Global Water Resources Inc (GWRS) 2025 Q1 法說會逐字稿

Greetings, ladies and gentlemen, thank you for standing by. Welcome to the Global Water Resources Inc. first quarter of 2025 conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. (Operator Instructions) I would like to remind everyone that this call is being recorded on May 15, 2025 at 10 PM Eastern time.

女士們、先生們，大家好，感謝你們的支持。歡迎參加全球水資源公司 2025 年第一季電話會議。此時，所有參與者都處於只聽模式。演講結束後，我們將進行問答環節。（操作員指示）我想提醒大家，本次通話將於 2025 年 5 月 15 日東部時間晚上 10 點進行錄音。

I would now like to turn the conference over to Kyle Upchurch, Controller. Please go ahead.

現在我想將會議交給主計長凱爾‧厄普丘奇 (Kyle Upchurch)。請繼續。

Thank you, operator, and welcome everyone. Thanks for joining us on today's call. Yesterday we issued our 2025 first quarter financial results by press release, a copy of which is available on our website at www.gwresources.com. Speaking today is Ron Fleming, President and Chief Executive Officer; Mike Liebman, Chief Financial Officer; and Chris Krygier, Chief Operating Officer.

謝謝接線員，歡迎大家。感謝您參加今天的電話會議。昨天，我們以新聞稿的形式發布了2025年第一季財務業績，詳情請瀏覽我們的網站 www.gwresources.com。今天發言的嘉賓包括總裁兼執行長 Ron Fleming、財務長 Mike Liebman 和營運長 Chris Krygier。

Ron will summarize the key operational events of the year. Mike will review the financial results for the first quarter, and Chris will review strategic initiatives and Arizona Corporation Commission activity. Ron, Mike, and Chris will be available for questions at the end of the call.

羅恩將總結今年的關鍵營運事件。麥克將審查第一季的財務結果，克里斯將審查戰略舉措和亞利桑那州公司委員會的活動。通話結束時，Ron、Mike 和 Chris 將會回答問題。

Before we begin, I would like to remind you that certain information presented today may include forward-looking statements. Such statements reflect the company's current expectations, estimates, projections, and assumptions regarding future events. These forward-looking statements involve a number of assumptions, risks, uncertainties, estimates, and other factors that could cause actual results to differ materially from those contained in the forward-looking statements.

在我們開始之前，我想提醒您，今天提供的某些資訊可能包含前瞻性陳述。這些聲明反映了公司對未來事件的當前預期、估計、預測和假設。這些前瞻性陳述涉及許多假設、風險、不確定性、估計和其他因素，可能導致實際結果與前瞻性陳述中的結果有重大差異。

Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements which reflect management's views as of the date hereof and are not guarantees of future performance. For additional information regarding factors that may affect future results, please read the risk factors and MD&A sections of our periodic SEC filings.

因此，投資人應注意不要過度依賴任何前瞻性陳述，這些陳述僅反映管理層截至本文發布之日的觀點，並不能保證未來的績效。有關可能影響未來結果的因素的更多信息，請閱讀我們定期向美國證券交易委員會提交的文件的風險因素和 MD&A 部分。

Additionally, certain non-gap measures may be included within today's call. For reconciliation of those measures to the comparable GAAP measures, please see the tables included in yesterday's earnings release, which is available on our website.

此外，今天的電話會議中可能還會包括某些非差距措施。有關這些指標與可比較 GAAP 指標的對帳情況，請參閱昨天收益報告中的表格，該表格可在我們的網站上找到。

I will now turn the call over to Ron.

現在我將電話轉給羅恩。

Thank you, Kyle. Good morning, everyone, and thank you for joining us today. We are very pleased to report the results for the first quarter of 2025. First, I will provide a few operational highlights. Total active service connections increased 4.3% to 65,163 as of March 31, 2025 from the 12 months prior.

謝謝你，凱爾。大家早安，感謝大家今天加入我們。我們非常高興地報告 2025 年第一季的業績。首先，我將介紹一些營運亮點。截至 2025 年 3 月 31 日，總活躍服務連線數較 12 個月前成長 4.3%，達到 65,163 個。

In Q1, we maintain an annualized 4% total active service connection growth rate. Year-to-date we have invested $15.2 million into infrastructure improvements and existing utilities to provide safe and reliable service. A majority of our planned investments in 2025 relate to our post-test year projects in Santa Cruz Water Company and Palo Verde Utilities Company, our two largest utilities located in Pinal County, for planned inclusion in our already filed 2024 test year rate application. Chris will provide updates on the rate case later on the call.

第一季度，我們維持4%的年化總活躍服務連結成長率。今年迄今為止，我們已投資 1,520 萬美元用於基礎設施改善和現有公用設施，以提供安全可靠的服務。我們計劃在 2025 年進行的大部分投資涉及位於皮納爾縣的兩家最大的公用事業公司聖克魯斯水務公司和帕洛弗迪公用事業公司的測試年後項目，計劃將其納入我們已經提交的 2024 年測試年費率申請中。克里斯稍後將在電話會議上提供有關利率案例的最新進展。

Now I want to discuss organic customer growth and what is going on in our core utilities further. The single family dwelling unit market ended 2024 with approximately 27,156 building permits issued in the Phoenix Greater Metropolitan Statistical Area. For Q1 2025, this market realized 6,406 building permits, representing a 15% decrease from Q1 of 2024.

現在我想進一步討論有機客戶成長以及我們核心實用程式的進展。截至 2024 年，單戶住宅市場在鳳凰城大都會統計區共發放了約 27,156 張建築許可證。2025 年第一季度，該市場獲得 6,406 份建築許可證，比 2024 年第一季下降 15%。

In 2024, the city of Maricopa issued 986 single-family dwelling building permits. For Q1 2025, this Maricopa market realized 190 building permits, representing a 41.5% decrease from Q1 2024. It is important to note that a single quarter, specifically Q1, is not a trend, as timing of permits being pulled can be influenced by many factors.

2024 年，馬里科帕市頒發了 986 張單戶住宅建築許可證。2025 年第一季度，馬里科帕市場共發放 190 張建築許可證，比 2024 年第一季下降 41.5%。值得注意的是，單一季度，特別是第一季度，並不代表一種趨勢，因為許可證的發放時間會受到多種因素的影響。

Regardless, the 2025 permit data showing a bit of a pullback from prior year is not surprising considering the uncertainty around tariffs and other macroeconomic drivers that occurred. We believe this is temporary, and as these things continue to cool, including inflation, there are very strong drivers for our normal growth rate to continue or even pick up. Again, as I mentioned, our Q1 annualized growth rate remained at 4%.

無論如何，考慮到關稅和其他宏觀經濟驅動因素的不確定性，2025 年的許可證數據較上一年略有回落並不令人意外。我們認為這只是暫時的，隨著包括通貨膨脹在內的這些因素繼續降溫，我們的正常成長率將有非常強勁的動力繼續保持甚至回升。再次，正如我所提到的，我們的第一季年化成長率保持在 4%。

This is because many experts still believe there is a housing shortage in Arizona, and with a strong population and job growth continuing, Metro Phoenix will retain an annual run rate approaching 30,000 housing units per year to keep pace with that net immigration and job growth, just like we saw in 2024. This demand must be met by a combination of single family dwelling units and multi-family.

這是因為許多專家仍然認為亞利桑那州存在住房短缺，隨著人口和就業持續強勁增長，鳳凰城大都會區將保持每年接近 30,000 套住房的年運行率，以跟上淨移民和就業增長的步伐，就像我們在 2024 年看到的那樣。必須透過單戶住宅和多戶住宅的結合來滿足這一需求。

We believe multi-family high density growth that is occurring in our areas will be notable and at some level supplant the reduction in single family home growth. Simply put, there is a record number of additional multi-family projects in some stage of development.

我們相信，我們所在地區正在發生的多戶型高密度成長將會非常顯著，並在一定程度上取代單戶住宅成長的減少。簡而言之，在某個開發階段，新增的多戶型住宅計畫數量達到了創紀錄的水平。

The fact is, the booming economy and net immigration that Arizona continues to realize requires more and more places for people to live, work, and play. That is why large scale multi-family housing, commercial and recreational projects continue to proceed at a high pace in Metro Phoenix and in our service areas.

事實上，亞利桑那州蓬勃發展的經濟和不斷增長的淨移民數量需要越來越多的地方供人們居住、工作和娛樂。這就是為什麼大型多戶住宅、商業和娛樂項目在鳳凰城大都會區和我們的服務區域繼續快速推進的原因。

Additionally, the industrial manufacturing boom also continues. The 2024 committed capital investment of $50 billion into Arizona was a record setting. There have been significant further announcements made in 2025, including the most recent $100 billion dollar announcement on the additional planned expansions at TSMC, which is in addition to the $65 billion previously announced as the chip industry continues to explode in Metro Phoenix.

此外，工業製造業的繁榮也持續進行。2024 年對亞利桑那州的承諾資本投資為 500 億美元，創下了紀錄。2025 年已經發布了進一步的重要公告，包括最近宣布的台積電額外 1000 億美元的擴張計劃，這是繼先前宣布的 650 億美元擴張計劃之後的又一重大舉措，因為隨著大鳳凰城晶片行業的持續蓬勃發展。

Frankly, what continues to occur in Arizona is unprecedented. In fact, the all in TSMC investment of $165 billion would be the single largest direct foreign investment in the history of our country, and it's just one of many announcements not yet in the historical economic investment numbers that altogether will forever change the face of Metro Phoenix.

坦白說，亞利桑那州持續發生的事情是前所未有的。事實上，台積電 1,650 億美元的總投資將成為我國史上最大的單筆直接外國投資，而這只是尚未列入歷史經濟投資數字的眾多公告之一，這些公告將永遠改變大鳳凰城的面貌。

Because of these things, we remain bullish on the future potential of our inland port, Arizona service area, where Procter and Gamble acquired land and where Lucid Motors just acquired the facility previously owned by Nicolo. Of note, we did sign the actual special industrial contract with P&G in December of 2024 and are waiting their notice to proceed. And we continue discussing discussing potential projects with several large firms that would locate adjacent to P&G.

由於這些原因，我們仍然看好我們內陸港口、亞利桑那服務區的未來潛力，寶潔公司在那裡收購了土地，Lucid Motors 剛剛收購了 Nicolo 之前擁有的設施。值得注意的是，我們確實在 2024 年 12 月與寶潔簽署了實際的特殊工業合同，並且正在等待他們的通知。我們將繼續與幾家位於寶潔附近的大公司討論潛在項目。

While it is hard to forecast such large scale industrial growth, we do believe it is a matter of when, not if, and it will be a meaningful utility addition to our company. Additionally, the city of Maricopa continues progress on their recently announced large industrial complex consisting of over 680 acres of projects. While this project is still several years away from generating revenue, it represents another opportunity for notable growth for our company.

雖然很難預測如此大規模的工業成長，但我們相信這只是時間問題，而不是是否會發生的問題，而且它將為我們的公司帶來有意義的實用補充。此外，馬里科帕市繼續推進其最近宣布的佔地超過 680 英畝的大型工業綜合體計畫。雖然該專案距離產生收入還需要幾年時間，但它代表著我們公司另一個顯著成長的機會。

Based on all of these trends, we believe that in the years to come, we will continue to see considerable large scale commercial, multi-family housing and industrial growth in addition to strong organic housing growth. Based on our recent rate case activity, including the recent completion of rate cases and those still in process, layering new rates on top of all of this growth could drive meaningful revenue and earnings growth in the years to come.

基於所有這些趨勢，我們相信，在未來幾年，除了強勁的有機住房成長之外，我們還將繼續看到大規模商業、多戶住宅和工業的大幅成長。根據我們最近的利率案例活動，包括最近完成的利率案例和仍在處理的利率案例，在所有這些增長的基礎上分層新的利率可能會在未來幾年推動有意義的收入和盈利增長。

As I mentioned in our last earnings release, yes, high inflation and other cost drivers have caught up with us and are impacting our earnings growth. However, it's important to recognize that 2024 was a test year for our largest utilities whose last test year was five years ago in 2019.

正如我在上次收益報告中提到的那樣，高通膨和其他成本驅動因素已經影響到我們的收益成長。然而，重要的是要認識到，2024 年是我們最大的公用事業公司的測試年，其上一次測試年是五年前的 2019 年。

So we believe new rates to address all the cost increases over that time period and the significant investments we have made. Will drive earnings growth. As you can see from our many related announcements, we just completed the farmer's rate case with a positive outcome, including an approximate $1.1 million annual revenue increase, and we have an additional $6.5 million annual rate increase proposed and under consideration at the ACC.

因此，我們相信新的費率能夠解決該時間段內的所有成本增加以及我們所做的大量投資。將推動獲利成長。從我們的許多相關公告中可以看出，我們剛剛完成了農民稅率案，並取得了積極成果，包括每年收入增加約 110 萬美元，並且我們還提議在 ACC 上額外增加 650 萬美元的年度稅率，並且正在考慮中。

We believe 2025 will be another solid year for global water, putting the four ways we grow our utility company together, meaning organic connections, new greenfield utilities, acquisitions, and rate cases, you can see how global Water is going to be able to grow considerably in the years to come, just like we did over the prior five years and last rate case cycle.

我們相信 2025 年對於全球水務來說將是另一個穩健的一年，將我們發展公用事業公司的四種方式結合起來，即有機連接、新的綠地公用事業、收購和費率案例，您可以看到全球水務將如何在未來幾年實現大幅增長，就像我們在過去五年和上一個費率案例週期中所做的那樣。

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

現在我將把電話轉給麥克，介紹財務要點。

Thanks, Ron. Hello everyone. Total revenue for the first quarter of 2025 was $12.5 million, which was up $0.8 million, or 7.3% compared to Q1, 2024. The increase in revenue was primarily attributable to a 4.3% increase in active service connections and increased consumption.

謝謝，羅恩。大家好。2025 年第一季總營收為 1,250 萬美元，與 2024 年第一季相比成長 80 萬美元，增幅為 7.3%。收入的成長主要歸因於活躍服務連結數增加4.3%以及消費量增加。

Operating expenses for Q1 2025 were $11.2 million compared to $10.3 million in Q1 2024. This is an increase of approximately $0.9 million or 8.3%. The notable changes in operating expenses included $394,000 increase in depreciation and amortization, which was substantially attributable to an 11.4% increase in depreciable fixed assets as a result of our increased capital investments and the commissioning of related projects.

2025 年第一季的營運費用為 1,120 萬美元，而 2024 年第一季為 1,030 萬美元。這增加了約 90 萬美元，即 8.3%。營運費用的顯著變化包括折舊和攤銷增加 394,000 美元，這主要歸因於我們增加資本投資和相關項目的調試導致折舊固定資產增加 11.4%。

Increased O&M costs by $403,000 which was primarily attributable to additional costs for purchase power, chemicals, and repairs due to increased consumption, as well as increases in other expenses including contract IT services and labor services. And thirdly, a small increase of 62,000 in general administrative costs.

營運和維護成本增加了 403,000 美元，這主要歸因於由於消費增加而導致的購買電力、化學品和維修的額外成本，以及包括合約 IT 服務和勞務服務在內的其他費用的增加。第三，一般行政費用小幅增加62,000。

Now to discuss other income and expense. Other expense for Q1 2025 was $0.5 million, which is slightly higher than other expense of $0.3 million in Q1 2024. The increased expense is primarily a charitable to the lower Buckeye earnout fees in Q1 2025 compared to Q1 2024. Net income for Q1 2025 was $0.6 million or $0.02 per diluted share as compared to $0.7 million or $0.03 per diluted share in Q1 2024.

現在討論其他收入和支出。2025 年第一季的其他支出為 50 萬美元，略高於 2024 年第一季的 30 萬美元的其他支出。費用增加主要是因為 2025 年第一季的 Buckeye 獲利費用與 2024 年第一季相比有所降低。2025 年第一季的淨收入為 60 萬美元或每股攤薄收益 0.02 美元，而 2024 年第一季的淨收入為 70 萬美元或每股攤薄收益 0.03 美元。

Now to talk about adjusted EBITDA, which adjusts for non-recurring and non-cash items such as restricted stock expense. Adjusted EBITDA was $5.6 million in Q1 2025 compared to $5.4 million in Q1 2024. This is an increase of approximately $0.2 million or 4.4%.

現在來談談調整後的 EBITDA，它調整了限制性股票費用等非經常性和非現金項目。2025 年第一季調整後 EBITDA 為 560 萬美元，而 2024 年第一季為 540 萬美元。這增加了約 20 萬美元，即 4.4%。

Lastly, I'd like to touch on liquidity. We had a successful equity capital raise in March of $32 million and shortly after that we extended our line of credit to May of 2027 and increased it by $5 million going from $15 million to $20 million. When combining the $31.5 million of cash and the $20 million unused revolver, we have over $50 million of liquidity to support our capital expenditure program as well as the Tucson acquisition.

最後，我想談談流動性。我們在 3 月成功籌集了 3,200 萬美元的股權資本，此後不久，我們將信用額度延長至 2027 年 5 月，並將其增加了 500 萬美元，從 1,500 萬美元增加到 2,000 萬美元。將 3150 萬美元的現金和 2000 萬美元的未使用循環信貸額度合併起來，我們擁有超過 5000 萬美元的流動資金來支持我們的資本支出計劃以及圖森的收購。

This concludes our update on the first quarter of 2025 financial results. I'll now pass the call to Chris to review our regulatory activity and strategic initiatives for the quarter.

這是我們對 2025 年第一季財務表現的更新。我現在將電話轉給克里斯，讓他回顧我們本季的監管活動和策略舉措。

Thank you, Mike, and hello, everyone. It has been another solid quarter since our last update. First, as you likely saw in our press releases and heard Ron allude to earlier, the Arizona Corporation Commission approved new rates for our farmers' water utility. We started charging those new rates on May 1, so you would see those results reflected in future quarters.

謝謝你，麥克，大家好。自從我們上次更新以來，這又是一個表現穩健的季度。首先，正如您可能在我們的新聞稿中看到並聽到羅恩之前提到的那樣，亞利桑那州公司委員會批准了我們農民供水設施的新費率。我們從 5 月 1 日開始收取這些新費率，因此您將在未來幾季看到這些結果。

Second, as you heard Ron also mention, we filed our Santa Cruz and Paula Verde rate case on March 5, 2025 requesting a net revenue increase of $6.5 million. The case is off to a solid start. On April 4, 2025, the ACC Utilities division staff determined that the application was administratively complete, marking off the first step in their review process.

其次，正如羅恩所提到的那樣，我們在 2025 年 3 月 5 日提起了聖克魯斯和保拉維德費率訴訟，要求增加 650 萬美元的淨收入。該案開局良好。2025 年 4 月 4 日，ACC 公用事業部門工作人員確定該申請在行政上已完成，標誌著其審核流程的第一步。

We also advanced the case further with the establishment of our procedural schedule. Commission staff testimony is due on April 1, 2025, with hearings in the case scheduled to begin in the middle of December this year. In the meantime, we have started answering the typical data requests we receive from the parties, and we will continue to keep you updated in the months ahead.

我們也制定了程序時間表，進一步推進了案件的進展。委員會工作人員的證詞將於 2025 年 4 月 1 日提交，該案的聽證會定於今年 12 月中旬開始。同時，我們已經開始回應各方提出的典型資料請求，並將在未來幾個月繼續向您提供最新進展。

Turning to the Tucson acquisition, we're targeting to close this summer. We're working on the final details and look forward to welcoming these customers into the global water family.

談到圖森的收購，我們的目標是今年夏天完成。我們正在製定最後的細節，並期待歡迎這些客戶加入全球水務大家庭。

This concludes the update on regulatory activity and acquisitions. I'll now pass the call back to Ron.

關於監管活動和收購的最新情況到此結束。我現在將電話轉回給羅恩。

Thank you, Chris. I think Chris got a little excited there. Staff testimony is due on October 1, 2025. We'll give them a little bit of time. Thank you. But to close today, I just wanted to express how proud I am of our team. Yes, well there is an interesting mix of tailwinds and headwinds in the economy right now, and our stock price has pulled back over the last few years.

謝謝你，克里斯。我認為克里斯在那裡有點興奮。工作人員證詞截止日期為 2025 年 10 月 1 日。我們會給他們一點時間。謝謝。但今天結束時，我只想表達我對我們團隊的驕傲。是的，目前經濟情勢有趣地呈現出順風和逆風的組合，我們的股價在過去幾年裡有所回落。

I also believe the last five years of performance are evidence of our ability to materially improve on all meaningful utility metrics despite such conditions. Customer growth, revenue growth, rate-based growth, and earnings growth have all been exceptionally strong, and we expect that to continue. This is because of our people, our plan, and our foundation, and our unique local geographical dynamics that is not directly impacted by all the national macroeconomics.

我還相信，過去五年的表現證明，儘管有這樣的條件，我們仍有能力在所有有意義的效用指標上取得實質的進步。客戶成長、收入成長、基於利率的成長和獲利成長都非常強勁，我們預計這種成長將持續下去。這是因為我們的人民、我們的計劃、我們的基礎，以及我們獨特的當地地理動態，不會受到所有國家宏觀經濟的直接影響。

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

在執行成長計畫的過程中，我們打算繼續保持水管理產業的領先地位，並推動實現效率和整合的使命。我們堅信，擴大我們的整體水管理平台並將我們的專業知識應用於整個區域服務領域的新公用事業將使所有相關利益相關者受益。我們感謝您對我們的投資和支持，我們致力於發展全球水資源，解決亞利桑那州陽光走廊沿線的重要公用事​​業、水資源和經濟發展問題，使我們的社區繁榮發展。這一亮點結束了我們準備好的演講。

Thank you. We're available to answer any questions.

謝謝。我們隨時可以回答任何問題。

We will now begin the question and answer session. (Operator Instructions) Seeing no questions. This concludes our question and answer session.

我們現在開始問答環節。（操作員指示）沒有問題。我們的問答環節到此結束。

I would like to turn the conference back over to Ron Fleming for any closing remarks.

我想將會議交還給 Ron Fleming 做最後發言。

Thank you, operator. Yeah, I just want to thank everybody for participating on the call today and your continued interest in global water. Thanks, and we look forward to talking to you again.

謝謝您，接線生。是的，我只想感謝大家今天參加電話會議以及你們對全球水資源的持續關注。謝謝，我們期待再次與您交談。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。