- \n
- \nRevenue of $435.8 million, an increase of 19.0% compared to the prior year period; organic revenue growth of 9.1%\n<\/li>\n
- \nNet income of $9.3 million, an increase of 52.5% compared to the prior year period\n<\/li>\n
- \nAdjusted EBITDA of $72.7 million, an increase of 33.9% compared to the prior year period\n<\/li>\n<\/ul>\n
PITTSBURGH–(BUSINESS WIRE<\/a>)–
\nEvoqua Water Technologies (NYSE:AQUA), an industry leader in mission-critical water treatment solutions, today reported results for its first quarter ended December 31, 2022.\n<\/p>\n\nRevenue for the first quarter of fiscal year 2023 was $435.8 million, compared to $366.3 million in the prior year period, an increase of 19.0%, or $69.5 million. Organic revenue growth contributed 9.1%, or $33.3 million, driven by favorable price realization and higher volume for products and services across most product lines and all regions. Inorganic revenue contributed $42.9 million, primarily related to our acquisition of the Mar Cor business on January 3, 2022. Revenue was unfavorably impacted by $6.7 million in the period related to foreign currency translation. Net income for the quarter was $9.3 million, resulting in diluted earnings per share (\u201cEPS\u201d) of $0.07, as compared to net income of $6.1 million and diluted EPS of $0.05 in the prior year period. The increase in net income of 52.5%, or $3.2 million, was favorably impacted by increased revenues and related profit. These benefits were partially offset by increased operating expenses as compared to the prior period, including higher legal expenses as well as higher wages and other costs associated with acquisitions and inflation. The increased operating costs were somewhat mitigated by non-cash foreign currency translation gains in the current period. Adjusted EBITDA for the quarter was $72.7 million, as compared to $54.3 million in the prior year period, an increase of 33.9%, or $18.4 million. See the \u201cUse of Non-GAAP Measures\u201d section below for additional information regarding adjusted EBITDA.\n<\/p>\n
\n\u201cWe are very pleased with our start to fiscal 2023.\u201d said Ron Keating, Evoqua President and CEO, \u201cOur first quarter results were strong across all regions and most end markets, as revenues were up 19.0% over the prior year period, with organic growth contributing 9.1%. We continue to see broad based demand across our key markets, particularly Life Sciences and Microelectronics. Our order flow remains healthy as well, with a book to bill ratio again over 1.0. The ISS backlog continued to grow, and we are pleased with the progress of outsourced water and our digital strategy. Leverage on organic growth drove adjusted EBITDA up nearly 34%, and we saw margin expansion over the prior year quarter.\u201d\n<\/p>\n
\nMr. Keating continued, \u201cOur outlook for the broader markets remains positive, and our pipeline continues to be robust. We have increased inventory levels to support our strong order book, as material availability remains limited in certain regions and for certain components. Despite this, our net debt leverage returned to pre-Mar Cor acquisition levels just one year after the purchase. With supply chain visibility improving and inflation abating in some key commodities, we remain confident we will reach our 100%+ cash conversion target for the year.\u201d\n<\/p>\n
\nMr. Keating concluded by stating, \u201cOn January 23, 2023, Xylem, Inc. (\u201cXylem\u201d) announced that we have entered into a definitive agreement under which Xylem will acquire Evoqua in an all-stock transaction. Joining forces with Xylem is an exciting opportunity for Evoqua and for our team members. This combination provides a platform to leverage our combined strengths, and we look forward to the prospect of increasing our impact to better address the most pressing and increasingly complex global water challenges. While we remain focused on executing our plan until the deal closes, we will not be providing updates to guidance going forward.\u201d\n<\/p>\n
First Quarter Earnings Call and Webcast<\/b><\/p>\n
\nThe Company will hold its first quarter fiscal 2023 earnings conference call Tuesday, January 31, 2023, at 10:00 a.m. E.T. The live audio webcast and presentation slides for the call will be accessible via Evoqua\u2019s Investor Relations website, http:\/\/aqua.evoqua.com\/<\/a><\/span>.\n<\/p>\n