Global Water Resources (GWRS) 7 Nov 242024 Q3 Earnings call transcript

Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources, Inc. 2024 Third Quarter Conference Call. [Operator Instructions] I would like to remind everyone that this call is being recorded on November 7, 2024, at 1:00 p.m. Time. Eastern

like President conference go of now Ellsworth, to ahead. turn Vice Executive Corporate to would over the Joanne I Affairs. Please

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

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

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

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

included within non-GAAP Certain may today's call. be measures

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

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

XX is growth active operational our start into record. very the of pleased service finally, very results report safe will X.X%. million the some third mandate, September $XX.X I XXXX X.X% XX, as prior. health safety to are with our proud being XX,XXX connections from XXXX. and The we highlights. Total of quarter months improvements the rate We increased to existing for invested to of annualized are and Year-to-date, provide reliable and service. And top with utilities we've public infrastructure XXXX, compliance

X we streaks the For significant from events, had prior. our quarter, XXXX continuing compliance and

a fact, In means over significant it this X without event. has been years compliance

dwelling a and organic to further. The Now area. Phoenix growth single-family ended metropolitan customer statistical issued XXXX with XX,XXX in on approximately bit I is unit want greater core the going our what permits market utilities discuss in building

] X permits, XXXX. In For QX market dwelling XXX representing issued XXXX, realized XX% XXX increase single-family Maricopa (sic) months, this the [ the permits. a building from XX,XXX of City last building

this X from XXXX. last realized market building a Maricopa the permits, QX For XXX representing months, XX% increase

see, you QX data year-to-date of As Maricopa. City in the both was metro-Phoenix can the strong and XXXX permit

to notable, Some and retain single-family We of believe more approaching commercial previously in be keep significant housing units occurring with level, retail along is shift some reported, growth. multifamily this This of as shift in large-scale, in reduction over dwelling home pace be annual and growth. will housing City demand an contend note, this there remains by high-density metro-Phoenix supplant year thus, multifamily. On there net complexes run a the combination rate job at and will per time, a units a and XX,XXX the to dwelling met immigration and with single-family shortage Maricopa must metro-Phoenix businesses.

units represents permitted Maricopa in permitted with XXX City permitted for same This in unit of XXX%. was data strong increase the housing the period units or the of compared XXXX. In fact, year-to-date units XXXX XXX X,XXX multifamily also to an

continues housing, places Looking of is net accelerate play. a extremely requires and to the number in commercial pace development. The recreational building at economy and multifamily ahead, Arizona for of some and realize, fact is live, in That immigration is multifamily there in in service projects to an additional stage record projects more people by continue to large-scale high work our metro-Phoenix and and more areas.

invested Additionally, was year economic state industrial And in manufacturing single all last eclipsed year. just boom $XX.X XXXX was best in perspective. Arizona from the industrial XXXX also investment that an the Previously, continues. development with for time billion the

remain including announcements me invested the continues to say Gamble state continues acquired and planned land. billion occur of just year. explode. Frankly, we been in as to expansion that XXXX, additional bullish at here potential in Procter area, on the TSMC Port industry what where Arizona Let Motor is is made where things, Corp. further again, our these Because last Intel the located facility & has future significant unprecedented. Inland Nikola of and in service $XX.X There Arizona chip

that with Gamble. firms Procter locate potential would discussing continue several & to We projects adjacent

Additionally, projects. identified sale acres large working city the over on of property the a City to progress on of The consisting X,XXX Maricopa developer their winning of announced of the complex recently that continues is developer. industrial and

growth continue the is our all will of large-scale believe come, commercial, this housing we considerable years project multifamily see growth. trends, organic and away to strong growth While to in to it that we revenue, from represents years company. Based in several addition another for these industrial generating of still opportunity on

have yes, inflation us drivers are a with As earnings growth I last cost our in high other impacting our earnings release, and and caught up mentioned bit.

that utilities we for X ago new rates is We was cost need XXXX. XXXX to over in However, years investments to the a it's made. this all address period further price and year increases year discuss important largest recognize Chris test test the significant will later. whose last our and that have

our greenfield you to how be organic acquisitions to Water year water will XXXX Water, meaning see utility wastewater years environmental now benefits for rapid utilities, considerably utilities of will new face is of we in and so we solid in rate a call water of all grow things going regionalization aging as realize connections, together, ways his stewardship cases, the able and and While the consolidation, advance putting growing scarcity, to that Global over customers of growth, the Global as these come turn another continue earnings highlights. and be financial challenging infrastructure. I and the Mike our can aggregating the regulations X mission grow company: to to for can

salary result by which attributable $X.X an Thanks, revenue revenue, QX third or decrease and of Notable services in related revenue XXXX. XXXX in X% $XX.X X.X% active that intangible driven depreciation million of Ron. $XX.X in compared connection everyone. $X.X increase $XX.X was was revenue XXXX. ICFA or capital to decrease to revenue $XXX,XXX and wastewater depreciation recognized connections. Regulated tied was a changes in was million of ICFAs million recur did compared XXXX a XXXX. QX costs as X.X%. operating QX XXXX in is down in primarily a partially QX This X.X% QX our to largely XXXX This primarily This medical had amortization, and included water were not increase in excludes to which that for Total decrease assets in wastewater a lower did QX QX offset compared was for by quarter primarily the in increase up approximately or to increase which by expenses we million, $X.X The was And growth. Operating a in million was recur partially ICFA operating program. decrease Hello, and amortization offset by QX additional expenses expense decrease million, revenue, to in to primarily and recycled million $XX.X the XXXX for and XXXX. organic acquired $XXX,XXX, due to expenses was which expenditure in of was maintenance not secondly, attributable wages.

to for expense. approximately for activity million in to $X.X for driven as for and Buckeye QX per Adjusted share growth QX or QX other income review now such quarter $X.X an talk Chris $X.X items, increase premium. Net higher was diluted noncash was income restricted third on This financial of was the per diluted pass about XXXX. And from stock other ICFA income compared $XXX,XXX to regulatory in to by as primarily XXXX. which $X.XX XXXX or the to share as such EBITDA $X.XX million X.X%. This let's and expense. well to items our initiatives now of the concludes QX revenue update XXXX was EBITDA, our as million Now compared or strategic This nonrecurring adjusts as is $XXX,XXX I'll results. income million adjusted in in QX quarter. call QX expense XXXX as $X.X compared XXXX $X,XXX improvement discuss of the XXXX. Other

everyone. Thanks, Mike. Hello,

First, an election update.

the X in still here know, the X X Lopez The on top Arizona are of X getters. Commission of incumbent had may seats you Walden on as the Commissioner current results the Republican preliminary, Marquez ballot. the but this morning, As Rachel Peterson, candidates, and are Rene we Arizona, Corporation vote

the it been last has since In terms commission, of actual activity quiet the time at spoke. relatively we

to Division next week. acquisition open for commission's judge recommendation today, progressing opinion scheduled future at first the issue close to acquisition Tucson the hearing the law approval will for a ACC filed the and Utilities be date. After the a XXXX. hearing, the estimate quarter We and with staff application recommended the First, continues meeting is administrative the order in of consideration

still rate ACC the Second, on its future. XXXX, file case Division will will update We Water Utilities December an recommendations estimate in in the provide process. staff we Global continues their and Farmers initial that

As take. action rate is our may the not always we or the guarantee commission case cannot with what cases, may

Water as the Global for a and Santa company. largest Verde test utilities, heard utilities X within we our Global Ron in earlier, mention the Finally, year Cruz are Water Palo you

filed, stay investments rate the of We continue X for reliable the safe, acquisitions we quarter. I'll to Ron. making regulatory outreach we of provide educate is our sufficiency pass to the We anticipate year the case the call receive update date half service order. This the of and a from activity in XXXX. filing back the are to Once approximately commission now the on case customer growth. ahead concludes community to first on ensure and the efforts takes it

Chris. you, Thank

quarter, continue achieve So meaningful despite we this headwinds. to growth

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

any We are answer now available to questions.

[Operator Gerry Instructions] Capital. today Sweeney And with from come first ROTH question will our

two Just a But one speed opportunities, reshoring has continued for or questions little quarter, that are U.S., expectations this obviously, the And speaks bit changed actually. maybe itself. maybe manufacturing week. the into of landscape Great political any viewpoints had up on as Phoenix well just curious on the and operations? Greater that's maybe as I'm well changed the you your semiconductor impact et as some area landscape if as cetera. political

been I prior with take we years done. and administration What's State Arizona the Yes, about has right to significant that deck X of coming investment and lot COVID to And last Arizona is specific and website, here the of up of interesting well. our assessment And the slope of in in things a that. agree of and the really here talk great a manufacturing happy in development has on is economic work available as the over the on curve it, in there. as our investor industrial your the it's to really, some pretty out slope.

the And just more this a going I exists. some throw bit so on ways, already fire that little think in to is fuel

is you're Greater think that of it for of direction, but really of don't X piece, coming Not the us, that we've things only these availability kind of seeing from new to communities cost accelerate couple land I it this. and to these the more historically reasons, So metro-Phoenix counties out about I is going talked push of more for think housing. just and emerging really any a the is on areas. One going area more more there's rural of out and and our

their industries, on in a bit participate gone the as them and area quite these So economic that's boards, Phoenix interested availability new whole. living up here talk for Arizona development obviously to the and of a areas we employees. housing in affordability they're And as the quite and

have we area metro-Phoenix So numbers compete on that we we are. because the strongly of some really in the obviously lowest affordability where

in difficult talk one the not the about industry that supply. water more, future, impacting So this but just as may But of I of industry of but going manufacturing the this infrastructure well. the is growth, is the type type in. that power scale we the matters. And these our And obviously, infill some into power think sites is second facilities for what is are that is at getting needed

being providers, or large because of SRP power versus developed these the actually out heavily areas rural to access it have better into areas the they're redirected run So they APS these to rural or needed type be TEP, actually to transmission that's more areas.

like about, our and respects, City up the move it's continue out to So and the that in been including some areas talking going more to just the Port Maricopa. be Inland and think we project to to of right, we've

then easy it's for can't Buckeye this quarter? Helpful. housekeeping question get was know just Mike, everything. how I it. a long the Mike. I'm sorry, And one much you premium Got morning. do been

problem. just no about Yes, $XXX,XXX. to under about was it XXXX, was It compared $XXX,XXX,

So $XXX,XXX XX%. over it up or was

about $X.X it's good a year-to-date, been So million million $X.X run. year. last versus we're And at pretty

of up $XXX,XXX or XX%. that's So north

been So affordable areas And the as more itself the premium strong. again, it's lot another outskirts. those of on a metro-Phoenix it's it's because mentioned, Ron has Buckeye than one where

it's and to seeing so to sustained And grow. been looking forward or that continue even nice

That's it nice Congrats Got quarter. me. it. the on for

Ron would Fleming question-and-answer seeing remarks. the closing like further will [Operator to back This session. conference any Instructions] over no conclude I'm for turn to questions. I our

Thank Yes. again. everybody and you and of just the for with operator. your for on call ongoing we look Thanks Water. support like you, thank to to participating speaking interest I'd Global and forward

concluded. The conference you for attending Thank today's now has presentation.

disconnect may nice a You now lines, your and day. have