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Global Water Resources Reports Full Year 2024 Results
GWRSGlobal Water(GWRS) Newsfilter·2025-03-05 23:20

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 52.7million,drivenbyorganicgrowthinactivewaterandwastewaterconnectionsandincreasedconsumption[5][16].−Totalrevenuedecreasedby0.652.7 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 2.8milliondeclineinunregulatedrevenuefrominfrastructurecoordinationandfinancingagreementsthatdidnotrecurin2024[5][16].−Netincomefellby27.52.8 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 0.24pershare,comparedto0.24 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 6.3million,or6.3 million, or 0.26 per share, consistent with the previous year [5][26]. - Adjusted EBITDA increased by 5.2% to 26.7million[5][27].−Cashandcashequivalentstotaled26.7 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 32.3millionininfrastructureprojectstosupportexistingutilitiesandfuturegrowth[5].−AsettlementagreementrelatedtotheGW−Farmersgeneralratecaseapplicationcouldprovideanadditional32.3 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].