GWRS - Earnings call transcript Q3 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 Inc. 2021 Third 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. November 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, third 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

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

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

Ron Fleming

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

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

call Before will to highlights review quarter. operational a the for I financial review few highlights, the handing to over Mike

First top to level extremely regulatory on priority, our in accordance at compliance with an continue safety incidents. perform we employee high non-recordable and

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

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

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

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

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

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

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

Mike Liebman

were operating s quarter of can of experienced This in found more of note organic by $X.X Shifting water changes that It’s is be while professional filings. in QX Maricopa Notable $X.X revenue. of million coordination include important precipitation. city comes to quarterly million revenue the infrastructure our XXXX to A This the of Ron. XXXX compensation, increased X.X% the XXXX. G&A revenue compared of the services we of versus quarter didn’t was recognition due expenses. In due $X.X expenses ICFAs fulsome known Thanks, increases in annual QX Operating increased X.X of wastewater over or in ICFAs. by and XXXX. medical during explanation experienced million, as primarily primarily where for XX.X%. the increase an in and expenses million under of to which and inches connection QX everyone. rain in compared $XX.X to XX% in XXXX. in this an deferred seven our or primarily of was QX back QX, to our we quarter, from, result growth driven X%, third of for revenue fees and the expense $XXX,XXX is $X.X inches million, also financing agreements revenue Hello, XXXX increase Total to up

by our maintenance We also about $XX,XXX primarily those in due operating which had increases and increases. had costs increased by that revenue lastly was as increase the increased depreciation expense we primarily to about driven fixed And $XX,XXX and by costs amortization assets.

increased other audit not of area. Buckeye discuss XXXX service had that due as connection an company payment expense of a QX other well income was in QX the $XXX,XXX received in the growth to Buckeye This remitted Now was expense of to improvement primarily $X.X City expense, an the for been million XXXX. from as $XXX,XXX to of compared to from settlement

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

G&A down higher revenue $XXX,XXX This as such in expense which Adjusted due the as EBITDA in and offset items talk an can about QX, quarter restricted ICFA to adjusts adjusted was well such the items non stock was to or to $X.X compared QX, increased for recurring to noncash by precipitation as earn million which reduced XXXX EBITDA revenue Now as X.X% out. XXXX. be Buckeye attributed the expense.

million to our existing growth $XX of credit unused ongoing and million, cash liquidity our like $XX support have of When on I’d combining liquidity on hand touch with strategy. operations our our we Now, over position. to million line $XX of

all activity trillion infrastructure that just development home Lastly, Congress approved the receive With income. to the signature developers of we longer from awaits be no understanding that President’s and the on contributions all the has taxable advances in you. growing the builders review finalize. financial now results. to rate service Based call has strategic pass bill, third our for our flow and bill quarter that will the this and to areas on wanted our to concludes to update highlight case cash now quarter. the I’ll XXXX initiatives This $X.X implications us Chris for positive we our

Chris Krygier

Mike. Thanks, Hello, everyone.

Ron update earlier, provide mentioned on and As activity. acquisition an I’ll our rate case ongoing

the our rate process call final expected. case. First, written positions case legal and following. the reflect continues the the Arizona hearings Since Commission administrative last rate Corporation as briefs parties of our completed portion we The of at conference the

approximately for revenue an $X increase approximately step to million $X revenue position in law commissioned the $X office called recommending revenue judge consumer process current an residential an is The staff approximately increase. the administrative utility will opinion X, is the with and million next and order Our requesting in recommendation on million new order. recommending draft what or implemented if review opinion for consideration QX, commissioners judge’s recommended the and issuing XXXX final rates, to April in to the We order. a review estimate a any, commissioners be around The XXXX. the recommended increase, then

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

future the and geographic we and additional and issued as connection the XXXX acquisition the utilities approximately since the is the X own water our Rock in continue solid south utilities XXXX and other press Tucson. activity, Turning to Company service releases consolidating in Red anchor acquisition we acquired Quintas area of deal you XX largest This provides in It a Water proximity Las saw to areas. close on in area. is Serenas September utility November

the and the Global quarter. back the excited strategic to I’ll the now development update This employees, call on are business customers and pass We the welcome into initiatives concludes Ron. the to Water for family. community the

Ron Fleming

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

an fact, never In from we stronger. and have been financial operational perspective,

capital and We through have pursue for new to and ample growth, communities to small. great projects and acquisitions both big partners organic where and privilege liquidity the expansion be we to the serve utility than more to access have

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

We are now available to answer questions. any

Ron Fleming

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

Operator

today’s concludes This conference call.

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

Global Water Resources (GWRS) 9 Nov 212021 Q3 Earnings call transcript