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SCHEDULE I - Evoqua Water Technologies Corp.
 12 Months Ended
Sep. 30, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure
SCHEDULE I-Evoqua Water Technologies Corp.
(Parent company only)
Condensed Consolidated Balance Sheets
(In thousands)
September 30, 2021September 30, 2020
ASSETS
Current assets$51,777 $10,871 
Due from affiliates39,982 5,821 
Cash and cash equivalents11,681 4,972 
Prepaid and other current assets114 78 
Investment in affiliate517,479 489,745 
Total assets$569,256 $500,616 
LIABILITIES AND EQUITY
Due to affiliates— — 
Total liabilities$— $— 
Common stock, par value $0.01: authorized 1,000,000 shares; issued 122,173 shares, outstanding 120,509 at September 30, 2021; issued 119,486 shares, outstanding 117,291 at September 30, 2020
1,223 1,189 
Treasury stock: 1,664 shares at September 30, 2021 and 2,195 shares at September 30, 2020
(2,837)(2,837)
Additional paid‑in capital582,052 564,928 
Retained deficit(11,182)(62,664)
Total shareholders’ equity$569,256 $500,616 
Total liabilities and shareholder’s equity$569,256 $500,616 
SCHEDULE I-Evoqua Water Technologies Corp.
(Parent company only)
Condensed Statements of Operations
(In thousands)
Year Ended September 30,
202120202019
Other operating (expense) income$(1,073)$16 $73 
General and administrative expense(426)(476)(303)
Net income (loss) of subsidiaries52,981 114,109 (9,293)
Income (loss) before taxes51,482 113,649 (9,523)
Benefit for income taxes— — — 
Net income (loss)$51,482 $113,649 $(9,523)
SCHEDULE 1-Evoqua Water Technologies Corp.
Condensed Statements of Changes in Cash Flows
(Parent company only)
(In thousands)
Year Ended September 30,
202120202019
Operating activities
Net income (loss)$51,482 $113,649 $(9,523)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Net (income) loss of subsidiaries(52,981)(114,109)9,293 
Foreign currency exchange gains on intercompany loans— (15)— 
Changes in assets and liabilities
Due from affiliates(11,638)5,842 — 
Due to affiliates— (9,747)1,343 
Accrued expenses— 160 — 
Prepaids and other current assets(36)(24)(161)
Net cash (used in) provided by operating activities$(13,173)$(4,244)$952 
Investing activities
Contributed capital$— $— $— 
Net cash used in investing activities$— $— $— 
Financing activities
Proceeds from issuance of common stock$21,205 $18,927 $363 
Taxes paid related to net share settlements of share-based compensation awards(1,323)(9,832)(1,270)
Net cash provided by (used in) financing activities$19,882 $9,095 $(907)
Change in cash and cash equivalents$6,709 $4,851 $45 
Cash and cash equivalents
Beginning of period4,972 121 76 
End of period$11,681 $4,972 $121 
SCHEDULE I-Evoqua Water Technologies Corp.
(Parent company only)
Notes to Financial Statements
(In thousands)
1. Basis of Presentation
Basis of Presentation
In the parent‑company‑only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries. The Company’s share of net income (loss) of its consolidated subsidiaries is included in consolidated income (loss) using the equity method. The parent‑company‑only financial statements should be read in conjunction with the Company’s consolidated financial statements.
2. Guarantees and Restrictions
On April 1, 2021, EWT Holdings III Corp. (“EWT III”), a subsidiary of the Company, entered into a Credit Agreement (the “2021 Credit Agreement”) among EWT III, as borrower, EWT Holdings II Corp. (“EWT II”), as parent guarantor, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and ING Capital, LLC, as sustainability coordinator. The 2021 Credit Agreement provides for a multi-currency senior secured revolving credit facility in an aggregate principal amount not to exceed the U.S. dollar equivalent of $350,000 (the “2021 Revolving Credit Facility”) and a discounted senior secured term (the “2021 Term Loan”) in the amount of $475,000 (together with the 2021 Revolving Credit Facility, the “Senior Facilities”). The Senior Facilities are guaranteed by EWT II and certain existing and future direct or indirect wholly-owned domestic subsidiaries of EWT III (together with EWT III, collectively, the “Loan Parties”), and collateralized by a first lien on substantially all of the assets of the Loan Parties, with certain exceptions. In connection with entering into the 2021 Credit Agreement, on April 1, 2021, EWT III repaid all outstanding indebtedness under the 2014 Credit Agreement and terminated that facility.
As of September 30, 2021, EWT III had $511,105 collectively of debt outstanding under the Senior Facilities. Under the terms of the credit agreements governing the Company’s senior secured credit facilities, EWT II has guaranteed the payment of all principal and interest. In the event of a default under our senior secured credit facilities, certain of the Company’s subsidiaries will be directly liable to the debt holders. The 2021 Term Loan matures on April 1, 2028. Subject to the terms of the 2021 Credit Agreement, to the extent not previously paid, any amount owed under the 2021 Revolving Credit Facility will become due and payable in full on April 1, 2026. The credit agreements governing the Company’s senior secured credit facilities also include restrictions on the ability of the Company and its subsidiaries to (i) incur additional indebtedness and liens in connection therewith; (ii) pay dividends and make certain other restricted payments; (iii) effect mergers or consolidations; (iv) enter into transactions with affiliates; (v) sell or dispose of property or assets; and (vi) engage in unrelated lines of business.
3. Dividends from Subsidiaries
There were no cash dividends paid to Evoqua Water Technologies Corp. from the Company’s consolidated subsidiaries of each of the periods ended September 30, 2021, 2020 and 2019.