Energy Recovery, Inc. Files Q2 2024 10-Q

TL;DR

ERII Q2 2024 10-Q filed. Financials and operations update.

AI Summary

Energy Recovery, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024, detailing financial performance and operational updates. The company is based in San Leandro, California, and operates in the Special Industry Machinery sector.

Why It Matters

This 10-Q filing provides investors and analysts with the latest financial results and business developments for Energy Recovery, Inc., crucial for understanding the company's current performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial information, not indicating any immediate or significant new risks.

Key Numbers

• 20240630 — End of Reporting Period (Covers financial data up to this date for Q2 2024.)
• 20240731 — Filing Date (Date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Energy Recovery, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240731 (date) — Filing date
• San Leandro, CA (location) — Company headquarters

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value ERII The Nasdaq Stock Mar

Filing Documents

• erii-20240630.htm (10-Q) — 2428KB
• ex311302ceo2024-q2.htm (EX-31.1) — 11KB
• ex312302cfo2024-q2.htm (EX-31.2) — 11KB
• ex3219062024-q2.htm (EX-32) — 8KB
• erii-20240630_g1.jpg (GRAPHIC) — 93KB
• 0001421517-24-000172.txt ( ) — 9236KB
• erii-20240630.xsd (EX-101.SCH) — 31KB
• erii-20240630_cal.xml (EX-101.CAL) — 65KB
• erii-20240630_def.xml (EX-101.DEF) — 101KB
• erii-20240630_lab.xml (EX-101.LAB) — 436KB
• erii-20240630_pre.xml (EX-101.PRE) — 292KB
• erii-20240630_htm.xml (XML) — 1997KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets — June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations — Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Loss — Three and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity — Three and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows — Six Months Ended June 30, 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements 6 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 4

Controls and Procedures

Controls and Procedures 28 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 28 Item 1A

Risk Factors

Risk Factors 28 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3 Defaults Upon Senior Securities 28 Item 4 Mine Safety Disclosures 28 Item 5 Other Information 29 Item 6 Exhibits 29

Signatures

Signatures 29 Table of Contents Energy Recovery, Inc. | Q2'2024 Form 10-Q Forward-Looking Information This Quarterly Report on Form 10-Q for the three and six months ended June 30, 2024 , including Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" (the "MD&A"), contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this report include, but are not limited to, statements about our expectations, objectives, anticipations, plans, hopes, beliefs, intentions or strategies regarding the future. Forward-looking statements represent our current expectations about future events, are based on assumptions, and involve risks and uncertainties. If the risks or uncertainties occur or the assumptions prove incorrect, then our results may differ materially from those set forth or implied by the forward-looking statements. Our forward-looking statements are not guarantees of future performance or events. Words such as "expects," "anticipates," "aims," "projects," "intends," "plans," "believes," "estimates," "seeks," "continue," "could," "may," "potential," "should," "will," "would," variations of such words and similar expressions are also intended to identify such forward-looking actual results may differ materially and adversely from those expressed in any forward-looking statement. Readers are directed to risks and uncertainties identified under Part II, Item 1A, "Risk Factors," and elsewhere in this report for factors that may cause actual results to be different from those expressed in these forward-looking statements. Except as required by law, we undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Forward-looking statements in this report include, without limitation, statements about the following

Forward-looking statements in this report include, without limitation, statements about the following: our belief that our PX offers market-leading value with the highest technological and economic benefit; our belief that leveraging our pressure exchanger technology will unlock new commercial opportunities in the future; our belief that our PX G1300 can contribute to help make CO 2 -based refrigeration economically viable in a broader range of climates; our belief that our technology helps our customer achieve environmentally sustainable operations; our expectation that sales outside of the U.S. will remain a significant portion of our revenue; the scale of the environmental impact from the use of our solutions; our belief that our sustainability goals are highly influential to our business success; the timing of our receipt of payment for products or services from our customers; our belief that our existing cash and cash equivalents, our short and/or long-term investments , and the ongoing cash generated from our operations, will be sufficient to meet our anticipated liquidity needs for the foreseeable future, with the exception of a decision to enter into an acquisition and/or fund investments in our latest technology arising from rapid market adoption that could require us to seek additional equity or debt financing; our expectations relating to the amount and timing of recognized revenue from our projects; our expectations relating to expenses; our expectation that we will continue to receive a tax benefit related to U.S. federal foreign-derived intangible income and research and development tax credit; the outcome of proceedings, lawsuits, disputes and claims; the impact of losses due to indemnification obligations; other factors disclosed under the MD&A and Part I, Item 3, "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in this Form 10-Q. You should not place undue reliance on these forward-loo

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

— Financial Statements (unaudited)

Item 1 — Financial Statements (unaudited) ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 40,313 $ 68,098 Short-term investments 60,697 40,445 Accounts receivable, net 20,670 46,937 Inventories, net 33,659 26,149 Prepaid expenses and other assets 3,690 3,843 Total current assets 159,029 185,472 Long-term investments 37,017 13,832 Deferred tax assets, net 11,441 10,324 Property and equipment, net 17,248 18,699 Operating lease, right of use asset 10,599 11,469 Goodwill 12,790 12,790 Other assets, non-current 919 388 Total assets $ 249,043 $ 252,974 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,753 $ 3,000 Accrued expenses and other liabilities 10,153 15,583 Lease liabilities 1,909 1,791 Contract liabilities 3,214 1,097 Total current liabilities 20,029 21,471 Lease liabilities, non-current 10,415 11,488 Other liabilities, non-current 86 207 Total liabilities 30,530 33,166 Commitments and contingencies (Note 7) Stockholders' equity: Common stock 66 65 Additional paid-in capital 225,240 217,617 Accumulated other comprehensive loss ( 61 ) ( 44 ) Treasury stock ( 80,486 ) ( 80,486 ) Retained earnings 73,754 82,656 Total stockholders' equity 218,513 219,808 Total liabilities and stockholders' equity $ 249,043 $ 252,974 See Accompanying Notes to Condensed Consolidated Financial Statements Table of Contents Energy Recovery, Inc. | Q2'2024 Form 10-Q | 1 ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands, except per share data) Revenue $ 27,199 $ 20,723 $ 39,289 $ 34,124 Cost of revenue 9,633 7,180 14,588

View Full Filing

View this 10-Q filing on SEC EDGAR