Water Intelligence (WATR) H1 2024 earnings summary

Executive summary

• Achieved strong double-digit profit and EBITDA growth in 1H 2024, with results in line with market expectations and a robust balance sheet supporting accelerated growth plans.

• Launched the Next 50 growth plan early, focusing on organic growth, technology commercialization, and strategic acquisitions in both US and international markets.

• Refinanced $21 million in debt post-period, enhancing free cash flow and funding capacity for further expansion.

Financial highlights

• Revenue increased 7% year-over-year to $41.5 million; US corporate sales up 12% to $28.3 million; international corporate sales up 5% to $4.1 million.

• Statutory profit before tax rose 11% to $4.7 million; statutory EBITDA up 13% to $7.8 million; adjusted EBITDA up 12% to $8.7 million.

• Basic EPS increased 16% to 19.0 cents; fully diluted EPS up 16% to 18.5 cents; adjusted basic EPS up 14% to 24.0 cents.

• Cash and equivalents at period end were $11.1 million; net debt to EBITDA ratio at 0.62x.

• Network sales (gross system-wide sales) grew 2% to $91 million.

Outlook and guidance

• Confident in capturing more market share as macroeconomic conditions stabilize; expect to accelerate system-wide sales by expanding B2B channels beyond insurance.

• Next 50 growth plan to be formally launched in October, with early momentum from non-US business expansion and new technology offerings.

• Plans to reinforce organic growth with national accounts and technology-driven solutions, and to selectively acquire synergistic businesses.