Global Water(US:GWRS)2025-05-15 18:00Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $12.5 million, an increase of $800,000 or 7.3% compared to Q1 2024, primarily due to a 4.3% increase in active service connections and increased consumption [15] - Operating expenses for Q1 2025 were $11.2 million, up from $10.3 million in Q1 2024, representing an increase of approximately $900,000 or 8.3% [16] - Net income for Q1 2025 was $600,000 or $0.02 per diluted share, compared to $700,000 or $0.03 per diluted share in Q1 2024 [17] - Adjusted EBITDA for Q1 2025 was $5.6 million, an increase of approximately $200,000 or 4.4% compared to Q1 2024 [18] - The company raised $32 million in equity capital in March 2025 and extended its line of credit to May 2027, increasing it from $15 million to $20 million, resulting in over $50 million of liquidity [19] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.3% to 65,163 as of March 31, 2025, compared to the previous year [5] - The company invested $15.2 million year-to-date into infrastructure improvements and existing utilities [6] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 15% decrease in building permits in Q1 2025 compared to Q1 2024, with 6,406 permits issued [7] - The City of Maricopa experienced a 41.5% decrease in single-family building permits in Q1 2025 compared to Q1 2024, with 190 permits issued [7] - Despite the pullback in permit data, the company believes this is temporary due to ongoing housing shortages and strong population growth in Arizona [8] Company Strategy and Development Direction - The company remains bullish on future growth potential in the Inland Port Arizona service area, with significant industrial investments expected [12] - The company plans to leverage organic connections, new greenfield utilities, acquisitions, and rate cases to drive growth [14] - The company aims to expand its total water management platform and apply its expertise across regional service areas [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed economic conditions but expressed confidence in the company's ability to improve utility metrics despite these challenges [24] - The company expects continued strong growth in customer connections, revenue, and earnings driven by strategic investments and rate increases [24] Other Important Information - The Arizona Corporation Commission approved new rates for the Farmers Water Utility, effective May 1, 2025, which will positively impact future quarters [20] - The company filed a rate case for Santa Cruz and Palo Verde, requesting a net revenue increase of $6.5 million, with hearings scheduled for December 2025 [21] Q&A Session Summary Question: What is the outlook for the housing market in Arizona? - Management noted that while there has been a decrease in single-family permits, the overall demand for housing remains strong due to population growth and job opportunities [8] Question: How does the company plan to address inflation and cost increases? - Management indicated that new rates from recent rate cases will help address cost increases and support earnings growth [14]