Global Water Resources, Inc. (NASDAQ:GWRS) Q2 2019 Earnings Conference Call August 8, 2019 1:00 PM ET Company Participants Heather Krupa - Vice President & Controller Ron Fleming - President & Chief Executive Officer Mike Liebman - Chief Financial Officer Conference Call Participants Gerry Sweeney - Roth Capital Partners Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources, Inc. 2019 Second Quarter Conference Call. At this time, all participants are i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Co ...

Financial Data and Key Metrics Changes - Revenues increased by 4% to $7.7 million compared to Q1 2018, driven by organic connection growth and acquisitions [12][19] - Net income rose by 102.8% to $649,000 or $0.03 per share, up from $320,000 or $0.02 per share in Q1 2018 [12][23] - Adjusted EBITDA decreased by 6.8% to $3.4 million, impacted by tax reform and higher precipitation [24] Business Line Data and Key Metrics Changes - Total active connections increased by 11.7% to 44,152 as of March 31, 2019, with organic connections up 4.8% [12] - Operating expenses rose by 7.6% to $6.5 million, primarily due to increased operating and maintenance costs related to acquisitions [20][21] Market Data and Key Metrics Changes - Single-family dwelling permits in Maricopa and Pinal counties increased by 13% in 2018, with a forecast of approximately 25,000 permits for 2019 [13][14] - The City of Maricopa saw an 18% increase in permit growth in 2018, indicating a strong market for new homes [14] Company Strategy and Development Direction - The company aims to grow recurring EBITDA through revenue growth, operational efficiencies, and targeted capital improvements [15][16] - Plans to pursue accretive acquisitions to enhance core regional assets and improve industry consolidation [17] Management's Comments on Operating Environment and Future Outlook - Management noted that despite external factors like precipitation and tax reform affecting revenue, connection growth rates remain strong [27] - The company is committed to addressing utility and water resource issues in Arizona and potentially beyond [29] Other Important Information - The company extended its $8 million line of credit until April 30, 2022, previously set to expire in 2020 [25] Q&A Session Summary Question: Impact of precipitation on volumes - Management estimated a reduction of 540 gallons per month in residential usage due to precipitation, translating to a revenue impact of $150,000 to $200,000 [35] Question: Permitting activity in suburban Phoenix - Management indicated that permitting data in the specific area remains down, but overall permitting activity in Metro-Phoenix is stable or accelerating [37][38] Question: Value of FATHOM asset - The FATHOM asset is valued at less than $100,000 on the books, but management believes it holds significant potential value [45][46] Question: Acquisition activity - Management confirmed ongoing discussions with several utilities for potential acquisitions, focusing initially within Arizona [52][55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ C ...

Financial Data and Key Metrics Changes - Revenues for 2018 increased by 13.8% to $35.5 million, up from $31.2 million, primarily driven by $2.5 million recognition of revenue under infrastructure coordination and financing agreements [12][23] - Net income for 2018 was $3.1 million, or $0.15 per share, compared to $4.6 million, or $0.23 per share in 2017 [27] - Adjusted EBITDA for 2018 was $15.6 million, down $755,000 or 4.6% compared to 2017, primarily due to the impact of tax reform and a decrease in Valencia earnout [27][28] Business Line Data and Key Metrics Changes - Active connections grew by 12%, consisting of 5.2% organic growth and acquisition growth [12] - Acquisitions in 2018 included Global Water - Turner Ranches and Global Water - Red Rock Utilities, adding a total of approximately 2,698 connections [13][14] Market Data and Key Metrics Changes - Single-family dwelling permits in Maricopa and Pinal counties increased to 22,437 units, a 13% increase over 2017 [17] - The City of Maricopa saw an 18% increase in permits issued in 2018 compared to 2017, indicating strong growth in the submarket [18] Company Strategy and Development Direction - The company aims to provide safe, reliable, and sustainable service while pursuing acquisitions for consolidation benefits [19][21] - Plans to make further capital improvements and routinely analyze the dividend policy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Maricopa area, citing nearly $10 billion of investment within a 10-mile radius [35] - Despite a slight decline in permits issued in early 2019, the company maintains a growth rate near 4%, which is four times the national average for utility growth [37] Other Important Information - The company completed an equity raise with net proceeds of $14.6 million to fund acquisitions and working capital [15] - A two-year revolving line of credit of up to $8 million was secured to support growth initiatives, which remains unused as of the call date [15] Q&A Session Summary Question: Comments on housing permits and infrastructure work in Maricopa - Management noted that Maricopa County is the fastest growing county in the US, with significant investments in infrastructure and corporate expansions, which supports long-term growth potential [35][36] Question: Future outlook on permit activity - Management remains optimistic about the growth rate despite a slight decline in permits, emphasizing the strong regional investment and infrastructure developments [37]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 001-37756 | | | | Delaware | 90-0632193 | | --- | --- | | (State or other jurisdiction of incorporation or ...