(Exact Name of Registrant as Specified in its Charter) |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Description | |||||||
Energy Recovery, Inc. | |||||||||||
By: | /s/ William Yeung | ||||||||||
William Yeung | |||||||||||
Chief Legal Officer |
GAAP | Non-GAAP(1) | |||||||||||||||||||||||||||||||||||||
Q1 2022 | Q1 2021 | vs. Q1 2021 | Q1 2022 | Q1 2021 | vs. Q1 2021 | |||||||||||||||||||||||||||||||||
(In millions except for percentages, basis points and per share amounts) | ||||||||||||||||||||||||||||||||||||||
Revenue | $32.5 | $28.9 | up 12% | $32.5 | $28.9 | up 12% | ||||||||||||||||||||||||||||||||
Gross margin | 70.8 | % | 69.0 | % | up 185 bps | 71.3 | % | 69.4 | % | up 183 bps | ||||||||||||||||||||||||||||
Operating margin | 25.3 | % | 21.2 | % | up 403 bps | 31.0 | % | 27.8 | % | up 312 bps | ||||||||||||||||||||||||||||
Net income | $7.9 | $6.9 | up 15% | $9.1 | $7.2 | up 28% | ||||||||||||||||||||||||||||||||
Net income per share | $0.14 | $0.12 | up 17% | $0.16 | $0.13 | up 23% | ||||||||||||||||||||||||||||||||
Effective tax rate | 5.3 | % | (10.3 | %) | up 1560 bps | 10.2 | % | 12.1 | % | down 193 bps | ||||||||||||||||||||||||||||
Adjusted EBITDA | $11.1 | $9.1 | up 22% | |||||||||||||||||||||||||||||||||||
Free cash flow | ($3.6) | ($0.6) | up 530% | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(In thousands) | |||||||||||
ASSETS | |||||||||||
Cash, cash equivalents and investments | $ | 96,556 | $ | 107,988 | |||||||
Accounts receivable and contract assets | 27,466 | 21,108 | |||||||||
Inventories, net | 23,482 | 20,383 | |||||||||
Prepaid expenses and other assets | 5,802 | 4,582 | |||||||||
Property, equipment and operating leases | 34,211 | 35,014 | |||||||||
Goodwill and other intangible assets | 12,824 | 12,827 | |||||||||
Deferred tax assets and other assets | 11,435 | 11,788 | |||||||||
TOTAL ASSETS | $ | 211,776 | $ | 213,690 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities | |||||||||||
Accounts payable and accrued expenses | $ | 12,453 | $ | 14,903 | |||||||
Contract liabilities | 2,124 | 3,406 | |||||||||
Lease liabilities | 16,074 | 16,443 | |||||||||
Other liabilities, non-current | 159 | 159 | |||||||||
Total liabilities | 30,810 | 34,911 | |||||||||
Stockholders’ equity | |||||||||||
Common stock and additional paid-in capital | 198,275 | 195,657 | |||||||||
Accumulated other comprehensive loss | (418) | (149) | |||||||||
Treasury stock | (61,888) | (53,832) | |||||||||
Retained earnings | 44,997 | 37,103 | |||||||||
Total stockholders’ equity | 180,966 | 178,779 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 211,776 | $ | 213,690 | |||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands, except per share data) | |||||||||||
Revenue | $ | 32,546 | $ | 28,940 | |||||||
Cost of revenue | 9,498 | 8,981 | |||||||||
Gross profit | 23,048 | 19,959 | |||||||||
Operating expenses | |||||||||||
General and administrative | 6,551 | 6,610 | |||||||||
Sales and marketing | 3,364 | 2,703 | |||||||||
Research and development | 4,911 | 4,502 | |||||||||
Total operating expenses | 14,826 | 13,815 | |||||||||
Income from operations | 8,222 | 6,144 | |||||||||
Other income, net | 117 | 82 | |||||||||
Income before income taxes | 8,339 | 6,226 | |||||||||
Provision for (benefit from) income taxes | 445 | (640) | |||||||||
Net income | $ | 7,894 | $ | 6,866 | |||||||
Net income per share | |||||||||||
Basic | $ | 0.14 | $ | 0.12 | |||||||
Diluted | $ | 0.14 | $ | 0.12 | |||||||
Number of shares used in per share calculations | |||||||||||
Basic | 56,783 | 56,877 | |||||||||
Diluted | 58,181 | 58,597 | |||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 7,894 | $ | 6,866 | |||||||
Non-cash adjustments | 3,964 | 2,650 | |||||||||
Net cash used in operating assets and liabilities | (13,460) | (9,462) | |||||||||
Net cash (used in) provided by operating activities | (1,602) | 54 | |||||||||
Cash flows from investing activities: | |||||||||||
Net investment in marketable securities | (18,956) | 5,710 | |||||||||
Capital expenditures | (1,976) | (622) | |||||||||
Net cash (used in) provided by investing activities | (20,932) | 5,088 | |||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from issuance of common stock | 763 | 6,059 | |||||||||
Repurchase of common stock | (8,056) | — | |||||||||
Net cash (used in) provided by financing activities | (7,293) | 6,059 | |||||||||
Effect of exchange rate differences | (11) | (25) | |||||||||
Net change in cash, cash equivalents and restricted cash | (29,838) | 11,176 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 44,623 | $ | 105,534 | |||||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | vs. 2021 | |||||||||||||||
(In thousands, except percentages) | |||||||||||||||||
Megaproject | $ | 23,840 | $ | 23,757 | no change | ||||||||||||
Original equipment manufacturer | 4,671 | 2,791 | up 67% | ||||||||||||||
Aftermarket | 4,035 | 2,392 | up 69% | ||||||||||||||
Total Revenues | $ | 32,546 | $ | 28,940 | up 12% | ||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Water | Emerging Technologies | Corporate | Total | Water | Emerging Technologies | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 32,516 | $ | 30 | $ | — | $ | 32,546 | $ | 28,940 | $ | — | $ | — | $ | 28,940 | |||||||||||||||||||||||||||||||
Cost of revenue | 9,480 | 18 | — | 9,498 | 8,981 | — | — | 8,981 | |||||||||||||||||||||||||||||||||||||||
Gross profit | 23,036 | 12 | — | 23,048 | 19,959 | — | — | 19,959 | |||||||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 1,464 | 908 | 4,179 | 6,551 | 1,561 | 1,166 | 3,883 | 6,610 | |||||||||||||||||||||||||||||||||||||||
Sales and marketing | 2,301 | 527 | 536 | 3,364 | 2,164 | 179 | 360 | 2,703 | |||||||||||||||||||||||||||||||||||||||
Research and development | 800 | 4,111 | — | 4,911 | 501 | 4,001 | — | 4,502 | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | 4,565 | 5,546 | 4,715 | 14,826 | 4,226 | 5,346 | 4,243 | 13,815 | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 18,471 | $ | (5,534) | $ | (4,715) | $ | 8,222 | $ | 15,733 | $ | (5,346) | $ | (4,243) | $ | 6,144 | |||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Stock-based compensation expense charged to: | |||||||||||
Cost of revenue | $ | 146 | $ | 138 | |||||||
General and administrative | 968 | 896 | |||||||||
Sales and marketing | 433 | 444 | |||||||||
Research and development | 335 | 436 | |||||||||
Total stock-based compensation expense | $ | 1,882 | $ | 1,914 | |||||||
Q1'2022 | Q1'2021 | ||||||||||
(In millions, except per share and percentages) | |||||||||||
Gross margin | 70.8% | 69.0% | |||||||||
Share-based compensation as a percent of revenue | 0.5% | 0.5% | |||||||||
Adjusted gross margin | 71.3% | 69.4% | |||||||||
Income from operations | $ | 8.2 | $ | 6.1 | |||||||
Share-based compensation | 1.9 | 1.9 | |||||||||
Adjusted income from operations | $ | 10.1 | $ | 8.1 | |||||||
Operating margin | 25.3 | % | 21.2 | % | |||||||
Share-based compensation as a percent of revenue | 5.7 | % | 6.6 | % | |||||||
Adjusted operating margin | 31.0 | % | 27.8 | % | |||||||
Net income | $ | 7.9 | $ | 6.9 | |||||||
Share-based compensation | 1.9 | 1.9 | |||||||||
Share-based compensation discrete tax item | (0.6) | (1.6) | |||||||||
Adjusted net income | $ | 9.1 | $ | 7.2 | |||||||
Net income per share | $ | 0.14 | $ | 0.12 | |||||||
Adjustments to net income per share (2) | 0.02 | 0.01 | |||||||||
Adjusted net income per share | $ | 0.16 | $ | 0.13 | |||||||
Diluted shares used in calculating net income per diluted share | 56,783 | 56,877 | |||||||||
Effective tax rate | 5.3% | (10.3%) | |||||||||
Adjustments to effective tax rate (3) | 4.9% | 22.4% | |||||||||
Adjusted effective tax rate | 10.2% | 12.1% | |||||||||
Income from operations | $ | 8.2 | $ | 6.1 | |||||||
Share-based compensation | 1.9 | 1.9 | |||||||||
Depreciation and amortization | 1.0 | 1.0 | |||||||||
Adjusted EBITDA | $ | 11.1 | $ | 9.1 | |||||||
Net cash (used in) provided by operating activities | $ | (1.6) | $ | 0.1 | |||||||
Capital expenditures | (2.0) | (0.6) | |||||||||
Free cash flow (non-GAAP) | $ | (3.6) | $ | (0.6) |
: /XF:_1+_@B9_P<%_$;_@EY\0-+\->)M0UCQM\#
M;N41:AX>FF\Z;0T8\W.G%S^Z922Q@!$4N6R%&_$#>%?&U]XCU9K^Z73U8"'R6<;_ "WF
MMG1BS/G[+"5*J56@#<_8#_X.9O!'A_\ 9#\&:3\>+[4O^%NZ#!/I'B9X[?!G
MN+6YFMQ*^ !YDD<4;O@ ;V; P**_!/XZ?LP>-?VF?C[\0_'W@OP[-?>%?%?
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MYX7!^PQ>(T]O>,?-0M=6\G*]_P#"NR/S#Q.K5_:4:?\ R[LWY.7_ %MZLDH
MHHK^F#\I..^./Q1C^%/@6>^7:U]/^YLXS_%(>Y'HHY/T [U\8WM[-J5Y-<7$
MCS3SN9))'.6=B
: /XF:_1+_@B9_P<%_$;_@EY\0-+\->)M0UCQM\#
M;N41:AX>FF\Z;0T8\W.G%S^Z922Q@!$4N6R%&_$#>%?&U]XCU9K^Z73U8"'R6<;_ "WF
MMG1BS/G[+"5*J56@#<_8#_X.9O!'A_\ 9#\&:3\>+[4O^%NZ#!/I'B9X[?!G
MN+6YFMQ*^ !YDD<4;O@ ;V; P**_!/XZ?LP>-?VF?C[\0_'W@OP[-?>%?%?
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MYX7!^PQ>(T]O>,?-0M=6\G*]_P#"NR/S#Q.K5_:4:?\ R[LWY.7_ %MZLDH
MHHK^F#\I..^./Q1C^%/@6>^7:U]/^YLXS_%(>Y'HHY/T [U\8WM[-J5Y-<7$
MCS3SN9))'.6=B
Cover Page |
May 04, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 04, 2022 |
Entity Registrant Name | Energy Recovery, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-34112 |
Entity Tax Identification Number | 01-0616867 |
Entity Address, Address Line One | 1717 Doolittle Dr. |
Entity Address, City or Town | San Leandro |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94577 |
City Area Code | 510 |
Local Phone Number | 483-7370 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 par value per share |
Trading Symbol | ERII |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001421517 |
Amendment Flag | false |
%^@2O&+(=/EB>N$_NG_A.
M\SQ-LPRKZ'8;9;#%ZI9E\!>/AG$##RP/9'I;K?%NXQ/R^AQ@/7UM0K"=XI.(
M[12O-2#QNH%'GL>[C>4!#ZP+V.Q _G@>F*FX3YI"5S%NV G&D3S'$)C%^(QF
M&5*=##[Q_F"G)$WS/(X %F>0IA@"IQ%', ; 4/2='@//GL?)=-[*CG_5U/\
M!%!+ P04 " "5@:14EXJ[', 3 @ "P %]R96QS+RYR96QSG9*Y
M;L,P#$!_Q=">, ?0(8@S9?$6!/D!5J(/V!(%BD6=OZ_:I7&0"QEY/3P2W!YI
M0.TXI+:+J1C]$%)I6M6X 4BV)8]ISI%"KM0L'C6'TD!$VV-#L%HL/D N&6:W
MO606IW.D5XA
E8
M99J&B4D,;&NRBS53 295X&= BT[=,L@:_@;C$W"B6H6L=4B\3NNQI$2)*!E?GU^72N,NX W(1+Y<:-!%?=4;'),^W8,+G?T4 P
MC2;70VJ?R+'R3]:]8!MSW2(IYE3(2/QMULP&'E(1=&Z);8(-KS$F+9]FMA!6
M%76X^2A"?I;12K&T4TO#-!UZ8/]4BTF^*61#8I$"G*>MLP;A#:@CR[2?Z(@NMFQ +,'(M%@OBAS0Q\Z%^W$
MTJ4GTF%Q^='%='F?@7HKB94FMI3K#%:>P,&R>9W!^1'Z'0"2?706>$+[H/KI
M0PFH//$:PGGD)4!CD9*B%%*>^N3O9 ,='K60HDI%J+A=Z^XLGMM3KK^:
MQ)Z&8"8!U4&O#FI<#/JWN*Z(Z^PBO91"UQ203P-B&
[$Z%!DE"PG$P$ M59
MW[.]) ,!FE 6EBKI0ZW#212)U<_\9E1Q='VQ75B0/]TKO#CN#[ @"N$038!1
MOOYDPN*:,G$&.^+)?#T
A0$9_=P8B7.DK!3METS4_UR6[J1_LDN=F5O:'7<.JTU?C#
M4L=4#QOY*SH7HQ'RQI-W_#!_UX\(_?2HC )4I<9OQ79Z%ZOW>G+XK"%7U&$\
M?0?'HAMVH&UCLE+H-K%>XD%9B?73
^7JJ
MGGEN=^LXCZA/ 0QJ'(;E>;V&IFN(0R$C6BH4H,Y?<#5R"PD@>Z2*"Y7'([[Y
M%_8+SK0UF*;ZLHB_P&P=JK>@?X_A<1-3V=?;/VI>#+NG.9G'.XLO%
\ON4\77!S8=IOR+'
MIL\(V@TI,54#7KTF)E]05'NPIG!06J:=#;PV&[O+:3U2C)#!]E\XD0W/DLAW%! 1!J+Q[E8?'A6 O'&-G&
M_-)3-=17@-P]'8*>G 65F
#O[2@[%AI5L5\#.Z'4"G"(8MX">(D*.P7G<2][+1%':([0^JOVSQ>
M[FQ77MW1T+>[K;9?^R&NIQEX#;PO6T@1IL8>[I$LZ5DM*JO5TT/^[B8[65HW
MXI_/2WL^FUW;CW;?/S"T%DIH#=[)NBQ$'!6Y>@LXT/3(BSK?2FRH'I#R3M_T
MS'5[0GUO6+ N85",ETC,CWZE?^6HP\?(A]XK:3;W1Y,E1@LE;XS\/);F.&'H
MQBK=F!MM47;_W->6N5I;H?I2]T;:8]&) 87&DTLA
M+UN2"_H" S4#Z*,+=]/,]H\8R9AIK2NN\M%J+!.Q
-IJ7WJU%Z5AM_;+])SS