The following is a summary of the Global Water Resources, Inc. (GWRS) Q4 2023 Earnings Call Transcript:
Financial Performance:
For Q4 2023, Global Water Resources reported a total revenue of $12.4 million, an increase of 11.4% from Q4 2022.
Total revenue for the year 2023 was $53 million, up 18.6% over 2022, with water and wastewater revenue reaching 12.3% increase from 2022.
Notably, a large investment of $22.3 million went into infrastructure improvements.
Operating expenses for Q4 2023 were $10.7 million, a slight increase of 8.5% from Q4 2022.
Net income for Q4 2023 was at $1.1 million, marking an increase of 38.5% compared to Q4 2022. For the full year 2023, it reached $8 million, a 45% increase from 2022.
The adjusted EBITDA for the year 2023 saw an increase of 10.8% from 2022.
Business Progress:
The company set records with no significant compliance events and no OSHA reportable events in Q4 2023.
Noteworthy is the successful recommission of the Southwest Plant water infrastructure aiding new developments.
Significant strides were made in the service area, with local housing units and industrial development projects like Inland Port Arizona advancing.
In February 2023, the company made a critical acquisition of Farmers, which contributed to increased rates and revenues.
The company entered into a settlement agreement with the Arizona Corporation Commission promising a substantial annual revenue increase.
Planning and coordination for infrastructure development were observed through ICFAs with developers and homebuilders.
Global Water Resources forecasts future expansions, with a rate case planned for Farmers utility in summer 2024 and another for Santa Cruz and Palo Verde utilities in 2025.
Despite a minor hiccup with the premature inclusion of Southwest plant infrastructure in rate orders, the company remains in negotiations with the Arizona Corporation Commission to resolve the issues.
More details: Global Water Resources IR
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