GWRS - Earnings call transcript Q3 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 Third Quarter Conference Call. [Operator Instructions] I would like to remind everyone that this call is being recorded on November 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 third copy financial website by Yesterday, results which us on

of will and of Speaking and Strategy Chief Chris President Officer; quarter. summarize key Mike events Chief the Fleming operational the today quarter is Ron Liebman, Liebman and the Krieger, Officer. Executive Fleming, Chief Officer Mr. Mr. Financial will financial review the Mr. at be the quarter. development results review will Mr. for questions Fleming, Krieger strategic for end the of will Liebman Mr. business Krieger for quarter. and the Mr. initiatives call. and available the

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

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

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

Ron Fleming

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

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

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

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

impact plans other and predict have COVID-XX. their difficulty we to up options. point, set with this have results payment to ready event to forward. In the on financial the paying We're cannot work utility due them operations and at However, going could it that offer customers bills

that today the an nonpayment help of For for in assistance our and pay XXXX through have program. customers being and in example, utility $XXX,XXX to have expanded over we fees. bill. their alone rolled we disconnections need eliminated report partners can assistance this we customer out distributed previously is suspended voluntarily In to We utilized program meantime, late

compliance and announce top accordance an on our extremely our very pleased to with priority, typical perform incidents. in safety highlights, non-recordable to regulatory that we employee high at continue to back on operational level Moving I'm

have four today, costs days. [ph] X.XX. modifier of our an or incurred experienced two XXXX in only staff we over resulting related EMOD almost in incidents minor As has experience recordable of in years, OSHA no Fact

is considered an reminder, [ph] a one of be average. As EMOD to industry

performing XX% been industry last in are we costs. days compliance average, XXXX actual which has significant insurance and since said better way, Also, lower workman's violation. it So results than comp our costs the another

the three demonstrate In the as part award stewardship utility strong level. companies increase their in earlier quarter just Bronze excellence community addition environmental and delivered safe environmental XXX note, with work of past unsolicited program the compliance fact, an this is growing engagement, we our for related year environmental for recovery. a of water, week, watershed total leadership a and that quarter and year. record transformational today drinking Quality volume gallons, of nice water a the of recognizes primary of is in in to of communities and Full to Arizona recognition is the meaningful Environmental the in we national Bronze recycled received water approach element providing On water. This level allows we over voluntary the announced years recognition of that reuse that us received from demonstrate achieve customers XX.X% for stewardship company's management a Department future which resources conservation. recycled million

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

connections XX, remains X% activity XX,XXX the XXXX. organic total our and Development increased front at active areas. housing to strong service in September very On growth

before prior cite specific permit growth. XX% home In the the Recession. fact single to suspended city Maricopa best over year COVID-XX. projection not permits Typically, now, we as that could projections end through the have due sources for to do the up on QX since Great of have housing family pace those been We right the year and XXX issue

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

land seek building more the seek we're boom housing, homebuyer going area next and over to see builders to rapidly affordable XX Phoenix in return As the months. affordable Pinal county

is or are and rapid positioned Pinal buy throughout service short, been it build beginning. to you well that and the this the really following a in is to path our areas we the corridors. company elsewhere. benefit large of in about no, strategy So as again utilities for county growth we from happening since have what a speaking of along while, and in and This for those This for company growth been growth have preparing was our

this through earlier allowed focus Beyond Chris for organic and Krieger growth Strategy new growth, daily acquisitions the as opportunities. Officer year on of addition Chief business has

in last and Chris development. XXXX progress call. later constant announced are on will now first business more making we As week, since information just provide our the acquisition completed

rates. to modest elements Global with don't effective acquisitions, a discussed before years positioned be organic next expect as Finally, not pandemic. We notable increase requesting XXXX have case they and we these for is to customer of well in rate addition filed that come. well strong that during the to increase until all requested growth the have new current growth a is quarter January and we in decision rate assure rates and be the Water the any further year on regulators will X, to beyond Putting together, September

Board has of of paid a with rest business. approved the X% dividend Directors increase annual monthly the along are to the dividend our to we our growing committed as Finally,

of highlights. new XXXX. on XXXX on The call first I over record be dividend financial to the now XX, will December will at for the December XX, to turn rate paid Mike holders monthly

Michael Liebman

compared which Ron. of This connection driven or consumption XXXX. $XXX,XXX $XX.X million $XX.X approved Total is XXX,XXX by organic changes Similar increase. Thanks, X% rate was approved expenses Notable included XXXX growth, revenue in increase and rate maintenance increases. quarter up the $XXX,XXX $X.X to $X.X expenses everyone. the the million, compared in increase XXXX. million the primarily primarily our in by XXXX through were costs Hello, compared million costs and QX increase QX X.X%. increased consumption this to increase. revenue This an increased revenue connection of to QX organic was XXXX. quarter $X.X million is primarily driven driven X.X%. increase to and is growth, of Tear Operating This million, in increases operating or operating in to increase by X.X% $XX.X date of or by for an reflects was

to or and $XXX,XXX. $XX.X our reduced expenditure in our by due $XXX,XXX of date This $XX.X by to million, QX million expense associated Year expense depreciation expenses G&A through the of we're increases to capital an primarily were these is assets XXXX increase increased XXXX. And about $X.X in million with increase Second fixed amortization plan. thirdly, of operating offset compared X.X%.

$X contract, $X.X in QX received $XXX,XXX expense. A other $X.X of non-cash QX was XXXX of the Year million other primarily date of disposal increase compared due elimination XXXX. FATHOM The addition from was due as to expense royalty the asset to was $XXX,XXX. the to of was for million Now, million of XXXX million $XXX,XXX to $X.X to to the the XXX of income to Loop the elimination increase QX discuss XXXX. $X.XX in Other QX of primarily $X.XX XXXX, million approximately other as through expense in in well in royalty fathom of XXXX million compared

$X.X date XXX,XXX for attributed $X.XX through and in of XXXX net income stock net million QX mentioned, $X.X or to combined books to diluted of of the non-recurring with net of million the XXXX. $X.XX per per QX of the or share. net was $XXX,XXX non-cash QX in diluted was date $X.XX non-cash of income; diluted final proceeds $X.XX $X.X increase $X.X was QX the million Water decrease an throughout primarily to Year Global XXX compared is share. had XXXX million of This After XXX to in on income diluted to share restricted for expense per Loop just adjusting XXXX. the expenses decreased XXXX loss QX contracts net $X.X share X% to payout or XXXX. income adjusting non-cash income or disposals This the of Turning million of XXXX whereas after asset year per

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

the to our situation. call on turning touch like liquidity over, Before I'd

With over results. we have XXXX review business $XX the I'll of our existing quarter. to on strategic our $XX.X the support financial and initiatives line to to cash million activities Chris million QX our development for call concludes credit, operations on growth strategy. the liquidity of and $XX and unused This our million ongoing pass hand update of

Chris Krieger

before will highlight passing I morning, items three Thanks, you the call everyone. Ron. back for Mike. to Good

will growth you in story. four to the past, revenue elements our As we different discussed recall,

natural discuss customer growth Mike within existing our utilities, Ron First, heard and you earlier. organic which

activity. case rate recurring Second,

acquisitions. area due and My to last the fourth on focus those new establishment rate or expansion remarks area service acquisitions. elements, Third, activity, expansion, service recurring three growth of case will and

to relates rate case it activity. growth revenue As our to

of filing XX Ron mentioned, year. this rate made case we As our on August

to the in including case filed are approximately opportunities to approximately opportunity the involved, X, meaningful is themselves. which further new phased filing small, to As Besides revenue XX% think existing of not creates rates our further and troubled be equivalent forward proposes incent discussion in with customers, rate It state. additional to $X.X regulator's contemplates utilities issue, these in increase elements XXXX. policy the and stakeholders January effective a owners, company. growth proposals the good in only commission consolidation increase, starting rates in for of our also revenue, We for a on million the the move the all through

XXth change long the recall, of project administratively on normal on hearing the filing you'll this This continue staff. track opportunity in party's As its by anticipated, make a approving has complete means we we deemed you see as Procedurally, Arizona will the including commission calendar September improve Arizona. the Global outline the having later procedural is an which case, accomplished sufficient utilities, important record as corporation itself. and proceeding acquiring XX, receive of Water this first along a and year, framework is and filing we update the other the to month can to the October our milestone case great now called is About course. proceed and Overall, case order, key such testimony a a what and progresses. as the events for to we

holdings Port expansion staff’s our and service new of areas Inland of turning and current Now, the land Project. a we of regarding Certificate service received for hearing ACC establishment to quarter, Arizona In and Convenience canal areas. Necessity recommendation held

landowners city of The project by and Necessity of The actively directly future filed Certificate year. and to Nicholas quarter track on is of is our one the Convenience case This near to and end infrastructure the to new adjacent operations. Maricopa we order in As receive expect continue a Coolidge. XXXX in you'll marketing the land related XXXX. planning to approximately located this expansion, our and we Western new Relative site. the acres commission area also we service represents will efforts of County property the recall,

receive first of XXXX. half filing We ACC to expect in approval of the this

located Inc., the element greater acquisition announced Finally, water of utility revenue area. the growth Company of Water drivers Last acquisition to last week, in a Tucson we relates Mirabelle activity. the our

Our to logical our this represents footprint. a close through utility the acquisition. our proximity first Mirabelle service in growth is extension rock since transaction deal step in area red XXXX, in of making next our this Tucson,

low financially existing While complements not business. there's deal that make it so will headlines speak, risk to a our

his in that near I'll for and quarter. the opportunities to This other call this future. pass now Ron. pursuing the the the and continue initiatives and will announcements update business profile, on developments have concludes hope We fit further strategic to back the

Ron Fleming

clear, well and Chris and uncertain It is you, positioned we with Thank were strong balance thank but a times sheet these discipline Mike. you, to strategy. weather made

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

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

questions. your answer to available now are We

Operator

ahead. [Operator Instructions] question Capital. The from Gerry first go from Please ROTH comes Sweeney

Gerry Sweeney

it the description front. little on or acquisition, or Could Mike. Ron of in you least looks what scope acquisitions, candidates of what you're out for so the potential sense maybe there we Arizona like the or can be size what get at? and the size like a of pipeline I'll Chris or acquisition Good maybe the start bit Notice acquisition market just like, of a morning. A give at looking qualitative just of Maybe Mirabelle looks whether questions. number maybe couple the

Chris Krieger

morning, Yes, Chris. this good Jerry, is

directly to question. your So a couple thoughts of

of whole as ACC things than perspective, The directional set. first larger And range wastewater that. Mirabelle, looking at the state in then those of to from over a just would Arizona, from XXX give and much our be, you of as we're the small website the to opportunity water generally utilities speaking, the lists sense

from I and then like which it also a really the if se a our company, is standpoint, Mirabelle, see, for aggregating won't, up per and we something deployment adding from a and business start well, we're the think, that grab base standpoint, but Mirabelle perspective, can growth of for from us meaningful rate headlines, you in. the customer capital be lot

in significant our meaningful really So set and a make company. can opportunity I difference think, Arizona, in

Gerry Sweeney

the infrastructure of least some part or Rocks, tuck it's and people just assuming I'm very attraction you're close the Red acquisition to in? it. to easy at going pretty it that Got and leverage to to existing Mirabelle was either

Chris Krieger

Yes, for that's part sure. of it

Okay.

Gerry Sweeney

I And any was ACC it. particular, there election down Got the then in commissioners for recently. believe comments on an there

Just update you have and And that potential an was policy or either regulatory impact that curious, agency? if on what how stands. there was with

Ron Fleming

is Ronald, start with that. this Hey, Yes. Gerry I'll

right. You're an A was There lot is election. on. going

Gerry Sweeney

elections are couple There on. going

Ron Fleming

of many in election the Commissioner A is going things on. one Arizona

you So right. are

to the are the in us lead candidate in and in probably O'Connor all other up factual are candidate here Republic, them. that's There has for Leah seats. [ph] a data there Jim sitting the that and two today then take candidate You other today second, here Tovar the Peterson Republican. will who are are up available then reason the know gave Marquez looks And below Democrats, today I third. there three are is like two sitting a for The candidates and But three election. seats

And Olson the Kennedy. so with that to you Commissioner go know would current republican three democratic our Commissioner Sandra to Justin and commission make

communities been going water going think place. And or regulatory really Commission the at don't to commission this communications the impact Arizona think I ultimately, through on and at that what's down through on in have or rate really of front. establish that our regardless will ultimately, case, all So, company elected campaigns of is the we hard our what change would cycle, a the worked who other within in on we've our good

do what to we're good, the been doing and Corporation and outcome, continue good the we keep can elected. build had you the names, going we feel just relationships your the think develop are have those do we think. But And they do. who about regardless ultimately then And you'll there would what felt Commission. you own know, we good you So down right at things to of research

Gerry Sweeney

it, County, two most interesting Got of Philadelphia I'm guys as counties the the you Maricopa know I country point in are County, probably reference. now. in a right

October say. XX% sorry, track a comment, September to October, through XX% and something I'm permits, growth other September question, like I one like family XX%, year through date is that, So single should Permit big. another look

being for was know, there? and Water on you some the part growth months, of going not in and you able know, being not to as travel, little you Just you what from City, the and Lots update area of bit being a maybe in strategy commentary, perspective in the of or what's of said to path it's Maricopa in developed growth, surrounding growth, your driving give earlier qualitative has Global utilities. building this XX really of can to? last a year, buying But maybe just XX the

Michael Liebman

is of Californians lot there's Maricopa a map, But move Mike. that in. Chris Arizona the happening. this I'll we CNH, of think, of that putting into a think in chime benefits communities and and at Phoenix, the lot available, specifically the outside the seeing Gerry, on growth lots the ask COVID we're the what City implications of take of and and high that. of Phoenix developments areas the and affordability of potentially to seeing, stab we're there, obviously fact a I having and Ron light bedroom is

seen October, place. is we a And That's we've believe and the we're really so ramp And good last it's mentioned, seeing puts that the up continued; what it so few you driving months. through that. in what us that's was as

Gerry Sweeney

it appreciate Okay. it. me. That's for I

Operator

from next go The [indiscernible]. comes Please question Instructions] ahead. [Operator

Unidentified Analyst

regard in this does this and for My that? guys. what call. the Good what financial of your cost question acquisition a like morning, morning project is taking you are [ph] acquire to it terms and my Mirabelle And to small revenues parameters report appreciate

Michael Liebman

hey this Yes, is Mike. John,

but So it's the XX acquisition prices customers. disclosed, is transaction something we've small that a

of material where an it's at. not transaction, it's but it's kind So overly

Unidentified Analyst

Okay.

residential these customers? are these So

Michael Liebman

Yes.

Unidentified Analyst

to in consolidating me of lot it up rolling for typically, out of a that different and for attractive multiples. medical expect you financially companies What those and in dealers, which do of list doing a you you for make do of XXX that the pay you on companies industries And Well, expensive at because different future a industry, find those a water that? suffer transactions? is you high how Arizona, an look question make you indicated to those in public Or pretty in have suggests involved been growth? success that when for A what Okay. equipment, have full is, listed is etcetera. do what we I've those going budget and based afford handful in do range acquisitions cost strategy can

Ron Fleming

deal it. like I asset and this of ultimately, like Mike the the meaning think I hey, a any any this we're not across specifics, there's mean, disclosing the the I mentioned, to Ron, way is class quality asset. Yes, range mean, almost John, is but benefits industry, the consolidation dependent it's about just the upon the benefits, would and buyer,

locations, So for opportunity what in exists other that consolidation utilities. a and call of need, and is see demand clearly unmet troubled in we that the Arizona, there's we the

basis your we think But then So you're that's ones. type C's of We're big C, to that. not will talking seller, the just can for E's and here. like the when forth based be question, the some E demand water and larger get want makes won't around a and original smaller and would us doesn't the structure aren't won't on to what mean about. you we valuations happen. we're if about clearly, opportunities exchange values if market then talking And assets that premiums specifically those place and scale, that But do on Class and of to now, back D, about DS, which was that other, their the about the sit talking in each companies the the financial sense the deals buyer, of

something to cash certainly the and that flow are they cash so them. means to And owners,

so that we what but been they're a consolidated value accident two have there just paradigms, and when that them inside how the in replacement the cash that to profile, sell just flow so for utilities. regulatory get risk on to got taken you the the asset works obviously, that's deal of they high And a risk from And a based there's there's to as looks you XXXX, it we do. XXXX. at reminder utility. believe, three XXXX. of we we utility a as then on have just no, announced reminder, And as and those the Verse, our look actually a that did from one four in But

we invest that And that automation. mentioned, just them, and them inside that's our improve we We get to get have can ultimately to the Chris then the as our done at to to favorable just standards pay. the put accretive and been rate believe customers deals more ultimately, to and shareholders, that's on that's able do of we that'll up cost. very acquisition to continue But bring And the investment a then, valuation even get we based the that. to quality rates

us in immediate, So, frankly, valuation if for think or we there against them to can an by a make to And each stock time, that's step it. is do -- arbitrage isn't today. we the strategy. think increase over to enough function going it. do need, left itself can But a we we try And our of do there's get deal we

Unidentified Analyst

and one of operational these? do at find they when troubles you these of with or you so you’re acquiring go troubles kind Are Okay, they you financial these when are utilities projects, of troubled, range say troubles? looking that what

Chris Krieger

This is Chris. Yes.

their capital each operational that projects, they've the troubled but projects or utility they just to safe, it's has when continue to obviously, up it. complete their because So how was they bought to make challenges to urge service, unique to from to raise the and the back they the either own don't size, relative providing been need, usually is operating to set reliable system specific it have how the pattern,

can so a of of it all things. And those be myriad

in ultimately, to to that's issues we customers. think but of where that's trouble value the our that's so, come to I provide guess regard, And in it benefit we from expertise part those bring of table. and can that fix the we that And and in

that’s for things in butter. and So difficult utilities challenges are that wheelhouse our them those our small bread

Unidentified Analyst

great. competition deals? that's these about Okay, What for

Chris Krieger

as And And no I to at we've the for a opportunity. there's think opportunity set for competition been Arizona, any we there, successful thankfully, price there's right the Yes, deals so significant and doubt, have that. we don't alluded think find Ron right we're sure, makes out that so to at do but going in to, don't sense. right us we

Unidentified Analyst

Are point at outside this Arizona? looking Okay. you at anything

Chris Krieger

balanced state, that generally those looked we've at we talking outside was the haven't opportunities elements anything So found about. of that's all different Ron that

nothing above company drivers we of have it We four And don't so sense. do state, like as I fence growth to our state that most. in in say, eyes to happened makes that the different we'll will, so if keep proverbial But between really our line. ever the here another we think have much opportunity

Unidentified Analyst

Okay, good. Thank you.

Operator

next Instructions] go [ph] ahead. from comes question [Operator from Greg Please Morgan The Stanley.

Unidentified Analyst

your Hi, company. I'm to new

or have usually when equity? possibly if are you me, excuse been I that So ask cash some for make they your acquisitions, answered? questions Usually,

Michael Liebman

this Greg, Yes, Mike. is

So have of that our the with and of cash have on with and of unused set opportunity we on north the plenty got the smaller the balance sheet then liquidity credit. right line million, we've now of side, $XX we cash,

some are our we're place what two, in for looking the Chris a that ones smaller those at. between we're deals larger mentioned good of So and

we look to capital from that and [ph] to in side that dented be debt and markets equity the fulfill regard, help successful or so able And acquisition. would

capital. the smaller on deals, for So cash and to the we'd deals look bigger additional

Unidentified Analyst

you registration registrations have million a to shelf your of purpose just that's the renewing So an a one $XXX just [ph]? keeps old that gives

Michael Liebman

years That's this exactly three August. right, was up with Greg, past our

And million. just for re-upped it so another then $XXX we

Unidentified Analyst

Okay.

growth wells Arizona, the same and the people the So the dropping from other from states from hearing at lack work? of is How not and have migrating again, Colorado and so that that I'm you that to and utilities California do read you you Or is water of Or source Colorado housing have, that do you Arizona. they buy do does the water you state the that But once water and about, need? assets Arizona? starts a from River, I'm of river I from but a buy? about time, sustainable, articles the

Ron Fleming

meet Ron, is you. to this Greg, good

so know, today. follow requires I'll here necessary. a But And typically You you try answer. about short we're as long to to with it talking keep up open water

is a a a regional issue issue. and a issue, and so issue term both water term So, local long and short

those were things those other. so And each to start intersect with kind of

water, Global primarily we are company, the utilizes if as Today, wastewater, about on talked in do conservation at manage a demand resources associated home, and that upon. the result rely on the that today? groundwater, wards or per all where we way we low Water So water groundwater of per research we recycled us And water, with you really earlier. capita, but our local a

to foreseeable pretty we of any local together, that we're issue we resource so put our future. and don't respects proud have water really our the is that, with portfolios utilities advantage And in expertise we some And were the competitive today. and so on

and utilities than of the of what's fully the But we supply industrial agricultural that? it kind water way state. Colorado could and that on issue. rather do, supportable well the have we we're that's again, long when can I the that spend Sure, today. here for things Long to had losing a called in but year term term, economic headlines. of what less affecting and good So, way supply portfolios some necessary. So long to for business. Arizona. non-essential creates long development driest and like that, longest that all time to lines River what issues, you're needed just otherwise versus has talking more, level, XXth with activity have. that going as and water it's level right, are away what's demand longest we're our and at in state summer of term sure thus the actually, water would even in are a means and long is for Primarily, we the growth highest, use. a is And no in that's is term, and on intersect you're local level with it's positioned called headlines we're drought, The the We at We'd do our going time slowing what we all use sustainable our growth the opinion, about states All and about M&I your that federal do municipal address We're ever. about bad. good excess from that's that operate the good and is they And across the sooner than are so bad what's help the of lot that the more which making today. it, we implications our like all dealing occurring things all hottest,

the you And I that question with want you of connect to further. into again, answer so that's to way if separately that would any dig and happy

Unidentified Analyst

Okay.

Maricopa in guess, growth, I you another County and new the described growth just So for County.

some of needs satisfy mention just made Home water you whatever or their are? enough that, those industrial, Builders to have provide think to I

Ron Fleming

area, And, growth. it. right. think utility largest for to largest our you just and That's the about exactly for years to point I'll lot of a and this our data That's come, that's give incurring way one

to are demand growth. water to than all current and less We our into this for allow one meet today, available portfolio third both continue

data that's So hopefully, meaningful point. a

Unidentified Analyst

And that river? water a from think that are or well, the two only would coming be coming there is I from sources.

Ron Fleming

water groundwater in first, River. local state Colorado offer got have which your basically state the supplies, is got supplies, of out you You you've then water you and

we because around again, just the our go emerging in getting model to original each infuse business system to to areas, management know the a we're I new So know, water was there, our was and strategy. primarily plan, overlay communities metro the total other that yes, regional consolidate rely today, Phoenix, existing

groundwater say I the state state new aquifers, already historically just most areas existing supplies. high plan, metro quality of most all suburbs their say was that of of rely controlled so And out upon the basically municipalities large to that water large and available the because that, Phoenix because emerging and these and that will in

there don't point, we time. positioned I it I place long can't challenges use in a term say about We tap I that. whereby worry long portfolios. for things there's so of those portfolios, that a Have that or earlier supply want into the lots some talked to local utilities about a other cost. we have need the or a groundwater to Generally, today. just supplies are great market go our don't for really at water future term buying supplies are things; at we the to there those comes can, don't Now, do Because

about and where place. we're coming of So areas Valley Northern the is high central a state and rules. Mexico, aquifers. down quality And we together wells the and we water. which from to reason have into Groundwater groundwater massive called it has Arizona good there's for statutes Arizona, the are valley talking in Sun northern There, the quality under right high the a water that been large is we're flows and pump

Unidentified Analyst

very all much. Okay, Appreciate Thank you right. it.

Operator

go The next question comes from [indiscernible]. ahead. Please

Unidentified Analyst

Great, questions. for taking the thanks

you with called The Can business the help timing we what should think for and frame out is several and How imminent? a road pretty potential guys? [ph]. development maybe you years first it guys that that Eldorado me about magnitude that you holdings sizable one means or down great for more looks something the on you

Ron Fleming

more So of up something we the in think it's there. midst time growing definitely intimate in

the So think about I it. way this is would

in our in the is look the You center integrated Maricopa, know, city, at which up of the is right largest you'll project, heart location the if utility.

both do wastewater, recycled means we and So water, that water.

than we're earlier, And do Recession. the talked to more or on City the looks like year prior the year track this then Great since I growth so to of is any permit about Maricopa

it is they out, be. builders years a points blocks XXXX into growth of like you that XXXX, only down rate couple year, is that, it that growth sell north locked that like them or you. so a it get XX% that's occurring. is break the of like, I'll Maricopa And have finished front sounds in in so some pipeline City to home And growth, That's to in this to can keep partially and There's, what lots data And could looking know, add those year's, per fulfill finished, which for of right, and today. developers lot. that the

it for phases no do the And now, they big. They're for that starting as so with projects project starting reason. didn't they announce

phase, I from first between keep then XXX just is phases speaking. they'll doing lots, there, believe, The somewhere generally XXX and XXX around lot and

And improvements do them will out, horizontal two alongside the the necessary, we year so right right a do against of to the ours in that they're heart project it's starting are probably city.

So locks I about talked that not really it's earlier. back right the on start And for us. they'll complicated those that putting of pipeline end

X% selling part be that So But the in so. that the we'll next the community allows homes that It it. years on three becomes to in or today. organic seen of end it we're continue that growth put growth the almost project you a probably of or just just size into the once ish on continuously, city of back

Unidentified Analyst

the some not But say more potential us would I you And earlier. mean, terms sense make forward? sellers good there's be just getting dead sell that coming willing Or are to not Or are horse a to M&A front for hurdles to and finding guess, beat these sellers then Great. shareholders? sellers? to as real on you the going

Chris Krieger

say you everybody there's, Category know, a and B. probably there's bit little of would in A I

recent Ron some XXXX, one had And had XXXX. so I we've success. And we alluded a shows, as think is, as to, in few this more

opportunities but we good going so, feel there. what are out about forward, And

Unidentified Analyst

some and to then testing around of some wastewater country stream. there or alerts disease that, And one. where oddball fascinating in All pilots whether way seems some of just seems it's out a kind like road. the down involved via there's spread, COVID, been I'm the this get curious just sort something It guys some you right, COVID like reports anything utilities like an for do it the like early to or maybe if

Ron Fleming

is Yes, we're an happy that take to important no, in And role fascinating. see very such it issue. industry our

make really the that. and we leader of we different a being on You that from know, in and technology use that like of true lot do do on a water lots industry, reuse fronts pride things the ourselves in

is, is in in the topic, including in the large are the ASU and that is municipalities, Tempe, very definitely interested space lot like but of city and the ultimately, of very located. fact utilities from academia, all includes them got metro the we large Phoenix here ASU a and groups that over So, the early and institutions which in where area,

decided learned a be going front what so we rapidly. to that And is on was lot

verse, at we back, those ourselves try the see you and what Let best create learn sit practices have. that go to it best to happens, scale know, practices implement

So, of we're we involved future, level will we we're research at assume be but really I monitoring some not what's going point. at on on. as assume the And this in that side well, the

Operator

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

Ron Fleming

to speaking for like your in look with the interest We Resources. ongoing operator. forward today Water thank call Global I All to and you you, right, participating just in for everyone thank again.

Operator

This conference is today's call.

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

Global Water Resources (GWRS) 8 Nov 202020 Q3 Earnings call transcript