Consolidated Water Co Ltd (CWCO) 2025 Q1 法說會逐字稿

Good morning. Thank you for joining us today to discuss Consolidated Water Company's first quarter 2025 operating and financial results. Hosting the call today is the Chief Executive Officer of Consolidated Water, Rick McTaggart, and the company's Chief Financial Officer, David Sasnett. Following their remarks, (Operator Instructions)

早安.感謝您今天加入我們討論聯合水務公司 2025 年第一季的營運和財務表現。今天主持電話會議的是 Consolidated Water 執行長 Rick McTaggart 和公司財務長 David Sasnett。在他們發表演說後，（操作員指示）

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 it will be made available for telecom replay. Please see the instructions in yesterday's press release that has been posted to the investor relations section of the company's website.

在我們結束今天的電話會議之前，我將對管理層在電話會議期間做出的前瞻性陳述提出一些重要的警告。我想提醒大家，今天的通話將被錄音，並將提供電話重播。請參閱昨天發佈到公司網站投資者關係部分的新聞稿中的說明。

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

現在我想把電話轉給 Consolidated Water 執行長 Rick McTaggart。先生，請繼續。

Thank you, Mike and good morning, everyone. Our services segment revenue and operating income declined in the first quarter of 2025 compared to the year earlier due to completion of two major design build projects in the second quarter of last year. However, we did see improved performance in all three other business segments, particularly retail and manufacturing.

謝謝你，麥克，大家早安。由於去年第二季完成了兩個主要設計建造項目，我們服務部門的收入和營業收入在 2025 年第一季與去年同期相比有所下降。然而，我們確實看到其他三個業務部門的業績有所改善，尤其是零售和製造業。

Retail water sales in our exclusive utility service area on Grand Cayman reflected much higher sales volumes compared to a year earlier due to population growth and increased business activity within our service area. Manufacturing revenues and operating income increased by about 10% and 44% respectively, compared to a year earlier due to higher production activity and a higher margin product mix.

由於人口成長和我們服務區域內商業活動的增加，大開曼島我們專屬公用事業服務區的零售水銷售額與去年同期相比大幅增加。由於生產活動增加和產品組合利潤率提高，製造收入和營業收入與去年同期相比分別增長了約 10% 和 44%。

Revenue and gross profit generated in our Caribbean-based bulk water segment remained consistent year over year, reflecting the long-term stable income generating nature of these businesses.

我們加勒比地區散裝水業務的收入和毛利比去年同期保持穩定，反映了這些業務的長期穩定創收性質。

Revenue from our services segment declined significantly compared to a year earlier due to completion of the Liberty Utilities and Redgate 2 design build projects in the second quarter of last year. The decline was partially offset by a 9% or $626,000 increase in recurring revenue from our operations and maintenance contracts in the western US.

由於去年第二季 Liberty Utilities 和 Redgate 2 設計與建造專案的完工，我們服務部門的收入與去年同期相比大幅下降。我們在美國西部的營運和維護合約的經常性收入增加了 9% 或 626,000 美元，部分抵消了這一下降。

This growth in O&M revenue in dollar terms was about evenly generated by PERC in California and Arizona and REC in Colorado.

以美元計算的 O&M 收入成長大致由加州和亞利桑那州的 PERC 以及科羅拉多州的 REC 平均貢獻。

On April 28th, the Honolulu Board of Water Supply, our client on our multi-year seawater desalination project in Hawaii, approved our pilot test reports and recommendations and concluded that the desalinated water we produced during the piloting phase is a reasonable match to their existing water supply. And further concluded that the desalinated water from the new plant would not cause any detrimental impact to their distribution pipes or customer assets.

4月28日，我們在夏威夷的多年期海水淡化項目的客戶檀香山供水委員會批准了我們的試點測試報告和建議，並得出結論，我們在試點階段生產的淡化水與他們現有的供水量合理匹配。並進一步得出結論，新工廠生產的淡化水不會對其配送管道或客戶資產造成任何不利影響。

This is a key significant milestone in the project and paves the way to begin construction once all permits have been obtained. This $204 million dollar project to design, construct, operate and maintain a 1.7 million gallon per day. Seawater desalination plant for the Honolulu Board of Water supply commenced in 2023 in June, we expect to begin the construction of this project early next year, once we and the client have obtained the permits that are required and the client issues a notice to proceed with the construction.

這是該專案的一個重要里程碑，為獲得所有許可後開始施工鋪平了道路。該項目耗資 2.04 億美元，設計、建造、營運和維護每天 170 萬加侖的產能。檀香山水務局的海水淡化廠將於 2023 年 6 月開工，我們預計該項目將於明年初開始建設，屆時我們和客戶將獲得所需的許可證，並且客戶將發出開工通知。

On a cautionary note, some of these permits are outside of our control and delays in obtaining them could also delay the construction date. The construction phase is expected to generate the largest portion of revenue from this project. And be a major growth driver for our services segment in 2026 and 2027.

需要注意的是，其中一些許可證是我們無法控制的，延遲獲得這些許可證也可能會延遲施工日期。預計建設階段將產生該項目的最大部分收入。並成為我們2026年和2027年服務部門的主要成長動力。

We expect to submit our 90% design for the project on schedule early next month for the client's engineer to review. The Hawaii project is a major growth driver for our services segment. It involves a two year development phase which concludes next month. Followed by 2 years of construction. Once completed and commissioned, we have been contracted to operate the plant under a 20 year OM agreement plus 5 year plus 2 5 year extensions at the option of the client.

我們預計下個月初按時提交該專案的 90% 設計方案，供客戶工程師審查。夏威夷計畫是我們服務部門的主要成長動力。該計畫涉及為期兩年的開發階段，將於下個月結束。隨後又進行了兩年的建設。一旦完工並投入使用，我們將根據 20 年的 OM 協議以及 5 年和 2 個 5 年的延期（由客戶選擇）來運營該工廠。

It's important to note that particularly in this environment now, economic environment. That 80%, approximately 80% of the construction costs for this project will be adjusted for inflation at the start of construction. This mechanism is expected to protect our gross margin and overall profitability.

值得注意的是，特別是在當前這種環境下，經濟環境。該項目建設成本的 80%（約 80%）將在建設開始時根據通貨膨脹進行調整。預計該機制將保護我們的毛利率和整體獲利能力。

Now, before getting more into recent developments and our outlook for the year, I would like to turn the call over to our CFO, David Sasnett, who will take us through the financial details for the quarter.

現在，在進一步了解最新進展和今年的展望之前，我想先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。

Thank you, Rick. Good morning, everyone. Our revenue was down 15% from the first quarter of 2024 to $33.7 million and this decrease was due to a decrease of 7.3 million in the services statements, specifically the construction revenue. That related to completion of the two projects Rick mentioned previously.

謝謝你，里克。大家早安。我們的收入較 2024 年第一季下降了 15%，至 3,370 萬美元，這一下降是由於服務報表減少了 730 萬美元，特別是建築收入。這與 Rick 之前提到的兩個項目的完成有關。

The service segment revenue decrease was partially offset by revenue increases of $786,000 in our retail segment, $70,000 in our bulk segment, and $509,000 in the manufacturing segment. Our retail revenue was up $786,000 due to a 13% increase in the volume of water sold.

服務部門收入的減少部分被零售部門收入的增加 786,000 美元、散裝部門收入的增加 70,000 美元和製造部門收入的增加 509,000 美元所抵消。由於水銷量增加了 13%，我們的零售收入增加了 786,000 美元。

Our bulk segment revenue increased slightly to $8.4 million due to the revenue generated by the commencement in May 2024 of the operations and maintenance contract for the new Redgate 2 desalination plan on Grand Cayman, which we constructed, and the amendment of our company's North Sound contract with the Water Authority Cayman, which also became effective in May of 2024.

我們的散貨運輸部門收入小幅增長至 840 萬美元，這得益於我們建造的大開曼島新 Redgate 2 海水淡化計劃的運營和維護合同於 2024 年 5 月開始生效，以及我們公司與開曼水務局簽訂的北灣合同的修訂（該修訂也於 2024 年 5 月生效）。

As I mentioned earlier, the decrease in services segment revenue was due to plant construction revenue decreasing from $9.2 million in the first quarter of '24 to $2.2 million in the first quarter of this year. And once again, this is the result of two construction projects that were completed in the second quarter of 2024.

正如我之前提到的，服務部門收入的下降是由於工廠建設收入從 24 年第一季的 920 萬美元減少到今年第一季的 220 萬美元。再次強調，這是 2024 年第二季竣工的兩個建設項目的成果。

A recurring revenue generated under our OM contracts totaled $7.7 million in the first quarter of 2025, an increase of 9% over the previous year. Both PERC and RAC, our Colorado subsidiary, increased their O&M revenue this first quarter from last year.

2025 年第一季度，我們根據 OM 合約產生的經常性收入總計 770 萬美元，比上一年增長 9%。PERC 和我們位於科羅拉多的子公司 RAC 今年第一季的營運和維護收入均比去年同期增加。

Our manufacturing segment revenue increased by $509,000 to $5.8 million for the first quarter of 2025. Gross profit for the first quarter '25 was $12.3 million, about 37% of total revenue, as compared to $13.9 million or around 35% of total revenue in the first quarter of '24.

2025 年第一季度，我們的製造部門收入增加了 509,000 美元，達到 580 萬美元。25 年第一季的毛利為 1,230 萬美元，約佔總收入的 37%，而 24 年第一季的毛利為 1,390 萬美元，約佔總收入的 35%。

This decrease was due, as I mentioned earlier, to a decrease in the service side but gross profit of $2.7 million as a result of decreasing in construction revenue. This decrease was partially offset by an increase in gross profit for our retail bulk and manufacturing segments.

正如我之前提到的，這一下降是由於服務方面的下降，但由於建築收入減少，毛利為 270 萬美元。這一下降被我們的零售批量和製造部門的毛利的成長部分抵消。

Net income from continuing operations attributable to consolidated order shareholders for the first quarter '25 was $4.9 million or $0.31 per diluted share. This compares to net income of $6.9 million or $0.43 per diluted share the first quarter of '24. Including discontinued operations, net income attributable to consolidated order stockholders for the first quarter of 2025 was $4.8 million or $0.30 per diluted share as compared to a net income of $6.5 million or $0.40 per diluted share in the same period last year.

25 年第一季歸屬於合併訂單股東的持續經營淨收入為 490 萬美元，即每股攤薄收益 0.31 美元。相比之下，24 年第一季的淨收入為 690 萬美元，即每股 0.43 美元。包括已終止經營的業務在內，2025 年第一季歸屬於合併訂單股東的淨收入為 480 萬美元或每股稀釋收益 0.30 美元，而去年同期的淨收入為 650 萬美元或每股稀釋收益 0.40 美元。

According to our balance sheet. Cash and cash equivalents grew to $107.9 million as of March 31, 2025. And our working capital increase to $136.2 million and our stockholders equity now totals $213.3 million. Our projected liquidity requirements for 2025 include capital expenditures.

根據我們的資產負債表。截至 2025 年 3 月 31 日，現金及現金等價物成長至 1.079 億美元。我們的營運資本增加至 1.362 億美元，股東權益總額現為 2.133 億美元。我們預期 2025 年的流動性需求包括資本支出。

Excuse me.

打擾一下。

Of approximately, excuse me, our projected liquid liquidity requirements for 2005 include capital expenditures for existing operations of approximately $9.1 million. This includes $800,000 to be incurred in 2025 for new desalination plants in the Bahamas on Cat Island, and $1.2 million for the expansion of Eric's manufacturing facility.

大約，對不起，我們預期 2005 年的流動資金需求包括現有營運的資本支出約 910 萬美元。其中包括 2025 年在巴哈馬群島卡特島新建海水淡化廠所需的 80 萬美元，以及用於擴建 Eric 製造工廠的 120 萬美元。

We paid out approximately $1.8 million in dividends in April.

我們在四月支付了約180萬美元的股息。

Our liquidity requirements may also include future quarterly dividends if such dividends are declared by our board.

如果董事會宣布派發未來季度股息，我們的流動性需求可能還包括此類股息。

Our executive management and board are currently evaluating how to best utilize our large cash balance to increase shareholder value. Such evaluation includes potentially increasing our quarterly dividend.

我們的執行管理層和董事會目前正在評估如何最好地利用我們的大量現金餘額來增加股東價值。這種評估包括可能增加我們的季度股利。

This completes our financial summary for the year and now I'd like to turn the call back over to Rick.

至此，我們完成了今年的財務摘要，現在我想將電話轉回給 Rick。

Thanks David. So, in the first quarter we announced that our wholly owned subsidiary Cayman Water Company received a new concession from the Cayman Islands government that concession granted it exclusive rights, continued exclusive rights to produce and supply potable water within its service area on Grand Cayman.

謝謝大衛。因此，我們在第一季宣布，我們的全資子公司開曼水務公司從開曼群島政府獲得了一項新的特許權，該特許權授予其在大開曼島服務區內生產和供應飲用水的獨家權利和繼續獨家權利。

Due to regulatory changes enacted in 2018, Cayman Water is also required to obtain a new operating license from OfReg, the island's utility regulator. Late last month, we resumed discussions with OfReg for the new license, which we expect will involve a restructuring of the previous operating terms. Until the new license is issued, our existing operating license will remain in effect.

由於 2018 年頒布的監管變化，開曼水務公司還需要從島上的公用事業監管機構 OfReg 獲得新的營運許可證。上個月底，我們與 OfReg 恢復了有關新許可證的討論，我們預計這將涉及對先前的營運條款進行重組。在新許可證頒發之前，我們現有的經營許可證將繼續有效。

Cayman Water operates 3 seawater reverse desalination plants that produce 4 million gallons of potable water per day for our service areas growing population and businesses. We are in the process of expanding our West Bay seawater desalination plant, so it can generate an additional 1 million gallons per day by this summer. And we're also planning to construct additional water storage tanks over the next 2 years, and this is all being driven by the growth we've experienced post COVID on the island.

開曼水務公司經營 3 座海水逆向淡化廠，每天為我們服務區域不斷增長的人口和企業生產 400 萬加侖飲用水。我們正在擴建西灣海水淡化廠，以便到今年夏天每天可以額外生產 100 萬加侖海水。我們還計劃在未來兩年內建造更多的儲水箱，這一切都是由島上疫情後經歷的成長所推動的。

As David mentioned, our manufacturing revenue increased by 10% to $5.8 million in the quarter. This business has stabilized as promised, and we believe that we have significantly mitigated revenue and profit variability in this business segment going forward by broadening our product and client base.

正如 David 所提到的，本季我們的製造收入成長了 10%，達到 580 萬美元。該業務已如承諾的那樣穩定下來，我們相信，透過擴大我們的產品和客戶群，我們已大大減輕該業務部門未來收入和利潤的波動性。

We are currently constructing an additional 17,500 square feet of manufacturing space for Air X and expect to complete construction next month. Additional space will allow us to take on more simultaneous projects, thereby increasing our throughput capacity. We are now pursuing additional projects that would utilize the greater floor space with this ultimately driving further manufacturing growth.

我們目前正在為 Air X 建造額外的 17,500 平方英尺的製造空間，預計下個月完工。額外的空間將使我們能夠同時承擔更多的項目，從而提高我們的生產能力。我們目前正在進行更多項目，以利用更大的建築空間，最終推動製造業的進一步成長。

REC, our Colorado subsidiary, has provided us a new channel to expand our design, build and O&M businesses into the water stressed regions of Colorado. We're currently pursuing several O&M and design build opportunities in Colorado.

我們的科羅拉多州子公司 REC 為我們提供了一個新管道，讓我們能夠將設計、建造和營運與維護業務擴展到科羅拉多州缺水地區。我們目前正在科羅拉多州尋求幾項營運和維護以及設計建造機會。

As I mentioned earlier, our client in Hawaii has agreed that we demonstrated in our pilot test results that we were able to achieve a reasonable match in water quality to their existing natural supplies. This is an important step towards a notice to proceed for construction. We and our client are now working diligently to complete the final permitting for the project.

正如我之前提到的，我們在夏威夷的客戶已經同意，我們在試點測試結果中證明，我們能夠實現水質與他們現有的天然供應的合理匹配。這是取得開工通知的重要一步。我們和我們的客戶目前正在努力完成該專案的最終許可。

As we've communicated previously, we are expecting or we are experiencing an expected decline in this year in design build work compared to 2023 and 2024. However, we anticipate design build revenues to improve in the second half of this year as 3 smaller projects currently under contract or nearing final contract stage are set to begin construction.

正如我們之前所傳達的，與 2023 年和 2024 年相比，我們預計今年的設計建造工作量將會下降。然而，我們預計今年下半年設計建造收入將會提高，因為目前已簽訂合約或接近最終合約階段的 3 個小型項目即將開始建設。

The combined value of these three projects is expected to be approximately $20 million. One of these projects is the construction of a wastewater scalping plant, which will provide high quality recycled water to irrigate a golf course in California. And this is certainly a great fit for perks capabilities. While these projects are smaller in scale than past projects.

這三個項目的總價值預計約為2000萬美元。其中一個項目是建造一座廢水處理廠，該廠將提供高品質的再生水來灌溉加州的一個高爾夫球場。這無疑非常適合福利能力。雖然這些項目的規模比過去的項目小。

They reflect continued demand for our products and services in the western US. We and our local partners are pursuing a sizable wastewater design build project in the Southern Caribbean, and if our bid is successful would mark our first international wastewater treatment plant project.

它們反映了美國西部對我們的產品和服務的持續需求。我們和當地合作夥伴正在南加勒比地區開展一個大規模的廢水設計建設項目，如果我們的投標成功，這將標誌著我們的第一個國際廢水處理廠項目。

Similar to the Hawaii project, this new wastewater opportunity further demonstrates how PERC is being leveraged to grow our business across product lines, desalination and wastewater, as well as into new geographical markets.

與夏威夷專案類似，這項新的廢水處理機會進一步展示瞭如何利用 PERC 來拓展我們的產品線、海水淡化和廢水處理業務以及新的地理市場。

We're also looking further out into 2026 and beyond with the growing pipeline of long-term projects. We see the Arizona market in particular providing strong opportunities for future design build activity, and our team is actively involved in several early stage discussions.

隨著長期專案的不斷增加，我們也將目光放長遠到 2026 年及以後。我們認為亞利桑那州市場尤其為未來的設計建造活動提供了強大的機會，我們的團隊積極參與了幾項早期討論。

We are currently preparing for customized design reports or CDRs for clients. And similar to the Liberty Utilities project in Arizona, we hope that the CDRs ultimately lead to design build contracts for these important wastewater treatment facilities.

我們目前正在為客戶準備客製化的設計報告或CDR。與亞利桑那州的 Liberty Utilities 專案類似，我們希望 CDR 最終能夠為這些重要的廢水處理設施簽訂設計建造合約。

Looking ahead, we remain confident in our ability to deliver steady long-term growth in revenue and profit to our shareholders. Key drivers include strong retail water sales growth in Grand Cayman, the stability of long-term recurring revenue from our Caribbean bulk water operations. Our design build business and particularly the Hawaii project and other smaller projects currently underway. And continued positive momentum in our manufacturing segment.

展望未來，我們仍有信心為股東實現收入和利潤的長期穩定成長。主要驅動因素包括大開曼島零售水銷售額的強勁成長，以及加勒比地區散裝水業務的長期經常性收入的穩定性。我們的設計建造業務，特別是夏威夷項目和其他目前正在進行的小型項目。我們的製造業領域持續保持積極勢頭。

Now with that I'd like to open a call for questions.

現在我想開始提問。

(Operator Instructions) Gerry Sweeney with Roth Capital.

（操作員指示）羅斯資本 (Roth Capital) 的 Gerry Sweeney。

Good morning, Rick and David. Thanks for taking my call.

早上好，里克和大衛。謝謝您接聽我的電話。

Hey Gerry

嘿，格里

how are you doing Gerry?

你好嗎，格里？

Good, I got a couple or a few questions, but going to start with Hawaii, two questions there $204 million is I think the price tag for construction and O1M. How does the construction revenue sort of flow through it sounds like 2 year build. Beginning sort of ramp up and then higher spend and then a quarter or 2 ramp down, is that the way we should look at it and. Will you get any revenue over the next quarter or two as you're still working on?

很好，我有幾個問題，但我先從夏威夷開始，那裡有兩個問題，我認為 2.04 億美元是建設和 O1M 的價格標籤。建築收入如何流轉聽起來像是兩年的建設。一開始是逐漸增加，然後是增加支出，然後一個季度或兩個季度減少，這就是我們應該看待它的方式。由於您仍在努力，您在接下來的一兩個季度內會獲得收入嗎？

So we had to file that that contract back in 2023 so and that has the full draw schedule in it if you want to actually take a look at that I mean it's it'll give you a very precise cash flow from the project.

因此，我們必須在 2023 年提交該合同，其中包含完整的提款時間表，如果您真的想看一下，我的意思是它會為您提供該項目非常精確的現金流。

Yeah, But that doesn't necessarily tied on revenue, Gerry you understand how that works, right? So out of the $204 million dollar contract, $147 million initially was designated as the design and construction revenue. Now $27 million of that is fixed. In other words, the revenue is fixed, it can't be adjusted, but the other $120 million out of the 147 is subject to an inflation adjust.

是的，但這不一定與收入掛鉤，格里，你明白這是怎麼回事，對吧？因此，在價值 2.04 億美元的合約中，最初有 1.47 億美元被指定為設計和施工收入。現在其中的 2700 萬美元已經修復。換句話說，收入是固定的，無法調整，但 147 億美元中的另外 1.2 億美元將受到通貨膨脹的調整。

Yeah.

是的。

So we recognize that $147 million which will be adjusted over the two year design and 2 year construction period and today we haven't recognized, I guess we'll disclose in the next quarter exactly how much revenue, we've recognized, but we haven't we haven't even recognized 10% of the revenue under the construction contract yet because the revenue recognition is dependent upon cost incurred for the project.

因此，我們確認了 1.47 億美元，這將在兩年的設計和兩年的建設期內進行調整，今天我們還沒有確認，我想我們將在下個季度披露我們到底確認了多少收入，但我們還沒有確認建設合約項下 10% 的收入，因為收入確認取決於項目發生的成本。

Yeah.

是的。

And under the under the input method with the cost we've incurred is a relatively small at this point in time. When the equipment testing.

目前，我們在輸入法下產生的成本相對較小。當設備測試時。

Yeah, the pilot plant testing, the upfront cost for the bonds and for the insurance and things like that, and the development work isn't doesn't constitute a huge portion of the construction cost, especially this cost are still to be incurred. You'll see a tremendous ramping up of revenue as soon as the costs start going into the construction.

是的，中試工廠測試、債券和保險等的前期成本以及開發工作並不構成建造成本的很大一部分，尤其是這筆費用仍有待產生。一旦成本開始投入建設，你就會看到收入大幅增加。

And you would, what we're seeing right now, we think the construction period was going to last about 2 years.

根據我們現在看到的情況，我們認為建設期將持續約兩年。

Our best guess now it's going to start in the first quarter of 2026.

我們現在最好的猜測是它將在 2026 年第一季開始。

Got it.

知道了。

Hopefully we can it'll happen sooner, but it's dependent upon the permit.

希望我們能夠盡快實現，但這取決於許可證。

Okay, two questions I suspect you're not going to let me know how much the gross margins on that, construction side of the business are.

好的，有兩個問題，我懷疑你不會讓我知道該業務的建築方面的毛利率是多少。

No, I'm not I can't do that.

不，我不會，我不能那樣做。

I don't think so. I think I try, on the permitting side. Who's responsible for the permitting? Is that your subsidiary or is the one of the local government in Hawaii also part of it or responsible for it?

我不這麼認為。我認為，在允許的方面，我會嘗試。誰負責許可？這是你們的子公司嗎？還是夏威夷當地政府的子公司也是其中的一部分或負責該業務？

Well, it's shared again there's a pretty detailed. Breakdown of that in the contract we filed. I mean some of the permits related to archaeological studies on the site and that sort of thing are with the client, obviously all the building permits and that sort of thing are with us.

嗯，又分享了，比較詳細。我們提交的合約中對此進行了細分。我的意思是，一些與現場考古研究相關的許可證和諸如此類的東西都在客戶手中，顯然所有的建築許可證和諸如此類的東西都在我們手中。

We, I mean, we're jointly working together on everything. I mean we have to provide a lot of information for the client to submit for his permitting, so. I mean there are some contractual responsibilities that are detailed out, but then it's more of a collaborative effort to try get this all wrapped up.

我的意思是，我們在所有事情上都共同努力。我的意思是我們必須向客戶提供大量資訊以供他提交許可，所以。我的意思是，合約中有一些詳細的責任，但這更多的是一種協作努力，試圖把這一切都解決掉。

Got it. Switching gears to retail, obviously, a nice uptick in volumes and revenue there, and you mentioned, higher population and business activity. Two things here you, you're expanding your one facility.

知道了。轉向零售業，顯然，那裡的銷售和收入會大幅上升，而且您提到，那裡的人口和商業活動也會增加。這裡有兩件事，你正在擴大你的一個設施。

The West Bay facilitated by a million gallons, but that expansion that you're seeing, I would suspect that's.

西灣的供水量達一百萬加侖，但您所看到的擴張，我懷疑是這樣的。

I know your Q1 is part of the high season I guess so but you should see sort of a permanent lift in in volumes because of just permanent. Population growth as well as more businesses, etc. Is that a fair way of looking at it?

我知道您的第一季是旺季的一部分，我想是的，但您應該會看到銷售出現永久性的成長，因為這只是永久性的。人口成長以及更多的企業等等。這是一種公平的看法嗎？

Yeah, I mean, I, there's a new hospital in our service area. It was constructed obviously a big water user, the, Kamana Bay, development, which is right smack in the center of our service area, and they can they continue to build office buildings and expand schools. I mean, yeah, I mean, it's.

是的，我的意思是，我們的服務區內有一家新醫院。卡馬納灣開發區顯然是一個用水大戶，它位於我們服務區的中心，他們可以繼續建造辦公大樓和擴大學校。我的意思是，是的，我的意思是，確實如此。

It's a lot of there's a lot of investment going into Grand Canyon right now. We, I mean we're very happy about it, obviously.

目前，有大量的投資進入大峽谷。我們，我的意思是，我們顯然對此感到非常高興。

Yeah, this isn't a seasonal increase. I mean, I think it's firmly rooted and you know population growth in the service area and business growth I mean they're always going to be some seasonal variations but. You know this is pretty solid.

是的，這不是季節性成長。我的意思是，我認為它根深蒂固，你知道服務區的人口成長和業務成長，我的意思是它們總是會有一些季節性的變化。你知道這非常可靠。

So I guess you're saying our base water sales have increased Gerry.

所以我猜你是說我們的基礎水銷售額增加了，格里。

Yes sir.

是的，先生。

Floor is higher than it used to be.

樓層比以前高了。

Yeah, exactly, yeah. How long will it take that, or you're adding a million gallons 25% expansion.

是的，確實如此。這需要多長時間，或者您要增加一百萬加侖 25% 的擴張。

What are you running at utilization today and maybe do you know how long will it take to sort of Absorb that now.

您今天的運行利用率是多少？您知道現在需要多長時間才能吸收這些利用率嗎？

I don't know, do we disclose the sales volumes? We, I mean, we have, we disclose the growth numbers, but I mean, not as a.

我不知道，我們會揭露銷售量嗎？我的意思是，我們已經披露了成長數字，但我的意思是，不是作為。

As a Percentage of production capacity, I mean we're looking ahead for next year with this expansion because we have to design for peak demand so we've always had our peak demands in the first 3 months of the year or it starts mid-December and goes through till April so I mean we're looking forward to make sure that we have sufficient capacity and then obviously sufficient storage capacity to meet the future demand.

作為生產能力的百分比，我的意思是，我們透過這次擴張來展望明年，因為我們必須針對高峰需求進行設計，因此我們的高峰需求總是出現在一年的前三個月，或者從 12 月中旬開始一直持續到 4 月，所以我的意思是，我們希望確保我們有足夠的產能，然後顯然有足夠的存儲容量來滿足未來的需求。

Got it and then. The 3 contracts you referenced the $20 million, how long will it take to execute on this project? They sound like they're a little bit smaller and roughly when would they start potentially start?

明白了然後。您提到的 3 份合約價值 2000 萬美元，執行這個專案需要多長時間？聽起來它們規模有點小，大概什麼時候會開始？

Yeah, I mean, 2 of them are under contract, the third one. We hope we'll be under contract in the next couple of months. You know they They're smaller jobs I think they're probably look at it over maybe a 12 month time frame or something that will be realizing revenues from those projects.

是的，我的意思是，其中兩個已經簽了合同，第三個也簽了。我們希望能夠在接下來的幾個月內簽訂合約。你知道，這些都是規模較小的工作，我認為他們可能會在 12 個月的時間範圍內考慮這些項目，以便從中實現收入。

Yeah, probably the second half of this year and the first part for 6 months of 2026 Jer be a reasonable time frame.

是的，可能今年下半年和 2026 年上半年是合理的時間範圍。

Yeah and it sounds like the overall project pipeline can is. I guess rebounding for lack of a better word it was a little slow but you have these projects plus it sounds like you have a line of sight to some other opportunities across the board.

是的，聽起來整個專案流程都可以。我想，由於缺乏更好的詞彙，反彈有點慢，但你有這些項目，而且聽起來你對一些其他機會有了全面的了解。

Yeah, I mean we did we're not we don't have a giant project that we're we could announce but you know there's definitely a good pipeline of smaller jobs that that we're pursuing or that we have as I mentioned under contract the guys will be kept certainly busy.

是的，我的意思是，我們沒有可以宣布的大型項目，但你知道，我們正在進行一系列較小的工作，或者正如我提到的，根據合同，這些人肯定會很忙。

Got it. Okay.

知道了。好的。

I'll jump back into you. Thanks.

我會跳回你身邊。謝謝。

(Operator Instructions)

（操作員指示）

John Bair with the Ascend Wealth Advisors LLC.

John Bair 的 Ascend Wealth Advisors LLC。

Thank you. good morning, hey couple of questions. You, regarding in your comments, you mentioned that some of the permitting was out of your control, and I just kind of wondering, I'm guessing, probably environmentally related ones you did just, an answering Gerry about archaeological permits and so forth. Can you elaborate a little bit more on that? What, there are 1 or 2 or 5 types of permits that might fall under that that could get hung up.

謝謝。早上好，我有幾個問題。關於您的評論，您提到一些許可超出了您的控制範圍，我只是有點好奇，我猜，可能是您剛才做的與環境相關的許可，回答 Gerry 關於考古許可等的問題。能更詳細地解釋一下嗎？有 1 種、2 種或 5 種類型的許可證可能屬於這種情況，可能會被掛起。

Yeah, I mean again you can see them in the in the filed contract there's like a table and it sets out which permits are our responsibility and which permits are the client's responsibility, I mean things related to the site which was provided by the client are typically their responsibility, the building permits, construction permits.

是的，我的意思是，您可以在已歸檔的合約中看到它們，其中有一張表格，列出了哪些許可證是我們的責任，哪些許可證是客戶的責任，我的意思是與客戶提供的場地相關的事情通常是他們的責任，建築許可證、施工許可證。

You know that sort of thing, we have to get approval from the Department of Health for the water quality studies and that sort of thing, I mean. Those are typically on us. I mean, you should, if you want a lot of detail it's there, it's in the file contract.

你知道這種事情，我們必須獲得衛生部的批准才能進行水質研究和類似的事情，我的意思是。這些通常都是我們自己的。我的意思是，如果你想要更多細節，它就在那裡，在文件合約中。

Yeah, when we say it's beyond our, yeah, when it's beyond our control, I guess we should clarify me that it's the client's responsibility to get those permits and certain are our responsibility, but I mean.

是的，當我們說這超出了我們的控制範圍時，是的，當這超出我們的控制範圍時，我想我們應該澄清一下，獲得這些許可證是客戶的責任，當然也是我們的責任，但我的意思是。

I mean it's more the there's a I'll tell you John there's nothing. That I'm concerned about except for the timing because some of these agencies move very slow I mean I don't think that it you know I don't feel at this time that there's anything that would be detrimental to the project that's out there. It's just a matter of getting these permits. I mean some of them take a really long time, particularly the one that comes to mind is the archaeological permit. I mean that just it's.

我的意思是，更重要的是，我會告訴你約翰，什麼都沒有。我擔心的除了時間之外，因為其中一些機構的行動非常緩慢，我的意思是我不認為你知道我目前不認為有任何事情會對正在進行的項目造成不利影響。這只是獲得這些許可證的問題。我的意思是其中一些需要很長時間，特別是我想到的是考古許可證。我的意思是，就是這樣。

Taken much longer than much longer than we expected and much longer than the client expected. Yeah, these are government agencies. There's only so much you can push them.

所花的時間比我們預期的要長得多，也比客戶預期的要長得多。是的，這些都是政府機構。你能推動他們的努力是有限的。

Before they you know are.

在他們知道之前。

They under the EPA or what area of the government would they be?

他們是隸屬於 EPA 還是政府的哪個部門？

Or state agencies, Hawaii state agencies.

或州政府機構，夏威夷州政府機構。

Alright. And then the other kind of a broad question, and you did somewhat touch on this with your outlook of potential wastewater facility in Barbados and kind of expanding geographically. So I'm wondering if the success with winning the Hawaii contract could potentially open up other opportunities for you in the Asia Pacific region, the Philippines or Japan or somewhere, in that.

好吧。然後是另一個廣泛的問題，您在展望巴貝多潛在的廢水處理設施及其地理擴展時確實提到了這一點。所以我想知道，成功贏得夏威夷合約是否會為您在亞太地區、菲律賓、日本或其他地方帶來其他機會。

In that region, of course, forgetting about the Bali situation a number of years back, but nonetheless, things that perhaps changed some, so wondering how that might play in.

當然，在那個地區，人們已經忘記了幾年前巴厘島的情況，但儘管如此，事情可能還是發生了一些變化，所以想知道這可能會產生什麼影響。

Yeah, I mean, first of all, I didn't mention anything in Barbados. I said we have a there's a we have an international project that we're pursuing on the on the wastewater side, but I didn't.

是的，我的意思是，首先，我沒有提到巴貝多的任何事情。我說過我們有一個在廢水方面正在進行的國際項目，但我沒有。

Yeah okay I then I misheard that then and I apologize for that so okay.

是的，好吧，我聽錯了，我為此道歉，好吧。

From the standpoint of looking farther east, I mean, We're not pursuing anything in that region at this time, you know that there's sufficient opportunities I think closer to home that we want to focus on and, there's actually a lot of opportunities in Florida right now that you know we potentially could be involved in I mean the.

從更遠的東部來看，我的意思是，我們目前還沒有在該地區開展任何活動，您知道，我認為離家較近的地方有足夠的機會，我們想要關注這些機會，而且，佛羅裡達州現在實際上有很多機會，您知道我們有可能參與其中。

The growth of population here in the state is has facilitated, new treatment plants for both water and waste water and our AX manufacturing business is nicely positioned to capitalize on that growth, and we've been, making business relationships and partnerships with the companies here in Florida that, I think we'll be bearing fruit in the next few years as well so.

該州的人口增長促進了水和廢水處理新廠的建設，我們的 AX 製造業務很好地利用了這一增長，我們一直在與佛羅裡達州的公司建立業務關係和夥伴關係，我認為我們在未來幾年也會取得成果。

Okay, well, that kind of Somewhat answers one of my next questions was a general outlook with projects, domestically whatever given recent administration change and policy initiatives and all that kind of thing, probably sick to death of hearing questions about tariffs, but nonetheless, just wondering if that, opportunity, outlook, number of bid, number of projects that are potential bidding opportunities for you. Does that look fairly stable? Is it expanding, just a little more color on that.

好的，嗯，這在某種程度上回答了我的下一個問題是項目的總體前景，無論是國內還是考慮到最近的政府變化和政策舉措以及所有這類事情，可能已經厭倦了聽到有關關稅的問題，但儘管如此，我只是想知道這是否是機會、前景、投標數量、對您來說具有潛在投標機會的項目數量。看起來是否相當穩定？它是否在擴大，只是顏色多一點。

It sounds like you got a lot of stuff going on, yeah.

聽起來你有很多事情要做，是的。

Yeah, there, there's certainly a lot of opportunities. we have obviously very detailed reviews on a weekly basis of projects that we're pursuing and I sit in on those for the Western United States and I really haven't seen it slowing down. I mean the size of the projects has changed but I mean the number of projects that we're pursuing and potentially could get I think is quite encouraging for me.

是的，那裡確實有很多機會。我們每週都會對正在進行的專案進行非常詳細的審查，我親自參與了美國西部的專案審查，我確實沒有看到專案進展放緩。我的意思是專案的規模已經發生了變化，但我們正在進行的和可能獲得的專案數量對我來說是相當令人鼓舞的。

Sounds very good. Thank you very much for taking the call. Good luck, looking forward to the progress.

聽起來很不錯。非常感謝您接聽電話。祝你好運，期待進展。

Okay. Thanks John.

好的。謝謝約翰。

Yes. Take care.

是的。小心。

(Operator Instructions) Alright, at this time this concludes our question and answer session. I'd like to now turn the call back over to Mr. McTaggart, sir, please go ahead.

（操作員指示）好的，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。

Thank you everybody for joining us today. It's always a pleasure to be able to communicate with the shareholders. And I look forward to speaking with you again in August when we announced our Q2 results. Take care.

感謝大家今天的參加。能夠與股東溝通總是一件愉快的事。我期待在八月我們公佈第二季業績時再次與您交談。小心。

Thank you. Before we conclude today's call, I would like to provide the company's safe harbor statements that includes cautious cautions regarding forward-looking statements made during today's call. 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 revenue, future plans, objectives, expectations. And events, assumptions and estimates 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.

謝謝。在我們結束今天的電話會議之前，我想提供公司的安全港聲明，其中包括對今天電話會議中做出的前瞻性陳述的謹慎警告。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》所定義的前瞻性陳述，包括但不限於有關公司未來收入、未來計劃、目標、期望的陳述。前瞻性陳述中的事件、假設和估計可以透過使用通常包含相信、估計、預測、打算、期望、應該、將要或類似表達的詞語或短語來識別。

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. 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 expected in such forward-looking statements. Factors that would cause or contribute to such differences include but are not limited to tourism and weather conditions in the areas 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.

非歷史事實的陳述是基於公司對其業務以及與其業務相關的行業和市場的當前預期、信念、假設、估計、預測和預測。本次電話會議中所做的任何前瞻性陳述均不保證未來的業績，並涉及某些難以預測的風險、不確定性和假設。實際結果可能與此類前瞻性陳述所預期的結果有重大差異。造成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狀況、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、我們與政府實體和我們服務的其他客戶的關係、監管事項（包括解決我們在大開曼島的零售許可證續簽談判）、我們成功進入新市場的能力。以及公司向美國證券交易委員會提交的定期報告中詳述的各種其他風險。

For more 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 factor sections of the company's SEC filings, including but not limited to its annual report on the Form 10K and quarterly reports for Form 10Q.

有關公司業務的風險和不確定性的更多信息，請參閱公司提交給美國證券交易委員會 (SEC) 的文件中管理層對財務狀況或經營成果和風險因素部分的討論和分析，包括但不限於 10K 表年度報告和 10Q 表季度報告。

Any forward-looking statements made during the conference call speak 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 changes 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.

電話會議期間所做的任何前瞻性陳述均截至今日有效。本公司明確表示不承擔任何義務或承諾更新或修改電話會議期間所作的任何前瞻性陳述，以反映其對此預期的任何變化或任何前瞻性陳述所依據的事件、條件或情況的任何變化，除非法律另有規定。

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

我想提醒大家，今晚晚點開始可以重播本次通話。請參閱昨天的收益報告，以了解可透過公司網站 CWCO.com 取得的撥號和重播說明。

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

感謝您參加今天的演講。本次電話會議到此結束。您現在可以斷開連線。