Global Water(US:GWRS)2019-03-07 23:37Financial 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]