# Water Intelligence Revenues grow strongly by 34%

- Link: https://www.directorstalkinterviews.com/water-intelligence-revenues-grow-strongly-by-34/412796324
- Published: 2019-10-28T07:09:43+00:00
- Author: Giles Arbor

**Water Intelligence** (LON: WATR), a leading multinational provider of precision,
minimally-invasive leak detection and remediation solutions for both potable and
non-potable water has provided a trading update for year-to-date through the end
of the third quarter.

Results for 2019 through Q3 are ahead of market expectations for revenue and comfortably
in-line with expectations for profits before taxes (statutory and adjusted).

**Highlights:**

· Financial: Water Intelligence revenues grow strongly by 34% to $24.7 million (
3Q 2018: $18.5 million; FY 2018: $25.5 million)

Key Performance Indicators

o Franchise: American Leak Detection franchise royalties grow 4% to $5.1 million(
3Q 2018: $4.9 million)

§ Implying approximately $67 million in year-to-date gross sales to third parties
from which royalty is derived

o Franchise-Related Activities: business-to-business insurance channel; equipment
sales, franchise sales grow 45% to $6.1 million (3Q 2018: $4.2 million)

o US Corporate-Operated Locations: grow 47% to $10.7 million (3Q 2018: $7.3 million)

o International Corporate-Operated Locations: grow 27% to $2.8 million (3Q 2018:
$2.2 million)

§ Includes UK municipal operations, UK-managed municipal operations in the US and
full-service operations in Ontario, Canada and Sydney, Australia

o Net Cash (Cash minus Borrowings): +$2.7 million

· Water Intelligence profits before taxes (both statutory and adjusted for amortization,
non-core costs and share-based payments) comfortably in-line with expectations

· Corporate Development: New municipal business line in US growing and technology
reinvestment and commercialization advancing strongly

o Roll-out of new municipal leak detection business in US with joint US (American
Leak Detection) and UK (Water Intelligence International) team;

o Roll-out of proprietary sewer and wastewater diagnostic product in both UK and
US; first sales / leasing of product anticipated during 4Q

o Q3 investment in Entertainment AI and acquisition of e-commerce and video search
technology to enable Water Intelligence to sell consumer water-related products;
Company working with insurance companies to market/resell water monitoring products
and provide leak detection services

**Commenting on the Group’s performance, Water Intelligence Executive Chairman, 
Dr. Patrick DeSouza remarked: **

> “Global market demand for solutions to water loss from leakage is strong and continues
> to grow. We are accelerating our growth plan by building on our base of customers
> and adding more business lines such as municipal sewer and wastewater diagnostics
> and consumer sales of water / home services-related products and services via 
> e-commerce. We are confident and have produced another strong set of numbers for
> both franchise and corporate-run operations across all of our key performance 
> indicators.
> “Moreover, we believe strongly that our technology investments will enable us 
> to sustain our growth trajectory in 2020 and beyond. Given our installed base 
> of service operations, especially across the US, and the strength of market demand
> for both potable and non-potable water infrastructure solutions, we have a considerable
> opportunity for realizing significant value for our shareholders. As important,
> we seek a leadership role in providing solutions for the critical problems of 
> water loss and contamination for our global stakeholders in creating a more sustainable
> world. We are pleased to deliver for both shareholders and stakeholders and note
> with pride a recent mention of our good work by the Mayor of Flint, Michigan –
> a city with a devastating history of lead in the water – in her State of the City
> speech.”

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