Global Water(US:GWRS)2025-05-15 18:02Financial 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% [15] - 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 [18] - Adjusted EBITDA for Q1 2025 was $5.6 million, an increase of approximately $200,000 or 4.4% compared to Q1 2024 [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 into infrastructure improvements and existing utilities year-to-date [6] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 15% decrease in building permits issued in Q1 2025 compared to Q1 2024 [7] - The City of Maricopa experienced a 41.5% decrease in single-family building permits in Q1 2025 compared to Q1 2024 [7] - Despite the decrease in permits, the company believes the housing shortage in Arizona will sustain demand for housing units [9] Company Strategy and Development Direction - The company remains bullish on the future potential of its Inland Port Arizona service area, anticipating significant industrial growth [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 acknowledges a mix of tailwinds and headwinds in the economy but remains confident in the company's ability to improve utility metrics [24] - The company expects continued strong customer growth, revenue growth, and earnings growth due to its strategic initiatives and local dynamics [24] Other Important Information - The Arizona Corporation Commission approved new rates for the Farmers Water Utility, effective May 1, 2025 [20] - The company filed a rate case for Santa Cruz and Palo Verde, requesting a net revenue increase of $6.5 million [21] - A successful equity capital raise of $32 million was completed in March 2025, enhancing liquidity [19] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any inquiries [27]