Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water
resource management company, reported results for the fourth
quarter and full year ended December 31, 2022. All comparisons are
to the same year-ago period unless otherwise noted. The company
will hold a conference call at 1:00 p.m. Eastern time tomorrow to
discuss the results (see dial-in information below.)
Financial Highlights
- Revenues increased 7.7%, to $11.1
million in the fourth quarter of 2022, and increased 8.6% to $44.7
million for the full year (excluding unregulated revenues of
approximately $0.7 million), with the growth due to an increase in
active service connections and an increase in rates.
- Net income increased 138% to $824,000
or $0.04 per share in the fourth quarter of 2022. For the full
year, net income increased 53% to $5.5 million or $0.24 per
share.
- In November 2022, announced an
increase in dividends to $0.29791 per share on an annualized basis.
The first monthly dividend payment at the new rate was paid on
December 29, 2022 to holders of record on December 15, 2022.
Q4 2022 Operational
Highlights
- Total active service connections
increased 4.4% to 56,270 at December 31, 2022 from 53,882 at
December 31, 2021.
- Continued design and engineering work
for the Inland Port Arizona mega-site where Global Water will be
working with Procter & Gamble (P&G) to provide water,
wastewater and recycled water services to P&G’s new
manufacturing facility.
- $8.7 million of CAPEX investment in
existing utilities to provide safe, reliable service, and focused
on increasing revenues, reducing expenses and building rate
base.
- Begun providing bulk water services to
Seven Ranches Domestic Water District in Maricopa, Pinal County,
Arizona.
- Surpassed six years without a
significant compliance violation.
Subsequent Event
In February 2023, the company completed the acquisition of
Farmers Water Co. in Pima County, Arizona. The acquisition added a
total of 3,300 active water service connections and approximately
21.5 square miles of Certificate of Convenience and Necessity
service area in the Town of Sahuarita and the surrounding
unincorporated area of Pima County. It also increased Global
Water’s total active water service connections in Pima County to
nearly 5,000.
Management Commentary
“2022 was great year of progress across the board, as
demonstrated by our safety and compliance track records, business
development success, and our top-line growth with increased
profitability,” stated Global Water Resources president and CEO,
Ron Fleming. “These strong financial results were primarily driven
by organic growth in connections, new connections associated with
the acquisition of Las Quintas Serenas, and approval of new
rates.
“Early in 2022, we continued to expand our footprint with the
acquisition and successful integration of two smaller ‘tuck-in’
water utility acquisitions. We anticipate that the full integration
of these small water utilities under our professional utility
umbrella will help promote safe, reliable, smart water management
practices for the benefit of all stakeholders.
“During the fourth quarter, we recycled approximately 125
million gallons of water. This recycling is a result of our
extensive ‘purple pipe’ program that facilitates the use of
recycled wastewater for use in common areas, thereby saving
precious drinking water. Our automated real-time meter reading also
helps preserve water resources, building upon nearly 15 years of
experience implementing advanced metering infrastructure
technology. Our special rate design, which was again supported and
approved by the Arizona Corporation Commission in our most recent
rate case, also incentivizes customers to conserve water on a daily
basis.
“In February of this year, we welcomed Farmers Water to our
growing family of utility companies. As our largest acquisition
since going public on Nasdaq in 2016, we see significant
opportunity to make capital improvements, such as deploying the
same advanced metering infrastructure or meter upgrade project we
completed last quarter for Las Quintas Serenas. Through the
implementation of our unique approach to utility consolidation,
automation and water resource management, we will provide safe,
high-quality, and sustainable water services to the community.
“We are looking forward to working with P&G on providing
water, wastewater and recycled water services to their new
manufacturing facility. The new plant will be another major anchor
for the Inland Port Arizona industrial mega-site, along with the
new Nikola manufacturing plant that began production last year.
These major projects demonstrate how Inland Port Arizona offers
tremendous opportunities to companies looking locate to this area.
In addition to job growth and associated residential expansion, we
believe such large new facilities will enable the more efficient
deployment of infrastructure and integrated utility operations that
help provide safe, reliable and sustainable utility solutions for
the entire region.
“In the new year, our primary mission continues to be the growth
of our core service areas, and aggregation of water and wastewater
utilities, so that our customers and the communities we serve may
realize the benefits of consolidation, regionalization, and
proactive environmental stewardship. We continue to evaluate a
number of attractive acquisition and expansion opportunities in
Arizona’s Sun Corridor, including growth regions around
metropolitan Phoenix and Tucson.
“While we are currently experiencing a slowdown in housing in
response to inflation and increased interest rates, our service
areas remain well positioned within the path of population and job
growth in and around metro-Phoenix and Tucson, and we believe these
regionally planned service areas could ultimately serve hundreds of
thousands of service connections. We also anticipate future growth
through service area expansions, such as those due to large
industrial projects that would be looking to locate in or around
our service areas.
“We anticipate that the integration of our newly constructed and
acquired facilities and the implementation of our Total Water
Management will result in efficiency improvements, greater
automation, and higher quality customer service. Additional
benefits include access to our greater financial resources and
economies of scale. As a result, we anticipate that both the
utilities and the communities we serve will realize numerous
benefits, as well as support our continued revenue growth and
profitability in 2023.”
Q4 2022 Financial Summary
Revenues
Total revenues in the fourth quarter of 2022 increased $0.8
million or 7.7% to $11.1 million compared to $10.3 million in the
same period in 2021.
Total revenues for the full year 2022 increased $2.8 million or
6.7% to $44.7 million as compared to $41.9 million in 2021.
The increase in revenue for both the quarter and year reflects
the 4.4% increase in active service connections, with this due to
organic growth and new connections associated with the acquisition
of Las Quintas, as well as an increase in rates due to Rate Case
Decision No. 78644. The increase in revenue was partially offset by
ICFA revenue recognized in 2021 that did not occur in 2022.
Operating Expenses
Operating expenses increased $867,000 to $9.9 million in the
fourth quarter of 2022 compared to $9.0 million in the same period
in 2021. The increase was primarily attributed to increased general
and administrative expenses as well as increased depreciation and
amortization. These costs were slightly offset by lower operations
and maintenance costs.
Operating expenses for the full year 2022 increased $2.0 million
or 5.7% to $36.9 million compared to $34.9 million in 2021. The
increase in operating expenses was primarily due to the acquisition
of Las Quintas Serenas combined with increased expenses as the
company continued to grow. Additionally, general and administrative
costs increased, including higher professional fees tied to
acquisitions and higher regulatory expense tied to the company’s
recent rate case. Lastly, depreciation and amortization expense
increased $0.4 million due to the company’s capital expenditure
program and the acquisition of Las Quintas Serenas.
Other Expenses
Total other expense totaled $275,000 for the
fourth quarter of 2022 compared to other expense of $728,000 in the
fourth quarter of 2021. The $453,000 improvement was primarily
attributable to the higher capitalized interest during the three
months ended December 31, 2022, partially offset by the income
recognized on the one-time cell tower sale in the fourth quarter of
2021 that did not occur in 2022.
Total other expense for the full year 2022 totaled $1.4 million
compared to $2.2 million in 2021. The $0.8 million improvement was
primarily driven by higher Buckeye growth premiums and lower
interest expense in 2022, partially offset by the income recognized
on the cell tower sale noted above.
Net Income
Net income totaled $824,000, or $0.04 per share,
in the fourth quarter of 2022, compared to $346,000, or $0.02 per
share in the same period in 2021.
Net income increased $1.9 million to $5.5 million, or $0.24 per
share in the full year 2022, from $3.6 million, or $0.16 per share
in in 2021.
Adjusted EBITDA
Adjusted EBITDA remained relatively flat at $4.8
million in the fourth quarter of both 2022 and 2021. While revenue
increased in the fourth quarter of 2022, the primary drivers for
the relatively flat Adjusted EBITDA can be attributed to the
Buckeye premium which was lower by $0.2 million and the company
incurred higher deferred compensation costs by $0.3 million
associated with the increase in stock price.
Adjusted EBITDA increased $3.4 million, or 18.3%, to $22.1
million for the full year 2022 compared to $18.7 million in 2021.
The increase was primarily attributable to increased revenue,
partially offset by increased expenses tied to the acquisition of
Las Quintas Serenas, the natural increase in expenses tied to
growth, and the general and administrative increases including the
higher professional fees tied to acquisitions and higher regulatory
expense tied to the rate case.
Capital Resources
Cash and cash equivalents totaled $6.6 million at December 31,
2022, as compared to $12.6 million at December 31, 2021. The
decrease was primarily due to the company’s capital expenditures
program as it continued to expand and invest in its infrastructure
to support the recent growth and future growth expected within its
service areas. As of December 31, 2022, the company has no notable
near-term cash expenditures, other than a principal payment on its
debt obligation in the amount of $1.9 million due in June 2023,
$1.9 million due in December 2023 and $1.9 million due in June
2024.
Dividend Policy
In November 2022, the company announced an increase in dividend
to $0.29791 per share on an annualized basis. It recently declared
a monthly cash dividend of $0.02483 per common share (or $0.29791
per share on an annualized basis), which will be payable on March
31, 2023 to holders of record at the close of business on March 17,
2023.
Business Strategy
Global Water’s near-term growth strategy involves increasing
service connections, improving operating efficiencies, and
increasing utility rates as approved by the Arizona Corporation
Commission. The company plans to continue its aggregation of water
and wastewater utilities that will allow the company and its
customers to realize the benefits of consolidation,
regionalization, and environmental stewardship.
Connection Rates
As of December 31, 2022, active service connections increased by
2,388 or 4.4% to 56,270, compared to 53,882 at December 31, 2021.
The increase in active service connections was primarily due to
growth in the company’s service areas.
Arizona’s Growth Corridor: Positive
Population and Economic Trends
The Metropolitan Phoenix area is steadily growing due to
low-cost housing, excellent weather, large and growing
universities, a diverse employment base, and business friendly
environment. The area’s population has increased throughout 2020
and 2021, and it continues to grow. The Employment and Population
Statistics Department of the State of Arizona predicts that Phoenix
Metro will have a population of 5.8 million by 2030 and reach 6.5
million by 2040. The company sees this strong growth outlook as an
opportunity to increase active service connections and grow
revenues.
Conference CallGlobal Water
Resources will hold a conference call to discuss its fourth quarter
and full year 2022 results tomorrow, followed by a
question-and-answer period.
Date: Thursday, March 9, 2023Time: 1:00 p.m. Eastern time (10:00
a.m. Pacific time)Toll-free dial-in number:
1-855-327-6837International dial-in number:
1-631-891-4304Conference ID: 10021334Webcast (live and replay):
here
The conference call webcast is also available via a link in the
Investors section of the company’s website at
www.gwresources.com.
Please call the conference telephone number five minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after 4:00 p.m. Eastern
time on the same day through March 23, 2023.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 10021334
About Global Water ResourcesGlobal Water
Resources, Inc. is a leading water resource management company that
owns and operates 29 systems which provide water, wastewater, and
recycled water services. The company’s service areas are located
primarily in growth corridors around metropolitan Phoenix. Global
Water recycles over 1 billion gallons of water annually.
The company has been recognized for its highly effective
implementation of Total Water Management (TWM). TWM is an
integrated approach to managing the entire water cycle that
involves owning and operating water, wastewater and recycled water
utilities within the same geographic area in order to maximize the
beneficial use of recycled water. It enables smart water management
programs such as remote metering infrastructure and other advanced
technologies, rate designs, and incentives that result in real
conservation. TWM helps protect water supplies in water-scarce
areas experiencing population growth.
Global Water has received numerous industry awards, including
national recognition as a ‘Utility of the Future Today’ for its
superior water reuse practices by a national consortium of water
and conservation organizations led by the Water Environment
Federation (WEF). The company also received Cityworks’ 2022
Excellence in Departmental Practice Award for demonstrating
leadership and creativity in applying public asset management
strategies to daily operations and long-term planning.
To learn more, visit www.gwresources.com.
Cautionary Statement Regarding Non-GAAP
Measures
This press release contains certain financial measures that are
not recognized measures under accounting principles generally
accepted in the United States of America (“GAAP”), including
EBITDA, and Adjusted EBITDA. EBITDA is defined for the purposes of
this press release as net income (loss) before interest, income
taxes, depreciation, and amortization. Adjusted EBITDA is defined
as EBITDA excluding the gain or loss related to (i) nonrecurring
events; (ii) option expense related to awards made to the board of
directors and management; (iii) restricted stock expense related to
awards made to executive officers; and (iv) disposal of assets.
Management believes that EBITDA and Adjusted EBITDA are useful
supplemental measures of our operating performance and provide our
investors meaningful measures of overall corporate performance.
EBITDA is also presented because management believes that it is
frequently used by investment analysts, investors, and other
interested parties as a measure of financial performance. Adjusted
EBITDA is also presented because management believes that it
provides our investors a measure of our recurring core business.
However, non-GAAP measures do not have a standardized meaning
prescribed by GAAP, and investors are cautioned that non-GAAP
measures, such as EBITDA and Adjusted EBITDA, should not be
construed as an alternative to net income or loss or other income
statement data (which are determined in accordance with GAAP) as an
indicator of our performance or as a measure of liquidity and cash
flows. Management’s method of calculating EBITDA and Adjusted
EBITDA may differ materially from the method used by other
companies and accordingly, may not be comparable to similarly
titled measures used by other companies. A reconciliation of EBITDA
and Adjusted EBITDA to net income (loss), the most comparable GAAP
measure, is included in the schedules attached to this press
release.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain forward-looking statements
which reflect the company’s expectations regarding future events.
The forward-looking statements involve a number of assumptions,
risks, uncertainties, and other factors that could cause actual
results to differ materially from those contained in the
forward-looking statements. These forward-looking statements
include, but are not limited to, statements concerning our
strategy; expectations about future business plans, prospective
performance, growth, and opportunities; future financial
performance; regulatory and ACC proceedings and approvals, such as
the anticipated benefits resulting from Rate Decision No. 78644,
including our expected collective revenue increase due to new water
and wastewater rates; acquisition plans and our ability to complete
additional acquisitions and the expected future benefits; our
dividend policy; population and growth projections; technologies;
trends relating to our industry, market, population growth, and
housing permits; liquidity; plans and expectations for capital
expenditures; and other statements that are not historical facts as
well as statements identified by words such as “expects,”
“anticipates,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” or the negative of these terms, or other words of
similar meaning. These statements are based on our current beliefs
or expectations and are inherently subject to a number of risks,
uncertainties, and assumptions, most of which are difficult to
predict and many of which are beyond our control. Actual results
may differ materially from these expectations due to changes in
political, economic, business, market, regulatory, and other
factors, including the duration and severity of the COVID-19
pandemic and the actions to contain the virus or treat its impact,
such as the efficacy of vaccines (particularly with respect to
emerging strains of the virus). Factors that may also affect future
results are disclosed under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in our filings with the Securities and
Exchange Commission (the “SEC”), which are available at the SEC’s
website at www.sec.gov. This includes, but is not limited to, our
Annual Report on Form 10-K for the year ended December 31, 2022 and
subsequent filings with the SEC. Accordingly, investors are
cautioned not to place undue reliance on any forward-looking
statements, which reflect management’s views as of the date hereof.
We undertake no obligation to publicly update any forward-looking
statement, except as required by law, whether as a result of new
information, future developments or otherwise.
Company Contact:Michael Liebman CFO and SVPTel
(480) 999-5104 mike.liebman@gwresources.com
Investor Relations Contact:Ron Both or Grant
StudeCMA Investor RelationsTel (949) 432-7566Email contact
Media & ESG Contact:Tim RandallCMA Media
RelationsTel (949) 432-7572Email contact
GLOBAL WATER RESOURCES,
INC.CONSOLIDATED BALANCE
SHEETS(in thousands, except share and per share
amounts)
| |
December 31,2022 |
|
December 31,2021 |
| ASSETS |
|
|
|
| PROPERTY, PLANT AND
EQUIPMENT: |
|
|
|
|
Land |
$ |
1,480 |
|
|
$ |
1,338 |
|
|
Depreciable property, plant and equipment |
|
344,043 |
|
|
|
313,700 |
|
|
Construction work-in-progress |
|
66,039 |
|
|
|
53,511 |
|
|
Other |
|
697 |
|
|
|
697 |
|
|
Less accumulated depreciation |
|
(124,522 |
) |
|
|
(113,380 |
) |
|
Net property, plant and equipment |
|
287,737 |
|
|
|
255,866 |
|
| CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
6,561 |
|
|
|
12,637 |
|
|
Accounts receivable — net |
|
2,139 |
|
|
|
1,994 |
|
|
Customer payments in-transit |
|
462 |
|
|
|
201 |
|
|
Unbilled revenue |
|
2,557 |
|
|
|
2,510 |
|
|
Taxes, prepaid expenses, and other current assets |
|
2,439 |
|
|
|
1,645 |
|
|
Total current assets |
|
14,158 |
|
|
|
18,987 |
|
| OTHER ASSETS: |
|
|
|
|
Goodwill |
|
4,957 |
|
|
|
5,730 |
|
|
Intangible assets — net |
|
10,139 |
|
|
|
10,339 |
|
|
Regulatory asset |
|
3,169 |
|
|
|
2,336 |
|
|
Restricted cash |
|
1,001 |
|
|
|
806 |
|
|
Right-of -use asset |
|
1,891 |
|
|
|
— |
|
|
Other noncurrent assets |
|
34 |
|
|
|
10 |
|
|
Total other assets |
|
21,191 |
|
|
|
19,221 |
|
| TOTAL ASSETS |
$ |
323,086 |
|
|
$ |
294,074 |
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
Accounts payable |
$ |
2,173 |
|
|
$ |
2,120 |
|
|
Accrued expenses |
|
8,056 |
|
|
|
9,191 |
|
|
Customer and meter deposits |
|
1,682 |
|
|
|
1,646 |
|
|
Long-term debt — current portion |
|
3,833 |
|
|
|
3,833 |
|
|
Leases — current portion |
|
505 |
|
|
|
142 |
|
|
Total current liabilities |
|
16,249 |
|
|
|
16,932 |
|
| NONCURRENT LIABILITIES: |
|
|
|
|
Long-term debt |
|
104,945 |
|
|
|
108,734 |
|
|
Long-term lease liabilities |
|
1,616 |
|
|
|
199 |
|
|
Deferred revenue - ICFA |
|
20,974 |
|
|
|
19,035 |
|
|
Regulatory liability |
|
6,371 |
|
|
|
7,421 |
|
|
Advances in aid of construction |
|
93,656 |
|
|
|
84,578 |
|
|
Contributions in aid of construction — net |
|
26,404 |
|
|
|
21,326 |
|
|
Deferred income tax liabilities, net |
|
5,949 |
|
|
|
3,269 |
|
|
Acquisition liability |
|
1,773 |
|
|
|
1,773 |
|
|
Other noncurrent liabilities |
|
755 |
|
|
|
778 |
|
|
Total noncurrent liabilities |
|
262,443 |
|
|
|
247,113 |
|
|
Total liabilities |
|
278,692 |
|
|
|
264,045 |
|
| Commitments and
contingencies |
|
|
|
| SHAREHOLDERS’ EQUITY: |
|
|
|
|
Common stock, $0.01 par value, 60,000,000 shares authorized;
24,095,139 and 22,832,013 shares issued as of December 31, 2022 and
December 31, 2021, respectively. |
|
239 |
|
|
|
228 |
|
|
Treasury stock, 224,093 and 182,445 shares at December 31, 2022 and
December 31, 2021, respectively. |
|
(2 |
) |
|
|
(2 |
) |
|
Paid in capital |
|
44,157 |
|
|
|
29,803 |
|
|
Retained earnings |
|
— |
|
|
|
— |
|
|
Total shareholders’ equity |
|
44,394 |
|
|
|
30,029 |
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
323,086 |
|
|
$ |
294,074 |
|
GLOBAL WATER RESOURCES,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except share and per
share amounts)
|
|
|
Year Ended December 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
| REVENUES: |
|
|
|
|
|
Water services |
|
$ |
20,885 |
|
|
$ |
18,944 |
|
|
Wastewater and recycled water services |
|
|
23,843 |
|
|
|
22,241 |
|
|
Unregulated revenues |
|
|
— |
|
|
|
729 |
|
|
Total revenues |
|
|
44,728 |
|
|
|
41,914 |
|
| |
|
|
|
|
| OPERATING EXPENSES: |
|
|
|
|
|
Operations and maintenance |
|
|
10,889 |
|
|
|
10,299 |
|
|
General and administrative |
|
|
16,130 |
|
|
|
15,146 |
|
|
Depreciation and amortization |
|
|
9,890 |
|
|
|
9,490 |
|
|
Total operating expenses |
|
|
36,909 |
|
|
|
34,935 |
|
| OPERATING INCOME |
|
|
7,819 |
|
|
|
6,979 |
|
| |
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
Interest income |
|
|
65 |
|
|
|
19 |
|
|
Interest expense |
|
|
(4,036 |
) |
|
|
(5,201 |
) |
|
Other |
|
|
2,592 |
|
|
|
2,962 |
|
|
Total other expense |
|
|
(1,379 |
) |
|
|
(2,220 |
) |
| |
|
|
|
|
| INCOME BEFORE INCOME TAXES |
|
|
6,440 |
|
|
|
4,759 |
|
| INCOME TAX BENEFIT (EXPENSE) |
|
|
(934 |
) |
|
|
(1,150 |
) |
| NET INCOME |
|
$ |
5,506 |
|
|
$ |
3,609 |
|
| |
|
|
|
|
| Basic earnings per common
share |
|
$ |
0.24 |
|
|
$ |
0.16 |
|
| Diluted earnings per common
share |
|
$ |
0.24 |
|
|
$ |
0.16 |
|
| Dividends declared per common
share |
|
$ |
0.30 |
|
|
$ |
0.29 |
|
| |
|
|
|
|
| Weighted average number of common
shares used in the determination of: |
|
|
|
|
|
Basic |
|
|
23,172,733 |
|
|
|
22,619,469 |
|
|
Diluted |
|
|
23,332,356 |
|
|
|
22,902,970 |
|
GLOBAL WATER RESOURCES,
INC.UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except share and per
share amounts)
|
|
|
Three Months Ended December 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
Change |
|
% Change |
| REVENUES: |
|
|
|
|
|
|
|
|
Water services |
|
$ |
5,031 |
|
|
$ |
4,641 |
|
$ |
390 |
|
|
8.4 |
% |
|
Wastewater and recycled water services |
|
|
6,073 |
|
|
|
5,677 |
|
|
396 |
|
|
7.0 |
% |
|
Unregulated revenues |
|
|
(5 |
) |
|
|
(10 |
) |
|
5 |
|
|
(50.0 |
)% |
|
Total revenues |
|
|
11,099 |
|
|
|
10,308 |
|
|
791 |
|
|
7.7 |
% |
| |
|
|
|
|
|
|
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Operations and maintenance |
|
|
2,629 |
|
|
|
2,643 |
|
|
(14 |
) |
|
(0.5 |
)% |
|
General and administrative |
|
|
4,551 |
|
|
|
3,861 |
|
|
690 |
|
|
17.9 |
% |
|
Depreciation and amortization |
|
|
2,691 |
|
|
|
2,500 |
|
|
191 |
|
|
7.6 |
% |
|
Total operating expenses |
|
|
9,871 |
|
|
|
9,004 |
|
|
867 |
|
|
9.6 |
% |
| OPERATING INCOME |
|
|
1,228 |
|
|
|
1,304 |
|
|
(76 |
) |
|
(5.8 |
)% |
| |
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
Interest income |
|
|
40 |
|
|
|
2 |
|
|
38 |
|
|
1900.0 |
% |
|
Interest expense |
|
|
(681 |
) |
|
|
(1,244 |
) |
|
563 |
|
|
(45.3 |
)% |
|
Other |
|
|
366 |
|
|
|
514 |
|
|
(148 |
) |
|
(28.8 |
)% |
|
Total other expense |
|
|
(275 |
) |
|
|
(728 |
) |
|
453 |
|
|
— |
|
| |
|
|
|
|
|
|
|
| INCOME BEFORE INCOME TAXES |
|
|
953 |
|
|
|
576 |
|
|
377 |
|
|
65.5 |
% |
| INCOME TAX BENEFIT (EXPENSE) |
|
|
(129 |
) |
|
|
(230 |
) |
|
101 |
|
|
(43.9 |
)% |
| NET INCOME |
|
$ |
824 |
|
|
$ |
346 |
|
$ |
478 |
|
|
138.2 |
% |
| |
|
|
|
|
|
|
|
| Basic earnings per common
share |
|
$ |
0.04 |
|
|
$ |
0.02 |
|
|
|
|
| Diluted earnings per common
share |
|
$ |
0.04 |
|
|
$ |
0.02 |
|
|
|
|
| Dividends declared per common
share |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
|
|
| |
|
|
|
|
|
|
|
| Weighted average number of common
shares used in the determination of: |
|
|
|
|
|
|
|
|
Basic |
|
|
21,961,489 |
|
|
|
22,648,819 |
|
|
|
|
|
Diluted |
|
|
22,062,654 |
|
|
|
22,937,706 |
|
|
|
|
GLOBAL WATER RESOURCES,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands)
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net income |
$ |
5,506 |
|
|
$ |
3,609 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Deferred compensation |
|
901 |
|
|
|
2,884 |
|
|
Depreciation and amortization |
|
10,518 |
|
|
|
9,490 |
|
|
Right of use amortization |
|
182 |
|
|
|
— |
|
|
Amortization of deferred debt issuance costs and discounts |
|
44 |
|
|
|
90 |
|
|
(Gain) Loss on disposal of fixed assets |
|
4 |
|
|
|
18 |
|
|
Provision for doubtful accounts receivable |
|
103 |
|
|
|
86 |
|
|
Deferred income tax expense |
|
1,367 |
|
|
|
(307 |
) |
|
Accounts receivable |
|
(248 |
) |
|
|
82 |
|
|
Other current assets |
|
210 |
|
|
|
(1,076 |
) |
|
Accounts payable and other current liabilities |
|
(2,416 |
) |
|
|
415 |
|
|
Other noncurrent assets |
|
387 |
|
|
|
(300 |
) |
|
Other noncurrent liabilities |
|
6,778 |
|
|
|
5,395 |
|
|
Net cash provided by operating activities |
|
23,336 |
|
|
|
20,386 |
|
| |
|
|
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
Capital expenditures |
|
(33,984 |
) |
|
|
(18,250 |
) |
|
Cash paid for acquisitions, net of cash acquired |
|
(180 |
) |
|
|
(2,068 |
) |
|
Other cash flows from investing activities |
|
(24 |
) |
|
|
(1 |
) |
|
Net cash used in investing activities |
|
(34,188 |
) |
|
|
(20,319 |
) |
| |
|
|
|
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
Dividends paid |
|
(6,889 |
) |
|
|
(6,609 |
) |
|
Advances in aid of construction |
|
2,344 |
|
|
|
3,817 |
|
|
Refunds of advances for construction |
|
(1,140 |
) |
|
|
(1,007 |
) |
|
Refunds of developer taxes |
|
— |
|
|
|
(1,364 |
) |
|
Proceeds from stock option exercise |
|
3 |
|
|
|
4 |
|
|
Payments for taxes related to net shares settlement of equity
awards |
|
(585 |
) |
|
|
(656 |
) |
|
Principal payments under finance lease |
|
— |
|
|
|
(147 |
) |
|
Loan repayments |
|
259 |
|
|
|
(4 |
) |
|
Repayments of bond |
|
(3,833 |
) |
|
|
(1,917 |
) |
|
Proceeds from sale of stock |
|
14,812 |
|
|
|
— |
|
|
Debt issuance costs paid |
|
— |
|
|
|
(46 |
) |
|
Net cash provided by (used in) financing activities |
|
4,971 |
|
|
|
(7,929 |
) |
| INCREASE (DECREASE) IN CASH,
CASH EQUIVALENTS, AND RESTRICTED CASH |
|
(5,881 |
) |
|
|
(7,862 |
) |
| CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH — Beginning of period |
|
13,443 |
|
|
|
21,305 |
|
| CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH — End of period |
|
7,562 |
|
|
|
13,443 |
|
A reconciliation of net income to EBITDA and Adjusted EBITDA for
the three months and years ended December 31, 2022 and 2021 is as
follows (in thousands):
| |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
| Net
Income |
|
$ |
824 |
|
|
$ |
346 |
|
|
$ |
5,506 |
|
|
$ |
3,609 |
|
| Income tax expense |
|
|
129 |
|
|
|
230 |
|
|
|
934 |
|
|
|
1,151 |
|
| Interest income |
|
|
(40 |
) |
|
|
(2 |
) |
|
|
(65 |
) |
|
|
(19 |
) |
| Interest expense |
|
|
681 |
|
|
|
1,244 |
|
|
|
4,036 |
|
|
|
5,201 |
|
| Depreciation |
|
|
2,691 |
|
|
|
2,500 |
|
|
|
9,889 |
|
|
|
9,490 |
|
| EBITDA |
|
$ |
4,285 |
|
|
$ |
4,318 |
|
|
$ |
20,300 |
|
|
$ |
19,432 |
|
| ICFA Revenue Recognition |
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
(683 |
) |
| FATHOM settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(69 |
) |
| Wireless communication tower
sale |
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
(1,485 |
) |
| Management Options |
|
|
39 |
|
|
|
(18 |
) |
|
|
174 |
|
|
|
323 |
|
| Gain/Loss on Disposal of
Assets |
|
|
7 |
|
|
|
373 |
|
|
|
4 |
|
|
|
18 |
|
| Restricted Stock |
|
|
395 |
|
|
|
— |
|
|
|
1,344 |
|
|
|
1,171 |
|
| Rate case adjustment |
|
|
38 |
|
|
|
— |
|
|
|
314 |
|
|
|
- |
|
| EBITDA adjustments |
|
|
479 |
|
|
|
410 |
|
|
|
1,836 |
|
|
|
(725 |
) |
| Adjusted
EBITDA |
|
$ |
4,764 |
|
|
$ |
4,728 |
|
|
$ |
22,136 |
|
|
$ |
18,707 |
|
GWR Global Water Resources (TSX:GWR)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
GWR Global Water Resources (TSX:GWR)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
