Evoqua Water Technologies Corp. (NYSE:AQUA) Q4 2022 Earnings Call Transcript

Patrick Baumann: And sorry, Ben. The 2022, where did that land for the full year? I think you said 85-15 price/volume for the fourth quarter, what about fiscal–?

Ben Stas: 85-15 for the year was 39% volume 61% price. Next year, we’re expecting 60% volume, 40% price.

Patrick Baumann: That’s clear. Thank you. And then one quick follow-up — cleanup, I guess. I thought Mar Cor was like I think $180 million annualized revenue business is the way you were describing it when you acquired it. So I just wanted to kind of be clear. Was the entire $49 million of acquired revenue in the quarter from Mar Cor? And then, how is that business growing organically since you acquired it? And what do you expect it to grow looking into 2023?

Ron Keating: Yeah. It was not all from Mar Cor. We also acquired Smith Engineering and then Epicor as well. So we closed Epicor is very small. But as we look forward in the year and what we saw growth coming from Mar Cor what I highlighted earlier, it’s really coming from our Traditional Life Sciences business. Mar Cor has been steady. We anticipated it would be steady and we would get a lot of synergies coming from the efficiency side that we highlight as we called out 27 branches, 25 are in the same location as our service branches that we already have in quarter for Evoqua. And so where we’ve seen the growth has really been on our base business, Life Sciences with us being able to do more with that customer base.

Patrick Baumann: Understood. Thanks so much for the extra color and congrats on the strong results.

Ron Keating: Thank you very much.

Operator: Thank you. That concludes our question-and-answer period. I would now like to turn the call back over to Ron Keating, for his closing remarks.

Ron Keating: Thank you for joining us today. And thank you for your interest in Evoqua. I absolutely want to recognize the team that we have that executed tremendously throughout 2022. And we’ll continue to execute throughout FY 2023. We were most proud of the impact that we had on our safety scores. As I said in the opening remarks, Safety is the number one priority of Evoqua. And our team through a very strong focus was able to improve that metric significantly as well as our ESG goals as we’re driving with water recycle reuse inside of our own facilities as we’re allowing other customers to do that. So we wish you all a good week. And thank you again for joining us. We’ll speak to you again in next quarter.

Operator: Thank you. This concludes today’s Evoqua Water Technologies Fourth Quarter and Full Year 2022 Earnings Conference Call. You may now disconnect your lines. And thank you for your interest in Evoqua.