Consolidated Water Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 12, 2025

Key Takeaways

  • Positive Sentiment: Total Q2 revenues rose 3% to $33.6 million and EPS from continuing operations increased 23%, driven by a 7% jump in retail water volume and a 33% gain in manufacturing revenue.
  • Positive Sentiment: Recurring services revenue under OEM contracts grew 17%, and new design-build projects in Colorado and Arizona are expanding the company’s U.S. pipeline.
  • Neutral Sentiment: The Honolulu Board of Water Supply approved the pilot test for the Hawaii desalination project, clearing the way for construction in early 2026, but client-obtained permits remain a potential delay risk.
  • Positive Sentiment: Cash and equivalents climbed to $112.2 million with working capital of $137.4 million, and the board raised the quarterly dividend by 27% to $0.14 per share.
  • Positive Sentiment: A 17,500 sq ft expansion at the Fort Pierce manufacturing facility boosts capacity, enabling more high-margin nuclear, municipal and pipe fabrication projects.
AI Generated. May Contain Errors.
Earnings Conference Call
Consolidated Water Q2 2025
00:00 / 00:00

There are 3 speakers on the call.

Operator

Good morning. Thank you for joining us today to discuss Consolidated Water Company's second quarter twenty twenty five 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 Sasnath. Following their remarks, we'll open the call to your questions. At any time during the call, you may join the q and a queue by pressing star, then one on your keypad.

Operator

Before we conclude today's call, I'll provide some important cautions regarding the forward looking statements made by the management during the call. I would like to remind everyone that today's call is being recorded, and it will be made available for Telekom replay. Please see the instructions in yesterday's press release that have been posted to Investor Relations section of the company's website. Now I would like to turn the call over to Consolidated Water's CEO, Eric McTaggart. Sir, please go ahead.

Speaker 1

Thank you, Steve, and good morning, everyone. Thank you for joining us today to discuss our financial and operating results for our 2025. As mentioned in our press release issued yesterday, our diversified water business model encompassing regulated utility, O and M services and manufacturing performed well this past quarter with total revenues increasing by 3% and fully diluted earnings per share from continuing operations increasing by 23% compared to the same quarter of last year. The retail and manufacturing segments in particular reported quarter over quarter revenue increases of 633%, respectively. Retail water sales in our exclusive utility service area on Grand Cayman were higher than the previous year, primarily due to reduced rainfall during this past quarter.

Speaker 1

Manufacturing revenue and operating income rose due to increased production and higher margin products. Recent tariffs enacted by the United States government have not materially impacted our manufacturing business. Our Caribbean based bulk water segment revenue declined slightly this past quarter due to lower fuel pass through charges. However, bulk profitability rose both in dollar terms and gross profit percentage as a result of improved plant efficiencies and reduced operating costs. Our services segment revenue decreased in the 2025 compared with the previous year, largely due to the completion of the pilot plant testing phase of the Hawaii project, which resulted in a decrease in project expenditures pending commencement of the construction phase of the project.

Speaker 1

This reduction was partially offset by higher revenue from recurring operations and maintenance contracts in both California and Colorado. In April, the Honolulu Board of Water Supply or BWS, our client on our multiyear 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 that desalinated water from the new plant would not cause any detrimental impact to their distribution pipes or customer assets. So this significant milestone in the project paves the way to begin construction once final design approval and the requisite permits have been obtained. In June, we submitted our 90% design for the project to BWS and very shortly afterwards received comments from their engineer and various consultants.

Speaker 1

We are currently addressing these comments and plan to submit our responses shortly in keeping with the project schedule, so that should advance the design process. We presently expect to begin construction of this project early next year once b w BWS issues a notice to proceed with construction. And on a cautionary note, some of the permits required before construction can start must be obtained by our client and are therefore outside of our control, and delays in obtaining any of these permits could also delay the construction start date. The construction phase of the Hawaii project is expected to generate the largest portion of revenue from this project and once commenced will be a major growth driver for our Services segment in 2026 and 2027. 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 Bassett, who will take us through the financial details for the quarter.

Speaker 1

Thank you, Rick. Good morning, everyone. Thank you for joining us today. I'll go through the numbers from the numbers Rick mentioned earlier in more detail here. Our revenue totaled $33,600,000 for this quarter, which is up 3% from the second quarter last year.

Speaker 1

This was due to revenue increases for both our retail and manufacturing segments. Our retail revenue was up 456,000 due to a 7% increase in the volume of water sold, and we attribute that volume increase to lower rainfall amounts on Grand Cayman for the second quarter of this year as compared to last year. Our bulk segment revenue actually decreased slightly to 8,300,000.0, but this was due to a decline in energy cost for CW Bahamas that reduced the energy pass through components of the water rates that we charge. Our services segment decreased revenues decreased by $474,000 due to plant construction revenue that decreased from 4,000,000 in the second quarter of last year to 2,800,000.0 in the second quarter of this year. This decrease in construction revenue was a result of a million dollar increase in the revenue we recognized for the Hawaii project.

Speaker 1

This was due to the completion of the pilot plant testing phase of the project, which resulted in a decrease in project expenditures pending commencement of the construction phase of the project. Recurring services segment revenue generated under our OEM contracts totaled $8,300,000 in the second quarter of this year, which represents an increase of 17% over the previous year. Both PERC and REC, our Colorado subsidiary, increased their O and M revenue in this second quarter as compared to the 2024. Our manufacturing segment revenue increased by $1,300,000 or 33% to $5,200,000 from the second quarter of last year as a result of increased production activity. Gross profit for the 2025 was 12,800,000.0 or 38% of total revenue as compared to 11,600,000.0 or 36% of total revenue in the 2024.

Speaker 1

The increase in gross profit, both in dollars and in terms of gross profit percentage, was due to increases in the retail and manufacturing segment as well as decrease relative to operating costs for our bulk segment. Net income from continuing operations attributable to Consolidated Water stockholders for the 2025 was $5,200,000 or $0.32 per diluted share. This compares to net income of $4,200,000 or $0.26 per diluted share in the 2024. Including our discontinued operations, net income attributable to Consolidated Water stockholders for the 2025 was $5,100,000 which represents a return of $36.32 cents per diluted share as compared to net income of 15,900,000.0 or 99¢ per diluted share in the 2024. This decrease in net income and EPS from 2024 to 2005 was due to our discontinued operations as we recognized the gain on the sale of the land and project documentation for our discontinued project in Mexico that totaled 12,100,000.0 in the second quarter of last year.

Speaker 1

Turning to our balance sheet. Our cash and cash equivalents continue to grow to total approximately 112,200,000.0 as of June 30, and our working capital was 137,400,000.0 as of that date, and our stockholders' equity grew to 216,600,000.0. Our projected liquidity requirements for the balance of this year include capital expenditures for our existing operations of approximately $85,000,000. This includes 1,500,000.0 to be incurred in 2025 for new desalination plants be built for the World Food Corporation of the Bahamas on Cat Island and $700,000 for the expansion of Ericsson's manufacturing facility, which is almost complete. We increased our quarterly cash dividend and declared a dividend of 14¢ per share for the third quarter of this year.

Speaker 1

This third quarter dividend of 14¢ per share represents an increase of 27% from the previous dividend of this year. And we paid out approximately 2,300,000.0 in dividends in July. Our future liquidity requirements may also include quarterly dividends, such dividends declared by the board. And we continue to evaluate how to best utilize our large cash balance and ample liquidity to increase shareholder value. And this completes our financial details for the quarter, and I'll turn the call back over to Rick.

Speaker 1

Thanks, David. So earlier this year, we completed, an expansion of our West Bay seawater desalination plant to meet growing demand for water in our Grand Cayman utility service area. This expansion added an additional 1,000,000 gallons per day of desalinated water production capacity to the already existing 1,000,000 gallons of daily production capacity that was commissioned only two years ago. To keep pace with growing demand over the next two to three years, we plan to construct additional water storage at our West Bay site as well as build new water production and storage on land we are in the process of purchasing located at the southern end of our service area in Grand Cayman to keep pace with demand growth. Enabled by an exceptionally strong balance sheet, we will continue to invest in these new assets and long term projects, including the new desalination plants on Cat Island in The Bahamas, which we expect to complete later this year.

Speaker 1

These investments, which are needed to meet the growing water needs of our customers in The Cayman Islands and The Bahamas, are expected to ultimately support future revenue growth in both the retail and bulk segments. Our manufacturing business has stabilized as promised, and we believe that we have successfully mitigated revenue and profit variability in this business segment going forward by broadening our product and client base. A meaningful part of our manufacturing revenue is generated by water purification and other equipment that we fabricate for the nuclear power industry. We have been ASME NQA1 certified by two large nuclear industry players for many years and have been cleared by a third potential client to go through the requisite audit process needed to obtain a third ASME NQA1 certification. Given the recent strong interest in nuclear power solutions to meet growing demand for 20 fourseven electrical power in The U.

Speaker 1

S, we are hopeful that our unique manufacturing qualification will provide opportunities to further grow our manufacturing business through this important sector. During the quarter, we substantially completed construction of an additional 17,500 square feet of manufacturing space at our Fort Pierce, Florida facility and expect to occupy the new space later this month subject to final inspections and permitting. The additional space will allow us to take on more simultaneous and larger projects, thereby increasing our throughput capacity. REC, our Colorado subsidiary, continues to perform well with quarterly revenue up more than 17%. Earlier this year, we entered the Colorado design build market by winning our first construction contract in LockBuoy, Colorado.

Speaker 1

This $4,500,000 drinking water plant expansion, while relatively small in comparison to some of our recent design build projects, is a great start and helps us to pursue larger design build opportunities in Colorado. In addition to Colorado, the Arizona market continues to present significant opportunities for future design build projects. Our team is currently engaged in multiple preliminary discussions with potential clients and recently submitted four customized design reports or CDRs, as we refer to them, to residential developers and industrial clients near Phoenix. Similar to the Liberty Utilities project in Arizona, we believe that some or all of these CDRs will ultimately lead to design build contracts for these important wastewater treatment facilities in Arizona. We're confident that our award winning design, cost efficient delivery models and extensive industry experience will help us win upcoming projects.

Speaker 1

Our decision to diversify beyond the Caribbean seawater desalination market many years ago has been successful and positions us for continued growth. We now have a diverse portfolio across four business segments, delivering consistent value to shareholders through strategic acquisitions over the last decade. As we finish 2025 and look ahead, we expect these positive factors to sustain steady long term growth, enhance profit and increase shareholder value. Now with that, I'd like to open the call up for questions.

Operator

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time a question has been addressed and you would like to withdraw your question, please press star then 2.

Operator

At this time, we will pause momentarily to assemble our roster. The first question comes from Jerry Sweeney with Roth Capital. Please go ahead.

Speaker 1

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

Operator

Congrats on a nice quarter.

Speaker 1

I don't have too many questions, but other than maybe some higher level understanding of maybe the market opportunities and to segment them into, let's say, The Caribbean and then sort of US. On The US front, PERC and REC, how is that pipeline developing? Obviously, a lot of talk in the West and Southwest about water, water scarcity, and etcetera. And I think the market was hotter than maybe some lead times got extended. But I'm just curious what the pipeline is looking like and what are your thoughts on just the market tenure in general?

Speaker 1

Well, on the wastewater side, know, certainly, we're seeing continued interest in so as I mentioned in these projects generated by development and small industrial projects that we've been pursuing through these customized design reports. So, I mean, these projects could range anywhere from sort of 10 to $30,000,000 in size. Yep. You know, to be design build jobs for for wastewater treatment plants. So the the Phoenix area continues to grow there, and, you know, they continue to need wastewater treatment solutions.

Speaker 1

On the on the California side, I mean, it's been mostly o and m contract renewals and, you know, opportunities there. Not not much happening on the design build side in California at this point. Got it. And Colorado, what's that market look like? Obviously, you you had that small design win, that 4 and a half million 1, but does the win in the state create a little bit more opportunity for you guys?

Speaker 1

Oh, absolutely. Yeah. I mean, it gives us a good base. You know, we we knew the the client at MokBuoy through many years operating their their wastewater plant there. So there's other opportunities.

Speaker 1

There's a lot of small towns and areas North Of Denver that require upgrade expansions to their their wastewater and water treatment facilities just, you know, because of natural growth around that area. So we see a number of similar opportunities to to Loch Buoy. Got it. Switching gears to The Caribbean. Obviously, The Cayman's getting nice consistent growth there, I mean, I think evidenced by the expansion of your your West Bay plants.

Speaker 1

Maybe two questions. Bahamas, they seem to be I think in previous conversations, the way I described it was a little bit water constrained, and at some point, they'll have to do something. So maybe opportunity in The Bahamas and then any other opportunities throughout the the region. Yeah. I mean, I think you covered it.

Speaker 1

We're we're very focused just on the Cayman Islands market and the The Bahamas at this point in The Caribbean. You know, The Bahamas, we're we're building these two plants on Cat Island, which is our first contract outside of of New Providence Nassau for for water supply. We're very excited about that. So we wanna get those wrapped up and see what comes next because there's certainly needs throughout The Bahamas for additional water supply. We hope that they they talk to us about that.

Speaker 1

Got it. One last question. Manufacturing, you highlighted the expansion of the Airex facility in Fort Pierce. Just curious, does this expansion open up? It sounded like maybe

Operator

I'll

Speaker 1

let me take a head of step back. It sounded as though maybe it was space constrained and maybe this limited the number of jobs and the size of jobs you could go after. Does this expansion open up a larger market and maybe a different layer or different opportunity for growth? Yeah. Absolutely, Jerry.

Speaker 1

I mean, the you know, when you're building these big pieces of equipment, you gotta ask them where to put them. Right? So

Operator

Yeah.

Speaker 1

You know, what this is gonna do is free up our shop floor for for higher throughput on the actual fabrication side. And, you know, we'll be able to to put some of these larger pieces of equipment over in the warehouse and do, you know, complex assembly work and that sort of thing on water treatment skid in the warehouse area. We won't be taking up the welder space and, you know, all that sort of stuff in the shop. So we definitely think it's a big plus for the facility, and it'll ultimately allow us to, you know, generate more revenue from that business because of the additional space. It absolutely increased our capacity, Gary, and it's something we needed given the what we take is going to have for the business in the coming years.

Speaker 1

Yeah. Because growth driver in the manufacturing area side is that I mean, nuclear has definitely gotten a lot of attention lately. But what is maybe some of the drivers behind Eric? Well, you know, as I mentioned, we have a very diversified business there now. I mean, the nuclear work obviously plays a big part of it.

Speaker 1

There's a lot of AirX is very well known in Florida, and there's a lot of new municipal work for water treatment plants, membrane treatment plants going on in the Florida area. So, you know, we've been busy bidding some jobs, some some nice sized jobs here. And, you know, then we're we always have the the pipe fabrication business, which, you know, I can run the gamut of, you know, high pressure piping for membrane plants to, you know, just the stainless steel piping, large stainless steel piping for wastewater plants. That continues to be a good base, you know, for our our revenues in the Air X business. So it's really the nuclear, the municipal, and the pipe that is keeping us quite busy right now.

Speaker 1

Got it. Okay. I'll go back in line. Thanks. Yep.

Operator

Thank you. The next question comes from John Bear with Ascend Wealth Advisors. Please go ahead.

Speaker 1

Good morning. Thank you guys for taking the question here. Wanted to circle back on the nuclear and is this business that you're addressing primarily domestic? And do you have any international opportunities with supplying product or material to other other plants? The customers are all domestic.

Speaker 1

Some of the final products are going overseas. But, you know, the the just one product that we actually make is well, two products are going overseas, but all of our customers are domestic customers. So so is there opportunity or do you see opportunity to expand this for international? Because internationally, they're looking at increasing nuclear capability as well. So just kind of curious how that trend is is playing out.

Speaker 1

Yeah. So I mean, just, John, so you understand, we're not selling directly to the clients. I mean, we're qualified by companies that they're nuclear solution companies, so we're doing fabrication work for them. So we're not selling directly to the Into the facilities or the end users. So, I mean, they you know, these clients do work overseas.

Speaker 1

And, you know, if they need us to do some fabrication work for them, you know, we're certainly qualified to do that. But I can't really say that we're pursuing international work because of the arrangements that we have with our our customers. We don't serve the the end users on this in this market. Oh, okay. Okay.

Speaker 1

Fair enough. And then is is a lot of this addressing, like, retrofit or upgrade as opposed to actual new new builds? I'm not aware of any new builds. This is water treatment equipment for existing facilities. Maintenance.

Speaker 1

Okay. And and can any of this apply towards the smaller the SMR market that seems to be gaining some interest? It certainly could. Yeah. Okay.

Speaker 1

Alright. And then I wanted to ask another another area. Are you seeing more interest or bidding opportunities for based on reshoring of manufacturing across geographic U. S, not just necessarily in the West Coast or elsewhere? Is is do you see opportunities there?

Speaker 1

We have not been involved in anything like that yet. I I can't say that that that's been an area that we see opportunity in at the moment. No. Okay. And then another question on future CapEx needs for existing installations, you know, upgrades or replacement?

Speaker 1

Where what do you what do you see in in that regard? Yeah. Let me just jump back one second here about the nonshoring manufacturing work. You know, one of the things I wanna explain to investors is so we don't have, like, a product line that we can, you know, market to engineering companies and and those sorts of groups that design these large plants. I mean, we're more of a custom shop, particularly with with Aerex.

Speaker 1

We are looking at potentially developing some standardized products, which will fit better with the industrial market. You know, you can take your specs and your brochures and things over, you know, talk to one of the big consulting engineers, and they can spec it into a new chip plant or a new, you know, auto plant or whatever they're working on. So that is something that we are looking at. Now your second question about the CapEx. I mean, I I think most of our assets new assets and CapEx expenditures are gonna be in the Cayman utility.

Speaker 1

Just because of growth in that business, we need to build some new water storage tanks and eventually build a new RO plant on the southern end of the system there. You know, outside of that, it would be projects like like Cat Island that are, you know, using capital right now for long term investments. Okay. And one last question. I didn't see anything in the press release, and I haven't had a chance to look into the queue.

Speaker 1

But I know in the past, your friends in The Bahamas tend to be a little bit slow in paying their their bills. What have you seen there? How's how's that been working out? So we've obviously been very focused on getting that resolved. We've had a number of discussions and meetings over the last several months, and we are seeing an increase in in payments coming through now.

Speaker 1

So, you know, there have been on the on The Bahamas side, there's been an undertaking to for some time to bring that account current, and we are seeing some progress now on that. So Didn't show up in the queue, John, but, hopefully, it will report the next quarter's results. Okay. Be able to we've That that's great. Thanks a lot.

Speaker 1

Appreciate appreciate you taking my questions. No problem, John.

Operator

Thank you. The next question comes from Matt with Western Standard. Please go ahead.

Speaker 2

Hey, guys. Thanks for the for allowing me to ask a couple of questions here. My first is the the real standout for me was the gross margin on the

Speaker 1

manufacturing side of the business. Can you

Speaker 2

talk about that a little bit, whether you know, what was really driving that?

Speaker 1

I mean, it's pretty simple. I think we got some some jobs that were higher margin. We, you know, we were able to to price them better. And, you know, we're utilizing our resources there at the facility pretty much at peak right now for that for the size of the facility that we have. So we were very busy.

Speaker 1

You know, there wasn't any downtime during the quarter, and we were able to to get better pricing on some of these these projects that went through the shop. But, Matt, we've also focused it's been a strategic initiative of ours to focus on the higher margin projects to begin with. And I think our people involved in sales and our manufacturing segment are really focused on that and been more aggressive going after some of the higher margin jobs. But despite what you said, facility itself is very efficient. It's operating pretty close to capacity, and, you know, that fixed overhead gets spread out over a much larger amount of revenue and margins go up.

Speaker 1

So it's it's both sales and and productivity. But keep in mind, I mean, when we get this new building online this month, that's gonna change the game. I think that will, you know, significantly increase the capacity of that that facility. Okay.

Speaker 2

Great. Is is there a time period that you're hoping to fill the the incremental capacity?

Speaker 1

We we're bidding on some larger jobs right now. So, I mean, depending on whether we're successful or not, I mean, it'll certainly be put to use as soon as we hear about some of these new jobs. I mean, these are bigger municipal jobs, but they take a little bit more time to go through the process, but they would certainly impact 2026 revenues if if we were successful. Yeah. They would they would use the ball capacity, Matt, more or less.

Speaker 1

So we've got we've got potential out there to to fully utilize everything we're building pretty quickly. Oh, that's great.

Speaker 2

Alright. Secondly is on the o and m rev. There's a pretty nice sequential increase there. Oh, I don't know if you if I missed it in your prepared remarks. But can you talk about if there was one or multiple incremental wins there?

Speaker 2

And any color on the business for the rest of the year?

Speaker 1

I mean, one of the projects that we had that we have, we had negotiated a change in terms of the contract for twenty four seven operation. I think that, you know, favorably impacted the revenues for that project. And then just, you know, incremental cost increases in some of the the other projects. There weren't any big projects or a number of small projects that we put online. I think it's just a matter of, you know, revenue growth in in in a number of projects.

Speaker 1

Okay. A number of existing contracts, I should say, not projects. Yeah. Contracts.

Speaker 2

Yeah. Okay. Two more quick ones. One is Hawaii. I think in the past, you talked about waiting on some permits.

Speaker 2

Are we are we still waiting on the same permits, or what what is remaining before we've got the the green light?

Speaker 1

Well, so there's two big things that two big permitting issues at this point. I'll give you a little bit more detail. So there's the archaeological permit that we need for the site, and we always expected that that was gonna take a long time to get. We had to do studies, you know, to ensure that we weren't gonna damage any historical artifacts or areas on the site or there weren't any, you know, ancient graves or anything like that on the site. So those those studies have been done, and we're just working its way through the the regulator and the approval process.

Speaker 1

So we always knew that was gonna take a while, and that's kind of what we've always talked about being the critical path on the permit. The second thing, I think, that's very important is now that the design is essentially finished, we have to submit that to the the health department there to get final approval for for the water supply. And, you know, that could take some time. It may go quickly. I I I couldn't really target Matt, but, I mean, we we haven't been to the to the point that we could do that until until we finish the design, which is gonna happen, I think, in the next month or two.

Speaker 2

Okay. Alright. Great. Lastly is the good old Bahama receivable. I think it seems to be kind of holding the line, but is there any additional color from the government there?

Speaker 1

Yeah. I mentioned earlier when when John asked the question, although it's not reflected in the queue, we've had some progress since the end of the quarter. We have an understanding with the government that that, you know, that they're gonna make some scheduled payments there, and we're positive about the outlook for reducing that over the next month. Yeah. This is not an issue with them as far as whether or we throw the money back.

Speaker 1

I mean, they're very good. Yeah. They're very good with their position, yeah, they're gonna pass. I don't have a problem with the the invoices or anything. So, I mean, it's

Speaker 2

I wasn't no. That's great. It's been good for a number of years. Sorry. I I'm sorry.

Speaker 2

Missed that comment earlier. So what I'm Sure.

Speaker 1

So I'll squeeze one more quick one in. So it's

Speaker 2

they've got this war chest of cash. You are about to enter a period where your cash generation may be the strongest in your company's history. Right? You've you've also got cash coming

Speaker 1

in the door from Bahamas. So, I

Speaker 2

mean, your your cash generation is gonna be pretty darn strong for the next several years. I know you're you've been looking at some m and a, but,

Speaker 1

you know, it it seems to

Speaker 2

me like you could probably balance, you know, multiple capital allocation moves on a go forward basis. Any thoughts around that?

Speaker 1

Well, mean, I'd say right now, we are actively looking at a couple of interesting M and A targets. And, you know, I can't really say how that's gonna work out, Matt, but, I mean, they'd be great additions to the company. So it's we're not just sort of generally looking. I mean, we do have some specific targets in mind, and we've had some discussions. Beyond that, I mean, there is an appetite or beginning to be an appetite in The US for these 3P type projects to address some of the water shortages in the Southwest, Texas, and we are exploring those types of opportunities as well with, you know, with that cash in the bank that I mean, in my view, that gives us a leg up on some other competitors that, you know, that may not be in that position.

Speaker 1

Because these are longer term capital investments in public private partnership type projects. So we are well aware that we need to put that to work. And, you know, every day, I'm evaluating ways to do that and, you know, looking at potential m and a type deals. So, you know, we've we raised the dividend last quarter, which hopefully everybody appreciates. And if we continue to to generate, you know, high levels of cash from operations, then we'll we're always reevaluating, you know, what we can do to that to return that to the shareholders.

Speaker 2

Alright. Well, congrats. I look forward to the next couple of years. Thank you.

Speaker 1

You're welcome. Thank you.

Operator

Thank you. Alright. At this time, this concludes our question and answer session. I would like to turn the call back over to mister McTaggart. Sir, please go ahead.

Speaker 1

Thanks, Steve. Just thank everybody again for joining us today to discuss our results, and we certainly look forward to speaking with you again to go over our third quarter results in November. Thanks, everybody.

Operator

Thank you. Before we conclude today's call, I would like to provide company's safe harbor statement that includes caution regarding the forward looking statements made during this during today's call. The information that we have provided in this conference call concludes forward looking statements within the meaning of the Private Security 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. Forward looking statements can be identified whether use of words or phrase, usually containing the words belief, estimate, project, intent, expect, should, will, or similar expressions. Statements that are not historical facts are based on the company's current expectation, beliefs, assumption, estimates, forecast, and projections for its business and the industries and market related to its business.

Operator

Any forward looking statements made during this conference call are not guarantees of future performance and involve certain risks, uncertainties, or assumptions, which are difficult to predict. Actual outcomes and results may differ materially from what is expressed in such forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, tourism and weather condition in the areas we serve, the economic, political, and social condition of each country in which we conduct or plan to conduct business, our relationship with the government entities and other customer we serve, regulatory matters, including resolution of negotiation for the renewal of our retail license of Grand Cayman, our ability to successfully enter new markets and various other risks, as detailed in the company's periodic report filings with Securities and Exchange Commission, SEC. For more information about risks and uncertainties associated company's business, please refer to the management discussion and analysis of financial condition or result of operation 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 report for Form 10 Q. Any forward looking statements made during the conference call speaks as of today's date.

Operator

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 expectation with the regard thereto or any changes in its events. Condition or circumstances of which any forward looking statement is based, except are required by the law. I would like to remind everyone this call is available for replay starting later this evening. Please refer to yesterday's earnings release for dial in replay instruction as labeled via the company website at cwc0.com. Thank you for attending today's presentation.

Operator

This concludes the conference call. You may now disconnect. Thank you.

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