Evoqua Water Technologies Reports Third Quarter 2019 Results.
Evoqua Water Technologies Corp. (NYSE:AQUA), an industry leader in mission-critical water treatment solutions, today reported results for its third quarter of fiscal 2019.
Revenues for the third quarter of fiscal 2019 were $360.3mn, an increase of $17.8mn, or 5.2%, from $342.5mn in the prior year period. Revenue growth for the quarter was primarily attributable to an increase in service and aftermarket revenues from organic and recently acquired businesses, partially offset by lower capital revenues in the period and the negative impact of foreign currency exchange rates.
Net income for the third quarter of fiscal 2019 was $4.3mn, an increase of $3.3mn, from net income of $1.0mn in the prior year period, resulting in diluted earnings per share ("EPS") of $0.03 compared to $0.01 in the prior year period. Net income for the quarter includes increased income tax expense of $6.5 million over the prior year period based on the projected effective tax rate for the fiscal year.
Adjusted EBITDA was $60.6mn in the third quarter of fiscal 2019, an increase of $2.6mn, or 4.5%, from $58.0mn in the prior year period. The increase in Adjusted EBITDA for the third quarter of fiscal 2019 as compared to the prior year period was driven by increased revenues, favorable price/cost and mix driven by higher service volumes.
"We are pleased to report results in-line with expectations driven by strong service and aftermarket sales growth," said Ron Keating, Evoqua's CEO. "Overall, third quarter sales were up 5.2% mostly due to service revenue growth of 14.5%. Integrated Solutions and Services sales grew 7.7% and Applied Product Technologies sales were up 1.3% for the quarter. Our order book continues to accelerate, growing faster than revenue, and we continue to see a robust pipeline of opportunities. The two-segment realignment benefits are materialising as expected resulting in enterprise selling of our broad portfolio of technologies and services. On a year-to-date basis, our order book is up low double digits."
Mr. Keating continued, "We are reaffirming our 2019 guidance with expected revenues to be in the range of $1.38bn to $1.44bn and Adjusted EBITDA to be in the range of $220mn to $240mn. As global concerns arise around economic and environment challenges, we are seeing growing demand for our robust portfolio of sustainable solutions that leverages our vast service network, technologies and digital platform."
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