PHOENIX, March 25, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, today announced that it has commenced an underwritten public offering of shares of its common stock. All of the shares are being offered by the company. In addition, the company expects to grant the underwriters for the offering a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the offering at the public offering price, less underw ...

Core Viewpoint - Global Water Resources, Inc. has filed a general rate case application seeking a net increase of $6.5 million in annual revenue to support infrastructure investments for its utilities in Pinal County, Arizona [1][3]. Group 1: Rate Case Application - The application is related to Global Water – Santa Cruz Water Company and Global Water – Palo Verde Utilities Company, which collectively serve 57,842 active service connections across 207 square miles, representing approximately 89.6% of the company's total active service connections [2]. - If approved, the proposed rate increases would lead to an approximate 11% increase in the total median monthly aggregate billing for customers of GW-Santa Cruz and GW-Palo Verde [3]. Group 2: Infrastructure Investments - The rate case is based on the test year ending December 31, 2024, and includes planned infrastructure investments for 2025 [3]. - The company proposes to phase in the new rates over two years, with the first phase starting in May 2026 and the second phase in January 2027 [4]. Group 3: Regulatory Tools - A new regulatory tool has been proposed to allow for annual updates of costs and investments in a smaller, more gradual manner if approved [4]. Group 4: Company Overview - Global Water Resources operates 32 systems providing water, wastewater, and recycled water services, primarily in growth corridors around metropolitan Phoenix [5]. - The company recycles over 1 billion gallons of water annually, totaling 17.4 billion gallons since 2004 [5]. Group 5: Total Water Management - The company has been recognized for its effective implementation of Total Water Management (TWM), which integrates the management of the entire water cycle to maximize the beneficial use of recycled water [6]. - TWM enables smart water management programs and helps protect water supplies in areas experiencing population growth [6]. Group 6: Industry Recognition - Global Water has received numerous awards, including national recognition as a 'Utility of the Future Today' for its superior water reuse practices [7].

Financial Data and Key Metrics Changes - Total revenue for 2024 was $52.7 million, down 0.6% compared to 2023, primarily due to non-recurring revenue from Infra agreements in 2023 [29][30] - Regulated revenue, excluding Infra revenue, increased by $2.5 million or 4.9% to $52.7 million in 2024 [30] - Net income for 2024 was $5.8 million or $0.24 per diluted share, compared to $8 million or $0.33 per diluted share in 2023 [33] - Adjusted EBITDA increased by $1.3 million or 5.2% to $26.7 million in 2024 [34] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.4% to 64,520 as of December 30, 2024 [11] - Operating expenses for 2024 were $43.3 million, an increase of approximately $2.6 million or 6.3% compared to 2023 [31] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 20.3% increase in building permits from 22,582 in 2023 to 27,156 in 2024 [13] - Multifamily housing unit permits in the city of Maricopa increased by 88.7% from 636 units in 2023 to 1,200 units in 2024 [16] Company Strategy and Development Direction - The company is focused on expanding its total water management platform and applying expertise to new utilities, aiming for efficiency and consolidation [48] - A significant rate case filing was made for the Santa Cruz Water Company and Palo Verde Utilities Company, with proposed rate increases totaling approximately $7.5 million [25][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of high inflation and other cost drivers on earnings growth, emphasizing the need for new rates to address cost increases and investments made since 2019 [24][41] - The company remains optimistic about future growth driven by organic connections, new utilities, acquisitions, and rate cases [26] Other Important Information - The company had zero significant compliance events in 2024, maintaining a strong compliance record for nearly eight years [12] - A record number of multifamily projects are in development, driven by economic growth and net migration in Arizona [17] Q&A Session Summary Question: Details on the CSA or formula rates - Management explained that the CSA proposal allows for annual updates to rates based on changes in expenses and investments, aiming to reduce regulatory lag and increase transparency for customers [55][59] Question: Impact of Procter and Gamble's notice to proceed - Management clarified that the notice to proceed initiates detailed design and permitting for infrastructure, with a typical two to three-year timeline for project execution [62]

Core Viewpoint - Global Water Resources, Inc. held its 2024 Year-End Conference Call on March 6, 2025, to discuss financial results and operational highlights for the year [1][3]. Group 1: Company Overview - The conference call featured key executives including Ron Fleming (President and CEO), Mike Liebman (CFO), and Chris Krygier (COO) [3][4]. - The company released its 2024 year-end financial results via press release, which is accessible on its website [3]. Group 2: Operational and Financial Highlights - Ron Fleming will summarize key operational events of the year, while Mike Liebman will review the financial results for year-end [4]. - Chris Krygier will discuss strategic initiatives and activities related to the Arizona Corporation Commission [4].

Global Water Resources, Inc. (NASDAQ:GWRS) Q4 2024 Earnings Conference Call March 6, 2025 1:00 PM ET Company Participants Joanne Ellsworth - Executive Vice President, Corporate Affairs Ron Fleming - President and Chief Executive Officer Mike Liebman - Chief Financial Officer Chris Krygier - Chief Operating Officer Conference Call Participants Gerry Sweeney - ROTH Capital Operator Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources, Inc. 2024 year-end conference ...

Global Water Resources, Inc. (GWRS) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.12, delivering a surprise of 9.09%.Over the last four quarters, ...

Revenue Performance - Regulated revenue increased by 4.9% to $52.7 million, driven by organic connection growth[5] - Total revenue decreased by 0.6% to $52.7 million, primarily due to a $2.8 million decline in unregulated revenue from infrastructure coordination and financing agreements[5] - Total revenue for 2024 was $52.692 million, a slight decrease of 0.6% from $53.028 million in 2023[52] - Water service revenue increased to $26.064 million, up from $24.860 million, representing a growth of 4.8%[52] - Wastewater and recycled water service revenue rose to $26.628 million, compared to $25.382 million, marking a growth of 4.9%[52] Income and Earnings - Net income decreased by 27.5% to $5.8 million, or $0.24 per share, compared to $0.33 per share in 2023[26] - Adjusted net income increased by 2.0% to $6.3 million, or $0.26 per share, consistent with the previous year[27] - Operating income decreased to $9.364 million in 2024 from $12.286 million in 2023, a decline of 23.5%[52] - Net income for 2024 was $5.789 million, down from $7.982 million in 2023, reflecting a decrease of 27.5%[52] - Basic and diluted earnings per share for 2024 were both $0.24, compared to $0.33 in 2023[52] - Diluted earnings per share decreased to $0.24 in 2024 from $0.33 in 2023, a decline of approximately 27.3%[58] Cash Flow and Expenditures - Total cash, cash equivalents, and restricted cash rose to $11,156 million at the end of 2024, up from $4,763 million at the end of 2023[57] - Net cash provided by operating activities decreased to $21,785 million in 2024 from $25,393 million in 2023, a decline of about 14.3%[55] - Capital expenditures increased significantly to $32,324 million in 2024, compared to $22,312 million in 2023, an increase of approximately 45.0%[55] - The company paid dividends of $7,298 million in 2024, compared to $7,185 million in 2023, reflecting a slight increase of about 1.6%[55] - The company reported a net cash provided by financing activities of $17,086 million in 2024, a significant increase from $406 million in 2023[55] Growth and Investments - Total active service connections increased by 4.4% to 64,520 as of December 31, 2024[31] - Water consumption increased by 3.3% to 4.16 billion gallons in 2024[5] - The company invested $32.3 million in infrastructure projects to support existing utilities and growth[5] - A proposed settlement agreement could provide an additional $1.1 million in annual revenue, pending approval[5] - The company anticipates a 6.8% increase in single-family housing permits in the Phoenix metropolitan area for 2025[16] - Global Water is positioned to benefit from job growth in Arizona, projected to add 478,000 jobs with an annual growth rate of 1.4% through 2032[36] Debt and Assets - Total assets increased to $405.137 million as of December 31, 2024, up from $361.095 million in 2023, a growth of 12.2%[51] - Long-term debt increased to $118.518 million in 2024 from $101.341 million in 2023, an increase of 16.9%[51] - EBITDA for 2024 was $25,734 million, down from $27,121 million in 2023, reflecting a decrease of about 5.1%[58] - Adjusted EBITDA rose by 5.2% to $26.7 million, compared to $25.3 million in 2023[28] - Adjusted EBITDA increased to $26,653 million in 2024, compared to $25,336 million in 2023, marking an increase of approximately 5.2%[58]

Core Viewpoint - Global Water Resources, Inc. reported a mixed financial performance for the year ended December 31, 2024, with regulated revenue growth but a decline in total revenue and net income, primarily due to the absence of prior year unregulated revenue from infrastructure coordination and financing agreements [4][5][25]. Financial Highlights - Regulated revenue increased by 4.9% to $52.7 million, driven by organic growth in active water and wastewater connections and increased consumption [5][16]. - Total revenue decreased by 0.6% to $52.7 million, impacted by a $2.8 million decline in unregulated revenue from infrastructure coordination and financing agreements that did not recur in 2024 [5][16]. - Net income fell by 27.5% to $5.8 million, or $0.24 per share, compared to $0.33 per share in 2023, primarily due to the lack of ICFA revenue recognized in 2023 [5][25]. - Adjusted net income rose by 2.0% to $6.3 million, or $0.26 per share, consistent with the previous year [5][26]. - Adjusted EBITDA increased by 5.2% to $26.7 million [5][27]. - Cash and cash equivalents totaled $9.0 million at year-end [5]. Operational Highlights - Total active service connections grew by 4.4% to 64,520 as of December 31, 2024 [5][30]. - Water consumption increased by 3.3% to 4.16 billion gallons in 2024 [5]. - The company invested $32.3 million in infrastructure projects to support existing utilities and future growth [5]. - A settlement agreement related to the GW-Farmers general rate case application could provide an additional $1.1 million in annual revenue if approved [5][7]. Management Commentary - The CEO highlighted the company's growth in customer base and regulated revenue despite challenging interest rate conditions, attributing revenue increases to organic growth and scheduled rate increases [4]. - The company is focused on driving organic growth and implementing strategic rate adjustments across its service areas [13][29]. Business Strategy - The near-term growth strategy includes increasing service connections, improving operational efficiencies, and raising utility rates as approved by the Arizona Corporation Commission (ACC) [29]. - The company plans to continue aggregating water and wastewater utilities to realize benefits from consolidation and regionalization [29]. Market Trends - The Phoenix metropolitan area is projected to experience significant population growth, with an estimated increase from 5.1 million in 2020 to 5.8 million by 2030 [32]. - Job growth in Arizona is expected to exceed the national average, contributing to increased demand for water services [34][35].

Service Connections and Revenue - As of December 31, 2024, the total active service connections reached 64,491, with a significant annualized growth of 6.1% from December 2019 to December 2024, adding 13,485 connections[43]. - GW-Santa Cruz and GW-Palo Verde contributed approximately 41.0% and 50.7% of total revenue for the years ended December 31, 2024, respectively[45]. - GW-Belmont served 622 active service connections and has agreements to serve approximately 100,000 anticipated home sites at full build-out[49]. - GW-Saguaro served 1,571 active water connections, while GW-Farmers served 3,494 active connections as of December 31, 2024[52]. - The company anticipates a net increase to its annual revenue requirement of $6.5 million for GW-Santa Cruz and GW-Palo Verde, with the first phase beginning in May 2026 and the second phase in January 2027[70]. - GW-Farmers filed for a unanimous settlement agreement for an increase in annual revenue requirement of $1.1 million, with rates phased in starting May 1, 2025[70]. Regulatory Compliance and Environmental Standards - The company achieved a compliance rate of 99.9% for meeting state and federal drinking water standards in 2024[56]. - The company expects increased capital expenditures for PFAS-contaminated water treatment due to compliance with the new NPDWR regulations[64]. - The company has completed an inventory of its pipes and found no lead pipes, in line with the new Lead and Copper Rule Improvements[65]. - The company is committed to regulatory compliance and has developed cooperative relationships with regulatory agencies to ensure adherence to environmental standards[75]. - Regulatory compliance costs may increase due to new or stricter standards, potentially impacting profitability if rate increases are not approved[103]. - The company may incur significant costs to comply with environmental laws, which could adversely affect its business operations[105]. Financial Performance - Total revenue for the year ended December 31, 2024, was $52,692,000, a decrease of 0.6% from $53,028,000 in 2023[322]. - Net income for 2024 was $5,789,000, down 27.5% from $7,982,000 in 2023[322]. - Operating income decreased to $9,364,000 in 2024 from $12,286,000 in 2023, reflecting a decline of 23.5%[322]. - Total assets increased to $405,137,000 as of December 31, 2024, compared to $361,095,000 in 2023, representing an increase of 12.2%[320]. - Cash and cash equivalents rose significantly to $9,047,000 in 2024 from $3,087,000 in 2023, an increase of 194.5%[328]. - Total current liabilities increased to $22,258,000 in 2024, up from $14,217,000 in 2023, marking a rise of 56.5%[320]. - Long-term debt increased to $118,518,000 in 2024 from $101,341,000 in 2023, an increase of 16.9%[320]. - Capital expenditures for 2024 were $32,324,000, compared to $22,312,000 in 2023, reflecting a 45.0% increase[327]. - Dividends declared per common share remained steady at $0.30 for both 2024 and 2023[322]. Operational Efficiency and Technology - The company employs sophisticated technology including SCADA and automated meter infrastructure to enhance operational efficiency and customer service[90]. - The company focuses on decentralized treatment facilities to optimize efficiency in providing water and wastewater services[91]. - The company intends to increase the use of recycled water to meet future demands, although current infrastructure and permits are limited in most service areas[76]. - The company emphasizes the use of recycled water for non-potable purposes, which is critical for its business strategy[172]. Competition and Market Risks - The company faces competition from other water and wastewater utilities for new service areas and acquisitions, including EPCOR Water Arizona Inc. and Arizona Water Company[93]. - The company relies predominantly on groundwater and recycled water, which may not be sufficient to meet future demands[130]. - The company has not yet obtained material surface water rights, which may limit its ability to support customer growth[131]. - Future acquisitions may not achieve sufficient profitability, posing risks to the company's financial health and operational focus[155][156]. - The company faces competition for new service areas and acquisitions, which could limit revenue growth opportunities[164][165]. Legal and Regulatory Risks - The company is subject to comprehensive regulation by the Arizona Corporation Commission (ACC), which influences its ability to recover costs and set rates[111]. - The company faces risks related to the design, construction, and operation of its systems, which could adversely affect its financial condition[138]. - The company is exposed to various legal risks that could materially adversely affect its operating results[122]. - Changes in utility policy through legislative initiatives in Arizona could impact the company's growth and financial condition[119]. - The company’s financial statements are subject to rate regulation by the Arizona Corporation Commission (ACC), which impacts the rates charged for water and wastewater services[314]. Human Resources - The company employed 122 full-time individuals and 3 part-time employees as of December 31, 2024, representing a 15% increase from the previous year[97]. Customer Demand and Seasonal Variability - Customer demand for water is generally higher during warmer months, influenced by irrigation and outdoor water use, which can affect revenue if temperatures are cooler or rainfall is higher than normal[95]. - Seasonal fluctuations in water demand can adversely affect profitability, with cooler temperatures or excessive rainfall potentially decreasing water usage[154]. Cybersecurity and Technology Risks - The company’s information technology systems are vulnerable to cybersecurity threats, which could materially impact its financial condition[173]. - The company has obtained cyber insurance, but it may not cover all losses or damages from a security breach[174].

Core Insights - Global Water Resources, Inc. has been invited to the 37th Annual ROTH Conference, highlighting its significance in the water resource management sector [1] - The conference will feature presentations and meetings with institutional investors and analysts, indicating strong interest in the company's operations [2] Company Overview - Global Water Resources operates 32 systems providing water, wastewater, and recycled water services, primarily in metropolitan Phoenix growth corridors [6] - The company recycles over 1 billion gallons of water annually, totaling 17.4 billion gallons since 2004, showcasing its commitment to sustainability [6] Market Position and Strategy - The company is recognized for its leadership in utility consolidation, automation, and water resource management, which are key areas of discussion at the conference [3] - Global Water's Total Water Management (TWM) approach integrates water cycle management, enhancing the beneficial use of recycled water and promoting conservation [7][8] Awards and Recognition - Global Water has received multiple industry awards, including recognition as a 'Utility of the Future Today' for its water reuse practices [9] - The company has also been awarded for its excellence in public asset management strategies, reflecting its innovative operational practices [9]