GWRS - Earnings call transcript Q2 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 2021 Second Quarter Conference Call. At this time, all participants are in 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. August Eastern is everyone on X, pm XXXX X:XX being this that I would conference Heather Vice Krupa, turn and over Controller. to President like now to the go Please ahead.

Heather Krupa

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

is development President and Mike Krygier, Fleming Fleming, for quarter. today Mr. Liebman, review Chief Mr. for Krygier operational be and call. Fleming, the will Chief Mr. Liebman the Officer; Speaking Mr. and Chief Liebman results the Executive for quarter. the key Ron 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

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

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

Ron Fleming

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

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

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

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

nearly is results and X We or today. years OSHA extremely on modifier EMOD, low incidents. recordable X.XX only have $XXXX in This ratio related incurred in which an experience loss

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

safety. I it costs most track So in which actual employee safer significant to been has incurred and XX% customer compliance no the X violations said a performance top significant are industry now violation average, lower XXXX impressive over better worker's days another want demonstrate years. costs, These on environment. compliance mandate, customer the results growth. work importantly, our our our last records since insurance for quarter, way, than we performing clearly and now and highlight having in Also

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

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

excellent growth and we Motor of including utilities, the in making which service housing engineering, Arizona areas. project on our Corp. Inland Beyond core areas amongst our existing areas, progress construction the our other earnings new within as service in permitting surrounding Port the are industrial also project, large noted Nikola and release,

manage Nikola began In of including new that growth, capital fact, as the have we to accelerated this we important to It quarter. in requiring to the required areas initial service Motor service. note Corp. prudently investments is type

growth. accelerating have total in again, well all compliance $X.X we've while, about of as this Putting of I will the Global growth been infrastructure investments company invested such, in the and short, who along County. year-to-date turn operational, the call is, large Mike the what This we years you for acquisitions speaking Water is throughout utilities Krygier an brings together, $X.X application these to our buy well continued And from safety, beginning. from the company in and a This for highlights. positioned financial the are Chris discuss build as been utilities strategy elements path really corridors. will Those with have our in in notable to later to know this and existing we since to following and as well areas now is was to preparing financial capital As perspective million Pinal rate the or the call. positioned on a for support our over projects benefit to million. growth the growth growth Maricopa come. and service in-process

Mike Liebman

and XXXX QX everyone. or of XXXX. primarily QX growth, connection by increase million compared Operating million to compared Hello, This increase is costs that increases; expenses is $XX.X XXXX $X.X those organic by Total revenue primarily XXXX. X.X%. as capital increase. driven by lastly, amortization $XXX,XXX, increased our the increased XX.X% up changes second expense was QX expense which and This plan due rate approved consumption depreciation with in and increased increased quarter we or well maintenance increases operating an was of Notable $XX,XXX. by had second, $XXX,XXX driven include: to associated increased $XXX,XXX, increased $X.X intangibles; million, expenditures were operating our as $X.X assets million in our of the of as expenses primarily of the which by of G&A Ron. was revenue to Thanks, in amortization for for fixed costs

we was of of other $X.X expense of Now primarily for expense. QX of $X.X to discuss million XXXX income million improvement income leases was for cell compared $X.X Other to other XXXX. income a and of This in onetime million QX to due $XXX,XXX sold. tower

QX of assets a loss for expense in disposal only QX $XX,XXX $XXX,XXX XXXX. on incurred of of we in XXXX versus Additionally, of

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

compared about up XXXX, which to XX.X% for $XXX,XXX non-cash or non-recurring which and million QX talk adjusted of Now QX adjusts of was XXXX. was items. Adjusted EBITDA, EBITDA in to $X.X

the quarter call and line the When $XXX cash credit over It's turning hand ongoing the million, now for over case to to liquidity strategy. reminding position. also markets $XX need of I'd our growth million quarter. have our with our support have combining we our call financial to registration our pass to growth unused execute of rate our strategy. capital review event $XX.X to Before XXXX the like shelf Chris, access concludes results. folks the update $XX to existing million our to that our in strategic I'll and on operations This Chris million second touch liquidity we on worth the we on initiatives of

Chris Krygier

Hello, Mike. passing I to Ron. everyone. Thanks, highlight before will items X for briefly you call back the

approximately before case reflect completed the our of as revenue pre-file next both million Arizona with $X current rate pending million $X the revenue recommending the quarter, starts The latest week. and Commission continues all position and requesting testimony expected. X:XX:XX [ph] staff increase. increase In our First, RUCO testimony Corporation written rounds was approximately hearing an

I Recommended hearing and drafts Judge and the sets the file summarizing August or From before that case to of is Starts expected legal is As what point, the earlier, XX. party the a on the Administrative Judge next Law around week Administrative called briefs conclude mentioned Law to ROO estimate order. as implemented be Order The is around review sometimes recommendation X, the the will new or Judge's it in and commissioners to QX with Opinion We on abbreviated. and XXXX. then final January a rates or the review ROO commissioners issue

that requested Finally, is note important as the there no we timing be assurance, increase increase. any rate outcome to the however, on can the case, of stated, previously it the rate or of

establishment new of current turning areas. expansion service to areas Next, service and of

City it We water ability in our press Motor providing began in heard you Corp.'s the facility of turnarounds. work manufacturing water a short is potable X an agreement and potable Nikola service less service of December in to execute team read impressive release team. we of utility hard our projects Coolidge. This reflects our with to Ron operations key as referenced, XXXX new later. As months signed Nikola the master than reflection achievement and and A engineering originally provided by with

the turn wastewater service discussions surrounding on initial efforts provision details Nikola. of our Now to to

is continue This from X area to in the efforts homebuilder, Arizona Maricopa. the XXXX. as south customer, utility, to Returning area lots a X our our flies This approximately Inland construction national next crow City customers, a our receiving expect center as implications service Southwest homes to Maricopa As purchased constructing begin end area. our The starting prospective miles the by delivering developer, plan XXX plant residential company. the and Port we we Saint to result customers. customer first week, from to of marketing and development an refer ability quickly water positive industrial anticipate core has to of for of for the Holdings by interest the City of new we the of deliver recently our

future another it growth. opens for geographic First, area

that Second, the infrastructure in us on of currently step it rates. our is sheet, first not $XX is but the in million unlocking balance

next updates progresses. provide the project the We year as will over

growth revenue Finally, the relates our of last acquisition to drivers element activity.

are initiatives call on update before quarter. have back I'll We opportunities discussions the This advanced announcement to next Ron. and developments strategic business the conference to pass call. concludes hope and for earnings several our the now an in on

Ron Fleming

you, and continues a to well Thank positioned is strong are clear Chris. with accelerate. sheet we strategy disciplined It balance that

partners access perspective, projects, stronger, new more to the been organic be the great an big we never than growth, privilege small. have from through utility and operational fact, and pursue to financial expansion we for to we've and both acquisitions capital and In ample and serve; communities liquidity to and have

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

We to are available questions. answer now your

Operator

the are the closing to remarks. now There over begin the to Instructions] question-and-answer presenters I no session. conference like the [Operator the questioners will would We any back This question-and-answer lines. session. concludes from turn telephone for

Ron Fleming

Thank forward soon. Great. like we you to on Thanks, thank call in again Global look We'd ongoing participating to the operator. you, your for with Water today everyone just Resources. interest speaking and for and

Operator

This concludes today's conference call.

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

Global Water Resources (GWRS) 8 Aug 212021 Q2 Earnings call transcript