Energy Recovery, Inc. · NASDAQ:ERII
Energy Recovery — Q2 2020 Earnings Presentation
6 slides from Energy Recovery's earnings presentation, Sep 30, 2020
Slide 1: Energy Recovery Quarterly Update 2020 Second Quarter
Energy Recovery Quarterly Update 2020 Second Quarter NASDAQ: ERII
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation 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, antic
Slide 3: Strategic and Commercial Update
STRATEGIC AND COMMERCIAL UPDATE Product Revenue Flat Year-Over-Year o 2Q20 Product revenue of $19.3M, compared to $19.2M in 2Q19 o Product gross margins temporarily declined to 66% largely due to the COVID-19 pandemic Oil and Gas Results Impacted by VorTeq License Agreement Separation o Remaining GA
Slide 4: Global Footprint Has Helped Drive Growth and Profitability
GLOBAL FOOTPRINT HAS HELPED DRIVE GROWTH AND PROFITABILITY Secular Trend Offsets COVID-19 Headwinds Water Revenue $38M o MPD continues to drive water results $35M Water revenue up 9% YTD $19M $19M MPD up 35% YTD o 2020 revenue growth of 20-25% reaffirmed o 2021 outlook of 0-5% growth issued 2Q19
Slide 5: Strong Product Gross Margins Despite COVID-19 Impact
STRONG PRODUCT GROSS MARGINS DESPITE COVID-19 IMPACT Water Gross Margin o PX Pressure Exchanger sales continue to drive profitability 71.5% 70.5% 68% o 2Q20 margin decreased 5.5% vs 2Q19 66% largely due to Covid-19 Decreased production levels in first half of the quarter Delayed commissioning of
Slide 6: Single Skid VorTeq
SINGLE SKID VORTEQ o Elegant, single PX skid solution VorTeq Production Model 1.0 Takes advantage of higher sand concentrations Easily scalable to flow rate, pressure and overall configuration requirements Less intrusive to frac operations Easy access to repair or service o Less expensive an