ATEC Water Systems Revenues Expected to top
$12 Million in FY 2024
LOS
ANGELES, Nov. 13, 2023 /PRNewswire/ -- Today,
Cadiz, Inc. (NASDAQ: CDZI/CDZIP) is pleased to mark the one-year
anniversary of its acquisition of our water treatment operating
subsidiary ATEC Water Systems, L.L.C. ("ATEC"), a leading producer
of specialized water filtration solutions for contaminated
groundwater sources. Since Cadiz acquired the business in Q4 2022,
ATEC has secured contracts and begun production on projects
expected to generate significant revenues beginning in FY 2024.
ATEC segment revenues are expected to total approximately
$1.4 million in FY 2023 and exceed
$12 million in FY 2024 with projected
segment positive operating income of approximately $3 - 4 million during FY 2024.
"We are pleased with ATEC's success and its promise to deliver a
robust source of future cash flow for the business while meeting
the urgent need for access to clean water in communities affected
by groundwater contamination," said Susan
Kennedy, Executive Chair of Cadiz.
With manufacturing facilities in Hollister, California, ATEC's specialized
filtration media provide cost-effective, high-rate of removal for
common groundwater contaminants that pose health risks in drinking
water, including iron, manganese, arsenic, chromium-6, and other
constituents of concern. In March
2023, ATEC was awarded a contract to provide all wellhead
filters for removal of iron and manganese for the Central Utah
Water Conservancy District, the largest water district in
Utah. Delivery of ATEC filters
under this contract is expected to begin in the first quarter of
2024.
Earlier this year, Cadiz installed ATEC's new arsenic filtration
systems at wells on tribal lands in Thermal, California near the Salton Sea for
the Torres Martinez Desert Cahuilla Indian Tribe. The filters are
successfully removing arsenic and bringing the community wells into
compliance with safe drinking water standards established by state
and federal water quality agencies.
We believe ATEC filters provide the most cost-effective
treatment solutions for successful reduction and removal of iron
and manganese from groundwater. High levels of manganese pose
significant potential health risks, especially for babies and young
children. An April 2023 study in
the journal Environmental Science & Technology, found
the occurrence of elevated levels of manganese especially prevalent
in disadvantaged communities in California's Central
Valley in tandem with elevated arsenic. The ATEC iron and
manganese treatment system has effectively been adapted to remove
arsenic as well as chromium-6.
"We believe there is no other treatment filtration system on the
market that can remove iron, manganese, chromium-6 or arsenic from
groundwater sources large and small as affordably or effectively as
ATEC," said Lee Odell, ATEC COO and
lead engineer. "Our experience in successful treatment of iron and
manganese will make us the solution to this challenge effecting
thousands of communities."
Earlier this year, ATEC entered into a service contract with
Goble Sampson, a leading
Manufacturers' Representative of process equipment providers for
water and wastewater treatment. Goble
Sampson is actively marketing ATEC filtration products in 10
western states.
About Cadiz, Inc.
Founded in 1983, Cadiz, Inc.
(NASDAQ: CDZI) is a California
water solutions company dedicated to providing access to clean,
reliable and affordable water for people through a unique
combination of water supply, storage, pipeline and treatment
solutions. With 45,000 acres of land in California, 2.5 million acre-feet of water
supply, 220 miles of pipeline assets and the most cost-effective
water treatment filtration technology in the industry, Cadiz offers
a full suite of solutions to address the impacts of climate change
on clean water access.
For more information, please visit www.cadizinc.com.
FORWARD LOOKING STATEMENTS: This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements include but are not limited to
statements regarding the future revenue and operating performance
of the ATEC water treatment operating segment of Cadiz, Inc. (the
"Company") that are subject to significant business, economic and
competitive risks and uncertainties, many of which are beyond the
control of ATEC and the Company. Although the Company
believes that the expectations reflected in our forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Factors that could
cause actual results or events to differ materially from those
reflected in the Company's forward-looking statements, including
expected growth opportunities or cost savings may take longer to
realize than expected, delays in the supply chain for materials, or
other factors, are detailed in the Company's Securities and
Exchange Commission filings. We undertake no obligation to
publicly update any forward-looking statement, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
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SOURCE Cadiz Inc.