Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water
resource management company, reported results for the second
quarter ended June 30, 2024. All comparisons are to the same
year-ago period unless otherwise noted. The company will hold a
conference call at 1:00 p.m. Eastern time tomorrow to discuss the
results (see dial-in information below).
Q2 2024 Financial
Highlights
- Total revenue
increased 3.9% to $13.5 million.
- Net income
decreased 0.5% to $1.7 million or $0.07 per share.
- Adjusted net income
increased 3.0% to $1.8 million or $0.07 per share (see definition
of adjusted net income, a non-GAAP term, and reconciliation to
GAAP, below).
- Adjusted EBITDA
increased $0.1 million to $6.8 million (see definition of adjusted
EBITDA, a non-GAAP term, and reconciliation to GAAP, below).
- Cash and cash
equivalents totaled $18.1 million at June 30, 2024.
- Declared three
monthly cash dividends of $0.02508 per common share or $0.30096 per
common share on an annualized basis.
Q2 2024 Operational
Highlights
- Total active
service connections increased 4.9% to 63,256 at June 30, 2024
compared to June 30, 2023.
- Annualized active
service connection growth rate was 4.7%.
- Water consumption
decreased 1.7% to 1.11 billion gallons.
- Invested $6.4
million in infrastructure projects to support existing utilities
and continued growth.
- Arizona Corporation
Commission (ACC) issued Decision No. 79383 regarding rate cases for
seven of the company’s regulated utilities in Pima County. The ACC
approved a revenue increase totaling approximately $0.4 million
annually to be phased-in over five periods beginning on July 1,
2024. The subsequent four increases will be effective on January 1
of each subsequent year with the majority of the revenue increase
phased in by January 1, 2025.
- In June, filed a
rate case for the company’s GW-Farmers utility requesting a revenue
increase of approximately $1.3 million.
Other Matters and Subsequent Events
- Entered into a
20-year, $2.4 million loan agreement with the Water Infrastructure
Finance Authority of Arizona for infrastructure improvement for the
company’s GW-Rincon utility, with $0.7 million of the loan to be
forgivable.
- Entered into an
agreement to acquire seven water systems from the City of Tucson
for approximately $8.4 million. These systems serve approximately
2,200 water service connections in Pima County, which is
geographically located near other utilities the company has
acquired.
- Secured an
extension of the company’s $15 million revolving line of credit to
July 1, 2026, with 100% currently available for borrowing.
Management Commentary “Q2 was another quarter
of topline regulated revenue growth generated by our core water,
wastewater and recycled water services,” commented Global Water
Resources president and CEO, Ron Fleming. “The 3.9% increase in
revenue reflected a 4.9% increase in active service connections to
63,256 and was our fourth consecutive quarter of accelerated
organic connection growth.
“While our operating expenses have increased due to inflation
and the growth we’ve been experiencing, it is important to remind
our stakeholders that we are filing a rate case for our two largest
utilities in 2025, with 2024 being the test year.
“During the quarter, we announced our plans to acquire seven
water systems from the City of Tucson that would expand our service
area in Pima County by approximately 2,200 water service
connections. We believe we remain on track to complete this
acquisition by early next year, subject to customary closing
conditions and approval by the ACC.
“We continue to evaluate potential acquisition opportunities
within Arizona’s Sun Corridor; however, organic growth will always
be our primary focus. Such organic growth includes adding
connections through our existing service areas as well as
appropriate rate increases.
“Our service areas in Arizona's Sun Corridor showed signs of
significant growth in the first half of this year, with
single-family permits increasing by 169 or 43% in the City of
Maricopa and up 4,313 or 43% across Greater Phoenix as compared to
the first half of last year. It is also worth noting that
multi-family housing permits in the City of Maricopa increased by
861 or 273% in the first half of 2024 compared to 2023.
“Our rate case hearing for our utilities located in the Saguaro
District was completed in June with a favorable outcome, and we
filed a new rate case for Farmers Water in June. We also plan to
file a rate case in 2025 for our largest utilities in Pinal County,
with 2024 as the test year.
“We believe the accelerating organic growth rate of active
service connection will continue to be supported by favorable macro
trends. Arizona is projected to add 478,000 jobs with an annual
growth rate of 1.4% over the next eight years, exceeding the
national average. According to the state’s commerce authority,
Arizona also received $40.7 billion in investments last year,
including contributions from major industry players such as Taiwan
Semiconductor, Intel and Procter & Gamble.
“We further believe these favorable macro trends suggest that we
remain well-positioned for growth in the metropolitan areas of
Phoenix and Tucson. We anticipate the planned service areas to
potentially generate hundreds of thousands of new service
connections for our utilities upon completion of buildout.
“Looking ahead, we anticipate another strong second half for
Global Water. Our positive outlook is bolstered by our commitment
to providing exceptional water services and advancing our mission
to expand and consolidate water and wastewater utilities. Amid the
challenges of water scarcity, strict regulations and aging
infrastructure, we remain focused on bringing the benefits of
consolidation, regionalization, and proactive environmental
stewardship to the growing communities we serve. We believe this
focus will drive greater shareholder value over the long term.”
Q2 2024 Financial
Summary
Revenues
Revenues in the second quarter of 2024 increased $0.5 million or
3.9% to $13.5 million compared to $13.0 million in the same period
in 2023. The increase in revenue was primarily attributable to the
4.9% organic growth in active connections (including both water and
wastewater connections), partially offset by a slight decrease in
overall consumption.
Revenues for the first half of 2024 decreased $1.0 million or
3.9% to $25.1 million, primarily attributable to the recognition of
$2.3 million of unregulated revenue related to infrastructure
coordination and financing agreements (ICFA) during the prior year
period that did not recur in the first half of 2024. Regulated
revenue increased by $1.3 million or 5.3% primarily from organic
connection growth.
Operating Expenses
Operating expenses in the second quarter of 2024 increased
approximately $0.7 million or 7.2% to $10.7 million compared to
$10.0 million in the same period in 2023. The increase was
primarily related to salaries and wages, utilities and chemicals,
medical insurance expenses, and depreciation and amortization
expense. The increased operating expenses were partially offset by
decreased deferred compensation.
Operating expenses for the first half of 2024 increased
approximately $1.7 million or 8.9% to $21.1 million compared to
$19.3 million in the same period in 2023. The increase was
primarily related to salaries and wages, medical insurance
expenses, utilities and chemicals, higher regulatory costs, and
increased depreciation and amortization expense. The increased
operating expenses were partially offset by decreased deferred
compensation and lower professional fees.
Other Expense
Total other expense was $0.5 million in the second quarter of
both 2024 and 2023.
Total other expense in the first half of 2024 decreased $0.2
million or 19.4% to $0.8 million compared to $1.0 million for the
same period in 2023. The decrease was related to the $0.4 million
increase of income associated with Buckeye growth premiums as a
result of additional new meter connections in the area and a $0.5
million increase in interest income, partially offset by an
increase in interest expense of $0.6 million during the first half
of 2024 compared to the first half of 2023.
Net Income
Net income totaled $1.7 million or $0.07 per share in the second
quarter of 2024 and 2023.
Net income was $2.4 million or $0.10 per share in the first half
of 2024 compared to net income of $4.2 million or $0.17 per diluted
share in the first half of 2023. The primary driver for the
decrease was the recognition of $2.3 million of ICFA related
revenue in the first half of 2023 that did not recur in the current
year period.
Adjusted EBITDA
Adjusted EBITDA increased $0.1 million or 1.2% to $6.8 million
in the second quarter of 2024 compared to $6.7 million in 2023.
Adjusted EBITDA increased $0.3 million or 2.7% to $12.2 million
in the first half of 2024 compared to $11.9 million in the same
period in 2023.
Capital Resources
Cash and cash equivalents totaled $18.1 million at June 30,
2024, and the company had full access to its unused $15 million
revolving line of credit as of such date. As of June 30, 2024, the
company had no notable near-term cash expenditures other than
semiannual principal payments on Series B senior secured notes in
the amount of $1.9 million due in both December 2024 and June
2025.
Dividend Policy
The company recently declared a monthly cash dividend of
$0.02508 per common share (or $0.30096 per share on an annualized
basis), which will be payable on August 31, 2024 to holders of
record at the close of business on August 17, 2024.
Business Strategy
Global Water's near-term growth strategy involves increasing
service connections, improving operating efficiencies, and
increasing utility rates as approved by the ACC. The company plans
to continue to aggregate water and wastewater utilities, enabling
the company and its customers to realize the benefits of
consolidation, regionalization, and environmental stewardship.
Connection Rates
As of June 30, 2024, active service connections increased
by 2,965, or 4.9%, to 63,256, compared to 60,291 at June 30, 2023.
The increase in active service connections was primarily due to
organic growth in connections.
Arizona Growth Corridor: Positive Population and
Economic Trends
Global Water continues to experience an increasing rate of
organic growth, which excludes acquisition related growth,
evidenced by its year over year increase in active connections of
4.9% as compared to 1.9% for the same period in 2023. According to
the most recent U.S. Census estimates, the Phoenix metropolitan
statistical area (MSA) is the 10th largest MSA in the U.S. and had
an estimated population of 5.1 million, an increase of 4.6%
over the 4.8 million people reported in the 2020 Census.
Metropolitan Phoenix continues to grow due to its favorable
employment opportunities, excellent weather, large and growing
universities, a diverse employment base, and low taxes. The
Employment and Population Statistics Department of the State of
Arizona predicts that the Phoenix metropolitan area will have a
population of 5.8 million people by 2030 and 6.5 million by 2040.
Arizona’s job growth increased by 2.2% during the first six months
of 2024 as compared to the same period for the prior year, ranking
the state in the top 10 nationally as of June 30, 2024.
According to the W.P. Carey School of Business Greater Phoenix
Blue Chip Real Estate Consensus Panel (the “Greater Phoenix Blue
Chip Panel”), interest rate shock negatively impacted permit
activity in the Phoenix metropolitan area, particularly between
July 2022 and June 2023. Further, the Greater Phoenix Blue Chip
Panel concluded that the recovery from that interest rate shock
resulted in permit activity increasing by more than 44% in the
first five months of 2024. The Greater Phoenix Blue Chip Panel
anticipates single family permit growth by more than 27% for 2024
as a whole. Further, single family permits in the City of Maricopa
increased 43% for the first half of 2024 as compared to the same
period in the prior year.
Management believes that Global Water is well-positioned to
benefit from the growth expected in the Phoenix metropolitan area
due to the availability of lots, existing infrastructure in place
within its services areas, and increased activity related to
multi-family developments.
Conference Call
Global Water Resources will hold a conference call tomorrow to
discuss its second quarter 2024 results, including a
question-and-answer period. Date: Thursday, August 8, 2024Time:
1:00 p.m. Eastern time (10:00 a.m. Pacific time)Toll-free dial-in
number: 1-833-816-1435International dial-in number:
1-412-317-0527Conference ID: 10190879Webcast (live and replay):
here
The conference call webcast is also available via a link in the
Investors section of the company’s website at
www.gwresources.com.
Please call the conference telephone number five minutes prior
to the start time. An operator will register your name and
organization. If you require any assistance connecting to the call,
please contact CMA at 1-949-432-7566.
A replay of the call will be available after 4:00 p.m. Eastern
time on the same day through August 22, 2024.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 10190879
About Global Water Resources
Global Water Resources, Inc. is a leading water resource
management company that owns and operates 32 systems which provide
water, wastewater, and recycled water services. The company’s
service areas are located primarily in growth corridors around
metropolitan Phoenix. Global Water recycles over 1 billion gallons
of water annually with a total of 17.0 billion gallons recycled
since 2004.
The company has been recognized for its highly effective
implementation of Total Water Management (TWM). TWM is an
integrated approach to managing the entire water cycle that
involves owning and operating water, wastewater and recycled water
utilities within the same geographic area in order to maximize the
beneficial use of recycled water. It enables smart water management
programs such as remote metering infrastructure and other advanced
technologies, rate designs, and incentives that result in real
conservation. TWM helps protect water supplies in water-scarce
areas experiencing population growth.
Global Water has received numerous industry awards, including
national recognition as a ‘Utility of the Future Today’ for its
superior water reuse practices by a national consortium of water
and conservation organizations led by the Water Environment
Federation (WEF). The company also received Cityworks’ Excellence
in Departmental Practice Award for demonstrating leadership and
creativity in applying public asset management strategies to daily
operations and long-term planning.
To learn more, visit www.gwresources.com.
Use of Non-GAAP Measures
This press release contains certain financial measures that are
not recognized measures under accounting principles generally
accepted in the United States of America (“GAAP”), including
EBITDA, adjusted EBITDA, adjusted net income, adjusted basic
earnings per common share, and adjusted diluted earnings per common
share. EBITDA is defined for the purposes of this press release as
net income before interest, income taxes, depreciation, and
amortization. Adjusted EBITDA is defined as EBITDA excluding the
gain or loss related to (i) nonrecurring events; (ii) option
expense related to awards made to management; (iii) restricted
stock expense related to awards made to employees and the board of
directors; (iv) disposal of assets; and (v) ICFA revenue
recognition. Adjusted net income, adjusted basic earnings per
common share, and adjusted diluted earnings per common share
reflect net income and basic or diluted, as applicable, earnings
per common share excluding (i) ICFA revenue; (ii) the amortization
related to ICFA intangible assets; and (iii) the tax effects of
each of these items, as applicable.
Management believes that EBITDA, adjusted EBITDA, adjusted net
income, adjusted basic earnings per common share, and adjusted
diluted earnings per common share are useful supplemental measures
of our operating performance and provide our investors meaningful
measures of overall corporate performance. EBITDA is also presented
because management believes that it is frequently used by
investment analysts, investors, and other interested parties as a
measure of financial performance. Adjusted EBITDA, adjusted net
income, adjusted basic earnings per common share, and adjusted
diluted earnings per common share are also presented because
management believes that they provide our investors additional
measures of our recurring core business. However, non-GAAP measures
do not have a standardized meaning prescribed by GAAP, and
investors are cautioned that non-GAAP measures, such as EBITDA,
adjusted EBITDA, adjusted net income, adjusted basic earnings per
common share, and adjusted diluted earnings per common share,
should not be construed as an alternative to net income or loss or
other income statement data (which are determined in accordance
with GAAP) as an indicator of our performance or as a measure of
liquidity and cash flows. Management's method of calculating
EBITDA, adjusted EBITDA, adjusted net income, adjusted basic
earnings per common share, and adjusted diluted earnings per common
share may differ materially from the method used by other companies
and accordingly, may not be comparable to similarly titled measures
used by other companies. A reconciliation of EBITDA, adjusted
EBITDA, and adjusted net income to net income, and a reconciliation
of adjusted basic earnings per common share and adjusted diluted
earnings per common share to basic or diluted, as applicable,
earnings per common share, the most comparable GAAP measures, is
included in the schedules attached to this press release.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release and the related
conference call include certain forward-looking statements which
reflect the company's expectations regarding future events. The
forward-looking statements involve a number of assumptions, risks,
uncertainties, and other factors that could cause actual results to
differ materially from those contained in the forward-looking
statements. These forward-looking statements include, but are not
limited to, statements about our strategies; expectations about
future business plans, prospective performance, growth, and
opportunities, including expected growth in and around metropolitan
Phoenix and Tucson and the resulting potential for new service
connections; future financial performance, including the
anticipation of another strong year ahead for the company;
regulatory and ACC proceedings, decisions, and approvals, such as
the anticipated benefits resulting from rate decisions, including
any collective revenue increases due to new water and wastewater
rates, as well as the outcome and timing of our rate case and other
applications with the ACC; our plans relating to future filings of
our rate cases with the ACC; acquisition plans and our ability to
complete additional acquisitions, including the anticipated
acquisition of seven public water systems from the City of Tucson,
the expected increase in active water service connections, and the
anticipated timing of the consummation of such acquisition;
population and growth projections; technologies, including expected
benefits from implementing such technologies; revenues; metrics;
operating expenses; trends relating to our industry, market,
population and job growth, and housing permits; the adequacy of our
water supply to service our current demand and growth for the
foreseeable future; liquidity and capital resources; plans and
expectations for capital expenditures; cash flows and uses of cash;
dividends; depreciation and amortization; tax payments; our ability
to repay indebtedness and invest in initiatives; the anticipated
impact and resolutions of legal matters; the anticipated impact of
new or proposed laws, including regulatory requirements, tax
changes, and judicial decisions; the anticipated impact of
accounting changes and other pronouncements; and other statements
that are not historical facts, as well as statements identified by
words such as "expects", "anticipates", "intends", "plans",
"believes", "seeks", "estimates", or the negative of these terms,
or other words of similar meaning. These statements are based on
our current beliefs or expectations and are inherently subject to a
number of risks, uncertainties, and assumptions, most of which are
difficult to predict and many of which are beyond our control.
Actual results may differ materially from these expectations due to
changes in political, economic, business, market, regulatory, and
other factors. Additional risks and uncertainties include, but are
not limited to, whether all conditions precedent in the asset
purchase agreement to acquire the seven public water systems from
the City of Tucson will be satisfied, including the receipt of ACC
approval, and other risks to consummation of the acquisition,
including circumstances that could give rise to the termination of
the asset purchase agreement and the risk that the transaction will
not be consummated without undue delay, cost or expense, or at all.
Factors that may also affect future results are disclosed under the
headings “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our filings
with the Securities and Exchange Commission (the "SEC"), which are
available at the SEC's website at www.sec.gov. This includes, but
is not limited to, our most recently filed periodic reports on Form
10-K and Form 10-Q and subsequent filings with the SEC.
Accordingly, investors are cautioned not to place undue reliance on
any forward-looking statements, which reflect management’s views as
of the date hereof. We undertake no obligation to publicly update
any forward-looking statement, except as required by law, whether
as a result of new information, future developments or
otherwise.
Company Contact:Michael J. Liebman CFO and
SVPTel (480) 999-5104 Email ContactInvestor Relations
Contact:Ron Both or Grant StudeCMA Investor RelationsTel
(949) 432-7566Email contact
|
GLOBAL WATER RESOURCES, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(Unaudited, in
thousands, except share and per share amounts) |
| |
| |
June 30, 2024 |
|
December 31, 2023 |
| ASSETS |
|
|
|
| PROPERTY, PLANT AND
EQUIPMENT: |
|
|
|
|
Land |
$ |
2,674 |
|
|
$ |
2,674 |
|
|
Depreciable property, plant and equipment |
|
417,463 |
|
|
|
414,170 |
|
|
Construction work-in-progress |
|
59,095 |
|
|
|
48,147 |
|
|
Other |
|
697 |
|
|
|
697 |
|
|
Less accumulated depreciation |
|
(147,984 |
) |
|
|
(142,367 |
) |
|
Net property, plant and equipment |
|
331,945 |
|
|
|
323,321 |
|
| CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
18,148 |
|
|
|
3,087 |
|
|
Accounts receivable, net |
|
2,848 |
|
|
|
2,845 |
|
|
Customer payments in-transit |
|
604 |
|
|
|
543 |
|
|
Unbilled revenue |
|
3,406 |
|
|
|
2,755 |
|
|
Taxes, prepaid expenses and other current assets |
|
1,874 |
|
|
|
2,494 |
|
|
Total current assets |
|
26,880 |
|
|
|
11,724 |
|
| OTHER ASSETS: |
|
|
|
|
Goodwill |
|
9,486 |
|
|
|
10,820 |
|
|
Intangible assets, net |
|
8,573 |
|
|
|
8,841 |
|
|
Regulatory assets |
|
4,197 |
|
|
|
2,898 |
|
|
Restricted cash |
|
1,548 |
|
|
|
1,676 |
|
|
Right-of-use assets |
|
1,753 |
|
|
|
1,741 |
|
|
Other noncurrent assets |
|
78 |
|
|
|
74 |
|
|
Total other assets |
|
25,635 |
|
|
|
26,050 |
|
| TOTAL ASSETS |
$ |
384,460 |
|
|
$ |
361,095 |
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
Accounts payable |
$ |
1,133 |
|
|
$ |
1,027 |
|
|
Accrued expenses |
|
7,168 |
|
|
|
7,129 |
|
|
Customer and meter deposits |
|
1,596 |
|
|
|
1,628 |
|
|
Long-term debt, current portion |
|
3,882 |
|
|
|
3,880 |
|
|
Leases, current portion |
|
655 |
|
|
|
553 |
|
|
Total current liabilities |
|
14,434 |
|
|
|
14,217 |
|
| NONCURRENT LIABILITIES: |
|
|
|
|
Line of credit |
|
— |
|
|
|
2,315 |
|
|
Long-term debt |
|
119,070 |
|
|
|
101,341 |
|
|
Long-term lease liabilities |
|
1,292 |
|
|
|
1,370 |
|
|
Deferred revenue - ICFA |
|
19,974 |
|
|
|
19,656 |
|
|
Regulatory liabilities |
|
5,875 |
|
|
|
6,076 |
|
|
Advances in aid of construction |
|
116,389 |
|
|
|
111,529 |
|
|
Contributions in aid of construction, net |
|
39,062 |
|
|
|
36,409 |
|
|
Deferred income tax liabilities, net |
|
9,083 |
|
|
|
8,284 |
|
|
Acquisition liabilities |
|
3,013 |
|
|
|
3,048 |
|
|
Other noncurrent liabilities |
|
8,653 |
|
|
|
8,230 |
|
|
Total noncurrent liabilities |
|
322,411 |
|
|
|
298,258 |
|
|
Total liabilities |
|
336,845 |
|
|
|
312,475 |
|
| |
|
|
|
| SHAREHOLDERS’ EQUITY: |
|
|
|
|
Common stock, $0.01 par value, 60,000,000 shares authorized;
24,561,035 and 24,492,918 shares issued as of June 30, 2024 and
December 31, 2023, respectively. |
|
240 |
|
|
|
240 |
|
|
Treasury stock, 343,625 and 317,677 shares at June 30, 2024 and
December 31, 2023, respectively. |
|
(2 |
) |
|
|
(2 |
) |
|
Paid in capital |
|
46,671 |
|
|
|
47,585 |
|
|
Retained earnings |
|
706 |
|
|
|
797 |
|
|
Total shareholders’ equity |
|
47,615 |
|
|
|
48,620 |
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
384,460 |
|
|
$ |
361,095 |
|
|
GLOBAL WATER RESOURCES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited,
in thousands, except share and per share amounts) |
| |
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| REVENUES: |
|
|
|
|
|
|
|
|
Water services |
$ |
6,668 |
|
|
$ |
6,557 |
|
|
$ |
11,894 |
|
|
$ |
11,396 |
|
|
Wastewater and recycled water services |
|
6,842 |
|
|
|
6,443 |
|
|
|
13,226 |
|
|
|
12,464 |
|
|
Unregulated revenues |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,268 |
|
|
Total revenues |
|
13,510 |
|
|
|
13,000 |
|
|
|
25,120 |
|
|
|
26,128 |
|
| |
|
|
|
|
|
|
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Operations and maintenance |
|
3,485 |
|
|
|
3,181 |
|
|
|
6,769 |
|
|
|
5,970 |
|
|
General and administrative |
|
4,232 |
|
|
|
4,104 |
|
|
|
8,357 |
|
|
|
8,011 |
|
|
Depreciation and amortization |
|
2,996 |
|
|
|
2,705 |
|
|
|
5,930 |
|
|
|
5,360 |
|
|
Total operating expenses |
|
10,713 |
|
|
|
9,990 |
|
|
|
21,056 |
|
|
|
19,341 |
|
| OPERATING INCOME |
|
2,797 |
|
|
|
3,010 |
|
|
|
4,064 |
|
|
|
6,787 |
|
| |
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
Interest income |
|
266 |
|
|
|
2 |
|
|
|
504 |
|
|
|
7 |
|
|
Interest expense |
|
(1,507 |
) |
|
|
(1,281 |
) |
|
|
(3,073 |
) |
|
|
(2,449 |
) |
|
Allowance for equity funds used during construction |
|
237 |
|
|
|
216 |
|
|
|
444 |
|
|
|
515 |
|
|
Other, net |
|
535 |
|
|
|
523 |
|
|
|
1,330 |
|
|
|
941 |
|
|
Total other expense |
|
(469 |
) |
|
|
(540 |
) |
|
|
(795 |
) |
|
|
(986 |
) |
| |
|
|
|
|
|
|
|
| INCOME BEFORE INCOME TAXES |
|
2,328 |
|
|
|
2,470 |
|
|
|
3,269 |
|
|
|
5,801 |
|
| INCOME TAX EXPENSE |
|
(598 |
) |
|
|
(731 |
) |
|
|
(848 |
) |
|
|
(1,596 |
) |
| NET INCOME |
$ |
1,730 |
|
|
$ |
1,739 |
|
|
$ |
2,421 |
|
|
$ |
4,205 |
|
| |
|
|
|
|
|
|
|
| Basic earnings per common
share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.10 |
|
|
$ |
0.18 |
|
| Diluted earnings per common
share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.10 |
|
|
$ |
0.17 |
|
| Dividends declared per common
share |
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
| |
|
|
|
|
|
|
|
| Weighted average
number of common shares used in the determination of: |
|
|
|
|
|
Basic |
|
24,199,472 |
|
|
|
23,958,205 |
|
|
|
24,187,586 |
|
|
|
23,914,866 |
|
|
Diluted |
|
24,308,524 |
|
|
|
24,038,902 |
|
|
|
24,306,316 |
|
|
|
24,033,994 |
|
|
GLOBAL WATER RESOURCES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited,
in thousands) |
| |
| |
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net income |
$ |
2,421 |
|
|
$ |
4,205 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
5,930 |
|
|
|
5,360 |
|
|
Deferred compensation |
|
595 |
|
|
|
734 |
|
|
Deferred income tax expense |
|
838 |
|
|
|
1,090 |
|
|
Allowance for equity funds used during construction |
|
(444 |
) |
|
|
(515 |
) |
|
Provision for credit losses |
|
35 |
|
|
|
35 |
|
|
Amortization of deferred debt issuance costs and discounts |
|
41 |
|
|
|
22 |
|
|
Gain on disposal of fixed assets |
|
(17 |
) |
|
|
(66 |
) |
|
Right of use amortization |
|
214 |
|
|
|
192 |
|
|
Changes in assets and liabilities |
|
|
|
|
Accounts receivable |
|
(38 |
) |
|
|
(885 |
) |
|
Other current assets |
|
(91 |
) |
|
|
694 |
|
|
Accounts payable and other current liabilities |
|
101 |
|
|
|
392 |
|
|
Other noncurrent assets |
|
(21 |
) |
|
|
160 |
|
|
Other noncurrent liabilities |
|
4,007 |
|
|
|
1,237 |
|
|
Net cash provided by operating activities |
|
13,571 |
|
|
|
12,655 |
|
| |
|
|
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
Capital expenditures |
|
(12,207 |
) |
|
|
(13,693 |
) |
|
Cash paid for acquisitions, net of cash acquired |
|
— |
|
|
|
(6,246 |
) |
|
Other |
|
(4 |
) |
|
|
— |
|
|
Net cash used in investing activities |
|
(12,211 |
) |
|
|
(19,939 |
) |
| |
|
|
|
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
Dividends paid |
|
(3,640 |
) |
|
|
(3,572 |
) |
|
Advances in aid of construction |
|
2,215 |
|
|
|
420 |
|
|
Payments for taxes related to net shares settlement of equity
awards |
|
(268 |
) |
|
|
(357 |
) |
|
Principal payments under finance leases |
|
(110 |
) |
|
|
(258 |
) |
|
Repayments of notes payable |
|
(1,917 |
) |
|
|
(1,917 |
) |
|
Line of credit borrowings |
|
— |
|
|
|
18,200 |
|
|
Line of credit repayments |
|
(2,315 |
) |
|
|
(11,435 |
) |
|
Loan borrowings |
|
20,000 |
|
|
|
253 |
|
|
Loan repayments |
|
(23 |
) |
|
|
— |
|
|
Debt issuance costs paid |
|
(369 |
) |
|
|
— |
|
|
Proceeds from sale of stock |
|
— |
|
|
|
2,748 |
|
|
Refunds of developer taxes |
|
— |
|
|
|
(5 |
) |
|
Net cash provided by financing activities |
|
13,573 |
|
|
|
4,077 |
|
| INCREASE (DECREASE) IN CASH,
CASH EQUIVALENTS, AND RESTRICTED CASH |
|
14,933 |
|
|
|
(3,207 |
) |
| CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH — Beginning of period |
|
4,763 |
|
|
|
7,562 |
|
| CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH — End of period |
$ |
19,696 |
|
|
$ |
4,355 |
|
| |
See accompanying notes to the condensed
consolidated financial statements
Supplemental disclosure of cash flow
information:
| |
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash and cash equivalents |
$ |
18,148 |
|
|
$ |
2,007 |
|
| Restricted cash |
|
1,548 |
|
|
|
2,348 |
|
|
Total cash, cash equivalents, and restricted cash |
$ |
19,696 |
|
|
$ |
4,355 |
|
A reconciliation of net income to EBITDA and Adjusted EBITDA for
the three and six months ended June 30, 2024 and 2023 is as follows
(in thousands):
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net Income |
|
1,730 |
|
|
|
1,739 |
|
|
|
2,421 |
|
|
|
4,205 |
|
| Income tax expense |
|
598 |
|
|
|
731 |
|
|
|
848 |
|
|
|
1,596 |
|
| Interest income |
|
(266 |
) |
|
|
(2 |
) |
|
|
(504 |
) |
|
|
(7 |
) |
| Interest expense |
|
1,507 |
|
|
|
1,281 |
|
|
|
3,073 |
|
|
|
2,449 |
|
| Depreciation |
|
2,996 |
|
|
|
2,705 |
|
|
|
5,930 |
|
|
|
5,360 |
|
| EBITDA |
|
6,565 |
|
|
|
6,454 |
|
|
|
11,768 |
|
|
|
13,603 |
|
| ICFA revenue |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,268 |
) |
| Management option expense |
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
72 |
|
| Gain on disposal of fixed
assets |
|
(20 |
) |
|
|
(54 |
) |
|
|
(17 |
) |
|
|
(66 |
) |
| Restricted stock expense |
|
285 |
|
|
|
281 |
|
|
|
483 |
|
|
|
537 |
|
| Acquisition gain resulting
from regulatory decision |
|
(37 |
) |
|
|
— |
|
|
|
(37 |
) |
|
|
— |
|
| EBITDA adjustments |
|
228 |
|
|
|
256 |
|
|
|
429 |
|
|
|
(1,725 |
) |
| Adjusted
EBITDA |
|
6,793 |
|
|
|
6,710 |
|
|
|
12,197 |
|
|
|
11,878 |
|
A reconciliation of net income to adjusted net income for the
three and six months ended June 30, 2024 and 2023 is as follows (in
thousands):
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net Income |
$ |
1,730 |
|
|
$ |
1,739 |
|
|
$ |
2,421 |
|
|
$ |
4,205 |
|
| ICFA revenue |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,268 |
) |
| ICFA intangible amortization
expense |
|
81 |
|
|
|
— |
|
|
|
414 |
|
|
|
| Income tax expense (benefit) on
items above |
|
(20 |
) |
|
|
— |
|
|
|
(104 |
) |
|
|
572 |
|
| Adjusted Net
Income |
$ |
1,791 |
|
|
$ |
1,739 |
|
|
$ |
2,731 |
|
|
$ |
2,509 |
|
A reconciliation of basic earnings per common share to adjusted
basic earnings per share for the three and six months ended June
30, 2024, and 2023 is as follows:
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Basic earnings per common
share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.10 |
|
|
$ |
0.18 |
|
| ICFA revenue |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
| ICFA intangible amortization
expense |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
| Income tax expense on items
above |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
| Adjusted basic earnings
per common share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.11 |
|
|
$ |
0.10 |
|
| Weighted average
number of common shares used in determination of: |
|
|
|
|
|
Basic |
|
24,199,472 |
|
|
|
23,958,205 |
|
|
|
24,187,586 |
|
|
|
23,914,866 |
|
A reconciliation of diluted earnings per common share to
adjusted diluted earnings per share for the three and six months
ended June 30, 2024, and 2023 is as follows:
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Diluted earnings per
common share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.10 |
|
|
$ |
0.17 |
|
| ICFA revenue |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.09 |
) |
| ICFA intangible amortization
expense |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
| Income tax expense on items
above |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
| Adjusted diluted earnings
per common share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.11 |
|
|
$ |
0.10 |
|
| Weighted average
number of common shares used in determination of: |
|
|
|
|
|
Diluted |
|
24,308,524 |
|
|
|
24,038,902 |
|
|
|
24,306,316 |
|
|
|
24,033,994 |
|
GWR Global Water Resources (TSX:GWR)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
GWR Global Water Resources (TSX:GWR)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
