Evoqua Water Technologies Corp (NYSE: AQUA) stock fell 8.67% on November 17th, 2020 and continued its bearish momentum falling over 0.4% on 18th November, 2020 (as of 9:57 am GMT-5; Source: Google finance) post the fourth quarter of FY 20 performance.
Service revenue fell by $3.5 million as compared to the prior year period mainly due to shut-downs and delays in the refining and oil and gas markets, as well as other COVID-19 related deferrals or delays across a variety of end markets. Timing of completion of certain large projects in the prior year period also contributed to the lower revenues, which was however partly offset by price realization related to established service contracts. Aftermarket revenue fell by $1.0 million, while the recent investment in Frontier Water Systems, LLC contributed $1.3 million of revenue in the period. Integrated Solutions and Services’ segment revenues grew 0.6%, to $249.5 million in the fourth quarter of fiscal 2020 as compared to the prior year period. Capital revenue rose by $4.7 million, exclusive of acquisitions, as compared to the prior year period. The increase was mainly due to continued strong demand for water solutions and systems in the microelectronics end market.
Applied Product Technologies’ segment revenues fell by 18.3%, to $134.4 million in the fourth quarter of fiscal 2020 as compared to the same period in the prior year. The divestiture of the Memcor product line resulted in a reduction in revenue of $25.3 million. Further, the revenue declined across multiple product lines in the Americas and EMEA regions, mainly due to COVID-19 related customer site closures and delays. These decreases were however partially offset by rise in revenue in the Asia Pacific region, driven by volume in the Electro-deionization and Disinfection product lines as demand increased in the region as it recovers from COVID-19.
AQUA in the fourth quarter of FY 20 has reported the adjusted earnings per share of 29 cents, and reported 6.9 percent fall in the adjusted revenue to $383.86 million in the fourth quarter of FY 20. This is due to the net impact of acquisitions and the divestiture of the Memcor product line, which resulted in a net decline in revenue of 5.8%, along with a decline in organic revenue of 1.7%. Adjusted EBITDA for the fourth quarter was $75.6 million as compared to $79.3 million in the prior year period.