Cadiz (CDZI) Q2 2024 earnings summary

Executive summary

• Net loss for Q2 2024 was $8.9 million, up from $7.1 million in Q2 2023, mainly due to higher stock compensation and interest expense related to new debt agreements.

• Revenue for Q2 2024 was $0.5 million, down from $0.8 million in Q2 2023, primarily from water filtration sales, alfalfa crop, and agricultural leases.

• The company continues to focus on developing water supply, storage, and conveyance projects, with new agreements covering 65% of Northern Pipeline capacity.

Financial highlights

• Q2 2024 revenue: $0.5 million (Q2 2023: $0.8 million); six-month revenue: $1.6 million (2023: $0.9 million).

• Q2 2024 net loss: $8.9 million (Q2 2023: $7.1 million); six-month net loss: $15.7 million (2023: $17.8 million).

• Operating loss for Q2 2024: $6.9 million (Q2 2023: $5.6 million).

• Interest expense increased to $1.9 million in Q2 2024 (Q2 2023: $1.1 million).

• Cash and cash equivalents at June 30, 2024: $10.1 million (Dec 31, 2023: $4.5 million).

Outlook and guidance

• Short-term liquidity is sufficient due to proceeds from the Third Amended Credit Agreement and cash on hand.

• Long-term capital needs will require additional financing for project development and working capital.

• ATEC operations expected to be funded by existing capital and operational cash flow in 2024.