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Global Water Resources Reports First Quarter 2025 Results
Globenewswireยท 2025-05-14 20:45
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].