Energy Recovery Reports Record Full Year and Fourth Quarter Revenue for 2023
- Record annual revenue of $128.3 million with a 79% growth in wastewater for 2023.
- Record quarterly revenue of $57.2 million, a 35% year-on-year increase.
- Gross margin of 67.8% and operating expenses of $68.0 million.
- Net income of $21.5 million and adjusted EBITDA of $31.2 million.
- Cash and investments totaling $122.4 million.
- CEO David Moon focuses on growth in desalination and wastewater sectors, aiming for market diversification and shareholder value in 2024.
- None.
Insights
The reported financial results of Energy Recovery, Inc. show a mixed picture, with record annual revenue of $128.3 million, indicating a robust revenue growth trajectory over nine years. The 79% growth in the wastewater sector is particularly noteworthy, as it suggests successful diversification and penetration into new markets. However, the slight revenue increase from the previous year ($128.3 million in 2023 vs. $125.6 million in 2022) implies a slowing momentum that investors should monitor closely.
While the gross margin has slightly declined year-on-year, it remains high at 67.8%, reflecting strong pricing power or cost management. The operating cash flow more than doubling is a positive indicator of the company's liquidity and operational efficiency. The delay in the shipment of a significant project, which is now expected to ship in 2024, could have implications for short-term revenue recognition but may not significantly impact the long-term financial health of the company.
Energy Recovery's strategic focus on its core desalination business and expansion into CO2 refrigeration and wastewater aligns with broader industry trends towards sustainable and diversified energy solutions. The emphasis on disciplined expense and cash management is essential for maintaining financial stability and shareholder value, especially in the context of the company's growth and diversification strategy.
The reported increase in sales of the PX Q400 in the megaproject channel and the company's efforts to integrate the PX G1300 into U.S. and European supermarket chains are indicative of Energy Recovery's product development success and market expansion strategy. The wastewater sector's potential to constitute 10% of Water revenue within three years demonstrates the company's strategic positioning in a growing market segment.
However, the company's operating margin has decreased by 500 basis points year-on-year, which may raise concerns about operational efficiency and profitability amid expansion efforts. Stakeholders should consider whether the investments in new market opportunities are yielding the expected returns and if the company's strategy is sustainable in the long run.
Energy Recovery's commitment to rebuilding shareholder value and trust is crucial, as this reflects on the company's awareness of the importance of maintaining a positive market perception, which can influence stock performance. The company's forward-looking statements about defending its leadership position and investing in new markets should be evaluated in the context of its ability to consistently deliver on its strategic initiatives.
Energy Recovery's focus on desalination, wastewater treatment and CO2 refrigeration technologies positions it well in the environmental technology sector, which is expected to grow due to increasing global demand for sustainable and efficient resource management solutions. The company's successful revenue growth in wastewater treatment is particularly aligned with the global push towards better water conservation and treatment technologies.
The introduction of the PX Q400, described as the company's newest and most efficient product, is a testament to Energy Recovery's commitment to innovation. This product's expected sales growth suggests market acceptance and the potential for significant energy savings in large-scale desalination projects.
The push to get the PX G1300 into multiple supermarket chains is an example of how Energy Recovery is leveraging its technology in different sectors to reduce energy consumption and greenhouse gas emissions. This diversification into CO2 refrigeration could provide a competitive edge in an industry increasingly focused on reducing carbon footprints.
Fiscal Year 2023 Highlights
-
Record annual revenue of
$128.3 million 79% growth in wastewater and represents nine consecutive years of revenue growth. -
Record quarterly revenue of
$57.2 million 35% year-on-year growth with strong performance in Energy Recovery’s primary desalination business and the continued rapid expansion of the company’s wastewater sector. Water revenue was below guidance due to the delayed shipment of a single project to be shipped in 2024. This project was highlighted as a potential risk in the Q3 earnings call. -
Gross margin of
67.8% , within Energy Recovery’s expectations and above guidance. -
Operating expenses of
$68.0 million -
Income from operations of
$19.1 million -
Net income of
$21.5 million $31.2 million - Operating cash flow for the year more than doubled largely due to strong customer collections and strategic efforts to optimize raw inventory turnover rates.
-
Cash and investments of
$122.4 million
“We achieved record annual and fourth quarter revenue in 2023, which represents our ninth consecutive year of revenue growth despite a shift of
“Our core desalination business is healthy, our wastewater business continues to grow rapidly, and we are making progress in our CO2 refrigeration business. This year, we expect to see our newest and most efficient product, the PX Q400, achieve roughly
Mr. Moon added, “Our focus in 2024, and beyond, is rebuilding shareholder value and trust within the market. We remain committed to our growth strategy of diversification into new markets, which is key to Energy Recovery’s future. In 2024, we will continue to defend our leadership position in our core desalination business, and invest in new market opportunities in CO2 and wastewater, while managing both expenses and cash with discipline and a focus on investing in the highest and best use of shareholder capital. I am excited by the long-term growth prospects and believe we are well-positioned to continue to grow.”
Financial Highlights
|
Quarter-to-Date |
|
|
Year-to-Date |
||||||||
|
Q4’2023 |
|
Q4’2022 |
|
vs. Q4’2022 |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
(In millions, except net income per share, percentages and basis points) |
|||||||||||
Revenue |
|
|
|
|
up |
|
|
|
|
|
|
up |
Gross margin |
|
|
|
|
down 160 bps |
|
|
|
|
|
|
down 180 bps |
Operating margin |
|
|
|
|
up 150 bps |
|
|
|
|
|
|
down 500 bps |
Net income |
|
|
|
|
up |
|
|
|
|
|
|
down |
Net income per share |
|
|
|
|
up |
|
|
|
|
|
|
down |
Effective tax rate |
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operations |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Highlights (1)
|
Quarter-to-Date |
|
|
Year-to-Date |
||||||||
|
Q4’2023 |
|
Q4’2022 |
|
vs. Q4’2022 |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
(In millions, except adjusted net income per share, percentages and basis points) |
|||||||||||
Adjusted operating margin |
|
|
|
|
up 200 bps |
|
|
|
|
|
|
down 510 bps |
Adjusted net income |
|
|
|
|
up |
|
|
|
|
|
|
down |
Adjusted net income per share |
|
|
|
|
up |
|
|
|
|
|
|
down |
Adjusted effective tax rate |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
|
|
|
|
|
|
|
|
|
|
|
| ___________ | ||
(1) |
Refer to the sections “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” for definition of adjustment to GAAP presentation. | |
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 the shipment of projects; our belief that our core desalination business remains strong; our expectations regarding the growth of our wastewater business; our belief we are making progress in our CO2 business; our belief that we can defend our position in seawater desalination; our ability to build shareholder value; and our belief that the Company is well positioned to continue to grow. These forward-looking statements are based on information currently available to us 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 our 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, adjusted net income per share, adjusted effective tax rate, 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 Fourth Quarter and Fiscal 2023 Financial Results
- Adjusted operating margin is a non-GAAP financial measure that the Company defines as income from operations which excludes i) share-based compensation; and ii) non-core operational costs, such as VorTeq-related severance costs and accelerated depreciation, divided by revenues.
- Adjusted net income is a non-GAAP financial measure that the Company defines as net income which excludes i) share-based compensation; ii) non-core operational costs, such as VorTeq-related severance costs and accelerated depreciation; and iii) the applicable tax effect of the excluded items including the share-based compensation discrete tax item.
- Adjusted net income per share is a non-GAAP financial measure that the Company defines as net income, which excludes i) share-based compensation; and ii) non-core operational costs, such as VorTeq-related severance costs and accelerated depreciation; and iii) the applicable tax effect of the excluded items including the share-based compensation discrete tax item, divided by basic shares outstanding.
- Adjusted effective tax rate reflects adjustments for share-based compensation discrete tax item, share-based compensation, and VorTeq-related severance costs and accelerated depreciation.
- Adjusted EBITDA is a non-GAAP financial measure that the Company defines as net income which excludes i) depreciation and amortization; ii) share-based compensation; iii) non-core operational costs, such as VorTeq-related severance costs; iv) other income, net, such as interest income and other non-operating income (expense), net; and v) provision for income taxes.
- Free cash flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities less capital expenditures.
Conference Call to Discuss Fourth Quarter and Fiscal 2023 Financial Results
LIVE CONFERENCE CALL:
Wednesday, February 21, 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:
Expiration: March 22, 2024
US / Canada Toll-Free: +1 (877) 660-6853
Local / International Toll: +1 (201) 612-7415
Access code: 13743738
Investors may access the live call and the replay (approximately three hours after the live call concludes) over the internet on the “Events” page 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 our pressure exchanger technology platform, we design and manufacture reliable, high-performance solutions that generate cost savings and increase energy efficiency across several industries. With a strong foundation in the desalination industry, Energy Recovery has delivered transformative solutions that optimize operations and deliver positive environmental impact to our customers worldwide for more than 30 years. Headquartered in the
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
|
2023 |
|
2022 |
||
|
(In thousands) |
||||
ASSETS |
|
|
|
||
Cash, cash equivalents and investments |
$ |
122,375 |
|
$ |
92,891 |
Accounts receivable and contract assets |
|
47,529 |
|
|
35,782 |
Inventories, net |
|
26,149 |
|
|
28,366 |
Prepaid expenses and other assets |
|
3,251 |
|
|
3,886 |
Property, equipment and operating leases |
|
30,168 |
|
|
32,695 |
Goodwill |
|
12,790 |
|
|
12,790 |
Deferred tax assets and other assets |
|
10,712 |
|
|
10,629 |
TOTAL ASSETS |
$ |
252,974 |
|
$ |
217,039 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Liabilities |
|
|
|
||
Accounts payable and accrued expenses |
$ |
18,583 |
|
$ |
15,507 |
Contract liabilities and other liabilities, non-current |
|
1,304 |
|
|
1,316 |
Lease liabilities |
|
13,279 |
|
|
14,878 |
Total liabilities |
|
33,166 |
|
|
31,701 |
|
|
|
|
||
Stockholders’ equity |
|
219,808 |
|
|
185,338 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
252,974 |
|
$ |
217,039 |
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
(In thousands, except per share data) |
||||||||||
Revenue |
$ |
57,189 |
|
$ |
42,291 |
|
$ |
128,349 |
|
$ |
125,591 |
Cost of revenue |
|
17,690 |
|
|
12,400 |
|
|
41,270 |
|
|
38,235 |
Gross profit |
|
39,499 |
|
|
29,891 |
|
|
87,079 |
|
|
87,356 |
|
|
|
|
|
|
|
|
||||
Operating expenses |
|
|
|
|
|
|
|
||||
General and administrative |
|
7,160 |
|
|
7,186 |
|
|
28,864 |
|
|
28,341 |
Sales and marketing |
|
6,767 |
|
|
4,361 |
|
|
22,164 |
|
|
16,277 |
Research and development |
|
4,958 |
|
|
3,739 |
|
|
17,001 |
|
|
17,909 |
Total operating expenses |
|
18,885 |
|
|
15,286 |
|
|
68,029 |
|
|
62,527 |
Income from operations |
|
20,614 |
|
|
14,605 |
|
|
19,050 |
|
|
24,829 |
Other income, net |
|
1,298 |
|
|
765 |
|
|
3,655 |
|
|
1,242 |
Income before income taxes |
|
21,912 |
|
|
15,370 |
|
|
22,705 |
|
|
26,071 |
Provision for income taxes |
|
2,107 |
|
|
1,645 |
|
|
1,201 |
|
|
2,022 |
Net income |
$ |
19,805 |
|
$ |
13,725 |
|
$ |
21,504 |
|
$ |
24,049 |
|
|
|
|
|
|
|
|
||||
Net income per share |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.35 |
|
$ |
0.25 |
|
$ |
0.38 |
|
$ |
0.43 |
Diluted |
$ |
0.34 |
|
$ |
0.24 |
|
$ |
0.37 |
|
$ |
0.42 |
|
|
|
|
|
|
|
|
||||
Number of shares used in per share calculations |
|
|
|
|
|
|
|
||||
Basic |
|
56,735 |
|
|
56,014 |
|
|
56,444 |
|
|
56,221 |
Diluted |
|
57,671 |
|
|
57,433 |
|
|
57,740 |
|
|
57,641 |
ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
Years Ended December 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(In thousands) |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
21,504 |
|
|
$ |
24,049 |
|
Non-cash adjustments |
|
13,889 |
|
|
|
14,447 |
|
Net cash used in operating assets and liabilities |
|
(9,339 |
) |
|
|
(25,865 |
) |
Net cash provided by operating activities |
|
26,054 |
|
|
|
12,631 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Net investment in marketable securities |
|
(16,634 |
) |
|
|
(3,816 |
) |
Capital expenditures |
|
(2,567 |
) |
|
|
(4,232 |
) |
Proceeds from sales of fixed assets |
|
87 |
|
|
|
1,102 |
|
Net cash used in investing activities |
|
(19,114 |
) |
|
|
(6,946 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Net proceeds from issuance of common stock |
|
4,794 |
|
|
|
2,986 |
|
Repurchase of common stock |
|
— |
|
|
|
(26,654 |
) |
Net cash provided by (used in) financing activities |
|
4,794 |
|
|
|
(23,668 |
) |
|
|
|
|
||||
Effect of exchange rate differences |
|
33 |
|
|
|
(20 |
) |
Net change in cash, cash equivalents and restricted cash |
$ |
11,767 |
|
|
$ |
(18,003 |
) |
Cash, cash equivalents and restricted cash, end of year |
$ |
68,225 |
|
|
$ |
56,458 |
|
ENERGY RECOVERY, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) |
|||||||||||||||
Channel Revenue |
|||||||||||||||
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
vs. 2022 |
|
2023 |
|
2022 |
|
vs. 2022 |
||||
|
(In thousands, except percentages) |
||||||||||||||
Megaproject |
$ |
41,382 |
|
$ |
30,631 |
|
up |
|
$ |
83,665 |
|
$ |
81,888 |
|
up |
Original equipment manufacturer |
|
9,150 |
|
|
7,466 |
|
up |
|
|
25,995 |
|
|
28,858 |
|
down |
Aftermarket |
|
6,657 |
|
|
4,194 |
|
up |
|
|
18,689 |
|
|
14,845 |
|
up |
Total revenue |
$ |
57,189 |
|
$ |
42,291 |
|
up |
|
$ |
128,349 |
|
$ |
125,591 |
|
up |
Segment Activity |
|||||||||||||||||||||||||||
|
Three Months Ended December 31, 2023 |
|
Three Months Ended December 31, 2022 |
||||||||||||||||||||||||
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||
Revenue |
$ |
57,103 |
|
$ |
86 |
|
|
$ |
— |
|
|
$ |
57,189 |
|
$ |
42,237 |
|
$ |
54 |
|
|
$ |
— |
|
|
$ |
42,291 |
Cost of revenue |
|
17,154 |
|
|
536 |
|
|
|
— |
|
|
|
17,690 |
|
|
12,341 |
|
|
59 |
|
|
|
— |
|
|
|
12,400 |
Gross profit (loss) |
|
39,949 |
|
|
(450 |
) |
|
|
— |
|
|
|
39,499 |
|
|
29,896 |
|
|
(5 |
) |
|
|
— |
|
|
|
29,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
General and administrative |
|
1,914 |
|
|
951 |
|
|
|
4,295 |
|
|
|
7,160 |
|
|
2,027 |
|
|
964 |
|
|
|
4,195 |
|
|
|
7,186 |
Sales and marketing |
|
4,124 |
|
|
1,882 |
|
|
|
761 |
|
|
|
6,767 |
|
|
2,868 |
|
|
927 |
|
|
|
566 |
|
|
|
4,361 |
Research and development |
|
1,130 |
|
|
3,828 |
|
|
|
— |
|
|
|
4,958 |
|
|
992 |
|
|
2,747 |
|
|
|
— |
|
|
|
3,739 |
Total operating expenses |
|
7,168 |
|
|
6,661 |
|
|
|
5,056 |
|
|
|
18,885 |
|
|
5,887 |
|
|
4,638 |
|
|
|
4,761 |
|
|
|
15,286 |
Operating income (loss) |
$ |
32,781 |
|
$ |
(7,111 |
) |
|
$ |
(5,056 |
) |
|
$ |
20,614 |
|
$ |
24,009 |
|
$ |
(4,643 |
) |
|
$ |
(4,761 |
) |
|
$ |
14,605 |
|
Year Ended December 31, 2023 |
|
Year Ended December 31, 2022 |
||||||||||||||||||||||||
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
|
Water |
|
Emerging
|
|
Corporate |
|
Total |
||||||||||||
|
(In thousands) |
||||||||||||||||||||||||||
Revenue |
$ |
127,725 |
|
$ |
624 |
|
|
$ |
— |
|
|
$ |
128,349 |
|
$ |
125,428 |
|
$ |
163 |
|
|
$ |
— |
|
|
$ |
125,591 |
Cost of revenue |
|
40,290 |
|
|
980 |
|
|
|
— |
|
|
|
41,270 |
|
|
38,158 |
|
|
77 |
|
|
|
— |
|
|
|
38,235 |
Gross profit (loss) |
|
87,435 |
|
|
(356 |
) |
|
|
— |
|
|
|
87,079 |
|
|
87,270 |
|
|
86 |
|
|
|
— |
|
|
|
87,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
General and administrative |
|
7,751 |
|
|
3,927 |
|
|
|
17,186 |
|
|
|
28,864 |
|
|
6,936 |
|
|
4,104 |
|
|
|
17,301 |
|
|
|
28,341 |
Sales and marketing |
|
13,691 |
|
|
6,053 |
|
|
|
2,420 |
|
|
|
22,164 |
|
|
11,065 |
|
|
3,047 |
|
|
|
2,165 |
|
|
|
16,277 |
Research and development |
|
4,251 |
|
|
12,750 |
|
|
|
— |
|
|
|
17,001 |
|
|
4,151 |
|
|
13,758 |
|
|
|
— |
|
|
|
17,909 |
Total operating expenses |
|
25,693 |
|
|
22,730 |
|
|
|
19,606 |
|
|
|
68,029 |
|
|
22,152 |
|
|
20,909 |
|
|
|
19,466 |
|
|
|
62,527 |
Operating income (loss) |
$ |
61,742 |
|
$ |
(23,086 |
) |
|
$ |
(19,606 |
) |
|
$ |
19,050 |
|
$ |
65,118 |
|
$ |
(20,823 |
) |
|
$ |
(19,466 |
) |
|
$ |
24,829 |
Share-based Compensation |
|||||||||||
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
(In thousands) |
||||||||||
Stock-based compensation expense charged to: |
|
|
|
|
|
|
|
||||
Cost of revenue |
$ |
164 |
|
$ |
136 |
|
$ |
719 |
|
$ |
506 |
General and administrative |
|
1,033 |
|
|
701 |
|
|
3,661 |
|
|
3,436 |
Sales and marketing |
|
649 |
|
|
360 |
|
|
2,333 |
|
|
1,592 |
Research and development |
|
381 |
|
|
210 |
|
|
1,325 |
|
|
977 |
Total stock-based compensation expense |
$ |
2,227 |
|
$ |
1,407 |
|
$ |
8,038 |
|
$ |
6,511 |
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 |
||||||||||||
|
Q4'2023 |
|
Q4'2022 |
|
|
2023 |
|
|
|
2022 |
|
||||
|
(In millions, except shares, per share and percentages) |
||||||||||||||
Operating margin |
|
36.0 |
% |
|
|
34.5 |
% |
|
|
14.8 |
% |
|
|
19.8 |
% |
Share-based compensation |
|
3.9 |
|
|
|
3.3 |
|
|
|
6.3 |
|
|
|
5.2 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Accelerated depreciation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Litigation charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Adjusted operating margin |
|
39.9 |
% |
|
|
37.9 |
% |
|
|
21.1 |
% |
|
|
26.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
19.8 |
|
|
$ |
13.7 |
|
|
$ |
21.5 |
|
|
$ |
24.0 |
|
Share-based compensation (2) |
|
2.2 |
|
|
|
1.4 |
|
|
|
8.0 |
|
|
|
6.5 |
|
Severance (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Accelerated depreciation (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Litigation charges (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
Share-based compensation discrete tax item |
|
— |
|
|
|
(0.4 |
) |
|
|
(0.7 |
) |
|
|
(1.4 |
) |
Adjusted net income |
$ |
22.0 |
|
|
$ |
14.7 |
|
|
$ |
28.9 |
|
|
$ |
30.5 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share |
$ |
0.34 |
|
|
$ |
0.24 |
|
|
$ |
0.37 |
|
|
$ |
0.42 |
|
Adjustments to net income per share (3) |
|
0.05 |
|
|
|
0.02 |
|
|
|
0.14 |
|
|
|
0.12 |
|
Adjusted net income per share |
$ |
0.39 |
|
|
$ |
0.26 |
|
|
$ |
0.51 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate |
|
|
|
|
|
5.3 |
% |
|
|
7.8 |
% |
||||
Adjustments to effective tax rate (3) |
|
|
|
|
|
0.8 |
|
|
|
2.9 |
|
||||
Adjusted effective tax rate |
|
|
|
|
|
6.1 |
% |
|
|
10.6 |
% |
||||
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
19.8 |
|
|
$ |
13.7 |
|
|
$ |
21.5 |
|
|
$ |
24.0 |
|
Share-based compensation |
|
2.2 |
|
|
|
1.4 |
|
|
|
8.0 |
|
|
|
6.5 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Depreciation and amortization |
|
1.0 |
|
|
|
1.0 |
|
|
|
4.1 |
|
|
|
4.8 |
|
Litigation charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
Other income, net |
|
(1.3 |
) |
|
|
(0.8 |
) |
|
|
(3.7 |
) |
|
|
(1.2 |
) |
Provision for income taxes |
|
2.1 |
|
|
|
1.6 |
|
|
|
1.2 |
|
|
|
2.0 |
|
Adjusted EBITDA |
$ |
23.9 |
|
|
$ |
17.0 |
|
|
$ |
31.2 |
|
|
$ |
36.8 |
|
|
|
|
|
|
|
|
|
||||||||
Free cash flow |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
13.8 |
|
|
$ |
6.4 |
|
|
$ |
26.1 |
|
|
$ |
12.6 |
|
Capital expenditures |
|
(1.4 |
) |
|
|
(1.2 |
) |
|
|
(2.6 |
) |
|
|
(4.2 |
) |
Free cash flow |
$ |
12.4 |
|
|
$ |
5.1 |
|
|
$ |
23.5 |
|
|
$ |
8.4 |
|
| ___________ | ||
(1) |
Amounts may not total due to rounding. | |
(2) |
Amount 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/20240221115867/en/
Investor Relations
ir@energyrecovery.com
+1 (346) 382-6927
Source: Energy Recovery, Inc.
FAQ
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