Energy Recovery, Inc. Files Q3 2024 10-Q Report

TL;DR

ERII Q3 2024 10-Q filed. Financials updated.

AI Summary

Energy Recovery, Inc. filed its Q3 2024 10-Q report on October 30, 2024, covering the period ending September 30, 2024. The company, based in San Leandro, CA, operates in the Special Industry Machinery sector. This filing provides financial updates for the third quarter and the year-to-date period.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Energy Recovery, Inc. during the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing and does not inherently present new risks.

Key Players & Entities

• Energy Recovery, Inc. (company) — Filer of the 10-Q report
• 0001421517-24-000191 (other) — Accession number for the filing
• 20240930 (date) — Period of report
• 20241030 (date) — Filing date
• San Leandro, CA (location) — Company address

FAQ

Key Financial Figures

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

Filing Documents

• erii-20240930.htm (10-Q) — 2487KB
• ex311302ceo2024-q3.htm (EX-31.1) — 11KB
• ex312302cfo2024-q3.htm (EX-31.2) — 11KB
• ex3219062024-q3.htm (EX-32.1) — 8KB
• erii-20240930_g1.jpg (GRAPHIC) — 93KB
• 0001421517-24-000191.txt ( ) — 9524KB
• erii-20240930.xsd (EX-101.SCH) — 31KB
• erii-20240930_cal.xml (EX-101.CAL) — 67KB
• erii-20240930_def.xml (EX-101.DEF) — 111KB
• erii-20240930_lab.xml (EX-101.LAB) — 442KB
• erii-20240930_pre.xml (EX-101.PRE) — 299KB
• erii-20240930_htm.xml (XML) — 2085KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets — September 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations — Three and Nine Months Ended September 30, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income (Loss) — Three and Nine Months Ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity — Three and Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows — Nine Months Ended September 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 20 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4

Controls and Procedures

Controls and Procedures 31 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 32 Item 1A

Risk Factors

Risk Factors 32 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3 Defaults Upon Senior Securities 32 Item 4 Mine Safety Disclosures 32 Item 5 Other Information 32 Item 6 Exhibits 33

Signatures

Signatures 33 Energy Recovery, Inc. | Q3'2024 Form 10-Q | FLS 1 Table of Contents Forward-Looking Information This Quarterly Report on Form 10-Q for the three and nine months ended September 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 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 September 30, 2024 December 31, 2023 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 63,261 $ 68,098 Short-term investments 55,364 40,445 Accounts receivable, net 31,845 46,937 Inventories, net 33,464 26,149 Prepaid expenses and other assets 5,980 3,843 Total current assets 189,914 185,472 Long-term investments 21,286 13,832 Deferred tax assets, net 11,029 10,324 Property and equipment, net 16,352 18,699 Operating lease, right of use asset 10,152 11,469 Goodwill 12,790 12,790 Other assets, non-current 1,182 388 Total assets $ 262,705 $ 252,974 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,414 $ 3,000 Accrued expenses and other liabilities 10,524 15,583 Lease liabilities 1,964 1,791 Contract liabilities 2,969 1,097 Total current liabilities 18,871 21,471 Lease liabilities, non-current 9,861 11,488 Other liabilities, non-current 100 207 Total liabilities 28,832 33,166 Commitments and contingencies (Note 7) Stockholders' equity: Common stock 66 65 Additional paid-in capital 231,909 217,617 Accumulated other comprehensive income (loss) 149 ( 44 ) Treasury stock ( 80,486 ) ( 80,486 ) Retained earnings 82,235 82,656 Total stockholders' equity 233,873 219,808 Total liabilities and stockholders' equity $ 262,705 $ 252,974 See Accompanying Notes to Condensed Consolidated Financial Statements Energy Recovery, Inc. | Q3'2024 Form 10-Q | 2 Table of Contents ENERGY RECOVERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands, except per share data) Revenue $ 38,584 $ 37,036 $ 77,873 $ 71,160 Cost of revenue

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View this 10-Q filing on SEC EDGAR