Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 0.2 million or 1.5% compared to Q3 2023, primarily due to non-recurring ICFA revenue in Q3 2023 [22] - Regulated revenue, excluding ICFA revenue, was 0.3 million or 2.2% compared to Q3 2023, driven by organic connection growth [23] - Net income for Q3 2024 was 0.12 per diluted share, compared to 0.11 per diluted share in Q3 2023 [25] - Adjusted EBITDA was 600,000 or 7.2% from Q3 2023 [26] Business Line Data and Key Metrics Changes - Total active service connections increased 4.7% to 63,889 as of September 30, 2024, with a year-to-date growth rate of 4.5% [8] - Year-to-date Q3 2024 permit data showed strong growth in multifamily housing units in the City of Maricopa, with 1,200 units permitted compared to 350 units in the same period in 2023, representing an increase of 281% [13] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 28% increase in building permits issued in the last nine months compared to Q3 2023 [10] - The industrial manufacturing sector in Arizona experienced a record investment of 40.7 billion in 2023, surpassing the previous best year [15] Company Strategy and Development Direction - The company aims to grow through organic connections, new greenfield utilities, acquisitions, and rate cases, focusing on efficiency and consolidation in water management [20] - The company is optimistic about the future potential of its Inland Port Arizona service area and is in discussions for potential projects with several firms [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that high inflation and other cost drivers are impacting earnings growth, but emphasized that 2024 is a test year for their largest utilities [19] - The company remains bullish on future growth due to ongoing demand for housing and industrial projects in Arizona [18] Other Important Information - The company has maintained a compliance record with zero significant compliance events for over seven years [9] - The Tucson acquisition approval application is progressing, with an estimated closing in Q1 2025 [28] Q&A Session Summary Question: Impact of political landscape changes on operations - Management agreed that the political landscape could accelerate reshoring of manufacturing and noted significant economic development investment trends in Arizona [34][35] Question: Buckeye premium for the quarter - The Buckeye premium was approximately 920,000 for the quarter, up 25% from the previous year [40]
Global Water(GWRS) - 2024 Q3 - Earnings Call Transcript