NASDAQ$ERII

Energy Recovery Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter 2022 financial results and commissioning of the first PX G1300™ for CO2 refrigeration.

Energy Recovery reported revenue of $20.3 million. The company reaffirmed full year revenue guidance of $130 million, representing a 25% year-on-year growth.

  • Revenue of $20.3 million, as guided in the first quarter.
  • Loss from operations of $2.9 million and adjusted loss from operations of $41 thousand.
  • Adjusted EBITDA of $1.0 million.
  • Share repurchases of $18.6 million, or 1.0 million shares, pursuant to the Company’s March 2021 share buyback program.

Headline financials

Total Revenue

$20.3M

Previous: $20.6M-1.5%
EPS (adj)

-$0.04

Previous: $0.02-300.0%
Gross Margin

65.9%

No prior period
Operating Margin

-14.3%

No prior period
Adjusted EBITDA

$1M

No prior period
Effective Tax Rate

15.7%

No prior period
Capital Expenditures

-$2.44M

Previous: -$2.45M+0.5%
Free Cash Flow

-$4.8M

Previous: -$1.38M-247.5%
Net Income

-$2.36M

Previous: $1.07M-320.7%
Operating Income

-$2.9M

Previous: $287K-1111.8%
Gross Profit

$13.4M

Previous: $51K+26119.6%
Cash & Equivalents

$43.3M

Previous: $103M-58.1%
Total Assets

$191M

Previous: $209M-8.5%
Stock-Based Comp

$1.72M

Previous: $1.43M+20.7%

Revenue & EPS history

Energy Recovery · Revenue · Quarterly

$20.3M

Q2 2022-1.5%vs Q2 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Energy Recovery · $33.6M total across 3 segments · Q4 2021

  • Megaproject
    $25.1M+28.1%
  • OEM
    $5.7M+39.0%
  • Aftermarket
    $2.8M+3.7%

Forward guidance

The company expects significant increases in sales in the second half of fiscal 2022 to achieve their target revenue of $130 million for the year.

Tailwinds

  • Desalination and industrial wastewater businesses remain on track for the year.
  • Seeing a long-awaited resurgence in OEM desalination sales.
  • Expect significant increases in sales in the second half of fiscal 2022 to achieve target revenue of $130 million for the year.
  • Successfully commissioned PX G1300 with partner in a new supermarket in southern Europe in late June and are very encouraged by its strong initial performance.
  • Entered into a second joint-development agreement with a U.S. refrigeration rack manufacturer in early July and are continuing discussions with several others.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-1.2%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+0.1%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+34.9%

Q4 2013

Best reaction

-35.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%-23.1%-29.3%
Q4 2025-35.4%-36.6%-38.8%
Q3 2025-16.0%-18.6%-14.7%
Q1 2025-18.5%-18.5%-16.0%
Q4 2024+2.5%+3.7%+8.7%
Q3 2024+1.6%+5.3%-11.5%
Q2 2024+21.6%+10.8%+12.2%
Q1 2024-12.5%-9.9%-9.4%
Q4 2023-3.6%-2.4%-2.4%
Q3 2023+16.5%+19.1%+24.2%
Q2 2023-15.0%-9.5%-17.0%
Q1 2023+4.7%+6.0%+13.8%
Q4 2022+3.4%+2.8%+2.7%
Q3 2022-30.1%-28.5%-11.5%
Q2 2022+2.8%+2.3%+3.1%
Q1 2022-2.7%-6.1%+14.0%
Q4 2021+4.5%+1.4%+7.2%
Q3 2021+5.5%+7.8%-0.6%
Q2 2021-2.1%-3.0%+17.6%
Q1 2021-0.8%-15.4%-3.5%
Q4 2020+6.8%+0.2%+3.2%
Q3 2020+9.9%+11.0%+23.4%
Q2 2020-4.3%-3.2%+6.7%
Q1 2020-6.9%-6.1%-8.0%
Q4 2019+6.3%-8.9%-29.8%
Q3 2019+2.1%+0.2%-7.0%
Q2 2019+1.6%-9.7%-11.9%
Q1 2019+10.7%+6.0%-2.1%
Q4 2018+11.6%+3.8%+16.3%
Q3 2018+22.4%+21.9%+8.9%
Q2 2018+13.8%+20.8%+20.2%
Q1 2018+2.6%+9.7%+7.0%
Q4 2017+13.3%+26.3%+19.3%
Q3 2017+12.3%+27.9%+42.4%
Q2 2017-10.7%-12.3%-14.0%
Q1 2017-10.3%-9.2%-11.9%
Q4 2016-7.3%-10.4%-7.0%
Q3 2016-24.8%-16.8%-14.5%
Q2 2016+12.5%+22.1%+15.7%
Q1 2016-6.3%
Q4 2015-5.7%
Q3 2015+15.1%
Q2 2015+1.9%
Q1 2015+0.0%
Q4 2014-14.7%
Q3 2014-7.5%
Q2 2014+0.5%
Q1 2014-8.7%
Q4 2013+34.9%
Q3 2013-19.1%
Q2 2013+4.0%
Q1 2013-3.4%
Q4 2012+2.0%
Q3 2012-1.7%
Q2 2012+0.0%
Q1 2011+1.4%
Q1 2012-3.0%
Q4 2009-7.6%
Q4 2011-7.6%
Q3 2011-11.0%
Q2 2011-10.1%
Q4 2010-10.1%
Q3 2010+0.8%
Q2 2010+0.7%
Q1 2010-14.5%

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