GWRS - Earnings call transcript Q2 2020 | 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. 2020 Second Quarter Conference Call. [Operator Instructions] I would like to remind everyone that this call is being recorded on August 6, 2020, at 1:00 P.M. Time. Eastern like and conference Controller. now Krupa, to turn President Vice to would over the Heather I Please ahead. go

Heather Krupa

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

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

cause begin, forward-looking of regarding number any of of those which presented current to hereof could reliance performance. forward-looking the we that on management's differ company's forward-looking a would that include investors future results you statements estimates, are not to and undue date involve statements remind future from certain today and not projections and as events. reflect Before views Accordingly, cautioned statements. expectations, reflect information estimates other These assumptions materially actual place like forward-looking factors the I assumptions, to may statements. uncertainties, risks, the statements, in guarantees contained are Such

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

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

Ron Fleming

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

second for very of We quarter the XXXX. report pleased results to the are

Considering pandemic begin navigating, and is discussing which are employees COVID-XX the by is always foremost, and customers. our appropriate the here priority, health currently our we again. of our safety I First start top to it and

our whose local implement an guidance pandemic, quickly safeguard industry-specific to health As social modified be XXXX all to the significant moved any national, operations. disruptions measures as and well, to all and generally, and financially. and incurred pandemic, from continue employees and the maximize services during not These and the utility a operationally to and place have customers early situation and our in protect resulting of other ground safety throughout are changes, vital remain the either guidance essential health our have on company and gone but measures distancing measures we or

we going this operations predict cannot have point, However, financial forward. the it at could on results and impact

due customers difficulty them to up some with expect and bills We utility paying payment COVID-XX-related eventually to set unemployment, their ready to offer but we're options. have work other plans to

For and have example, customer the fees. for an assistance non-payment voluntarily In rolled meantime, we late expanded we suspended program. eliminated out previously disconnections

pleased to very and that nonrecordable incident. compliance to our an regulatory priority, continue level our Moving top announce high we am safety back at employee accordance operational typical extremely to on in I highlights. with perform

incidents in only our OSHA As of today, X experienced staff minor has recordable days. X,XXX

Also, days X,XXX having reduce and the annual payroll. our it evidence to been has since a As our significant last violation. we able headcount success comp of in higher our were despite workers' compliance quarter, expense

this challenging enhanced continue including work magnified has customer in-house as proactive We experience a during of last long-term to our been service This of service deeper customer to and better to December, and operations the time. focus continue billing realize scalability measures bringing costs we benefits from also by benefits and control our from with derived grow. customers on

slowed growth On XX active the months to growth active front, QX prior. over rate XXXX, June X.X%. annualized increased connection the connections total at organic to XX,XXX XX, X.X%

I home like in since frame. bit, it new Actually, strong connections hasn't say While slowed a time can this development remains the activity XXXX housing felt areas. our in very

of In fact, right as second and Maricopa been issued single-family suspended do We COVID-XX. month sources in the XXXX. XXX July, we to permits, best projection is permit cite growth. specific due have projections those the cannot this now City home since housing Typically, that for

by level Grande of experienced. those Metro-Phoenix quote Metro-Phoenix. released City area, since and The demand Meaning fastest However, Valley, rise the County in in Maricopa on At of I ever is estate to seen are of the at is with growth selling following where read prominent largely while Arizona Pinal the demand the Great has its to up, about demand areas areas in communities Arizona, housing dried at the part and here want Recession, highest Maricopa. bubble not XXXX in week outskirts most Casa most lows supply the one this just it a the XXXX. County. see experts places of the this Housing moment, the Tan real is since in San in more Pinal within than are visible

building affordable housing, County area next the the going are return see and Phoenix seek over seek builders affordable we As homebuyers land boom rapidly months. to XX Pinal more

or utilities you are since large in the growth areas have throughout in in Pinal who This rapid while, our to growth positioned been company, of to really corridors. the a our those and is path from have happening, as a benefit growth for service for about we been and was for County. speaking the This you that buy this know we following preparing again well build strategy company along of these beginning. So short, is what

for opportunities. acquisitions Krygier the growth, business growth daily organic new as Officer, allows Chief focus Beyond addition on also through of and Chris Strategy

Water. this experience We Global the are brings of about to of as team addition very excited skills wealth Chris a and executive

nothing can now constant front. is announce are making we on today, there this we While progress

a rates we our to strong acquisitions, don't regulators increase with be modest month rate we that before they rates. and addition expect have We year, new further assure until customer X, be on any increases we case effective Finally, the will now current to January disclosed and that growth requested of decision to requesting organic a that highlights. be over a this filing call Mike rate I will beyond financial later in not next for rate turn September as have the XXXX, and pandemic. will to

Michael Liebman

fees non-cash increase expense was increased organic which approved XXXX. executive operating at for Hello, quarter, our to related $X.X compensation increase. expenses $XXX,XXX; of changes is in towards by G&A XX.X%. approved employees driven million which Operating Similar rate you, professional as compensation by is connection and everyone. by extent, $XX.X team. consumption a can XXXX. XXXX growth, $X.X worth some increased that that to Notable to consumption we the million million was driven restricted $XXX,XXX, rate Ron. expenses our shifted be primarily increase by maintenance This reflects increased Total compensation and and or of for compared noting $X.X QX the expense. to by XXXX. incentive This XXXX, X.X% or were million in of from real the Year-to-date restricted million $X.X increase up to Thank $XXX,XXX deferred primarily QX increased compared an increase. attributed of -- away of $XXX,XXX quarter million, an the primarily or shares and to costs in $X.X this was include shares and X.X% is organic compared options increased in incentive was through up is revenue results increases cash revenue QX have It's expense growth, company. operating This G&A primarily X.X%. The connection to increase $XX.X million and awarded the driven to in remaining expense to the equity-like in personnel

in is Lastly, expenses increased QX This had of the depreciation plan. through million $XX.X or amortization XXXX. million our increase due capital to expense compared we operating increases expenditures fixed associated XXXX, Year-to-date by of to $XXX,XXX, an our million primarily X.X%. $XX.X with were assets in $X.X and

XXXX compared $X mentioned contract, XXX the million increase to of QX other to XXXX. million of discuss million to due disposals disposal QX $X.X $XXX,XXX. primarily Loop for previously to non-cash million through asset was expense. This million income expense of to Now XXXX. $X $XXX,XXX increase was due to other Year-to-date expense in from QX in the was of XXXX, non-cash asset the received of in in XXXX primarily addition $X.X $XXX,XXX. $X.X other was The of Other compared

net XXXX. Water to Turning Global QX in loss net of $XXX,XXX had income.

through XXXX and QX net for per non-cash expenses However, Loop XXX adjusting to $X.X the income, after just income per disposals, was share. XXXX, $X.XX nonrecurring $X.XX expenses Year-to-date net if $XXX,XXX mentioned, after adjust net non-cash share asset was year-to-date or QX whereas income deferred was you of for compensation the or per the adjusting XXXX $X.XX for million share. or $XXX,XXX related proceeds,

$XXX,XXX up $X.X is compared EBITDA XXXX. QX was such to talk Adjusted like through was deferred which $XXX,XXX proceeds XXXX, Year-to-date to to million, XX.X% and and which items Now Loop X.X% XXXX, million adjusts events, or for EBITDA adjusted as for nonrecurring related up adjust of of of is disposals. which noncash expense about or XXX XXXX. QX $X.X compared adjusted in to also awards asset EBITDA, restricted compensation share QX

maturity savings XX call to I'd million loan Ron, Company $XX on is plus with everyone of we eliminated the April XXXX. credit we we line agreement Trust also our to The MidFirst the is unused This of revolving X-year fees. Northern point from the a line $X prior back line with that new rate facility our a with the entered like April which Bank. turning basis XX, XXX, old a LIBOR and an credit into replaces Before XX, had remind XXXX, revolver, million on credit of date for

over existing to our This I'll on Ron. hand of this results. have the support and unused cash strategy. line growth we call our $XX and QX on ongoing credit, of million the pass liquidity XXXX concludes operations update now to With back

Ron Fleming

weather is balance remain a It and well positioned sheet to Mike. times uncertain these and you, disciplined strong with clear, Thank turbulent we strategy.

big growth, an And small. than liquidity both ample resources and fact, operational more and organic and financial we expansion new through stronger. perspective, been have capital have pursue to In projects, never from and acquisitions we

we Thank platform water consolidation. achieving remarks. of and As to utilities and our expanding to beyond. growth, expertise resource high economic our important the We water Mike your will new grow I intend mission development service Global our we management remain the Water these available highlight and forefront that answer truly in We in concludes advance questions. regional at applying industry our to utility, believe That all us prepared beneficial this and to areas and address as be any and handle we efficiency support of of stakeholders issues you. involved. potentially appreciate and investment Arizona and now are to throughout

Operator

question instructions] is [Operator from Gerry first ROTH Sweeney The Capital. of

Gerry Sweeney

those Just of and once up some And how I think line in are know, a better I'm tone want little down discussed a questions in from you permits the and issued, little long And time as operations, couple quick I were the etcetera, here. Maricopa? of know tenor ground? breaking were and and But how sorry, June to just construction get just growth occupied. homes -- bit. to bit permits, I especially going to July. a of April May actually curious

Ron Fleming

Yes. Sure, absolutely.

was permits in that in XXX So and June, over it stat that we earlier July. I then did gave actually

and X than April last have the and in recovered from strong the March, been dip more quite So months May.

built months their goal permit the of the XX than is that's works, the that the available typically Gerry, it's sale. builder So time home having to home a from less process way for

converted a So before the little final they have meter. they that end The the construction active than water have process. the so user, part gets earlier builder that, for to pull meters availability an does they so of that bit it

So we're somewhere before that.

within safe it's a to well year. typically say, So it's

Gerry Sweeney

is providing of That's where area, its City bit of company had Are of some area. Nikola providing I going Motors a services located. question. late, an also some curious it. in Saint you to little time of operations area the just Holdings the that's as know And ago, that for Nikola some an just you announcement then been think of Motors? I is Coolidge, interest that entirety? a be with just the to different Or Got

Ron Fleming

commercial about and acres and project the about that. map region be excited and think Yes, industrial for an it We it's Nikola. sure. you we're Look, of or very that way, Inland continues mentioned what a for made. to north land the project to area that ultimately, I because Progress further its attract this that's going XXX Nikola Port Gerry. location on to Holdings, is of sold would for acres signed Saint of them, residential there. X,XXX They really Arizona. put I with a entire of, the growth contract about call think owner, they entire actually XXX

So And and an area, it's but then like much into it's what's it, regional occurring. if it's actually that not from sizable a part it's is part really going smaller just perspective acres. build to and that planned of utility even a efficient, X,XXX beyond that, planning for a industrial park, than

square them a XX be be larger water of ensure area. we we City miles. much a wastewater agreement to the sign with to So worked could with provider ultimately, Coolidge that provider the And for integrated for and license

the Nikola activity the will Commission it catching by looks like we believe, this kind But will move provider. already year, design. for start, be Certificate the filed of service in And for Necessity, we've is really with Convenience the be of and say, one fastest. getting we that that is it the into area, at of the in I area the point, more lots the of will the park. we'll industrial this we attention. one At that engineering quarter the -- Nikola and So where moving all detailed to started in right point, Corporation our the end CCN

can't stuff I tell we're So but for moment. all be that I've inked activity, working I going Today, provider, good is of of say to contract lots also the you on. Nikola with their lots on the can

Operator

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

Ron Fleming

Again, and on and just operator. this Thanks, to we you, speaking in like with call look forward Global everybody Resources. would for your thank continued again. interest Thank I Water for participating to you

Operator

call. conference today's concludes This

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

Global Water Resources (GWRS) 8 Aug 202020 Q2 Earnings call transcript