Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GWRS | ||
Entity Registrant Name | Global Water Resources, Inc. | ||
Entity Central Index Key | 1,434,728 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (in shares) | 19,631,266 | ||
Entity Public Float | $ 194.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Property, plant and equipment | $ 289,051 | $ 273,366 |
Less accumulated depreciation | (75,592) | (72,877) |
Net property, plant and equipment | 213,459 | 200,489 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 5,248 | 20,498 |
Accounts receivable — net | 1,528 | 1,471 |
Due from affiliates | 430 | 333 |
Accrued revenue | 1,759 | 1,619 |
Prepaid expenses and other current assets | 700 | 819 |
Total current assets | 9,665 | 24,740 |
OTHER ASSETS: | ||
Intangible assets — net | 12,772 | 12,772 |
Regulatory asset | 1,871 | 110 |
Bond service fund and other restricted cash | 436 | 228 |
Equity method investment | 345 | 480 |
Other noncurrent assets | 20 | 0 |
Total other assets | 15,444 | 13,590 |
TOTAL ASSETS | 238,568 | 238,819 |
CURRENT LIABILITIES: | ||
Accounts payable | 321 | 1,791 |
Accrued expenses | 7,252 | 7,602 |
Deferred revenue | 0 | 1 |
Customer and meter deposits | 1,395 | 1,482 |
Long-term debt and capital leases — current portion | 8 | 25 |
Total current liabilities | 8,976 | 10,901 |
NONCURRENT LIABILITIES: | ||
Long-term debt and capital leases | 114,363 | 114,317 |
Deferred regulatory gain - ICFA | 19,746 | 19,740 |
Regulatory liability | 8,463 | 7,859 |
Advances in aid of construction | 62,725 | 61,996 |
Contributions in aid of construction — net | 4,425 | 4,585 |
Deferred income tax liabilities, net | 3,114 | 2,585 |
Acquisition liability | 934 | 934 |
Other noncurrent liabilities | 962 | 913 |
Total noncurrent liabilities | 214,732 | 212,929 |
Total liabilities | 223,708 | 223,830 |
Commitments and contingencies (see Note 13) | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, $0.01 par value, 60,000,000 shares authorized; 19,631,266 and 19,581,266 shares issued as of December 31, 2017 and December 31, 2016, respectively | 196 | 196 |
Paid in capital | 14,288 | 18,968 |
Retained earnings/(accumulated deficit) | 376 | (4,175) |
Total shareholders' equity | 14,860 | 14,989 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 238,568 | $ 238,819 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 19,631,266 | 19,581,266 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES: | |||
Water services | $ 14,367 | $ 13,978 | $ 16,320 |
Wastewater and recycled water services | 16,765 | 15,740 | 15,020 |
Unregulated revenues | 76 | 81 | 616 |
Total revenues | 31,208 | 29,799 | 31,956 |
OPERATING EXPENSES: | |||
Operations and maintenance | 6,087 | 6,188 | 7,080 |
Operations and maintenance - related party | 1,462 | 1,853 | 2,179 |
General and administrative | 9,407 | 9,667 | 7,957 |
Depreciation | 6,908 | 6,279 | 8,213 |
Total operating expenses | 23,864 | 23,987 | 25,429 |
OPERATING INCOME | 7,344 | 5,812 | 6,527 |
OTHER INCOME (EXPENSE): | |||
Interest income | 19 | 18 | 11 |
Interest expense | (5,125) | (11,866) | (8,299) |
Gain on condemnation of Valencia | 0 | 0 | 42,983 |
Other | 1,478 | 2,222 | 767 |
Other - related party | 234 | 15 | (3) |
Total other income (expense) | (3,394) | (9,611) | 35,459 |
INCOME (LOSS) BEFORE INCOME TAXES | 3,950 | (3,799) | 41,986 |
INCOME TAX BENEFIT (EXPENSE) | 601 | 1,287 | (20,623) |
NET INCOME (LOSS) | $ 4,551 | $ (2,512) | $ 21,363 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.23 | $ (0.13) | $ 1.17 |
Diluted earnings (loss) per common share (in dollars per share) | 0.23 | (0.13) | 1.17 |
Dividends declared per common share (in dollars per share) | $ 0.28 | $ 0.26 | $ 1.43 |
Weighted average number of common shares used in the determination of: | |||
Basic (in shares) | 19,605,239 | 19,146,534 | 18,297,504 |
Diluted (in shares) | 19,644,768 | 19,146,534 | 18,297,504 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings/(Accumulated Deficit) |
BALANCE at the beginning (in shares) at Dec. 31, 2014 | 18,239,441 | ||||
BALANCE, at the beginning at Dec. 31, 2014 | $ 27,680 | $ 2 | $ 0 | $ 50,639 | $ (22,961) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividend declared | (27,607) | (27,607) | |||
Deemed distribution to related party (in shares) | 90,007 | ||||
Deemed distribution to related party | (909) | (909) | |||
Share repurchase (in shares) | (87,702) | ||||
Share repurchase | (464) | (464) | |||
Net income | 21,363 | 21,363 | |||
BALANCE at the end (in shares) at Dec. 31, 2015 | 18,241,746 | ||||
BALANCE, at the end at Dec. 31, 2015 | 20,063 | $ 2 | 0 | 21,659 | (1,598) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net proceeds from sale of stock (in shares) | 1,339,520 | ||||
Net proceeds from sale of stock | 5,539 | $ 281 | 5,258 | ||
Dividend declared | (5,042) | (5,042) | |||
Merger of GWRC | (2,452) | (87) | (2,365) | ||
Deemed distribution to related party | (648) | (648) | |||
Retirement of treasury shares | 0 | $ (87) | 87 | ||
Stock compensation | 106 | 106 | |||
Cumulative effect of change in accounting principle | (65) | (65) | |||
Net income | (2,512) | (2,512) | |||
BALANCE at the end (in shares) at Dec. 31, 2016 | 19,581,266 | ||||
BALANCE, at the end at Dec. 31, 2016 | 14,989 | $ 196 | 0 | 18,968 | (4,175) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividend declared | (5,404) | (5,404) | |||
Merger of GWRC | 53 | 53 | |||
Stock option exercise (in shares) | 50,000 | ||||
Stock option exercise | 375 | 375 | |||
Stock compensation | 296 | 296 | |||
Net income | 4,551 | 4,551 | |||
BALANCE at the end (in shares) at Dec. 31, 2017 | 19,631,266 | ||||
BALANCE, at the end at Dec. 31, 2017 | $ 14,860 | $ 196 | $ 0 | $ 14,288 | $ 376 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 0.28 | $ 0.26 | $ 1.43 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 4,551 | $ (2,512) | $ 21,363 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred compensation | 1,550 | 2,234 | 798 |
Depreciation | 6,908 | 6,279 | 8,213 |
Write-off of debt issuance costs | 0 | 2,165 | 282 |
Amortization of deferred debt issuance costs and discounts | 44 | 428 | 204 |
Gain on condemnation of Valencia | 0 | 0 | (42,983) |
Gain on sale of Loop 303 contracts | 0 | 0 | (296) |
Loss on sale of Willow Valley | 0 | 54 | 176 |
Loss on equity investment | 136 | 340 | 329 |
Other gains | 0 | (978) | 0 |
Provision for doubtful accounts receivable | 128 | 70 | 69 |
Deferred income tax expense (benefit) | 529 | (1,408) | 20,561 |
Changes in assets and liabilities, net of acquisition related purchase accounting adjustments: | |||
Accounts receivable | (179) | (409) | 125 |
Other current assets | (116) | (415) | (2,241) |
Accounts payable and other current liabilities | (1,247) | (4,087) | (2,502) |
Other noncurrent assets | (1,763) | 117 | 147 |
Other noncurrent liabilities | 615 | 17 | 0 |
Net cash provided by operating activities | 11,156 | 1,895 | 4,245 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (20,885) | (8,588) | (3,355) |
Proceeds from the condemnation of Valencia | 0 | 0 | 55,107 |
Cash received from the sale of Loop 303 contracts | 0 | 0 | 296 |
Cash advance to related party | 0 | 0 | (12,745) |
Repayment of related party cash advance | 0 | 0 | 12,745 |
Proceeds from the sale of Willow Valley | 0 | 2,254 | 0 |
Withdrawals (deposits) of restricted cash, net | (208) | 154 | (70) |
Other cash flows from investing activities | 95 | 13 | (6) |
Net cash provided by (used in) investing activities | (20,998) | (6,167) | 51,972 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Dividends paid | (5,399) | (5,036) | (27,607) |
Advances in aid of construction | 574 | 346 | 357 |
Proceeds from stock option exercise | 375 | 0 | 0 |
Principal payments under capital lease | (79) | (378) | (99) |
Refunds of advances for construction | (854) | (794) | (975) |
Loan borrowings | 0 | 115,000 | 0 |
Loan repayments | (5) | 0 | (21,719) |
Repayments of bond debt | 0 | (106,695) | (1,775) |
Proceeds withdrawn from bond service fund | 0 | 8,825 | 1,001 |
Proceeds from sale of stock | 0 | 8,372 | 0 |
Share repurchase | 0 | 0 | (464) |
Payment of Sonoran acquisition liability | 0 | (2,800) | 0 |
Debt issuance costs paid | (20) | (760) | 0 |
Payments of offering costs for sale of stock | 0 | (2,823) | 0 |
Net cash provided by (used in) financing activities | (5,408) | 13,257 | (51,281) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (15,250) | 8,985 | 4,936 |
CASH AND CASH EQUIVALENTS — Beginning of period | 20,498 | 11,513 | 6,577 |
CASH AND CASH EQUIVALENTS – End of period | $ 5,248 | $ 20,498 | $ 11,513 |
Description of Business, Basis
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, CORPORATE TRANSACTIONS, SIGNIFICANT ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS Description of Business Global Water Resources, Inc. (the “Company” or “GWRI”) is a water resource management company that owns, operates, and manages water, wastewater, and recycled water utilities in strategically located communities, principally in metropolitan Phoenix, Arizona. GWRI seeks to deploy an integrated approach, which the Company refers to as “Total Water Management,” a term used to mean managing the entire water cycle by owning and operating the water, wastewater, and recycled water utilities within the same geographic areas in order to both conserve water and maximize its total economic and social value. GWRI uses Total Water Management to promote sustainable communities in areas where the expectation is for growth to outpace the existing potable water supply. The Company’s model focuses on the broad issues of water supply and scarcity and applies principles of water conservation through water reclamation and reuse. The basic premise is that the world’s water supply is limited and yet can be stretched significantly through effective planning, the use of recycled water, and by providing individuals and communities resources that promote wise water usage practices. GWRI currently owns nine water and wastewater utilities in strategically targeted communities in metropolitan Phoenix. GWRI currently serves more than 51,000 people in approximately 20,000 homes within our 336 square miles of certificated service areas, which are serviced by five wholly-owned regulated operating subsidiaries as of December 31, 2017 . Approximately 98.8% of the Company’s active service connections are customers of our Santa Cruz and Palo Verde utilities, which are located within a single service area. GWRI has grown significantly since its formation in 2003, with total revenues increasing from $4.9 million in 2004 to $31.2 million in 2017 , and total service connections increasing from 8,113 as of December 31, 2004 to 39,618 as of December 31, 2017 , with regionally planned service areas large enough to serve approximately two million service connections. Basis of Presentation and Principles of Consolidation The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the accounts of GWRI and its subsidiaries. All significant intercompany account balances and transactions have been eliminated in consolidation. The Company prepares its financial statements in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The U.S. dollar is the Company’s reporting currency and functional currency. The Company qualifies as an “emerging growth company”, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), under the rules and regulations of the SEC. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. The Company has elected to take advantage of these provisions for up to five years or such earlier time that the Company is no longer an emerging growth company. The Company has elected to take advantage of some of the reduced disclosure obligations regarding financial statements. Also, as an emerging growth company, the Company can elect to delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has chosen to take advantage of this extended accounting transition provision. Certain prior period information has been adjusted to conform to the current year presentation to reflect a 100.68 to 1.00 stock split effectuated on April 28, 2016. All share and per share amounts presented in these financial statements have been retrospectively adjusted to reflect the impact of the stock split. Corporate Transactions Sale of certain MXA and WMA contracts In September 2013, the Company sold its Wastewater Facilities Main Extension Agreements (“MXA”) and Offsite Water Management Agreements (“WMA") for the contemplated Loop 303 service area along with their related rights and obligations to EPCOR Water Arizona Inc. (“EPCOR”) (collectively the “Transfer of Project Agreement”, or “Loop 303 Contracts”). Pursuant to the Transfer of Project Agreement, EPCOR agreed to pay GWRI approximately $4.1 million over a multi-year period. As part of the consideration, GWRI agreed to complete certain engineering work required in the WMAs, which work had been completed prior to January 1, 2015. As the engineering work has been completed, the Company effectively has no further obligations under the WMAs, the MXAs, or the Transfer of Project Agreement. Prior to January 1, 2015, the Company had received $2.8 million of proceeds and recognized income of approximately $3.3 million within other income (expense) in the statement of operations related to the gain on sale of these agreements and the proceeds received prior to January 1, 2015 for engineering work required in the WMAs. The Company received additional proceeds of approximately $296,000 in April 2015 and recognized those amounts as income at that time. Receipt of the remaining $1.0 million of proceeds will be recorded as additional income over time as certain milestones are met between EPCOR and the developers/landowners. Stipulated condemnation of Valencia On March 17, 2015, the Company reached a settlement agreement for a stipulated condemnation of the utility operating as Valencia Water Company, Inc. (“Valencia”) to the City of Buckeye (“Buckeye”), which was approved by Buckeye's City Council on March 19, 2015 and by the Maricopa County Superior Court on June 9, 2015. On July 14, 2015, the Company closed the stipulated condemnation of the operations and assets of Valencia with Buckeye. Terms of the condemnation were agreed upon through a settlement agreement in March 2015, pursuant to which Buckeye acquired the operations and assets of Valencia and assumed operations of the utility upon close. Buckeye paid the Company $55.0 million at close, plus an additional $108,000 in working capital adjustments. As a result of the transaction, the Company recorded a gain of $43.0 million before tax liability of $20.2 million during the third quarter of 2015. Buckeye will also pay the Company a growth premium equal to $3,000 for each new water meter installed within Valencia's prior service areas for a 20 -year period ending December 31, 2034, subject to a maximum payout of $45 million over the term of the agreement. For the years ended December 31, 2017 , 2016 , and 2015, the Company recognized $1.4 million , $1.2 million , and $624,000 , respectively, in other income within the consolidated financial statements related to the growth premium. In consideration of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 205-20-45-1, Presentation of Financial Statements – Discontinued Operations, the condemnation of Valencia transaction did not meet the criteria of discontinued operations. As the transaction did not change the services provided or the manner in which the Company operates, it was determined the transaction did not represent a strategic shift and therefore did not qualify for presentation as a discontinued operation. S ale of Willow Valley Water Co., Inc. On March 23, 2015, the Company reached an agreement to sell the operations and assets of Willow Valley Water Company, Inc. (“Willow Valley”) to EPCOR. EPCOR purchased the operations, assets, and rights used by Willow Valley to operate the utility system for $2.3 million . The transaction was approved by the Arizona Corporation Commission (“ACC”) on March 10, 2016, and the transaction closed on May 9, 2016. Per ASC 360-10-45-9, Impairment and Disposal of Long-Lived Assets, the assets and liabilities of Willow Valley were determined to meet the criteria to be classified as held for sale beginning with our March 31, 2015 consolidated financial statements. The criteria utilized to make this determination were: (i) management had the authority and had entered into an agreement to sell the assets of Willow Valley; (ii) the assets and liabilities were available for immediate sale in their present condition; (iii) the approval from the ACC was probable within the next year; (iv) a reasonable price had been agreed upon; and (v) it was unlikely that significant changes to the agreement would occur prior to approval. In consideration of ASC 205-20-45-1, the Willow Valley transaction did not meet the criteria for discontinued operations as the transaction did not change the services provided nor the manner in which the Company operates. Therefore, it was determined the transaction did not represent a strategic shift. A loss of $176,000 was recorded in other expense during the first quarter of 2015, when the assets and liabilities were classified as held for sale, to adjust the carrying value of the assets to the agreed upon fair value less cost to sell. An additional loss of $54,000 was recognized upon close of the sale of Willow Valley in the second quarter of 2016. Merger with GWR Global Water Resources Corp. (“GWRC”) On May 3, 2016, the Company completed the merger of GWRC into GWRI. At the time of the merger, GWRC ceased to exist as a British Columbia corporation and the Company continued as the surviving entity of the merger. See Note 7 – “Transactions with Related Parties”. In conjunction with the merger of GWRC into GWRI, the Company recorded $731,000 in accounts payable and $353,000 in deferred compensation on the books of GWRI that were previously recorded at GWRC. In addition to these liabilities, the Company also recorded an approximate $1.4 million tax liability associated with the transfer of GWRC from Canada to the United States, which liability has since been settled. A corresponding reduction in paid in capital was recorded with the merging of these liabilities into GWRI. The 8,726,747 outstanding common shares of the Company held by GWRC, and acquired by the Company at the time of merger, were recorded as treasury stock and were retired in December 2016. Initial Public Offering On April 27, 2016, the SEC declared effective the registration statement relating to the public offering of our common stock. On May 3, 2016, the Company completed the initial public offering of 1,164,800 shares of common stock at $6.25 per share for gross proceeds of approximately $7.3 million (the “U.S. IPO”). The Company granted the underwriter the option to purchase up to an additional 174,720 shares of common stock at the same price, which was exercised by the underwriter on May 11, 2016, for additional gross proceeds of $1.1 million . Our shares of common stock are listed on the NASDAQ Global Market and the Toronto Stock Exchange under the symbols “GWRS” and “GWR”, respectively. Share Retirement In December 2016 the Company retired all outstanding treasury shares obtained as part of the merger of GWRC into the Company. Sonoran Acquisition Liability On March 17, 2016, the Company entered into an agreement with Sonoran Utility Services, LLC (“Sonoran”) to amend certain provisions of the purchase and sale agreement related to the acquisition of Sonoran’s assets on June 15, 2005. The amended agreement allowed the Company to reduce its original $3.8 million acquisition liability due to Sonoran by approximately $1.0 million to $2.8 million , if the Company settled the amount due within ten days of the closing of the note purchase agreement relating to the issuance of the Company's senior secured notes (“Note Purchase Agreement”), see Note 9 – “Debt – 2016 Senior Secured Notes”. The Note Purchase Agreement closed on June 24, 2016 and the Sonoran liability was subsequently settled in June 2016. Upon settlement of the Sonoran acquisition liability, the Company recorded a gain of $954,000 in other income. Private Letter Ruling On June 2, 2016, the Company received a Private Letter Ruling from the Internal Revenue Service ("IRS") that, for purposes of deferring the approximately $19.4 million gain realized from the condemnation of the operations and assets of Valencia, determined that the assets converted upon the condemnation of such assets could be replaced through certain reclamation facility improvements contemplated by the Company under Internal Revenue Code §1033 as property similar or related in service or use. In June 2016, the Company converted all operating subsidiaries from corporations to limited liability companies to take full advantage of the benefits of such ruling. Pursuant to Internal Revenue Code §1033, the Company would have been able to defer the gain on condemnation through the end of 2017. On April 18, 2017, the Company filed a request for a one-year extension to defer the gain to the end of 2018, which the IRS approved on August 8, 2017. Following the approval of the extension, the Company has slightly modified the timing of certain planned investments within its capital improvement plan in accordance with Internal Revenue Code §1033. Accordingly, the Company substantially completed these investments in 2017, with some remaining improvements to be completed in early 2018. As a result of the Private Letter Ruling, the Company increased capital expenditures in 2017 as compared to recent years, and expects corresponding reductions to occur in 2018, 2019, and beyond. As of December 31, 2017 , our deferred tax liability relating to the Valencia condemnation was approximately $7.2 million . Acquisition of Eagletail Water Company On May 15, 2017, the Company acquired Eagletail Water Company ("Eagletail") via merger. At the time of acquisition, Eagletail, a small water utility located west of metropolitan Phoenix, added approximately 55 active water connections and eight square miles of approved service area to the Company’s existing regional service footprint. Total consideration was approximately $80,000 . As part of the transaction, the Company acquired assets of approximately $80,000 and assumed liabilities of approximately $78,000 . Significant Accounting Policies Regulation Our regulated utilities and certain other balances are subject to regulation by the ACC and are therefore subject to Accounting Standards Codification Topic 980, Regulated Operations (“ASC Topic 980”) (See Note 2 – “Regulatory Decision and Related Accounting and Policy Changes”). Property, plant, and equipment Property, plant, and equipment is stated at cost less accumulated depreciation provided on a straight-line basis (See Note 3 – “Property, Plant, and Equipment”). Depreciation rates for asset classes of utility property, plant, and equipment are established by the ACC. The cost of additions, including betterments and replacements of units of utility fixed assets are charged to utility property, plant, and equipment. When units of utility property are replaced, renewed, or retired, their cost plus removal or disposal costs, less salvage proceeds, is charged to accumulated depreciation. For non-utility property, plant, and equipment, depreciation is calculated by the straight-line method over the estimated useful lives of depreciable assets. Cost and accumulated depreciation for non-utility property, plant, and equipment retired or disposed of are removed from the accounts and any resulting gain or loss is included in earnings. In addition to third party costs, direct personnel costs and indirect construction overhead costs may be capitalized. Interest incurred during the construction period is also capitalized as a component of the cost of the constructed assets, which represents the cost of debt associated with construction activity. Expenditures for maintenance and repairs are charged to expense. Revenue Recognition—Water Services Water services revenues are recorded when service is rendered or water is delivered to customers. However, in addition to the monthly basic service charge, the determination and billing of water sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each reporting period, amounts of water delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is recorded as accrued revenue. Water connection fees are the fees associated with the application process to set up a customer to receive utility service on an existing water meter. These fees are approved by the ACC throu gh the regulatory process and are set based on the costs incurred to establish services including the application process, billing setup, in itial meter reading, and service transfer. Because the amounts charged for water connection fees are set by our regulator and not negotiated in conjunction with the pricing of ongoing water service, the connection fees represent the culmination of a separate earnings process and are recognized when the service is provided. For the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized $307,000 , $236,000 , and $276,000 in connection fees, respectively. Meter installation fees are the fees charged to developers or builders associated with installing new water meters. Certain fees for meters are regulated by the ACC, and are refundable to the end customer over a period of time. Refundable meter installation fees are recorded as a liability upon receipt. Other certain meter fees are negotiated directly with developers or builders and are not subject to ACC regulation and represent the culmination of a separate earnings process. These fees are recognized as revenue when the service is rendered, or when a water meter is installed. Revenue Recognition—Wastewater and Recycled Water Services Wastewater service revenues are generally recognized when service is rendered. Wastewater services are billed at a fixed monthly amount per connection, and recycled water services are billed monthly based on volumetric fees. Revenue Recognition—Unregulated Revenues Unregulated Revenues represent those revenues that are not subject to the ratemaking process of the ACC. Unregulated revenues are limited to rental revenue and imputed revenues resulting from certain infrastructure coordination and financing agreement arrangements. Allowance for Doubtful Accounts Provisions are made for doubtful accounts due to the inherent uncertainty around the collectability of accounts receivable. The allowance for doubtful accounts is recorded as bad debt expense, and is classified as general and administrative expense. The allowance for doubtful accounts is determined considering the age of the receivable balance, type of customer (e.g., residential or commercial), payment history, as well as specific identification of any known or expected collectability issues (see Note 4 – “Accounts Receivable”). Infrastructure coordination and financing fees Infrastructure coordination and financing agreements (“ICFAs”) are agreements with developers and homebuilders whereby GWRI, which owns the operating utilities, provides services to plan, coordinate, and finance the water and wastewater infrastructure that would otherwise be required to be performed or subcontracted by the developer or homebuilder. Services provided within these agreements include coordination of construction services for water and wastewater treatment facilities as well as financing, arranging, and coordinating the provision of utility services. ICFA revenue is recognized when the following conditions are met: • the fee is fixed and determinable; • the cash received is nonrefundable; • capacity currently exists to serve the specific lots; and • there are no additional significant performance obligations. As these arrangements are with developers and not with the end water or wastewater customer, revenue recognition coincides with the completion of our performance obligations under the agreement with the developer and our ability to provide fitted capacity for water and wastewater service. Payments received under the agreements are recorded as deferred revenue until the point at which all of the conditions described above are met. Historically ICFAs have been accounted for as revenue pursuant to the obligations being met as outlined above, or as contributions in aid of construction (“CIAC”) when funds were received. Pursuant to Rate Decision No. 74364, as funding is received 70% of ICFAs are now recorded as a hook-up fee (“HUF”) liability until the HUF liability is fully funded, with the remaining amount recorded as revenue once all components of revenue recognition are met (See Note 2 – “Regulatory Decision and Related Accounting and Policy Changes”). Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments in debt instruments with an original maturity of three months or less. Restricted Cash Restricted cash represents cash deposited as a debt service reserve for certain loans and bonds. The following table summarizes the restricted cash balance as of December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 HUF funds $ 9 $ 10 Certificate of deposits 427 218 $ 436 $ 228 Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s valuation allowance totaled zero and $8,500 as of December 31, 2017 and 2016 , respectively (see Note 10 – “Income Taxes”). We evaluate uncertain tax positions using a two-step approach. Recognition (step one) occurs when we conclude that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that more-likely-than-not will be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when we subsequently determine that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited, and to the extent that uncertain tax positions exist, we provide expanded disclosures. Basic and Diluted Earnings per Common Share As of December 31, 2017 , the Company had 740,000 options outstanding to acquire an equivalent number of shares of GWRI common stock. As of December 31, 2017 , 275,000 options were in the money, and had common share equivalents of 39,529 , which were included within the calculation of diluted earnings per share, along with $154,000 of unrecognized stock compensation. The remaining 465,000 options were out of the money in the period, and therefore the Company did not have any common share equivalents to be considered for purposes of calculating earnings per share. As of December 31, 2016 , the Company had 368,395 options outstanding, all options were in the money, and had common share equivalents of 19,467 , which were not included within the calculation of diluted earnings per share as to do so would be antidilutive in periods of net loss. As of December 31, 2015 , the Company had 43,395 options outstanding, which options were out of the money in the period, and therefore the Company did no t have any common share equivalents to be considered for purposes of calculating earnings per share. See Note 11 – “Deferred Compensation Awards”. The changes in weighted average common shares for the year ended December 31, 2015 relate to a share repurchase program initiated in May 2015 and completed in December 2015. Intangible Assets Intangible assets not subject to amortization consist of certain permits expected to be renewable indefinitely, water rights and certain service areas acquired in transactions which did not meet the definition of business combinations for accounting purposes, and are considered to have indefinite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more often if certain circumstances indicate a possible impairment may exist. Amortized intangible assets consist primarily of acquired ICFA contract rights. Pursuant to Rate Decision No. 71878 issued by the ACC on September 15, 2010 for the February 2009 filed rate cases for Santa Cruz, Palo Verde, Valencia, Greater Buckeye, Greater Tonopah, and Willow Valley (the “2010 Regulatory Rate Decision”), ICFA funds received were accounted for as CIAC. The Company established a regulatory liability against the Company’s intangible assets balance to offset the value of the intangible assets related to the expected receipt of ICFA fees in the future. As of January 1, 2014 the Company had a regulatory liability balance of $11.4 million . However, in 2014, in conjunction with Rate Decision No. 74364, the ACC determined that ICFA funds were no longer to be recorded as CIAC, but rather 70% of funds received should be recorded as HUF until the HUF liability is fully funded, with the remaining amount to be deferred and recognized according to the Company’s ICFA revenue recognition policy (see ‘Note 2 – Regulatory Decision and Related Accounting and Policy Changes”). Accordingly, in 2014 30% , or $3.4 million , of the regulatory liability was reversed in connection with the recognition of the rate decision. Debt Issuance Costs In connection with the issuance of some of our long-term debt, we have incurred legal and other costs that we believe are directly attributable to realizing the proceeds of the debt issued. These costs are netted against long-term debt and amortized as interest expense using the effective interest method over the term of the respective debt. Amortization of debt issuance costs and discounts totaled $44,000 for the year ended December 31, 2017 . Amortization of debt issuance costs and discounts totaled $2.6 million for the year ended December 31, 2016 , of which $2.2 million was for the write off of debt issuance costs and $428,000 was for the amortization for the year ended December 31, 2016 . Amortization of debt issuance costs and discounts totaled $486,000 for the year ended December 31, 2015 , of which $282,000 was for the write off of debt issuance costs related to the MidFirst loan which was retired in July 2015, and $204,000 was for the amortization for the year ended December 31, 2015 . Impairment of Long-Lived Assets Management evaluates the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. If an indicator of possible impairment exists, an undiscounted cash flow analysis would be prepared to determine whether there is an actual impairment. Measurement of the impairment loss is based on the fair value of the asset. Generally, fair value will be determined using appraisals or valuation techniques such as the present value of expected future cash flows. Advances and Contributions in Aid of Construction The Company has various agreements with developers and builders, whereby funds, water line extensions, or wastewater line extensions are provided to us by the developers and are considered refundable advances for construction. These advances in aid of construction (“AIAC”) are non-interest-bearing and are subject to refund to the developers through annual payments that are computed as a percentage of the total annual gross revenue earned from customers connected to utility services constructed under the agreement over a specified period. Upon the expiration of the agreements’ refunding period, the remaining balance of the advance becomes nonrefundable and at that time is considered CIAC. CIAC are amortized as a reduction of depreciation expense over the estimated remaining life of the related utility plant. For rate-making purposes, utility plant funded by advances or contributions in aid of construction are excluded from rate base. AIAC balances of $24,000 and $311,000 were transferred to CIAC for the years ended December 31, 2017 and 2016 , respectively. Fair Value of Financial Instruments The carrying values of cash equivalents, trade receivables, and accounts payable approximate fair value due to the short-term maturities of these instruments. See Note 9 – “Debt” for information as to the fair value of our long-term debt. Our refundable AIAC have a carrying value of $62.7 million and $62.0 million as of December 31, 2017 and 2016 , respectively. Portions of these non-interest-bearing instruments are payable annually through 2032 and amounts not paid by the contract expiration dates become nonrefundable. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rate increases. However, the fair value of these amounts would be less than their carrying value due to the non-interest-bearing feature. Asset Retirement Obligations Liabilities for asset retirement obligations are typically recorded at fair value in the period in which they are incurred. When the liability is initially recorded, the entity capitalizes a cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Our legal obligations for retirement reflect principally the retirement of wastewater treatment facilities, which are required to be closed in accordance with the Clean Closure Requirements of the Arizona Department of Environmental Quality (ADEQ). The Clean Closure Requirements of ADEQ for wastewater facilities are driven by a need to protect the environment from inadvertent contamination associated with the decommissioning of these systems. As such, our regulated subsidiaries incur asset retirement obligations. As of December 31, 2017 and 2016 , the Company held $427,000 and $218,000 in certificates of deposit, respectively, or letters of credit to benefit ADEQ for such anticipated closure costs. Water systems, unlike wastewater systems, do not require Aquifer Protection Permits or the associated Clean Closure Requirement obligation. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets; estimating the fair value of the costs of removal; estimating when final removal will occur; and determining the credit-adjusted, risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Estimating the fair value of the costs of removal were determined based on third-party costs. Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280— Segment Reporting the Company notes it is not organized around specific products and services, geographic regions, or regulatory environments. The Company currently operates in one geographic region within the Stat |
Regulatory Decision and Related
Regulatory Decision and Related Accounting and Policy Changes | 12 Months Ended |
Dec. 31, 2017 | |
Regulated Operations [Abstract] | |
Regulatory Decision and Related Accounting and Policy Changes | REGULATORY DECISION AND RELATED ACCOUNTING AND POLICY CHANGES Our regulated utilities and certain other balances are subject to regulation by the ACC and meet the requirements for regulatory accounting found within ASC Topic 980, Regulated Operations . In accordance with ASC Topic 980, rates charged to utility customers are intended to recover the costs of the provision of service plus a reasonable return in the same period. Changes to the rates are made through formal rate applications with the ACC, which we have done for all of our operating utilities and which are described below. On July 9, 2012, we filed formal rate applications with the ACC to adjust the revenue requirements for seven utilities representing a collective rate increase of approximately 28% over 2011 revenue levels. In August 2013, the Company entered into a settlement agreement with ACC Staff, the Residential Utility Consumers Office, the City of Maricopa, and other parties to the rate case. The settlement required approval by the ACC’s Commissioners before it could take effect. In February 2014, the rate case proceedings were completed and the ACC issued Rate Decision No. 74364, effectively approving the settlement agreement. The rulings of the decision include, but are not limited to, the following: • For the Company’s utilities, adjusting for the condemnation of the operations and assets of Valencia Water Company and sale of Willow Valley, a collective revenue requirement increase of $3.6 million based on 2011 test year service connections, phased-in over time, with the first increase in January 2015 as follows (in thousands): Incremental Cumulative 2015 $ 1,083 $ 1,083 2016 887 1,970 2017 335 2,305 2018 335 2,640 2019 335 2,975 2020 335 3,310 2021 335 3,645 Whereas this phase-in of additional revenues was determined using a 2011 test year, to the extent that the number of active service connections increases from 2011 levels, the additional revenues may be greater than the amounts set forth above. On the other hand, if active connections decrease or we experience declining usage per customer, we may not realize all of the anticipated revenues. • Full reversal of the imputation of CIAC balances associated with funds previously received under infrastructure coordination and financing agreements (“ICFAs”), as required in the Company’s last rate case. The reversal restored rate base or future rate base and had a significant impact of restoring shareholder equity on the balance sheet. • The Company has agreed to not enter into any new ICFAs. Existing ICFAs will remain in place, but a portion of future payments to be received under the ICFAs will be considered as hook-up fees, which are accounted for as CIAC once expended on plant. • A 9.5% return on common equity was adopted. • None of the Company’s utilities will file another rate application before May 31, 2016. GWRI’s subsidiaries, Global Water - Santa Cruz Water Company (“Santa Cruz”) and Global Water - Palo Verde Utilities Company (“Palo Verde”), may not file for another rate increase before May 31, 2017. The following provides additional discussion on accounting and policy changes resulting from Rate Decision No. 74364. Infrastructure Coordination and Financing Agreements – ICFAs are agreements with developers and homebuilders whereby GWRI, the indirect parent of the operating utilities, provides services to plan, coordinate, and finance the water and wastewater infrastructure that would otherwise be required to be performed or subcontracted by the developer or homebuilder. Under the ICFAs, GWRI has a contractual obligation to ensure physical capacity exists through its regulated utilities for water and wastewater to the landowner/developer when needed. This obligation persists regardless of connection growth. Fees for these services are typically a negotiated amount per equivalent dwelling unit for the specified development or portion of land. Payments are generally due in installments, with a portion due upon signing of the agreement, a portion due upon completion of certain milestones, and the final payment due upon final plat approval or sale of the subdivision. The payments are non-refundable. The agreements are generally recorded against the land and must be assumed in the event of a sale or transfer of the land. The regional planning and coordination of the infrastructure in the various service areas has been an important part of GWRI’s business model. Prior to January 1, 2010, GWRI accounted for funds received under ICFAs as revenue once the obligations specified in the ICFA were met. As these arrangements are with developers and not with the end water or wastewater customer, the timing of revenue recognition coincided with the completion of GWRI’s performance obligations under the agreement with the developer and with GWRI’s ability to provide fitted capacity for water and wastewater service through its regulated subsidiaries. The 2010 Regulatory Rate Decision No. 71878 established new rates for the recovery of reasonable costs incurred by the utilities and a return on invested capital. In determining the new annual revenue requirement, the ACC imputed a reduction to rate base for all amounts related to ICFA funds collected by the Company that the ACC deemed to be CIAC for rate making purposes. As a result of the decision by the ACC, GWRI changed its accounting policy for the accounting of ICFA funds. Effective January 1, 2010, GWRI recorded ICFA funds received as CIAC. Thereafter, the ICFA-related CIAC was amortized as a reduction of depreciation expense over the estimated depreciable life of the utility plant at the related utilities. With the issuance of Rate Decision No. 74364, in February 2014, the ACC again changed how ICFA funds would be characterized and accounted for going forward. Most notably, the ACC changed the rate treatment of ICFA funds, and ICFA funds already received would no longer be deemed CIAC for rate making purposes. In conjunction with Rate Decision No. 74364, we eliminated the CIAC liability and reversed the associated regulatory liability brought about by the 2010 ruling. ICFA funds already received or which had become due prior to the date of Rate Decision No. 74364 were accounted for in accordance with the Company’s ICFA revenue recognition policy that had been in place prior to the 2010 Regulatory Rate Decision, wherein the funds received are recognized as revenue once the obligations specified in the ICFA were met. Rate Decision No. 74364 prescribes that of the ICFA funds which come due and are paid subsequent to December 31, 2013, 70% of the ICFA funds will be recorded in the associated utility subsidiary as a hook-up fee (“HUF”) liability, with the remaining 30% to be recorded as deferred revenue, which the Company accounts for in accordance with the Company's ICFA revenue recognition policy. A HUF tariff, specifying the dollar value of a HUF for each utility, was approved by the ACC as part of Rate Decision No. 74364. The Company is responsible for assuring the full HUF value is paid from ICFA proceeds, and recorded in its full amount, even if it results in recording less than 30% of the ICFA fee as deferred revenue. The Company will account for the portion allocated to the HUF as a CIAC contribution. However, in accordance with the ACC directives the CIAC is not deducted from rate base until the HUF funds are expended for utility plant. Such funds will be segregated in a separate bank account and used for plant. A HUF liability will be established and will be amortized as a reduction of depreciation expense over the useful life of the related plant once the HUF funds are utilized for the construction of plant. For facilities required under a HUF or ICFA, the utilities must first use the HUF moneys received, after which, it may use debt or equity financing for the remainder of construction. The Company will record 30% of the funds received, up until the HUF liability is fully funded, as deferred revenue, which is to be recognized as revenue once the obligations specified within the ICFA are met. As of December 31, 2017 and December 31, 2016, ICFA deferred revenue recorded on the consolidated balance sheet totaled $19.7 million , which represents deferred revenue recorded for ICFA funds received on contracts that had become due prior to Rate Decision No. 74364. For ICFA contracts coming due after December 31, 2013, as funding is received 30% will be added to this balance with the remaining 70% recorded to a HUF liability, until the HUF liability is fully funded at which time any funding greater than the HUF liability will be recorded as deferred revenue. Regulatory asset – Under ASC Topic 980, rate regulated entities defer costs and credits on the balance sheet as regulatory assets and liabilities when it is probable that these costs and credits will be recognized in the rate making process in a period different from the period in which they would have been reflected in income by an unregulated company. Certain costs associated with our rate cases have been deferred on our balance sheet as regulatory assets as approved by the ACC. At December 31, 2016, the Company had the one regulatory asset in the amount of $110,000 , related to costs incurred in connection with Rate Decision No. 74364. This asset amortized over a three -year period ending December 31, 2017. Intangible assets / Regulatory liability – The Company previously recorded certain intangible assets related to ICFA contracts obtained in connection with our Santa Cruz, Palo Verde, and Sonoran acquisitions. The intangible assets represented the benefits to be received over time by virtue of having those contracts. Prior to January 1, 2010, the ICFA-related intangibles were amortized when ICFA funds were recognized as revenue. Effective January 1, 2010, in connection with the 2010 Regulatory Rate Decision, these assets became fully offset by a regulatory liability of $11.2 million since the imputation of ICFA funds as CIAC effectively resulted in the Company not being able to benefit (through rates) from the acquired ICFA contracts. Effective January 1, 2010, the gross ICFAs intangibles began to be amortized when cash was received in proportion to the amount of total cash expected to be received under the underlying agreements. However, such amortization expense was offset by a corresponding reduction of the regulatory liability in the same amount. As a result of Rate Decision No. 74364, the Company changed its policy around the ICFA related intangible assets. As discussed above, pursuant to Rate Decision No. 74364, approximately 70% of ICFA funds to be received in the future will be recorded as a HUF, until the HUF is fully funded at the Company’s applicable utility subsidiary. The remaining approximate 30% of future ICFA funds will be recorded at the parent company level and will be subject to the Company’s ICFA revenue recognition accounting policy. As the Company now expects to experience an economic benefit from the approximately 30% portion of future ICFA funds, 30% of the regulatory liability, or $3.4 million , was reversed in 2014. The remaining 70% of the regulatory liability, or $7.9 million , will continue to be recorded on the balance sheet. Subsequent to Rate Decision No. 74364, the intangible assets will continue to amortize when the corresponding ICFA funds are received in proportion to the amount of total cash expected to be received under the underlying agreements. The recognition of amortization expense will be partially offset by a corresponding reduction of the regulatory liability. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant, and equipment at December 31, 2017 and December 31, 2016 consist of the following (in thousands): December 31, 2017 December 31, 2016 Average Depreciation Life (in years) Mains/lines/sewers $ 117,381 $ 115,790 47 Plant 72,863 67,744 25 Equipment 29,904 29,100 10 Meters 12,693 4,637 12 Furniture, fixture and leasehold improvements 368 383 8 Computer and office equipment 720 1,056 5 Software 242 240 3 Land and land rights 861 764 Other 428 226 Construction work-in-process 53,591 53,426 Total property, plant and equipment 289,051 273,366 Less accumulated depreciation (75,592 ) (72,877 ) Net property, plant and equipment $ 213,459 $ 200,489 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable as of December 31, 2017 and December 31, 2016 consist of the following (in thousands): December 31, 2017 December 31, 2016 Billed receivables $ 1,691 $ 1,547 Less allowance for doubtful accounts (163 ) (76 ) Accounts receivable – net $ 1,528 $ 1,471 The following table summarizes the allowance for doubtful accounts activity as of and for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 (in thousands). Balance at Beginning of Period Additions Charged to Expense Charged to Other Accounts Write-offs Balance at End of Period Allowance for doubtful accounts: Year Ended December 31, 2017 $ (76 ) $ (125 ) $ — $ 38 $ (163 ) Year Ended December 31, 2016 $ (194 ) $ (52 ) $ — $ 170 $ (76 ) Year Ended December 31, 2015 $ (158 ) $ (36 ) $ (12 ) $ 12 $ (194 ) |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | EQUITY METHOD INVESTMENT On June 5, 2013, the Company sold Global Water Management, LLC (“GWM”), a wholly-owned subsidiary of GWRI, that owned and operated the FATHOM Water Management Holdings, LLP ("FATHOM™") business. In connection with the sale of GWM, the Company made a $1.6 million investment in FATHOM™ (the "FATHOM™ investment”). This limited partnership investment is accounted for under the equity method due to the FATHOM™ investment being considered more than minor. In March 2017, FATHOM ™ completed a round of financing, wherein our ownership percentage was reduced from 8.0% to 7.1% on a fully diluted basis. In conjunction with the recapitalization, the Company's equity interest was adjusted in accordance with ASC 323, Investments-Equity Method and Joint Ventures, wherein we recorded a $243,000 gain for the year ended December 31, 2017 . The adjustment to the carrying value of the FATHOM™ investment was calculated using our proportionate share of FATHOM™'s adjusted net equity. The gain was recorded within other income and expense in our consolidated statement of operations in the first quarter of 2017. The carrying value of the FATHOM™ investment consisted of a balance of $345,000 as of December 31, 2017 and $480,000 as of December 31, 2016 , and reflects our initial investment, the adjustments related to subsequent rounds of financing, and our proportionate share of FATHOM™'s cumulative earnings (losses). We evaluate the FATHOM™ investment for impairment whenever events or changes in circumstances indicate that the carrying value of the FATHOM™ investment may have experienced an “other-than-temporary” decline in value. Since the sale of GWM, the losses incurred on the FATHOM™ investment were greater than anticipated; however, based upon our evaluation of various relevant factors, including the recent round of financing and the ability of FATHOM™ to achieve and sustain an earnings capacity that would justify the carrying amount of the FATHOM™ investment, we do not believe the FATHOM™ investment to be impaired as of December 31, 2017 . We have evaluated whether the FATHOM™ investment qualifies as a variable interest entity (“VIE”) pursuant to the accounting guidance of ASC 810, Consolidations . Considering the potential that the total equity investment in the FATHOM™ investment may not be sufficient to absorb the losses of the FATHOM™ investment, the Company currently views the FATHOM™ investment as a VIE. However, considering the Company’s minority interest and limited involvement with the FATHOM™ business, the Company is not required to consolidate FATHOM™. Rather, the Company has accounted for the FATHOM™ investment under the equity method. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets as of December 31, 2017 and December 31, 2016 consisted of the following (in thousands): December 31, 2017 December 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount INDEFINITE LIVED INTANGIBLE ASSETS: CP Water Certificate of Convenience & Necessity service area $ 1,532 $ — $ 1,532 $ 1,532 $ — $ 1,532 Intangible trademark 13 — 13 13 — 13 1,545 — 1,545 1,545 — 1,545 AMORTIZED INTANGIBLE ASSETS: Acquired ICFAs 17,978 (12,154 ) 5,824 17,978 (12,154 ) 5,824 Sonoran contract rights 7,406 (2,003 ) 5,403 7,406 (2,003 ) 5,403 25,384 (14,157 ) 11,227 25,384 (14,157 ) 11,227 Total intangible assets $ 26,929 $ (14,157 ) $ 12,772 $ 26,929 $ (14,157 ) $ 12,772 Acquired ICFAs and Sonoran contract rights are amortized when cash is received in proportion to the amount of total cash expected to be received under the underlying agreements. Due to the uncertainty of the timing of when cash will be received under ICFA agreements and contract rights, we cannot reliably estimate when the remaining intangible assets' amortization will be recorded. No amortization was recorded for these balances for the years ended December 31, 2017 and December 31, 2016 . |
Transactions With Related Parti
Transactions With Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | TRANSACTIONS WITH RELATED PARTIES On January 19, 2016, GWRC announced that it agreed to pursue a reorganization transaction with the Company that resulted in GWRC merging with and into the Company (the “Reorganization Transaction”). GWRC was organized in 2010 to acquire shares of the Company, and held an approximate 47.8% interest in the Company prior to the merger. The Reorganization Transaction closed on May 3, 2016. As a result of the Reorganization Transaction, GWRC ceased to exist as a British Columbia corporation and the Company, governed by the corporate laws of the State of Delaware, is the surviving entity. GWRC was not part of the consolidated Company prior to the completion of the Reorganization Transaction. GWRC had no employees. GWRI provided for the ongoing management and general administration of GWRC’s business affairs pursuant to a management agreement between GWRC and GWRI to provide such services. Accordingly, GWRC was economically dependent on the Company. Services provided by the Company under the management agreement were provided at no charge to GWRC, and were not monetarily significant. However, GWRC incurred certain costs not covered by the management agreement. These included GWRC’s accounting fees, legal fees, listing fees, and other costs directly associated with its former status as a publicly traded company. Whereas GWRC did not expect to generate cash flows from operating activities, the operating costs incurred by GWRC and other cash requirements were paid by the Company. Amounts paid by the Company on GWRC’s behalf during the year s ended December 31, 2017 , 2016 , and 2015 totaled zero , $650,000 , and $1.4 million , respectively. The Company accounted for such payments as equity distributions to GWRC. In conjunction with the merger of GWRC into GWRI, the Company recorded $731,000 in accounts payable and $353,000 in deferred compensation on the books of GWRI that were previously recorded at GWRC. In addition to these liabilities, the Company also recorded an approximate $1.4 million tax liability associated with the transfer of GWRC from Canada to the United States, which liability has since been settled. A corresponding reduction in additional paid in capital was recorded with the merging of these liabilities into GWRI. For the years ended December 31, 2017 and 2016, no cash advance was provided to GWRC. For the year ended December 31, 2015, the Company provided cash advances of approximately $12.7 million to satisfy GWRC's short term cash obligations. The amount advanced was utilized to fund GWRC's monthly dividend, special one-time dividend paid in August 2015, and other cash requirements, as needed. The related party balance was reduced upon dividend declaration, when the amount declared is presented as a reduction in the Company’s equity. As of the closing of the Reorganization Transaction and December 31, 2015, the balance of the advance was zero . The Company provides medical benefits to our employees through our participation in a pooled plan sponsored by an affiliate of a shareholder and director of the Company. Medical claims paid to the plan were approximately $342,000 , $533,000 , and $493,000 for the year s ended December 31, 2017 , 2016 , and 2015, respectively. GWM has historically provided billing, customer service, and other support services for the Company’s regulated utilities. Amounts collected by GWM from the Company’s customers that GWM has not yet remitted to the Company are included within the “Due from affiliates” caption on the Company’s consolidated balance sheet. As of December 31, 2017 and December 31, 2016 , the unremitted balance totaled $430,000 and $333,000 , respectively. Notwithstanding the sale of GWM on June 5, 2013, GWM continues to provide these services to the Company’s regulated utilities under a long-term service agreement. Based on current service connections, annual fees to be paid to GWM for FATHOM™ services will be approximately $1.5 million at a rate of $6.24 per water account/month. For the year s ended December 31, 2017 , 2016 , and 2015 the Company incurred FATHOM™ service fees of approximately $1.5 million , $1.9 million , and $2.2 million , respectively. Pursuant to the purchase agreement for the sale of GWM, the Company is entitled to quarterly royalty payments based on a percentage of certain of GWM’s recurring revenues for a 10 -year period, up to a maximum of $15.0 million . In addition, the Company entered into a services agreement with GWM whereby the Company has agreed to use the FATHOM™ platform for all of its regulated utility services for an initial term of 10 years. The services agreement was amended on November 17, 2016, which extended the term of the contract through December 31, 2026 . As part of the amended agreement, the Company reduced the monthly rate per connection from $7.79 per water account/month to $6.24 per water account/month. Additionally, the scope of services was expanded to include a meter replacement program of approximately $11.4 million , wherein the Company replaced a majority of its meter infrastructure. As of December 31, 2017 , $10.7 million has been paid to GWM in connection with the meter exchange program. The services agreement is automatically renewable for successive 10 -year periods, unless notice of termination is given prior to any renewal period. The services agreement may be terminated by either party for default only and the termination of the services agreement will also result in the termination of the royalty payments payable to the Company. The Company made the election to record these quarterly royalty payments prospectively in income as the amounts are earned. Royalties recorded within other income totaled approximately $370,000 , $355,000 , and $326,000 for the year s ended December 31, 2017 , 2016 , and 2015, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses at December 31, 2017 and December 31, 2016 consist of the following (in thousands): December 31, 2017 December 31, 2016 Deferred compensation $ 2,171 $ 1,920 Property taxes 989 910 Meter replacement - related party 717 1,255 Interest 468 483 Dividend payable 464 458 Asset retirement obligation 427 216 Tax obligation related to GWRC merger — 178 Other accrued liabilities 2,016 2,182 Total accrued liabilities $ 7,252 $ 7,602 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The outstanding balances and maturity dates for short-term (including the current portion of long-term debt) and long-term debt as of December 31, 2017 and December 31, 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Short-term Long-term Short-term Long-term BONDS AND NOTES PAYABLE - 4.380% Series A 2016, maturing June 2028 $ — $ 28,750 $ — $ 28,750 4.580% Series B 2016, maturing June 2036 — 86,250 — 86,250 1.200% WIFA Loan, maturing October 2032 3 41 — — 4.650% Harquahala Loan, maturing January 2021 5 15 — — 8 115,056 — 115,000 OTHER Capital lease obligations — — 25 54 Debt issuance costs — (693 ) — (737 ) Total debt $ 8 $ 114,363 $ 25 $ 114,317 2016 Senior Secured Notes On June 24, 2016, the Company issued two series of senior secured notes with an aggregate total principal balance of $115.0 million at a blended interest rate of 4.55% . Series A carries a principal balance of $28.8 million and bears an interest rate of 4.38% over a twelve year term, with the principal payment due on June 15, 2028 . Series B carries a principal balance of $86.3 million and bears an interest rate of 4.58% over a 20 -year term. Series B is interest only for the first five years, with $1.9 million principal payments paid semiannually thereafter. The proceeds of the senior secured notes were primarily used to refinance the previously outstanding long-term tax exempt bonds, which were subject to an early redemption option at 103% , plus accrued interest, as a result of the U.S. IPO. As part of the refinancing of the long-term debt, the Company paid a prepayment penalty of $3.2 million and wrote off the remaining $2.2 million in capitalized loan fees related to the tax exempt bonds, which were recorded as additional interest expense in the second quarter of 2016. The senior secured notes are collateralized by a security interest in the Company’s equity interest in its subsidiaries, including all payments representing profits and qualifying distributions. The senior secured notes require the Company maintain a debt service coverage ratio of consolidated EBITDA to consolidated debt service of at least 1.10 to 1.00. Consolidated EBITDA is calculated as net income plus depreciation, taxes, interest and other non-cash charges net of non-cash income. Consolidated debt service is calculated as interest expense, principal payments, and dividend or stock repurchases. The senior secured notes also contain a provision limiting the payment of dividends if the Company falls below a debt service ratio of 1.25 . However, for the quarter ending June 30, 2021 through the quarter ending March 31, 2024, the ratio drops to 1.20 . As of December 31, 2017 , the Company was in compliance with its financial debt covenants. Eagletail Loans In May 2017, the Company acquired Eagletail. As part of the acquisition, the Company assumed two unsecured loans held by Eagletail. These loans are payable to the Water Infrastructure Finance Authority of Arizona ("WIFA") and Harquahala Valley Community Benefits Foundation ("Harquahala") and as of December 31, 2017 carry balances of $44,000 and $20,000 , respectively. The WIFA loan bears an interest rate of 1.20% over a 20 -year term, while the Harquahala loan bears an interest rate of 4.65% over a 15 -year term. Tax Exempt Bonds We issued tax-exempt bonds through The Industrial Development Authority of the County of Pima in the amount of $36.5 million on December 28, 2006; $53.6 million , net of a discount of $511,000 , on November 19, 2007; and $24.6 million on October 1, 2008. Proceeds from these bonds were used for qualifying costs of constructing and equipping the water and wastewater treatment facilities of our subsidiaries, Palo Verde and Santa Cruz. The tax-exempt bonds were redeemed in June 2016 with proceeds from the 2016 senior secured notes. At December 31, 2017 , the Company had no capital lease obligations outstanding and the remaining aggregate annual maturities of debt for the years ended December 31 are as follows (in thousands): Debt 2018 $ 8 2019 8 2020 10 2021 1,921 2022 3,836 Thereafter 109,281 Total $ 115,064 At December 31, 2017 , the carrying value of the non-current portion of long-term debt was $115.1 million , with an estimated fair value of $115.7 million . At December 31, 2016 , the carrying value of the non-current portion of long-term debt was $115.0 million , with an estimated fair value of $108.4 million . The fair value of our debt was estimated based on interest rates considered available for instruments of similar terms and remaining maturities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2017 and December 31, 2016 , the Company did no t have any uncertain tax positions. On December 22, 2017, President Trump signed into law the TCJA. Substantially all of the provisions of the TCJA are effective for taxable years beginning after December 31, 2017. The TCJA includes significant changes to the Internal Revenue Code of 1986, as amended (the “Code”), including amendments which significantly change the taxation of individuals and business entities, and includes specific provisions related to regulated public utilities. Among its significant provisions, the TCJA (i) reduces the federal corporate income tax rate from 35% to 21%; (ii) eliminates bonus depreciation for regulated utilities, but allows 100% expensing for the cost of qualified property for non-regulated businesses; (iii) eliminates the provisions that treated AIAC and CIAC provided to regulated water utilities as non-taxable; (iv) eliminates the domestic production activities deduction, and (v) limits the amount of net interest that can be deducted; however, this limitation is not applicable to regulated utilities and, therefore is not anticipated to have a material impact to the Company’s ability to deduct net interest. Non-regulated segments of the Company’s business will be able to take advantage of the full expensing provisions of the TCJA. Changes in the Code from the TCJA had a material impact on our financial statements in 2017. Under GAAP, specifically Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, the tax effects of changes in tax laws must be recognized in the period in which the law is enacted. ASC 740 also requires deferred income tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. Thus, at the date of enactment, the Company’s deferred income taxes were re-measured based upon the new tax rate. For the Company’s regulated entities, substantially all of the change in deferred income taxes is recorded as an offset to either a regulatory asset or liability because the impact of changes in the rates are expected to be recovered from or refunded to customers. For deferred taxes related to the Company’s unregulated operations, the change in deferred income taxes is recorded as a non-cash re-measurement adjustment to earnings. The re-measurement of deferred income taxes at the new federal tax rate decreased income tax expense by $2.3 million for the year ended December 31, 2017. Additionally, the Company recorded a net regulatory asset of $1.3 million . Following the enactment of the TCJA, the staff of the U.S. Securities and Exchange Commission (the “SEC”) issued Staff Accounting Bulletin 118 — "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" (SAB 118) which provides for a measurement period of up to one year from the enactment date to complete accounting under GAAP for the tax effects of the legislation. The Company has made a reasonable estimate for the measurement and accounting of certain effects of the TCJA on deferred income tax assets and liabilities and related regulatory assets and liabilities which have been reflected in these financial statements, as discussed above. The Company has not recorded the impact of the TCJA for certain other items for which it has not yet been able to gather, prepare, and analyze the necessary information in reasonable detail to complete the ASC 740 accounting treatment. For these items, which include the impact of the TCJA on state income taxes, the current and deferred income taxes were recognized and measured based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted. The determination of the impact of the income tax effects of these items, as well as the estimates we have recorded, will require additional analysis of historical records, further interpretation of the TCJA from yet to be issued U.S. Treasury regulations, and an evaluation of future administrative interpretations, court decisions, accounting interpretations, or other developments relating to the TCJA. The income tax benefit from continuing operations for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 is comprised of the following (in thousands): 2017 Federal State Total Current income tax expense $ 138 $ — $ 138 Deferred income tax expense (benefit) (993 ) 254 (739 ) Income tax expense (benefit) $ (855 ) $ 254 $ (601 ) 2016 Federal State Total Current income tax expense $ 121 $ — $ 121 Deferred income tax benefit (1,285 ) (123 ) $ (1,408 ) Income tax benefit $ (1,164 ) $ (123 ) $ (1,287 ) 2015 Federal State Total Current income tax expense $ 63 $ — $ 63 Deferred income tax expense 17,735 2,825 20,560 Income tax expense $ 17,798 $ 2,825 $ 20,623 The income tax benefit for the years ended December 31, 2017 , 2016 , and 2015 differs from the amount that would be computed using the federal statutory income tax rate due to the following (in thousands): For the Years Ended December 31, 2017 2016 2015 Computed federal tax expense (benefit) at statutory rate $ 1,343 $ (1,291 ) $ 14,275 State income taxes - net of federal tax benefit 126 (123 ) 1,865 Gain on condemnation of Valencia — — 4,312 Federal tax rate change (2,296 ) — — IRC Section 453A interest 113 121 63 Equity compensation 83 — — Other differences 30 6 108 Income tax expense $ (601 ) $ (1,287 ) $ 20,623 ASC Topic 740, Income Taxes , prescribes the method to determine whether a deferred tax asset is realizable and significant weight is given to evidence that it can be objectively verified. As of December 31, 2017 and 2016 , the Company’s valuation allowance totaled zero and $8,500 , respectively, which related to state net operating loss carryforwards expected to expire prior to utilization. The following table summarizes the Company’s temporary differences between book and tax accounting that give rise to the deferred tax assets and deferred tax liabilities, including the valuation allowance, as of December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 DEFERRED TAX ASSETS: Taxable meter deposits $ 33 $ 40 Net operating loss carry forwards 2,087 4,976 Balterra intangible asset acquisition 224 336 Deferred gain on Sale of GWM 1,132 1,652 Deferred gain on ICFA funds received 4,911 7,350 Equity investment loss 341 459 Other 1,040 1,404 Total deferred tax assets 9,768 16,217 Valuation allowance — (9 ) Net deferred tax asset 9,768 16,208 DEFERRED TAX LIABILITIES: Regulatory asset (315 ) — CP Water intangible asset acquisition (381 ) (571 ) ICFA intangible asset (577 ) (502 ) Property, plant and equipment (4,392 ) (642 ) Gain on condemnation of Valencia (7,217 ) (17,078 ) Total deferred tax liabilities (12,882 ) (18,793 ) Net deferred tax liability $ (3,114 ) $ (2,585 ) As of December 31, 2017 , we have approximately $9.4 million in federal net operating loss (“NOL”) carry forwards and $3.2 million in state NOLs available to offset future taxable income, with federal and state NOLs expiring in 2031-2036. The effective tax rates used for the years ended December 31, 2017 , 2016 , and 2015 were ( 15.2% ), 33.9% , and 49.1% , respectively. The income tax provision was computed based on the Company’s estimated effective tax rate and forecasted income expected for the full year, including the impact of any unusual, infrequent, or non-recurring items. The effective tax rate for the year ended December 31, 2017 was less than the federal statutory rate of 34% primarily due to the impact of federal tax reform. |
Deferred Compensation Awards
Deferred Compensation Awards | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Deferred Compensation Awards | DEFERRED COMPENSATION AWARDS Stock-based compensation Stock-based compensation related to option awards is measured based on the fair value of the award. The fair value of stock option awards is determined using a Black-Scholes option-pricing model. We recognize compensation expense associated with the options over the vesting period. 2016 stock option grant In May 2016, GWRI’s Board of Directors granted stock options to acquire 325,000 shares of GWRI’s common stock to the members of the board. The options were granted with an exercise price of $7.50 , the market price of the Company’s common shares on the NASDAQ Global Market at the close of business on May 20, 2016. The options vest over a two -year period, with 50% vesting in May 2017 and 50% vesting in May 2018. The options have a three -year life. The Company will expense the $348,000 fair value of the stock option grant ratably over the two -year vesting period in accordance with ASC 323. Stock-based compensation expense of $174,000 and $106,000 was recorded for the years ended December 31, 2017 and December 31, 2016 , respectively. No stock-based compensation expense was recorded for the year ended December 31, 2015. As of December 31, 2017 , 50,000 options have been exercised with 275,000 outstanding. 2017 stock option grant In August 2017, GWRI's Board of Directors granted stock options to acquire 465,000 shares of GWRI's common stock to employees throughout the Company. The options were granted with an exercise price of $9.40 , the market price of the Company's common shares on the NASDAQ Global Market at the close of business on August 10, 2017. The options vest over a four -year period, with 25% vesting in August 2018, 25% vesting in August 2019, 25% vesting in August 2020, and 25% vesting in August 2021. The options have a 10 -year life. The Company will expense the $1.3 million fair value of the stock option grant ratably over the four -year vesting period in accordance with ASC 323. Stock-based compensation expense of $123,000 was recorded for the year ended December 31, 2017 . No stock-based compensation expense was recorded for the years ended December 31, 2016 and December 31, 2015. Phantom stock compensation On December 30, 2010, we adopted a phantom stock unit plan authorizing the directors of the Company to issue phantom stock units (‘‘PSUs’’) to our employees. Following the consummation of the Reorganization Transaction, the awarded PSUs have been amended such that the outstanding units track the value of GWRI’s share price. The vesting of the awards has not changed. The PSUs give rise to a right of the holder to receive a cash payment the value of which, on a particular date, is the market value of the equivalent number of shares of GWRI at that date. The issuance of PSUs as a core component of employee compensation was intended to strengthen the alignment of interests between the employees of the Company and the shareholders of GWRI by linking their holdings and a portion of their compensation to the future value of the common shares of GWRI. PSUs are accounted for as liability compensatory awards under ASC 710, Compensation – General , rather than as equity awards. PSU awards are remeasured each period and a liability is recorded equal to GRWI’s closing share price as of the balance sheet date multiplied by the number of units vested and outstanding. The value of the benefits is recorded as an expense in the Company’s financial statements over the related vesting period. Vesting occurs ratably over 12 consecutive quarters beginning in the period granted. The following table details total awards granted and the number of units outstanding as of December 31, 2017 along with the amounts paid to holders of the PSUs for the years ended December 31, 2017 , 2016 , and 2015 (in thousands, except unit amounts): Amounts Paid For the Year Ended December 31, Grant Date Units Granted Units Outstanding 2017 2016 2015 Q4 2010 350,000 — $ — $ — $ 1,398 Q1 2012 135,079 — — — 38 Q1 2013 76,492 — — 29 110 Q1 2014 8,775 — 3 10 8 Q1 2015 28,828 2,402 90 65 38 Q1 2016 34,830 14,513 108 63 — Q1 2017 22,712 17,034 53 — — Total 656,716 33,949 $ 254 $ 167 $ 1,592 Stock appreciation rights compensation Beginning January 2012, in an effort to reward employees for their performance, the Company adopted a stock appreciation rights plan authorizing the directors of the Company to issue stock appreciation rights (“SARs”) to our employees. Following the consummation of the Reorganization Transaction, the value of the SARs issued under the plan track the performance of GWRI’s shares. Each holder has the right to receive a cash payment amounting to the difference between the exercise price and the closing price of GWRI’s common shares on the exercise date, provided that the closing price is in excess of the exercise price. Holders of SARs may exercise their awards once vested. Individuals who voluntarily or involuntarily leave the Company forfeit their rights under the awards. The Company historically accounted for SARs as liability compensatory awards under ASC 710, Compensation – General , valued using the intrinsic value method, as permitted by ASC 718 for nonpublic entities, with changes to the value of the SARs recognized as compensation expense at each quarterly reporting date. In connection with becoming a public company, as defined in ASC 718, in the second quarter of 2016, the Company was required to change its methodology for valuing the SARs. While the SARs will continue to be remeasured at each quarterly reporting date, the SARs are required to be accounted for prospectively at fair value using a fair value pricing model, such as Black-Scholes. The Company recorded the impact of the change in valuation methods as a cumulative effect of a change in accounting principle, as permitted by ASC 250. The effect of the change increased the SAR liability by $103,000 which was the difference in compensation cost measured using the intrinsic value method and the fair value method. An offsetting change to accumulated deficit in the consolidated balance sheet was recorded with the revaluation, net of $38,000 in taxes. Any future changes in fair value will be recorded as compensation expense in the consolidated statement of operations. The following table details the recipients of the SARs awards, the grant date, units granted, exercise price, outstanding shares as of December 31, 2017 and amounts paid during the years ended December 31, 2017 , 2016, and 2015 (in thousands, except unit and per unit amounts): Amounts Paid For the Year Ended December 31, Recipients Grant Date Units Granted Exercise Price Units Outstanding 2017 2016 2015 Employees below senior management level (1) Q1 2012 152,091 C$ 4.00 — $ — $ — $ 67 Key Executive (2)(4) Q3 2013 100,000 $ 1.59 — $ 366 $ 151 $ 37 Key Executive (2)(5) Q4 2013 100,000 $ 2.69 — 312 137 Members of Management (2)(6) Q1 2015 299,000 $ 4.26 233,000 — 112 Key Executives (3)(7) Q2 2015 300,000 $ 5.13 300,000 — — Members of Management (2)(8) Q3 2017 103,000 $ 9.40 103,000 — — Total 1,054,091 636,000 $ 678 $ 400 $ 104 (1) The SARs vest in equal installments over four quarters and expired four years after the date of issuance. (2) The SARs vest ratably over sixteen quarters from the grant date. (3) The SARs vest over sixteen quarters, vesting 20% per year for the first three years, with the remainder, 40% , vesting in year four. (4) The exercise price was determined by taking the weighted average GWRC share price of the five days prior to the grant date of July 1, 2013. (5) The exercise price was determined by taking the weighted average GWRC share price of the 30 days prior to the grant date of November 14, 2013. (6) The exercise price was determined to be the fair market value of one share of GWRC stock on the grant date of February 11, 2015. (7) The exercise price was determined to be the fair market value of one share of GWRC stock on the grant date of May 8, 2015. (8) The exercise price was determined to be the fair market value of one share of GWRI stock on the grant date of August 10, 2017 As a result of the merger of GWRC into the Company and the U.S. IPO, the exercise prices for the preceding awards were translated to U.S. dollars using the prevailing noon-day Bank of Canada foreign exchange rate of US$0.7969 per CAD $1.00 as measured on May 2, 2016, the day prior to the closing of the merger. The vesting of the awards has not changed. Subsequent to the merger, each SAR provides the holder the right to receive a cash payment amounting to the difference between the per share exercise price and the closing price of GWRI’s common shares on the exercise date, provided that the closing price is in excess of exercise price per share. For the year s ended December 31, 2017 , 2016 , and 2015, the Company recorded approximately $1.1 million , $1.8 million , and $695,000 of compensation expense related to the PSUs and SARs, respectively. Based on GWRI’s closing share price on December 29, 2017 , deferred compensation expense to be recognized over future periods is estimated for the years ending December 31 as follows (in thousands): PSUs SARs 2018 $ 177 $ 891 2019 70 192 2020 — 64 2021 — 48 Total $ 247 $ 1,195 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following is supplemental cash flow information for the year s ended December 31, 2017 , 2016 , and 2015 (in thousands): For the Year Ended December 31, 2017 2016 2015 Supplemental cash flow information: Cash paid for interest $ 5,224 $ 5,969 $ 7,475 Cash paid for GWRC tax liability $ 125 $ — $ — Cash paid for bond prepayment fee $ — $ 3,201 $ — Cash paid for taxes $ 120 $ 184 $ — Non-cash financing and investing activities: Capital expenditures included in accounts payable and accrued liabilities $ 1,090 $ 2,909 $ 184 Equity method investment gain on recapitalization of FATHOM™ $ 243 $ — $ — Deferred compensation change in accounting principle $ — $ 103 $ — Reclassification of deferred IPO costs to equity $ — $ 97 $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments – Prior to the sale of GWM, we leased certain office space in Arizona under operating leases with terms that expired in February 2016. The operating lease agreements were between GWM and the landlord. Accordingly, effective June 2013 through February 2016, the Company was not a party under the lease agreements. GWRI subleased a portion of the office space covered under the GWM lease agreements. In February 2016, the Company entered into a three -year lease agreement with the landlord to occupy the same space previously subleased under GWM's lease agreements, inclusive of necessary facility upgrades. Beginning in March 2016, the Company began recording approximately $8,000 in monthly rent expense related to the new agreement. Rent expense arising from the operating leases totaled approximately $98,000 , $92,000 , and $64,000 for the year s ended December 31, 2017 , 2016 , and 2015, respectively. Contingencies From time to time, in the ordinary course of business, the Company may be subject to pending or threatened lawsuits in which claims for monetary damages are asserted. Management is not aware of any legal proceeding of which the ultimate resolution could materially affect our financial position, results of operations, or cash flows. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarter First Second Third Fourth Year Ended December 31, 2017 Revenues $ 6,791 $ 8,145 $ 8,472 $ 7,800 Operating income $ 1,101 $ 1,712 $ 2,810 $ 1,721 Net income $ 189 $ 425 $ 1,203 $ 2,734 Basic earnings per common share $ 0.01 $ 0.02 $ 0.06 $ 0.14 Diluted earnings per common share $ 0.01 $ 0.02 $ 0.06 $ 0.14 Quarter First Second Third Fourth Year Ended December 31, 2016 Revenues $ 6,816 $ 7,589 $ 8,180 $ 7,214 Operating income $ 1,061 $ 925 $ 2,887 $ 938 Net income/(loss) $ (314 ) $ (3,532 ) $ 1,285 $ 48 Basic earnings/(loss) per common share $ (0.02 ) $ (0.18 ) $ 0.07 $ — Diluted earnings/(loss) per common share $ (0.02 ) $ (0.18 ) $ 0.07 $ — |
Description of Business, Basi22
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the accounts of GWRI and its subsidiaries. All significant intercompany account balances and transactions have been eliminated in consolidation. The Company prepares its financial statements in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The U.S. dollar is the Company’s reporting currency and functional currency. The Company qualifies as an “emerging growth company”, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), under the rules and regulations of the SEC. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. The Company has elected to take advantage of these provisions for up to five years or such earlier time that the Company is no longer an emerging growth company. The Company has elected to take advantage of some of the reduced disclosure obligations regarding financial statements. Also, as an emerging growth company, the Company can elect to delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has chosen to take advantage of this extended accounting transition provision. Certain prior period information has been adjusted to conform to the current year presentation to reflect a 100.68 to 1.00 stock split effectuated on April 28, 2016. All share and per share amounts presented in these financial statements have been retrospectively adjusted to reflect the impact of the stock split. |
Regulation | Regulation Our regulated utilities and certain other balances are subject to regulation by the ACC and are therefore subject to Accounting Standards Codification Topic 980, Regulated Operations (“ASC Topic 980”) (See Note 2 – “Regulatory Decision and Related Accounting and Policy Changes”). |
Property, plant and equipment | Property, plant, and equipment Property, plant, and equipment is stated at cost less accumulated depreciation provided on a straight-line basis (See Note 3 – “Property, Plant, and Equipment”). Depreciation rates for asset classes of utility property, plant, and equipment are established by the ACC. The cost of additions, including betterments and replacements of units of utility fixed assets are charged to utility property, plant, and equipment. When units of utility property are replaced, renewed, or retired, their cost plus removal or disposal costs, less salvage proceeds, is charged to accumulated depreciation. For non-utility property, plant, and equipment, depreciation is calculated by the straight-line method over the estimated useful lives of depreciable assets. Cost and accumulated depreciation for non-utility property, plant, and equipment retired or disposed of are removed from the accounts and any resulting gain or loss is included in earnings. In addition to third party costs, direct personnel costs and indirect construction overhead costs may be capitalized. Interest incurred during the construction period is also capitalized as a component of the cost of the constructed assets, which represents the cost of debt associated with construction activity. Expenditures for maintenance and repairs are charged to expense. |
Revenue Recognition | Revenue Recognition—Water Services Water services revenues are recorded when service is rendered or water is delivered to customers. However, in addition to the monthly basic service charge, the determination and billing of water sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each reporting period, amounts of water delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is recorded as accrued revenue. Water connection fees are the fees associated with the application process to set up a customer to receive utility service on an existing water meter. These fees are approved by the ACC throu gh the regulatory process and are set based on the costs incurred to establish services including the application process, billing setup, in itial meter reading, and service transfer. Because the amounts charged for water connection fees are set by our regulator and not negotiated in conjunction with the pricing of ongoing water service, the connection fees represent the culmination of a separate earnings process and are recognized when the service is provided. For the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized $307,000 , $236,000 , and $276,000 in connection fees, respectively. Meter installation fees are the fees charged to developers or builders associated with installing new water meters. Certain fees for meters are regulated by the ACC, and are refundable to the end customer over a period of time. Refundable meter installation fees are recorded as a liability upon receipt. Other certain meter fees are negotiated directly with developers or builders and are not subject to ACC regulation and represent the culmination of a separate earnings process. These fees are recognized as revenue when the service is rendered, or when a water meter is installed. Revenue Recognition—Wastewater and Recycled Water Services Wastewater service revenues are generally recognized when service is rendered. Wastewater services are billed at a fixed monthly amount per connection, and recycled water services are billed monthly based on volumetric fees. Revenue Recognition—Unregulated Revenues Unregulated Revenues represent those revenues that are not subject to the ratemaking process of the ACC. Unregulated revenues are limited to rental revenue and imputed revenues resulting from certain infrastructure coordination and financing agreement arrangements. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Provisions are made for doubtful accounts due to the inherent uncertainty around the collectability of accounts receivable. The allowance for doubtful accounts is recorded as bad debt expense, and is classified as general and administrative expense. The allowance for doubtful accounts is determined considering the age of the receivable balance, type of customer (e.g., residential or commercial), payment history, as well as specific identification of any known or expected collectability issues (see Note 4 – “Accounts Receivable”). |
Infrastructure coordination and financing fees | Infrastructure coordination and financing fees Infrastructure coordination and financing agreements (“ICFAs”) are agreements with developers and homebuilders whereby GWRI, which owns the operating utilities, provides services to plan, coordinate, and finance the water and wastewater infrastructure that would otherwise be required to be performed or subcontracted by the developer or homebuilder. Services provided within these agreements include coordination of construction services for water and wastewater treatment facilities as well as financing, arranging, and coordinating the provision of utility services. ICFA revenue is recognized when the following conditions are met: • the fee is fixed and determinable; • the cash received is nonrefundable; • capacity currently exists to serve the specific lots; and • there are no additional significant performance obligations. As these arrangements are with developers and not with the end water or wastewater customer, revenue recognition coincides with the completion of our performance obligations under the agreement with the developer and our ability to provide fitted capacity for water and wastewater service. Payments received under the agreements are recorded as deferred revenue until the point at which all of the conditions described above are met. Historically ICFAs have been accounted for as revenue pursuant to the obligations being met as outlined above, or as contributions in aid of construction (“CIAC”) when funds were received. Pursuant to Rate Decision No. 74364, as funding is received 70% of ICFAs are now recorded as a hook-up fee (“HUF”) liability until the HUF liability is fully funded, with the remaining amount recorded as revenue once all components of revenue recognition are met (See Note 2 – “Regulatory Decision and Related Accounting and Policy Changes”). |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments in debt instruments with an original maturity of three months or less. |
Restricted Cash | Restricted Cash Restricted cash represents cash deposited as a debt service reserve for certain loans and bonds. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s valuation allowance totaled zero and $8,500 as of December 31, 2017 and 2016 , respectively (see Note 10 – “Income Taxes”). We evaluate uncertain tax positions using a two-step approach. Recognition (step one) occurs when we conclude that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that more-likely-than-not will be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when we subsequently determine that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited, and to the extent that uncertain tax positions exist, we provide expanded disclosures. |
Basic and Diluted Earnings per Common Share | Basic and Diluted Earnings per Common Share As of December 31, 2017 , the Company had 740,000 options outstanding to acquire an equivalent number of shares of GWRI common stock. As of December 31, 2017 , 275,000 options were in the money, and had common share equivalents of 39,529 , which were included within the calculation of diluted earnings per share, along with $154,000 of unrecognized stock compensation. The remaining 465,000 options were out of the money in the period, and therefore the Company did not have any common share equivalents to be considered for purposes of calculating earnings per share. As of December 31, 2016 , the Company had 368,395 options outstanding, all options were in the money, and had common share equivalents of 19,467 , which were not included within the calculation of diluted earnings per share as to do so would be antidilutive in periods of net loss. As of December 31, 2015 , the Company had 43,395 options outstanding, which options were out of the money in the period, and therefore the Company did no t have any common share equivalents to be considered for purposes of calculating earnings per share. See Note 11 – “Deferred Compensation Awards”. The changes in weighted average common shares for the year ended December 31, 2015 relate to a share repurchase program initiated in May 2015 and completed in December 2015. |
Intangible Assets | Intangible Assets Intangible assets not subject to amortization consist of certain permits expected to be renewable indefinitely, water rights and certain service areas acquired in transactions which did not meet the definition of business combinations for accounting purposes, and are considered to have indefinite lives. Intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more often if certain circumstances indicate a possible impairment may exist. Amortized intangible assets consist primarily of acquired ICFA contract rights. Pursuant to Rate Decision No. 71878 issued by the ACC on September 15, 2010 for the February 2009 filed rate cases for Santa Cruz, Palo Verde, Valencia, Greater Buckeye, Greater Tonopah, and Willow Valley (the “2010 Regulatory Rate Decision”), ICFA funds received were accounted for as CIAC. The Company established a regulatory liability against the Company’s intangible assets balance to offset the value of the intangible assets related to the expected receipt of ICFA fees in the future. |
Debt Issuance Costs | Debt Issuance Costs In connection with the issuance of some of our long-term debt, we have incurred legal and other costs that we believe are directly attributable to realizing the proceeds of the debt issued. These costs are netted against long-term debt and amortized as interest expense using the effective interest method over the term of the respective debt. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Management evaluates the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. If an indicator of possible impairment exists, an undiscounted cash flow analysis would be prepared to determine whether there is an actual impairment. Measurement of the impairment loss is based on the fair value of the asset. Generally, fair value will be determined using appraisals or valuation techniques such as the present value of expected future cash flows. |
Advances and Contributions in Aid of Construction | Advances and Contributions in Aid of Construction The Company has various agreements with developers and builders, whereby funds, water line extensions, or wastewater line extensions are provided to us by the developers and are considered refundable advances for construction. These advances in aid of construction (“AIAC”) are non-interest-bearing and are subject to refund to the developers through annual payments that are computed as a percentage of the total annual gross revenue earned from customers connected to utility services constructed under the agreement over a specified period. Upon the expiration of the agreements’ refunding period, the remaining balance of the advance becomes nonrefundable and at that time is considered CIAC. CIAC are amortized as a reduction of depreciation expense over the estimated remaining life of the related utility plant. For rate-making purposes, utility plant funded by advances or contributions in aid of construction are excluded from rate base. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of cash equivalents, trade receivables, and accounts payable approximate fair value due to the short-term maturities of these instruments. See Note 9 – “Debt” for information as to the fair value of our long-term debt. Our refundable AIAC have a carrying value of $62.7 million and $62.0 million as of December 31, 2017 and 2016 , respectively. Portions of these non-interest-bearing instruments are payable annually through 2032 and amounts not paid by the contract expiration dates become nonrefundable. Their relative fair values cannot be accurately estimated because future refund payments depend on several variables, including new customer connections, customer consumption levels, and future rate increases. However, the fair value of these amounts would be less than their carrying value due to the non-interest-bearing feature. |
Asset Retirement Obligations | Asset Retirement Obligations Liabilities for asset retirement obligations are typically recorded at fair value in the period in which they are incurred. When the liability is initially recorded, the entity capitalizes a cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Our legal obligations for retirement reflect principally the retirement of wastewater treatment facilities, which are required to be closed in accordance with the Clean Closure Requirements of the Arizona Department of Environmental Quality (ADEQ). The Clean Closure Requirements of ADEQ for wastewater facilities are driven by a need to protect the environment from inadvertent contamination associated with the decommissioning of these systems. As such, our regulated subsidiaries incur asset retirement obligations. As of December 31, 2017 and 2016 , the Company held $427,000 and $218,000 in certificates of deposit, respectively, or letters of credit to benefit ADEQ for such anticipated closure costs. Water systems, unlike wastewater systems, do not require Aquifer Protection Permits or the associated Clean Closure Requirement obligation. Amounts recorded for asset retirement obligations are subject to various assumptions and determinations, such as determining whether a legal obligation exists to remove assets; estimating the fair value of the costs of removal; estimating when final removal will occur; and determining the credit-adjusted, risk-free interest rates to be utilized on discounting future liabilities. Changes that may arise over time with regard to these assumptions will change amounts recorded in the future. Estimating the fair value of the costs of removal were determined based on third-party costs. |
Segments | Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280— Segment Reporting the Company notes it is not organized around specific products and services, geographic regions, or regulatory environments. The Company currently operates in one geographic region within the State of Arizona, wherein each operating utility operates within the same regulatory environment. While the Company reports its revenue, disaggregated by service type, on the face of its Statements of Operations, the Company does not manage the business based on any performance measure at the individual revenue stream level. The Company does not have any customers that contribute more than 10% to the Company’s revenues or revenue streams. Additionally we note that the CODM uses consolidated financial information to evaluate the Company’s performance, which is the same basis on which he communicates the Company’s results and performance to the Board of Directors. It is upon this consolidated basis from which he bases all significant decisions regarding the allocation of the Company’s resources on a consolidated level. Based on the information described above and in accordance with the applicable literature, management has concluded that the Company is currently organized and operated as one operating and reportable segment. |
Change in Accounting Principle | Change in Accounting Principle The Company historically accounted for stock appreciation rights (“SARs”) as liability compensatory awards under ASC 710, Compensation – General , valued using the intrinsic value method, as permitted by ASC 718, Compensation – Stock Compensation (“ASC 718”) , for nonpublic entities. Upon becoming a public company, as defined in ASC 718, in the second quarter of 2016, the Company was required to change its methodology for valuing the SARs. While the SARs will continue to be remeasured at each quarterly reporting date, the SARs are required to be accounted for prospectively at fair value using a fair value pricing model, such as Black-Scholes. The Company recorded the impact of the change in valuation methods as a cumulative effect of a change in accounting principle, as permitted by ASC 250, Accounting Changes and Error Corrections . The effect of the change increased the SAR liability by $103,000 which was the difference in compensation cost measured using the intrinsic value method and the fair value method. An offsetting change to accumulated deficit in the consolidated balance sheet was recorded with the revaluation, net of $38,000 in taxes. Any future changes in fair value will be recorded as compensation expense in the consolidated statement of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which completes the joint effort between the FASB and International Accounting Standards Board to converge the recognition of revenue between the two boards. The new standard affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets not included within other FASB standards. The guiding principal of the new standard is that an entity should recognize revenue in an amount that reflects the consideration to which an entity expects to be entitled for the delivery of goods and services. ASU 2014-09 may be adopted using either of two acceptable methods: (1) retrospective adoption to each prior period presented with the option to elect certain practical expedients; or (2) adoption with the cumulative effect recognized at the date of initial application and providing certain disclosures. To assess at which time revenue should be recognized, an entity should use the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. For public business entities, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within the reporting period. For private companies, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2018 and interim reporting periods beginning after December 15, 2019. Earlier application is allowed in certain circumstances. The Company does not believe this update will have an effect on the Company’s regulated revenue. Due to qualifying as an emerging growth company, the Company plans to adopt the ASU at January 1, 2019. The Company is continuing to monitor the American Institute of Certified Public Accountant's Power and Utility Entities Revenue Recognition Task Force recommendations and proposals specific to utilities, in particular contributions in aid of construction, which the Company does not believe will have an effect on the recognition of revenue. Additionally the Company is assessing the impact of ASU 2014-09 with regard to recognition of revenue received under Infrastructure Coordination and Financing Agreements in connection with substantial completion of capital improvements that will increase the capacity of Palo Verde's wastewater reclamation facility. The Company is evaluating whether this update will have an impact on the recognition of ICFA revenue, which is recognized historically at the time wastewater capacity is completed to serve the property for which ICFA revenues were received. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-02 requires lessees record a right-of-use asset and corresponding lease obligation for lease arrangements with a term of greater than twelve months. ASU 2016-02 requires additional disclosures about leasing arrangements and requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. This guidance will be effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. For all other entities, the guidance is effective for annual periods beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. Due to qualifying as an emerging growth company, the Company plans to adopt the ASU at January 1, 2020. The Company does not expect this update to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for public companies for annual periods beginning after December 15, 2016 and interim periods within those annual periods. For all other entities, the guidance is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. The Company adopted this accounting standard in 2017 and the adoption did not have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies and provides specific guidance on eight cash flow classification issues that are not currently addressed by current U.S. GAAP and thereby reduce the current diversity in practice. This guidance is effective for public companies for annual periods beginning after December 15, 2017 and interim periods within those annual periods. For all other entities, the guidance is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. Due to qualifying as an emerging growth company, the Company plans to adopt the ASU at January 1, 2019. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 instructs entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs (compared to current U.S. GAAP which prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party). The guidance is effective for public companies for annual periods beginning after December 15, 2017 and interim periods within those annual periods. For all other entities, the guidance is effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. Due to qualifying as an emerging growth company, the Company plans to adopt the ASU at January 1, 2019. The guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (“ASU 2016-18”). ASU 2016-18 requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The guidance is effective for public companies for annual periods beginning after December 15, 2017, and interim periods within those annual periods. For all other entities, the guidance is effective for annual periods beginning after December 15, 2018 and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. Due to qualifying as an emerging growth company, the Company plans to adopt the ASU at January 1, 2019. The guidance should be applied using a retrospective transition method for each period presented. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 provides a more robust framework to use in determining when a set of assets and activities is a business. Also the amendments provide more consistency in applying the guidance, reducing the costs of application, and make the definition of a business more operable. The guidance is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. For all other entities, the guidance is effective for annual periods beginning after December 15, 2018, and interim periods with annual periods beginning after December 15, 2019. Due to qualifying as an emerging growth company, the Company plans to adopt the ASU at January 1, 2019. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
Description of Business, Basi23
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Restricted Cash Balance | The following table summarizes the restricted cash balance as of December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 HUF funds $ 9 $ 10 Certificate of deposits 427 218 $ 436 $ 228 |
Schedule of Error Corrections and Prior Period Adjustments | The following tables summarize the impact of the correction to the prior financial statements (in thousands). Three Months Ended December 31, 2016 (as Previously Reported) Adjustments Three Months Ended December 31, 2016 (as Corrected) General and administrative $ 3,099 $ (220 ) $ 2,879 Total operating expenses 6,496 (220 ) 6,276 Operating income 718 220 938 Income before income taxes (106 ) 220 114 Income tax expense 16 (82 ) (66 ) Net income (90 ) 138 48 Basic earnings per common share — — — Diluted earnings per common share — — — Year Ended December 31, 2016 (as Previously Reported) Adjustments Year Ended December 31, 2016 (as Corrected) General and administrative $ 10,209 $ (542 ) $ 9,667 Total operating expenses 24,529 (542 ) 23,987 Operating income 5,270 542 5,812 Income (loss) before income taxes (4,341 ) 542 (3,799 ) Income tax benefit (expense) 1,489 (202 ) 1,287 Net income (loss) (2,852 ) 340 (2,512 ) Basic earnings (loss) per common share (0.15 ) 0.02 (0.13 ) Diluted earnings (loss) per common share (0.15 ) 0.02 (0.13 ) December 31, 2016 (as Previously Reported) Adjustments December 31, 2016 Deferred income tax liabilities, net $ 2,383 $ 202 $ 2,585 Total liabilities 223,628 202 223,830 Paid in capital 19,510 (542 ) 18,968 Accumulated deficit (4,515 ) 340 (4,175 ) Total shareholders' equity 15,191 (202 ) 14,989 |
Regulatory Decision and Relat24
Regulatory Decision and Related Accounting and Policy Changes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulated Operations [Abstract] | |
Summary of Collective Revenue Requirement Phased-in Over Time | For the Company’s utilities, adjusting for the condemnation of the operations and assets of Valencia Water Company and sale of Willow Valley, a collective revenue requirement increase of $3.6 million based on 2011 test year service connections, phased-in over time, with the first increase in January 2015 as follows (in thousands): Incremental Cumulative 2015 $ 1,083 $ 1,083 2016 887 1,970 2017 335 2,305 2018 335 2,640 2019 335 2,975 2020 335 3,310 2021 335 3,645 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant, and equipment at December 31, 2017 and December 31, 2016 consist of the following (in thousands): December 31, 2017 December 31, 2016 Average Depreciation Life (in years) Mains/lines/sewers $ 117,381 $ 115,790 47 Plant 72,863 67,744 25 Equipment 29,904 29,100 10 Meters 12,693 4,637 12 Furniture, fixture and leasehold improvements 368 383 8 Computer and office equipment 720 1,056 5 Software 242 240 3 Land and land rights 861 764 Other 428 226 Construction work-in-process 53,591 53,426 Total property, plant and equipment 289,051 273,366 Less accumulated depreciation (75,592 ) (72,877 ) Net property, plant and equipment $ 213,459 $ 200,489 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts receivable as of December 31, 2017 and December 31, 2016 consist of the following (in thousands): December 31, 2017 December 31, 2016 Billed receivables $ 1,691 $ 1,547 Less allowance for doubtful accounts (163 ) (76 ) Accounts receivable – net $ 1,528 $ 1,471 |
Summary of Allowance for Doubtful Accounts Activity | The following table summarizes the allowance for doubtful accounts activity as of and for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 (in thousands). Balance at Beginning of Period Additions Charged to Expense Charged to Other Accounts Write-offs Balance at End of Period Allowance for doubtful accounts: Year Ended December 31, 2017 $ (76 ) $ (125 ) $ — $ 38 $ (163 ) Year Ended December 31, 2016 $ (194 ) $ (52 ) $ — $ 170 $ (76 ) Year Ended December 31, 2015 $ (158 ) $ (36 ) $ (12 ) $ 12 $ (194 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets as of December 31, 2017 and December 31, 2016 consisted of the following (in thousands): December 31, 2017 December 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount INDEFINITE LIVED INTANGIBLE ASSETS: CP Water Certificate of Convenience & Necessity service area $ 1,532 $ — $ 1,532 $ 1,532 $ — $ 1,532 Intangible trademark 13 — 13 13 — 13 1,545 — 1,545 1,545 — 1,545 AMORTIZED INTANGIBLE ASSETS: Acquired ICFAs 17,978 (12,154 ) 5,824 17,978 (12,154 ) 5,824 Sonoran contract rights 7,406 (2,003 ) 5,403 7,406 (2,003 ) 5,403 25,384 (14,157 ) 11,227 25,384 (14,157 ) 11,227 Total intangible assets $ 26,929 $ (14,157 ) $ 12,772 $ 26,929 $ (14,157 ) $ 12,772 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses at December 31, 2017 and December 31, 2016 consist of the following (in thousands): December 31, 2017 December 31, 2016 Deferred compensation $ 2,171 $ 1,920 Property taxes 989 910 Meter replacement - related party 717 1,255 Interest 468 483 Dividend payable 464 458 Asset retirement obligation 427 216 Tax obligation related to GWRC merger — 178 Other accrued liabilities 2,016 2,182 Total accrued liabilities $ 7,252 $ 7,602 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Balances and Maturity Dates for Short Term and Long Term Debt | The outstanding balances and maturity dates for short-term (including the current portion of long-term debt) and long-term debt as of December 31, 2017 and December 31, 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Short-term Long-term Short-term Long-term BONDS AND NOTES PAYABLE - 4.380% Series A 2016, maturing June 2028 $ — $ 28,750 $ — $ 28,750 4.580% Series B 2016, maturing June 2036 — 86,250 — 86,250 1.200% WIFA Loan, maturing October 2032 3 41 — — 4.650% Harquahala Loan, maturing January 2021 5 15 — — 8 115,056 — 115,000 OTHER Capital lease obligations — — 25 54 Debt issuance costs — (693 ) — (737 ) Total debt $ 8 $ 114,363 $ 25 $ 114,317 |
Schedule of Aggregate Annual Maturities of Debt And Minimum Lease Payments Under Capital Lease Obligations | At December 31, 2017 , the Company had no capital lease obligations outstanding and the remaining aggregate annual maturities of debt for the years ended December 31 are as follows (in thousands): Debt 2018 $ 8 2019 8 2020 10 2021 1,921 2022 3,836 Thereafter 109,281 Total $ 115,064 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Benefit from Continuing Operations | The income tax benefit from continuing operations for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 is comprised of the following (in thousands): 2017 Federal State Total Current income tax expense $ 138 $ — $ 138 Deferred income tax expense (benefit) (993 ) 254 (739 ) Income tax expense (benefit) $ (855 ) $ 254 $ (601 ) 2016 Federal State Total Current income tax expense $ 121 $ — $ 121 Deferred income tax benefit (1,285 ) (123 ) $ (1,408 ) Income tax benefit $ (1,164 ) $ (123 ) $ (1,287 ) 2015 Federal State Total Current income tax expense $ 63 $ — $ 63 Deferred income tax expense 17,735 2,825 20,560 Income tax expense $ 17,798 $ 2,825 $ 20,623 |
Schedule of Income Tax Benefit Computed Using Federal Statutory Income Tax Rate | The income tax benefit for the years ended December 31, 2017 , 2016 , and 2015 differs from the amount that would be computed using the federal statutory income tax rate due to the following (in thousands): For the Years Ended December 31, 2017 2016 2015 Computed federal tax expense (benefit) at statutory rate $ 1,343 $ (1,291 ) $ 14,275 State income taxes - net of federal tax benefit 126 (123 ) 1,865 Gain on condemnation of Valencia — — 4,312 Federal tax rate change (2,296 ) — — IRC Section 453A interest 113 121 63 Equity compensation 83 — — Other differences 30 6 108 Income tax expense $ (601 ) $ (1,287 ) $ 20,623 |
Summary of Deferred Tax Assets and Deferred Tax Liabilities Including Valuation Allowance | The following table summarizes the Company’s temporary differences between book and tax accounting that give rise to the deferred tax assets and deferred tax liabilities, including the valuation allowance, as of December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 DEFERRED TAX ASSETS: Taxable meter deposits $ 33 $ 40 Net operating loss carry forwards 2,087 4,976 Balterra intangible asset acquisition 224 336 Deferred gain on Sale of GWM 1,132 1,652 Deferred gain on ICFA funds received 4,911 7,350 Equity investment loss 341 459 Other 1,040 1,404 Total deferred tax assets 9,768 16,217 Valuation allowance — (9 ) Net deferred tax asset 9,768 16,208 DEFERRED TAX LIABILITIES: Regulatory asset (315 ) — CP Water intangible asset acquisition (381 ) (571 ) ICFA intangible asset (577 ) (502 ) Property, plant and equipment (4,392 ) (642 ) Gain on condemnation of Valencia (7,217 ) (17,078 ) Total deferred tax liabilities (12,882 ) (18,793 ) Net deferred tax liability $ (3,114 ) $ (2,585 ) |
Deferred Compensation Awards (T
Deferred Compensation Awards (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Total Awards Granted, Number of Units Outstanding and Amounts Paid to PSU Holders | The following table details total awards granted and the number of units outstanding as of December 31, 2017 along with the amounts paid to holders of the PSUs for the years ended December 31, 2017 , 2016 , and 2015 (in thousands, except unit amounts): Amounts Paid For the Year Ended December 31, Grant Date Units Granted Units Outstanding 2017 2016 2015 Q4 2010 350,000 — $ — $ — $ 1,398 Q1 2012 135,079 — — — 38 Q1 2013 76,492 — — 29 110 Q1 2014 8,775 — 3 10 8 Q1 2015 28,828 2,402 90 65 38 Q1 2016 34,830 14,513 108 63 — Q1 2017 22,712 17,034 53 — — Total 656,716 33,949 $ 254 $ 167 $ 1,592 |
Schedule of Recipients of SARs Awards, Grant Date, Units Granted, Exercise Price, Outstanding Shares and Amounts Paid | The following table details the recipients of the SARs awards, the grant date, units granted, exercise price, outstanding shares as of December 31, 2017 and amounts paid during the years ended December 31, 2017 , 2016, and 2015 (in thousands, except unit and per unit amounts): Amounts Paid For the Year Ended December 31, Recipients Grant Date Units Granted Exercise Price Units Outstanding 2017 2016 2015 Employees below senior management level (1) Q1 2012 152,091 C$ 4.00 — $ — $ — $ 67 Key Executive (2)(4) Q3 2013 100,000 $ 1.59 — $ 366 $ 151 $ 37 Key Executive (2)(5) Q4 2013 100,000 $ 2.69 — 312 137 Members of Management (2)(6) Q1 2015 299,000 $ 4.26 233,000 — 112 Key Executives (3)(7) Q2 2015 300,000 $ 5.13 300,000 — — Members of Management (2)(8) Q3 2017 103,000 $ 9.40 103,000 — — Total 1,054,091 636,000 $ 678 $ 400 $ 104 (1) The SARs vest in equal installments over four quarters and expired four years after the date of issuance. (2) The SARs vest ratably over sixteen quarters from the grant date. (3) The SARs vest over sixteen quarters, vesting 20% per year for the first three years, with the remainder, 40% , vesting in year four. (4) The exercise price was determined by taking the weighted average GWRC share price of the five days prior to the grant date of July 1, 2013. (5) The exercise price was determined by taking the weighted average GWRC share price of the 30 days prior to the grant date of November 14, 2013. (6) The exercise price was determined to be the fair market value of one share of GWRC stock on the grant date of February 11, 2015. (7) The exercise price was determined to be the fair market value of one share of GWRC stock on the grant date of May 8, 2015. (8) The exercise price was determined to be the fair market value of one share of GWRI stock on the grant date of August 10, 2017 |
Schedule of Estimated Future Compensation Expense | Based on GWRI’s closing share price on December 29, 2017 , deferred compensation expense to be recognized over future periods is estimated for the years ending December 31 as follows (in thousands): PSUs SARs 2018 $ 177 $ 891 2019 70 192 2020 — 64 2021 — 48 Total $ 247 $ 1,195 |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following is supplemental cash flow information for the year s ended December 31, 2017 , 2016 , and 2015 (in thousands): For the Year Ended December 31, 2017 2016 2015 Supplemental cash flow information: Cash paid for interest $ 5,224 $ 5,969 $ 7,475 Cash paid for GWRC tax liability $ 125 $ — $ — Cash paid for bond prepayment fee $ — $ 3,201 $ — Cash paid for taxes $ 120 $ 184 $ — Non-cash financing and investing activities: Capital expenditures included in accounts payable and accrued liabilities $ 1,090 $ 2,909 $ 184 Equity method investment gain on recapitalization of FATHOM™ $ 243 $ — $ — Deferred compensation change in accounting principle $ — $ 103 $ — Reclassification of deferred IPO costs to equity $ — $ 97 $ — |
Selected Quarterly Financial 33
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Quarterly Financial Data (Unaudited) | Quarter First Second Third Fourth Year Ended December 31, 2017 Revenues $ 6,791 $ 8,145 $ 8,472 $ 7,800 Operating income $ 1,101 $ 1,712 $ 2,810 $ 1,721 Net income $ 189 $ 425 $ 1,203 $ 2,734 Basic earnings per common share $ 0.01 $ 0.02 $ 0.06 $ 0.14 Diluted earnings per common share $ 0.01 $ 0.02 $ 0.06 $ 0.14 Quarter First Second Third Fourth Year Ended December 31, 2016 Revenues $ 6,816 $ 7,589 $ 8,180 $ 7,214 Operating income $ 1,061 $ 925 $ 2,887 $ 938 Net income/(loss) $ (314 ) $ (3,532 ) $ 1,285 $ 48 Basic earnings/(loss) per common share $ (0.02 ) $ (0.18 ) $ 0.07 $ — Diluted earnings/(loss) per common share $ (0.02 ) $ (0.18 ) $ 0.07 $ — |
Description of Business, Basi34
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements - Description of Business (Details) people in Thousands, home in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($)mi²homepeopleutilityservice_connectionsubsidiary | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)mi²homepeopleutilityservice_connectionsubsidiary | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2004USD ($)service_connection | |
Concentration Risk [Line Items] | ||||||||||||
Number of water and waste water utilities owned | utility | 9 | 9 | ||||||||||
Number of people served (more than 50,000) | people | 51 | 51 | ||||||||||
Number of homes served | home | 20 | 20 | ||||||||||
Area of certificated service areas | mi² | 336 | 336 | ||||||||||
Number of wholly owned subsidiaries serviced | subsidiary | 5 | 5 | ||||||||||
Revenues | $ | $ 7,800 | $ 8,472 | $ 8,145 | $ 6,791 | $ 7,214 | $ 8,180 | $ 7,589 | $ 6,816 | $ 31,208 | $ 29,799 | $ 31,956 | $ 4,900 |
Number of water service connections | 39,618 | 39,618 | 8,113 | |||||||||
Number of water service connections to serve | 2,000,000 | 2,000,000 | ||||||||||
Geographic Concentration Risk | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Percentage of customers on geographical basis | 98.80% |
Description of Business, Basi35
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements - Basis of Presentation (Details) | Apr. 28, 2016 |
Accounting Policies [Abstract] | |
Stock split, conversion ratio | 100.68 |
Description of Business, Basi36
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements - Corporate Transactions (Details) | May 15, 2017USD ($)mi²active_water_connection | Jun. 02, 2016USD ($) | May 11, 2016USD ($)shares | May 09, 2016USD ($) | May 03, 2016USD ($)$ / sharesshares | Mar. 17, 2016USD ($) | Jul. 14, 2015USD ($) | Dec. 31, 2016USD ($)shares | Apr. 30, 2015USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($)mi² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 16, 2016USD ($) |
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Gross amount to be received from transfer of project agreement | $ 4,100,000 | |||||||||||||||||
Proceeds from transfer of project agreement | $ 296,000 | $ 2,800,000 | ||||||||||||||||
Other income (expense) | $ 1,478,000 | $ 2,222,000 | $ 767,000 | |||||||||||||||
Remaining proceeds from transfer of project agreement | 1,000,000 | |||||||||||||||||
Proceeds from the condemnation of Valencia | 0 | 0 | 55,107,000 | |||||||||||||||
Gain on condemnation of Valencia | 0 | 0 | 42,983,000 | |||||||||||||||
Loss of disposal group recorded in other expense | 0 | 54,000 | 176,000 | |||||||||||||||
Business combination, tax liability | $ 178,000 | 0 | 178,000 | |||||||||||||||
Deferred tax liabilities, gross | $ 18,793,000 | $ 12,882,000 | 18,793,000 | |||||||||||||||
Area of certificated service areas | mi² | 336 | |||||||||||||||||
Transfer of Project Agreement | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Other income (expense) | $ 3,300,000 | |||||||||||||||||
Valencia | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Proceeds from the condemnation of Valencia | $ 55,000,000 | |||||||||||||||||
Proceeds from additional working capital adjustments | $ 108,000 | |||||||||||||||||
Gain on condemnation of Valencia | $ 43,000,000 | |||||||||||||||||
Discontinued operation, tax effect of discontinued operation | $ 20,200,000 | |||||||||||||||||
Growth premium receivable for each new water meter installed | $ 3,000 | |||||||||||||||||
Period for maximum payout of growth premium receivable | 20 years | |||||||||||||||||
Maximum payout of growth premium receivable | $ 45,000,000 | |||||||||||||||||
Other income | 1,400,000 | 1,200,000 | $ 624,000 | |||||||||||||||
Willow Valley | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Proceeds from sale of productive assets | $ 2,300,000 | |||||||||||||||||
Loss of disposal group recorded in other expense | $ 54,000 | $ 176,000 | ||||||||||||||||
Eagletail Water Company | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Active water connections | active_water_connection | 55 | |||||||||||||||||
Area of certificated service areas | mi² | 8 | |||||||||||||||||
Business combination, consideration transferred | $ 80,000 | |||||||||||||||||
Business combination, assets acquired | 80,000 | |||||||||||||||||
Business combination, liabilities assumed | $ 78,000 | |||||||||||||||||
GWR Global Water Resources Corp | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Business combination, accounts payable | $ 731,000 | |||||||||||||||||
Business compensation, deferred compensation | 353,000 | |||||||||||||||||
Business combination, tax liability | $ 1,400,000 | |||||||||||||||||
Treasury stock retired (in shares) | shares | 8,726,747 | |||||||||||||||||
Sonoran Utility Services, LLC (“Sonoran”) | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Liability assumed from acquisition | $ 2,800,000 | $ 3,800,000 | ||||||||||||||||
Reduction in acquisition liability | $ 1,000,000 | |||||||||||||||||
Gain from acquisition liability recorded in other income | $ 954,000 | |||||||||||||||||
Valencia Water Company | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Deferred tax liabilities, gross | $ 7,200,000 | |||||||||||||||||
IPO | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Stock issued during period, new issues (in shares) | shares | 1,164,800 | |||||||||||||||||
Stock issued during period (in dollars per share) | $ / shares | $ 6.25 | |||||||||||||||||
Proceeds from issuance initial public offering | $ 7,300,000 | |||||||||||||||||
Underwriter | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Proceeds from issuance initial public offering | $ 1,100,000 | |||||||||||||||||
Maximum | Underwriter | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Stock issued during period, new issues (in shares) | shares | 174,720 | |||||||||||||||||
Private Letter Ruling | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Gain on condemnation of Valencia | $ 19,400,000 |
Description of Business, Basi37
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements - Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Percentage of hook up fee liability to be recorded on ICFA receipts | 70.00% | ||||
Restricted cash balances | $ 436,000 | $ 228,000 | |||
Valuation allowance | $ 0 | $ (8,500) | |||
Number of options outstanding, to acquire shares of GWRI common stock (in shares) | 740,000 | 368,395 | 43,395 | ||
Antidilutive securities included in computation of earnings per share (in shares) | 39,529 | ||||
Unrecognized stock compensation | $ 154,000 | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 19,467 | 0 | |||
Regulatory liability | $ 8,463,000 | $ 7,859,000 | $ 11,400,000 | ||
Percentage of regulatory liability | 70.00% | 70.00% | |||
Percentage reversal of regulatory liability | 30.00% | ||||
Reversal of regulatory liability | $ 3,400,000 | ||||
Amortization of debt issuance costs and discounts | $ 44,000 | 2,600,000 | $ 486,000 | ||
Write-off of debt issuance costs | 0 | 2,165,000 | 282,000 | ||
Amortization of debt discount | 428,000 | 204,000 | |||
AIAC balances | 24,000 | 311,000 | |||
Refundable AIAC carrying value | 62,700,000 | 62,000,000 | |||
Water Services | |||||
Property, Plant and Equipment [Line Items] | |||||
Service revenue recognized in connection fees | 307,000 | 236,000 | $ 276,000 | ||
HUF funds | |||||
Property, Plant and Equipment [Line Items] | |||||
Restricted cash balances | 9,000 | 10,000 | |||
Certificate of deposits | |||||
Property, Plant and Equipment [Line Items] | |||||
Restricted cash balances | $ 427,000 | $ 218,000 | |||
In the Money | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of options outstanding, to acquire shares of GWRI common stock (in shares) | 275,000 | ||||
Out of the Money | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of options outstanding, to acquire shares of GWRI common stock (in shares) | 465,000 |
Description of Business, Basi38
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements - Change in Accounting Principle (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Increase in SAR liability | $ 0 | $ 103 | $ 0 |
Revaluation of SAE liability, taxes | $ 38 |
Description of Business, Basi39
Description of Business, Basis of Presentation, Corporate Transactions, Significant Accounting Policies, and Recent Accounting Pronouncements - Immaterial Correction of an Error in Previously Issued Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
General and administrative | $ 2,879 | $ 9,407 | $ 9,667 | $ 7,957 | ||||||||
Total operating expenses | 6,276 | 23,864 | 23,987 | 25,429 | ||||||||
Operating income | $ 1,721 | $ 2,810 | $ 1,712 | $ 1,101 | 938 | $ 2,887 | $ 925 | $ 1,061 | 7,344 | 5,812 | 6,527 | |
Income before income taxes | 114 | 3,950 | (3,799) | 41,986 | ||||||||
Income tax expense | (66) | 601 | 1,287 | (20,623) | ||||||||
Net income | $ 2,734 | $ 1,203 | $ 425 | $ 189 | $ 48 | $ 1,285 | $ (3,532) | $ (314) | $ 4,551 | $ (2,512) | $ 21,363 | |
Basic earnings (loss) per common share (in dollars per share) | $ 0.14 | $ 0.06 | $ 0.02 | $ 0.01 | $ 0 | $ 0.07 | $ (0.18) | $ (0.02) | $ 0.23 | $ (0.13) | $ 1.17 | |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.14 | $ 0.06 | $ 0.02 | $ 0.01 | $ 0 | $ 0.07 | $ (0.18) | $ (0.02) | $ 0.23 | $ (0.13) | $ 1.17 | |
Deferred income tax liabilities, net | $ 3,114 | $ 2,585 | $ 3,114 | $ 2,585 | ||||||||
Total liabilities | 223,708 | 223,830 | 223,708 | 223,830 | ||||||||
Paid in capital | 14,288 | 18,968 | 14,288 | 18,968 | ||||||||
Retained earnings/(accumulated deficit) | 376 | (4,175) | 376 | (4,175) | ||||||||
Total shareholders' equity | $ 14,860 | 14,989 | $ 14,860 | 14,989 | $ 20,063 | $ 27,680 | ||||||
Previously Reported | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
General and administrative | 3,099 | 10,209 | ||||||||||
Total operating expenses | 6,496 | 24,529 | ||||||||||
Operating income | 718 | 5,270 | ||||||||||
Income before income taxes | (106) | (4,341) | ||||||||||
Income tax expense | 16 | 1,489 | ||||||||||
Net income | $ (90) | $ (2,852) | ||||||||||
Basic earnings (loss) per common share (in dollars per share) | $ 0 | $ (0.15) | ||||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ 0 | $ (0.15) | ||||||||||
Deferred income tax liabilities, net | $ 2,383 | $ 2,383 | ||||||||||
Total liabilities | 223,628 | 223,628 | ||||||||||
Paid in capital | 19,510 | 19,510 | ||||||||||
Retained earnings/(accumulated deficit) | (4,515) | (4,515) | ||||||||||
Total shareholders' equity | 15,191 | 15,191 | ||||||||||
Adjustments | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
General and administrative | (220) | (542) | ||||||||||
Total operating expenses | (220) | (542) | ||||||||||
Operating income | 220 | 542 | ||||||||||
Income before income taxes | 220 | 542 | ||||||||||
Income tax expense | (82) | (202) | ||||||||||
Net income | $ 138 | $ 340 | ||||||||||
Basic earnings (loss) per common share (in dollars per share) | $ 0 | $ 0.02 | ||||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ 0 | $ 0.02 | ||||||||||
Deferred income tax liabilities, net | $ 202 | $ 202 | ||||||||||
Total liabilities | 202 | 202 | ||||||||||
Paid in capital | (542) | (542) | ||||||||||
Retained earnings/(accumulated deficit) | 340 | 340 | ||||||||||
Total shareholders' equity | $ (202) | $ (202) |
Regulatory Decision and Relat40
Regulatory Decision and Related Accounting and Policy Changes - Additional Information (Details) $ in Thousands | Jul. 09, 2012utility | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2014USD ($) | Jan. 01, 2010USD ($) |
Public Utilities, General Disclosures [Line Items] | ||||||
Number of utilities to adjust revenue requirement | utility | 7 | |||||
Requested collective rate of increase over revenue | 28.00% | |||||
Approved collective revenue increase | $ 3,600 | |||||
Adopted rate of return on common equity | 9.50% | |||||
Percentage of hook up fee liability to be recorded on ICFA receipts | 70.00% | |||||
Percentage of deferred revenue to be recorded on ICFA receipts | 30.00% | |||||
ICFA fee as deferred revenue | The Company is responsible for assuring the full HUF value is paid from ICFA proceeds, and recorded in its full amount, even if it results in recording less than 30% of the ICFA fee as deferred revenue. | |||||
Deferred regulatory gain - ICFA | $ 19,746 | $ 19,740 | ||||
Regulatory assets | $ 1,871 | 110 | ||||
Regulatory assets, amortization period | 3 years | |||||
Intangible assets offset by regulatory liability | $ 11,200 | |||||
Percentage of regulatory liability | 70.00% | 70.00% | ||||
Percentage reversal of regulatory liability | 30.00% | |||||
Reversal of regulatory liability | $ 3,400 | |||||
Regulatory liability | $ 8,463 | 7,859 | $ 11,400 | |||
ICFA | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Deferred regulatory gain - ICFA | $ 19,700 | $ 19,700 |
Regulatory Decision and Relat41
Regulatory Decision and Related Accounting and Policy Changes - Summary of Collective Revenue Requirement Phased-in Over Time (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Incremental | |
2,015 | $ 1,083 |
2,016 | 887 |
2,017 | 335 |
2,018 | 335 |
2,019 | 335 |
2,020 | 335 |
2,021 | 335 |
Cumulative | |
2,015 | 1,083 |
2,016 | 1,970 |
2,017 | 2,305 |
2,018 | 2,640 |
2,019 | 2,975 |
2,020 | 3,310 |
2,021 | $ 3,645 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 289,051 | $ 273,366 |
Less accumulated depreciation | (75,592) | (72,877) |
Net property, plant and equipment | 213,459 | 200,489 |
Mains/lines/sewers | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 117,381 | 115,790 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 47 years | |
Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 72,863 | 67,744 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 25 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 29,904 | 29,100 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 10 years | |
Meters | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 12,693 | 4,637 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 12 years | |
Furniture, fixture and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 368 | 383 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 8 years | |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 720 | 1,056 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 5 years | |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 242 | 240 |
Average Depreciation Life (in years) | ||
Property plant and equipment, average depreciation life | 3 years | |
Land and land rights | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 861 | 764 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 428 | 226 |
Construction work-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 53,591 | $ 53,426 |
Accounts Receivable - Summary
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Billed receivables | $ 1,691 | $ 1,547 |
Less allowance for doubtful accounts | (163) | (76) |
Accounts receivable – net | $ 1,528 | $ 1,471 |
Accounts Receivable - Summar44
Accounts Receivable - Summary of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ (76) | $ (194) | $ (158) |
Additions Charged to Expense | (125) | (52) | (36) |
Charged to Other Accounts | 0 | 0 | (12) |
Write-offs | 38 | 170 | 12 |
Balance at End of Period | $ (163) | $ (76) | $ (194) |
Equity Method Investment - Add
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 05, 2013 |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment | $ 345 | $ 480 | ||||
Equity method investment gain on recapitalization of FATHOM™ | 243 | 0 | $ 0 | |||
FATHOM | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment | 345 | $ 480 | $ 1,600 | |||
Ownership percentage of common and preferred units | 7.10% | 8.00% | ||||
Equity method investment gain on recapitalization of FATHOM™ | $ 243 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
INDEFINITE LIVED INTANGIBLE ASSETS: | ||
Indefinite lived intangible assets | $ 1,545 | $ 1,545 |
AMORTIZED INTANGIBLE ASSETS: | ||
Gross Amount | 25,384 | 25,384 |
Accumulated Amortization | (14,157) | (14,157) |
Net Amount | 11,227 | 11,227 |
Total intangible assets, Gross Amount | 26,929 | 26,929 |
Total intangible assets, Net Amount | 12,772 | 12,772 |
Acquired ICFAs | ||
AMORTIZED INTANGIBLE ASSETS: | ||
Gross Amount | 17,978 | 17,978 |
Accumulated Amortization | (12,154) | (12,154) |
Net Amount | 5,824 | 5,824 |
Sonoran contract rights | ||
AMORTIZED INTANGIBLE ASSETS: | ||
Gross Amount | 7,406 | 7,406 |
Accumulated Amortization | (2,003) | (2,003) |
Net Amount | 5,403 | 5,403 |
CP Water Certificate of Convenience & Necessity service area | ||
INDEFINITE LIVED INTANGIBLE ASSETS: | ||
Indefinite lived intangible assets | 1,532 | 1,532 |
Intangible trademark | ||
INDEFINITE LIVED INTANGIBLE ASSETS: | ||
Indefinite lived intangible assets | $ 13 | $ 13 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 0 | $ 0 |
Transactions With Related Par48
Transactions With Related Parties - Additional Information (Details) | Nov. 17, 2016USD ($)$ / Wateraccount | Nov. 16, 2016$ / Wateraccount | Dec. 31, 2017USD ($)$ / Wateraccount | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 03, 2016USD ($) | Jan. 19, 2016 |
Related Party Transaction [Line Items] | |||||||
Business combination, tax liability | $ 0 | $ 178,000 | |||||
Employee medical claims paid | 342,000 | 533,000 | $ 493,000 | ||||
Due from affiliates | $ 430,000 | 333,000 | |||||
Services agreement renewable term | 10 years | ||||||
GWR Global Water Resources Corp | |||||||
Related Party Transaction [Line Items] | |||||||
Business combination, accounts payable | $ 731,000 | ||||||
Business combination, deferred compensation | 353,000 | ||||||
Business combination, tax liability | $ 1,400,000 | ||||||
GWR Global Water Resources Corp | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 47.80% | ||||||
Equity distribution payments on behalf of related party | $ 0 | 650,000 | 1,400,000 | ||||
Cash Advance To Related Parties | 0 | 0 | 12,700,000 | ||||
Due from affiliates | 0 | ||||||
Global Water Management | |||||||
Related Party Transaction [Line Items] | |||||||
Due from affiliates | $ 430,000 | 333,000 | |||||
Purchase agreement period | 10 years | ||||||
Services agreement contract term | 10 years | ||||||
Amended services agreement, Maturity date | Dec. 31, 2026 | ||||||
Estimated cost per water account/month | $ / Wateraccount | 6.24 | 7.79 | |||||
Royalty | $ 370,000 | 355,000 | 326,000 | ||||
Global Water Management | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Royalty payments (up to $15.0 million) | 15,000,000 | ||||||
Global Water Management | Meter Replacement | |||||||
Related Party Transaction [Line Items] | |||||||
Meter replacement program cost | $ 11,400,000 | ||||||
Meter replacement program paid | 10,700,000 | ||||||
Global Water Management | FATHOM Services | |||||||
Related Party Transaction [Line Items] | |||||||
Annual cost payable | $ 1,500,000 | ||||||
Cost per water account/month | $ / Wateraccount | 6.24 | ||||||
Cost of services | $ 1,500,000 | $ 1,900,000 | $ 2,200,000 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Deferred compensation | $ 2,171 | $ 1,920 |
Property taxes | 989 | 910 |
Meter replacement - related party | 717 | 1,255 |
Interest | 468 | 483 |
Dividend payable | 464 | 458 |
Asset retirement obligation | 427 | 216 |
Tax obligation related to GWRC merger | 0 | 178 |
Other accrued liabilities | 2,016 | 2,182 |
Total accrued liabilities | $ 7,252 | $ 7,602 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Balances and Maturity Dates for Short Term and Long Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term | ||
Capital lease obligations | $ 0 | $ 25 |
Debt issuance costs | 0 | 0 |
Total debt | 8 | 25 |
Long-term | ||
Capital lease obligations | 0 | 54 |
Debt issuance costs | (693) | (737) |
Long-term debt and capital leases | 114,363 | 114,317 |
BONDS AND NOTES PAYABLE - | ||
Short-term | ||
Short-term debt | 8 | 0 |
Long-term | ||
Long-term debt, noncurrent | 115,056 | 115,000 |
BONDS AND NOTES PAYABLE - | 4.380% Series A 2016, maturing June 2028 | ||
Short-term | ||
Short-term debt | 0 | 0 |
Long-term | ||
Long-term debt, noncurrent | $ 28,750 | 28,750 |
Debt instrument, interest rate | 4.38% | |
Debt instrument, maturity date | 2028-06 | |
BONDS AND NOTES PAYABLE - | 4.580% Series B 2016, maturing June 2036 | ||
Short-term | ||
Short-term debt | $ 0 | 0 |
Long-term | ||
Long-term debt, noncurrent | $ 86,250 | 86,250 |
Debt instrument, interest rate | 4.58% | |
Debt instrument, maturity date | 2036-06 | |
BONDS AND NOTES PAYABLE - | 1.200% WIFA Loan, maturing October 2032 | ||
Short-term | ||
Short-term debt | $ 3 | 0 |
Long-term | ||
Long-term debt, noncurrent | $ 41 | 0 |
Debt instrument, interest rate | 1.20% | |
Debt instrument, maturity date | 2032-10 | |
BONDS AND NOTES PAYABLE - | 4.650% Harquahala Loan, maturing January 2021 | ||
Short-term | ||
Short-term debt | $ 5 | 0 |
Long-term | ||
Long-term debt, noncurrent | $ 15 | $ 0 |
Debt instrument, interest rate | 4.65% | |
Debt instrument, maturity date | 2021-01 |
Debt - Additional Information
Debt - Additional Information (Details) | Jun. 24, 2016USD ($)debt_instrument | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 31, 2017debt_instrument | Oct. 01, 2008USD ($) | Nov. 19, 2007USD ($) | Dec. 28, 2006USD ($) |
Debt Instrument [Line Items] | |||||||||
Cash paid for prepayment penalty | $ 0 | $ 3,201,000 | $ 0 | ||||||
Write off of capitalized loan fees | 0 | 2,165,000 | $ 282,000 | ||||||
Debt issuance costs | 693,000 | 737,000 | |||||||
Long-term debt, noncurrent | 115,064,000 | 115,000,000 | |||||||
Long-term debt, fair value | 115,700,000 | $ 108,400,000 | |||||||
Eagletail Water Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of debt instruments | debt_instrument | 2 | ||||||||
1.200% WIFA Loan, maturing October 2032 | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured debt | 44,000 | ||||||||
4.650% Harquahala Loan, maturing January 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured debt | $ 20,000 | ||||||||
2016 Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of debt instruments | debt_instrument | 2 | ||||||||
Debt instrument, face amount | $ 115,000,000 | ||||||||
Debt instrument, interest rate | 4.55% | ||||||||
Redemption percentage of principal amount | 103.00% | ||||||||
Cash paid for prepayment penalty | $ 3,200,000 | ||||||||
Write off of capitalized loan fees | $ 2,200,000 | ||||||||
Debt service coverage ratio | 110.00% | ||||||||
Debt service coverage ratio limiting dividend payment | 125.00% | ||||||||
Future Debt service coverage ratio for June 30, 2021 through the quarter ending March 31, 2024 | 120.00% | ||||||||
2016 Senior Secured Notes | Series A Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 28,800,000 | ||||||||
Debt instrument, interest rate | 4.38% | ||||||||
Debt instrument, term | 12 years | ||||||||
Debt instrument, maturity date | Jun. 15, 2028 | ||||||||
2016 Senior Secured Notes | Series B Senior Secured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 86,300,000 | ||||||||
Debt instrument, interest rate | 4.58% | ||||||||
Debt instrument, term | 20 years | ||||||||
Debt Instrument, principal payments | $ 1,900,000 | ||||||||
Bonds and notes payable | 1.200% WIFA Loan, maturing October 2032 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 1.20% | ||||||||
Debt instrument, term | 20 years | ||||||||
Bonds and notes payable | 4.650% Harquahala Loan, maturing January 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 4.65% | ||||||||
Debt instrument, term | 15 years | ||||||||
Tax Exempt Bonds | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 24,550,000 | $ 53,624,000 | $ 36,495,000 | ||||||
Unamortized discount | $ 511,000 |
Debt - Schedule of Aggregate A
Debt - Schedule of Aggregate Annual Maturities of Debt And Minimum Lease Payments Under Capital Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 8 | |
2,019 | 8 | |
2,020 | 10 | |
2,021 | 1,921 | |
2,022 | 3,836 | |
Thereafter | 109,281 | |
Total | $ 115,064 | $ 115,000 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Uncertain tax positions | $ 0 | $ 0 | |
Valuation allowance related to state net operating loss carryforwards | $ 0 | $ 8,500 | |
Effective tax rate | 15.20% | 33.90% | 49.10% |
Federal statutory income tax rate | 34.00% | ||
Tax Cuts And Jobs Act Of 2017, change in deferred income tax provision | $ 2,300,000 | ||
Tax Cuts And Jobs Act Of 2017, increase in regulatory assets | 1,300,000 | ||
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 9,400,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 3,200,000 |
Income Taxes - Schedule of Inc
Income Taxes - Schedule of Income Tax Benefit from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal | ||||
Current income tax expense | $ 138 | $ 121 | $ 63 | |
Deferred income tax expense (benefit) | (993) | (1,285) | 17,735 | |
Income tax expense (benefit) | (855) | (1,164) | 17,798 | |
State | ||||
Deferred income tax expense (benefit) | 0 | 0 | 0 | |
Deferred income tax expense (benefit) | 254 | (123) | 2,825 | |
Income tax expense (benefit) | 254 | (123) | 2,825 | |
Total | ||||
Income tax expense (benefit) | 138 | 121 | 63 | |
Deferred income tax expense (benefit) | (739) | (1,408) | 20,560 | |
Income tax expense (benefit) | $ 66 | $ (601) | $ (1,287) | $ 20,623 |
Income Taxes - Schedule of I55
Income Taxes - Schedule of Income Tax Benefit Computed Using Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Computed federal tax expense (benefit) at statutory rate | $ 1,343 | $ (1,291) | $ 14,275 | |
State income taxes - net of federal tax benefit | 126 | (123) | 1,865 | |
Gain on condemnation of Valencia | 0 | 0 | 4,312 | |
Federal tax rate change | (2,296) | 0 | 0 | |
IRC Section 453A interest | 113 | 121 | 63 | |
Equity compensation | 83 | 0 | 0 | |
Other differences | 30 | 6 | 108 | |
Income tax expense (benefit) | $ 66 | $ (601) | $ (1,287) | $ 20,623 |
Income Taxes - Summary of Defe
Income Taxes - Summary of Deferred Tax Assets and Deferred Tax Liabilities Including Valuation Allowance (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
DEFERRED TAX ASSETS: | ||
Taxable meter deposits | $ 33,000 | $ 40,000 |
Net operating loss carry forwards | 2,087,000 | 4,976,000 |
Balterra intangible asset acquisition | 224,000 | 336,000 |
Deferred gain on Sale of GWM | 1,132,000 | 1,652,000 |
Deferred gain on ICFA funds received | 4,911,000 | 7,350,000 |
Equity investment loss | 341,000 | 459,000 |
Other | 1,040,000 | 1,404,000 |
Total deferred tax assets | 9,768,000 | 16,217,000 |
Valuation allowance | 0 | (8,500) |
Net deferred tax asset | 9,768,000 | 16,208,000 |
DEFERRED TAX LIABILITIES: | ||
Regulatory asset | (315,000) | 0 |
CP Water intangible asset acquisition | (381,000) | (571,000) |
ICFA intangible asset | (577,000) | (502,000) |
Property, plant and equipment | (4,392,000) | (642,000) |
Gain on condemnation of Valencia | (7,217,000) | (17,078,000) |
Total deferred tax liabilities | (12,882,000) | (18,793,000) |
Net deferred tax liability | $ (3,114,000) | $ (2,585,000) |
Deferred Compensation Awards -
Deferred Compensation Awards - Additional Information (Details) | May 20, 2016$ / shares | Aug. 31, 2017$ / sharesshares | May 31, 2016shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2017shares | May 02, 2016$ / CAD |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options outstanding, to acquire shares of GWRI common stock (in shares) | shares | 740,000 | 368,395 | 43,395 | 740,000 | ||||
Foreign exchange rate translation | $ / CAD | 0.7969 | |||||||
Increase in SAR liability | $ 0 | $ 103,000 | $ 0 | |||||
Revaluation of SAE liability, taxes | 38,000 | |||||||
Phantom Stock Units (PSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting terms | 36 months | |||||||
Stock Appreciation Rights (SARs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Increase in SAR liability | $ 103,000 | |||||||
Revaluation of SAE liability, taxes | 38,000 | |||||||
PSUs and SARs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 1,100,000 | 1,800,000 | 695,000 | |||||
2016 stock option grant | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, options granted (in shares) | shares | 325,000 | |||||||
Options, exercise price per share (usd per share) | $ / shares | $ 7.50 | |||||||
Vesting terms | 2 years | |||||||
Expiration period | 3 years | |||||||
Fair value of the stock option expense | $ 348,000 | |||||||
2016 stock option grant | Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 174,000 | 106,000 | 0 | |||||
Options exercised (in shares) | shares | 50,000 | |||||||
Number of options outstanding, to acquire shares of GWRI common stock (in shares) | shares | 275,000 | 275,000 | ||||||
2016 stock option grant | Vest on May 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting terms | 2 years | |||||||
Vesting percentage | 50.00% | |||||||
2016 stock option grant | Vest on May 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 50.00% | |||||||
2017 stock option grant | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, options granted (in shares) | shares | 465,000 | |||||||
Vesting terms | 4 years | |||||||
Expiration period | 10 years | |||||||
Fair value of the stock option expense | $ 1,300,000 | |||||||
Split-adjusted exercise price of options (usd per share) | $ / shares | $ 9.40 | |||||||
2017 stock option grant | Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 123,000 | $ 0 | $ 0 | |||||
2017 stock option grant | Vest on August 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting terms | 4 years | |||||||
Vesting percentage | 25.00% | |||||||
2017 stock option grant | Vest on August 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
2017 stock option grant | Vest on August 2020 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 25.00% | |||||||
2017 stock option grant | Vest on August 2021 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 25.00% |
Deferred Compensation Awards 58
Deferred Compensation Awards - Schedule of Total Awards Granted and Number of Units Outstanding (Details) - Phantom Stock Units (PSUs) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 656,716 | ||
Units Outstanding (in shares) | 33,949 | ||
Amounts Paid | $ 254 | $ 167 | $ 1,592 |
Q4 2010 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 350,000 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 0 | 0 | 1,398 |
Q1 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 135,079 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 0 | 0 | 38 |
Q1 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 76,492 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 0 | 29 | 110 |
Q1 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 8,775 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 3 | 10 | 8 |
Q1 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 28,828 | ||
Units Outstanding (in shares) | 2,402 | ||
Amounts Paid | $ 90 | 65 | 38 |
Q1 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 34,830 | ||
Units Outstanding (in shares) | 14,513 | ||
Amounts Paid | $ 108 | 63 | 0 |
Q1 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 22,712 | ||
Units Outstanding (in shares) | 17,034 | ||
Amounts Paid | $ 53 | $ 0 | $ 0 |
Deferred Compensation Awards 59
Deferred Compensation Awards - Schedule of Recipients of SARs Awards, Grant Date, Units Granted, Exercise Price, Outstanding Shares and Amounts Paid (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 1,054,091 | ||
Units Outstanding (in shares) | 636,000 | ||
Amounts Paid | $ 678 | $ 400 | $ 104 |
Q3 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting terms | 48 months | ||
Employees below senior management level | Q1 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting terms | 12 months | ||
Expiration period | 4 years | ||
Units Granted (in shares) | 152,091 | ||
Exercise Price (in dollars per share) | $ 4 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 0 | 0 | 67 |
Key Executive | Q3 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting terms | 48 months | ||
Duration of weighted average period to determine exercise price | 5 days | ||
Units Granted (in shares) | 100,000 | ||
Exercise Price (in dollars per share) | $ 1.59 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 366 | 151 | $ 37 |
Key Executive | Q4 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting terms | 48 months | ||
Duration of weighted average period to determine exercise price | 30 days | ||
Units Granted (in shares) | 100,000 | ||
Exercise Price (in dollars per share) | $ 2.69 | ||
Units Outstanding (in shares) | 0 | ||
Amounts Paid | $ 312 | 137 | |
Key Executive | Q2 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 300,000 | ||
Exercise Price (in dollars per share) | $ 5.13 | ||
Units Outstanding (in shares) | 300,000 | ||
Amounts Paid | $ 0 | 0 | |
Members of Management | Q1 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 299,000 | ||
Exercise Price (in dollars per share) | $ 4.26 | ||
Units Outstanding (in shares) | 233,000 | ||
Amounts Paid | $ 0 | 112 | |
Members of Management | Q3 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units Granted (in shares) | 103,000 | ||
Exercise Price (in dollars per share) | $ 9.40 | ||
Units Outstanding (in shares) | 103,000 | ||
Amounts Paid | $ 0 | $ 0 | |
Year One | Key Executive | Q2 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting terms | 48 months | ||
Vesting percentage | 20.00% | ||
Year One | Members of Management | Q2 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting terms | 48 months | ||
Year Two | Key Executive | Q2 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% | ||
Year Three | Key Executive | Q2 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 20.00% | ||
Year Four | Key Executive | Q2 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 40.00% |
Deferred Compensation Awards 60
Deferred Compensation Awards - Schedule of Estimated Future Compensation Expense (Details) $ in Thousands | Dec. 31, 2017USD ($) |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,018 | $ 177 |
2,019 | 70 |
2,020 | 0 |
2,021 | 0 |
Total | 247 |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,018 | 891 |
2,019 | 192 |
2,020 | 64 |
2,021 | 48 |
Total | $ 1,195 |
Supplemental Cash Flow Inform61
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Cash paid for interest | $ 5,224 | $ 5,969 | $ 7,475 |
Cash paid for bond prepayment fee | 0 | 3,201 | 0 |
Cash paid for taxes | 120 | 184 | 0 |
Capital expenditures included in accounts payable and accrued liabilities | 1,090 | 2,909 | 184 |
Equity method investment gain on recapitalization of FATHOM™ | 243 | 0 | 0 |
Deferred compensation change in accounting principle | 0 | 103 | 0 |
Reclassification of deferred IPO costs to equity | 0 | 97 | 0 |
GWR Global Water Resources Corp | |||
Business Acquisition [Line Items] | |||
Cash paid for GWRC tax liability | $ 125 | $ 0 | $ 0 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Details) - Office Space - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
Operating leases term of lease agreement | 3 years | |||
Operating leases monthly rental expense related to new agreement | $ 8 | |||
Operating leases rent expense | $ 98 | $ 92 | $ 64 |
Selected Quarterly Financial 63
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2004 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues | $ 7,800 | $ 8,472 | $ 8,145 | $ 6,791 | $ 7,214 | $ 8,180 | $ 7,589 | $ 6,816 | $ 31,208 | $ 29,799 | $ 31,956 | $ 4,900 |
Operating income | 1,721 | 2,810 | 1,712 | 1,101 | 938 | 2,887 | 925 | 1,061 | 7,344 | 5,812 | 6,527 | |
Net income (loss) | $ 2,734 | $ 1,203 | $ 425 | $ 189 | $ 48 | $ 1,285 | $ (3,532) | $ (314) | $ 4,551 | $ (2,512) | $ 21,363 | |
Basic earnings per common share (in dollars per share) | $ 0.14 | $ 0.06 | $ 0.02 | $ 0.01 | $ 0 | $ 0.07 | $ (0.18) | $ (0.02) | $ 0.23 | $ (0.13) | $ 1.17 | |
Diluted earnings per common share (in dollars per share) | $ 0.14 | $ 0.06 | $ 0.02 | $ 0.01 | $ 0 | $ 0.07 | $ (0.18) | $ (0.02) | $ 0.23 | $ (0.13) | $ 1.17 |