GWRS - Earnings call transcript Q4 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 Year-End Conference Call. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct the question-and-answer session. like on everyone X:XX March would is this PM. I recorded being X, instructions] to that remind call [Operator XXXX at Eastern Time.

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

Heather Krupa

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

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

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

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

within management's included regarding and operations, analysis may additional read condition the latest affect and results SEC. that risk filed factors with of factors discussion For the of information future Form results, sections, please and XX-K financial our

Such filings available www.sec.gov at are

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

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

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

Ron Fleming

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

wonderful mentioning. for pleased are very highlights the XXXX company worth many report XXXX. year and our are was year-end for to results the another there We

and partners efforts support our want all and these I thank to shareholders The that for together of employees, first results. produced their

customers and even we is without health regulatory the our and XXX priority. has employees days extended safety top a our and compliance, safety non-recordable today, accident. recordable, as our Foremost our over employee consecutive achieved and Throughout safety XXXX of streaks, incident staff our through

share since Also, been four while and XXX,XXX approximately X.X% XX, compliance XXXX. or last nearly defer increased million increased significant our it of has realized expansion extension year also and our to We in X,XXX the and remaining the $XX.X years. We internal revenue at days XX,XXX of operations on for active XXXX. X.X% the customer XXXX, Water increased assets and X%. our $X.XXXX increased Company Total manage the streaks revenue basis. service nearly growth. in violation rapid to we EBITDA Valencia received continue to These from through the end dividend gain to extension per connections of Regulated an goes an adjusted annualized from condemnation December

David to exceptional adding Rousseau are company's of solution experience of Saint utility We appointed Arizona. with Coolidge utility in bring and senior to and Holdings an Port to and Directors, the partnered Coolidge City policy. Southern level water an We Inland integrated the Board

and as over allowing as service the our support greater of for the operations customer including well end plans the brought related utility all to its expansion. our and back control and billing we've growth focus experience, and in-house, At year, customer's a technologies provide company office

purposes. subsequent we that funds for operationally. financially deliver two now These XX, January credit an exceptional year-end growth achievements of the availability and million years, date line. general net We to an to raised line revolving remains available in the corporate the April both additional through $X by and we XXXX. extended acquisitions show and And XXXX, goes fund company which full to capital offering and the on proceeds million provide equity performance of dedication as of And approximately of and our our in care $XX.X employees working amount

to growth. wanted now highlight I permit

dwelling to over XX,XXX permit. an up XX% XXXX Maricopa grew to For increase in or and see projected year. is Pinal another permits prior XXXX, counties single-family the as realized XX,XXX XXXX to were XX% we'll we increase permit In units, XX,XXX at

prior in city Maricopa issued. finished X,XXX permits a as permit over year. to X,XXX XX% permits, reminder Specifically, permits over average continues two of was in resulting XXXX XXX be XXXX of strong, per with the the year up growth a year submarket with

trend has will we on multi-year and continues in based of larger homes the new capacity amount long that and supports and stated lot position share get a larger Metro-Phoenix, growth infrastructure of exists. sustained that This our around market

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

as grow driving We appropriate capacity line to controllable necessary, redundancy ensuring be partners. top to earnings managing revenue and utility growth expenses. We'll prudent will efficiencies make operational capital and we by and work creating reliable improvements have

and with regional and new are will pursue expand position continue pursue committed platform We big assets opportunities, to our we both will tuck-in to strong this core greenfield the accretive acquisitions finally utility small. benefits. Accretive will opportunities growth as consolidation of similar we and compliment via our such and

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

now to will call Mike. over turn the I

Mike Liebman

revenue in Total the flat XXXX the This for ICFA primarily in is revenue is everyone. driven $XX.X was was to Hello non-recurring of revenue recognized Ron. you, which year-over-year seem Thank million, year QX XXXX. that compared XXXX. by

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

is XXXX. changes increased Red This $XXX,XXX increase of with and in expense and Operating million $XX.X well million plan. due Turner our were XXXX depreciation fixed amortization include, in Notable $X.X an expenses to to in as expenses operating primarily as Rock, X.X%. associated of assets the Ranches in million of $XX.X or acquisition compared expenditures capital increases our

in by have we Rock well parties and associated and Turner driven as Additionally, acquisitions additional increased of in by an Red services increase costs expense related of XX,XXX. and $XX,XXX of the increase $XXX,XXX, primarily costs contract Ranches increase operating This $XXX,XXX. from maintenance was with the maintenance as an

in can which expense to deferred attributed an increase increase we expense an G&A of $XXX,XXX. the of Lastly, and $XXX,XXX, by compensation in had $XXX,XXX increase be personnel in

expense expense. $XXX,XXX. in for the Loop $X million of million the other income was XXXX. XXXX discuss a to was million XXX XXXX offset QX to Valencia compared in from in received $X.X $X.X The the $XXX,XXX other contract Now earnout due to of Other of primarily decrease improvement by

which income. XXXX. growth from XXX our primarily for the non-recurring Red was Turning is million equity $X.XX XXXX, in Adjusted $XX.X growth Ranches $X.X Adjusted Rock. the to investment increases Global $XXX,XXX as well to Loop events EBITDA also up Turner and options which of and ICFA compared due net Water income revenue, adjust acquisition up EBITDA expense adjust as was organic had million FATHOM or proceeds in X.X% and to net or such as in share. per

call our results. now concludes Ron. the I'll XXXX This on update pass back to

Ron Fleming

continued growth Global Thank rates topline from clear events to excluding be It ICFA, you, Mike. and Waters is one-time connection strong. recognition very revenue

water the efficiency we forefront As this our industry and handled of advance intend to we high-growth, of mission management at remain and consolidation. the achieving

issues We important areas to Global to your and water highlights utilities investment Arizona potentially our truly to all grow your expertise support Mike stakeholders answer are you. be involved. we beneficial These to I Thank our applying will that beyond. development appreciate us now our remarks. and regional And address available conclude believe and Water of platform questions. expanding service prepared and in as new our resource utility, We and and economic throughout

Operator

Instructions] next Sweeney Session. Roth begin question Question-and-Answer from the now comes We Capital. [Operator will from The Gerry

Gerry Sweeney

on to do connections very an Just couple little sort Saint couple want could of give Coolidge a the questions. the side. just Maricopa does a that? at developed want you on emerge we to well look Holdings. How next start if going just growth quick see that growing, update of I years? Obviously, How of

Ron Fleming

you're talk look, more talking than the growth, Yes. about, inbound like to project other has mean, Gerry. We Coolidge transports about Maricopa County I just country. switch Thank in now the before I the always jobs county other Nikola right any and any state. added most than look has Arizona -- to Yes you.

and -- percentages. values so absolute this is not And

got industrial and here, be recovery really And, it's the long in well. as what healthcare based our it about historically. and time, communities other and And and just much and our manufacturing is So way thriving. of construction the Arizona's very strong seen really it's this and come doing sectors lots really governor's and for not sustained first we've been

about the at. states And so where we feel really good

And project of up starting is industrial to parts and are and around of to Nikola things. that larger pop develop Metro-Phoenix the types all that cost cost labor leads because, these that us projects and jobs because those to climate and the greater the of these of kind

projects. these just is this think types we So of the of beginning

innovative before, first just basically really day a you it traded -- going finance with benefits a -- I company new the look going they partner whole and and of to the had to just publicly get Nikola that's But but actual, product. the release it design yesterday not the now was partnership NASDAQ. it really -- their of is of the industry. a the rest can or announced on said And on press the what let's to Nikola our manufacturing create basically was merger, capital strategic specifically, So get was lots to and there's up, a to merger think just this plans on

rolling months of the to their off the on less. in some that out to months XX XX in based be new plant they article or things So want information start next

fast. to now the ready to go gotten they've point So they're

we not So kind will separation in going mile it minute of -- the -- lot expect it that. from and capacity, the today, commercial other as for but project we sorry we will be that five -- the like with a Coolidge. next we new it's park area seed into that the Nikola with type that the or a of But a from bring that because of locate industrial park an a industrial facility expect City all about say, existing can to industrial of five share other lot of Coolidge, projects

then and normal quite a regulated it We'll XX and the nicely. the that all area permitting to that's we'll utility do get it it's us on process. turn that, months we'll service we place for done, grow after But to months from put So, provide in CCN XX construction think build today.

Gerry Sweeney

Got thoughts [indiscernible] that on that it, in of trajectory Specifically, developing that little it very you then bit a -- Valencia consumed. the had Arizona. go that housing Any as great helpful. for talked on slowdown, stock about forward it's a And I some how a is basis? being think and how development growth just

Mike Liebman

area Yes. we're over what Gerry, our did XXX,XXX based activities significant just the not few had question, this increase we and a service XXXX accelerated Good Mike. where happen This development growth specifically year areas and back. in any former some in on XXXX, years see we in is expecting was. that while about

not that's it's on kind term a in things long-term course. the over XX expect near for future we'll the So And some the earnout do expecting because longer later period year down road just part always of that. we're term the

Gerry Sweeney

by And helpful. think the then too, prepared previously That's about performed in of was service finally, infrastructure house you've this it that great. Okay, lot your in obviously, talked marks I FATHOM.

integration how a update. and going, would get be just is issues That Just Thanks. awesome. any that update quick

Ron Fleming

better. it, Frankly absolutely. gone almost have couldn't any Yes,

your back lot replacing Now the significant. you're move say, a replace is alone, We it a to so company fast if all way office developed that systems. of office to generally process, month some systems, on back any six it's something to going have not for your of ideal

of to did other bit do team able in or maybe maybe were some XX is days. utilities. little Our effectively And common it's a municipality the it look, than that your different the private reason we

they Obviously, We long with the really that technology use. the choices. relations and technology and the understand FATHOM people history the

and function between because we technology the whatever that just, were people basically technology about us package we just created, integrator for the that the And being those softwares and if so provided. those just softwares that direct in And we been went those to is really you seats a liked vendors. -- that it, had removing operate think we sit

doing the very were look and this that as capable were Phoenix took FATHOM. they kind Being people was people co-located hired that people of those know benefit. doors We that their and at best for close We to a it. we a in way here,

people covenants. And provides eliminate flexibility So with to happy actually moving we issues unexpected today the very the we've here with but with planned, turned pretty now. direct happy no we wasn't and very opportunity got. more it and happy relationships It vendors us forward. these sitting and major technology it it have more think into We're and we're definitely

Gerry Sweeney

year. Okay, appreciate update. great. I appreciate during it. the the I congratulations on [indiscernible] And

Operator

[Operator Instruction] comes from question Jung Jon Management. The Asset Trailhead next from

Jon Jung

We things year good on congratulations XXXX. in continue the and morning 'XX. Good hope

okay.

questions the you I Are covered well pretty had. there? We're

Ron Fleming

Yes, Jon.

Jon Jung

tell Yes. original on this investment you FATHOM, I could what value premier for regard mean of if the the still is with gone? does the me, wondering that books to

Mike Liebman

is thinking going This about down that that back that are The value to the recorded but Jon. in forward XXXX, we're we've way correct. that our Actually Yes, zero. balance is you zero of on Mike. written April sheet

Jon Jung

alright. Okay,

doing probably possibilities as you are in anything And beyond okay that on general hope color us utilities water you have some said, doing and in of you looked Maricopa any you Yes. in? with have you going small and around of terms give better. outside what's on, do whether you'll you're So the of can Arizona of Do acquisitions Arizona. else

Ron Fleming

Yes.

being wanted we've about we're We in only way did that. in years is, acquisition past we the game. certain back before to the into really point just So, talked back get two the the to company a

We our first utilities over made And be you initiative four that our to Global. sense out as success, know, great so, years. acquisitions. acquired had consolidate of into now to and some the to go out utilities those to two we kind Turned approximately talk

like talking and and now growth even of there's with on great part the we Holdings intend that really well. radar which their So, can we're organic and certainly we as of projects industrial announced Nikola we those extending of we're more, got keep and though forward, nothing today, but to that park things in growth moving to have new our the more we've this City even Saint entirety portfolio Coolidge,

anyway them disciplined where but going at makes because We of good solid to acquisitions, we've other will good we continue to look and we we've lots got it for got can growth organic do will consolidate be and that. things the and company sense

first I say, willing opportunities at we're as where State because that away Now, for company and the the or from least also at of now will of two today, of said, in all time look outside probably is further the to well. years Metro-Phoenix

are So, yes, to stage. we question, that that this open at to

Jon Jung

great. That's

progress plan? with what with any been services, your companies there has outside to familiar regard big Okay. I'm not transpired of but has just the developing

Ron Fleming

progress plan. made the they on Yes,

move we service, first they're today Coolidge we month and earlier XX time need infrastructure like everything land do. call know to that's here still but go and that process obviously us they a say development, on going to we about goes in provide from to to good project sitting just our a and Now, the when for XX don't talked

on be not to our radar clear. that's So, yet

everybody. they back bought things normal article community I acres announcement go and there's that property do that plan that they're was of can with you at XX,XXX want that to the project just that mean, to your released time if and say, on and they remind a did designing made. they master what or However, appreciate lot not massive the was

for them want land, the reentitle that longer state regulatory back changes of the to go want so. some the want plan basically we to And apply. in them do original here and even from what some do they requiring at look the different is to of no that required or understand, things -- to of they So to some statute

forward, of obviously with at the foundation part investment as we the it. of that the do and an side it nothing to us or group moving built it gives is believe works -- to that of build part which least that -- litigates has bought So don't group property

sure that and to that interesting are at lots of of lots the the I'm the and actually ready things they're and go. plan they ready So and there's day be engage working that and planning looking of we'll on, portion to with forward move utility

Operator

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

Ron Fleming

everybody Thanks, I for forward thank operator. in to and speaking Resources. Global you, again. your on want interest we to call thank ongoing Alright, the again look you participating with for just and Water

Operator

concludes conference call. today's This

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

Global Water Resources (GWRS) 5 Mar 202019 Q4 Earnings call transcript