Financial Data and Key Metrics Changes - Total revenue for 2024 was $52.7 million, down 0.6% compared to 2023, primarily due to non-recurring revenue from Infra agreements in 2023 [29][30] - Regulated revenue, excluding Infra revenue, increased by $2.5 million or 4.9% to $52.7 million in 2024 [30] - Net income for 2024 was $5.8 million or $0.24 per diluted share, compared to $8 million or $0.33 per diluted share in 2023 [33] - Adjusted EBITDA increased by $1.3 million or 5.2% to $26.7 million in 2024 [34] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.4% to 64,520 as of December 30, 2024 [11] - Operating expenses for 2024 were $43.3 million, an increase of approximately $2.6 million or 6.3% compared to 2023 [31] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 20.3% increase in building permits from 22,582 in 2023 to 27,156 in 2024 [13] - Multifamily housing unit permits in the city of Maricopa increased by 88.7% from 636 units in 2023 to 1,200 units in 2024 [16] Company Strategy and Development Direction - The company is focused on expanding its total water management platform and applying expertise to new utilities, aiming for efficiency and consolidation [48] - A significant rate case filing was made for the Santa Cruz Water Company and Palo Verde Utilities Company, with proposed rate increases totaling approximately $7.5 million [25][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of high inflation and other cost drivers on earnings growth, emphasizing the need for new rates to address cost increases and investments made since 2019 [24][41] - The company remains optimistic about future growth driven by organic connections, new utilities, acquisitions, and rate cases [26] Other Important Information - The company had zero significant compliance events in 2024, maintaining a strong compliance record for nearly eight years [12] - A record number of multifamily projects are in development, driven by economic growth and net migration in Arizona [17] Q&A Session Summary Question: Details on the CSA or formula rates - Management explained that the CSA proposal allows for annual updates to rates based on changes in expenses and investments, aiming to reduce regulatory lag and increase transparency for customers [55][59] Question: Impact of Procter and Gamble's notice to proceed - Management clarified that the notice to proceed initiates detailed design and permitting for infrastructure, with a typical two to three-year timeline for project execution [62]
Global Water(GWRS) - 2024 Q4 - Earnings Call Transcript