GWRS - Earnings call transcript Q1 2021 | Global Water Resources, Inc.

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Operator

Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources Incorporated 2021 First Quarter Conference Call. At this time, participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. at for provided up to be questions. for will that you time queue Instructions would remind at like call I Instructions] [Operator to recorded time. May Eastern is everyone on X, PM XXXX X:XX being this that I would conference Joanne Vice Ellsworth, Affairs. turn Corporate Regulatory over and to President, like now to the ahead. go Please

Joanne Ellsworth

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

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

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

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

yesterday’s included see earnings available on measures, to Ron measures now a our the For Mr. release, financial will tables over website. reconciliation comparable is to the call GAAP I in Fleming. please of these the which turn

Ron Fleming

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

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

call Before will to an include, employee highlights. compliance we our at review for safety top operational on a highlights Operational in I financial review continue quarter few to highlights, regulatory the accordance the level handing to extremely over with Mike and non-reportable incidents. priority, high perform

related days. recordable our only the of Within we events, to X,XXX experienced as has quarter, injuries, expenses incidents safety. in staff no OSHA minor two today, And recordable or employee experienced

incurred have in recordable experience loss in years five modifier and $X,XXX low EMOD OSHA nearly We X.XX. only on related an of resulting or ratio incidents, extremely

As of X a average. reminder, EMOD industry considered to is an be

growth. now and significant in violation which been costs on to in in it the I highlight another X,XXX mandate workers’ Also insurance way, actual employee performance the incurred five costs. records have These better demonstrate safety. now over said comp we customer lower top our our days track performing since quarter, So has results industry average, impressive last XX% years. compliance significant are than customer no and clearly compliance want or our violations

XX,XXX. On as end bringing Phoenix X.X% housing increased remains the active of and strong the front Development to Metro connections QX service our in growth organic compared total areas. total XXXX, activity to connections very and service

year. area, up XXXX in Local family housing XXXX. single by XXXX, QX projections family same over in Phoenix, has totaled XXX% city the April the our already period increase XXXX. indicate growth the XX,XXX to dwelling According that consensus estate XXX Maricopa and over issued estate a for of XX% single XX% continue reminder, a will Specific permits another year-over-year. throughout to through prior consensus, local service real sorry permits permits XXXX real increased As XXXX, of larger Metro

elements accelerating. build since strategy was This Maricopa will turn positioned really well of the again utilities progress from the Global preparing important operational, that an from project engineering, It’s I are including of Beyond been also throughout surrounding growth service. investments and together, large rapid have we rate safety, as discuss in corridors. call over new growth we Inland noted path perspective our earnings amongst Port well service and come. is and accelerated is County core benefit later Corp the County. acquisitions projects our new release, in This speaking prudently a other making along know is the Chris are to Putting Arizona within And a financial the service Mike Nikola in with application notable our Water Motor areas. the we capital following areas, to for to highlights. existing this that now permitting these utilities manage our will financial the large while, call. the areas areas for in of growth, about on requiring for in company, we’ve the our to have or company beginning. as as all to and and this housing type to our excellent what growth growth in positioned construction short, our note of areas in service Those growth compliance Pinal buy years required including in-process for been and you Krygier

Mike Liebman

driven increase consumption was increased Total QX as the $X of medical well was that Thanks, organic for is increase. Operating This $X.X the XXXX were costs by or in our approved QX by operating XXXX. $XXX,XXX, million increased to and revenue for and $X.X increase an Notable to million driven expenses. or increase include which increases Ron. in compared $X.X million expenses which Hello, $X.X XXXX operating first million of rate those is million, primarily revenue primarily changes growth, expenses XXXX. XX.X%. XX.X% compared maintenance of up QX is increased of by quarter everyone. connection of This as as costs

our Second, increased expenditures to capital the due to and tied deferred expense to increased $XXX,XXX, our And expense associated the due compensation depreciation thirdly change in $X.X assets plan. stock primarily primarily amortization increases by in with our the million by price. G&A fixed

an in $XX.XX. Specifically we of a price going our stock to QX $X.XX XXXX, increase saw $XX.XX of in or XX.X%, from

of from QX swing of caused Additionally, large likely XXXX, since. in stock XXXX expense of $X.XX XXXX due positive our creating $X.X or of QX and declined of in swing driving XX%. this G&A negative QX the QX $XXX,XXX to of the by a $XXX,XXX COVID pandemic, deferred increase a compensation million. to to in is This In price of to summary, go to expense stock a price tied XXXX from

of XXXX Lower $X.X $X.X other to Buckeye QX to XXXX. Now million compared reduced was for expense interest expense. discuss royalties. of income million to was due QX $XX,XXX The and in Other primarily increase

Global income, share of to $XXX,XXX net per $X.XX net Turning had diluted of XXXX. or Water loss in QX

adjusted in the of for Now driven to EBITDA of adjust Adjusted XXXX, in EBITDA, the associated increase about change items. stock was to QX XX.X% down compensation million and by expense non-cash primarily talk in previously deferred XXXX, compared mentioned QX $X.X non-recurring $XXX,XXX was which price. to or which

our position. to Chris, touch Before like on turning call the I’d liquidity over to

for review Firstly, million, April combining $XX been which of hand XX, extended of first we existing of $XX three unused to we has for our concludes years, credit have mention million this until over quarter. strategic that of like recently business our $XX quarter our XXXX. When extended with our operations on cash million call update support I’d to million the activities $XX.X now growth credit on XXXX line revolving line strategy. ongoing the I’ll to the results. This liquidity of pass and in development Chris initiatives our to financial

Chris Krygier

everyone. highlight the three to before you I’ll Ron. Hello, Mike. briefly Thanks, for items back call passing

the major process a hearing is provide is a concluded, commission rate testimony to case draft and the First, our legal at judge intervene vote. in around evidentiary the initial as milestone be written and law process complete, the continues evidentiary this for expected. August. for Commission Arizona is June reply the is testimony briefs of July for staff with Corporation the administrative year. or proposed scheduled hearing or and the the the final filed May summarizing XX, parties testimony to consider next receipt case XXXX, After on order After The

commission starting As rates the authorized you our will for will effective the XXXX. January utilities by in majority of be phase any recall, new a multi-year through

the the no of requested rate Finally, however, it’s or any increase. that timing important case, the there can to increase the note on be assurance of outcome

areas the to Corp new establishment Next, the we In provide press Motor release to areas. and of to a expansion Coolidge, the current service in facility Arizona. turning Nikola quarter, announcing our agreement service issued service of

to anticipated service water with quarter. pace construction delivered rapid a continues Nikola Specifically, be this

Arizona we the anticipate of larger demand to to to as While to provide growth long-term various usage inland area. respond we be about don’t that Nikola’s material, port we proposals optimistic area prospects continue in initial service the are adjacent

revenue Commission. commission last both of Corporation element These and by the assets commission activity. purchases, our Inc, with end Once year, water on require month. Twin Company. estimate the the issue acquisitions on the We hand. process of just we growth closing year. the two February with asset an asset signed last acquisitions which by Utility A approval order initiated we drivers cash are the to Arizona purchase agreements of acquisition the we In will relates approved, Finally, this Rincon utility to acquire Hawks Water anticipate that

continue utilities in acquiring water are of to the we prospectively, Arizona state the small diligence to with on focus across large Looking several very wastewater parties. very and the due and from

the outside This update nothing state of quarter. and for continue different to Arizona. development concludes to out explore business Regarding I’ll call initiatives strategic back opportunities Ron. eminent now on the is acquisitions, while the we pass of

Ron Fleming

where us growth, we handle continues to to issues And the to from big serve beneficial that and are this never stronger. platform achieving Chris. and We our your These throughout We the be as water regional utility, investment development conclude our stakeholders expanding believe industry water Thank of Global remain areas Water will Arizona more beyond. and And a and for have well pursue advance economic access applying efficiency our to with It’s financial both of accelerate. we than and to new to water you, at sheet clear consolidation. in Thank we truly high intend expertise total appreciate strategy and privilege grow growth, into and we operational potentially and acquisitions our of that new organic and our service and capital expansion strong communities been If to resource an and you. we management to remarks. utility projects, we highlights involved. and positioned important prepared great have areas partners the ample we small. liquidity be support the all forefront through have perspective, mission disciplined management address balance back

questions. now available any are We answer to

Operator

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

Ron Fleming

today like Resources. Water Thank Global in Great. with I’d everyone operator. again Thank you to soon. look in to for and forward you, speaking your interest participating you we the thank call and

Operator

This conference concludes today’s call.

your you participating your may You lines. and for day. a disconnect have of Thank great rest

Global Water Resources (GWRS) 9 May 212021 Q1 Earnings call transcript