Announcement • Nov 15
H2O Innovation Inc. Expands Its Offices to Consolidate Business Operations in Texas H2O Innovation Inc. announced that it is relocating its Cypress and Spring Operation & Maintenance (O&M) offices into a single and larger industrial facility to better serve its clients and expand its market presence in the Houston area. Since H2O Innovation entered the Houston market with the acquisition of Hays Utility South Corporation (Hays) in 2018 and Gulf Utility Service Inc. (GUS) in 2020, it has experienced significant growth. This transition will consolidate and relocate the Corporation's O&M offices in Texas to streamline its operations in one single 24,500 square foot industrial facility. The key improvements in H2O Innovation's new facility include a customer service desk designed to cater to over 65 Municipal Utility Districts (MUD), Public Utility Districts, private water systems and industrial clients, which represent more than 37,448 connections, a new call-in center, as well as more convenient premises and modern equipment for the Corporation's 97 employees in Houston. The new facility's more functional parking lot will also provide increased convenience and ease of access for H2O Innovation's clients. Furthermore, H2O Innovation will use an adjacent 1.5-acre laydown yard to optimize its service vehicle operations, as this new space will accommodate the Corporation's fleet of over 100 vehicles. This relocation thus involves growth potential and aligns with H2O Innovation’s objectives of expanding its market presence and fortifying its operational capabilities. The negotiations were facilitated by Transwestern Real Estate Services (TRS), a trusted partner in this pivotal move. The Corporation's relocation to the new facility is expected to take place in November 2023. Announcement • Nov 01
H2O Innovation Inc. to Report Q1, 2024 Results on Nov 14, 2023 H2O Innovation Inc. announced that they will report Q1, 2024 results at 8:00 AM, Eastern Standard Time on Nov 14, 2023 Announcement • Oct 05
Funds managed by Ember Infrastructure Management, LP, Investissement Québec, Caisse de dépôt et placement du Québec and the key executives of H2O Innovation Inc. entered into a definitive agreement to acquire H2O Innovation Inc. (TSX:HEO) from Investissement Québec, Caisse de dépôt et placement du Québec, the key executives and others for approximately CAD 380 million. Funds managed by Ember Infrastructure Management, LP, Investissement Québec, Caisse de dépôt et placement du Québec and the key executives of H2O Innovation Inc. entered into a definitive agreement to acquire H2O Innovation Inc. (TSX:HEO) from Investissement Québec, Caisse de dépôt et placement du Québec, the key executives and others for approximately CAD 380 million on October 3, 2023. Ember Infrastructure will acquire all of the issued and outstanding common shares in the capital of H2O Innovation, other than the shares to be rolled over by Investissement Québec (“IQ”), Caisse de dépôt et placement du Québec (“CDPQ”) and the key executives of the Corporation (collectively, the “Rollover Shareholders”), for CAD 4.25 in cash per share. As part of the transaction, IQ has agreed to roll over all of its shares and increase its existing equity ownership in H2O Innovation by acquiring approximately CAD 20 million of additional shares for an amount per share equal to the consideration. Furthermore, CDPQ has agreed to roll over the majority of its shares and the key executives of H2O Innovation have agreed to roll over a portion of their shares for an amount per share equal to the consideration. Upon completion of the transaction, Ember will be the controlling shareholder of H2O Innovation, with IQ, CDPQ and the key executives of H2O Innovation, together, holding an equity interest in H2O Innovation of approximately 21%. Ember is funding its portion of the purchase price with capital it manages on behalf of its limited partners via private equity fund capital as well as select co-investors, including funds affiliated with the Ontario Power Generation Inc. Pension Fund. Pursuant to the agreement, H2O Innovation has a 30-day go-shop period that will extend from October 3, 2023 to November 2, 2023, during which Scotia Capital Inc. will solicit third-party interest in submitting a proposal which is superior to the proposal made by Ember. Upon closing of the transaction, H2O Innovation shares will be delisted from the TSX. H2O Innovation’s head office will remain in the Province of Québec.
The transaction is subject to court approval and H2O Innovation shareholders. H2O Innovation’s board of directors unanimously approved the transaction. The transaction is not subject to any financing condition and is expected to close in the fourth quarter of 2023. Norton Rose Fulbright Canada LLP is H2O Innovation’s legal counsel, Weil, Gotshal & Manges LLP and Davies Ward Phillips & Vineberg LLP are legal counsel to Ember, Fasken Martineau DuMoulin LLP is legal counsel to IQ and Blake, Cassels & Graydon LLP is legal counsel to CDPQ. Scotia Capital Inc. acted as exclusive financial advisor and fairness opinion provider to H2O Innovation and Desjardins Capital Markets acted as independent financial advisor and fairness opinion provider to the special committee of board of directors of H2O Innovation. Raymond James acted as financial advisor to Ember. Announcement • Sep 30
H2O Innovation Inc., Annual General Meeting, Dec 05, 2023 H2O Innovation Inc., Annual General Meeting, Dec 05, 2023. Reported Earnings • Sep 28
Full year 2023 earnings released: CA$0.014 loss per share (vs CA$0.058 profit in FY 2022) Full year 2023 results: CA$0.014 loss per share (down from CA$0.058 profit in FY 2022). Revenue: CA$253.3m (up 37% from FY 2022). Net loss: CA$1.30m (down 125% from profit in FY 2022). Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Sep 14
H2O Innovation Inc. to Report Q4, 2023 Results on Sep 27, 2023 H2O Innovation Inc. announced that they will report Q4, 2023 results at 8:00 AM, Eastern Daylight on Sep 27, 2023 Announcement • Jul 14
H2O Innovation Inc. Officializes Launch of Its Mobile Fleet and Increases Blue Loan Credit Facility by $10 Million to Support It H2O Innovation Inc. announced to launch its mobile fleet of water and wastewater treatment systems and secure three new leasing contracts totaling $3.4 million. This new service offering will require CAPEX investment, which is made possible by the recent agreement with National Bank of Canada on June 30, 2023. This agreement led to a $10 million increase in the Corporation's Blue Loan credit facility, which now stands at $75 million. This strategic initiative should enable H2O Innovation to broaden its range of services, strengthen its customer relationships through the sale of consumables required to operate the fleet assets, and thus improve its profit margins. As part of its mission to offer comprehensive solutions for industrial and municipal clients in North America, H2O Innovation is launching its mobile fleet of Water Technologies & Services (WTS) business line. The Corporation designs and manufactures two different types of mobile water treatment systems: the FlexBoxTM line, which comprises containerized ultrafiltration (UF) or reverse osmosis (RO) systems designed for drinking water treatment, industrial wastewater and water reuse, as well as the SILOTM system, which employs membrane bioreactor (MBR) technology and is specifically designed for wastewater and water reuse treatment. Over the last two years, H2O Innovation has manufactured a fleet of 9 mobile units. Due to the demand in this market sector, the Corporation is expanding its fleet with the objective of reaching 40 units within the next five years. Recently, the Corporation was awarded three new contracts for the supply of mobile units, including the FlexBoxTM RO, FlexBoxTM UF, and SILOTM technologies for an aggregate value of $3.4 M. Once designed and manufactured, two FlexBoxTM UF units will be delivered and leased for an initial period of 18 months to a mining client in Eastern USA. The second project awarded to the Corporation is for a 12-month lease of two SILOTM units for a private sector client in Quebec. Finally, the third contract involves the 24-month lease of a FlexBoxTM RO system to be deployed to a First Nation community in Western Canada. These three projects served as the driving force behind the Corporation's decision to expand its mobile fleet, which will consist of 14 units. The need for an increased capacity and availability became evident and prompted H2O Innovation to take action. A larger fleet will allow the Corporation to better meet the growing demand and provide its clients with access to safe water and sanitation whenever and wherever they require it. Reported Earnings • May 12
Third quarter 2023 earnings released: EPS: CA$0.004 (vs CA$0.015 in 3Q 2022) Third quarter 2023 results: EPS: CA$0.004 (down from CA$0.015 in 3Q 2022). Revenue: CA$68.4m (up 32% from 3Q 2022). Net income: CA$364.0k (down 73% from 3Q 2022). Profit margin: 0.5% (down from 2.6% in 3Q 2022). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 44% per year, which means it is significantly lagging earnings growth. Announcement • Feb 16
H2O Innovation Inc. Appoints Mr. Leonard F. Graziano as Member of its Board of Directors H2O Innovation Inc. announced the appointment of Mr. Leonard F. Graziano as a member of its Board of Directors, effective on February 13, 2023. Mr. Graziano has been serving on H2O Innovation's Strategy, Innovation and Large Projects Committee as an external advisor for the last six years. From 2002 to 2011, Mr. Graziano held the position of President and CEO of Severn Trent Services Inc. (STS), which provides water and wastewater treatment and operating services to utilities, municipalities and commercial customers around the world. He has also served as a board member of STS and of the National Association of Water Companies. Prior to joining STS, Mr. Graziano served five (5) years as President of Chemineer Inc., a division of Robbins & Myers Inc., a leader in industrial mixing and agitation equipment and technology. Prior to this role, Mr. Graziano held various executive positions in the pump industry. Mr. Graziano holds an MBA from Temple University and a Bachelor’s degree in Industrial Engineering from Rutgers University, and has over 45 years of experience in the water treatment industry. Reported Earnings • Feb 15
Second quarter 2023 earnings released: EPS: CA$0.007 (vs CA$0.009 in 2Q 2022) Second quarter 2023 results: EPS: CA$0.007 (down from CA$0.009 in 2Q 2022). Revenue: CA$63.9m (up 52% from 2Q 2022). Net income: CA$620.0k (down 19% from 2Q 2022). Profit margin: 1.0% (down from 1.8% in 2Q 2022). Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Announcement • Feb 01
H2O Innovation Inc. to Report Q2, 2023 Results on Feb 14, 2023 H2O Innovation Inc. announced that they will report Q2, 2023 results at 8:00 AM, US Eastern Standard Time on Feb 14, 2023 Reported Earnings • Nov 16
First quarter 2023 earnings released: EPS: CA$0 (vs CA$0.007 in 1Q 2022) First quarter 2023 results: EPS: CA$0 (down from CA$0.007 in 1Q 2022). Revenue: CA$56.1m (up 46% from 1Q 2022). Net income: CA$9.0k (down 99% from 1Q 2022). Profit margin: 0% (down from 1.6% in 1Q 2022). Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 12
First quarter 2023 earnings released: EPS: CA$0 (vs CA$0.007 in 1Q 2022) First quarter 2023 results: EPS: CA$0 (down from CA$0.007 in 1Q 2022). Revenue: CA$56.1m (up 46% from 1Q 2022). Net income: CA$9.0k (down 99% from 1Q 2022). Profit margin: 0% (down from 1.6% in 1Q 2022). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Machinery industry in Germany. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment improved over the past week After last week's 21% share price gain to €1.76, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 10x in the Machinery industry in Germany. Total returns to shareholders of 7.3% over the past year. Reported Earnings • Sep 29
Full year 2022 earnings released: EPS: CA$0.058 (vs CA$0.039 in FY 2021) Full year 2022 results: EPS: CA$0.058 (up from CA$0.039 in FY 2021). Revenue: CA$184.4m (up 28% from FY 2021). Net income: CA$5.11m (up 64% from FY 2021). Profit margin: 2.8% (up from 2.2% in FY 2021). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in Germany. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improved over the past week After last week's 17% share price gain to €1.57, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 12x in the Machinery industry in Germany. Total returns to shareholders of 6.1% over the past year. Reported Earnings • May 15
Third quarter 2022 earnings released: EPS: CA$0.015 (vs CA$0.026 in 3Q 2021) Third quarter 2022 results: EPS: CA$0.015 (down from CA$0.026 in 3Q 2021). Revenue: CA$51.9m (up 33% from 3Q 2021). Net income: CA$1.33m (down 36% from 3Q 2021). Profit margin: 2.6% (down from 5.3% in 3Q 2021). Over the next year, revenue is forecast to grow 14%, compared to a 11% growth forecast for the industry in Germany. Reported Earnings • Feb 15
Second quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Second quarter 2022 results: EPS: CA$0.009 (up from CA$0.003 in 2Q 2021). Revenue: CA$42.0m (up 20% from 2Q 2021). Net income: CA$762.0k (up 184% from 2Q 2021). Profit margin: 1.8% (up from 0.8% in 2Q 2021). Revenue exceeded analyst estimates by 8.1%. Over the next year, revenue is forecast to grow 14%, compared to a 11% growth forecast for the industry in Germany. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €1.52, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 14x in the Machinery industry in Germany. Total loss to shareholders of 32% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €2.24 per share. Reported Earnings • Nov 11
First quarter 2022 earnings released: EPS CA$0.007 (vs CA$0.013 in 1Q 2021) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2022 results: Revenue: CA$38.4m (up 9.7% from 1Q 2021). Net income: CA$618.0k (down 37% from 1Q 2021). Profit margin: 1.6% (down from 2.8% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 40% per year, which means it is significantly lagging earnings growth. Reported Earnings • Sep 29
Full year 2021 earnings released: EPS CA$0.039 (vs CA$0.061 loss in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: CA$144.3m (up 8.0% from FY 2020). Net income: CA$3.12m (up CA$7.35m from FY 2020). Profit margin: 2.2% (up from net loss in FY 2020). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 14
Third quarter 2021 earnings released: EPS CA$0.026 (vs CA$0.04 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CA$39.2m (up 8.6% from 3Q 2020). Net income: CA$2.06m (up CA$5.16m from 3Q 2020). Profit margin: 5.3% (up from net loss in 3Q 2020). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 12
Second quarter 2021 earnings released: EPS CA$0.003 (vs CA$0.014 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CA$35.0m (up 4.9% from 2Q 2020). Net income: CA$268.0k (up CA$1.18m from 2Q 2020). Profit margin: 0.8% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue misses expectations Revenue missed analyst estimates by 2.8%. Over the next year, revenue is forecast to grow 7.8%, compared to a 5.0% growth forecast for the Machinery industry in Germany. Is New 90 Day High Low • Jan 27
New 90-day high: €2.16 The company is up 85% from its price of €1.17 on 28 October 2020. The German market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.28 per share. Is New 90 Day High Low • Jan 06
New 90-day high: €1.52 The company is up 45% from its price of €1.05 on 08 October 2020. The German market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.35 per share. Recent Insider Transactions • Dec 16
Independent Vice Chairman of the Board recently sold €1.2m worth of stock On the 11th of December, Richard Hoel sold around 918k shares on-market at roughly €1.36 per share. This was the largest sale by an insider in the last 3 months. This was Richard's only on-market trade for the last 12 months. Is New 90 Day High Low • Dec 11
New 90-day high: €1.44 The company is up 104% from its price of €0.70 on 11 September 2020. The German market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.36 per share. Analyst Estimate Surprise Post Earnings • Nov 11
Revenue beats expectations Revenue exceeded analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 5.5%, compared to a 2.2% growth forecast for the Machinery industry in Germany. Reported Earnings • Nov 11
First quarter 2021 earnings released: EPS CA$0.013 The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CA$35.0m (up 24% from 1Q 2020). Net income: CA$984.0k (up CA$2.02m from 1Q 2020). Profit margin: 2.8% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Oct 28
H2O Innovation Inc. to Report Q1, 2021 Results on Nov 10, 2020 H2O Innovation Inc. announced that they will report Q1, 2021 results at 8:00 AM, US Eastern Standard Time on Nov 10, 2020 Is New 90 Day High Low • Oct 16
New 90-day high: €1.29 The company is up 80% from its price of €0.71 on 17 July 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €1.37 per share. Announcement • Oct 05
H2O Innovation Inc. to Report Q2, 2010 Results on 02/10/2010 H2O Innovation Inc. announced that they will report Q2, 2010 results on 02/10/2010 Reported Earnings • Sep 26
Full year earnings released - €0.061 loss per share Over the last 12 months the company has reported total losses of CA$4.23m, with losses widening by 93% from the prior year. Total revenue was CA$133.6m over the last 12 months, up 13% from the prior year. Is New 90 Day High Low • Sep 24
New 90-day high: €0.79 The company is up 19% from its price of €0.66 on 26 June 2020. The German market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €0.54 per share. Announcement • Sep 10
H2O Innovation Inc. to Report Q4, 2020 Results on Sep 24, 2020 H2O Innovation Inc. announced that they will report Q4, 2020 results at 8:00 AM, US Eastern Standard Time on Sep 24, 2020 Announcement • Jul 30
H2O Innovation Inc. (TSXV:HEO) acquired Gulf Utility Service, Inc. for $2.8 million. H2O Innovation Inc. (TSXV:HEO) acquired Gulf Utility Service, Inc. for $2.8 million on July 2, 2020. As part of the consideration, $1.875 million is being paid at the closing, and the balance not exceeding $0.875 million will be paid 18 months after closing subject to the achievement of certain revenue levels by Gulf Utility Service. H2O Innovation secured an additional new senior debt of $2.1 million in order to complete this acquisition. The remaining portion of the purchase price is financed from the working capital of the H2O Innovation. This transaction is a tuck-in acquisition. The total purchase price for GUS is $2.75 million equivalent to 5x the EBITDA of CAD 0.7 million ($0.515574 million) at the end of December 2019. Gulf Utility Service reported $6.8 million of revenues and $0.7 million of EBITDA for the fiscal year ended on December 31, 2019. The 30 employees of Gulf Utility Service are expected to stay with the organization. H2O Innovation’s management expects that this acquisition will grow immediately H2O Innovation’s EBITDA and will also be accretive to its EPS.
H2O Innovation Inc. (TSXV:HEO) completed the acquisition of Gulf Utility Service, Inc. on July 2, 2020.