GWRS - Earnings call transcript Q3 2019 | Global Water Resources, Inc.

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Operator

Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources Inc. 2019 Third Quarter conference Call. At this time, all participants are in listen-only mode.

will question-and-answer we presentation, the conduct session. a Following that you to will be up for at provided Instructions queue time for questions. would recorded XXXX [Operator call I like everyone remind Instructions] that is being X:XX on at X, November p.m. to this Eastern Time.

conference like President Krupa, Please ahead. the Controller. to Heather I would turn over now go to Vice and

Heather Krupa

our press we XXXX third on quarter everyone, you joining at for is our Welcome, website copy us on which results issued by release, and thank today's a of call. Yesterday www.gwresources.com. financial available

Speaking Ron and President will questions the for Chief Mike Liebman for of Mr. and Liebman, key end results the call. quarter. Fleming at financial which the the the Mr. today will Mr. Liebman Mr. Fleming, be is the and of Executive will quarter, following available Chief Officer; Financial summarize review events Officer. Fleming

to we events. other number reflect Such you risks and remind factors that would the certain differ company's statements. uncertainties, cause results materially in of and that the regarding to I current forward-looking projections Before those presented forward-looking from involve actual statements estimates a may forward-looking estimates, statements contained assumptions begin, statements. include like assumptions, today could information These expectations, future

forward-looking not undue to investors of Accordingly cautioned are reflect reliance statements, on management's date and place future are of performance. any hereof which the as views not guarantees

at may results, within and filings read XX-K please included www.sec.gov. available that future with Form the Factors affect of regarding Financial of SEC. Analysis Discussion filed factors Condition and latest Such Risk For Management's additional and are information our the Operations, sections Results

today's be call. Certain included may within non-GAAP measures

otherwise our comparable available dollars. tables see earnings in a U.S. release, amounts which in Unless of are included the on GAAP measures, financial please measures stated, discussed the For reconciliation these yesterday's is website. all to

turn now Fleming. the Mr. Ron to call will over I

Ron Fleming

and for us Thank morning, Good today. you, joining you Heather. thank everyone,

recordable our the foremost include XXXX. XXX pleased the We achieved quarter, non-recordable employee care safety third X,XXX for staff last of accident. X.X as and and remarkable a the are to we very our first quarter compliance we and financially show over deliver compliance our dedication over in operationally. has performance as without achievements report employees Highlights safety both years. it extended streaks now days since of regulatory results days These has violation our exceptional the Also consecutive for and been incident

share, or The revenue net Regulated increased increased active adjusted was increased increase million XX,XXX. Rock. the $X.X XX.X%, to million, areas service to service XX.X% of X.X% active to per to the or in service coupled current due X,XXX company's million acquisition by increased income growth $X and connections $X.X with Red $X.XX EBITDA connections in organic primarily

We integrated Coolidge solution has to bought agreements Inland foot large square Arizona, also Southern first of complex a industrial million with Coolidge Port, bring to to land announced build utility manufacturing Holdings and the the Saint City facility. where and Nikola Company their

dividend quarter dividend, finally monthly payout. to effective for a paid close, the increase increase and December will approved to Board subsequent which our the X% And this be is

wanted growth. permit I Further to highlight

followed For XXXX, see to or XXXX to XX,XXX counties and in over family single-family XX% approximately up Pinal single The with projected remains dwelling in Maricopa residential were permits strong XX,XXX forecast XX,XXX XXXX. permits, projected XXXX. units by

Maricopa for continues very the submarket to Importantly City be of the data strong.

meet X,XXX a permits this To XXXX first in realized over in XXXX again. the This track XXXX growth with issued. in is XXXX, time permit mark market up X,XXX in permits As was over that it year. since collapse housing the was a on date we appears reminder XX% Maricopa to

lot homes in if and based larger infrastructure sustained share we and amount that larger long-stated get will supports the trend our market the position of a Metro-Phoenix multiyear that capacity growth of This continues on exists. area the

Before lay to performance again primary objectives. financial customers while want disciplined our in to the reliable to creation and detail, Global to primary greater over long-term provide review through turning partners the safe, service I year-to-date value our to to growth out mandates meet and our sustainable approach Mike quarter taking Water and third means. and call a will following continue to

will creating to earnings and grow We top and efficiencies controllable line growth work expenses. by revenue driving operational managing

greenfield will capital prudent and make to improvements platform we will via We capital our work necessary -- new as opportunities. utility expand investments

with We consolidation will acquisitions benefits. also pursue accretive

opportunities small. to Accretive similar our will as growth regional the complement to big we position this such of continue committed and strong and tuck-in And are both pursue core assets.

this Additionally communities as to and we serve. recent and our to privilege have a provide whole as by industry our benefits improve customers the the acquisitions, proven consolidation help can many

now turn call Mike. will the over I to

Mike Liebman

growth, Rock Thank Red QX up quarter the Hello XXXX. rate Ron. everyone. increases. revenue for or was compared $X.X to of you, was the growth increase connection which acquisition's and connection XX.X% Total the $XXX,XXX from is primarily by million, organic approved driven This

through a $XXX,XXX the This to primarily of Year-to-date of driven ICFA recognized XXXX revenue or of in revenue that was reflects decrease through XXXX. XXXX, This reoccurring. $XX.X X.X%. QX compared QX by was million not million QX total is of $XX.X decrease

again XXXX growth, increase the acquisition and organic the X.X% through million primarily up Ranches Excluding this Rock connection well rate and by year-to-date $X.X Turner was revenue, of both ICFA is increases. as revenue approved Red growth, driven as from connection QX or

were increases. $X.X QX expenses million in of increase to costs and acquisition additional in and compared as Rock include contract driven $XX,XXX, primarily Notable an well XXXX. in increased maintenance or X.X%. changes XXXX by Red revenue increase was costs property of million in operating expenses associated $X.X increase services $XXX,XXX increased which of This as as $XX,XXX QX tax of is with the the by operating This Operating $XXX,XXX.

intangible amortization personnel expense G&A lastly And QX million due in an $XXX,XXX, an asset million or increased in in which and X.X%. $XX.X to million by increase is of Red to attributed the This of were as $X XXXX. be acquisition of through well $XX.X operating increase as expense the Rock. compared primarily Year-to-date Increase amortization expenses by $XXX,XXX, of depreciation can expense. to XXXX

expense. decrease other QX Other through discuss due of to XXXX. other million XXXX other XXXX in Valencia $XXX,XXX. $X offset from down QX QX, was $XXXXX to which of the contract, million, was by $X.X expense through XXX earn-out the compared was QX slightly The $X.XX was XXXX. XXXX primarily in to to the for of million $X.XX Year-to-date compared Now received a million decrease of Loop expense income

income. $XXXXXX $X Global Water net This $X.XX of per in XXXX or QX XX.X%. to million Turning is share. net had increase of or income an

for of as our revenue, option XX.X% ICFA proceeds equity or XXX such which and up $XXX,XXX EBITDA $X.X which QX FATHOM XXXX. also adjust adjusts nonrecurring in Loop million adjusted compared for to is QX XXXX investment events was in Lastly expense and of

from Adjusted the results. increases. growth acquisition EBITDA as growth approved to QX, concludes organic This rate primarily well in increase as our Rock was the up XXXX Red and due on update

now back Ron. the I'll call pass to

Ron Fleming

strong. clear growth Valencia Global are you, onetime tax Water's reform caused revenue It revenue and top Thank our connection is rates and of beyond reductions rate both slowdown and recognition by of and very our which reductions the events earn-out, control. to excluding Mike. be corporate line continue the federal

truly our our be the we our intend and new throughout water applying high mission areas consolidation. As achieving We that service to all the our we platform of believe efficiency at utilities to and this stakeholders of management and regional and remain handle will expanding growth, advance to expertise forefront beneficial industry involved.

beyond. address Water important to of investment and us grow We as utility, in support appreciate and resource Global we in issues and your potentially economic development Arizona water

our remarks. Thank I concludes your now to questions. available are Mike prepared That answer and you.

Operator

[Operator first Capital. ROTH of The question Sweeney Gerry Instructions] comes from

Gerry Sweeney

my Hey for good morning, and Thanks Heather, Ron Mike. taking call.

Ron Fleming

Gerry. morning Good

Gerry Sweeney

I start be I recognition probably provide revenue would bit a big could will it's or still as available of Could Saint to great? maybe additional and with opportunity little but sort bit potential to Coolidge maybe when questions. start detail kick-in? of years-off, Holdings. if you be want of couple -- that to of a how little a detail and/or Couple maybe suspect,

Ron Fleming

question. Gerry. Yes, a absolutely it's Yes good

Corporation Necessity things takes the & and infrastructure which construct to off. mean acres would that long have need go to area, that all X would have Commission to believe is obviously some the as we a goes Certificate development It happen with City process XXXX occur. I of the in that land Convenience the fair. Then this license in for parallel development to with through that's that a need on-site way of the we a XX developer So we agreement approximately with I now and months. agreement kind of

area, it when and you're typically -- providing relatively you're bringing out two when small. you're before from sometimes is good a that this point like new starting news So like service revenue in. The starts years

company nice stair scale on a on with that based this foot initial that's and immediately be all facility Nikola one Just square million facility. when manufacturing of that the scope revenue activated. There the type comes should in function steps

you that both a lot port properties the already I and company. because Inland we're attract inquiries inside a getting in parcel that, quite of more really think cell Nikola that Beyond complementary it's doing that of vacant businesses get an area of project, well, type when it's feeding which to from and bit looking of to has

constructed it those of near period even of job really kind and throughout that things then taking X-year some around shape will So gets properties centers. these start that

being quite different together going we would starting residential X home has community think than This middle potential X the the a you community, period way thing to of of it and So That's all in about I desert. in it. the the put new the year significant. quite believe

Gerry Sweeney

QX I G&A about think the of at $X.X in gears deferred And G&A helpful. they price in In step-up that the some that this for which I when are there's quarter. some were might a that's components be million. of the impacts Great, there know were million $X.X stock Mike. little was. about large running compensation especially there a maybe switching bit, costs

so way a little on that G&A deferred operating could it square on ex maybe -- a a there that of you off Is we can pure side? just comp run provide some bit rate

Mike Liebman

Gerry. Yes

continued question. a little any increase $X.X I good year. say the of I was that's unforeseen because you price up increase, but barring the rate this would is price. the number in a at a mentioned the great as stock on million bit a run a on $X.X basis million And think average It stock

I think assumption. a that's good

Gerry Sweeney

it Okay been run it at to trying I've cool. And finally And slowed a bit. little a if permits of years couple Valencia, track rate ago, faster much was down. then or my memory -- pick Is picking some is the up serves correct, up? it that strong. remains maybe this needs of looks permit to a to for occur a what like function activity

we how infrastructure a look at that then needs sold? some you new bonus that pay any it? I [indiscernible] it what lots need be connect attention loss and to and to moneymaker new so -- It's Or little Valencia? just to Is nice idea previous want

Mike Liebman

a Yes sold. would Gerry, I stronger lots say lots again. had been had this were have earning of Mike we actually is the that the lot that at since lot of when earn-out a yes, those we price, And

the the now that developers horizontal needs Or developing of believe step that's next element so in what the And to are infrastructure. that of process is the we happen.

will it our talked may It's that XX them so a like it view but it that XX months -- coming? going in and hopeful has And nothing just is something little to be not so ways feels still from last changed was we're soon. we out, that before that. out It's and to had come happen, to when was

Gerry Sweeney

and Great, taking you That’s me appreciate for time. the perfect. it I

Operator

the Instructions] conference like back any now remarks. This question-and-answer the for Fleming session. I Ron closing to over turn concludes would Mr. to [Operator

Ron Fleming

our speaking operator. you Bye. call I interest continued on your for Water. would thank we everyone with today to like again. Thanks Thank forward for to and in you, Global look and participating

Operator

today's concludes This conference call.

a your Thank pleasant participating disconnect for lines. may you have and You day.

Global Water Resources (GWRS) 10 Nov 192019 Q3 Earnings call transcript