[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financials show revenue growth to $12.5 million, a net income decline, and significant asset and equity increases driven by a stock offering [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) As of March 31, 2025, total assets increased to $443.9 million and shareholders' equity to $77.2 million, driven by utility plant growth, cash, and a stock offering Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Net utility plant | $378,245 | $359,379 | | Cash and cash equivalents | $31,467 | $9,047 | | Total Assets | $443,918 | $405,137 | | **Capitalization and Liabilities** | | | | Total shareholders' equity | $77,216 | $47,604 | | Long-term debt, net | $118,876 | $118,518 | | Total Capitalization and Liabilities | $443,918 | $405,137 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) Q1 2025 total revenue rose 7.3% to $12.5 million, yet operating income slightly decreased and net income fell to $0.59 million, yielding diluted EPS of $0.02 Q1 2025 vs. Q1 2024 Operating Results (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $12,457 | $11,610 | $847 | 7.3% | | Operating Income | $1,255 | $1,267 | ($12) | (0.9)% | | Net Income | $591 | $691 | ($100) | (14.5)% | | Diluted EPS | $0.02 | $0.03 | | | | Dividends declared per share | $0.08 | $0.08 | | | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(unaudited)) Shareholders' equity grew from $47.6 million to $77.2 million by March 31, 2025, primarily from a $30.8 million common stock issuance, partially offset by $1.9 million in dividends - The company issued **3,220,000 shares** of common stock, resulting in a net increase of **$30.8 million** to equity in Q1 2025[18](index=18&type=chunk) - Dividends of **$0.08 per share** were declared, totaling approximately **$1.9 million** for the quarter[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) Q1 2025 cash flows show $7.5 million from operations, $15.2 million used in investing for capital expenditures, and a strong $29.8 million inflow from financing, primarily a stock issuance Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,477 | $8,068 | | Net cash used in investing activities | ($15,216) | ($5,765) | | Net cash provided by financing activities | $29,758 | $15,806 | | **Increase in cash, cash equivalents, and restricted cash** | **$22,019** | **$18,109** | - The primary source of financing cash flow in Q1 2025 was the **$31.0 million** net proceeds from the issuance of common stock[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail key accounting policies and events, including a pending acquisition, regulatory rate case updates, a recent public stock offering, and goodwill reclassification - The company entered an agreement to acquire seven public water systems from the City of Tucson for **$8.4 million**, adding approximately **2,200 water service connections**. The acquisition is expected to close in mid-2025[27](index=27&type=chunk) - The ACC approved a **$1.1 million** annual revenue increase for the GW-Farmers utility, to be phased in starting May 1, 2025. A related **$3.0 million** acquisition premium was deferred for recovery in a future rate case[28](index=28&type=chunk)[42](index=42&type=chunk) - In March 2025, the company filed a new general rate case for its GW-Santa Cruz and GW-Palo Verde utilities[29](index=29&type=chunk) - A public offering of **3,220,000 shares** of common stock was completed on March 27, 2025, generating net proceeds of approximately **$30.8 million**[43](index=43&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting revenue growth, net income decline due to higher costs, and strategic initiatives like acquisitions, rate cases, and a successful equity raise [Overview and Business Outlook](index=20&type=section&id=Overview%20and%20Business%20Outlook) The company, a water resource management firm, maintains a positive business outlook in Arizona, driven by strong population and economic growth in the Phoenix MSA - The company's strategy is centered on "Total Water Management," a comprehensive approach involving water reuse, regional planning, and advanced technology[70](index=70&type=chunk) - The Phoenix MSA, a key market, is the **10th largest in the U.S.** and is expected to see continued population growth, reaching **5.8 million by 2030**[71](index=71&type=chunk) - Job growth in the Phoenix MSA is forecasted at **2.2% for 2025**, outpacing national gains, with major investments from companies like Taiwan Semiconductor and Intel[73](index=73&type=chunk)[74](index=74&type=chunk) [Factors Affecting our Results of Operations](index=22&type=section&id=Factors%20Affecting%20our%20Results%20of%20Operations) Company results are influenced by population growth, regulation, infrastructure investment, and costs, with active connections up 4.3% and significant investments in acquisitions and infrastructure - Active service connections increased by **4.3% organically** to **65,163** as of March 31, 2025, compared to the prior year[81](index=81&type=chunk) - A pending acquisition from the City of Tucson is expected to add approximately **2,200 water service connections**[84](index=84&type=chunk) - The EPA's new regulations on PFAS will require increased capital expenditures and operating costs, which the company generally expects to recover through rates, subject to regulatory lag[89](index=89&type=chunk) - The estimated rate base as of December 31, 2024, was **$212.5 million**, an **82% increase** from the rate base in the 2019 general rate case, reflecting significant infrastructure investment[95](index=95&type=chunk) [Rate Regulation Updates](index=28&type=section&id=Rate%20Regulation%20Updates) The company actively manages regulatory filings, with GW-Santa Cruz and GW-Palo Verde filing a rate case for a $6.5 million revenue increase and Formula Rates, following a $1.1 million increase approval for GW-Farmers - On March 5, 2025, the company filed a general rate case for its GW-Santa Cruz and GW-Palo Verde utilities, requesting a **$6.5 million** net annual revenue increase and proposing the use of Formula Rates[103](index=103&type=chunk) Recent Approved Rate Cases (in millions) | Company | Approved Incremental Annual Revenue ($) | ACC Decision | Rates Effective | | :--- | :--- | :--- | :--- | | GW-Saguaro | 0.4 | 79383 | July 01, 2024 | | GW-Farmers | 1.1 | 80695 | May 01, 2025 | [Comparison of Results of Operations for the Three Months Ended March 31, 2025 and 2024](index=29&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031,%202025%20and%202024) Q1 2025 total revenue increased 7.3% to $12.5 million, driven by connection growth and consumption, but operating expenses rose 8.3% to $11.2 million, leading to a 14.5% net income decrease to $0.6 million Q1 2025 vs. Q1 2024 Financial Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $12,457 | $11,610 | $847 | 7.3% | | Operating expenses | $11,202 | $10,343 | ($859) | (8.3)% | | Operating income | $1,255 | $1,267 | ($12) | (0.9)% | | Net income | $591 | $691 | ($100) | (14.5)% | - Revenue growth was driven by a **4.3% increase** in total active connections and a **24.2% increase** in water consumption, particularly from irrigation, construction, and commercial customers[110](index=110&type=chunk)[111](index=111&type=chunk) - Operating expenses increased primarily due to a **$0.24 million (30.5%)** rise in utilities, chemicals, and repairs, and a **$0.39 million (13.4%)** increase in depreciation and amortization from a larger asset base[112](index=112&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by operations, debt, and equity, with Q1 2025 seeing a $30.8 million stock offering and an increased $20.0 million revolving credit facility, ensuring sufficient capital for future needs - In March 2025, a public offering of common stock generated approximately **$30.8 million** in net proceeds[120](index=120&type=chunk) - The revolving credit facility with Northern Trust was amended in April 2025 to increase the borrowing capacity from **$15.0 million to $20.0 million** and extend the maturity to May 2027. No amount was outstanding as of March 31, 2025[124](index=124&type=chunk) - Cash used in investing activities increased to **$15.2 million** in Q1 2025 from **$5.8 million** in Q1 2024, reflecting an increase in capital expenditures[131](index=131&type=chunk) - The company was in compliance with all financial debt covenants as of March 31, 2025[136](index=136&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company is a smaller reporting company - Not applicable[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes in the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[139](index=139&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[140](index=140&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings that are expected to have a material effect on its financial condition or operations - The company is not currently involved in any legal proceeding expected to have a material effect on the company[141](index=141&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the 2024 Form 10-K[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell any unregistered securities during the first quarter of 2025. It did purchase 725 shares of its common stock, which were shares withheld from employees to satisfy tax obligations related to the vesting of restricted stock awards - No unregistered securities were sold during the three months ended March 31, 2025[143](index=143&type=chunk) - The company withheld **725 shares** from employees at an average price of **$11.35 per share** to satisfy tax obligations on vested restricted stock awards[146](index=146&type=chunk) [Item 5. Other Information](index=35&type=section&id=ITEM%205.%20Other%20Information) During the first quarter of 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter[149](index=149&type=chunk) [Item 6. Exhibits](index=36&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the report, including corporate governance documents, a recent loan modification agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed include the Sixth Modification Agreement to the Northern Trust loan, CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL documents[150](index=150&type=chunk)

[Report Overview](index=1&type=section&id=Report%20Overview) [Q1 2025 Highlights](index=1&type=section&id=Q1%202025%20Highlights) In the first quarter of 2025, Global Water Resources saw a 7.3% increase in total revenue to $12.5 million, driven by organic growth and higher consumption, while net income declined by 14.5% to $0.6 million Q1 2025 Key Financial & Operational Metrics | Metric | Q1 2025 Value | Change vs. Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $12.5 million | ▲ 7.3% | | Net Income | $0.6 million | ▼ 14.5% | | Adjusted EBITDA | $5.6 million | ▲ 4.4% | | Active Service Connections | 65,163 | ▲ 4.3% | | Water Consumption | 0.84 billion gallons | ▲ 24.2% | | Cash and Cash Equivalents | $31.5 million | ▲ from $9.0M at YE 2024 | - The company invested **$15.2 million** in infrastructure projects to support existing utilities and future growth[5](index=5&type=chunk) - Filed general rate case applications for two utilities, requesting a net annual revenue increase of **$6.5 million**[5](index=5&type=chunk)[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes the 7.3% top-line growth to increased active connections and consumption, highlighting progress on rate cases and a strengthened capital position of approximately $51.5 million for growth opportunities, including the pending acquisition of seven water systems - CEO Ron Fleming credited revenue growth to organic increases in active connections and higher consumption, expressing confidence in future growth through rate increases[4](index=4&type=chunk) - The company filed rate cases for GW-Santa Cruz and GW-Palo Verde, requesting a **$6.5 million** net revenue increase, and received approval for the GW-Farmers case, which will add approximately **$1.1 million** in annual revenue once phased in[6](index=6&type=chunk)[7](index=7&type=chunk) - CFO Mike Liebman noted that a **$30.8 million** stock offering and an expanded **$20 million** credit facility have positioned the company with approximately **$51.5 million** in capital resources for growth opportunities[9](index=9&type=chunk)[10](index=10&type=chunk) - The acquisition of seven water systems from the City of Tucson is expected to close in mid-2025, adding approximately **2,200** water service connections[10](index=10&type=chunk) [Subsequent Events](index=1&type=section&id=Subsequent%20Events) Following Q1, the Arizona Corporation Commission (ACC) approved the GW-Farmers rate case, expected to increase annual revenue by about $1.1 million, and the company extended its revolving credit facility's maturity and increased borrowing capacity - On April 22, 2025, the ACC approved the GW-Farmers rate case, with new rates expected to generate an approximate **$1.1 million** increase in annual revenue, implemented in three stages starting May 1, 2025[5](index=5&type=chunk) - The company extended the maturity of its revolving credit facility to May 18, 2027, and increased the available principal from **$15 million** to **$20 million**[5](index=5&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Financial Summary](index=3&type=section&id=Financial%20Summary) For Q1 2025, total revenues increased 7.3% to $12.5 million, while operating expenses grew 8.3% to $11.2 million, leading to a 14.5% decrease in net income to $0.6 million, though Adjusted EBITDA showed a 4.4% increase to $5.6 million [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Total regulated revenue for Q1 2025 increased by 7.3% to $12.5 million compared to the prior year, primarily driven by a 14.4% increase in water service revenue from organic connection growth, higher consumption, and new rates Revenue Breakdown (Three Months Ended March 31) | Revenue Source | 2025 ($ thousands) | 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Water service | 5,980 | 5,226 | ▲ 14.4% | | Wastewater and recycled water service | 6,477 | 6,384 | ▲ 1.5% | | **Total revenue** | **12,457** | **11,610** | **▲ 7.3%** | - The revenue increase was attributed to organic growth in active connections, increased water consumption (from irrigation, construction, and commercial customers), and higher rates from the GW-Saguaro general rate case effective July 2024[14](index=14&type=chunk) [Operating Expenses Analysis](index=3&type=section&id=Operating%20Expenses%20Analysis) Total operating expenses rose by 8.3% to $11.2 million, mainly due to a 12.3% rise in operations and maintenance costs from higher chemical and power usage, and a 13.4% increase in depreciation and amortization from an expanded asset base Operating Expenses Breakdown (Three Months Ended March 31) | Expense Category | 2025 ($ thousands) | 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Operations and maintenance | 3,687 | 3,284 | ▲ 12.3% | | General and administrative | 4,187 | 4,125 | ▲ 1.5% | | Depreciation and amortization | 3,328 | 2,934 | ▲ 13.4% | | **Total operating expenses** | **11,202** | **10,343** | **▲ 8.3%** | - Higher O&M costs were due to increased chemical and power purchases from higher consumption, as well as new IT and labor service contracts[16](index=16&type=chunk) - The increase in depreciation and amortization was attributable to a larger base of depreciable fixed assets and new vehicle and office leases[18](index=18&type=chunk) [Other Expense](index=4&type=section&id=Other%20Expense) Other expense increased to $0.5 million in Q1 2025 from $0.3 million in Q1 2024, primarily due to a $0.2 million reduction in income from Buckeye growth premiums because of fewer new meter connections - The increase in other expense was mainly caused by a **$0.2 million** decrease in income from Buckeye growth premiums and a **$0.1 million** increase in net interest expense[19](index=19&type=chunk) [Net Income and Adjusted EBITDA](index=4&type=section&id=Net%20Income%20and%20Adjusted%20EBITDA) Net income for Q1 2025 decreased by 14.5% to $0.6 million, or $0.02 per share, while Adjusted EBITDA, a non-GAAP measure, increased by 4.4% to $5.6 million Profitability Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Income | $0.6 million | $0.7 million | ▼ 14.5% | | EPS (Diluted) | $0.02 | $0.03 | ▼ 33.3% | | Adjusted EBITDA | $5.6 million | $5.4 million | ▲ 4.4% | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position as of March 31, 2025, and its performance for the first quarter, showing a significant increase in cash and shareholders' equity due to a stock offering, alongside revenue growth offset by higher expenses [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $443.9 million, up from $405.1 million at year-end 2024, driven by a rise in cash and cash equivalents to $31.5 million following a stock offering, and growth in net utility plant, with total shareholders' equity increasing substantially to $77.2 million Selected Balance Sheet Data (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $31,467 | $9,047 | | Net utility plant | $378,245 | $359,379 | | **Total Assets** | **$443,918** | **$405,137** | | Long-term debt, net | $118,876 | $118,518 | | Total shareholders' equity | $77,216 | $47,604 | | **Total Capitalization and Liabilities** | **$443,918** | **$405,137** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, the company generated $12.5 million in revenue, a 7.3% increase year-over-year, but due to an 8.3% rise in operating expenses and higher other expenses, operating income slightly decreased to $1.255 million, and net income fell to $0.591 million Statement of Operations Summary (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $12,457 | $11,610 | | Total operating expenses | $11,202 | $10,343 | | Operating Income | $1,255 | $1,267 | | **Net Income** | **$591** | **$691** | | Diluted EPS | $0.02 | $0.03 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash from operating activities was $7.5 million, with $15.2 million used in investing activities, and a positive $29.8 million from financing activities, largely due to a common stock issuance, resulting in a significant increase in total cash to $33.2 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,477 | $8,068 | | Net cash used in investing activities | ($15,216) | ($5,765) | | Net cash provided by financing activities | $29,758 | $15,806 | | **Increase in cash, cash equivalents, and restricted cash** | **$22,019** | **$18,109** | - Financing activities were primarily driven by the issuance of common stock, which provided net proceeds of **$31,041 thousand**[44](index=44&type=chunk) [Business Strategy and Outlook](index=4&type=section&id=Business%20Strategy%20and%20Outlook) [Business Strategy](index=4&type=section&id=Business%20Strategy) The company's near-term growth strategy focuses on increasing service connections, enhancing operational efficiencies, and securing rate increases from the ACC, with a core component being the continued aggregation of water and wastewater utilities through acquisitions to implement its regional "Total Water Management" approach - The company's strategy involves three main pillars: - Increasing service connections - Improving operating efficiencies - Increasing utility rates as approved by the ACC[23](index=23&type=chunk) - A key strategic focus is the acquisition and consolidation of water and wastewater utilities to realize benefits of regionalization and environmental stewardship[23](index=23&type=chunk) [Growth Drivers](index=4&type=section&id=Growth%20Drivers) Organic growth remains strong, with a 4.3% year-over-year increase in active service connections to 65,163, supported by positive population and economic trends in Arizona's "Sun Corridor," including projected job additions and a strong housing market - Active service connections increased by **4.3%** to **65,163** as of March 31, 2025, compared to the prior year, driven by organic growth[24](index=24&type=chunk) - The Phoenix metropolitan area's population is projected to grow to **5.8 million** by 2030, supported by a diverse employment base and low taxes[25](index=25&type=chunk) - Despite a Q1 pullback, single-family permits in the Greater Phoenix area are projected to remain strong at **27,333** for 2025, supporting future connection growth[11](index=11&type=chunk) [Shareholder Information](index=4&type=section&id=Shareholder%20Information) [Dividend Policy](index=4&type=section&id=Dividend%20Policy) The company has declared a monthly cash dividend of $0.02533 per common share, corresponding to an annualized dividend of $0.30396 per share - A monthly cash dividend of **$0.02533** per common share was declared, payable on May 30, 2025, to holders of record on May 16, 2025[22](index=22&type=chunk) - The annualized dividend rate is **$0.30396** per common share[22](index=22&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Global Water Resources will host a conference call on Thursday, May 15, 2025, at 1:00 p.m. Eastern time to discuss the first quarter 2025 financial results, with a webcast and replay available Conference Call Details | Item | Detail | | :--- | :--- | | Date | Thursday, May 15, 2025 | | Time | 1:00 p.m. Eastern time | | Toll-free dial-in | 1-833-816-1435 | | International dial-in | 1-412-317-0527 | | Conference ID | 10199311 | [Appendices](index=5&type=section&id=Appendices) [About Global Water Resources](index=5&type=section&id=About%20Global%20Water%20Resources) Global Water Resources, Inc. is a water resource management company that owns and operates 32 water, wastewater, and recycled water systems, primarily in growth areas near Phoenix and Tucson, recognized for its "Total Water Management" (TWM) approach, recycling over 1 billion gallons of water annually - The company operates **32** systems providing water, wastewater, and recycled water services in Arizona[29](index=29&type=chunk) - It utilizes an integrated "Total Water Management" (TWM) approach to manage the entire water cycle and maximize the use of recycled water[30](index=30&type=chunk) [Use of Non-GAAP Measures](index=5&type=section&id=Use%20of%20Non-GAAP%20Measures) This report includes the non-GAAP financial measures EBITDA and Adjusted EBITDA, which management defines and presents as useful supplemental indicators of operating performance, while cautioning against their use as alternatives to GAAP measures - The report uses non-GAAP measures EBITDA and Adjusted EBITDA[33](index=33&type=chunk) - Adjusted EBITDA is defined as EBITDA excluding non-recurring events, restricted stock expense, and gain/loss on disposal of assets[33](index=33&type=chunk) - Management cautions that its calculation of these measures may differ from other companies and should not be used as an alternative to GAAP measures like net income[34](index=34&type=chunk) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) A reconciliation is provided to bridge the GAAP measure of Net Income to the non-GAAP measures of EBITDA and Adjusted EBITDA, showing that for Q1 2025, Net Income of $0.591 million reconciles to an Adjusted EBITDA of $5.643 million Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $591 | $691 | | Adjustments (Taxes, Interest, D&A) | +$4,890 | +$4,512 | | **EBITDA** | **$5,481** | **$5,203** | | EBITDA adjustments (Stock expense, etc.) | +$162 | +$200 | | **Adjusted EBITDA** | **$5,643** | **$5,403** | [Cautionary Note Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future events and performance, based on current expectations and subject to significant risks and uncertainties, with investors cautioned to consult SEC filings for a comprehensive discussion of risk factors - The report contains forward-looking statements concerning strategies, future performance, growth, rate case outcomes, and acquisitions[36](index=36&type=chunk) - Actual results may differ materially from these statements due to a number of risks, uncertainties, and other factors[36](index=36&type=chunk) - Investors are advised to consult the "Risk Factors" section of the company's SEC filings (Form 10-K and 10-Q) for a full disclosure of potential risks[36](index=36&type=chunk)

Core Viewpoint - Global Water Resources, Inc. reported a 7.3% increase in total revenue for Q1 2025, driven by organic growth in active water and wastewater connections and increased consumption, despite a 14.5% decrease in net income [7][21]. Financial Highlights - Total revenue for Q1 2025 reached $12.5 million, up from $11.6 million in Q1 2024 [7][15]. - Net income decreased to $0.6 million or $0.02 per share, down from $0.7 million or $0.03 per share in the same period last year [21]. - Adjusted EBITDA increased by 4.4% to $5.6 million compared to $5.4 million in Q1 2024 [22]. - Cash and cash equivalents rose significantly to $31.5 million from $9.0 million at the end of 2024 [7]. - The company raised net proceeds of $30.8 million from a public offering of common stock [10]. Operational Highlights - Active service connections increased by 4.3% to 65,163 as of March 31, 2025 [25]. - Water consumption surged by 24.2% to 0.84 billion gallons [7]. - The company invested $15.2 million in infrastructure projects to support existing utilities and growth [7]. Rate Case Applications - In March 2025, the company filed general rate case applications for GW-Santa Cruz and GW-Palo Verde utilities, seeking a net revenue increase of approximately $6.5 million [6][8]. - The Arizona Corporation Commission approved a rate case for GW-Farmers, expected to generate an additional $1.1 million in annual revenue [7][8]. Business Strategy - The company aims to enhance service connections, improve operational efficiencies, and increase utility rates as approved by the Arizona Corporation Commission [24]. - Plans include acquiring seven water systems from the City of Tucson, which would add approximately 2,200 water service connections [11]. Market Outlook - Arizona's economic outlook remains strong, with projections of adding 478,000 jobs by 2032, supporting continued growth in active service connections [13]. - The Phoenix metropolitan area is expected to grow significantly, with a population forecast of 5.8 million by 2030 [26]. Dividend Policy - The company declared a monthly cash dividend of $0.02533 per common share, equating to an annualized rate of $0.30396 [23]. Management Commentary - The CEO expressed confidence in maintaining solid revenue growth through appropriate rate increases and organic growth, supporting potential net income growth [5]. - The CFO highlighted the strengthening of capital resources to fund growth opportunities [10].

Core Viewpoint - Global Water Resources, Inc. has received approval for new water rates for its GW-Farmers utility, expected to increase annual revenue by approximately $1.1 million based on 2023 service connections [1][2]. Rate Increase Details - The rate increase will be implemented in three stages: 50% on May 1, 2025, 25% on November 1, 2025, and the remaining 25% on May 1, 2026 [2]. - The Arizona Corporation Commission also approved a deferral of the recovery of an acquisition premium of approximately $3 million related to the acquisition of GW-Farmers, which will be addressed in a future rate case [2]. Company Operations and Community Impact - The additional revenue from the new rates will support improvements at GW-Farmers, benefiting customers and the Sahuarita community [3]. - GW-Farmers serves the Town of Sahuarita and surrounding unincorporated areas, covering approximately 21.0 square miles with 3,494 active water connections as of the end of 2024 [4]. Company Overview - Global Water Resources operates 32 systems providing water, wastewater, and recycled water services, primarily in growth corridors around metropolitan Phoenix and Tucson [5]. - The company recycles over 1 billion gallons of water annually, totaling 17.7 billion gallons since 2004 [5]. Total Water Management Approach - The company employs Total Water Management (TWM), an integrated approach to managing the entire water cycle, enhancing the beneficial use of recycled water and promoting conservation [6]. - TWM includes advanced technologies and smart water management programs, crucial for water-scarce areas experiencing population growth [6]. Industry Recognition - Global Water has received multiple awards, including national recognition as a 'Utility of the Future Today' for its water reuse practices [7]. - The company was also awarded Cityworks' Excellence in Departmental Practice Award for its leadership in public asset management strategies [7].

Core Viewpoint - Global Water Resources, Inc. will hold a conference call on May 15, 2025, to discuss its first-quarter financial results for the period ending March 31, 2025 [1] Company Overview - Global Water Resources, Inc. is a leading water resource management company that operates 32 systems providing water, wastewater, and recycled water services, primarily in growth corridors around metropolitan Phoenix and Tucson [3] - The company recycles over 1 billion gallons of water annually, totaling 17.7 billion gallons recycled since 2004 [3] Total Water Management (TWM) - The company has effectively implemented Total Water Management (TWM), an integrated approach to managing the entire water cycle, which maximizes the beneficial use of recycled water [4] - TWM enables smart water management programs, including remote metering infrastructure and advanced technologies, leading to real conservation and protection of water supplies in water-scarce areas [4] Industry Recognition - Global Water has received numerous awards, including national recognition as a 'Utility of the Future Today' for its superior water reuse practices [5] - The company also received the Excellence in Departmental Practice Award from Cityworks for demonstrating leadership in public asset management strategies [5]

PHOENIX, March 27, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure- play water resource management company, today announced that it completed a public offering of 3,220,000 shares of its common stock at a previously disclosed price of $10.00 per share, which includes 420,000 shares issued and sold to the underwriters who exercised in full the option to purchase additional shares of common stock. Certain existing stockholders, including certain directors and/or their affiliates, ...

PHOENIX, March 26, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ:GWRS), a pure-play water resource management company, today announced the pricing of an underwritten public offering of 2,800,000 shares of its common stock at a price to the public of $10.00 per share. Certain existing stockholders, including certain directors and/or their affiliates, have agreed to purchase an aggregate of 1,439,200 shares of our common stock in the offering. All of the shares are being sold by the company. T ...

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].

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 ...