Earnings call transcript Q4 2022

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Operator

Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources Inc. 2022 Year End Conference Call. At this time, all participants are in listen only mode.

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

Joanne Ellsworth

press of everyone. thank you year call. is our issued we quarter our And for and today's Web copy Welcome XXXX financial end release, available on by results Yesterday, which joining us a fourth site@www.gwresources.com. on

factors for strategic Fleming, today materially is risks, actual include Krygier, and estimates today guarantees are cautioned reflect involve those reflect Speaking will for the management's Mike and Officer; as expectations, performance. current XXXX Liebman, a statements. company's forward-looking assumptions not Such Officer. to results Mike of Operating Financial Ron views summarize begin, for events. Chris on hereof forward-looking differ forward-looking projections of and future Chris President are and to year, statements. from not which results statements, Chief operational and would contained the to number and assumptions, events presented the investors reliance review estimates, questions the initiatives Accordingly, the in Executive any place Officer; regarding undue other of Ron, statements of key Mike available Ron cause statements and future forward-looking development that we Chief will may could These uncertainties, date will end remind Chief at that the financial information and before year. I business Chris But the be for certain like you call. will the review

our affect measures Certain For analysis within discussion additional risk may of information Form included within and today's the SEC. are financial factors factors the available@www.sec.gov. XX-K non-GAAP management's call. filings sections Such operations with of condition and included may latest results filed future results, and read that please be regarding

please see release, available to For of measures reconciliation earnings included a on tables these site. is the GAAP measures, our Web in financial yesterday's the comparable which

over I to Ron. will the turn now call

Ron Fleming

Thank realize continued you and advance are and to end for We're to Water environmental regionalization aggregating for Thank In the pleased the today. for year worth so mission utilities and very report year consolidation, you, quarter another mentioning. many scarcity, was results challenging of face XXXX. Global morning, Joanne. we joining growing fourth and short, water in highlights wastewater Good stewardship everyone. us as aging incredible There can infrastructure. water of of the our that regulations our and benefits customers the XXXX

the total XX,XXX XX,XXX active from connections for earlier of with rate year. at combining full million at customers, increased case XX, the service XXXX, completion When connection the service For XX% growth December which company of December our X.X% $XX.X up to the for in X.X% rates year, XXXX. new revenues XX, increased year, to included our

base. provide facility. reducing expenses is investment and in building revenues Procter & $X.X service and Global Port the CapEx in invested increasing new Motor with to water, water safe, services to which will adjacent on for the Gamble mega Arizona utilities in We We Inland engineering focused site also be recycled where design Nikola continued million facility, provide existing Water and work to quarter and wastewater to working and manufacturing Corp. rate the P&G’s reliable

the in and local providing bulk ranches the also district request Arizona water the city We of domestic at seven board. Maricopa, to begun service water district

completed of close, XX.X two total an acquisitions safety surrounding increased total very an certificate connections County, Pima in from acquisitions Within to a ongoing are tuck-in to continues compliance company miles smaller of our approximately of in X,XXX of subsequent area finally, square active our the County. Town active -- necessity added the continued perspective. Farmers Sahuarita unincorporated in and Water’s of have Pima nearly acquisition convenience And connections mandate, of expand of From water water Global compliance County, Pima utility we with service Pima Water the and Company. safety service These momentum. to in service acquisition X,XXX. being and records. The in and proud acquisition Earlier to the County that the quarter with area year build February water we XXXX, area our and top footprint

events. compliance reportable the preventable and events significant no we For had OSHA year, zero

this years updates gone now want fact, for since significant compliance I OSHA company. allows such our event. to reportable team pause, have our six event to means thank provide now and Global surpassed whose preventable over XXX days have a the wonderful highlight at without Water here performance me exceptional In we and last

reduction either Despite Now but I nearly family territories multifamily continue push our XX,XXX housing areas. at Family accelerate building development and Phoenix in scale existing or in adjacent. continue and With realize in Single to experienced what That the was permits people same activity Metro commercial permits pace permits. Phoenix our want play. that In this areas, seeing continues a still national high large the slowdown, did the over to utilities, to live, service work immigration and home to said period to and and our net core also places growth our utilities. still the communities housing, on continues Phoenix more X,XXX single requires projects recreational this building XX% booming we're Maricopa, service in local a largest XXXX, of economy our in immediately for is housing, Metro organic Metro discuss extremely XXXX, why in customer Arizona in is and and out on and XXXX. that slowdown, more and city to In does going issued

This best have facilities organic continuing elements in be & the including Because of into we excellent Port service acquired make year the engineering, the Gamble Nikola XXXX all to expanded Global Corp. these will new for where development large our positioned. continue to on industrial Putting of been Arizona the Based the time return addition trends, also multifamily housing housing Arizona, being years industrial well investment manufacturing construction to single continues all XXXX. boom we all see in we come, together, growth, an areas, Motor continue remains the of believe to scale Water land. permitting of that these from commercial, Inland Procter and to Additionally, growth. considerable on industrial strong and seems perspective. this, for progress with economic and

the financial for turn now call over will Mike to I highlights.

Mike Liebman

increased for was of the explanation new ICFAs, revenue combined connections, increase combined compared QX Again, of were Hello, Ron. XXX,XXX annual million, any agreements, primarily August in excludes the $X.X acquisition compared in up $XX.X XXXX Quintas of of expenses active XXXX La acquisition to $X.X Serenas our rates Operating grow implemented as La by operating the the revenue This were and by which increased or ICFA million increase of for million as financing professional million changes QX of Quintas fees, $XXX,XXX, in higher with found in XXXX. Total service the new which everyone. These XXXX. and with driven Thanks, result and were the La revenue revenue, case primarily the that included with were year related case of a increased in in million for or recognized the X.X% the with increased expense the increase XXXX. $XX.X lower inflation. XXXX, Notable expenses offset higher rate costs driven by primarily we tied expense services XXXX, Serenas. This more Serenas as and or by to rent and reduction this of to in board in X.X% acquisition and was $XXX,XXX, write million associated expenses A increases case stock be XXXX. an increase company off in to These continues in due active matters. by expenses in contract primarily driven rate is filings. to X.X%. our rate XXXX. Regulated revenue expense. $X.X increase in ICFA to service was infrastructure, ICFAs acquisition X.X% by connection $XX.X as can by maintenance of The manage combined fulsome deferred rates coordination price. compared IT approved $XXX,XXX $XXX,XXX operating G&A offset also the of is Quintas recognize which didn't and to known comp was and

acquisition and in increase $XXX,XXX have our La program we expenditure Lastly, in of amortization capital tied the Quintas Serenas. to depreciation

premium was decrease $X.X These $X.X was $X.X increase expense. the Buckeye $X.X This in expense higher million to by Now leases $XXX,XXX of the primarily offset XXXX. to XXXX other tower million capitalized Other and due interest. discuss the growth in sale million XXXX. million in cell compared to for were

to in Turning had XXXX compared equated and to net share. a income This of Global per million income, $X.XX to XXXX. $X.X Water net XX.X% increase was diluted

million adjust EBITDA, Adjusted restricted like million was to noncash XX.X% stock briefly to items in as revenue I'd Now as to of which for expense. such on non-recurring $XX.X talk $X.X touch an or adjusted such ICFA as EBITDA inflation. compared about as items XXXX, increase XXXX. well

in we in the to primarily periods, future XXXX situation related to personnel we given increases expenses While have do costs. been manage able some expect quite see well, to inflation

as would result increase Additionally, expect, as capital you a costs direct of experienced an inflation. we in have

our with Chris, million of financial this, in the a the turning like million increases second will before embedded XXXX I'd test of be rate XXXX. our began season $X.X This over new rates based Lastly, $X.X approved of in on XXXX folks call represents statements. year. January over remind in to XX% And rates of that our to the new

to the This call concludes the on XXXX now results. our update Chris. pass year-end I'll financial

Chris Krygier

Hello, Mike. everyone. Thanks,

This we our have on and bring deal heard may close acquisition something acquisition mention you a proud significant work the As of February Ron fruition of and seen XXXX. Farmers’ the a earlier, to we of. to amount press XX, culmination very in is are release

integrating process are our continuing is and to as brings benefits We now the company significant into the professional platform our expected. utility acquisition on This focused company.

over This to active our at connection it X,XXX X% water represents of XXXX. companies. connections of our count over end the First, family adds active to

from out, convert XX square an represents residential of area additional eventually full homes. that build to XX,XXX pecan it area. of This territory square number farming could miles square approximately At adds over will miles the service customers. XX primarily Second, X% service the prime into service of miles reach

total technology customers from automation approach, management and Farmers’ our benefit internal our operations. other including water will expertise Third, in

future. the Las now to have and XXXX, capital we adjacent Farmers, in costs Finally, with from Serenas customers Quintas the acquisition in investments additional when to our further combined is that scale utility make recover

We deal this are it more term benefits. Briefly and customer provide and believe to came long shareholder pleased turning together acquisitions will broadly.

This We stages continue are opportunities focus and various initiatives existing to with finding prospects. the update the strategic quarter. complement our of pass I'll Ron. on back discussions activity on that growth the now in potential efforts concludes and to our call portfolio in

Ron Fleming

is you, utility well partners we where challenges clear the for of and communities Thank have financial last and from to operational perspective, Chris. It despite positioned privilege years, we great the can to remain serve. continue an the few the be

resource platform regional issues benefit management stakeholders remain address We expansion Thank total to and conclude throughout and all continue Global advance the We the development of investment that support projects involved. new beyond. intend efficiency important us mission our applying economic consolidation. utilities our Water and management to water of remarks. our and acquisition We prepared These appreciate in in will truly the expanding through and you. forefront areas our grow and and water at to your believe we small. Arizona water our both potentially organic and expertise pursue growth, as service will utility, achieving We to and of highlights big industry

We are to questions. answer now available

Operator

Gerry Instructions] question Our first from [Operator of ROTH Sweeney comes Capital.

Gerry Sweeney

terms in those drawl I've I metric is I the of was thought family affordability watching market in permits obviously, to have a But a a slowing tracked on great because that that Historically, Arizona. of growth Maricopa. -- single to question sort is so on area. but watch big

coming growth does plant Should multifamily suggestions, also Maybe permits and You Procter look in sounds income family you statement? that some do going going in semiconductor are and you area, of single to starting different but total and like to have the ideas to at have going term? from at growth going family. going medium & tracking it. of population how watch short rise. have to also and impact there's in ways because how look single growth we How of only terms develop the Gamble where plant the different that Multifamily of you see in, opportunities to we that's be sort in change -- not it's

Mike Liebman

Obviously, So you little has slowed are the bit. building a right. home

medium Although, activity long that there. over on and back expect starting pick multifamily, we're term, up the But see to the some we again. to

And only seven projects, we multifamily intelligence so XXXX only in projects that and latest there's to nine and slated projects, there's an but we months are XX slated have, seven greatest two XX have additional currently -- that out. to they're

could the [XX.XX] a XXXX bit to is [Indiscernible] out. [fulsome] XX sub projects and ultimately units closer quite to there's X,XXX the that result we So XX to in activity more of there X,XXX months with closer units leased

single and from take of that, can't a family industrial each Phoenix, we in to growth are as will on unit the discount be to single is Maricopa of home the reminder you mentioned, is [XX.XX] so a affordability you with who coming believe factor in feel So advantage a that Greater [Indiscernible] to like are a the for new that the lot side, businesses trading pleased these purchase XX% on draw to Arizona, that's folks necessarily we're substantial associated and there And units looking not what long is medium multifamily homes. will of coming integrate position one north the home, do while and then term, in. you and the there revenue we a home as one so I tell family

Gerry Sweeney

think that that stage bit of view earnings, for [XX.XX] but I [Indiscernible] think How five sort you like foundational little of Gamble. I about one, it story maybe project. down to and opportunity And Procter for I growth give I a I the of said, runway look that speaking should long how there. over Obviously, short do and then think medium this years term, it? know the next three, a & Could a to how -- we it's don't as impact on term adds that is, foundational the develops at

Ron Fleming

say what it's Nikola, started really getting that's of way the think a really it, great come I Obviously, to to up announced of to that Port the last Gamble land Inland And then scale made year. of & we going. just smaller now kind just is foundational a of we've mega part site. this is adjacent elements as acquisition to [listing] Nikola service Procter immediately

little to just a and and I'll speak I'll first that So step back more broadly. bit talk

& XXXX that obviously So what for build as the perspective. is at for typically date they're opening us we has of game what well planned organization it ahead or from Procter they're publicly But their late from time telling XXXX a well a they're Gamble, a and they're announced project. see shooting mid least so currently to

just that's out. two So over years

almost we're immediately, total bought. acres. and the was XXX announced them not those and properties put that do that's down the So lots out a & you that road. put is size at which they you the Nikola, XXX starts is further working transactions, work think but currently acres, build of on in But plant I because that of means two Procter financial results that really perspective what potentially can of we ultimately with once least Gamble facilities from of feel What the still that together, for a

meet working And may so on their But now, talk on current what property do phases with them them to for timeline. to and it's up about to that the announce later. we're they

acquired, parcels Inland locate up. entire them, forms, Arizona. from over Port took of select X,XXX like those they two around so Port, call, actually site parcels XX project the two which early, looking has total of And of go. And the say weekly and to the with picked took of inside there's activity because Inland about still just of out a activity a basis. those in this it's the on of potentially that what still parcels we’re properties I'll those we acres But one ones, P&G are people and of XX, really the dealing one bigger dozen a -- the they Nikola the stepping back but to answer information we’re there’s over

refer full Now just going the there's we speak select Inland he technical and they're And electric and to that the that to Coolidge. who's the at in foundation, out whole the project to for going beginning but new to can't it's when, started then familiar there he what belief and And it with and filled beginning you of property and is land or should that, as that company. how their that [XX.XX] what and will actually Port developer this build it, our Lucid, of that's and the facility since we is be Grande vehicle attention is evidence from decades City his see those where Port, this manufacturing Coolidge, did XX we're Inland that's minutes the Casa that facility doing out, first The two, away think of well where supply come. same just he's tractor fill with up years just in of actually and on does regional, the evidence southwest to pretty [Indiscernible] that’s main is to in we now you park come. the there

Operator

this now go Fleming. turn this Mr. like our call please At Sir, concludes question-and-answer to to Instructions] over time, the [Operator session. back I'd ahead.

Ron Fleming

forward look to you Yes. everybody the Global today to and participating appreciate Resources. Thank interest soon. in you, call and speaking for ongoing your Water for we again on like I'd thank it operator. I with

Operator

today's conference concludes call. This

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

Global Water Resources (GWRS) 9 Mar 232022 Q4 Earnings call transcript