Global Water Resources Inc (GWRS) 2025 Q2 法說會逐字稿

Greetings, ladies and gentlemen. Thank you for standing by. Welcome to the Global Water Resources Inc. 2025 second-quarter conference call. (Operator Instructions) I would like to remind everyone that this call is being recorded on August 14, 2025, at 1:00 PM Eastern Time.

女士們、先生們，大家好。感謝您的耐心等待。歡迎參加 Global Water Resources Inc. 2025 年第二季電話會議。（操作員指示）我想提醒大家，本次通話將於2025年8月14日下午1點（美國東部時間）進行錄音。

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

我謹將會議交給財務總監凱爾·厄普徹奇。請繼續。

Thank you, operator. And welcome, everyone. Thank you for joining us on today's call. Yesterday, we issued our 2025 second-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 Christopher Krygier, Chief Operating Officer.

謝謝接線生。歡迎各位。感謝您參加今天的電話會議。昨天，我們透過新聞稿發布了2025年第二季財務業績，新聞稿副本可在我們的網站www.gwresources.com上查閱。今天發言的是總裁兼執行長羅恩·弗萊明、財務長麥克·利布曼和營運長克里斯托弗·克里格爾。

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

Ron 將總結本年度的主要營運事件，Mike 將回顧第二季的財務業績，Chris 將回顧亞利桑那州公司委員會的策略舉措。通話結束後，Ron、Mike 和 Chris 將回答大家的問題。

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.

在開始之前，我想提醒各位，今天所提供的某些資訊可能包含前瞻性陳述。此類聲明反映了公司目前對未來事件的預期、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，這些因素可能導致實際結果與前瞻性陳述中包含的結果有重大差異。

Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management's view 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. Additionally, certain non-GAAP measures may be included within today's call. For a 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.

因此，投資人應注意不要過度依賴任何前瞻性陳述，這些陳述反映了管理層截至本報告發布之日的觀點，並不構成對未來業績的保證。有關可能影響未來業績的因素的更多信息，請閱讀我們定期向美國證券交易委員會提交的文件中的“風險因素”和“管理層討論與分析”部分。此外，今天的電話會議中可能會包含某些非GAAP指標。如需了解這些指標與可比較 GAAP 指標的調節情況，請參閱昨天發布的收益報告中的表格，該報告可在我們的網站上查閱。

I'll now turn the call over to Ron.

現在我將把電話交給羅恩。

Thank you, Kyle. Good morning, everyone, and thank you for joining us today. We are very pleased to report the results for the second quarter of 2025. First, before jumping to normal operating highlights, I would like to start by attempting to capture the significance of numerous recent announcements that underpin our goal of long-term value creation and our ability to deliver strong total returns to our shareholders in the years and decades to come.

謝謝你，凱爾。各位早安，感謝大家今天收看我們的節目。我們非常高興地向大家報告2025年第二季的業績。首先，在介紹正常的營運亮點之前，我想先嘗試闡述近期眾多公告的重要性，這些公告鞏固了我們創造長期價值的目標，以及我們在未來數年乃至數十年為股東帶來強勁總回報的能力。

First, subsequent to the quarter, we closed the Tucson acquisition, which consisted of seven separate public water systems, adding approximately 2,200 connections and approximately $7.7 million in rate base at a multiple of only 1.05 times that rate base. This is beyond an attractive price. It is immediately accretive from a share price perspective, considering our peer groups trade by our estimates between 1.5 to 2 times rate base.

首先，在本季度之後，我們完成了對圖森的收購，該收購包括七個獨立的公共供水系統，增加了約 2200 個連接和約 770 萬美元的費率基礎，而收購價格僅為該費率基礎的 1.05 倍。這價格簡直太誘人了。從股價角度來看，這將立即提升股價，因為據我們估計，同業公司的交易價格是其利率基數的 1.5 倍到 2 倍之間。

We expect the systems to generate around $1.5 million in annual revenue until such time we can consolidate these systems into the rest of our Saguaro Rate Division, which is in Pima County, to ensure that all those utilities are captured in that regional rate plan, earning their full authorized rate of return.

我們預計這些系統每年將產生約 150 萬美元的收入，直到我們可以將這些系統整合到我們位於皮馬縣的 Saguaro 費率部門的其他部分，以確保所有這些公用事業公司都被納入該區域費率計劃，並獲得其全部授權回報率。

Second, we recently announced that the Arizona Governor has signed meaningful water legislation known as Ag-to-Urban, what we believe will result in many benefits that will be applicable for Global Water in our service areas, improving aquifer sustainability while creating a new groundwater supply to support additional growth.

其次，我們最近宣布，亞利桑那州州長簽署了一項名為「農業到城市」的重要水資源立法，我們相信這將帶來許多好處，適用於我們服務區域內的全球水務公司，提高含水層的可持續性，同時創造新的地下水供應以支持進一步增長。

Based on Global Water's established service areas created through buying and building utilities in the path of growth, our regional areas coincide with land that has considerable historical farming operations just outside densely populated metro-Phoenix. Thus, we believe the new law will drive even more growth to our service areas.

根據 Global Water 透過收購和建造沿線公用設施而建立的既定服務區域，我們的區域與人口稠密的鳳凰城都會區外擁有大量歷史農業經營的土地重合。因此，我們相信新法律將進一步推動我們服務區域的發展。

Third, as announced in the quarter, full funding of the Highway 347 expansion connecting Interstate 10 and metro-Phoenix to the City of Maricopa was approved. As the stakeholders had already begun engineering on certain long-term elements of the 13-mile road widening project, it is estimated that the construction will begin as soon as fiscal year 2026. This project should go a long way to ensure that City of Maricopa will continue to be one of the fastest-growing communities in the country and meet its population projections of growing nearly 90% by 2040.

第三，正如本季宣布的那樣，連接 10 號州際公路和鳳凰城都會區與馬里科帕市的 347 號公路擴建工程的全部資金已獲批准。由於利害關係人已經開始對這條 13 英里長的道路拓寬工程的某些長期要素進行工程設計，預計施工最早將於 2026 財年開始。該計畫將大大有助於確保馬里科帕市繼續成為美國成長最快的社區之一，並實現到 2040 年人口成長近 90% 的預期目標。

As evidence of the potential of this population projection, on July 1, the US Census Bureau released its population projections from 2024, and the City of Maricopa was once again in the top 10 fastest-growing large municipalities in the country coming in at number six. Even more telling was that population growth in 2024 was even stronger than 2023 as the city realized 7.4% growth compared to 7.1% the year prior.

為了證明這項人口預測的潛力，7 月 1 日，美國人口普查局發布了 2024 年的人口預測，馬里科帕市再次躋身全國成長最快的十大大型城市之列，位居第六。更值得注意的是，2024 年的人口成長比 2023 年還要強勁，該市人口成長率達到 7.4%，而前一年為 7.1%。

Below, I will discuss connection growth rates and permit growth rates that have begun to slow. But it's important to keep population growth in mind. It is now more closely correlates with consumption and revenue growth based on the amount of multi-family housing and commercial growth that is occurring. Beyond these long-term wins, we are also executing our capital investment and rate case strategies to drive near-term earnings growth, which are moving along as planned with an expectation of a fair outcome in mid-2026. Chris will provide more detail on the rate case later on the call.

以下我將討論連結成長率和授權成長率已經開始放緩的情況。但必須牢記人口成長這一因素。現在，它與消費和收入成長的相關性更高，這主要取決於多戶住宅和商業的成長量。除了這些長期勝利之外，我們還在執行資本投資和費率調整策略，以推動近期盈利增長，這些策略正按計劃進行，預計將在 2026 年年中取得不錯的成果。Chris 稍後會在電話會議上提供更多關於利率案的細節。

So finally, if you think about everything just mentioned, from rate base accumulation and new rates to water and transportation that are the two fundamental elements of economic development, as you can see, even more than ever, we have the foundation of sustainable above-average growth for years and decades to come.

最後，如果你仔細考慮剛才提到的所有因素，從稅基累積和新稅率到水和交通這兩個經濟發展的基本要素，正如你所看到的，我們比以往任何時候都更有信心在未來數年乃至數十年內實現可持續的高於平均水平的增長。

I will now provide a few operational highlights. Total active service connections increased 3.8% to 65,639 as of June 30, 2025, from the 12 months prior. In Q2, we achieved an annualized 3.5% total active service connection growth rate. Year-to-date, we've invested $35.4 million into infrastructure improvements in our 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.

接下來我將介紹一些營運方面的亮點。截至 2025 年 6 月 30 日，活躍服務連接總數比前 12 個月增長 3.8%，達到 65,639 個。第二季度，我們實現了年化總活躍服務連結數成長率 3.5%。今年迄今為止，我們已投資 3540 萬美元用於現有公用設施的基礎設施改進，以提供安全可靠的服務。我們 2025 年的大部分計畫投資都與我們在聖克魯斯水務公司和帕洛維德公用事業公司（我們位於皮納爾縣的兩家最大的公用事業公司）的測試年後項目有關，計劃將其納入我們已經提交的 2024 年測試年費率申請中。

Now I want to discuss organic customer growth and what is going on in our core utilities a bit further. The single-family dwelling unit market ended 2024 with approximately 27,156 building permits issued in the Phoenix greater metropolitan statistical area. For Q2 2025, this market realized 5,929 building permits. This represents a 14% decrease from Q2 of 2024. In 2024, the City of Maricopa issued 986 single-family building permits. For Q2 of 2025, this Maricopa market realized 177 building permits, representing a 24% decrease from the same period in 2024.

現在我想進一步探討客戶的自然成長以及我們核心公用事業領域正在發生的事情。截至 2024 年末，鳳凰城大都會統計區單戶住宅市場共發放了約 27,156 張建築許可證。2025年第二季度，該市場共發放了5,929份建築許可證。這比 2024 年第二季下降了 14%。2024年，馬里科帕市發放了986張獨棟住宅建築許可證。2025 年第二季度，馬里科帕市場共發放了 177 張建築許可證，比 2024 年同期減少了 24%。

So the 2025 permit data shows a bit of a pullback from prior year, and this is not surprising considering the uncertainty around tariffs and other macroeconomic drivers, most notably the stubborn interest rates. We believe this is temporary. And as these things continue to cool, there are very strong drivers for our normal growth rate to continue or even pick up.

因此，2025 年的許可證數據顯示，與前一年相比略有回落，考慮到關稅和其他宏觀經濟驅動因素的不確定性，尤其是頑固的利率，這並不令人意外。我們認為這只是暫時的。隨著這些因素持續降溫，我們有非常強勁的動力推動正常成長率持續維持甚至加速。

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 over five years ago in 2019. We need new rates to address all the cost increases over that time and the significant investments we have made, including in 2025. As you can see from related announcements, we have an additional $6.5 million in annual rate increase proposed and under consideration at the ACC.

正如我在上一份收益報告中提到的那樣，是的，高通膨和其他成本因素已經對我們造成了影響，並正在影響我們的獲利成長。然而，需要注意的是，2024 年對於我們最大的公用事業公司來說是一個測試年，而上一次測試年是在五年多前的 2019 年。我們需要新的費率來應對這段時間以來的所有成本增長以及我們所做的重大投資，包括 2025 年的投資。從相關公告中可以看出，我們已向 ACC 提出並正在考慮增加 650 萬美元的年度費率成長。

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

現在我將把電話交給麥克，讓他為大家帶來財務方面的重點介紹。

Thanks, Ron. Hello, everyone. Total revenue for the second quarter of 2025 was $14.2 million, which was up $0.7 million or 5.4% compared to Q2 2024. The increase in revenue was primarily attributable to a 3.8% increase in active service connections, increased consumption, and higher rates. Operating expenses for Q2 2025 were $11.6 million compared to $10.7 million in Q2 2024. This is an increase of approximately $0.9 million or 8.5%.

謝謝你，羅恩。大家好。2025 年第二季總營收為 1,420 萬美元，比 2024 年第二季增加了 70 萬美元，增幅為 5.4%。收入成長主要歸功於活躍服務連結數成長 3.8%、消費量增加以及費率上漲。2025 年第二季的營運費用為 1,160 萬美元，而 2024 年第二季為 1,070 萬美元。這相當於增加了約 0.9 百萬美元，即 8.5%。

Notable changes in operating expenses included, first, $321,000 increase in depreciation and amortization, which was primarily attributable to a 16.5% increase in depreciable fixed assets as a result of our increased capital investments and the commissioning of related projects; second, $223,000 increase in personnel costs that was primarily attributable to staffing increases related to the Tucson acquisition as well as the filling of previously vacant positions; and thirdly, other operating and maintenance and general and administrative costs increased by approximately $305,000, primarily due to increased service provider costs.

營運費用的顯著變化包括：首先，折舊和攤銷增加 321,000 美元，這主要是由於資本投資增加和相關項目投產，導致可折舊固定資產增加 16.5%；其次，人員成本增加 223,000 美元，這主要是由於收購圖森公司以及填補先前空缺職位而導致的營運人員增加了第三，其他行政成本美元，這主要是由於服務提供者成本增加。

Now to discuss other income and expense. Other expense for Q2 2025 was $0.4 million, which was slightly lower than other expense of $0.5 million in Q2 2024. The decrease is primarily attributable to higher income associated with Buckeye growth premiums in Q2 '25 compared to Q2 2024. Net income for Q2 2025 was $1.6 million or $0.06 per diluted share as compared to $1.7 million or $0.07 per diluted share in Q2 2024.

現在來討論其他收入和支出。2025 年第二季的其他支出為 0.4 百萬美元，略低於 2024 年第二季的其他支出 0.5 百萬美元。下降的主要原因是與 2024 年第二季相比，2025 年第二季 Buckeye 成長溢價帶來的收入更高。2025 年第二季淨收入為 160 萬美元，即每股攤薄收益 0.06 美元，而 2024 年第二季淨收入為 170 萬美元，即每股攤薄收益 0.07 美元。

Lastly, I'll discuss adjusted EBITDA, which adjusts for non-recurring and non-cash items, such as restricted stock expense. Adjusted EBITDA was $6.9 million in Q2 2025 compared to $6.8 million in Q2 2024. This is an increase of approximately $0.1 million or 2.1%. This concludes our update on the second-quarter 2025 financial results. I'll now pass the call to Chris to review our regulatory activity and strategic initiatives for the quarter.

最後，我將討論調整後的 EBITDA，它會對非經常性和非現金項目（例如受限股票支出）進行調整。2025 年第二季調整後 EBITDA 為 690 萬美元，而 2024 年第二季為 680 萬美元。這相當於增加了約 10 萬美元，即 2.1%。以上就是我們對2025年第二季財務表現的更新。現在我將把電話轉給克里斯，讓他回顧我們本季的監管活動和策略性舉措。

Thank you, Mike. And hello, everyone. It has been another solid quarter since our last update. First, as you heard from Ron earlier, subsequent to the quarter, we closed the Tucson acquisition. This deal has been years in the making and is finally across the finish line. We are now focused on the full integration activities.

謝謝你，麥克。大家好。自上次更新以來，又一個季度表現穩健。首先，正如你之前從 Ron 那裡聽到的，在本季結束後，我們完成了對 Tucson 的收購。這項交易歷經數年才最終達成。我們現在正專注於全面整合工作。

Here are a few additional highlights of the seven public water systems we acquired. First, seven public water systems are geographically close to systems we already own. For example, two systems, Rancho Del Sol Lindo and Silver Bell, are less than 3 miles from our Lyn-Lee system, which we acquired in 2020, and less than 8 miles from our Red Rock systems that we acquired in 2018.

以下是我們收購的七個公共供水系統的一些其他亮點。首先，有七個公共供水系統在地理位置上與我們已有的系統很接近。例如，Rancho Del Sol Lindo 和 Silver Bell 這兩個系統距離我們 2020 年收購的 Lyn-Lee 系統不到 3 英里，距離我們 2018 年收購的 Red Rock 系統不到 8 英里。

Three other systems that we acquired from Tucson, Diamond Bell Ranch, Sierra Foothills, and Valley View Acres, are less than 2 miles from our Mirabell and Francesca systems that we acquired in 2020, with portions of those service areas directly adjacent. In fact, one of the systems is so close, Tucson Water and Mirabell had a legacy interconnect agreement between the two utilities. Overall, the close proximity allows for greater economies of scale that we believe will eventually create more efficient operations and lower costs for customers over time.

我們從圖森收購的另外三個系統，分別是 Diamond Bell Ranch、Sierra Foothills 和 Valley View Acres，距離我們在 2020 年收購的 Mirabell 和 Francesca 系統不到 2 英里，這些服務區域的部分區域與 Mirabell 和 Francesca 系統直接相鄰。事實上，其中一個系統距離非常近，圖森水務公司和米拉貝爾公司之間曾經有過一項歷史性的互聯協議。總而言之，地理位置的接近帶來了更大的規模經濟效益，我們相信這最終將為客戶創造更有效率的營運並降低成本。

Next, the Diamond Bell system has approximately 1,400 additional platted lots that will eventually become customers in the years to come, creating additional organic growth opportunities. Next, as part of the acquisition, we adopted Tucson's rate structure. This rate structure has a 5% rate increase that was effective on July 7, 2025, and another 5% rate increase scheduled to go into effect on July 6, 2026.

其次，Diamond Bell 系統還有大約 1400 個已規劃地塊，這些地塊將在未來幾年最終成為客戶，從而創造更多的自然成長機會。其次，作為收購的一部分，我們採用了圖森的費率結構。該利率結構包括從 2025 年 7 月 7 日起生效的 5% 的利率上調，以及計劃於 2026 年 7 月 6 日生效的另一次 5% 的利率上調。

Finally, the closing of this acquisition now creates an even stronger utility portfolio in Pima County. As you recall, in the early 2020s, we bought multiple systems, representing about 1,600 customers, made improvements to those systems and processed a rate case to consolidate the utilities into what is now our Global Water Saguaro District utility.

最後，此次收購的完成，使皮馬縣的公用事業資產組合更加強大。您可能還記得，在 2020 年代初期，我們收購了多個系統，代表了大約 1600 位客戶，對這些系統進行了改進，並處理了費率案件，將這些公用事業公司合併成現在的 Global Water Saguaro District 公用事業公司。

Then in 2023, we closed on the Global Water Farmers Water utility, made improvements, and processed a rate case that just recently finished. Now with Tucson closed, we are working through the integration, so we can make the right improvements and process a rate case to consolidate all three companies in the years ahead, demonstrating our ability to effectively execute our business model while providing value to customers and shareholders.

然後在 2023 年，我們完成了對 Global Water Farmers Water 公用事業公司的收購，進行了改進，並處理了一個費率案件，最近才剛完成。現在圖森分公司已經關閉，我們正在進行整合工作，以便在未來幾年內做出正確的改進並處理費率申請，從而整合這三家公司，展現我們有效執行商業模式的能力，同時為客戶和股東創造價值。

Moving on to the rate case front, as we previously announced, we implemented the first phase of a $1.1 million annualized rate increase for our Global Water Farmers Water utility. This is the second rate case we completed in the last two years, demonstrating our continued execution to the benefit of all stakeholders.

接下來是費率方面的問題，正如我們之前宣布的那樣，我們已實施了全球水務農民水務公用事業公司每年 110 萬美元費率增長的第一階段。這是我們近兩年完成的第二大案例，證明了我們持續且有效率的執行力，使所有利害關係人受益。

Finally, we continue processing the rate case for our Global Water Santa Cruz and Global Water Palo Verde utilities. We are still in the discovery stage answering the typical data request received in a rate case so the parties have all the necessary support for our request. The next milestone date is staff and the consumer advocate filing their recommendations on October 1, 2025. After that, we hope to enter into settlement negotiations and reach a fair conclusion to the case.

最後，我們將繼續處理 Global Water Santa Cruz 和 Global Water Palo Verde 公用事業公司的費率調整申請。我們目前仍處於取證階段，正在回應費率案件中收到的典型資料請求，以便各方都能獲得我們請求所需的一切支援。下一個里程碑日期是 2025 年 10 月 1 日，屆時工作人員和消費者權益倡導者將提交他們的建議。之後，我們希望進行和解談判，並就此案達成公正的結論。

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

本季收購和監管活動方面的更新到此結束。現在我把電話轉回給羅恩。

Thank you, Chris. All right, to close today, just wanted to express how proud I am of our team. Yes, while 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, I believe that the last five years of executing our plan from organic growth to acquisitions to rate cases, in addition to our financial performance, are evidence of our ability to materially improve on all meaningful utility metrics despite such conditions.

謝謝你，克里斯。好了，今天就到這裡吧，我只想表達我對我們團隊的自豪。是的，雖然目前經濟情勢有利有弊，而且我們的股價在過去幾年有所回落，但我相信，過去五年我們從內生增長到收購再到費率調整等一系列舉措，以及我們的財務業績，都證明了我們有能力在這樣的環境下，在所有重要的公用事業指標上取得實質性的改善。

Customer growth, revenue growth, rate base growth. and earnings growth have all been exceptionally strong. And we expect that to continue. This is because of our people, our plan, our foundation, and our unique local geographical dynamics that is not directly impacted by the national macroeconomics.

客戶成長、營收成長、費率基礎成長和獲利成長均表現異常強勁。我們預計這種情況還會持續。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，這些因素不會直接受到國家宏觀經濟的影響。

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 and to new utilities will be beneficial to all stakeholders involved.

在執行成長計畫的過程中，我們計劃繼續保持在水資源管理產業的前沿地位，並推動我們實現效率提升和整合的使命。我們堅信，擴展我們的全面水資源管理平台，並將我們的專業知識應用於我們整個區域服務區和新的公用事業領域，將有利於所有相關利害關係人。

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. Thank you. We are now available to answer any questions.

我們感謝您對我們的投資和支持，我們將發展壯大 Global Water，以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。以上就是我們準備好的發言要點。謝謝。現在我們可以解答您的任何疑問。

(Operator Instructions)

（操作說明）

All right. Well, thank you, operator. I'd like to thank everyone for participating in the call and for your interest in Global Water Resources. Thanks again, and we look forward to speaking to you soon.

好的。謝謝接線生。感謝大家參與本次電話會議，也感謝大家對全球水資源的關注。再次感謝，期待盡快與您聯繫。

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

謝謝。會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。謝謝。

Thank you.

謝謝。