of potential new CO2 deployments, our belief that the summer runtime data is crucial to the commercial adoption of the PX G1300 . These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates, or projections and are not guarantees of future events or results. Potential risks and uncertainties include risks relating to the future demand for the Company’s products, risks relating to performance by our customers and third-party partners, risks relating to the timing of revenue, and any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business, and the risks discussed under “Risk Factors” in the Company’s Form 10-K filed with the
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted operating margin, adjusted net income (loss), adjusted net income (loss) per share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in
Notes to the Financial Results
- Adjusted operating margin is a non-GAAP financial measure that the Company defines as loss from operations which excludes i) share-based compensation; and ii) executive transition costs, such as executive search costs, retention costs, one-time severance costs and one-time corporate growth strategy costs, divided by revenues.
- Adjusted net income (loss) is a non-GAAP financial measure that the Company defines as net income which excludes i) share-based compensation; ii) executive transition costs; and iii) the applicable tax effect of the excluded items including the share-based compensation discrete tax item.
- Adjusted net income (loss) per share is a non-GAAP financial measure that the Company defines as net loss, which excludes i) share-based compensation; ii) executive transition costs and iii) the applicable tax effect of the excluded items including the share-based compensation discrete tax item, divided by basic shares outstanding.
- Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net loss which excludes i) depreciation and amortization; ii) share-based compensation; iii) executive transition costs; iv) other income, net, such as interest income and other non-operating expense, net; and v) provision for (benefit from) income taxes.
- Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by (used in) operating activities less capital expenditures.
Conference Call to Discuss Financial Results
LIVE CONFERENCE CALL:
Wednesday, July 31, 2024, 2:00 PM PT / 5:00 PM ET
Listen-only, US / Canada Toll-Free: +1 (877) 709-8150
Listen-only, Local / International Toll: +1 (201) 689-8354
CONFERENCE CALL REPLAY:
Available approximately three hours after conclusion of the live call.
Expiration: Friday, August 30, 2024
US / Canada Toll-Free: +1 (877) 660-6853
Local / International Toll: +1 (201) 612-7415
Access code: 13747957
Investors may also access the live call and the replay over the internet on the “Events” page of the Company’s website located at https://ir.energyrecovery.com/news-events/ir-calendar.
Disclosure Information
Energy Recovery uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Energy Recovery’s investor relations website in addition to following Energy Recovery’s press releases, SEC filings, and public conference calls and webcasts.
About Energy Recovery
Energy Recovery (Nasdaq: ERII) is a trusted global leader in energy efficiency technology. Building on the Company’s pressure exchanger technology platform, the Company designs and manufactures reliable, high-performance solutions that generate cost savings and increase energy efficiency across several industries. With a strong foundation in the desalination industry, the Company has delivered transformative solutions that optimize operations and deliver positive environmental impact to its customers worldwide for more than 30 years. Headquartered in the
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
|
June 30,
|
|
December 31,
|
||
|
(In thousands) |
||||
ASSETS |
|
|
|
||
Cash, cash equivalents and investments |
$ |
138,027 |
|
$ |
122,375 |
Accounts receivable and contract assets |
|
21,198 |
|
|
47,529 |
Inventories, net |
|
33,659 |
|
|
26,149 |
Prepaid expenses and other assets |
|
3,690 |
|
|
3,251 |
Property, equipment and operating leases |
|
27,847 |
|
|
30,168 |
Goodwill |
|
12,790 |
|
|
12,790 |
Deferred tax assets and other assets |
|
11,832 |
|
|
10,712 |
TOTAL ASSETS |
$ |
249,043 |
|
$ |
252,974 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Liabilities |
|
|
|
||
Accounts payable and accrued expenses |
$ |
14,906 |
|
$ |
18,583 |
Contract liabilities and other liabilities, non-current |
|
3,300 |
|
|
1,304 |
Lease liabilities |
|
12,324 |
|
|
13,279 |
Total liabilities |
|
30,530 |
|
|
33,166 |
|
|
|
|
||
Stockholders’ equity |
|
218,513 |
|
|
219,808 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
249,043 |
|
$ |
252,974 |
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands, except per share data) |
||||||||||||||
Revenue |
$ |
27,199 |
|
|
$ |
20,723 |
|
|
$ |
39,289 |
|
|
$ |
34,124 |
|
Cost of revenue |
|
9,633 |
|
|
|
7,180 |
|
|
|
14,588 |
|
|
|
12,426 |
|
Gross profit |
|
17,566 |
|
|
|
13,543 |
|
|
|
24,701 |
|
|
|
21,698 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
9,532 |
|
|
|
7,269 |
|
|
|
17,098 |
|
|
|
14,335 |
|
Sales and marketing |
|
6,104 |
|
|
|
5,092 |
|
|
|
12,256 |
|
|
|
9,986 |
|
Research and development |
|
3,944 |
|
|
|
3,768 |
|
|
|
8,295 |
|
|
|
8,074 |
|
Total operating expenses |
|
19,580 |
|
|
|
16,129 |
|
|
|
37,649 |
|
|
|
32,395 |
|
Loss from operations |
|
(2,014 |
) |
|
|
(2,586 |
) |
|
|
(12,948 |
) |
|
|
(10,697 |
) |
Other income, net |
|
1,614 |
|
|
|
656 |
|
|
|
3,003 |
|
|
|
1,312 |
|
Loss before income taxes |
|
(400 |
) |
|
|
(1,930 |
) |
|
|
(9,945 |
) |
|
|
(9,385 |
) |
Provision for (benefit from) income taxes |
|
242 |
|
|
|
(265 |
) |
|
|
(1,043 |
) |
|
|
(1,424 |
) |
Net loss |
$ |
(642 |
) |
|
$ |
(1,665 |
) |
|
$ |
(8,902 |
) |
|
$ |
(7,961 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.14 |
) |
Diluted |
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
|
||||||||
Number of shares used in per share calculations |
|
|
|
|
|
|
|
||||||||
Basic |
|
57,366 |
|
|
|
56,363 |
|
|
|
57,234 |
|
|
|
56,296 |
|
Diluted |
|
57,366 |
|
|
|
56,363 |
|
|
|
57,234 |
|
|
|
56,296 |
|
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(8,902 |
) |
|
$ |
(7,961 |
) |
Non-cash adjustments |
|
7,586 |
|
|
|
5,204 |
|
Net cash provided by (used in) operating assets and liabilities |
|
15,886 |
|
|
|
7,280 |
|
Net cash provided by operating activities |
|
14,570 |
|
|
|
4,523 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Net investment in marketable securities |
|
(42,895 |
) |
|
|
(16,269 |
) |
Capital expenditures |
|
(1,025 |
) |
|
|
(849 |
) |
Proceeds from sales of fixed assets |
|
90 |
|
|
|
82 |
|
Net cash used in investing activities |
|
(43,830 |
) |
|
|
(17,036 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Net proceeds from issuance of common stock |
|
1,502 |
|
|
|
379 |
|
Net cash provided by financing activities |
|
1,502 |
|
|
|
379 |
|
|
|
|
|
||||
Effect of exchange rate differences |
|
(24 |
) |
|
|
41 |
|
Net change in cash, cash equivalents and restricted cash |
$ |
(27,782 |
) |
|
$ |
(12,093 |
) |
Cash, cash equivalents and restricted cash, end of period |
$ |
40,443 |
|
|
$ |
44,365 |
|
ENERGY RECOVERY, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) |
|||||||||||||||
Channel Revenue |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
vs. 2023 |
|
|
2024 |
|
|
2023 |
|
vs. 2023 |
|
(In thousands, except percentages) |
||||||||||||||
Megaproject |
$ |
15,815 |
|
$ |
12,211 |
|
up |
|
$ |
19,915 |
|
$ |
15,454 |
|
up |
Original equipment manufacturer |
|
6,945 |
|
|
4,702 |
|
up |
|
|
10,291 |
|
|
11,538 |
|
down |
Aftermarket |
|
4,439 |
|
|
3,810 |
|
up |
|
|
9,083 |
|
|
7,132 |
|
up |
Total revenue |
$ |
27,199 |
|
$ |
20,723 |
|
up |
|
$ |
39,289 |
|
$ |
34,124 |
|
up |
Segment Activity |
|||||||||||||||||||||||||||||
|
Three Months Ended June 30, |
||||||||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||||||||
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
||||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||||
Revenue |
$ |
26,918 |
|
$ |
281 |
|
|
$ |
— |
|
|
$ |
27,199 |
|
|
$ |
20,514 |
|
$ |
209 |
|
|
$ |
— |
|
|
$ |
20,723 |
|
Cost of revenue |
|
9,345 |
|
|
288 |
|
|
|
— |
|
|
|
9,633 |
|
|
|
6,921 |
|
|
259 |
|
|
|
— |
|
|
|
7,180 |
|
Gross profit (loss) |
|
17,573 |
|
|
(7 |
) |
|
|
— |
|
|
|
17,566 |
|
|
|
13,593 |
|
|
(50 |
) |
|
|
— |
|
|
|
13,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
General and administrative |
|
1,912 |
|
|
984 |
|
|
|
6,636 |
|
|
|
9,532 |
|
|
|
1,860 |
|
|
947 |
|
|
|
4,462 |
|
|
|
7,269 |
|
Sales and marketing |
|
3,837 |
|
|
1,700 |
|
|
|
567 |
|
|
|
6,104 |
|
|
|
3,120 |
|
|
1,441 |
|
|
|
531 |
|
|
|
5,092 |
|
Research and development |
|
1,073 |
|
|
2,871 |
|
|
|
— |
|
|
|
3,944 |
|
|
|
843 |
|
|
2,925 |
|
|
|
— |
|
|
|
3,768 |
|
Total operating expenses |
|
6,822 |
|
|
5,555 |
|
|
|
7,203 |
|
|
|
19,580 |
|
|
|
5,823 |
|
|
5,313 |
|
|
|
4,993 |
|
|
|
16,129 |
|
Operating income (loss) |
$ |
10,751 |
|
$ |
(5,562 |
) |
|
$ |
(7,203 |
) |
|
$ |
(2,014 |
) |
|
$ |
7,770 |
|
$ |
(5,363 |
) |
|
$ |
(4,993 |
) |
|
$ |
(2,586 |
) |
|
Six Months Ended June 30, |
||||||||||||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||||||||||||
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
||||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||||
Revenue |
$ |
39,007 |
|
$ |
282 |
|
|
$ |
— |
|
|
$ |
39,289 |
|
|
$ |
33,810 |
|
$ |
314 |
|
|
$ |
— |
|
|
$ |
34,124 |
|
Cost of revenue |
|
14,299 |
|
|
289 |
|
|
|
— |
|
|
|
14,588 |
|
|
|
12,022 |
|
|
404 |
|
|
|
— |
|
|
|
12,426 |
|
Gross profit (loss) |
|
24,708 |
|
|
(7 |
) |
|
|
— |
|
|
|
24,701 |
|
|
|
21,788 |
|
|
(90 |
) |
|
|
— |
|
|
|
21,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
General and administrative |
|
3,834 |
|
|
2,002 |
|
|
|
11,262 |
|
|
|
17,098 |
|
|
|
3,798 |
|
|
1,915 |
|
|
|
8,622 |
|
|
|
14,335 |
|
Sales and marketing |
|
7,582 |
|
|
3,507 |
|
|
|
1,167 |
|
|
|
12,256 |
|
|
|
6,295 |
|
|
2,611 |
|
|
|
1,080 |
|
|
|
9,986 |
|
Research and development |
|
2,173 |
|
|
6,122 |
|
|
|
— |
|
|
|
8,295 |
|
|
|
2,023 |
|
|
6,051 |
|
|
|
— |
|
|
|
8,074 |
|
Total operating expenses |
|
13,589 |
|
|
11,631 |
|
|
|
12,429 |
|
|
|
37,649 |
|
|
|
12,116 |
|
|
10,577 |
|
|
|
9,702 |
|
|
|
32,395 |
|
Operating income (loss) |
$ |
11,119 |
|
$ |
(11,638 |
) |
|
$ |
(12,429 |
) |
|
$ |
(12,948 |
) |
|
$ |
9,672 |
|
$ |
(10,667 |
) |
|
$ |
(9,702 |
) |
|
$ |
(10,697 |
) |
Share-based Compensation |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(In thousands) |
||||||||||
Stock-based compensation expense charged to: |
|
|
|
|
|
|
|
||||
Cost of revenue |
$ |
461 |
|
$ |
148 |
|
$ |
804 |
|
$ |
397 |
General and administrative |
|
1,011 |
|
|
763 |
|
|
2,418 |
|
|
1,723 |
Sales and marketing |
|
912 |
|
|
550 |
|
|
1,922 |
|
|
1,248 |
Research and development |
|
433 |
|
|
255 |
|
|
956 |
|
|
652 |
Total stock-based compensation expense |
$ |
2,817 |
|
$ |
1,716 |
|
$ |
6,100 |
|
$ |
4,020 |
ENERGY RECOVERY, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1) (Unaudited) |
|||||||||||||||
This press release includes certain non-GAAP financial information because we plan and manage our business using such information. The following table reconciles the GAAP financial information to the non-GAAP financial information. |
|||||||||||||||
|
Quarter-to-Date |
|
Year to Date |
||||||||||||
|
Q2'2024 |
|
Q2'2023 |
|
Q2'2024 |
|
Q2'2023 |
||||||||
|
(In millions, except shares, per share and percentages) |
||||||||||||||
Operating margin |
|
(7.4 |
)% |
|
|
(12.5 |
)% |
|
|
(33.0 |
)% |
|
|
(31.3 |
)% |
Share-based compensation |
|
10.4 |
|
|
|
8.3 |
|
|
|
15.5 |
|
|
|
11.8 |
|
Executive transition costs |
|
12.3 |
|
|
|
— |
|
|
|
9.7 |
|
|
|
— |
|
Adjusted operating margin |
|
15.3 |
% |
|
|
(4.2 |
)% |
|
|
(7.7 |
)% |
|
|
(19.6 |
)% |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(0.6 |
) |
|
$ |
(1.7 |
) |
|
$ |
(8.9 |
) |
|
$ |
(8.0 |
) |
Share-based compensation |
|
2.8 |
|
|
|
1.7 |
|
|
|
6.1 |
|
|
|
4.0 |
|
Executive transition costs (2) |
|
3.0 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
— |
|
Share-based compensation discrete tax item |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.6 |
) |
Adjusted net income (loss) |
$ |
5.1 |
|
|
$ |
(0.1 |
) |
|
$ |
0.5 |
|
|
$ |
(4.6 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share |
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.14 |
) |
Adjustments to net loss per share (3) |
|
0.10 |
|
|
|
0.03 |
|
|
|
0.17 |
|
|
|
0.06 |
|
Adjusted net income (loss) per share |
$ |
0.09 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(0.6 |
) |
|
$ |
(1.7 |
) |
|
$ |
(8.9 |
) |
|
$ |
(8.0 |
) |
Share-based compensation |
|
2.8 |
|
|
|
1.7 |
|
|
|
6.1 |
|
|
|
4.0 |
|
Depreciation and amortization |
|
1.0 |
|
|
|
1.0 |
|
|
|
2.0 |
|
|
|
2.0 |
|
Executive transition costs |
|
3.3 |
|
|
|
— |
|
|
|
3.8 |
|
|
|
— |
|
Other income, net |
|
(1.6 |
) |
|
|
(0.7 |
) |
|
|
(3.0 |
) |
|
|
(1.3 |
) |
Provision for (benefit from) income taxes |
|
0.2 |
|
|
|
(0.3 |
) |
|
|
(1.0 |
) |
|
|
(1.4 |
) |
Adjusted EBITDA |
$ |
5.2 |
|
|
$ |
0.2 |
|
|
$ |
(1.0 |
) |
|
$ |
(4.7 |
) |
|
|
|
|
|
|
|
|
||||||||
Free cash flow |
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
$ |
8.1 |
|
|
$ |
(4.1 |
) |
|
$ |
14.6 |
|
|
$ |
4.5 |
|
Capital expenditures |
|
(0.2 |
) |
|
|
(0.6 |
) |
|
|
(1.0 |
) |
|
|
(0.8 |
) |
Free cash flow |
$ |
7.9 |
|
|
$ |
(4.7 |
) |
|
$ |
13.5 |
|
|
$ |
3.7 |
|
| __________ | |
| (1) | Amounts may not total due to rounding. |
| (2) | Amounts presented are net of tax. |
| (3) | Refer to the sections “Use of Non-GAAP Financial Measures” for description of items included in adjustments. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731308337/en/
Investor Relations
ir@energyrecovery.com
+1 (346) 382-6927
Source: Energy Recovery, Inc.
FAQ
What was Energy Recovery's (ERII) revenue for Q2 2024?
Did Energy Recovery (ERII) report a profit or loss in Q2 2024?
What is Energy Recovery's (ERII) full-year revenue guidance for 2024?
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