Global Water(US:GWRS)2024-05-09 21:45Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $11.6 million, down $1.5 million or 11.6% compared to Q1 2023, primarily due to the absence of ICFA revenue recognized in Q1 2023 [39] - Water and wastewater revenue, excluding ICFA revenue, increased by $750,000 or 6.9% compared to Q1 2023, driven by organic connection growth of 4.4% and increased consumption [39] - Adjusted EBITDA was $5.4 million in Q1 2024, an increase of $235,000 or 4.5% compared to Q1 2023 [12] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.4% to 62,451 as of the end of the quarter compared to the previous year [19] - The multifamily housing unit data in the City of Maricopa showed strong growth, with 400 units permitted in Q1 2024, an increase of 186 units or 87% compared to Q1 2023 [9] Market Data and Key Metrics Changes - The industrial manufacturing boom in Arizona continued, with $40.7 billion invested in 2023, surpassing the previous record [21] - The City of Maricopa issued 326 single-family dwelling building permits in Q1 2024, representing a 131% increase from Q1 2023 [20] Company Strategy and Development Direction - The company is focused on growing and aggregating water and wastewater utilities to address utility, water resource, and economic development matters along the Arizona Sun Corridor [28] - The acquisition of seven public water systems from the City of Tucson is expected to create additional economies of scale and strengthen community stakeholder relationships [26][44] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on the future potential of the Inland Port Arizona service area, citing significant industrial developments and a strong economy [10] - The company anticipates considerable large-scale commercial, multifamily, and industrial growth in the coming years, driven by a housing shortage in Metro Phoenix [38] Other Important Information - Operating expenses for Q1 2024 were $10.3 million, an increase of approximately $1 million or 10.6% compared to Q1 2023, primarily due to increased medical expenses and filling open positions [65] - The company maintained a compliance record with zero significant compliance events for the quarter [36] Q&A Session Summary Question: Inquiry about organic growth connection growth and water off takes - Management noted that the increase in volumes was partly due to a wet Q1 and incremental revenue from multifamily developments as occupancy rates pick up [30] Question: Comments on Buckeye Premium and regional development - Management reported strong performance with about $777,000 from Buckeye Premium in Q1 2024, indicating a sustainable trend [31] Question: Timing for the Tucson acquisition approval - Management estimated a timeline of six to twelve months for commission approval of the Tucson acquisition, which could be as early as this year but likely next year [54]