Energy Recovery : November 2023 Investor Presentation
November 20, 2023 at 04:34 pm EST
Share
NASDAQ:ERII
Energy Recovery
Southwest IDEAS Conference
James Siccardi, VP Investor Relations
November 15, 2023
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, anticipations, plans, hopes, beliefs, intentions, or strategies regarding the future. Forward- looking statements that 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," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements.
These forward-looking statements are subject to risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this presentation. All forward-looking statements included in this presentation are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in the forward-looking statements, as disclosed from time to time in our reports on Forms 10-K,10-Q, and 8-K as well as in our Annual Reports to Stockholders and, if necessary, updated in our quarterly reports on Form 10 Q or in other filings. We assume no obligation to update any such forward-looking statements. It is important to note that our actual results could differ materially from the results set forth or implied by our forward-looking statements.
2
Product Revenue1: 2015 - 2023E
Rapid Growth
16%
Average Product Revenue Growth
2015-2022
140
130
120
110
100
90
80
70
60
50
40
$135M
$126M
$104M
$92M
$73M
$58M $61M
$50M
$44M
2015
2016
2017
2018
2019
2020
2021
2022
2023E
(1) Excludes reported License and Development Revenue 2015 through 2020.
3
Operating Margin1: 2015 - 2022
Turnaround in Profitability
30%
20%
20%
10%
13%
0%
7%
-9%
-3%
-6%
-5%
-10%
-20%
-29%
-30%
2015
2016
2017
2018
2019
2020
2021
2022
Calculation excludes reported License and Development Revenue in 2015 through 2020 and the one-time impairment of VorTeq related assets in 2021.
4
Other Strong Fundamentals
High Margin
Flexible Balance Sheet
70%
Average Gross Margin
2022
$106M
Cash & Securities and NO
DEBT1
As of 3Q 2023
5
What Is Driving This Value?
The PX Technology Platform
6
The PX Pressure Exchanger
7
Unique Value Proposition: Reduce Emissions & Save Customers Money
$3.9B
98%+
annual customer energy savings1
product revenue from energy- efficiency related sources
(1) Energy Recovery estimates. Assumes all deployed devices are in operation.
8
Our PX Technology Revolutionized the Desalination Industry
1
2
Reduces energy costs by up to 60%
Transfers energy at up to 98% efficiency
3
4
Designed for a 25-year life
Needs no maintenance
Significant Customer Value Proposition Translates into ERII Profitability
70% ERII Gross Margin1
25% Russell 2000 Industrials
(1) 2022 FY Reported Avg. Gross Margin
9
PX In Action: Desalination
10
Attachments
Original Link
Original Document
Permalink
Disclaimer
ERI - Energy Recovery Inc. published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 21:33:08 UTC.
Energy Recovery, Inc. is engaged in energy efficiency technology. The Company designs and manufactures solutions that provide cost savings through improved energy efficiency in commercial and industrial processes, with applications across several industries. Its segments include Water and Emerging Technologies. The Water segment develops, sales and supports PX, hydraulic turbochargers and pumps used in seawater desalination and wastewater treatment activities. The Emerging Technologies segment develops, sales and supports activities related to emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. Its solutions are marketed, sold in, or developed for, the fluid-flow and gas markets, such as seawater and wastewater desalination, natural gas, chemical processing and CO2-based refrigeration systems, under the trademarks ERI, PX, Pressure Exchanger, PX Pressure Exchanger (PX), Ultra PX, PX G, PX G1300, PX PowerTrain, AT, and Aquabold.