Consolidated Water Co Ltd (CWCO) 2024 Q3 法說會逐字稿

Good morning. Thank you for joining us today to discuss the results for Consolidated Water's third-quarter of 2024. Hosting the call today is the Chief Executive Officer of Consolidated Water Company, Rick McTaggart; and the company's Chief Financial Officer, David Sasnett.

早安.感謝您今天加入我們討論 Consolidated Water 2024 年第三季的業績。今天主持電話會議的是聯合水務公司執行長 Rick McTaggart；以及公司財務長 David Sasnett。

Following their remarks, we'll open the call to your questions. (Operator Instructions) Before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made by management during the call.

在他們發表講話後，我們將開始電話詢問您的問題。（操作員說明）在我們結束今天的電話會議之前，我將就管理層在電話會議期間發表的前瞻性聲明提供一些重要的警告。

I'd like to remind everyone that today's call is being recorded, and it will be made available for telecom replay per the instructions in yesterday's press release, which is available in the Investor Relations section of the company's website.

我想提醒大家，今天的電話會議正在錄音，並將根據昨天新聞稿中的說明進行電信重播，該新聞稿可在公司網站的投資者關係部分找到。

Now I'd like to turn the call over to Consolidated Water company's CEO, Rick McTaggart. Sir, please go ahead.

現在我想將電話轉給 Consolidated Water 公司的執行長 Rick McTaggart。先生，請繼續。

Thank you, David. Good morning, everybody. Thank you for joining us today to discuss our financial and operating results for our third quarter of 2024.

謝謝你，大衛。大家早安。感謝您今天加入我們，討論我們 2024 年第三季的財務和營運表現。

As you saw in our press release issued yesterday, we reported revenue of $33.4 million and net income from continuing operations of $5 million or $0.31 per diluted share for this past quarter. These results were consistent with our expectations given the completion of two large design build projects earlier this year. We were pleased to see the continuing trend of increasing retail water sales in our exclusive utility service area on Grand Cayman, which was due to business and population growth on the island.

正如您在昨天發布的新聞稿中看到的，我們報告上一季的收入為 3340 萬美元，持續經營淨利潤為 500 萬美元，即稀釋後每股收益 0.31 美元。鑑於今年早些時候完成了兩個大型設計建造項目，這些結果與我們的預期一致。我們很高興看到大開曼島專屬公用事業服務區零售水銷售持續成長的趨勢，這是由於島上商業和人口的成長。

Our Bulk segment had relatively consistent revenue compared to last year. However, we saw an increase in gross margin due to the operations and maintenance contract for the new Red Gate II plant for the Water Authority in Grand Cayman, which became effective May 1 of this year.

與去年相比，我們的散裝業務部門的收入相對穩定。然而，由於大開曼水務局新紅門二號工廠的營運和維護合約於今年 5 月 1 日生效，我們看到毛利率增加。

I'll just note because we guarantee the energy consumption of our plants to our clients in this type of contract, which gives the client certainty of costs, our margins are typically better early in the contract life cycle when the equipment, particularly the RO membranes are new.

我只想指出，因為我們在此類合約中向客戶保證工廠的能源消耗，這使客戶能夠確定成本，所以在合約生命週期的早期，當設備（特別是反滲透膜）投入使用時，我們的利潤通常會更高是新的。

Looking at Services revenues, they declined by about half due to our anticipated reduction in construction revenue related to the conclusion of our Liberty Utilities and Red Gate II construction projects. These projects had a major impact on 2023 revenue, but were completed prior to the start of the third quarter of this year.

就服務收入而言，由於我們預計與 Liberty Utilities 和 Red Gate II 建設項目的結束相關的建築收入減少，服務收入下降了約一半。這些項目對 2023 年收入產生重大影響，但在今年第三季開始之前完成。

The decline in construction revenue was partially offset by a $2.5 million increase and O&M revenue, recurring revenue, this increase included $2.1 million from our REC subsidiary in Colorado, which we acquired in October of last year. REC provides us with a new channel for expansion of our design build and O&M businesses into water stress regions of Colorado.

建築收入的下降被 250 萬美元的成長和 O&M 收入（經常性收入）部分抵消，這一增長包括來自我們去年 10 月收購的科羅拉多州 REC 子公司的 210 萬美元。REC 為我們將設計建造和營運與維護業務擴展到科羅拉多州缺水地區提供了新的管道。

The balance of the increased recurring revenue resulted from incremental O&M contracts with our PERC Water subsidiary. We continue to advance our development activities on the $147 million project to design, construct, operate and maintain a seawater desalination plant for the Board of Water Supply in Honolulu, Hawaii.

經常性收入增加的餘額來自與我們的 PERC Water 子公司增加的 O&M 合約。我們繼續推動耗資 1.47 億美元的項目的開發活動，為夏威夷檀香山供水委員會設計、建造、營運和維護一座海水淡化廠。

Since we announced the project in June of last year, we have been advancing through the piloting design and permitting stage. We plan to begin the construction phase late next year, which represents the largest portion of revenue we expect to generate from this project.

自去年6月宣布該計畫以來，我們一直在推動試點設計和許可階段。我們計劃於明年年底開始建設階段，這是我們預計從該項目中產生的收入的最大部分。

We continue to gather essential operational data from the seawater desalination and post-treatment pilot systems that will inform the final design and permitting of the full-scale project. At present, we are close to completing the first phase of the pilot testing and are nearing 60% completion of the final design for the project.

我們繼續從海水淡化和後處理試點系統收集重要的運作數據，這些數據將為全面專案的最終設計和許可提供資訊。目前，我們已接近完成第一階段的中試，專案最終設計已接近完成60%。

And all of the Hawaii project is comprised of a two-year development phase, followed by a two-year construction phase and after construction and commissioning, we expect to operate the plant under a 20-year O&M agreement, and there are two additional five-year extensions to that O&M agreement that are exercisable at the clients option.

夏威夷計畫全部由兩年開發階段和兩年建設階段組成，建造和調試後，我們預計將根據為期 20 年的 O&M 協議運營該工廠，另外還有兩個 5該O&M 協議可延長一年，可由客戶選擇行使。

So now before getting into recent developments and our outlook for the rest of the year, I'd like to turn the call over to our CFO, David Sasnett, who will take us through the financial details for the quarter. David?

因此，在介紹最近的事態發展和我們對今年剩餘時間的展望之前，我想將電話轉給我們的財務長 David Sasnett，他將向我們介紹本季的財務細節。大衛？

Thanks, Rick. Good morning, everyone. Our revenue for the third-quarter totaled $33.4 million. This was a 33% decrease from the same quarter of last year. And this decrease is almost entirely due to a $20.6 million decrease in construction revenue as PERC's project for Liberty Utilities in Arizona and our Red Gate II construction project, Grand Cayman, were both completed before the start of the third-quarter this year.

謝謝，瑞克。大家早安。我們第三季的營收總計 3,340 萬美元。這比去年同期下降了 33%。這一下降幾乎完全是由於建設收入減少了 2060 萬美元，因為 PERC 位於亞利桑那州的 Liberty Utilities 項目和我們的大開曼島 Red Gate II 建設項目均在今年第三季度開始前完成。

Our Retail revenue increased due to a 4.2% increase in the volume of water sold, and this reflects a 4.8% increase and the number of customer connections in our license area over the last year. Revenue for the third quarter typically is very solid for us. I would just want to point out that people, who follow our company, that fourth quarter revenues typically drop a little bit in the Retail business because of seasonality.

我們的零售收入成長是由於售水量增加了 4.2%，這反映了去年 4.8% 的成長以及我們授權區域的客戶連線數量。第三季的營收對我們來說通常非常穩定。我只想指出，關注我們公司的人們，由於季節性原因，零售業務在第四季度的收入通常會略有下降。

So we expect to do perhaps a little bit better than last year in our fourth quarter Retail revenue. But keep in mind that fourth quarter is one of our weaker quarters Retail-wise. The increase in Bulk segment revenue was due to the commencement of operating and maintenance contracts for the new Red Gate contract for the Water Authority of Cayman and an amendment of our North Sound contract with the Water Authority of Cayman. Both the new Red Gate contract and North Sound contract amendment became effective on May 1 of this year.

因此，我們預計第四季的零售收入可能會比去年好一些。但請記住，第四季是我們零售表現較弱的季度之一。散裝部門收入的增加是由於開曼水務局新 Red Gate 合約的營運和維護合約的開始以及我們與開曼水務局的 North Sound 合約的修訂。新的Red Gate合約和North Sound合約修正案均於今年5月1日生效。

Revenue generated under our operations and maintenance contracts totaled $7.5 million in the third quarter, which represents a 49% increase for the same quarter of 2023. REC contributed $2.1 million to the increase and the remainder related to incremental PERC contracts.

第三季我們的營運和維護合約產生的收入總計 750 萬美元，比 2023 年同季增長 49%。REC 貢獻了 210 萬美元的成長，其餘部分與增量 PERC 合約有關。

Our Manufacturing segment decreased by $362,000 -- excuse me, our Manufacturing segment revenue decreased by $362,000 to $4.4 million in the third quarter. But despite this slight decline in revenue, our manufacturing gross profit grew by 84%, reaching $1.6 million, this due to our focus on our part of higher-margin products.

我們的製造部門減少了 362,000 美元——對不起，第三季我們的製造部門收入減少了 362,000 美元，至 440 萬美元。但儘管收入略有下降，我們的製造毛利卻成長了 84%，達到 160 萬美元，這是由於我們專注於利潤率較高的產品。

Our consolidated gross profit for the quarter was $11.6 million or 34.8% of total revenue as compared to $16.6 million or 33% of total revenue for the third quarter of 2023. Net income from continuing operations attributable to our shareholders for the quarter was $5 million or $0.31 per diluted share. This compares to net income of $8.8 million or $0.55 per diluted share in the third quarter of last year.

我們本季的綜合毛利為 1,160 萬美元，佔總營收的 34.8%，而 2023 年第三季的綜合毛利為 1,660 萬美元，佔總營收的 33%。本季歸屬於我們股東的持續經營淨利為 500 萬美元，或攤薄後每股收益 0.31 美元。相比之下，去年第三季淨利潤為 880 萬美元，即稀釋後每股收益 0.55 美元。

We reported a net loss in discontinued operations of $503,000 for the third quarter as compared to a loss of $233,000 for the third quarter of 2023. We anticipate completing the formal dissolution of our Mexico subsidiaries and thus eliminating these losses from our discontinued operations, our overall operations by the end of Q1 of next year.

我們報告第三季已終止業務的淨虧損為 503,000 美元，而 2023 年第三季的虧損為 233,000 美元。我們預計在明年第一季末完成墨西哥子公司的正式解散，從而消除我們已終止業務和整體業務帶來的損失。

Including discontinued operations, net income attributable to Consolidated Water shareholders for the quarter was $4.5 million or $0.28 per diluted share. And this compares to net income of $8.6 million or $0.54 per diluted share for last year.

包括已終止的業務在內，本季歸屬於 Consolidated Water 股東的淨利潤為 450 萬美元，即稀釋後每股收益 0.28 美元。相比之下，去年淨利潤為 860 萬美元，即稀釋後每股收益 0.54 美元。

Turning to our balance sheet. At the end of the quarter, September 30, 2024, we had $104.9 million in cash and cash equivalents. Our working capital was $133.9 million. Our debt was only approximately $200,000 and our stockholders' equity totaled $209.8 million.

轉向我們的資產負債表。截至 2024 年 9 月 30 日季末，我們擁有 1.049 億美元的現金和現金等價物。我們的營運資金為 1.339 億美元。我們的債務僅約 20 萬美元，而股東權益總計為 2.098 億美元。

In all, we continue to maintain a very healthy level of liquidity and credit capacity and an extremely solid financial condition. Our projected liquidity requirements for the remainder of the year include capital expenditure for existing operations of approximately $3.8 million.

總而言之，我們繼續保持非常健康的流動性和信貸能力水平以及極其穩健的財務狀況。我們預計今年剩餘時間的流動性需求包括約 380 萬美元的現有營運資本支出。

This includes approximately $872,000 to be incurred for our new West Bay plant and approximately $3.1 million for a project in Bahamas, the Cat Island project. We paid approximately $1.8 million in dividends in October and our liquidity requirements obviously, may also include future quarterly dividends, as such dividends are declared by our Board.

其中包括我們新西灣工廠的約 872,000 美元以及巴哈馬卡特島項目的約 310 萬美元。我們在 10 月支付了大約 180 萬美元的股息，我們的流動性要求顯然還可能包括未來的季度股息，因為此類股息是由我們的董事會宣布的。

So this completes our financial summary for the quarter. I'd now like to turn things back over to Rick.

我們本季的財務摘要到此結束。我現在想把事情交還給里克。

Thanks, David. Now for more operational details across our business segments. We've been pleased with the revenue growth in our Retail segment, as David mentioned, which has resulted from increased business activity and additional service connections on our utility system in Grand Cayman.

謝謝，大衛。現在了解我們業務部門的更多營運細節。正如大衛所提到的，我們對零售部門的收入成長感到滿意，這是由於我們在大開曼島的公用​​事業系統上的業務活動增加和額外的服務連接所致。

Fortunately, Grand Cayman did not see any significant or lasting damage from the hurricanes that impacted the island earlier this year. Although the total rainfall during those storms this past quarter was higher than the same quarter last year, the rainfall was concentrated over just a few days and ultimately, it did not adversely impact our water sales on the island.

幸運的是，今年早些時候襲擊大開曼島的颶風並未對大開曼島造成任何重大或持久的損害。儘管上個季度這些風暴期間的總降雨量高於去年同期，但降雨集中在短短幾天內，最終並沒有對我們島上的水銷售產生不利影響。

Bulk revenue and gross profit margin increased because of the start of the new Red Gate II operating and maintenance contract, which commenced in the second quarter of this year. This additional O&M contract revenue offset revenue declines in our Bahamas business that resulted from lower energy costs, which in turn reduced the energy cost pass-through charges to our customer.

由於今年第二季開始的新 Red Gate II 營運和維護合約的開始，大宗收入和毛利率有所增加。這些額外的營運和維護合約收入抵消了我們巴哈馬業務因能源成本下降而導致的收入下降，從而減少了向客戶收取的能源成本轉嫁費用。

Also during the second quarter, we secured a 29-month extension of the North Sound plant operating and maintenance contract and Grand Cayman with only a minor reduction in fees to the client. As David mentioned, despite the small decline in manufacturing revenue this quarter, our gross profit in that segment grew by 84% to $1.6 million, thanks to our relentless pursuit of higher-margin products focused on maximizing production efficiency for that business.

同樣在第二季度，我們將 North Sound 工廠和大開曼島的營運和維護合約延長了 29 個月，而客戶的費用僅略有減少。正如David 所提到的，儘管本季製造收入小幅下降，但我們在該領域的毛利成長了84%，達到160 萬美元，這要歸功於我們對高利潤產品的不懈追求，專注於最大限度地提高該業務的生產效率。

Based on the opportunities we see ahead, we believe that this improving trend in our Manufacturing segment will continue and operating results of this business segment will remain stable and profitable. Services segment, we made solid progress with the steady growth in operations revenue bolstered by our newest subsidiary, REC.

基於我們所看到的未來​​機遇，我們相信製造部門的這種改善趨勢將持續下去，該業務部門的經營業績將保持穩定和盈利。服務業務方面，我們取得了紮實的進展，在我們最新的子公司 REC 的支持下，營業收入穩步成長。

REC has integrated well and is opened, as expected, important new opportunities in Colorado. Similar to our experience with PERC, we see that our greater management and financial capabilities will enable REC to pursue larger projects achieve accelerated growth.

正如預期的那樣，REC 已經很好地整合並在科羅拉多州開闢了重要的新機會。與我們在 PERC 的經驗類似，我們看到我們更強的管理和財務能力將使 REC 能夠進行更大的項目，以實現加速成長。

We're especially optimistic about the synergies between REC and PERC sales teams. REC has become a natural extension of PERC, enabling us to replicate the success PERC has achieved over the past five years in a new market. Colorado recent statutory changes to treated wastewater discharge requirements created several opportunities for us to support municipalities and need of upgrades.

我們對 REC 和 PERC 銷售團隊之間的協同效應尤其樂觀。REC 已成為 PERC 的自然延伸，使我們能夠在新市場複製 PERC 過去五年所取得的成功。科羅拉多州最近對處理後廢水排放要求的法定變更為我們支持市政當局和升級需求創造了多個機會。

This regulatory change positions REC and PERC to capitalize on a number of smaller design build project opportunities in the state. In the Bahamas, we are progressing as anticipated on the new $7 million 15-year agreement with Water and Sewer Corporation to design, build, own, operate and finance two seawater desalination plants on Cat Island in Bahamas.

這項監管變化使 REC 和 PERC 能夠利用該州許多小型設計建造項目的機會。在巴哈馬，我們正在與Water and Sewer Corporation 簽訂價值700 萬美元、為期15 年的新協議，按預期取得進展，該協議旨在設計、建造、擁有、運營和資助巴哈馬卡特島的兩個海水淡化廠。

Construction will -- or it is including installation of two 250,000 gallons storage tanks, along with supply and disposal wells and backup generators. Each facility will be designed to produce 90,000 Imperial gallons of desalinated water daily, and they are expected to provide potable and reliable water supply to more than 1,100 homes on the island. This is our first project with WSC and what they call the Family islands in the Bahamas.

施工將—或者說包括安裝兩個 250,000 加侖的儲罐，以及供應井和處理井以及備用發電機。每個設施的設計能力為每天生產 90,000 英制加侖的淡化水，預計將為島上 1,100 多個家庭提供可靠的飲用水供應。這是我們與 WSC 合作的第一個項目，他們稱之為巴哈馬家庭群島。

So that's pretty much everywhere, except Providence. In that area, the Family Islands have historically been served by our competitors. So we're excited about this opportunity and see it as a key step forward to expanding our Bahamas operations beyond Nassau.

所以除了普羅維登斯之外，幾乎到處都有這種情況。在該地區，家庭群島歷來由我們的競爭對手提供服務。因此，我們對這個機會感到很興奮，並將其視為將我們的巴哈馬業務擴展到拿騷以外的關鍵一步。

Looking forward, we remain excited about the future for many reasons. At the macro level, growing water scarcity continues to build interest in advanced treatment and desalination solutions for impaired water sources. As the water supply challenges increase, there's a rising demand for the specialized capabilities that we provide.

展望未來，出於多種原因，我們對未來仍然感到興奮。在宏觀層面上，日益嚴重的水資源短缺持續引起人們對受損水源的先進處理和海水淡化解決方案的興趣。隨著供水挑戰的增加，對我們提供的專業能力的需求不斷增加。

Specific positive factors include the strong water sales growth in Grand Cayman and long-term recurring revenue from our Caribbean-based Bulk water businesses and our US-based O&M business.

具體的正面因素包括大開曼島水銷售的強勁成長以及來自加勒比海散裝水業務和美國營運與維護業務的長期經常性收入。

Our Manufacturing business continues its positive trend, and we expect our desalination plant project in Hawaii to significantly enhance revenue and earnings over the coming years. Enabled by an exceptionally strong balance sheet, we will continue to invest in new long-term projects, and these include the new desalination plants in the Bahamas on Cat Island as well as new infrastructure for the growing water needs of our utility customers in Grand Cayman. And both of these things will ultimately drive future Bulk and Retail revenue growth.

我們的製造業務繼續保持積極的趨勢，我們預計夏威夷的海水淡化廠項目將在未來幾年顯著提高收入和收益。憑藉異常強勁的資產負債表，我們將繼續投資新的長期項目，其中包括巴哈馬卡特島的新海水淡化廠以及滿足大開曼島公用事業客戶不斷增長的用水需求的新基礎設施。這兩件事最終將推動未來大宗和零售收入的成長。

Our strong balance sheet also enables us to move quickly on any potential opportunistic acquisitions. But we are currently in a period between large construction projects. We believe that our award-winning plant designs or cost-efficient project delivery models and our unmatched industry experience will help us secure new projects we are pursuing.

我們強大的資產負債表也使我們能夠快速採取任何潛在的機會性收購。但我們目前正處於大型建設項目之間的時期。我們相信，我們屢獲殊榮的工廠設計或具有成本效益的專案交付模式以及我們無與倫比的行業經驗將幫助我們獲得我們正在追求的新專案。

The course we charted for the company several years ago, which involved diversifying our product offerings and marked areas beyond seawater desalination in the Caribbean, has continued to prove successful and lays the path for strong growth ahead.

幾年前，我們為公司製定了路線，其中包括使我們的產品多樣化，並在加勒比海海水淡化以外的領域進行標記，事實證明，該路線持續取得成功，並為未來的強勁增長奠定了道路。

As we complete 2024 and prepare for the new year, we anticipate that all of these positive factors will continue to support our long-term growth and its future profitability for their strength in shareholder value. So with that, I'd like to moving the call up for questions.

當我們結束 2024 年並為新的一年做準備時，我們預計所有這些積極因素將繼續支持我們的長期成長及其未來的獲利能力，以增強股東價值。因此，我想將問題電話移至現場。

(Operator instructions) Gerry Sweeney, Roth Capital.

（操作員說明）Gerry Sweeney，Roth Capital。

I had a couple of questions. I'm going to start with the Hawaii desal project. This is a little bit more about details. Obviously, I think you said there's a pilot design, permit and construction phase. Do you have an idea when the construction phase is at least planned to start?

我有幾個問題。我將從夏威夷海水淡化計畫開始。這是關於細節的更多一點。顯然，我認為你說過有一個試點設計、許可和施工階段。您知道施工階段至少計劃何時開始嗎？

And could you remind us what -- how much of the tender is allocated to -- or cost is allocated to the construction base?

您能否提醒我們，有多少招標分配給了建設基地，或者成本分配給了建設基地？

Yeah, So, we expect it to -- I mean, the plan is to start it in the fourth quarter of next year. I think about -- the development phase is about $27 million, and the balance of the $147 million is the construction costs.

是的，所以，我們預計 - 我的意思是，計劃在明年第四季開始。我想——開發階段大約需要2700萬美元，1.47億美元的餘額是建造成本。

Okay. And is it --

好的。是嗎？--

And let me clarify something, Gerry. So we're allowed to draw of $27 million in the design phase, but the amount of revenue that we recognize in the design phase will not be $27 million. It will be based upon the actual cost we incur. These projects typically are funded ahead of time, so that we don't get into a cash flow challenge.

讓我澄清一些事情，格里。所以我們可以在設計階段提取2700萬美元，但我們在設計階段確認的收入不會是2700萬美元。它將根據我們實際產生的費用而定。這些項目通常會提前獲得資金，這樣我們就不會陷入現金流挑戰。

And then after -- when we start construction, the actual construction price will be recalculated because the contract we signed had clauses in it that allow for increases in the price of construction based upon changes in materials and labor costs from the date that we signed a contract to the date the construction starts.

然後，當我們開始施工時，實際的施工價格將被重新計算，因為我們簽署的合約中有條款，允許根據自我們簽署合約之日起材料和人工成本的變化來增加施工價格。施工開始日期。

So I hope that clarifies.

所以我希望能澄清這一點。

And there's inflation adjustments available. Okay.

並且可以進行通貨膨脹調整。好的。

Yeah, that's correct.

是的，這是正確的。

Got it. But roughly speaking, fourth quarter '25, we should start -- the construction phase is the chunkier part of the revenue side, and we should start seeing that hit in --

知道了。但粗略地說，25 年第四季度，我們應該開始——建設階段是收入更重要的部分，我們應該開始看到這一點--

That's correct. That's the majority -- that's about 80% of the revenue. I think, it's somewhere in that range.

這是正確的。這是大部分——大約佔收入的 80%。我想，它就在這個範圍內。

Yeah. And two years construction time, would it be sort of equally allocated?

是的。兩年的建設時間，是否可以平均分配？

Yeah.

是的。

No, it's going to be sort of the curve. I mean -- (multiple speakers) construction project incurred. And moving on, obviously, if we can do it faster, that works for everybody. But the maximum amount of time that we have is about two years to build the plan.

不，這將是某種曲線。我的意思是──（多位發言者）建設工程發生。顯然，如果我們能做得更快，對每個人都有好處。但我們最多有大約兩年的時間來制定該計劃。

Got it. Switching gears to PERC, REC US, what does the project backlog look like? Obviously, a lot of talk about heavy civil or water infrastructure in the United States long-term opportunity there. I'm just curious as to what you're seeing in the project RFP pipeline, et cetera.

知道了。切換到 PERC、REC US，專案積壓情況如何？顯然，很多人都在談論美國重型民用或水利基礎設施的長期機會。我只是好奇您在專案 RFP 管道等中看到的內容。

I mean, without getting into specific, I mean, we are quite busy bidding jobs and pursuing job. I mean there's probably six or seven that come to mind in our current market area there in Arizona and California. We have lost some jobs over the last year that you're probably aware of in the press, but I think the overall opportunity universe there is getting stronger.

我的意思是，無需具體說明，我的意思是，我們非常忙於競標工作和追求工作。我的意思是，在我們目前的亞利桑那州和加州市場區域中，可能會想到六到七個。去年我們失去了一些工作崗位，您可能在媒體上知道了這一點，但我認為整體機會領域正在變得越來越強大。

I mean there's just -- there's no -- our bid teams are quite busy, pretty much all the time putting together proposals. So when one of these meaningful ones hit, I mean, we have gotten a couple of smaller jobs that are in the sub-$10 million range over the last six to eight months. But one of the big ones hits, we'll certainly let everybody know.

我的意思是——沒有——我們的投標團隊非常忙碌，幾乎一直在整理提案。因此，當其中一個有意義的工作出現時，我的意思是，我們在過去六到八個月內獲得了一些價值低於 1000 萬美元的較小工作。但其中一件大事即將發生，我們一定會讓大家知道。

Got it. But the key message here is that market is strong and it has gotten stronger over the past year per se?

知道了。但這裡的關鍵訊息是市場強勁並且在過去一年本身變得更加強勁？

Yeah, I mean, in all honesty, I mean, it's attracting a lot of attention from competitors. So we're adapting to be more competitive and to sell the client and the types of project delivery models and things that we do best that work best for the client as well.

是的，我的意思是，老實說，我的意思是，它吸引了競爭對手的許多關注。因此，我們正在調整以更具競爭力，並向客戶推銷專案交付模型的類型以及我們最擅長、也最適合客戶的事情。

Got it. And then just one last question for me. The Cat Islands, the Family Islands. How big of an opportunity can that be? How many potential projects or maybe just a background?

知道了。最後還有一個問題想問我。貓群島、家庭群島。這能有多大的機會呢？有多少潛在的項目或可能只是一個背景？

Yeah, I mean, they told us informally in the Bahamas that there's probably another three islands that require immediate attention. And they're smaller projects. They're not Nassau-sized islands with 350,000 people or whatever. I mean, it's -- Cat Island is 180,000 Imperial gallons a day total capacity and our Nassau plants produce 14 million gallons a day or something.

是的，我的意思是，他們在巴哈馬非正式地告訴我們，可能還有另外三個島嶼需要立即關注。而且它們都是較小的項目。它們不是擁有 35 萬人口的拿騷大小的島嶼。我的意思是，貓島每天的總產能為 18 萬英制加侖，而我們拿騷工廠每天的產量為 1,400 萬加侖之類的。

So -- but the size and the scale requires that we charge more for the water. And that's just the way it is. So these projects could generate $1 million a year in incremental revenues fairly easily in over a 15-year period, 20-year period, whatever the contract turns on.

所以——但規模和規模要求我們收取更多的水費。事情就是這樣。因此，無論合約如何，這些項目在 15 年、20 年期間，每年都可以相當輕鬆地產生 100 萬美元的增量收入。

Got it. But I mean you have Cat Island additive. I mean, Nassau is close to capacity and demand that there may be some opportunity there. Is that fair as well?

知道了。但我的意思是你有貓島添加劑。我的意思是，拿騷已經接近產能和需求，那裡可能有一些機會。這也公平嗎？

Yeah, we're hoping that at some point, they ask us to increase our capacity there. I mean it is -- last year, we were running in the high 90% online range there, which obviously is quite amazing for this type of equipment.

是的，我們希望在某個時候，他們要求我們增加那裡的產能。我的意思是——去年，我們的線上運行率高達 90%，這對於這類設備來說顯然是相當驚人的。

We'd really like them to expand that plant there to give us a little bit more breathing room and to give them breathing room. We're well above the guaranteed amounts that we're providing from those clients.

我們真的希望他們能夠擴大那裡的工廠，為我們和他們提供更多的喘息空間。我們遠高於我們向這些客戶提供的保證金額。

Got it. So Cat Island, Nassau and then obviously, the Caymans are continuing to grow. So you have a nice little growth trajectory on their core desal business or historical or legacy desal business.

知道了。所以貓島、拿騷，然後顯然，開曼群島正在繼續成長。因此，他們的核心海水淡化業務或歷史或遺留海水淡化業務有一個不錯的小成長軌跡。

Yeah.

是的。

Okay. All right. That's it for me. I appreciate it. Thanks.

好的。好的。對我來說就是這樣。我很感激。謝謝。

(Operator instructions) This concludes our question-and-answer session. I'd now like to turn the call back over to Mr. McTaggart. Sir, please go ahead.

（操作員說明）我們的問答環節到此結束。我現在想把電話轉回給麥克塔格特先生。先生，請繼續。

Yeah. Thank you. I just like to say thank you to everybody for joining today and wish everybody happy holidays. And our next earnings call will be in March of next year when we discuss our full year 2024 results. So thank you, and take care.

是的。謝謝。我只想對大家今天的到來表示感謝，並祝大家節日快樂。我們的下一次財報電話會議將於明年 3 月舉行，屆時我們將討論 2024 年全年業績。所以謝謝你，保重。

Thank you. Before we conclude today's call, I would like to provide the company's Safe Harbor statement that includes cautions regarding forward-looking statements made during today's call.

謝謝。在我們結束今天的電話會議之前，我想提供該公司的安全港聲明，其中包括有關今天電話會議期間做出的前瞻性陳述的警告。

The information that we have provided in this conference call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements regarding the company's future revenues, future plans, objectives, expectations and events, assumptions and estimates.

我們在本次電話會議中提供的資訊包括 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括但不限於有關公司未來收入、未來計劃、目標、期望和事件的陳述，假設和估計。

Forward-looking statements can be identified by the use of words or phrases usually containing the words believe, estimate, project, intend, expect, should, will or similar expressions. Statements that are not historical facts are based on the company's current expectations, beliefs, assumptions, estimates, forecasts and projections for its business and the industry and markets related to its business.

前瞻性陳述可以透過使用通常包含相信、估計、預測、打算、期望、應該、意願或類似表達的單字或短語來識別。非歷史事實的陳述是基於公司目前對其業務以及與其業務相關的行業和市場的預期、信念、假設、估計、預測和預測。

Any forward-looking statement made during this conference call are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Actual outcomes and results may differ materially from what is expressed in such forward-looking statements.

本次電話會議期間所做的任何前瞻性陳述均不保證未來業績，並涉及某些難以預測的風險、不確定性和假設。實際結果和結果可能與此類前瞻性陳述中所表達的內容有重大差異。

Factors that would cause or contribute to such differences include, but are not limited to, tourism and weather conditions in the area we serve, the economic, political and social conditions of each country in which we conduct or plan to conduct business, our relationships with the government entities and other customers we serve, regulatory matters, including resolution of the negotiations for the renewal of our retail license on Grand Cayman, our ability to successfully enter new markets, and various other risks as detailed in the company's periodic report filings with the Securities and Exchange Commission, SEC.

導致或促成此類差異的因素包括但不限於我們服務地區的旅遊和天氣條件、我們開展或計劃開展業務的每個國家的經濟、政治和社會條件、我們與我們服務的政府實體和其他客戶、監管事宜，包括我們在大開曼島零售許可證續約談判的解決、我們成功進入新市場的能力，以及公司定期報告文件中詳細說明的各種其他風險證券交易委員會，SEC。

For other information about risks and uncertainties associated with the company's business, please refer to the management's discussion and analysis of financial conditions or results of operations and Risk Factors section of the company's SEC filings, including, but not limited to, its annual report on the Form 10-K and quarterly reports for Form 10-Q.

有關與公司業務相關的風險和不確定性的其他信息，請參閱管理層對財務狀況或經營業績的討論和分析以及公司向 SEC 備案的風險因素部分，包括但不限於其關於表10-K 和表10-Q 的季度報告。

Any forward-looking statements made during this conference call speaks as of today's date. The company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements made during the conference call to reflect any change in its expectations with regard thereto or any changes in its events, conditions or circumstances, of which any forward-looking statement is based, except as required by law.

本次電話會議期間所做的任何前瞻性聲明均截至今天。該公司明確表示不承擔更新或修改電話會議期間做出的任何前瞻性陳述的任何義務或承諾，以反映其預期的任何變化或其事件、條件或情況的任何變化，其中任何前瞻性陳述是有依據的，法律要求的除外。

I would like to remind everyone that this call will be made available for replay starting later this evening. Please refer to yesterday's earnings release for dial-in replay instructions available via the company's website at www.cwco.com.

我想提醒大家，本次電話會議將於今晚晚些時候開始重播。請參閱昨天的收益報告，以了解可透過公司網站 www.cwco.com 取得的撥入重播說明。

Thank you for attending today's presentation. This concludes the conference call. You may now disconnect.

感謝您參加今天的演講。電話會議到此結束。您現在可以斷開連線。